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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..6833f05 --- /dev/null +++ b/.gitattributes @@ -0,0 +1,3 @@ +* text=auto +*.txt text +*.md text diff --git a/20873-8.txt b/20873-8.txt new file mode 100644 index 0000000..fab076c --- /dev/null +++ b/20873-8.txt @@ -0,0 +1,13051 @@ +The Project Gutenberg EBook of Albert Gallatin, by John Austin Stevens + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: Albert Gallatin + American Statesmen Series, Vol. XIII + +Author: John Austin Stevens + +Release Date: March 22, 2007 [EBook #20873] + +Language: English + +Character set encoding: ISO-8859-1 + +*** START OF THIS PROJECT GUTENBERG EBOOK ALBERT GALLATIN *** + + + + +Produced by Thomas Strong and the Online Distributed +Proofreading Team at https://www.pgdp.net (This file was +produced from images generously made available by The +Internet Archive/American Libraries.) + + + + + + +Standard Library Edition + +AMERICAN STATESMEN + +EDITED BY + +JOHN T. MORSE, JR. + +IN THIRTY-TWO VOLUMES VOL. XIII. + +THE JEFFERSONIAN DEMOCRACY + +ALBERT GALLATIN + +[Illustration: Albert Gallatin] + +American Statesmen + +STANDARD LIBRARY EDITION + +[Illustration: The Home of Albert Gallatin] + +HOUGHTON, MIFFLIN & CO. + +American Statesmen + +ALBERT GALLATIN + +BY + +JOHN AUSTIN STEVENS + +BOSTON AND NEW YORK +HOUGHTON, MIFFLIN AND COMPANY +The Riverside Press, Cambridge + +Copyright, 1883 and 1898, +BY HOUGHTON, MIFFLIN & CO. + +_All rights reserved._ + +PREFACE + + +Every generation demands that history shall be rewritten. This is not +alone because it requires that the work should be adapted to its own +point of view, but because it is instinctively seeking those lines which +connect the problems and lessons of the past with its own questions and +circumstances. If it were not for the existence of lines of this kind, +history might be entertaining, but would have little real value. The +more numerous they are between the present and any earlier period, the +more valuable is, for us, the history of that period. Such +considerations establish an especial interest just at present in the +life of Gallatin. + +The Monroe Doctrine has recently been the pivot of American +statesmanship. With that doctrine Mr. Gallatin had much to do, both as +minister to France and envoy to Great Britain. Indeed, in 1818, some +years before the declaration of that doctrine, when the Spanish colonies +of South America were in revolt, he declared that the United States +would not even aid France in a mediation. Later, in May, 1823, six +months before the famous message of President Monroe, Mr. Gallatin had +already uttered its idea; when about leaving Paris, on his return from +the French mission, he said to Chateaubriand, the French minister of +foreign affairs (May 13, 1823): "The United States would undoubtedly +preserve their neutrality, provided it were respected, and avoid any +interference with the politics of Europe.... On the other hand, they +would not suffer others to interfere against the emancipation of +America." With characteristic vanity Canning said that it was he himself +who "called the new world into existence to redress the balance of the +old." Yet precisely this had already for a long while been a cardinal +point of the policy of the United States. So early as 1808, Jefferson, +alluding to the disturbed condition of the Spanish colonies, said: "We +consider their interest and ours as the same, and that the object of +both must be to exclude all European influence in this hemisphere." + +Matters of equal interest are involved in the study of Mr. Gallatin's +actions and opinions in matters of finance. Every one knows that he +ranks among the distinguished financiers of the world, and problems +which he had to consider are still agitating the present generation. He +was opposed alike to a national debt and to paper money. Had the +metallic basis of the United States been adequate, he would have +accepted no other circulating medium, and would have consented to the +use of paper money only for purposes of exchange and remittance. In 1830 +he urged the restriction of paper money to notes of one hundred dollars +each, which were to be issued by the government. Obviously these must be +used chiefly for transmitting funds, and would be of little use for the +daily transactions of the people. Yet even this concession was due to +the fact that the United States was then a debtor country, and so late +as 1839, as Mr. Gallatin said, "specie was a foreign product." For +subsidiary money he favored silver coins at eighty-five per cent. of the +dollar value, a sufficient alloy to hold them in the country. Silver was +then the circulating medium of the world, the people's pocket money, and +gold was the basis and the solvent of foreign exchanges. + +Great interest attaches to the application of some other of Gallatin's +financial principles to more modern problems; and a careful study of his +papers may fairly enable us to form a few conclusions. It may be safely +said that he would not have favored a national bank currency based on +government bonds. This, however, would not have been because of any +objection to the currency itself, but because the scheme would insure +the continuance of a national debt. He was too practical, also, not to +see that the ultimate security is the faith of the government, and that +no filtering of that responsibility through private banks could do +otherwise than injure it. Further, it is reasonably safe to say that he +would favor the withdrawal both of national bank notes and of United +States notes, the greenbacks so-called; and that he would consent to the +use of paper only in the form of certificates directly representing the +precious metals, gold and silver; also that he would limit the use of +silver to its actual handling by the people in daily transactions. He +would feel safe to disregard the fluctuations of the intrinsic value of +silver, when used in this limited way as a subordinate currency, on the +ground that the stamp of the United States was sufficient for conferring +the needed value, when the obligation was only to maintain the parity, +not of the silver, but of the coin, with gold. He understood that, in +the case of a currency which is merely subordinate, parity arises from +the guaranty of the government, and not from the quality of the coin; +and that only such excess of any subordinate currency as is not needed +for use in daily affairs can be presented for redemption. This +principle, well understood by him, is recognized in European systems, +wherein the minimum of circulation is recognized as a maximum limit of +uncovered issues of paper. The circulation of silver, or of +certificates based upon it, comes within the same rule. + +At the time of the publication of this volume objection was taken to the +author's statement that, until the publication of Gallatin's writings, +his fame as a statesman and political leader was a mere tradition. Yet +in point of fact, not only is his name hardly mentioned by the early +biographers of Jefferson, Madison, and J. Q. Adams, but even by the +later writers in this very Series, his work, varied and important as it +was, has been given but scant notice. The historians of the United +States, and those who have made a specialty of the study of political +parties, have been alike indifferent or derelict in their investigations +to such a degree that it required months of original research in the +annals of Congress to ascertain Gallatin's actual relations towards the +Federalist party which he helped to overthrow, and towards the +Republican party which he did so much to found, and of which he became +the ablest champion, in Congress by debate, and in the cabinet by +administration. + +Invited by the publishers of the Statesmen Series to bring this study +"up to date," the author has found no important changes to make in his +work as he first prepared it. In the original investigation every source +of information was carefully explored, and no new sources have since +then been discovered. Mr. Gallatin's writings, carefully preserved in +originals and copies, and well arranged, supplied the details; while the +family traditions, with which the author was familiar, indicated the +objects to be obtained. But so wide was the general field of Mr. +Gallatin's career, so varied were his interests in all that pertained to +humanity, philanthropy, and science, and so extensive were his relations +with the leaders of European and American thought and action, that the +subject could only be treated on the broadest basis. With this apology +this study of one of the most interesting characters of American life is +again commended to the indulgence of the American people. + +NEWPORT, April, 1898. + +CONTENTS + +CHAP. PAGE + + I. EARLY LIFE 1 + + II. PENNSYLVANIA Legislature 32 + + III. UNITED STATES SENATE 56 + + IV. THE WHISKEY INSURRECTION 67 + + V. MEMBER OF CONGRESS 97 + + VI. SECRETARY OF THE TREASURY 170 + + VII. IN THE CABINET 279 + +VIII. IN DIPLOMACY 301 + + IX. CANDIDATE FOR THE VICE-PRESIDENCY 355 + + X. SOCIETY--LITERATURE--SCIENCE 361 + +INDEX 391 + + +ILLUSTRATIONS + +ALBERT GALLATIN _Frontispiece_ + +From the original painting by Gilbert Stuart, in the +possession of Frederic W. Stevens, Esq., New York, N. Y. + +Autograph from the Chamberlain collection, Boston +Public Library. + +The vignette of "Friendship Hill," Mr. Gallatin's +home at New Geneva, Pa., is from a photograph. + + Page + +ROBERT GOODLOE HARPER _facing_ 98 + +From a painting by St. Mémin, in the possession of +Harper's granddaughter, Mrs. William C. Pennington, +Baltimore, Md. + +Autograph from a MS. in the New York Public +Library, Lenox Building. + +ALEXANDER J. DALLAS _facing_ 236 + +From the original painting by Gilbert Stuart, in the +possession of Mrs. W. H. Emory, Washington, D. C. + +Autograph from the Chamberlain collection, Boston +Public Library. + +JAMES A. BAYARD _facing_ 312 + +From a painting by Wertmüller, owned by the late +Thomas F. Bayard, Wilmington, Del. + +Autograph from the Chamberlain collection, Boston +Public Library. + +ALBERT GALLATIN + + + + +CHAPTER I + +EARLY LIFE + + +Of all European-born citizens who have risen to fame in the political +service of the United States, Albert Gallatin is the most distinguished. +His merit in legislation, administration, and diplomacy is generally +recognized, and he is venerated by men of science on both continents. +Not, however, until the publication of his writings was the extent of +his influence upon the political life and growth of the country other +than a vague tradition. Independence and nationality were achieved by +the Revolution, in which he bore a slight and unimportant part; his +place in history is not, therefore, among the founders of the Republic, +but foremost in the rank of those early American statesmen, to whom it +fell to interpret and administer the organic laws which the founders +declared and the people ratified in the Constitution of the United +States. A study of his life shows that, from the time of the peace until +his death, his influence, either by direct action or indirect counsel, +may be traced through the history of the country. + +The son of Jean Gallatin and his wife, Sophie Albertine Rollaz, he was +born in the city of Geneva on January 29, 1761, and was baptized by the +name of Abraham Alfonse Albert Gallatin. The name Abraham he received +from his grandfather, but it was early dropped, and he was always known +by his matronymic Albert. The Gallatin family held great influence in +the Swiss Republic, and from the organization of the State contributed +numerous members to its magistracy; others adopted the military +profession, and served after the manner of their country in the Swiss +contingents of foreign armies. The immediate relatives of Albert +Gallatin were concerned in trade. Abraham, his grandfather, and Jean, +his father, were partners. The latter dying in 1765, his widow assumed +his share in the business. She died in March, 1770, leaving two +children,--Albert, then nine years of age, and an invalid daughter who +died a few years later. The loss to the orphan boy was lessened, if not +compensated, by the care of a maiden lady--Mademoiselle Pictet--who had +taken him into her charge at his father's death. This lady, whose +affection never failed him, was the intimate friend of his mother as +well as a distant relative of his father. Young Gallatin remained in +this kind care until January, 1773, when he was sent to a +boarding-school, and in August, 1775, to the academy of Geneva, from +which he was graduated in May, 1779. The expenses of his education were +in great part met by the trustees of the Bourse Gallatin,--a sum left in +1699 by a member of the family, of which the income was to be applied to +its necessities. The course of study at the academy was confined to +Latin and Greek. These were taught, to use the words of Mr. Gallatin, +"Latin thoroughly, Greek much neglected." Fortunately his preliminary +home training had been careful, and he left the academy the first in his +class in mathematics, natural philosophy, and Latin translation. French, +a language in general use at Geneva, was of course familiar to him. +English he also studied. He is not credited with special proficiency in +history, but his teacher in this branch was Muller, the distinguished +historian, and the groundwork of his information was solid. No American +statesman has shown more accurate knowledge of the facts of history, or +a more profound insight into its philosophy, than Mr. Gallatin. + +Education, however, is not confined to instruction, nor is the influence +of an academy to be measured by the extent of its curriculum, or the +proficiency of its students, but rather by its general tone, moral and +intellectual. The Calvinism of Geneva, narrow in its religious sense, +was friendly to the spread of knowledge; and had this not been the case, +the side influences of Roman Catholicism on the one hand, and the +liberal spirit of the age on the other, would have tempered its +exclusive tendency. + +While the academy seems to have sent out few men of extraordinary +eminence, its influence upon society was happy. Geneva was the resort of +distinguished foreigners. Princes and nobles from Germany and the north +of Europe, lords and gentlemen from England, and numerous Americans went +thither to finish their education. Of these Mr. Gallatin has left +mention of Francis Kinloch and William Smith, who later represented +South Carolina in the Congress of the United States; Smith was +afterwards minister to Portugal; Colonel Laurens, son of the president +of Congress, and special envoy to France during the war of the American +Revolution; the two Penns, proprietors of Pennsylvania; Franklin Bache, +grandson of Dr. Franklin; and young Johannot, grandson of Dr. Cooper of +Boston. Yet no one of these followed the academic course. To use again +the words of Mr. Gallatin, "It was the Geneva society which they +cultivated, aided by private teachers in every branch, with whom Geneva +was abundantly supplied." "By that influence," he says, he was himself +"surrounded, and derived more benefit from that source than from +attendance on academical lectures." Considered in its broader sense, +education is quite as much a matter of association as of scholarly +acquirement. The influence of the companion is as strong and enduring as +that of the master. Of this truth the career of young Gallatin is a +notable example. During his academic course he formed ties of intimate +friendship with three of his associates. These were Henri Serre, Jean +Badollet, and Etienne Dumont. This attachment was maintained unimpaired +throughout their lives, notwithstanding the widely different stations +which they subsequently filled. Serre and Badollet are only remembered +from their connection with Gallatin. Dumont was of different mould. He +was the friend of Mirabeau, the disciple and translator of Bentham,--a +man of elegant acquirement, but, in the judgment of Gallatin, "without +original genius." De Lolme was in the class above Gallatin. He had such +facility in the acquisition of languages that he was able to write his +famous work on the English Constitution after the residence of a single +year in England. Pictet, Gallatin's relative, afterwards celebrated as a +naturalist, excelled all his fellows in physical science. + +During his last year at the academy Gallatin was engaged in the tuition +of a nephew of Mademoiselle Pictet, but the time soon arrived when he +felt called upon to choose a career. His state was one of comparative +dependence, and the small patrimony which he inherited would not pass to +his control until he should reach his twenty-fifth year,--the period +assigned for his majority. It would be hardly just to say that he was +ambitious. Personal distinction was never an active motor in his life. +Even his later honors, thick and fast though they fell, were rather +thrust upon than sought by him. But his nature was proud and sensitive, +and he chafed under personal control. The age was restless. The spirit +of philosophic inquiry, no longer confined within scholastic limits, was +spreading far and wide. From the banks of the Neva to the shores of the +Mediterranean, the people of Europe were uneasy and expectant. Men +everywhere felt that the social system was threatened with a cataclysm. +What would emerge from the general deluge none could foresee. Certainly, +the last remains of the old feudality would be engulfed forever. Nowhere +was this more thoroughly believed than at the home of Rousseau. Under +the shadow of the Alps, every breeze from which was free, the Genevese +philosopher had written his "Contrat social," and invited the rulers and +the ruled to a reorganization of their relations to each other and to +the world. But nowhere, also, was the conservative opposition to the new +theories more intense than here. + +The mind of young Gallatin was essentially philosophic. The studies in +which he excelled in early life were in this direction, and at no time +in his career did he display any emotional enthusiasm on subjects of +general concern. But, on the other hand, he was unflinching in his +adherence to abstract principle. Though not carried away by the +extravagance of Rousseau, he was thoroughly discontented with the +political state of Geneva. He was by early conviction a Democrat in the +broadest sense of the term. Indeed, it would be difficult to find a more +perfect example of what it was then the fashion to call a _citoyen du +monde_. His family seem, on the contrary, to have been always +conservative, and attached to the aristocratic and oligarchic system to +which they had, for centuries, owed their position and advancement. + +Abraham Gallatin, his grandfather, lived at Pregny on the northern shore +of the lake, in close neighborhood to Ferney, the retreat of Voltaire. +Susanne Vaudenet Gallatin, his grandmother, was a woman of the world, a +lady of strong character, and the period was one when the influence of +women was paramount in the affairs of men; among her friends she counted +Voltaire, with whom her husband and herself were on intimate relations, +and Frederick, Landgrave of Hesse-Cassel, with whom she corresponded. So +sincere was this latter attachment that the sovereign sent his portrait +to her in 1776, an honor which, at her instance, Voltaire acknowledged +in a verse characteristic of himself and of the time:-- + + "J'ai baisé ce portrait charmant, + Je vous l'avoûrai sans mystère, + Mes filles en out fait autant, + Mais c'est un secret qu'il faut taire. + Vous trouverez bon qu'une mère + Vous parle un peu plus hardiment, + Et vous verrez qu'également, + En tous les temps vous savez plaire." + +At Pregny young Gallatin was the constant guest of his nearest relatives +on his father's side, and he was a frequent visitor at Ferney. Those +whose fortune it has been to sit at the feet of Mr. Gallatin himself, +in the serene atmosphere of his study, after his retirement from active +participation in public concerns, may well imagine the influence which +the rays of the prismatic character of Voltaire must have had upon the +philosophic and receptive mind of the young student. + +There was and still is a solidarity in European families which can +scarcely be said to have ever had a counterpart in those of England, and +of which hardly a vestige remains in American social life. The fate of +each member was a matter of interest to all, and the honor of the name +was of common concern. Among the Gallatins, the grandmother, Madame +Gallatin-Vaudenet, as she was called, appears to have been the +controlling spirit. To her the profession of the youthful scion of the +stock was a matter of family consequence, and she had already marked out +his future course. The Gallatins, as has been already stated, had +acquired honor in the military service of foreign princes. Her friend, +the Landgrave of Hesse, was engaged in supporting the uncertain fortunes +of the British army in America with a large military contingent, and she +had only to ask to obtain for her grandson the high commission of +lieutenant-colonel of one of the regiments of Hessian mercenaries. To +the offer made to young Gallatin, and urged with due authority, he +replied, that "he would never serve a tyrant;" a want of respect which +was answered by a cuff on the ear. This incident determined his career. +Whether it crystallized long-cherished fancies into sudden action, or +whether it was of itself the initial cause of his resolve, is now mere +matter of conjecture; probably the former. The three friends, Gallatin, +Badollet, and Serre seem to have amused their leisure in planning an +ideal existence in some wilderness. America offered a boundless field +for the realization of such dreams, and the spice of adventure could be +had for the seeking. Here was the forest primeval in its original +grandeur. Here the Indian roamed undisputed master; not the tutored +Huron of Voltaire's tale, but the savage of torch and tomahawk. The +continent was as yet unexplored. In uncertainty as to motives for man's +action the French magistrate always searches for the woman,--"cherchez +la femme!" One single allusion in a letter written to Badollet, in 1783, +shows that there was a woman in Gallatin's horoscope. Who she was, what +her relation to him, or what influence she had upon his actions, nowhere +appears. He only says that besides Mademoiselle Pictet there was one +friend, "une amie," at Geneva, from whom a permanent separation would be +hard. + +Confiding his purpose to his friend Serre, Gallatin easily persuaded +this ardent youth to join him in his venturesome journey, and on April +1, 1780, the two secretly left Geneva. It certainly was no burning +desire to aid the Americans in their struggle for independence, such as +had stirred the generous soul of Lafayette, that prompted this act. In +later life he repeatedly disclaimed any such motive. It was rather a +longing for personal independence, for freedom from the trammels of a +society in which he had little faith or interest. Nor were his political +opinions at this time matured. He had a just pride in the Swiss Republic +as a free State (Etat libre), and his personal bias was towards the +"Négatif" party, as those were called who maintained the authority of +the Upper Council (Petit Conseil) to reject the demands of the people. +To this oligarchic party his family belonged. In a letter written three +years later, he confesses that he was "Négatif" when he abandoned his +home, and conveys the idea that his emigration was an experiment, a +search for a system of government in accordance with his abstract +notions of natural justice and political right. To use his own words, he +came to America to "drink in a love for independence in the freest +country of the universe." But there was some method in this madness. The +rash scheme of emigration had a practical side; land speculation and +commerce were to be the foundation and support of the settlement in the +wilderness where they would realize their political Utopia. + +From Geneva the young adventurers hurried to Nantes, on the coast of +France, where Gallatin soon received letters from his family, who seem +to have neglected nothing that could contribute to their comfort or +advantage. Monsieur P. M. Gallatin, the guardian of Albert, a distant +relative in an elder branch of the family, addressed him a letter +which, in its moderation, dignity, and kindness, is a model of +well-tempered severity and reproach. It expressed the pain Mademoiselle +Pictet had felt at his unceremonious departure, and his own affliction +at the ingratitude of one to whom he had never refused a request. +Finally, as the trustee of his estate till his majority, the guardian +assures the errant youth that he will aid him with pecuniary resources +as far as possible, without infringing upon the capital, and within the +sworn obligation of his trust. Letters of recommendation to +distinguished Americans were also forwarded, and in these it is found, +to the high credit of the family, that no distinction was made between +the two young men, although Serre seems to have been considered as the +originator of the bold move. The intervention of the Duke de la +Rochefoucauld d'Enville was solicited, and a letter was obtained by him +from Benjamin Franklin--then American minister at the Court of +Versailles--to his son-in-law, Richard Bache. Lady Juliana Penn wrote in +their behalf to John Penn at Philadelphia, and Mademoiselle Pictet to +Colonel Kinloch, member of the Continental Congress from South Carolina. +Thus supported in their undertaking the youthful travelers sailed from +L'Orient on May 27, in an American vessel, the Kattie, Captain Loring. +Of the sum which Gallatin, who supplied the capital for the expedition, +brought from Geneva, one half had been expended in their land journey +and the payment of the passages to Boston; one half, eighty louis +d'or--the equivalent of four hundred silver dollars--remained, part of +which they invested in tea. Reaching the American coast in a fog, or bad +weather, they were landed at Cape Ann on July 14. From Gloucester they +rode the next day to Boston on horseback, a distance of thirty miles. +Here they put up at a French café, "The Sign of the Alliance," in Fore +Street, kept by one Tahon, and began to consider what step they should +next take in the new world. + +The prospects were not encouraging; the military fortunes of the +struggling nation were never at a lower ebb than during the summer which +intervened between the disaster of Camden and the discovery of Arnold's +treason. Washington's army lay at New Windsor in enforced inactivity; +enlistments were few, and the currency was almost worthless. Such was +the stagnation in trade, that the young strangers found it extremely +difficult to dispose of their little venture in tea. Two months were +passed at the café, in waiting for an opportunity to go to Philadelphia, +where Congress was in session, and where they expected to find the +influential persons to whom they were accredited; also letters from +Geneva. But this journey was no easy matter. The usual routes of travel +were interrupted. New York was the fortified headquarters of the British +army, and the Middle States were only to be reached by a détour through +the American lines above the Highlands and behind the Jersey Hills. + +The homesick youths found little to amuse or interest them in Boston, +and grew very weary of its monotonous life and Puritanic tone. They +missed the public amusements to which they were accustomed in their own +country, and complained of the superstitious observance of Sunday, when +"singing, fiddling, card-playing and bowling were forbidden." Foreigners +were not welcome guests in this town of prejudice. The sailors of the +French fleet had already been the cause of one riot. Gallatin's letters +show that this aversion was fully reciprocated by him. + +The neighboring country had some points of interest. No Swiss ever saw a +hill without an intense desire to get to its top. They soon felt the +magnetic attraction of the Blue Hills of Milton, and, descrying from +their summit the distant mountains north of Worcester, made a pedestrian +excursion thither the following day. Mr. Gallatin was wont to relate +with glee an incident of this trip, which Mr. John Russell Bartlett +repeats in his "Reminiscences." + + "The tavern at which he stopped on his journey was kept by a man + who partook in a considerable degree of the curiosity even + now-a-days manifested by some landlords in the back parts of New + England to know the whole history of their guests. Noticing Mr. + Gallatin's French accent he said, 'Just from France, eh! You are a + Frenchman, I suppose.' 'No!' said Mr. Gallatin, 'I am not from + France.' 'You can't be from England, I am sure?' 'No!' was the + reply. 'From Spain?' 'No!' 'From Germany?' 'No!' 'Well, where on + earth are you from then, or what are you?' eagerly asked the + inquisitive landlord. 'I am a Swiss,' replied Mr. Gallatin. 'Swiss, + Swiss, Swiss!' exclaimed the landlord, in astonishment. 'Which of + the ten tribes are the Swiss?'" + +Nor was this an unnatural remark. At this time Mr. Gallatin did not +speak English with facility, and indeed was never free from a foreign +accent. + +At the little café they met a Swiss woman, the wife of a Genevan, one De +Lesdernier, who had been for thirty years established in Nova Scotia, +but, becoming compromised in the attempt to revolutionize the colony, +was compelled to fly to New England, and had settled at Machias, on the +northeastern extremity of the Maine frontier. Tempted by her account of +this region, and perhaps making a virtue of necessity, Gallatin and +Serre bartered their tea for rum, sugar, and tobacco, and, investing the +remainder of their petty capital in similar merchandise, they embarked +October 1, 1780, upon a small coasting vessel, which, after a long and +somewhat perilous passage, reached the mouth of the Machias River on the +15th of the same month. Machias was then a little settlement five miles +from the mouth of the stream of the same name. It consisted of about +twenty houses and a small fortification, mounting seven guns and +garrisoned by fifteen or twenty men. The young travelers were warmly +received by the son of Lesdernier, and made their home under his roof. +This seems to have been one of the four or five log houses in a large +clearing near the fort. Gallatin attempted to settle a lot of land, and +the meadow where he cut the hay with his own hands is still pointed out. +This is Frost's meadow in Perry, not far from the site of the Indian +village. A single cow was the beginning of a farm, but the main +occupation of the young men was woodcutting. No record remains of the +result of the merchandise venture. The trade of Machias was wholly in +fish, lumber, and furs, which, there being no money, the settlers were +ready enough to barter for West India goods. But the outlet for the +product of the country was, in its unsettled condition, uncertain and +precarious, and the young traders were no better off than before. One +transaction only is remembered, the advance by Gallatin to the garrison +of supplies to the value of four hundred dollars; for this he took a +draft on the state treasury of Massachusetts, which, there being no +funds for its payment, he sold at one fourth of its face value. + +The life, rude as it was, was not without its charms. Serre seems to +have abandoned himself to its fascination without a regret. His +descriptive letters to Badollet read like the "Idylls of a Faun." Those +of Gallatin, though more tempered in tone, reveal quiet content with the +simple life and a thorough enjoyment of nature in its original wildness. +In the summer they followed the tracks of the moose and deer through the +primitive forests, and explored the streams and lakes in the light +birch canoe, with a woodsman or savage for their guide. In the winter +they made long journeys over land and water on snowshoes or on skates, +occasionally visiting the villages of the Indians, with whom the +Lesderniers were on the best of terms, studying their habits and +witnessing their feasts. Occasional expeditions of a different nature +gave zest and excitement to this rustic life. These occurred when alarms +of English invasion reached the settlement, and volunteers marched to +the defence of the frontier. Twice Gallatin accompanied such parties to +Passamaquoddy, and once, in November, 1780, was left for a time in +command of a small earthwork and a temporary garrison of whites and +Indians at that place. At Machias Gallatin made one acquaintance which +greatly interested him, that of La Pérouse, the famous navigator. He was +then in command of the Amazone frigate, one of the French squadron on +the American coast, and had in convoy a fleet of fishing vessels on +their way to the Newfoundland banks. Gallatin had an intense fondness +for geography, and was delighted with La Pérouse's narrative of his +visit to Hudson's Bay, and of his discovery there (at Fort Albany, which +he captured) of the manuscript journal of Samuel Hearne, who some years +before had made a voyage to the Arctic regions in search of a northwest +passage. Gallatin and La Pérouse met subsequently in Boston. + +The winter of 1780-81 was passed in the cabin of the Lesderniers. The +excessive cold does not seem to have chilled Serre's enthusiasm. Like +the faun of Hawthorne's mythical tale, he loved Nature in all her moods; +but Gallatin appears to have wearied of the confinement and of his +uncongenial companions. The trading experiment was abandoned in the +autumn, and with some experience, but a reduced purse, the friends +returned in October to Boston, where Gallatin set to work to support +himself by giving lessons in the French language. What success he met +with at first is not known, though the visits of the French fleet and +the presence of its officers may have awakened some interest in their +language. However this may be, in December Gallatin wrote to his good +friend, Mademoiselle Pictet, a frank account of his embarrassments. +Before it reached her, she had already, with her wonted forethought, +anticipated his difficulties by providing for a payment of money to him +wherever he might be, and had also secured for him the interest of Dr. +Samuel Cooper, whose grandson, young Johannot, was then at school in +Geneva. Dr. Cooper was one of the most distinguished of the patriots in +Boston, and no better influence could have been invoked than his. In +July, 1782, by a formal vote of the President and Fellows of Harvard +College, Mr. Gallatin was permitted to teach the French language. About +seventy of the students availed themselves of the privilege. Mr. +Gallatin received about three hundred dollars in compensation. In this +occupation he remained at Cambridge for about a year, at the expiration +of which he took advantage of the close of the academic course to +withdraw from his charge, receiving at his departure a certificate from +the Faculty that he had acquitted himself in his department with great +reputation. + +The war was over, the army of the United States was disbanded, and the +country was preparing for the new order which the peace would introduce +into the habits and occupations of the people. The long-sought +opportunity at last presented itself, and Mr. Gallatin at once embraced +it. He left Boston without regret. He had done his duty faithfully, and +secured the approbation and esteem of all with whom he had come in +contact, but there is no evidence that he cared for or sought social +relations either in the city or at the college. Journeying southward he +passed through Providence, where he took sail for New York. Stopping for +an hour at Newport for dinner, he reached New York on July 21, 1783. The +same day the frigate Mercury arrived from England with news of the +signature of the definitive treaty of peace. He was delighted with the +beauty of the country-seats above the city, the vast port with its +abundant shipping, and with the prospect of a theatrical entertainment. +The British soldiers and sailors, who were still in possession, he found +rude and insolent, but the returning refugees civil and honest people. +At Boston Gallatin made the acquaintance of a French gentleman, one +Savary de Valcoulon, who had crossed the Atlantic to prosecute in person +certain claims against the State of Virginia for advances made by his +house in Lyons during the war. He accompanied Gallatin to New York, and +together they traveled to Philadelphia; Savary, who spoke no English, +gladly attaching to himself as his companion a young man of the ability +and character of Gallatin. + +At Philadelphia Gallatin was soon after joined by Serre, who had +remained behind, engaged also in giving instruction. The meeting at +Philadelphia seems to have been the occasion for the dissolution of a +partnership in which Gallatin had placed his money, and Serre his +enthusiasm and personal charm. A settlement was made; Serre giving his +note to Gallatin for the sum of six hundred dollars,--one half of their +joint expenses for three years,--an obligation which was repaid more +than half a century later by his sister. Serre then joined a +fellow-countryman and went to Jamaica, where he died in 1784. At +Philadelphia Gallatin and Savary lodged in a house kept by one Mary +Lynn. Pelatiah Webster, the political economist, who owned the house, +was also a boarder. Later he said of his fellow-lodgers that "they were +well-bred gentlemen who passed their time conversing in French." +Gallatin, at the end of his resources, gladly acceded to Savary's +request to accompany him to Richmond. + +Whatever hesitation Gallatin may have entertained as to his definitive +expatriation was entirely set at rest by the news of strife between the +rival factions in Geneva and the interposition of armed force by the +neighboring governments. This interference turned the scale against the +liberal party. Mademoiselle Pictet was the only link which bound him to +his family. For his ingratitude to her he constantly reproached himself. +He still styled himself a citizen of Geneva, but this was only as a +matter of convenience and security to his correspondence. His +determination to make America his home was now fixed. The lands on the +banks of the Ohio were then considered the most fertile in America,--the +best for farming purposes, the cultivation of grain, and the raising of +cattle. The first settlement in this region was made by the Ohio +Company, an association formed in Virginia and London, about the middle +of the century, by Thomas Lee, together with Lawrence and Augustine, +brothers of George Washington. The lands lay on the south side of the +Ohio, between the Monongahela and Kanawha rivers. These lands were known +as "Washington's bottom lands." In this neighborhood Gallatin determined +to purchase two or three thousand acres, and prepare for that ideal +country home which had been the dream of his college days. Land here was +worth from thirty cents to four dollars an acre. His first purchase was +about one thousand acres, for which he paid one hundred pounds, +Virginia currency. Land speculation was the fever of the time. Savary +was early affected by it, and before the new friends left Philadelphia +for Richmond he bought warrants for one hundred and twenty thousand +acres in Virginia, in Monongalia County, between the Great and Little +Kanawha rivers, and interested Gallatin to the extent of one quarter in +the purchase. Soon after the completion of this transaction the sale of +some small portions reimbursed them for three fourths of the original +cost. This was the first time when, and Savary was the first person to +whom, Gallatin was willing to incur a pecuniary obligation. Throughout +his life he had an aversion to debt; small or large, private or public. +It was arranged that Gallatin's part of the purchase money was not to be +paid until his majority,--January 29, 1786,--but in the meanwhile he +was, in lieu of interest money, to give his services in personal +superintendence. Later Savary increased Gallatin's interest to one half. +Soon after these plans were completed, Savary and Gallatin moved to +Richmond, where they made their residence. + +In February, 1784, Gallatin returned to Philadelphia, perfected the +arrangements for his expedition, and in March crossed the mountains, +and, with his exploring party, passed down the Ohio River to Monongalia +County in Virginia. The superior advantages of the country north of the +Virginia line determined him to establish his headquarters there. He +selected the farm of Thomas Clare, at the junction of the Monongahela +River and George's Creek. This was in Fayette County, Pennsylvania, +about four miles north of the Virginia line. Here he built a log hut, +opened a country store, and remained till the close of the year. It was +while thus engaged at George's Creek, in September of the year 1784, +that Gallatin first met General Washington, who was examining the +country, in which he had large landed interests, to select a route for a +road across the Alleghanies. The story of the interview was first made +public by Mr. John Russell Bartlett, who had it from the lips of Mr. +Gallatin. The version of the late Hon. William Beach Lawrence, in a +paper prepared for the New York Historical Society, differs slightly in +immaterial points. Mr. Lawrence says:-- + + "Among the incidents connected with his (Mr. Gallatin's) earliest + explorations was an interview with General Washington, which he + repeatedly recounted to me. He had previously observed that of all + the inaccessible men he had ever seen, General Washington was the + most so. And this remark he made late in life, after having been + conversant with most of the sovereigns of Europe and their prime + ministers. He said, in connection with his office, he had a cot-bed + in the office of the surveyor of the district when Washington, who + had lands in the neighborhood, and was desirous of effecting + communication between the rivers, came there. Mr. Gallatin's bed + was given up to him,--Gallatin lying on the floor, immediately + below the table at which Washington was writing. Washington was + endeavoring to reduce to paper the calculations of the day. + Gallatin, hearing the statement, came at once to the conclusion, + and, after waiting some time, he himself gave the answer, which + drew from Washington such a look as he never experienced before or + since. On arriving by a slow process at his conclusion, Washington + turned to Gallatin and said, 'You are right, young man.'" + +The points of difference between the two accounts of this interview are +of little importance. The look which Washington is said to have given +Mr. Gallatin has its counterpart in that with which he is also said to +have turned upon Gouverneur Morris, when accosted by him familiarly with +a touch on the shoulder. Bartlett, in his recollection of the anecdote, +adds that Washington, about this period, inquired after the forward +young man, and urged him to become his land agent,--an offer which +Gallatin declined. + +The winter of 1784-85 was passed in Richmond, in the society of which +town Mr. Gallatin began to find a relief and pleasure he had not yet +experienced in America. At this period the Virginia capital was the +gayest city in the Union, and famous for its abundant hospitality, +rather facile manners, and the liberal tendency of its religious +thought. Gallatin brought no prudishness and no orthodoxy in his +Genevese baggage. One of the last acts of his life was to recognize in +graceful and touching words the kindness he then met with:-- + + "I was received with that old proverbial Virginia hospitality to + which I know no parallel anywhere within the circle of my travels. + It was not hospitality only that was shown to me. I do not know how + it came to pass, but every one with whom I became acquainted + appeared to take an interest in the young stranger. I was only the + interpreter of a gentleman, the agent of a foreign house, that had + a large claim for advances to the State, and this made me known to + all the officers of government, and some of the most prominent + members of the Legislature. It gave me the first opportunity of + showing some symptoms of talent, even as a speaker, of which I was + not myself aware. Every one encouraged me, and was disposed to + promote my success in life. To name all those from whom I received + offers of service would be to name all the most distinguished + residents at that time in Richmond." + +In the spring of 1785, fortified with a certificate from Governor +Patrick Henry, commending him to the county surveyor, and intrusted by +Henry with the duty of locating two thousand acres of lands in the +western country for a third party, he set out from Richmond, on March +31, alone, on horseback. Following the course of the James River he +crossed the Blue Ridge at the Peaks of Otter, and reached Greenbrier +Court House on April 18. On the 29th he arrived at Clare's, on George's +Creek, where he was joined by Savary. Their surveying operations were +soon begun, each taking a separate course. An Indian rising broke up the +operations of Savary, and both parties returned to Clare's. Gallatin +appeared before the court of Monongalia County, at its October term, and +took the "oath of allegiance and fidelity to the Commonwealth of +Virginia." Clare's, his actual residence, was north of the Virginia +line, but his affections were with the old Dominion. In November the +partners hired from Clare a house at George's Creek, in Springfield +township, and established their residence, after which they returned to +Richmond by way of Cumberland and the Potomac. In February, 1786, +Gallatin made his permanent abode at his new home. + +Mention has been made of the intimacy of the young emigrants with Jean +Badollet, a college companion. When they left Geneva he was engaged in +the study of theology, and was now a teacher. He was included in the +original plan of emigration, and the first letters of both Gallatin and +Serre, who had for him an equal attachment, were to him, and year by +year, through all the vicissitudes of their fortune, they kept him +carefully informed of their movements and projects. For two years after +their departure no word was received from him. At last, spurred by the +sharp reproaches of Serre, he broke silence. In a letter written in +March, 1783, informing Gallatin of the troubles in Switzerland, he +excused himself on the plea that their common friend, Dumont, retained +him at Geneva. In answer, Gallatin opened his plans of western +settlement, which included the employment of his fortune in the +establishment of a number of families upon his lands. He suggested to +Badollet to bring with him the little money he had, to which enough +would be added to establish him independently. Dumont was invited to +accompany him. But with a prudence which shows that his previous +experience had not been thrown away upon him, Gallatin recommends his +friend not to start at once, but to hold himself ready for the next, or, +at the latest, the year succeeding, at the same time suggesting the idea +of a general emigration of such Swiss malcontents as were small +capitalists and farmers; that of manufacturers and workmen he +discouraged. It was not, however, until the spring of 1785, on the eve +of leaving Richmond with some families which he had engaged to establish +on his lands, that he felt justified in asking his old friend to cross +the seas and share his lot. This invitation was accepted, and Badollet +joined him at George's Creek. + +The settlement beginning to spread, Gallatin bought another farm higher +up the river, to which he gave the name of Friendship Hill. Here he +later made his home. + +The western part of Pennsylvania, embracing the area which stretches +from the Alleghany Mountains to Lake Erie, is celebrated for the wild, +picturesque beauty of its scenery. Among its wooded hills the head +waters of the Ohio have their source. At Fort Duquesne, or Pittsburgh, +where the river takes a sudden northerly bend before finally settling in +swelling volume on its southwesterly course to the Mississippi, the +Monongahela adds its mountain current, which separates in its entire +course from the Virginia line the two counties of Fayette and +Washington. The Monongahela takes its rise in Monongalia County, +Virginia, and flows to the northward. Friendship Hill is one of the +bluffs on the right bank of the river, and faces the Laurel Ridge to the +eastward. Braddock's Road, now the National Road, crosses the mountains, +passing through Uniontown and Red Stone Old Fort (Brownsville), on its +course to Pittsburgh. The county seat of Fayette is the borough of Union +or Uniontown. Gallatin's log cabin, the beginning of New Geneva, was on +the right bank of the Monongahela, about twelve miles to the westward of +the county seat. Opposite, on the other side of the river, in Washington +County, was Greensburg, where his friend Badollet was later established. + +Again for a long period Gallatin left his family without any word +whatever. His most indulgent friend, Mademoiselle Pictet, could hardly +excuse his silence, and did not hesitate to charge that it was due to +misfortunes which his pride prompted him to conceal. In the early days +of 1786 a rumor of his death reached Geneva, and greatly alarmed his +family. Mr. Jefferson, then minister at Paris, wrote to Mr. Jay for +information. This was Jefferson's first knowledge of the existence of +the young man who was to become his political associate, his philosophic +companion, and his truest friend. Meanwhile Gallatin had attained his +twenty-fifth year and his majority. His family were no longer left in +doubt as to his existence, and in response to his letters drafts were at +once remitted to him for the sum of five thousand dollars, through the +banking-house of Robert Morris. This was, of course, immediately applied +to his western experiment. The business of the partnership now called +for his constant attention. It required the exercise of a great variety +of mental powers, a cool and discriminating judgment, combined with an +incessant attention to details. Nature, under such circumstances, is not +so attractive as she appears in youthful dreams; admirable in her +original garb, she is annoying and obstinate when disturbed. The view of +country which Friendship Hill commands is said to rival Switzerland in +its picturesque beauty, but years later, when the romance of the +Monongahela hills had faded in the actualities of life, Gallatin wrote +of it that "he did not know in the United States any spot which afforded +less means to earn a bare subsistence for those who could not live by +manual labor." + +Gallatin has been blamed for "taking life awry and throwing away the +advantages of education, social position, and natural intelligence," by +his removal to the frontier, and his career compared with that of +Hamilton and Dallas, who, like him, foreign born, rose to eminence in +politics, and became secretaries of the treasury of the United States. +But both of these were of English-speaking races. No foreigner of any +other race ever obtained such distinction in American politics as Mr. +Gallatin, and he only because he was the choice of a constituency, to +every member of which he was personally known. It is questionable +whether in any other condition of society he could have secured +advancement by election--the true source of political power in all +democracies. John Marshall, afterwards Chief Justice, recognized +Gallatin's talent soon after his arrival in Richmond, offered him a +place in his office without a fee, and assured him of future distinction +in the profession of the law; but Patrick Henry was the more sagacious +counselor; he advised Gallatin to go to the West, and predicted his +success as a statesman. Modest as the beginning seemed in the country he +had chosen, it was nevertheless a start in the right direction, as the +future showed. It was in no sense a mistake. + +Neither did the affairs of the wilderness wholly debar intercourse with +the civilized world. Visiting Richmond every winter, he gradually +extended the circle of his acquaintance, and increased his personal +influence; he also occasionally passed a few weeks at Philadelphia. Two +visits to Maine are recorded in his diary, but whether they were of +pleasure merely does not appear. One was in 1788, in midwinter, by stage +and sleigh. On this excursion he descended the Androscoggin and crossed +Merrymeeting Bay on the ice, returning by the same route in a snowstorm, +which concealed the banks on either side of the river, so that he +governed his course by the direction of the wind. With the intellect of +a prime minister he had the constitution of a pioneer. On one of these +occasions he intended to visit his old friends and hosts, the +Lesderniers, but the difficulty of finding a conveyance, and the rumor +that the old gentleman was away from home, interfered with his purpose. +He remembered their kindness, and later attempted to obtain pensions for +them from the United States government. + +But the time now arrived when the current of his domestic life was +permanently diverted, and set in other channels. In May, 1789, he +married Sophie Allègre, the daughter of William Allègre of a French +Protestant family living at Richmond. The father was dead, and the +mother took lodgers, of whom Gallatin was one. For more than a year he +had addressed her and secured her affections. Her mother now refused her +consent, and no choice was left to the young lovers but to marry without +it. Little is known of this short but touching episode in Mr. Gallatin's +life. The young lady was warmly attached to him, and the letter written +to her mother asking forgiveness for her marriage is charmingly +expressed and full of feeling. They passed a few happy months at +Friendship Hill, when suddenly she died. From this time Mr. Gallatin +lost all heart in the western venture, and his most earnest wish was to +turn his back forever upon Fayette County. In his suffering he would +have returned to Geneva to Mademoiselle Pictet, could he have sold his +Virginia lands. But this had become impossible at any price, and he had +no other pecuniary resource but the generosity of his family. + +Meanwhile the revolution had broken out in France. The rights of man had +been proclaimed on the Champ de Mars. All Europe was uneasy and alarmed, +and nowhere offered a propitious field for peaceful labor. But Gallatin +did not long need other distraction than he was to find at home. + + + + +CHAPTER II + +PENNSYLVANIA LEGISLATURE + + +Political revolutions are the opportunity of youth. In England, Pitt and +Fox; in America, Hamilton and Gouverneur Morris; in Europe, Napoleon and +Pozzo di Borgo, before they reached their thirtieth year, helped to +shape the political destiny of nations. The early maturity of Gallatin +was no less remarkable. In his voluminous correspondence there is no +trace of youth. At nineteen his habits of thought were already formed, +and his moral and intellectual tendencies were clearly marked in his +character, and understood by himself. His tastes also were already +developed. His life, thereafter, was in every sense a growth. The germs +of every excellence, which came to full fruition in his subsequent +career, may be traced in the preferences of his academic days. From +youth to age he was consistent with himself. His mind was of that rare +and original order which, reasoning out its own conclusions, seldom has +cause to change. + +His political opinions were early formed. A letter written by him in +October, 1783, before he had completed his twenty-third year, shows the +maturity of his intellect, and his analytic habit of thought. An extract +gives the nature of the reasons which finally determined him to make his +home in America:-- + + "This is what by degrees greatly influenced my judgment. After my + arrival in this country I was early convinced, upon a comparison of + American governments with that of Geneva, that the latter is + founded on false principles; that the judicial power, in civil as + well as criminal cases, the executive power wholly, and two thirds + of the legislative power being lodged in two bodies which are + almost self-made, and the members of which are chosen for life,--it + is hardly possible but that this formidable aristocracy should, + sooner or later, destroy the equilibrium which it was supposed + could be maintained at Geneva." + +The period from the peace of 1783 to the adoption of the federal +Constitution in 1787 was one of political excitement. The utter failure +of the old Confederation to serve the purposes of national defense and +safety for which it was framed had been painfully felt during the war. +Independence had been achieved under it rather than by it, the patriotic +action of some of the States supplying the deficiencies of others less +able or less willing. By the radical inefficiency of the Confederation +the war had been protracted, its success repeatedly imperiled, and, at +its close, the results gained by it were constantly menaced. The more +perfect union which was the outcome of the deliberations of the federal +convention was therefore joyfully accepted by the people at large. +Indeed, it was popular pressure, and not the arguments of its advocates, +that finally overcame the formidable opposition in and out of the +convention to the Constitution. No written record remains of Mr. +Gallatin's course during the sessions of the federal convention. He was +not a member of the body, nor is his name connected with any public act +having any bearing upon its deliberations. Of the direction of his +influence, however, there can be no doubt. He had an abiding distrust of +strong government,--a dread of the ambitions of men. Precisely what form +he would have substituted for the legislative and executive system +adopted nowhere appears in his writings, but certainly neither president +nor senate would have been included. They bore too close a resemblance +to king and lords to win his approval, no matter how restricted their +powers. He would evidently have leaned to a single house, with a +temporary executive directly appointed by itself; or, if elected by the +people, then for a short term of office, without renewal; and he would +have reduced its legislative powers to the narrowest possible limit. The +best government he held to be that which governs least; and many of the +ablest of that incomparable body of men who welded this Union held these +views. But the yearning of the people was in the other direction. They +felt the need of government. They wanted the protection of a strong arm. +It must not be forgotten that the thirteen colonies which declared +their independence in 1776 were all seaboard communities, each with its +port. They were all trading communities. The East, with its fisheries +and timber; the Middle States, with their agricultural products and +peltries; the South, with its tobacco; each saw, in that freedom from +the restrictions of the English navigation laws which the treaty of +peace secured, the promise of a boundless commerce. To protect commerce +there must be a national power somewhere. Since the peace the government +had gained neither the affection of its own citizens nor the respect of +foreign powers. + +The federal Constitution was adopted September 17, 1787. The first State +to summon a convention of ratification was Pennsylvania. No one of the +thirteen original States was more directly interested than herself. The +centre of population lay somewhere in her limits, and there was +reasonable ground for hope that Philadelphia would become once more the +seat of government. The delegates met at Philadelphia on November 2. An +opposition declared itself at the beginning of the proceedings. +Regardless of the popular impatience, the majority allowed full scope to +adverse argument, and it was not until December 12 that the final vote +was taken and the Constitution ratified, without recommendations, by a +majority of two to one. In this body Fayette County was represented by +Nicholas Breading and John Smilie. The latter gentleman, of Scotch-Irish +birth, an adroit debater, led the opposition. In the course of his +criticisms he enunciated the doctrines which were soon to become a party +cry; the danger of the Constitution "in inviting rather than guarding +against the approaches of tyranny;" "its tendency to a consolidation, +not a confederation, of the States." Mr. Gallatin does not appear to +have sought to be a delegate to this body, but his hand may be traced +through the speeches of Smilie in the precision with which the +principles of the opposition were formulated and declared; and his +subsequent course plainly indicates that his influence was exerted in +the interest of the dissatisfied minority. The ratification was received +by the people with intense satisfaction, but the delay in debate lost +the State the honor of precedence in the honorable vote of +acquiescence,--the Delaware convention having taken the lead by a +unanimous vote. For the moment the Pennsylvania Anti-Federalists clung +to the hope that the Constitution might yet fail to receive the assent +of the required number of States, but as one after another fell into +line, this hope vanished. + +One bold expedient remained. The ratification of some of the States was +coupled with the recommendation of certain amendments. Massachusetts led +the way in this, Virginia followed, and New York, which, in the language +of the day, became the eleventh pillar of the federal edifice, on July +26, 1788, accompanied her ratification with a circular letter to the +governors of all the States, recommending that a general convention be +called.[1] + +The argument taken in this letter was the only one which had any chance +of commending itself to popular favor. It was in these words: "that the +apprehension and discontents which the articles occasion cannot be +removed or allayed unless an act to provide for the calling of a new +convention be among the first that shall be passed by the next +Congress." This document, made public at once, encouraged the +Pennsylvania Anti-Federalists to a last effort to bring about a new +convention, to undo or radically alter the work of the old. A conference +held at Harrisburg, on September 3, 1788, was participated in by +thirty-three gentlemen, from various sections of the State, who +assembled in response to the call of a circular letter which originated +in the county of Cumberland in the month of August. The city of +Philadelphia and thirteen counties were represented; six of the +dissenting members of the late convention were present, among whom was +Smilie. He and Gallatin represented the county of Fayette. + +Smilie, Gallatin's earliest political friend, was born in 1742, and was +therefore about twenty years his senior. He came to the United States in +youth, and had grown up in the section he now represented. His +popularity is shown by his service in the state legislature, and during +twelve years in Congress as representative or as senator. In any +estimate of Mr. Gallatin, this early influence must be taken into +account. The friendship thus formed continued until Smilie's death in +1816. From the adviser he became the ardent supporter of Mr. Gallatin. + +Blair McClanachan, of Philadelphia County, was elected chairman of the +conference. The result of this deliberation was a report in the form of +a series of resolutions, of which two drafts, both in Mr. Gallatin's +handwriting, are among his papers now in the keeping of the New York +Historical Society. The original resolutions were broad in scope, and +suggested a plan of action of a dual nature; the one of which failing, +resort could be had to the other without compromising the movement by +delay. In a word, it proposed an opposition by a party organization. The +first resolution was adroitly framed to avoid the censure with which the +people at large, whose satisfaction with the new Constitution had grown +with the fresh adhesions of State after State to positive enthusiasm, +would surely condemn any attempt to dissolve the Union formed under its +provisions. This resolution declared that it was in order to _prevent_ a +dissolution of the Union and to secure liberty, that a revision was +necessary. The second expressed the opinion of the conference to be, +that the safest manner to obtain such revision was to conform to the +request of the State of New York, and to urge the calling of a new +convention, and recommended that the Pennsylvania legislature be +petitioned to apply for that purpose to the new Congress. These were +declaratory. The third and fourth provided, first, for an organization +of committees in the several counties to correspond with each other and +with similar committees in other States; secondly, invited the friends +to amendments in the several States to meet in conference at a fixed +time and place. This plan of committees of correspondence and of a +meeting of delegates was simply a revival of the methods of the Sons of +Liberty, from whose action sprung the first Continental Congress of +1774. + +The formation of such an organization would surely have led to +disturbance, perhaps to civil war. During the progress of the New York +convention swords and bayonets had been drawn, and blood had been shed +in the streets of Albany, where the Anti-Federalists excited popular +rage by burning the new Constitution. But the thirty-three gentlemen who +met at Harrisburg wisely tempered these resolutions to a moderate tone. +Thus modified, they recommended, first, that the people of the State +should acquiesce in the organization of the government, while holding in +view the necessity of very considerable amendments and alterations +essential to preserve the peace and harmony of the Union. Secondly, that +a revision by general convention was necessary. Thirdly, that the +legislature should be requested to apply to Congress for that purpose. +The petition recommended twelve amendments, selected from those already +proposed by other States. These were of course restrictive. The report +was made public in the "Pennsylvania Packet" of September 15. With this +the agitation appears to have ceased. On September 13 Congress notified +the States by resolution to appoint electors under the provisions of the +Constitution. The unanimous choice of Washington as president hushed all +opposition, and for a time the Anti-Federalists sunk into +insignificance. + +The persistent labors of the friends of revision were not without +result. The amendments proposed by Virginia and New York were laid +before the House of Representatives. Seventeen received the two thirds +vote of the House. After conference with the Senate, in which Mr. +Madison appeared as manager for the House, these, reduced in number to +twelve by elimination and compression, were adopted by the requisite two +thirds vote, and transmitted to the legislatures of the States for +approval. Ratified by a sufficient number of States, they became a part +of the Constitution. They were general, and declaratory of personal +rights, and in no instance restrictive of the power of the general +government. + +In 1789, the Assembly of Pennsylvania calling a convention to revise the +Constitution of the State, Mr. Gallatin was sent as a delegate from +Fayette County. To the purposes of this convention he was opposed, as a +dangerous precedent. He had endeavored to organize an opposition to it +in the western counties, by correspondence with his political friends. +His objections were the dangers of alterations in government, and the +absurdity of the idea that the Constitution ever contemplated a change +by the will of a mere majority. Such a doctrine, once admitted, would +enable not only the legislature, but a majority of the more popular +house, were two established, to make another appeal to the people on the +first occasion, and, instead of establishing on solid foundations a new +government, would open the door to perpetual change, and destroy that +stability which is essential to the welfare of a nation; since no +constitution acquires the permanent affection of the people, save in +proportion to its duration and age. Finally, such changes would sooner +or later conclude in an appeal to arms,--the true meaning of the popular +and dangerous words, "an appeal to the people." The opposition was begun +too late, however, to admit of combined effort, and was not persisted +in; and Mr. Gallatin himself, with practical good sense, consented to +serve as a delegate. Throughout his political course the pride of +mastery never controlled his actions. When debarred from leadership he +did not sulk in his tent, but threw his weight in the direction of his +principles. The convention met at Philadelphia on November 24, 1789, and +closed its labors on September 2, 1790. This was Gallatin's +apprenticeship in the public service. Among his papers are a number of +memoranda, some of them indicating much elaboration of speeches made, or +intended to be made, in this body. One is an argument in favor of +enlarging the representation in the House; another is against a plan of +choosing senators by electors; another concerns the liberty of the +press. There is, further, a memorandum of his motion in regard to the +right of suffrage, by virtue of which "every freeman who has attained +the age of twenty-one years, and been a resident and inhabitant during +one year next before the day of election, every naturalized freeholder, +every naturalized citizen who had been assessed for state or county +taxes for two years before election day, or who had resided ten years +successively in the State, should be entitled to the suffrage, paupers +and vagabonds only being excluded." Certainly, in his conservative +limitations upon suffrage, he did not consult his own interest as a +large landholder inviting settlement, nor pander to the natural desires +of his constituency. + +In an account of this convention, written at a later period, Mr. +Gallatin said that it was the first public body to which he was elected, +and that he took but a subordinate share in the debates; that it was one +of the ablest bodies of which he was ever a member, and with which he +was acquainted, and, excepting Madison and Marshall, that it embraced as +much talent and knowledge as any Congress from 1795 to 1812, beyond +which his personal knowledge did not extend. Among its members were +Thomas McKean, signer of the Declaration of Independence and president +of the Continental Congress, Thomas Mifflin and Timothy Pickering, of +the Revolutionary army, and Smilie and Findley, Gallatin's political +friends. General Mifflin was its president. + +But mental distraction brought Mr. Gallatin no peace of heart at this +period, and when the excitement of the winter was over he fell into a +state of almost morbid melancholy. To his friend Badollet he wrote from +Philadelphia, early in March, that life in Fayette County had no more +charms for him, and that he would gladly leave America. But his lands +were unsalable at any price, and he saw no means of support at Geneva. +Some one has said, with a profound knowledge of human nature, that no +man is sure of happiness who has not the capacity for continuous labor +of a disagreeable kind. The occasional glimpses into Mr. Gallatin's +inner nature, which his correspondence affords, show that up to this +period he was not supposed by his friends or by himself to have this +capacity. In the letter which his guardian wrote to him after his flight +from home, he was reproached with his "natural indolence." His good +friend, Mademoiselle Pictet, accused him of being hard to please, and +disposed to _ennui_; and again, as late as 1787, repeats to him, in a +tone of sorrow, the reports brought to her of his "continuance in his +old habit of indolence," his indifference to society, his neglect of +his dress, and general indifference to everything but study and reading, +tastes which, she added, he might as well have cultivated at Geneva as +in the new world; and he himself, in the letter to Badollet just +mentioned, considers that his habits and his laziness would prove +insuperable bars to his success in any profession in Europe. In +estimation of this self-condemnation, it must be borne in mind that the +Genevans were intellectual Spartans. Gallatin must be measured by that +high standard. But if the charge of indolence could have ever justly +lain against Gallatin,--a charge which his intellectual vigor at +twenty-seven seems to challenge,--it certainly could never have been +sustained after he fairly entered on his political and public career. In +October, 1790, he was elected by a two thirds majority to represent +Fayette County in the legislature of the State of Pennsylvania; James +Findley was his colleague, John Smilie being advanced to the state +Senate. Mr. Gallatin was reëlected to the Assembly in 1791 and 1792, +without opposition. + +Among his papers there is a memorandum of his legislative service during +these three years, and a manuscript volume of extracts from the Journals +of the House, from January 14, 1791, to December 17, 1794. They form +part of the extensive mass of documents and letters which were collected +and partially arranged by himself, with a view to posthumous +publication. Here is an extract from the memorandum:-- + + "I acquired an extraordinary influence in that body [the + Pennsylvania House of Representatives]; the more remarkable as I + was always in a party minority. I was indebted for it to my great + industry and to the facility with which I could understand and + carry on the current business. The laboring oar was left almost + exclusively to me. In the session of 1791-1792, I was put on + thirty-five committees, prepared all their reports, and drew all + their bills. Absorbed by those details, my attention was turned + exclusively to administrative laws, and not to legislation properly + so called.... I failed, though the bill I had introduced passed the + House, in my efforts to lay the foundation for a better system of + education. Primary education was almost universal in Pennsylvania, + but very bad, and the bulk of schoolmasters incompetent, miserably + paid, and held in no consideration. It appeared to me that in order + to create a sufficient number of competent teachers, and to raise + the standard of general education, intermediate academical + education was an indispensable preliminary step, and the object of + the bill was to establish in each county an academy, allowing to + each out of the treasury a sum equal to that raised by taxation in + the county for its support. But there was at that time in + Pennsylvania a Quaker and a German opposition to every plan of + general education. + + "The spirit of internal improvements had not yet been awakened. + Still, the first turnpike-road in the United States was that from + Philadelphia to Lancaster, which met with considerable opposition. + This, as well as every temporary improvement in our communications + (roads and rivers) and preliminary surveys, met, of course, with my + warm support. But it was in the fiscal department that I was + particularly employed, and the circumstances of the times favored + the restoration of the finances of the State. + + "The report of the Committee of Ways and Means of the session + 1790-91 was entirely prepared by me, known to be so, and laid the + foundation of my reputation. I was quite astonished at the general + encomiums bestowed upon it, and was not at all aware that I had + done so well. It was perspicuous and comprehensive; but I am + confident that its true merit, and that which gained me the general + confidence, was its being founded in strict justice, without the + slightest regard to party feelings or popular prejudices. The + principles assumed, and which were carried into effect, were the + immediate reimbursement and extinction of the state paper-money, + the immediate payment in specie of all the current expenses, or + warrants on the treasury (the postponement and uncertainty of which + had given rise to shameful and corrupt speculations), and provision + for discharging without defalcation every debt and engagement + previously recognized by the State. In conformity with this, the + State paid to its creditors the difference between the nominal + amount of the state debt assumed by the United States and the rate + at which it was funded by the act of Congress. + + "The proceeds of the public lands, together with the arrears, were + the fund which not only discharged all the public debts, but left a + large surplus. The apprehension that this would be squandered by + the legislature was the principal inducement for chartering the + Bank of Pennsylvania, with a capital of two millions of dollars, of + which the State subscribed one half. This, and similar subsequent + investments, enabled Pennsylvania to defray, out of the dividends, + all the expenses of government without any direct tax during the + forty ensuing years, and till the adoption of the system of + internal improvement, which required new resources. + + "It was my constant assiduity to business, and the assistance + derived from it by many members, which enabled the Republican party + in the legislature, then a minority on a joint ballot, to elect me, + and no other but me of that party, senator of the United States." + +Among the reports enumerated by Mr. Gallatin, as those of which he was +the author, is one made by a committee on March 22, 1793, that they ... +are of opinion slavery is inconsistent with every principle of humanity, +justice, and right, and repugnant to the spirit and express letter of +the Constitution of the Commonwealth. Added to this was a resolution for +its abolition in the Commonwealth. + +The seat of government was changed from New York to Philadelphia in +1790, and the first Congress assembled there in the early days of +December for its final session. Philadelphia was in glee over the +transfer of the departments. The convention which framed the new state +Constitution met here in the fall, and the legislature was also holding +its sessions. The atmosphere was political. The national and local +representatives met each other at all times and in all places, and the +public affairs were the chief topic in and out of doors. In this busy +whirl Gallatin made many friends, but Philadelphia was no more to his +taste as a residence than Boston. He was disgusted with the +ostentatious display of wealth, the result not of industry but of +speculation, and not in the hands of the most deserving members of the +community. Later he became more reconciled to the tone of Pennsylvania +society, comparing it with that of New York; he was especially pleased +with its democratic spirit, and the absence of _family influence_. "In +Pennsylvania," he says, "not only we have neither Livingstons, nor +Rensselaers, but from the suburbs of Philadelphia to the banks of the +Ohio I do not know a single family that has any extensive influence. An +equal distribution of property has rendered every individual +independent, and there is amongst us true and real equality. In a word, +as I am lazy, I like a country where living is cheap; and as I am poor, +I like a country where no person is very rich." + +Hamilton's excise bill was a bone of contention in the national and +state legislatures throughout the winter. Direct taxation upon anything +was unpopular, that on distilled spirits the most distasteful to +Pennsylvania, where whiskey stills were numerous in the Alleghanies. To +the bill introduced into Congress a reply was immediately made January +14, 1791, by the Pennsylvania Assembly in a series of resolutions which +are supposed to have been drafted by Mr. Gallatin, and to have been the +first legislative paper from his pen. They distinctly charged that the +obnoxious bill was "subversive of the peace, liberty, and rights of the +citizen." + +Tax by excise has always been offensive to the American people, as it +was to their ancestors across the sea. It was characterized by the first +Continental Congress of 1774 as "the horror of all free States." +Notwithstanding their warmth, these resolutions passed the Assembly by a +vote of 40 to 16. The course of this excitement must be followed; as it +swept Mr. Gallatin in its mad current, and but for his self-control, +courage, and adroitness would have wrecked him on the breakers at the +outset of his political voyage. The excise law passed Congress on March +3, 1791. On June 22 the state legislature, by a vote of 36 to 11, +requested their senators and representatives in Congress to oppose every +part of the bill which "shall militate against the rights and liberties +of the people." + +The western counties of Pennsylvania--Westmoreland, Fayette, Washington, +and Allegheny--lie around the head-waters of the Ohio in a radius of +more than a hundred miles. At this time they contained a population of +about seventy thousand souls. Pittsburgh, the seat of justice, had about +twelve hundred inhabitants. The Alleghany Mountains separate this wild +region from the eastern section of the State. There were few roads of +any kind, and these lay through woods. The mountain passes could be +traveled only on foot or horseback. The only trade with the East was by +pack-horses, while communication with the South was cut off by hostile +Indian tribes who held the banks of the Ohio. This isolation from the +older, denser, and more civilized settlements bred in the people a +spirit of self-reliance and independence. They were in great part +Scotch-Irish Presbyterians, a religious and warlike race to whom the +hatred of an exciseman was a tradition of their forefathers. Having no +market for their grain, they were compelled to preserve it by converting +it into whiskey. The still was the necessary appendage of every farm. +The tax was light, but payable in money, of which there was little or +none. Its imposition, therefore, coupled with the declaration of its +oppressive nature by the Pennsylvania legislature, excited a spirit of +determined opposition near akin to revolution. + +Unpopular in all the western part of the State, Hamilton's bill was +especially odious to the people of Washington County. The first meeting +in opposition to it was held at Red Stone Old Fort or Brownsville, the +site of one of those ancient remains of the mound-builders which abound +in the western valleys. It was easily reached by Braddock's Road, the +chief highway of the country. Here gathered on July 27, 1791, a number +of persons opposed to the law, when it was agreed that county committees +should be convened in the four counties at the respective seats of +justice. Brackenridge, in his "Incidents of the Western Insurrection," +says that Albert Gallatin was clerk of the meeting. One of these +committees met in the town of Washington on August 23, when violent +resolutions were adopted. Gallatin, engaged at Philadelphia, was not +present at this assemblage, three of whose members were deputed to meet +delegates from the counties of Westmoreland, Fayette, and Allegheny, at +Pittsburgh, on the first Tuesday in September following, to agree upon +an address to the legislature on the subject of excise and other +grievances. At the Pittsburgh meeting eleven delegates appeared for the +four counties. The resolutions adopted by them, general in character, +read more like a declaration of grievances as a basis for revolution +than a petition for special redress. No wonder that the secretary of the +treasury stigmatized them as "intemperate." They charge that in the laws +of the late Congress hasty strides had been made to all that was unjust +and oppressive. They complain of the increase in the salaries of +officials, of the unreasonable interest of the national debt, of the +non-discrimination between original holders and transferees of the +public securities, of the National Bank as a base offspring of the +funding system; finally, in detail, of the excise law of March 3, 1791. +At this meeting James Marshall and David Bradford represented Washington +County. + +In August government offices of inspection were opened. The spirit of +resistance was now fully aroused, and in the early days of September the +collectors for Washington, Westmoreland, and Fayette were treated with +violence. Unwilling to proceed to excessive measures, and no doubt +swayed by the attitude of the Pennsylvania legislature, Congress in +October referred the law back to Hamilton for revision. He reported an +amended act on March 6, 1792, which was immediately passed, and became a +law March 8. It was to take effect on the last day of June succeeding. +By it the rate of duty was reduced, a privilege of time as to the +running of licenses of stills granted, and the tax ordered only for such +time as they were actually used. + +But these modifications did not satisfy the malcontents of the four +western counties, and they met again on August 21, 1792, at Pittsburgh. +Of this second Pittsburgh meeting Albert Gallatin was chosen secretary. +Badollet went up with Gallatin. John Smilie, James Marshall, and James +Bradford of Washington County were present. Bradford, Marshall, +Gallatin, and others were appointed to draw up a remonstrance to +Congress. In order to carry out with regularity and concert the measures +agreed upon, a committee of correspondence was appointed, and the +meeting closed with the adoption of the violent resolutions passed at +the Washington meeting of 1791:-- + + "Whereas, some men may be found among us so far lost to every sense + of virtue and feeling for the distresses of this country as to + accept offices for the collection of the duty. + + "Resolved, therefore, that in future we will consider such persons + as unworthy of our friendship; have no intercourse or dealings with + them; withdraw from them every assistance, and withhold all the + comforts of life which depend upon those duties that as men and + fellow citizens we owe to each other; and upon all occasions treat + them with that contempt they deserve; and that it be, and it is + hereby, most earnestly recommended to the people at large, to + follow the same line of conduct towards them." + +If such an excommunication were to be meted out to an offending +neighbor, what measure would the excise man receive if he came from +abroad on his unwelcome errand? + +These resolutions were signed by Mr. Gallatin as clerk, and made public +through the press. Resolutions of this character, if not criminal, reach +the utmost limit of indiscretion, and political indiscretion is quite as +dangerous as crime. The petition to Congress, subscribed by the +inhabitants of western Pennsylvania, was drawn by Gallatin; while +explicit in terms, it was moderate in tone. It represented the unequal +operation of the act. "A duty laid on the common drink of a nation, +instead of taxing the citizens in proportion to their property, falls as +heavy on the poorest class as on the rich;" and it ingeniously pointed +out that the distance of the inhabitants of the western counties from +market prevented their bringing the produce of their lands to sale, +either in grain or meal. "We are therefore distillers through necessity, +not choice; that we may comprehend the greatest value in the smallest +size and weight." + +Hamilton, indignant, reported the proceedings to the President on +September 9, 1792, and demanded instant punishment. Washington, who was +at Mount Vernon, was unwilling to go to extremes, but consented to issue +a proclamation, which, drafted by Hamilton, and countersigned by +Jefferson, was published September 15, 1792. It earnestly admonished all +persons to desist from unlawful combinations to obstruct the operations +of the laws, and charged all courts, magistrates, and officers with +their enforcement. There was no mistaking Hamilton's intention to +enforce the law. Prosecutions in the Circuit Court, held at Yorktown in +October, were ordered against the Pittsburgh offenders, but no proof +could be had to sustain an indictment. + +The President's proclamation startled the western people, and some +uneasiness was felt as to how such of their representatives as had taken +part in the Pittsburgh meeting would be received when they should go up +to the legislature in the winter. Bradford and Smilie accompanied +Gallatin; Smilie to take his seat in the state Senate, and Bradford to +represent Washington County in the House, where he "cut a poor figure." +Gallatin despised him, and characterized him as a "tenth-rate lawyer and +an empty drum." Gallatin found, however, that although the Pittsburgh +meeting had hurt the general interest of his party throughout the State, +and "rather defeated" the repeal of the excise law, his eastern friends +did not turn the cold shoulder to him. He said to every one whom he +knew that the resolutions were perhaps too violent and undoubtedly +highly impolitic, but, in his opinion, contained nothing illegal. +Meanwhile federal officers proceeded to enforce the law in Washington +County. A riot ensued, and the office was forcibly closed. Bills were +found against two of the offenders in the federal court, and warrants to +arrest and bring them to Philadelphia for trial were issued. Gallatin +believed the men innocent, and did not hesitate to advise Badollet to +keep them out of the way when the marshal should go to serve the writs, +but deprecated any insult to the officer. He thought "the precedent a +very dangerous one to drag people such a distance in order to be tried +on governmental prosecutions." Here the matter rested for a season. + +At this session of the legislature Gallatin introduced a new system of +county taxation, proposed a clause providing for "trustees yearly +elected, one to each township, without whose consent no tax is to be +raised, nor any above one per cent. on the value of lands," which he +hoped would "tend to crush the aristocracy of every town in the State." +Also he proposed a plan to establish a school and library in each +county, with a sufficient immediate sum in money, and a yearly allowance +for a teacher in the English language. + +FOOTNOTES: + +[Footnote 1: The drafting of this letter was, notwithstanding his +protest, intrusted to John Jay, one of the strongest of the Federal +leaders, and a warm supporter of the Constitution as it stood.] + + + + +CHAPTER III + +UNITED STATES SENATE + + +The death of the grandfather of Mr. Gallatin, and soon after of his +aunt, strongly tempted him to make a journey to Geneva in the summer of +1793. The political condition of Europe at that time was of thrilling +interest. On January 21 the head of Louis XVI. fell under the +guillotine, to which Marie Antoinette soon followed him. The armies of +the coalition were closing in upon France. Of the political necessity +for these state executions there has always been and will always be +different judgments. That of Mr. Gallatin is of peculiar value. It is +found expressed in intimate frankness in a letter to his friend +Badollet, written at Philadelphia, February 1, 1794. + + "France at present offers a spectacle unheard of at any other + period. Enthusiasm there produces an energy equally terrible and + sublime. All those virtues which depend upon social or family + affections, all those amiable weaknesses, which our natural + feelings teach us to love or respect, have disappeared before the + stronger, the only, at present, powerful passion, the _Amor + Patriæ_. I must confess my soul is not enough steeled, not + sometimes to shrink at the dreadful executions which have restored + at least apparent internal tranquillity to that republic. Yet upon + the whole, as long as the combined despots press upon every + frontier, and employ every engine to destroy and distress the + interior parts, I think they, and they alone, are answerable for + every act of severity or injustice, for every excess, nay for every + crime, which either of the contending parties in France may have + committed." + +Within a few years the publication of the correspondence of De Fersen, +the agent of the king and queen, has supplied the proof of the charge +that they were in secret correspondence with the allied sovereigns to +introduce foreign troops upon the soil of France,--a crime which no +people has ever condoned. + +The French Revolution, which from its beginning in 1789 reacted upon the +United States with fully the force that the American Revolution exerted +upon France, had become an important factor in American politics. The +intemperance of Genet, the minister of the French Convention to the +United States on the one hand, and the breaches of neutrality by England +on the other, were dividing the American people into English and French +parties. The Federalists sympathized with the English, the late enemies, +and the Republicans with the French, the late allies, of the United +States. + +Mr. Gallatin had about made up his mind to visit Europe, when an +unexpected political honor changed his plans. The Pennsylvania +legislature elected him a senator of the United States on joint ballot, +a distinction the more singular in that the legislature was Federalist +and Mr. Gallatin was a representative of a Republican district, and +strong in that faith. Moreover, he was not a candidate either of his own +motion or by that of his friends, but, on the contrary, had doubts as to +his eligibility because of insufficient residence. This objection, which +he himself stated in caucus, was disregarded, and on February 28, 1793, +by a vote of 45 to 37, he was chosen senator. Mr. Gallatin had just +completed his thirty-second year, and now a happy marriage came +opportunely to stimulate his ambition and smooth his path to other +honors. + +Among the friends made at Philadelphia was Alexander J. Dallas, a +gentleman two years Gallatin's senior, whose career, in some respects, +resembled his own. He was born in Jamaica, of Scotch parents; had been +thoroughly educated at Edinburgh and Westminster, and, coming to the +United States in 1783, had settled in Philadelphia. He now held the post +of secretary of state for Pennsylvania. Mr. Gallatin's constant +committee service brought him into close relations with the secretary, +and the foundation was laid of a lasting political friendship and social +intimacy. In the recess of the legislature, Mr. Gallatin joined Mr. +Dallas and his wife in an excursion to the northward. Mr. Gallatin's +health had suffered from close confinement and too strict attention to +business, and he needed recreation and diversion. In the course of the +journey the party was joined by some ladies, friends of Mrs. Dallas, +among whom was Miss Hannah Nicholson. The excursion lasted nearly four +weeks. The result was that Mr. Gallatin returned to Philadelphia the +accepted suitor of this young lady. He describes her in a letter to +Badollet as "a girl about twenty-five years old, who is neither handsome +nor rich, but sensible, well-informed, good-natured, and belonging to a +respectable and very amiable family." Nor was he mistaken in his +choice,--a more charming nature, a more perfect, well-rounded character +than hers is rarely found. They were married on November 11, 1793. She +was his faithful companion throughout his long and honorable career, and +death separated them but by a few months. This alliance greatly widened +his political connection. + +Commodore James Nicholson, his wife's father, famous in the naval annals +of the United States as the captain of the Trumbull, the first of +American frigates, at the time resided in New York, and was one of the +acknowledged leaders of the Republican party in the city. His two +brothers--Samuel and John--were captains in the naval service. His two +elder daughters were married to influential gentlemen;--Catharine to +Colonel Few, senator from Georgia; Frances, to Joshua Seney, member of +Congress from Maryland; Maria later (1809) married John Montgomery, who +had been member of Congress from Maryland, and was afterwards mayor of +Baltimore. A son, James Witter Nicholson, then a youth of twenty-one, +was, in 1795, associated with Mr. Gallatin in his Western Company, and, +removing to Fayette, made his home in what was later and is now known as +New Geneva. Here, in connection with Mr. Gallatin and the brothers +Kramer, Germans, he established extensive glass works, which proved +profitable. + + * * * * * + +Mr. Gallatin's election to the United States Senate did not disqualify +him for his unfinished legislative term, and, on his return to +Philadelphia, he was again plunged in his manifold duties. The few days +which intervened between his marriage and the meeting of Congress--a +short honeymoon--were spent under the roof of Commodore Nicholson in New +York. + +On February 28, 1793, the Vice-President laid before the Senate a +certificate from the legislature of the Commonwealth of Pennsylvania to +the election of Albert Gallatin as senator of the United States. Mr. +Gallatin took his seat December 2, 1793. The business of the session was +opened by the presentation of a petition signed by nineteen individuals +of Yorktown, Pennsylvania, stating that Mr. Gallatin had not been nine +years a citizen of the United States. This petition had been handed to +Robert Morris, Mr. Gallatin's colleague for Pennsylvania, by a member of +the legislature for the county of York, but he had declined to present +it, and declared to Mr. Gallatin his intention to be perfectly neutral +on the occasion--at least so Mr. Gallatin wrote to his wife the next +day; but Morris did not hold fast to this resolution, as the votes in +the sequel show. The petition was ordered to lie upon the table. On +December 11 Messrs. Rutherford, Cabot, Ellsworth, Livermore, and +Mitchell were appointed a committee to consider the petition. These +gentlemen, Gallatin wrote, were undoubtedly "the worst for him that +could have been chosen, and did not seem to him to be favorably +disposed." He himself considered the legal point involved as a nice and +difficult one, and likely to be decided by a party vote. The fourth +article of the Constitution of the first Confederation of the United +States reads as follows:-- + + "The better to secure and perpetuate mutual friendship and + intercourse among the people of the different States in this Union, + the free inhabitants of each of these States, paupers, vagabonds, + and fugitives from justice excepted, shall be entitled to all + privileges and immunities of free citizens in the several States." + +Article 1, section 3, of the new Constitution declares:-- + + "No person shall be a senator who shall not have attained to the + age of thirty years, and been nine years a citizen of the United + States, and who shall not, when elected, be an inhabitant of that + State for which he shall be chosen." + +Mr. Gallatin landed in Massachusetts in July, 1780, while still a minor. +His residence, therefore, which had been uninterrupted, extended over +thirteen years. He took the oath of citizenship and allegiance to +Virginia in October, 1785, since which, until his election in 1793, nine +years, the period called for by the United States Constitution, had not +elapsed. On the one hand, his actual residence exceeded the required +period of citizenship; on the other, his legal and technical residence +as a citizen was insufficient. In point of fact, his intention to become +a citizen dated from the summer of 1783. + +To take from the case the air of party proscription, which it was +beginning to assume, the Senate discharged its special committee, and +raised a general committee on elections to consider this and other +cases. On February 10, 1794, the report of this committee was submitted, +and a day was set for a hearing by the Senate, with open doors. On that +day Mr. Gallatin exhibited a written statement of facts, agreed to +between himself and the petitioners, and the case was left to the Senate +on its merits. On the 28th a test vote was taken upon a motion to the +effect that "Albert Gallatin, returned to this House as a member for the +State of Pennsylvania, is duly qualified for and elected to a seat in +the Senate of the United States," and it was decided in the +negative--yeas, 12; nays, 14.[2] + +Motion being made that the election of Albert Gallatin to be a senator +of the United States was void,--he not having been a citizen of the +United States for the term of years required as a qualification to be a +senator of the United States,--it was further moved to divide the +question at the word "void;" and the question being then taken on the +first paragraph, it passed in the affirmative--yeas, 14; nays, 12. The +yeas and nays were required, and the Senate divided as before. The +resolution was then put and adopted by the same vote. Thus Mr. Gallatin, +thirteen years a resident of the country, a large land-holder in +Virginia, and for several terms a member of the Pennsylvania +legislature, was excluded from a seat in the Senate of the United +States. + +Mr. Gallatin conducted his case with great dignity. On being asked +whether he had any testimony to produce, he replied, in writing, that +there was not sufficient matter charged in the petition and proved by +the testimony to vacate his seat, and declined to go to the expense of +collecting evidence until that preliminary question was settled. + +Short as the period was during which Mr. Gallatin held his seat, it was +long enough for him seriously to annoy the Federal leaders. Indeed, it +is questionable whether, if he had delayed his embarrassing motion, a +majority of the Senate could have been secured against him. Certain it +is that the Committee on Elections, appointed on December 11, did not +send in its report until the day after Mr. Gallatin moved his +resolution, calling upon the secretary of the treasury for an elaborate +statement of the debt on January 1, 1794, under distinct heads, +including the balances to creditor States, a statement of loans, +domestic and foreign, contracted from the beginning of the government, +statements of exports and imports; finally for a summary statement of +the receipts and expenditures to the last day of December, 1790, +_distinguishing the moneys received under each branch of the revenue and +the moneys expended under each of the appropriations, and stating the +balances of each branch of the revenue remaining unexpended on that +day_, and also calling for similar and separate statements for the years +1791, 1792, 1793. This resolution, introduced on January 8, was laid +over. On the 20th it was adopted. It was not until February 10 that a +reply from the secretary of the treasury was received by the Senate, and +on the 11th submitted to Gallatin, Ellsworth, and Taylor for +consideration and report. In this letter (February 6, 1794) Hamilton +stated the difficulty of supplying the precise information called for, +with the clerical forces of the department, the interruption it would +cause in the daily routine of the service, and deprecated the practice +of such unexpected demands. + +With this response of the secretary the inquiry fell to the ground, but +it was neither forgotten nor forgiven by his adherents, and Mr. Gallatin +paid the penalty on at least one occasion. This was years later, when he +himself was secretary of the treasury. On March 2, 1803, the day before +the adjournment of Congress, Mr. Griswold, Federalist from Connecticut, +attacked the correctness of the accounts of the sinking fund, and +demanded an answer to a resolution of the House on the management of +this bureau. Had such been his desire, Mr. Gallatin was foreclosed from +Hamilton's excuse. On the night of the 3d he sent in an elaborate +statement which set accusation at rest and criticism at defiance. + +Mr. Gallatin's short stay in the Senate revealed to the Federalists the +character of the man, who, disdaining the lesser flight, checked only at +the highest game. He accepted his exclusion with perfect philosophy. +Soon after the session opened he said, "My feelings cannot be much hurt +by an unfavorable decision, since having been elected is an equal proof +of the confidence the legislature of Pennsylvania reposed in me, and not +being qualified, if it is so decided, cannot be imputed to me as a +fault." His exclusion was by no means a disadvantage to him. It made +common cause of the honor of Pennsylvania and his own; it endeared him +to the Republicans of his State as a martyr to their principles. It +"secured him," to use his own words, "many staunch" friends throughout +the Union, and extended his reputation, hitherto local and confined, +over the entire land; more than all, it led him to the true field of +political contest--the House of Representatives of the people of the +United States. + +FOOTNOTES: + +[Footnote 2: The yeas and nays being required by one fifth of the +senators present, there were: _Affirmative_.--Bradley, Brown, Burr, +Butler, Edwards, Gunn, Jackson, Langdon, Martin, Monroe, Robinson, +Taylor; 12. + +_Negative_.--Bradford, Cabot, Ellsworth, Foster, Frelinghuysen, Hawkins, +Izard, King, Livermore, Mitchell, Morris, Potts, Strong, Vining; 14.] + + + + +CHAPTER IV + +THE WHISKEY INSURRECTION + + +Mr. Gallatin was now out of public life. For eighteen months since he +came up to the legislature with his friends of the Pittsburgh +convention, he had not returned to Fayette. His private concerns were +suffering in his absence. Neither his barn, his meadow, nor his house +was finished at the close of 1793. In May, 1794, he took his wife to his +country home. Their hopes of a summer of recreation and domestic comfort +in the wild beauties of the Monongahela were not to be realized. Before +the end of June the peaceful country was in a state of mad agitation. + +The seeds of political discontent, sown at Pittsburgh in 1792, had +ripened to an abundant harvest. An act passed by Congress June 5, 1794, +giving to the state courts concurrent jurisdiction in excise cases, +removed the grievance of which Gallatin complained, the dragging of +accused persons to Philadelphia for trial, but was not construed to be +retroactive in its operation. The marshal, accordingly, found it to be +his duty to serve the writs of May 31 against those who had fallen under +their penalties. These writs were returnable in Philadelphia. They were +served without trouble in Fayette County. Not so in Allegheny. Here on +July 15, 1794, the marshal had completed his service, when, while still +in the execution of his office, and in company with the inspector, he +was followed and fired upon. The next day a body of men went to the +house of the marshal and demanded that he should deliver up his +commission. They were fired upon and dispersed, six were wounded, and +the leader killed. A general rising followed. The marshal's house, +though defended by Major Kirkpatrick, with a squad from the Pittsburgh +garrison, was set on fire, with the adjacent buildings, and burned. On +July 18 the insurgents sent a deputation of two or three to Pittsburgh, +to require of the marshal a surrender of the processes in his +possession, and of the inspector the resignation of his office. These +demands were, of course, rejected; but the officers, alarmed for their +personal safety, left the town, and, descending the Ohio by boat to +Marietta, proceeded by a circuitous route to Philadelphia, and made +their report to the United States authorities. + +This was the outbreak of the Western or Whiskey Insurrection. The +excitement spread rapidly through the western counties. Fayette County +was not exempt from it. The collector's house was broken into, and his +commission taken from him by armed men; the sheriff refused to serve the +writs against the rioters of the spring. Since these disturbances there +had been no trouble in this county. But the malcontents elsewhere rose +in arms, riots ensued, and the safety of the whole community was +compromised. The news reaching Fayette, the distillers held a meeting at +Uniontown, the county seat, on July 20. Both Gallatin and Smilie were +present, and by their advice it was agreed to submit to the laws. The +neighboring counties were less fortunate. On July 21 the Washington +County committee was summoned to meet at Mingo Creek Meeting-house. On +the 23d there was a large assemblage of people, including a number of +those who had been concerned in burning the house of the Pittsburgh +inspector. James Marshall, the same who opposed the ratification of the +federal Constitution, David Bradford, the "empty drum," and Judge +Brackenridge of Pittsburgh, attended this meeting. Bradford, the most +unscrupulous of the leaders, sought to shirk his responsibility, but was +intimidated by threats, and thereafter did not dare to turn back. +Brackenridge was present to counsel the insurgents to moderation. In +spite of his efforts the meeting ended in an invitation, which the +officers had not the boldness to sign, to the townships of the four +western counties of Pennsylvania and the adjoining counties of Virginia +to send representatives to a general meeting on August 14, at +Parkinson's Ferry on the Monongahela, in Washington County. Bradford, +determined to aggravate the disturbance, stopped the mail at Greensburg, +on the road between Pittsburgh and Philadelphia, and robbed it of the +Washington and Pittsburgh letters, some of which he published, to the +alarm of their authors. + +On July 28 a circular signed by Bradford, Marshall, and others was sent +out from Cannonsburg to the militia of the county, whom it summoned for +personal service, and likewise called for volunteers to rendezvous the +following Wednesday, July 30, at their respective places of meeting, +thence to march to Braddock's Field, on the Monongahela, the usual +rendezvous of the militia, about eight miles south of Pittsburgh, by two +o'clock of Friday, August 1. It closed in these words, "Here is an +expedition proposed in which you will have an opportunity for displaying +your military talents and of rendering service to your country." Nothing +less was contemplated by the more extreme of these men than an attack +upon Fort Pitt and the sack of Pittsburgh. Thoroughly aroused at last, +the moderate men of Washington determined to breast the storm. A meeting +was held; James Ross of the United States Senate made an earnest appeal, +and was supported by Scott of the House of Representatives and Stokely +of the Senate of Pennsylvania. Marshall and Bradford yielded, and +consented to countermand the order of rendezvous. But the excited +population poured into the town from all quarters, and Bradford, who +found that he had gone too far to retreat, again took the lead of the +movement, already beyond restraint. + +There are accounts of this formidable insurrection by H. H. Brackenridge +and William Findley, eye-witnesses. These supply abundant details. +Findley says that he knew that the movement would not stop at the limit +apparently set for it. "The opposing one law would lead to oppose +another; they would finally oppose all, and demand a new modeling of the +Constitution, and there would be a revolution." There was great alarm in +Pittsburgh. A meeting was held there Thursday evening, July 31, at which +a message from the Washington County insurgents was read, violent +resolutions adopted, and the 9th of August appointed as the day for a +town meeting for election of delegates to a general convention of the +counties at Parkinson's Ferry; Judge Brackenridge of Pittsburgh, a man +of education, influence, and infinite jest and humor, was present at +this meeting. Of Scotch-Irish birth himself, his sympathies of race were +with his countrymen, but in political sentiments he was not in harmony +with their leaders. They were nearly all Republicans, while he had sided +with the Federalists in the convention which adopted the new +Constitution of the United States. He was a man of peace, and of too +much sagacity not to foresee the inevitable ruin upon which they were +rushing. At Mingo Creek he had thwarted the plans of immediate +revolution. The evident policy of moderate men was to prevent any +violence before the convention at Parkinson's Ferry should meet, and to +bend all their energies to control the deliberations of that body. The +people of Pittsburgh were intensely excited by the armed gathering +almost at their doors. + +Brackenridge felt that the only safe issue from the situation was to +take part in and shape the action of that gathering. Under his lead a +committee from the Pittsburgh meeting, followed by a large body of the +citizens, went out to the rendezvous. Here they found a motley +assemblage, arrayed in the picturesque campaign costume which the +mountaineers wore when they equipped themselves to meet the +Indians,--yellow hunting-shirts, handkerchiefs tied about their heads, +and rifles on the shoulder; the militia were on foot, and the light +horse of the counties were in military dress. Conspicuous about the +field, "haughty and pompous," as Gallatin described him in the +legislature, was David Bradford, who had assumed the office of +major-general. Brackenridge draws a lifelike picture of him as, mounted +on a superb horse in splendid trappings, arrayed in full uniform, with +plume floating in the air and sword drawn, he rode over the ground, gave +orders to the military, and harangued the multitude. On the historic +ground where Washington plucked his first military laurels were gathered +about seven thousand men, of whom two thousand militia were armed and +accoutred as for a campaign,--a formidable and remarkable assemblage, +when it is considered that the entire male population of sixteen years +of age and upwards of the four counties did not exceed sixteen +thousand, and was scattered over a wide and unsettled country. This is +Brackenridge's estimate of the numbers. Later, Gallatin, on comparison +of the best attainable information, estimated the whole body at from +fifteen hundred to two thousand men. Whatever violence Bradford may have +intended, none was accomplished. That he read aloud the Pittsburgh +letters, taken from the mail, shows his purpose to inflame the people to +vindictive violence. He was accused by contemporary authorities of +imitation of the methods of the French Jacobins, which were fresh +examples of revolutionary vigor. But the mass was not persuaded. After +desultory conversation and discussion, the angry turn of which was at +times threatening to the moderate leaders, the meeting broke up on +August 2; about one third dispersed for their homes, and the remainder, +marching to Pittsburgh, paraded through the streets, and finally +crossing the river in their turn scattered. They did no damage to the +town beyond the burning of a farm belonging to Major Kirkpatrick of the +garrison. The taverns were all closed, but the citizens brought whiskey +to their doors. Judge Brackenridge reports that his sacrifice to peace +on this occasion cost him four barrels of his best old rye. + +This moderation was no augury of permanent quiet. Brackenridge, who was +a keen observer of men, says of the temper of the western population at +this period: "I had seen the spirit which prevailed at the Stamp Act, +and at the commencement of the revolution from the government of Great +Britain, but it was by no means so general and so vigorous amongst the +common people as the spirit which now existed in the country." Nor did +the armed bands all return peaceably to their homes. The house of the +collector for Fayette and Washington counties was burned, and warnings +were given to those who were disposed to submit to the law. The +disaffected were called "Tom the tinker" men, from the signature affixed +to the threatening notices. From a passage in one of Gallatin's letters +it appears that there was a person of that name, a New England man, who +had been concerned in Shays's insurrection. Liberty poles, with the +device, "An equal tax and no excise law," were raised, and the trees +placarded with the old revolutionary motto, "United we stand, divided we +fall," with a divided snake as an emblem. Mr. Gallatin's neighborhood +was not represented at Braddock's Field, and not more than a dozen were +present from the entire county. But now the flame spread there also, and +liberty poles were raised. Mr. Gallatin himself, inquiring as to their +significance and expressing to the men engaged the hope that they would +not behave like a mob, was asked, in return, if he was not aware of the +Westmoreland resolution that any one calling the people a mob should be +tarred and feathered,--an amusing example of that mob logic which +proves the affirmative of the proposition it denies. + +Mr. Gallatin did not attend the meeting at Braddock's Field. Somewhat +isolated at his residence at the southerly border of the county, engaged +in the care of his long neglected farm, and in the full enjoyment of +release from the bustle and excitement of public life, he had paid +little attention to passing events. He was preparing definitively to +abandon political pursuits and to follow some kind of mercantile +business, or take up some land speculation and study law in his +intervals of leisure. It was not a year since he had given hostages to +fortune. He was now in the full tide of domestic happiness, which was +always to him the dearest and most coveted. He might well have hesitated +before again engaging upon the dangerous and uncertain task of +controlling an excited and aggrieved population. But he did not +hesitate. + +The people among whom he had made his home, and whose confidence had +never failed him, were his people. By them he would stand in their +extremity, and if hurt or ruin befell them, it should not be for want of +the interposition of his counsel. He knew his powers, and he determined +to bring them into full play. He knew the danger also, but it only +nerved him to confront and master it. He knew his duty, and did not +swerve one hair from the line it prompted. In no part of his long, +varied, and useful political life does he appear to better advantage +than in this exciting episode of the Whiskey Insurrection. His +self-possession, his cool judgment, swayed neither by timidity nor +rashness, never for a moment failed him. Here he displayed that +remarkable combination of persuasion and control,--the indispensable +equipment of a political chief,--which, in later days, gave him the +leadership of the Republican party. With intuitive perception of the +political situation he saw that the only path to safety, beset with +difficulty and danger though it were, was through the convention at +Parkinson's Ferry. He did not believe that any revolutionary proceedings +had yet been taken, or that the convention was an illegal body, but he +was determined to separate the wheat from the chaff, and disengage the +moderate and the law-abiding from the disorderly. By the light of his +own experience he had learned wisdom. He also had drawn a lesson from +the French Revolution, and knew the uncontrollable nature of large +popular assemblages. The news from Philadelphia, the seat of government, +was of a kind to increase his alarm. Washington was not the man to +overlook such an insult to authority as the resistance to the marshal +and inspector; nor was it probable that Hamilton would let pass such an +occasion for showing the strength and vigor of the government. + +Before the meeting at Braddock's Field, the secretary's plans for a +suppression of the insurrection were matured. On August 2 he laid +before the President an estimate of the probable armed force of the +insurgents, and of that with which he proposed to reduce them to +submission. When the question of the use of force came before the +cabinet, Edmund Randolph, who was secretary of state, opposed it in a +written opinion, one phrase of which deserves repetition:-- + + "It is a fact well known that the parties in the United States are + highly inflamed against each other, and that there is but one + character which keeps both in awe. As soon as the sword shall be + drawn, who shall be able to retain them." + +Mifflin, the governor of Pennsylvania, deprecated immediate resort to +force; the venerable Chief Justice McKean suggested the sending of +commissioners on the part of the federal and state governments. +Washington, with perfect judgment, combined these plans, and happily +allied conciliation with force. A proclamation was issued on August 7 +summoning all persons involved in the disturbance to lay down their arms +and repair to their homes by September 1. Requisitions were made upon +the governors of Pennsylvania, Maryland, Virginia, and New Jersey for +fifteen thousand men in all, and a joint commission of five was +raised,--three of whom on the part of the United States were appointed +by the President, and two on the part of the State of Pennsylvania. This +news was soon known at Pittsburgh, and rapidly spread through the +adjacent country; and it was clear that in the proceedings to be taken +at Parkinson's Ferry the question of resistance or submission must be +definitively settled. On August 14, 1794, the convention assembled; two +hundred and twenty-six delegates in all, of whom ninety-three were from +Washington, forty-nine from Westmoreland, forty-three from Allegheny, +thirty-three from Fayette, two from Bedford, five from Ohio County in +Virginia, with spectators to about the same number. + +Parkinson's Ferry, later called Williamsport, and now Monongahela City, +is on the left bank of the Monongahela, about half way between +Pittsburgh and Red Stone Old Fort or Brownsville. Brackenridge pictures +the scene with his usual local color: "Our hall was a grove, and we +might well be called 'the Mountain' (an allusion to the radical left of +the French convention), for we were on a very lofty ground overlooking +the river. We had a gallery of lying timber and stumps, and there were +more people collected there than there was of the committee." In full +view of the meeting stood a liberty pole, raised in the morning by the +men who signed the Braddock's Field circular order, and it bore the +significant motto, "Liberty and no excise and no asylum for cowards." +Among the delegates, or the committee, to use their own term, were +Bradford, Marshall, Brackenridge, Findley, and Gallatin. Before the +meeting was organized, Marshall came to Gallatin and showed him the +resolutions which he intended to move, intimating at the same time that +he wished Mr. Gallatin to act as secretary. Mr. Gallatin told him that +he highly disapproved the resolutions, and had come to oppose both him +and Bradford, and therefore did not wish to serve. Marshall seemed to +waver; but soon the people met, and Edward Cook of Fayette, who had +presided at Braddock's Field, was chosen chairman, with Gallatin for +secretary. Bradford opened the proceedings with a summary sketch of the +action previously taken, declared the purpose of the committee to be to +determine on a course of action, and his own views to be the appointment +of committees to raise money, purchase arms, enlist volunteers, or draft +the militia: in a word, though he did not use it, to levy war. + +At this point in the proceedings the arrival of the commissioners from +the President was announced, but the progress of the meeting was not +interrupted. The commissioners were at a house near the meeting, but +there were serious objections against holding a conference at this +place. + +Marshall then moved his resolutions. The first, declaratory of the +grievance of carrying citizens great distances for trial, was +unanimously agreed to. The second called for a committee of public +safety "to call forth the resources of the western country to repel any +hostile attempts that may be made against the rights of the citizens, or +of the body of the people." Had this resolution been adopted, the people +were definitively committed to overt rebellion. This brought Mr. +Gallatin at once to his feet. He denied that any hostile attempts +against the rights of the people were threatened, and drew an adroit +distinction between the regular army, which had not been called out, and +the militia, who were a part of the people themselves; and to gain time +he moved a reference of the resolutions to a committee who should be +instructed to wait the action of the government. In the course of his +speech Gallatin denied the assertion that resistance to the excise law +was legal, or that coercion by the government was necessarily hostile. +He was neither supported by his own friends nor opposed by those of +Bradford. He stood alone. + +But Marshall withdrew his resolution, and a committee of sixty was +appointed, with power to summon the people. The only other objectionable +resolution was that which pledged the people to the support of the laws, +except the excise law and the taking of citizens out of their counties +for trial,--an exception which Gallatin succeeded in having stricken +out. He then urged the adoption of the resolution, without the +exception, as necessary "to the establishment of the laws and the +conservation of the peace," and here he was supported by Brackenridge. +The entire resolutions were finally referred to a committee of +four,--Gallatin, Bradford, Husbands, and Brackenridge. The meeting then +adjourned. The next morning a standing committee of sixty was chosen, +one from each township. From these a committee of twelve was selected +to confer with the government commissioners. Upon this committee were +Cook, the chairman, Bradford, Marshall, Gallatin, Brackenridge, and +Edgar. The meeting then adjourned. + +Upon this representative body there seems to have been no outside +pressure. The proclamation of the President, which arrived while it was +in session, showed the determination, while the appointment of the +commission showed the moderation, of the government. Gallatin availed of +each circumstance with consummate adroitness, pointing out to the +desperate the folly of resistance, and to the moderate an issue for +honorable retreat. + +Meanwhile, the commissioners reached Pittsburgh, where on August 20 the +committee of conference was received by them, and an informal +understanding arrived at, which was put in writing. The laws were to be +enforced with as little inconvenience to the people as possible. All +criminal suits for indictable offenses were to be dropped, but civil +suits were to take their course. Notice was given that a definitive +submission must be made by September 1 following. On the 22d the +conference committee answered that they must consult with the committee +of sixty. Thursday the 28th was appointed for a meeting at Red Stone Old +Fort, the very spot where the original resolutions of opposition were +passed in 1791. In the report drawn up every member of the twelve, +except Bradford, favored submission. + +The hour was critical, the deliberations were in the open air, and under +the eyes of a threatening party of seventy riflemen accidentally present +from Washington County across the stream. Bradford, who instinctively +felt that he had placed himself beyond the pale of pardon, and to whom +there was no alternative to revolution but flight, pressed an instant +decision and rejection of the written terms of the commissioners. In the +presence of personal danger, the conferrees only dared to move that part +of their report which advised acceptance of the proffered terms. The +question of submission they left untouched. An adjournment was obtained. +The next day, to quote the words of Brackenridge, "the committee having +convened, Gallatin addressed the chair in a speech of some hours. It was +a piece of perfect eloquence, and was heard with attention and without +disturbance." Never was there a more striking instance of intellectual +control over a popular assemblage. He saved the western counties of +Pennsylvania from anarchy and civil war. He was followed by +Brackenridge, who, warned by the example of his companion, or encouraged +by the quiet of the assemblage, supported him with vigor. Bradford, on +the other hand, faced the issue with directness and savage vehemence. He +repelled the idea of submission, and insisted upon an independent +government and a declaration of war. Edgar of Washington rejoined in +support of the report. Gallatin now demanded a vote, but the twelve +conferrees alone supported him. He then proposed an informal vote, but +without result. Finally a secret ballot was proposed by a member. A hat +was passed, and when the slips of paper were taken out, there were +thirty-four yeas and twenty-three nays. The report was declared to be +adopted, and amid the scowls of the armed witnesses the meeting +adjourned; not, however, before a new committee of conference had been +appointed. On this new committee not one of the old leaders was named. +They evidently knew the folly of further delay, or of attempting to +secure better terms. As his final act Colonel Cook, the chairman of the +standing committee of sixty, indorsed the resolution adopted. It +declared it to be "to the interest of the people of the country to +accede to the proposals made by the commissioners on the part of the +United States." This was duly forwarded, with request for a further +conference. The commissioners consented, but declined to postpone the +time of taking the sense of the people beyond September 11. + +William Findley said of the famous and critical debate at Red Stone: "I +had never heard speeches that I more ardently desired to see in print +than those delivered on this occasion. They would not only be valuable +on account of the oratory and information displayed in all the three, +and especially in Gallatin's, who opened the way, but they would also +have been the best history of the spirit and the mistakes which then +actuated men's minds." Findley, in his allotment of the honors of the +day, considers that "the verbal alterations made by Gallatin saved the +question." Brackenridge thought that his own seeming to coincide with +Bradford prevented the declaration of war; and he has been credited with +having saved the western counties from the horrors of civil war, +Pittsburgh from destruction, and the Federal Union from imminent danger. + +Historians have agreed in according to Gallatin the honor of this field +day. It was left to John C. Hamilton, half a century later, to charge a +want of courage upon Gallatin,--a baseless charge.[3] Not Malesherbes, +the noble advocate defending the accused monarch before the angry French +convention, with the certainty of the guillotine as the reward of his +generosity, is more worthy of admiration than Gallatin boldly pleading +the cause of order within rifle range of an excited band of lawless +frontiersmen. If, as he confessed later, in his part in the Pittsburgh +resolutions he was guilty of "a political sin," he nobly atoned for it +under circumstances that would have tried the courage of men bred to +danger and to arms. Sin it was, and its consequences were not yet summed +up. For although the back of the insurrection was broken at Red Stone +Old Fort, there was much yet to be done before submission could be +completed. + +Bradford attempted to sign, but found that his course at Red Stone Old +Fort had placed him outside the amnesty. Well might the moderate men say +in their familiar manner of Scripture allusion, "Dagon is fallen." He +fled down the Ohio and Mississippi to Louisiana, then foreign soil. The +commissioners waited at Pittsburgh for the signatures of adhesion on +September 10, which was the last day allowed by the terms of amnesty. +They required that meetings should be held on this day in the several +townships; the presiding officers to report the result to commissioner +Ross at Uniontown the 16th of the same month, on which day he would set +out for Philadelphia. The time was inadequate, but there was no help. +Gallatin hastened the submission of Fayette, and a meeting of committees +from the several townships met at the county seat, Uniontown, on +September 10, 1794, when a declaration drawn by Mr. Gallatin was +unanimously adopted. A passage in this admirable paper shows the +comparative order which prevailed in Fayette County during this period +of trouble. It is an appeal to the people of the neighboring counties, +who, under the influence of their passions and resentment, might blame +those of Fayette for their moderation. + + "The only reflection we mean to suggest to them is the + disinterestedness of our conduct upon this occasion. The indictable + offences to be buried in oblivion were committed amongst them, and + almost every civil suit that has been instituted under the revenue + law, in the federal court, was commenced against citizens of this + county. By the terms proposed, the criminal prosecutions are to be + dropped, but no condition could be obtained for the civil suits. We + have been instrumental in obtaining an amnesty, from which those + alone who had a share in the riots derive a benefit, and the other + inhabitants of the western country have gained nothing for + themselves." + +This declaration was forwarded on September 17 to Governor Mifflin, with +reasons for the delay, and advice that signatures were fast being +obtained, not only in the neighboring counties, but even in Fayette, +where this formality had not been thought necessary. It closes with a +forcible appeal to delay the sending of troops until every conciliatory +measure should have proved abortive. + +But the commissioners, unfortunately, were not favorably impressed with +the reception they met with or the scenes they witnessed on their +western mission. They had heard of Bradford's threat to establish an +independent government west of the mountains, and they had seen a +liberty pole raised upon which the people with the greatest difficulty +had been dissuaded from hoisting a flag with six stripes--emblematic of +the six counties represented in the committee. The flag was made, but +set aside for the fifteen stripes with reluctance. This is Findley's +recollection, but Brackenridge says that it was a flag of seven stars +for the four western counties, Bedford, and the two counties of +Virginia. This, he adds, was the first and only manifestation among any +class of a desire to separate from the Union. But here his memory +failed him. + +Hamilton had long been impatient. Again, as in old days, he presented +his arguments directly to the people. Under the heading, "Tully to the +people of the United States," he printed a letter on August 26, of which +the following is a passage:-- + + "Your representatives in Congress, pursuant to the commission + derived from you, and with a full knowledge of the public + exigencies, have laid an excise. At three succeeding sessions they + have revised that act ... and _you_ have actually paid more than a + million of dollars on account of it. But the four western counties + of Pennsylvania undertake to rejudge and reverse your decrees. + _You_ have said, 'The Congress _shall have power_ to lay + _excises_.' They say, 'The Congress shall _not have_ this power;' + or, what is equivalent, they shall not exercise it, for a _power_ + that may not be exercised is a nullity. Your representatives have + said, and four times repeated it, 'An excise on distilled spirits + _shall_ be collected;' they say, 'It _shall not_ be collected. We + will punish, expel, and banish the officers who shall attempt the + collection.'" + +The peace commissioners returned to Philadelphia and made their report +on September 24. The next day, September 25, Washington issued a +proclamation calling out the troops. In it he again warned the +insurgents. The militia, already armed, accoutred, and equipped, and +awaiting marching orders, moved at once. Governor Mifflin at first +hesitated about his power to call out the militia, but when the +President's requisition was made, he summoned the legislature in special +session, and obtained from it a hearty support, with authority to accept +volunteers and offer a bounty. Thus fortified, he made a tour through +the lower counties of the State, and by his extraordinary popular +eloquence soon filled up the ranks. The old soldier led his troops in +person. Those of New Jersey were commanded by their governor, Richard +Howell of Revolutionary fame. These formed the right wing and marched to +rendezvous at Bedford to cross the mountains by the northern and +Pennsylvania route. The left wing, composed of the Virginia troops, +under the veteran Morgan, and those of Maryland, under Samuel Smith, a +brigadier-general in the army of the Revolution, assembled at Cumberland +to cross the mountains by Braddock's Road. The chief command was +confided to Governor Henry Lee of Virginia. Washington accompanied the +army as far as Bedford. Hamilton continued with it to Pittsburgh, which +was reached in the last days of October and the first of November, after +a wearisome march across the mountains in heavy weather. Arrived in the +western counties, the army found no opposition. + +Meanwhile, on October 2, the standing committee met again at Parkinson's +Ferry, and unanimously adopted resolutions declaring the general +submission, and explaining the reasons why signatures to the amnesty had +not been general. Findley and Redick were appointed to take these +resolutions to the President, and to urge him to stop the march of the +troops. They met the left wing at Carlisle. Washington received them +courteously, but did not consent to countermand the march. They hurried +back for more unequivocal assurances, which they hoped to be able to +carry to meet Washington on his way to review the right wing. On October +14, the day of the autumn elections, general submissions were +universally signed, and finally, on October 24, a third and last meeting +was held at Parkinson's Ferry, at which a thousand people attended, +when, with James Edgar, chairman, and Albert Gallatin, secretary, it was +resolved, first, that the civil authority was fully competent to punish +both past and future breaches of the law; secondly, that surrender +should be made of all persons charged with offenses, in default of which +the committee would aid in bringing them to justice; thirdly, that +offices of inspection might be opened, and that the distillers were +willing and ready to enter their stills. + +These resolutions were published in the "Pittsburgh Gazette." Findley +carried them to Bedford, but before he reached the army the President +had returned to Philadelphia. The march of the army was not stopped. The +two wings made a junction at Uniontown. Companies of horse were +scattered through the country. New submissions were made, and the oath +of allegiance, required by General Lee, was generally taken. + +Hamilton now investigated the whole matter of the insurrection, and it +was charged against him, and the charge is supported by Findley, with +names of persons, that he spared no effort to secure evidence to bring +Gallatin within the pale of an indictment. Of course he failed in this +purpose, if indeed it were ever seriously entertained. But the belief +that Gallatin was the arch-fiend, who instigated the Whiskey +Insurrection, had already become a settled article in the Federalist +creed, and for a quarter of a century, long after the Federalist party +had become a tradition of the past, the Genevan was held up to scorn and +hatred, as an incarnation of deviltry--an enemy of mankind. + +On the 8th of November, Hamilton, who remained with the army, wrote to +the President that General Lee had concluded to take hold of all who are +worth the trouble by the military arm, and then to deliver them over to +the disposition of the judiciary. In the mean time, he adds, "all +possible means are using to obtain evidence, and accomplices will be +turned against the others." + +The night of November 13, 1794, was appointed for the arrests; a +dreadful night Findley describes it to have been. The night was frosty; +at eight o'clock the horse sallied forth, and before daylight arrested +in their beds about two hundred men. The New Jersey horse made the +seizures in the Mingo Creek settlement, the hot-bed of the insurrection +and the scene of the early excesses. The prisoners were taken to +Pittsburgh, and thence, mounted on horses, and guarded by the +Philadelphia Gentlemen Corps, to the capital. Their entrance into +Cannonsburg is graphically described by Dr. Carnahan, president of +Princeton College, in his account of the insurrection. + + "The contrast between the Philadelphia horsemen and the prisoners + was the most striking that can be imagined. The Philadelphians were + some of the most wealthy and respectable men of that city. Their + uniform was blue, of the finest broadcloth. Their horses were large + and beautiful, all of a bay color, so nearly alike that it seemed + that every two of them would make a good span of coach horses. + Their trappings were superb. Their bridles, stirrups, and + martingales glittered with silver. Their swords, which were drawn, + and held elevated in the right hand, gleamed in the rays of the + setting sun. The prisoners were also mounted on horses of all + shapes, sizes, and colors; some large, some small, some long tails, + some short, some fat, some lean, some every color and form that can + be named. Some had saddles, some blankets, some bridles, some + halters, some with stirrups, some with none. The riders also were + various and grotesque in their appearance. Some were old, some + young, some hale, respectable looking men; others were pale, + meagre, and shabbily dressed. Some had great coats,--others had + blankets on their shoulders. The countenance of some was downcast, + melancholy, dejected; that of others, stern, indignant, manifesting + that they thought themselves undeserving such treatment. Two + Philadelphia horsemen rode in front and then two prisoners, and two + horsemen and two prisoners, actually throughout a line extending + perhaps half a mile.... If these men had been the ones chiefly + guilty of the disturbance, it would have been no more than they + deserved. But the guilty had signed the amnesty, or had left the + county before the army approached." + +Dallas, the secretary of state, Gallatin's friend, was one of this +troop. Gallatin saw him soon after his return. In a letter to his wife +of December 3, Gallatin relates the experience of the trooper who had +little stomach for the work he had to do. + + "I saw Dallas yesterday. Poor fellow had a most disagreeable + campaign of it. He says the spirits, I call it the madness, of the + Philadelphia Gentlemen's Corps was beyond conception before the + arrival of the President. He saw a list (handed about through the + army by officers, nay, by a general officer) of the names of those + persons who were to be destroyed at all events, and you may easily + guess my own was one of the most conspicuous. Being one day at + table with sundry officers, and having expressed his opinion that, + if the army were going only to support the civil authority, and not + to do any military execution, one of them (Dallas did not tell me + his name, but I am told it was one Ross of Lancaster, aide-de-camp + to Mifflin) half drew a dagger he wore instead of a sword, and + swore any man who uttered such sentiments ought to be dagged. The + President, however, on his arrival, and afterwards Hamilton, took + uncommon pains to change the sentiments, and at last it became + fashionable to adopt, or at least to express, sentiments similar to + those inculcated by them." + +Randolph was, perhaps, not far out of the way in his fear of a civil war +should blood be drawn, and in his conviction that the influence of +Washington was the only sedative for the fevered political pulse. On +November 17 general orders were issued for the return of the army, a +detachment of twenty-five hundred men only remaining in the West, under +command of General Morgan. There were no further disturbances. The army +expenses gave a circulating medium, and the farmers, having now the +means to pay their taxes, made no further complaints of the excise law. +The total expense of the insurrection to the government was $800,000. + +Mr. Gallatin returned with his wife from his western home early in +November. He had been again chosen at the October elections to represent +Fayette in the Pennsylvania Assembly. Moreover, at the same time, he was +elected to represent the congressional district of Washington and +Allegheny in the House of Representatives of the United States. Of four +candidates Gallatin led the poll. Judge Brackenridge was next in order. +No better proof is needed of the firm hold Gallatin had in the esteem +and affection of the people. No doubt, either, that they understood his +principles, and relied upon his sincere attachment to the country he had +made his home. + +When he appeared to take his seat in the Assembly he found that his +election was contested. A petition was presented from thirty-four +persons calling themselves peaceable citizens of Washington County, +which stated that their votes had not been cast, because of the +disturbed condition of the country, and requested the Assembly to +declare the district to have been in a state of insurrection at the time +of the election, and to vacate the same. Mr. Gallatin knew the person +who procured the signatures, and also that the business originated in +the army. It was couched in terms insulting to all the members elect +from that district. After a protracted debate the election was declared +void on January 9, 1795. It was during this debate that Mr. Gallatin +made the celebrated speech called "The speech on the western elections," +in which occurs the confession already alluded to. Speaking of the +Pittsburgh resolutions of 1792, he said:-- + + "I might say that those resolutions did not originate at + Pittsburgh, as they were almost a transcript of the resolutions + adopted at Washington the preceding year; and I might even add that + they were not introduced by me at the meeting. But I wish not to + exculpate myself where I feel I have been to blame. The sentiments + thus expressed were not illegal or criminal; yet I will freely + acknowledge that they were violent, intemperate, and reprehensible. + For, by attempting to render the office contemptible, they tended + to diminish that respect for the execution of the laws which is + essential to the maintenance of a free government; but whilst I + feel regret at the remembrance, though no hesitation in this open + confession of that _my only political sin_, let me add that the + blame ought to fall where it is deserved." + +This was the first speech of Gallatin that appeared in print--simple, +lucid, convincing. The result of the new Assembly election would +naturally determine the right of the representatives of the contested +district to their seats in Congress. Word had gone forth from the +Treasury Department that Gallatin must not take his seat in Congress, +and the whippers-in took heed of the desire of their chief. A line of +instruction to Badollet, who lived at Greensburg in Washington County, +across the river from Gallatin's residence, determined the matter. +Gallatin warned him against the attempt that would be made to disaffect +that district because none of the representatives whose seats had been +vacated were residents of it. "Fall not into the snare," he wrote; "take +up nobody from your own district; reëlect unanimously the same members, +whether they be your favorites or not. It is necessary for the sake of +our general character." Here is an instance of that true political +instinct which made of him "the ideal party leader." His advice was +followed, and all the members were reëlected but one, who declined. Mr. +Gallatin returned to his seat in the Assembly on February 14, and +retained it until March 12, when he asked and obtained leave of absence. +He does not appear to have taken further part in the session. The +subjects, personal to himself, which occupied his attention during the +summer will be touched upon elsewhere. + +The pitiful business of the trial of the western prisoners needs only +brief mention. In May Gallatin was summoned before the grand jury as a +witness on the part of the government. The inquiry was finished May 12, +and twenty-two bills were found for treason. Against Fayette two bills +were found; one for misdemeanor in raising the liberty pole in +Uniontown. The petit jury was composed of twelve men from each of the +counties of Fayette, Washington, Allegheny, and Northumberland, but none +from Westmoreland. One man, a German from Westmoreland, who was +concerned in a riot in Fayette, was found guilty and condemned to death. +Mr. Gallatin, at the request of the jury, drew a petition to the +President, who granted a pardon. Washington extended mercy to the only +other offender who incurred the same penalty. + +To the close of this national episode, which, in its various phases of +incident and character, is of dramatic interest, Gallatin, through good +repute and ill repute, stood manfully by his constituents and friends. + +FOOTNOTES: + +[Footnote 3: Hamilton's _History of the Republic_, vi. 96.] + + + + +CHAPTER V + +MEMBER OF CONGRESS + + +The first session of the fourth Congress began at Philadelphia on +Monday, December 7, 1795. Washington was president, John Adams +vice-president. No one of Washington's original constitutional advisers +remained in his cabinet. Jefferson retired from the State Department at +the beginning of the first session of the third Congress. Edmund +Randolph, appointed in his place, resigned in a cloud of obloquy on +August 19, 1795, and the portfolio was temporarily in charge of Timothy +Pickering, secretary of war. Hamilton resigned the department of the +Treasury on January 31, 1795, and Oliver Wolcott, Jr., succeeded him in +that most important of the early offices of the government. General +Henry Knox, the first secretary of war, pressed by his own private +affairs and the interests of a large family, withdrew on December 28, +1794, and Timothy Pickering, the postmaster-general, had been appointed +in his stead January 2, 1795. The Navy Department was not as yet +established (the act creating it was passed April 30, 1798), but the +affairs which concerned this branch of the public service were under +the direction of the secretary of war. The administration of Washington +was drawing to a close. In the lately reconstructed cabinet, honest, +patriotic, and thorough in administration, there was no man of shining +mark. The Senate was still in the hands of the Federal party. The bare +majority which rejected Gallatin in the previous Congress had increased +to a sufficient strength for party purposes, but neither in the ranks of +the administration nor the opposition was there in this august +assemblage one commanding figure. + +The House was nearly equally divided. The post of speaker was warmly +contested. Frederick A. Muhlenberg of Pennsylvania, who had presided +over the House at the sessions of the first Congress, 1789-1791, and +again over the third, 1793-1795, was the candidate of the Federalists, +but was defeated by Jonathan Dayton of New Jersey, whose views in the +last session had drifted him into sympathy with the Republican +opposition. The House, when full, numbered one hundred and five members, +among whom were the ablest men in the country, veterans of debate versed +in parliamentary law and skilled in the niceties of party fence. In the +Federal ranks, active, conscious of their power, and proud of the great +party which gloried in Washington as their chief, were Robert Goodloe +Harper of South Carolina, Theodore Sedgwick of Massachusetts, Roger +Griswold and Uriah Tracy of Connecticut, who led the front and held the +wings of debate; while in reserve, broken in health but still in the +prime of life, the pride of his party and of the House, was Fisher Ames, +the orator of his day, whose magic tones held friend and foe in rapt +attention, while he mastered the reason or touched the heart. Upon these +men the Federal party relied for the vindication of their principles and +the maintenance of their power. Supporting them were William Vans Murray +of Maryland, Goodrich and Hillhouse of Connecticut, William Smith of +South Carolina, Sitgreaves of Pennsylvania, and in the ranks a +well-trained party. Opposed to this formidable array of Federal talent +was the Republican party, young, vigorous, and in majority, bold in +their ideas but as yet hesitating in purpose under the controlling if +not overruling influence of the name and popularity of Washington. + +[Illustration: Rob. G. Harper] + +Hamilton watched the shifting fortunes of his party from a distance, and +found time in the pressure of a large legal practice to aid each branch +of administration in turn with his advice. But though he still inspired +its councils, he no longer directed its course. In his Monticello home +Jefferson waited till the fruit was ripe for falling, occasionally +impatient that his followers did not more roughly shake the tree. + +The open rupture of Jefferson with Hamilton was the first great break in +the Federal administration; the lukewarmness of Madison, whose leanings +were always towards Jefferson, followed. + +At the head of the Republican opposition was Madison. Wise in council, +convincing in argument, an able and even adroit debater, he was an +admirable leader, but his tactics were rather of the closet than the +field. He was wanting in the personal vigor which, scorning defense, +delights in bold attack upon the central position of the enemy, and +carries opposition to the last limit of parliamentary aggression. With +this mildness of character, though recognized as the leader of his +party, he, as a habit, waived his control upon the floor of the House, +and, reserving his interference for occasions when questions of +constitutional interpretation arose, left the general direction of +debate to William B. Giles of Virginia, a skillful tactician and a ready +debater, keen, bold, and troubled by no scruples of modesty, respect, or +reverence for friend or foe. Of equal vigor, but of more reserve, was +John Nicholas of Virginia--a man of strong intellect, reliable temper, +and with the dignity of the old school. To these were now added Albert +Gallatin and Edward Livingston. Edward Livingston, from New York, was +young, and as yet inexperienced in debate, but of remarkable powers. He +was another example of that early intellectual maturity which was a +characteristic of the time. + +When Congress met, the all-disturbing question was the foreign policy of +the United States. The influence of the French Revolution upon American +politics was great. The Federalists, conservative in their views, held +the new democratic doctrines in abhorrence, and used the terrible +excesses of the French Revolution with telling force against their +Republican adversaries. The need of a strong government was held up as +the only alternative to anarchy. In the struggle which now united Europe +against the French republic, the sympathies of the Federalists were with +England. Hence they were accused of a desire to establish a monarchy in +the United States, and were ignominiously called the British party. +Shays's Rebellion in Massachusetts and the Whiskey Insurrection in +Pennsylvania gave point to their arguments. + +On the other side was the large and powerful party which, throughout the +war in the Continental Congress, under the confederation in the national +convention which framed and in the state conventions which ratified the +Constitution, had opposed the tendency to centralization, but had been +defeated by the yearning of the body of the plain people for a +government strong enough at least to secure them peace at home and +protection abroad. This natural craving being satisfied, the old +aversion to class distinctions returned. The dread of an aristocracy, +which did not exist even in name, threw many of the supporters of the +Constitution into the ranks of its opponents, who were democrats in name +and in fact. The proclamation of the rights of man awoke this latent +sentiment, and aroused an intense sympathy for the people of France. +This again was strengthened by the memory, still warm, of the services +of France in the cause of independence. Lafayette, who represented the +true French republican spirit, and held a place in the affections of the +American people second only to that of Washington, was languishing, a +prisoner to the coalition of sovereigns, in an Austrian dungeon. + +Jefferson returned from France deeply imbued with the spirit of the +French Revolution. His views were warmly received by his political +friends, and the principles of the new school of politics were rapidly +spread by an eager band of acolytes, whose ranks were recruited until +the feeble opposition became a powerful party. Democratic societies, +organized on the plan of the French Jacobin clubs, extended French +influence, and no doubt were aided in a practical way by Genet, whose +recent marriage with the daughter of George Clinton, the head of the +Republican party in New York, was an additional link in the bond of +alliance. + +During the second session of the third Congress Madison had led the +opposition in a mild manner; party lines were not yet strongly defined, +and the influence of Washington was paramount. In the interim between +its expiration and the meeting of the fourth Congress in December, the +country was wildly agitated by the Jay treaty. This document not +reaching America until after the adjournment of Congress in March, +Washington convened the Senate in extra and secret session on June 1, +and the treaty was ratified by barely two thirds majority. Imprudently +withheld for a time, it was at last made public by Senator Mason of +Virginia, one of the ten who voted against its ratification. It +disappointed the people, and was denounced as a weak and ignominious +surrender of American rights. The merchants of Boston, New York, +Philadelphia, and Charleston protested against it in public meetings. It +was burned, and the English flag was trailed in the dust before the +British minister's house at the capital. Jay was hung in effigy, and +Hamilton, who ventured to defend the treaty at a public meeting, was +stoned. To add to the popular indignation that the impressment of +American seamen had been ignored in the instrument, came the alarming +news that the British ministry had renewed their order to seize vessels +carrying provisions to France, whither a large part of the American +grain crop was destined. On the other hand, Randolph, the secretary of +state, had compromised the dignity of his official position in his +intercourse with Fauchet, the late French ambassador, whose +correspondence with his government, thrown overboard from a French +packet, had been fished up by a British man-of-war, and forwarded to +Grenville, by whom it was returned to America. Thus petard answered +petard, and the charge by the Republicans upon the Federalists of taking +British gold was returned with interest, and the accusation of receiving +bribe money was brought close home to Randolph, if not proved. + +Hard names were not wanting either; Jefferson was ridiculed as a +_sans-culotte_ and red-legged Democrat. Nor was Washington spared. He +was charged with an assumption of royal airs, with political hypocrisy, +and even with being a public defaulter; a charge which no one dared to +father, and which was instantly shown to be false and malicious. It was +made by Bache in "The Aurora," a contemptible sheet after the fashion of +"L'Ami du Peuple," Marat's Paris organ. + +Such was the temper of the people when the House of Representatives met +on December 7, 1795. The speaker, Dayton, was strongly anti-British in +feeling. He was a family connection of Burr, but there is no reason to +suppose that he was under the personal influence of that adroit and +unscrupulous partisan. On the 8th President Washington, according to his +custom, addressed both houses of Congress. This day for the first time +the gallery was thrown open to the public. When the reply of the Senate +came up for consideration, the purpose of the Republicans was at once +manifest. They would not consent to the approbation it expressed of the +conduct of the administration. They would not admit that the causes of +external discord had been extinguished "on terms consistent with our +national honor and safety," or indeed extinguished at all, and they +would not acknowledge that the efforts of the President to establish the +peace, freedom, and prosperity of the country had been "enlightened and +firm." Nevertheless the address was agreed to by a vote of 14 to 8. + +In the House a resolution was moved that a respectful address ought to +be presented. The opposition immediately declared itself. Objection was +made to an address, and in its stead the appointment of a committee to +wait personally on the President was moved. The covert intent was +apparent through the thin veil of expediency, but the Republicans as a +body were unwilling to go this length in discourtesy, and did not +support the motion. Only eighteen members voted for it. Messrs. Madison, +Sedgwick, and Sitgreaves, the committee to report an address, brought in +a draft on the 14th which was ordered to be printed for the use of the +members. The next day the work of dissection was begun by an objection +to the words "probably unequaled spectacle of national happiness" +applied to the country, and the words "undiminished confidence" applied +to the President. The words "probably unequaled" were stricken out +without decided opposition by a vote of forty-three to thirty-nine. +Opinions were divided on that subject even in the ranks of the +Federalists. The cause of dissatisfaction was the Jay treaty. The +address was recommitted without a division. The next day Madison brought +in the address with a modification of the clause objected to. In its new +form the "very great share" of Washington's zealous and faithful +services in securing the national happiness was acknowledged. The +address thus amended was unanimously adopted. In this encounter nothing +was gained by the Republicans. The people would not have endured an open +declaration of want of confidence in Washington. But the entering wedge +of the new policy was driven. The treaty was to be assailed. It was, +however, the pretext, not the cause of the struggle, the real object of +which was to extend the powers of the House, and subordinate the +executive to its will. Before beginning the main attack the Republicans +developed their general plan in their treatment of secondary issues; of +these the principal was a tightening of the control of the House over +the Treasury Department. + +In this Mr. Gallatin took the lead. His first measure was the +appointment of a standing Committee of Finance to superintend the +general operations of this nature,--an efficient aid to the Treasury +when there is accord between the administration and the House, an +annoying censor when the latter is in opposition. This was the beginning +of the Ways and Means Committee, which soon became and has since +continued to be the most important committee of the House. To it were to +be referred all reports from the Treasury Department, all propositions +relating to revenue, and it was to report on the state of the public +debt, revenue, and expenditures. The committee was appointed without +opposition. It consisted of fourteen members, William Smith, Sedgwick, +Madison, Baldwin, Gallatin, Bourne, Gilman, Murray, Buck, Gilbert, +Isaac Smith, Blount, Patten, and Hillhouse, and represented the strength +of both political parties. To this committee the estimates of +appropriations for the support of the government for the coming year +were referred. The next step was to bring to the knowledge of the House +the precise condition of the Treasury. To this end the secretary was +called upon to furnish comparative views of the commerce and tonnage of +the country for every year from the formation of the department in 1789, +with tables of the exports and imports, foreign and domestic, separately +stated, and with a division of the nationality of the carrying vessels. +Later, comparative views were demanded of the receipts and expenditures +for each year; the receipts under the heads of Loans, Revenue in its +various forms, and others in their several divisions; the expenditures, +also, to be classified under the heads of Civil List, Foreign +Intercourse, Military Establishment, Indian Department, Naval, etc. +Finally a call was made for a statement of the annual appropriations and +the applications of them by the Treasury. The object of Mr. Gallatin was +to establish the expenses of the government in each department of +service on a permanent footing for which annual appropriations should be +made, and for any extraordinary expenditure to insist on a special +appropriation for the stated object and none other. By keeping +constantly before the House this distinction between the permanent fund +and temporary exigencies, he accustomed it to take a practical business +view of its legislative duties, and the people to understand the +principles he endeavored to apply. + +In a debate at the beginning of the session, on a bill for establishing +trading houses with the Indians, Mr. Gallatin showed his hand by +declaring that he would not consent to appropriate any part of the war +funds for the scheme; nor, in view of the need of additional permanent +funds for the discharge of the public debt, would he vote for the bill +at all, unless there was to be a reduction in the expense of the +military establishment; and he would not be diverted from his purpose +although Mr. Madison advocated the bill because of its extremely +benevolent object. The Federal leaders saw clearly to what this doctrine +would bring them, and met it in the beginning. The first struggle +occurred when the appropriations for the service of 1796 were brought +before the House. Beginning with a discussion upon the salaries of the +officers of the mint, the debate at once passed to the principle of +appropriations. The Federalists insisted that a discussion of the merits +of establishments was not in order when the appropriations were under +consideration; that the House ought not, by withholding appropriations, +to destroy establishments formed by the whole legislature, that is, by +the Senate and House; that the House should vote for the appropriations +agreeably to the laws already made. This view was sanctioned by +practice. Mr. Gallatin immediately opposed this as an alarming and +dangerous principle. He insisted that there was a certain discretionary +power in the House to appropriate or not to appropriate for any object +whatever, whether that object were authorized or not. It was a power +vested in the House for the purpose of checking the other branches of +government whenever necessary. He claimed that this power was shown in +the making of yearly instead of permanent appropriations for the civil +list and military establishments, yet when the House desired to +strengthen public credit it had rendered the appropriation for those +objects permanent and not yearly. It was, therefore, "contradictory to +suppose that the House was bound to do a certain act at the same time +that they were exercising the discretionary power of voting upon it." +The debate determined nothing, but it is of interest as the first +declaration in Congress of the supremacy of the House of +Representatives. + +The great debate which, from the principles involved in it as well as +the argument and oratory with which they were discussed, made this +session of the House famous, was on the treaty with Great Britain. This +was the first foreign treaty made since the establishment of the +Constitution. The treaty was sent in to the House "for the information +of Congress," by the President, on March 1, with notice of its +ratification at London in October. The next day Mr. Edward Livingston +moved that the President be requested to send in a copy of the +instructions to the minister of the United States who negotiated the +treaty, together with the correspondence and other documents. A few days +later he amended his resolution by adding an exception of such of said +papers as any existing negotiations rendered improper to disclose. The +Senate in its ratification of the treaty suspended the operation of the +clause regulating the trade with the West Indies, on which Great Britain +still imposed the old colonial restriction, and recommended the +President to open negotiations on this subject; and in fact such +negotiations were in progress. The discussion was opened on the Federal +side by a request to the gentlemen in favor of the call to give their +reasons. Mr. Gallatin supported the resolution, and expressed surprise +at any objection, considering that the exception of the mover rendered +the resolution of itself unexceptionable. The President had not informed +the House of the reasons upon which the treaty was based. If he did not +think proper to give the information sought for, he would say so to +them. A question might arise whether the House should get at those +secrets even if the President refused the request, but that was not the +present question. In reply to Mr. Murray, who asserted that the treaty +was the supreme law of the land, and that there was no discretionary +power in the House except on the question of its constitutionality, Mr. +Gallatin said that Congress possessed the power of regulating +trade,--perhaps the treaty-making power clashed with that,--and +concluded by observing that the House was the grand inquest of the +nation, and that it had the right to call for papers on which to ground +an impeachment. At present he did not contemplate an exercise of that +right. Mr. Madison said it was now to be decided whether the general +power of making treaties supersedes the powers of the House of +Representatives, particularly specified in the Constitution, so as to +give to the executive all deliberative will and leave the House only an +executive and ministerial instrumental agency; and he proposed to amend +the resolution so as to read, "except so much of said papers as in his +(the President's) judgment it may be inconsistent with the interest of +the United States at this time to disclose." But his motion was defeated +by a vote of 47 nays to 37 yeas. + +The discussion being resumed in committee of the whole, the expressions +of opinion were free on both sides, but so moderate that one of the +members made comment on the calmness and temper of the discussion. +Nicholas said that, if the treaty were not the law of the land, the +President should be impeached. But the parts of the treaty into which +the President had not the right to enter, he could not make law by +proclamation. Swanwick supported the call as one exercised by the House +of Commons. On the Federal side, Harper said that the papers were not +necessary, and, being unnecessary, the demand was an improper and +unconstitutional interference with the executive department. If he +thought them necessary, he would change the milk and water style of the +resolutions. In that case the House had a right to them and he had no +idea of requesting as a favor what should be demanded as a right. +Gallatin, he said, had declared that it was a request, but that in case +of refusal it might be considered whether demand should not be made, and +he charged that when, at the time the motion was made, the question had +been asked, what use was to be made of the papers, Gallatin did not and +could not reply. Mr. Gallatin answered that whether the House had a +discretionary power, or whether it was bound by the instrument, there +was no impropriety in calling for the papers. He hoped to have avoided +the constitutional question in the motion, but as the gentlemen had come +forward on that ground, he had no objection to rest the decision of the +constitutional power of Congress on the fate of the present question. He +would therefore state that the House had a right to ask for the papers. + +The constitutional question being thus squarely introduced, Mr. Gallatin +made an elaborate speech, which, from its conciseness in statement, +strength of argument, and wealth of citations of authority, was, to say +the least, inferior to no other of those drawn out in this memorable +struggle. In its course he compared the opinion of those who had opposed +the resolution to the saying of an English bishop, that the people had +nothing to do with the law but to obey it, and likened their conduct to +the servile obedience of a Parliament of Paris under the old order of +things. He concluded with the hope that the dangerous doctrine, that the +representatives of the people have not the right to consult their +discretion when about exercising powers delegated by the Constitution, +would receive its death-blow. Griswold replied in what by common consent +was the strongest argument on the Federal side. The call, at first view +simple, had, he said, become a grave matter. The gist of his objection +to it was that the people in their Constitution had made the treaty +power paramount to the legislative, and had deposited that power with +the President and Senate. + +Mr. Madison once more rose to the constitutional question. He said that, +if the passages of the Constitution be taken literally, they must clash. +The word _supreme_, as applied to treaties, meant as over the state +Constitutions, and not over the Constitution and laws of the United +States. He supported Mr. Gallatin's view of the congressional power as +coöperative with the treaty power. A construction which made the treaty +power omnipotent he thought utterly inadmissible in a constitution +marked throughout with limitations and checks. + +Mr. Gallatin again claimed the attention of the House, as the original +question of a call for papers had resolved itself into a discussion on +the treaty-making power. In the treaty of peace of 1783 there were +three articles which might be supposed to interfere with the legislative +powers of the several States: 1st, that which related to the payment of +debts; 2d, the provision for no future confiscations; 3d, the +restitution of estates already confiscated. The first could not be +denied. "Those," he said, "might be branded with the epithet of +disorganizers, who threatened a dissolution of the Union in case the +measures they dictated were not obeyed; and he knew, although he did not +ascribe it to any member of the House, that men high in office and +reputation had industriously spread an alarm that the Union would be +dissolved if the present motion was carried." He took the ground that a +treaty is not valid, and does not bind the nation as such, till it has +received the sanction of the House of Representatives. Mr. Harper closed +the argument on the Federal side. On March 24 the resolution calling for +the papers was carried by a vote of yeas 62, nays 37, absent 5, the +speaker 1 (105). Livingston and Gallatin were appointed to present the +request to the President. + +On March 30 the President returned answer to the effect that he +considered it a dangerous precedent to admit this right in the House; +that the assent of the House was not necessary to the validity of a +treaty; and he absolutely refused compliance with the request. The +letter of instructions to Jay would bear the closest examination, but +the cabinet scorned to take shelter behind it, and it was on their +recommendation that the President's refusal was explicit. This message, +in spite of the opposition of the Federalists, was referred, by a vote +of 55 yeas to 37 nays, to the committee of the whole. This reference +involved debate. In his opposition to this motion, Mr. Harper said that +the motives of the friends of the resolution had been avowed by the +"gentleman who led the business, from Pennsylvania;" whereby it appears +that Mr. Gallatin led the Republicans in the first debate. During this +his first session he shared this distinction with Mr. Madison. At the +next he became the acknowledged leader of the Republican party. + +On April 3 the debate was resumed. This second debate was led by Mr. +Madison, who considered two points: 1st, the application for papers; 2d, +the constitutional rights of Congress. His argument was of course calm +and dispassionate after his usual manner. The contest ended on April 7, +with the adoption of two resolutions: 1st, that the power of making +treaties is exclusively with the President and Senate, and the House do +not claim an agency in making them, or ratifying them when made; 2d, +that when made a treaty must depend for the execution of its +stipulations on a law or laws to be passed by Congress; and the House +have a right to deliberate and determine the expediency or inexpediency +of carrying treaties into effect. These resolutions were carried by a +vote of 63 to 27. + +There was now a truce of a few days. In the meanwhile the country was +agitated to an extent which, if words mean anything, really threatened +an attempt at dissolution of the Union, if not civil war itself. The +objections on the part of the Republicans were to the treaty as a whole. +Their sympathies were with France in her struggle for liberty and +democratic institutions and against England, and their real and proper +ground of antipathy to the instrument lay in its concession of the right +of capture of French property in American vessels, whilst the treaty +with France forbade her to seize British property in American vessels. +The objections in detail had been formulated at the Boston public +meeting the year before. The commercial cities were disturbed by the +interference with the carrying trade; the entire coast, by the search of +vessels and the impressment of seamen; the agricultural regions, by the +closing of the outlet for their surplus product; the upland districts, +by the stoppage of the export of timber. But the country was without a +navy, was ill prepared for war, and the security of the frontier was +involved in the restoration of the posts still held by the British. + +The political situation was uncertain if not absolutely menacing. The +threats of disunion were by no means vague. The Pendleton Society in +Virginia had passed secession resolutions, and a similar disposition +appeared in other States. While the treaty was condemned in the United +States, British statesmen were not of one opinion as to the advantages +they had gained by Grenville's diplomacy. Jay's desire, expressed to +Randolph, "to manage so that in case of wars our people should be united +and those of England divided," was not wholly disappointed. And there is +on record the expression of Lord Sheffield, when he heard of the rupture +in 1812, "We have now a complete opportunity of getting rid of that most +impolitic treaty of 1794, when Lord Grenville was so perfectly duped by +Jay."[4] Washington's ratification of the treaty went far to correct the +hasty judgment of the people, and to reconcile them to it as a choice of +evils. Supported by this modified tone of public opinion, the +Federalists determined to press the necessary appropriation bills for +carrying the treaties into effect. Besides the Jay treaty there were +also before the House the Wayne treaty with the Indians, the Pinckney +treaty with Spain, and the treaty with Algiers. With these three the +House was entirely content, and the country was impatient for their +immediate operation. Wayne's treaty satisfied the inhabitants on the +frontier. The settlers along the Ohio, among whom was Gallatin's +constituency, were eager to avail themselves of the privileges granted +by that of Pinckney, which was a triumph of diplomacy; and all America, +while ready to beard the British lion, seems to have been in terror of +the Dey of Algiers. Mr. Sedgwick offered a resolution providing for the +execution of the four treaties. Mr. Gallatin insisted on and received a +separate consideration of each. That with Great Britain was reserved +till the rest were disposed of. It was taken up on April 14. Mr. Madison +opened the debate. He objected to the treaty as wanting in real +reciprocity; 2d, in insufficiency of its provisions as to the rights of +neutrals; 3d, because of its commercial restrictions. Other Republican +leaders followed, making strong points of the position in which the +treaty placed the United States with regard to France, to whom it was +bound by a treaty of commercial alliance, which was a part of the +contract of aid in the Revolutionary War; and also of the possible +injustice which would befall American claimants in the British courts of +admiralty. + +The Federalists clung to their ground, defended the treaty as the best +attainable, and held up as the alternative a war, for which the refusal +of the Republicans to support the military establishment and build up a +navy left the country unprepared. In justice to Jay, his significant +words to Randolph, while doubtful of success in his negotiation, should +be remembered: "Let us hope for the best and prepare for the worst." To +the red flag which the Federalists held up, Mr. Gallatin replied, +accepting the consequences of war if it should come, and gave voice to +the extreme dissatisfaction of the Virginia radicals with Jay and the +negotiation. He charged that the cry of war and threats of a +dissolution of the government were designed for an impression on the +timidity of the House. "It was through the fear of being involved in a +war that the negotiation with Great Britain had originated; under the +impression of fear the treaty had been negotiated and signed; a fear of +the same danger, that of war, had promoted its ratification; and now +every imaginary mischief which could alarm our fears was conjured up in +order to deprive us of that discretion which this House thought they had +a right to exercise, and in order to force us to carry the treaty into +effect." He insisted on the important principle that 'free ships make +free goods,' and complained of its abandonment by the negotiators. + +In a reply to this attack upon Jay, whose whole life was a refutation of +the charge of personal or moral timidity, Mr. Tracy passed the limits of +parliamentary courtesy. "The people," he said, "where he was most +acquainted, whatever might be the character of other parts of the Union, +were not of the stamp to cry hosannah to-day and crucify to-morrow; they +will not dance around a whiskey pole to-day and curse their government, +and upon hearing of a military force sneak into a swamp. No," said he, +"my immediate constituents, whom I very well know, understand their +rights and will defend them, and if they find the government will not +protect them, they will attempt at least to protect themselves;" and he +concluded, "I cannot be thankful to that gentleman for coming all the +way from Geneva to give Americans a character for pusillanimity." He +held it madness to suppose that if the treaty were defeated war could be +avoided. Called to order, he said that he might have been too personal, +and asked pardon of the gentleman and of the House. + +The brilliant crown of the debate was the impassioned speech of Fisher +Ames, the impression of which upon the House and the crowded gallery is +one of the traditions of American oratory. The scene, as it has been +handed down to us, resembles, in all save its close, that which +Parliament presented when Chatham made his last and dying appeal. Like +the great earl, Ames rose pale and trembling from illness to address a +House angry and divided. Defending himself and the Federal party against +the charge of being in English interest, he said, "Britain has no +influence, and can have none. She has enough--and God forbid she ever +should have more. France, possessed of popular enthusiasm, of party +attachments, has had and still has _too much influence_ on our +politics,--any foreign influence is too much and ought to be destroyed. +I detest the man and disdain the spirit that can ever bend to a mean +subserviency to the views of any nation. It is enough to be American. +That character comprehends our duties and ought to engross our +attachments." Considering the probable influence on the Indian tribes of +the rejection of the treaty, he said, "By rejecting the Posts we light +the savage fires, we bind the victims.... I can fancy that I listen to +the yells of savage vengeance and shrieks of torture. Already they seem +to sigh in the west wind,--already they mingle with every echo from the +mountains." His closing words again bring Chatham to mind. "Yet I have +perhaps as little personal interest in the event as any one here. There +is, I believe, no member who will not think his chance to be a witness +of the consequences greater than mine. If, however, the vote should pass +to reject, and a spirit should rise, as rise it will, with the public +disorders to make confusion worse confounded, even I, slender and almost +broken as my hold upon life is, may outlive the government and +Constitution of my country." This appeal, supported by the petitions and +letters which poured in upon the House, left no doubt of the result. An +adjournment was carried, but the speech was decisive. The next day, +April 29, it was resolved to be expedient to make the necessary +appropriations to carry the treaty into effect. The vote stood 49 ayes +to 49 nays, and was decided in the affirmative by Muhlenberg, who was in +the chair. But the House would not be satisfied without an expression of +condemnation of the instrument. On April 30 it was resolved that in the +opinion of the House the treaty was objectionable. + +While Mr. Gallatin in this debate rose to the highest rank of +statesmanship, he showed an equal mastery of other important subjects +which engaged the attention of the House during the session. He was +earnest for the protection of the frontier, but had no good opinion of +the Indians. "Twelve years had passed," he said, "since the peace of +1783; ever since that time he had lived on the frontier of Pennsylvania. +Not a year of this period had passed, whether at war or peace, that some +murders had not been committed by the Indians, and yet not an act of +invasion or provocation by the inhabitants." In the matter of +impressment of American seamen, he urged the lodging of sufficient power +in the executive. Men had been impressed, and he held it to be the duty +of the House to take notice of it by war or negotiation. In the +establishment of land offices for the sale of the western lands he +brought to bear upon legislation his practical experience. He urged that +the tracts for sale be divided, and distinctions be made between large +purchasers and actual settlers--proposing that the large tracts be +sold at the seat of government, and the small on the territory itself. +He instanced the fact that in 1792 all the land west of the Ohio was +disposed of at 1_s_. 6_d_. the acre, and a week afterwards was resold at +$1.50, so that the money which should have gone into the treasury went +to the pockets of speculators. He also suggested that the proceeds of +the sales should be a fund to pay the public debt, and that the public +stock should always be received at its value in payment for land; a plan +by which the land would be brought directly to the payment of the debt, +as foreigners would gladly exchange the money obligations of the +government for land. On the question of taxation he declared himself in +favor of direct taxes, and held that a tax on houses and lands could be +levied without difficulty. He would satisfy the people that it was to +pay off the public debt, which he held to be a public curse. He +supported the excise duty on stills under regulations which would avoid +the watching of persons and houses and inspection by officers, and +proposed that licenses be granted for the time applied for. + +The military establishment he opposed in every way, attacked the +principle on which it was based, and fought every appropriation in +detail, from the pay of a major-general to the cost of uniforms for the +private soldiers. He was not afraid of the army, he said, but did not +think that it was necessary for the support of the government or +dangerous to the liberties of the people; moreover, it cost six hundred +thousand dollars a year, which was a sum of consequence in the condition +of the finances. + +The navy found no more favor in his eyes. He denied that fleets were +necessary to protect commerce. He challenged its friends to show, from +the history of any nation in Europe as from our own, that commerce and +the navy had gone hand in hand. There was no nation except Great +Britain, he said, whose navy had any connection with commerce. Navies +were instruments of power more calculated to annoy the trade of other +nations than to protect that of the nations to which they belonged. The +price England had paid for her navy was a debt of three hundred millions +of pounds sterling. He opposed appropriations even for the three +frigates, United States, Constitution, and Constellation,--the +construction of which had been ordered,--the germs of that navy which +was later to set his theory at naught, redeem the honor of the flag, +protect our commerce, and release the country and the civilized world +from ignominious tribute to the Mediterranean pirates, who were +propitiated in this very session only at the cost of a million of +dollars to the Treasury of the United States, and by the gift of a +frigate. + +In the debate over the payment of the sum of five millions, which the +United States Bank had demanded from the government, the greatest part +of which had been advanced on account of appropriations, he lamented the +necessity, but urged the liquidation. This was the occasion of another +personal encounter. In reply to a charge of Gallatin that the +Federalists were in favor of debt, Sedgwick alluded to Gallatin's part +in the Whiskey Insurrection, and said that none of those gentlemen whom +Gallatin had charged with "an object to perpetuate and increase the +public debt" had been known to have combined "in every measure which +might obstruct the operation of law," nor had declared to the world +"that the men who would accept of the offices to perform the necessary +functions of government were lost to every sense of virtue;" "that from +them was to be withheld every comfort of life which depended on those +duties which as men and fellow-citizens we owe to each other. If," he +said, "the gentlemen had been guilty of such nefarious practices, there +would have been a sound foundation for the charge brought against them." +Gallatin made no reply. This was the one political sin he had +acknowledged. His silence was his expiation. + +The Treasury Department and its control, past and present, was the +object of his unceasing criticism. In April, 1796, he said, "The +situation of the gentleman at the head of the department [Wolcott] was +doubtless delicate and unpleasant; it was the more so when compared with +that of his predecessor [Hamilton]. Both indeed had the same power to +borrow money when necessary; but that power, which was efficient in the +hands of the late secretary and liberally enough used by him, was become +useless at present. He wished the present secretary to be extricated +from his present difficulty. Nothing could be more painful than to be at +the head of that department with an empty treasury, a revenue inadequate +to the expenses, and no means to borrow." Nevertheless he feared that if +it were declared that the payment of the debt incurred by themselves +were to be postponed till the present generation were over, it might +well be expected that the principle thus adopted by them would be +cherished, that succeeding legislatures and administrations would follow +in their steps, and that they were laying the foundations of that +national curse,--a growing and perpetual debt. + +On the last day of the session W. Smith had challenged the correctness +of Gallatin's charge that there had been an increase of the public debt +by five millions under the present administration, and claimed that +there were errors in Gallatin's statement of more than four and a half +millions. Gallatin defended his figures. At this day it is impossible to +determine the merits of this dispute. + +One incident of this session deserves mention as showing the distaste of +Gallatin for anything like personal compliment, stimulated in this +instance, perhaps, by his sense of Washington's dislike to himself. It +had been the habit of the House since the commencement of the government +to adjourn for a time on February 22, Washington's birthday, that +members might pay their respects to the President. When the motion was +made that the House adjourn for _half an hour_, the Republicans +objected, and Gallatin, nothing loath to "bell the cat," moved that the +words "half an hour" be struck out. His amendment was lost without a +division. The motion to adjourn was then put and lost by a vote of 50 +nays to 38 ayes. The House waited on the President at the close of the +business of the day. On June 1 closed this long and memorable session, +in which the assaults of the Republicans upon the administration were so +persistent and embarrassing as to justify Wolcott's private note to +Hamilton, April 29, 1796, that "unless a radical change of opinion can +be effected in the Southern States, the existing establishments will not +last eighteen months. The influence of Messrs. Gallatin, Madison, and +Jefferson must be diminished, or the public affairs will be brought to a +stand." Here is found an early recognition of the political +"triumvirate," and Gallatin is the first named. + +Gallatin seems to have had some doubts as to his reëlection to Congress. +As he did not reside in the Washington and Allegheny district, his name +was not mentioned as a candidate, and, to use his own words, he expected +to "be gently dropped without the parade of a resignation." In his +distaste at separation from his wife, the desire to abandon public life +grew upon him. But personal abuse of him in the newspapers exasperating +his friends, he was taken up again in October, and he arrived on the +scene, he says, too late to prevent it. He had no hope, however, of +success, and was resolved to resign a seat to which he was in every way +indifferent. "Ambition, love of power," he wrote to his wife on October +16, he had never felt, and he added, if vanity ever made one of the +ingredients which impelled him to take an active part in public life, it +had for many years altogether vanished away. He was nevertheless +reëlected by the district he had represented. + + * * * * * + +The second session of the fourth Congress began on December 5, 1796. At +the beginning of this session Mr. Gallatin took the reins of the +Republican party, and held them till its close. The position of the +Federalists had been strengthened before the country by the energy of +Washington, who, impatient of the delays which Great Britain opposed to +the evacuation of the posts, marched troops to the frontier and obtained +their surrender. Adet, the new French minister, had dashed the feeling +of attachment for France by his impudent notice to the President that +the dissatisfaction of France would last until the executive of the +United States should return to sentiments and measures more conformable +to the interests and friendships of the two nations. In September +Washington issued his Farewell Address, in which he gave the famous +warning against foreign complications, which, approved by the country, +has since remained its policy; but neither the prospect of his final +withdrawal from the political and official field, nor the advice of +Jefferson to moderate their zeal, availed to calm the bitterness of the +ultra Republicans in the House. + +The struggle over the answer to the President's message, which Fisher +Ames on this occasion reported, was again renewed. An effort was made to +strike out the passages complimentary to Washington and expressing +regret at his approaching retirement. Giles, who made the motion, went +so far as to say that he 'wished him to retire, and that this was the +moment for his retirement, that the government could do very well +without him, and that he would enjoy more happiness in his retirement +than he possibly could in his present situation.' For his part he did +not consider Washington's administration either "wise or firm," as the +address said. Gallatin made a distinction between the administration and +the legislature, and in lieu of the words, wise, firm, and patriotic +administration, proposed to address the compliment directly to the +wisdom, firmness, and patriotism of Washington. But Ames defended his +report, and it was adopted by a vote of 67 to 12. Gallatin voted with +the majority, but Livingston, Giles, and Macon held out with the small +band of disaffected, among whom it is amusing also to find Andrew +Jackson, who took his seat at this Congress to represent Tennessee, +which had been admitted as a State at the last session.[5] + +The indebtedness of the States to the general government, in the old +balance sheet, on the payment of which Gallatin insisted, was a subject +of difference between the Senate and the House. Gallatin was appointed +chairman of the committee of conference on the part of the House. The +reduction of the military establishment, which he wished to bring down +to the footing of 1792, was again insisted upon. Gallatin here +ingeniously argued against the necessity for the number of men +proposed, that it was a mere matter of opinion, and if it was a matter +of opinion, it was not strictly necessary, because if necessary it was +no longer a matter of opinion. Naval appropriations were also opposed, +on the ground that a navy was prejudicial to commerce. Taxation, direct +and indirect, and compensation to public officers were also subjects of +debate at this session. On the subject of appropriations, general or +special, he was uncompromising. He charged upon the Treasury Department +that notwithstanding the distribution of the appropriations they thought +themselves at liberty to take money from an item where there was a +surplus and apply it to another where it was wanted. To check such +irregularity, he secured the passage of a resolution ordering that "the +several sums shall be solely applied to the objects for which they are +respectively appropriated," and tacked it to the appropriation bill. The +Senate added an amendment removing the restriction, but Gallatin and +Nicholas insisting on its retention, the House supported them by a vote +of 52 to 36, and the Senate receded. + +Notwithstanding the apparent enthusiasm of the House in the early part +of the session, when the tricolor of France, a present from the French +government to the United States, was sent by Washington to Congress, to +be deposited with the archives of the nation, French influence was on +the wane. The common sense of the country got the better of its +passion. In the reaction the Federalists regained the popular favor for +a season. + +Whatever latent sympathy the French people may have had for America as +the nation which set the example of resistance to arbitrary rule, the +French government certainly was moved by no enthusiasm for abstract +rights. Its only object was to check the power of their ancient enemy, +and deprive it of its empire beyond the seas. Nevertheless, France did +contribute materially to American success. The American government and +people acknowledged the value of her assistance, and, in spite of the +prejudices of race, there was a strong bond of sympathy between the two +nations; and when, in her turn, France, in 1789, threw off the feudal +yoke, she expected and she received the sympathy of America. Beyond this +the government and the people of the United States could not and would +not go. The position of France in the winter of 1796-97 was peculiar. +She was at war with the two most formidable powers of Europe,--Austria +and England, the one the mistress of Central Europe, the other supreme +ruler of the seas. The United States was the only maritime power which +could be opposed to Great Britain. The French government determined to +secure American aid by persuasion, if possible, otherwise by threat. The +Directory indiscreetly appealed from the American government to the +American people, forgetting that in representative governments these are +one. Nor was the precedent cited in defense of this unusual +proceeding--namely, the appeal of the American colonists to the people +of England, Ireland, and Canada to take part in the struggle against the +British government--pertinent; for that was an appeal to sufferers under +a common yoke. + +The enthusiasm awakened in France by the dramatic reception of the +American flag, presented by Monroe to the French Convention, was +somewhat dampened by the cooler manner with which Congress received the +tricolor, and was entirely dashed by the moderation of the reply of the +House to Washington's message. The consent of the House to the +appropriations to carry out the Jay Treaty decided the French Directory +to suspend diplomatic relations with the United States. The marvelous +successes of Bonaparte in Italy over the Austrian army encouraged Barras +to bolder measures. The Directory not only refused to receive Charles C. +Pinckney, the new American minister, but gave him formal notice to +retire from French territory, and even threatened him with subjection to +police jurisdiction. In view of this alarming situation, President Adams +convened Congress. + +The first session of the fifth Congress began at Philadelphia on Monday, +May 15, 1797. Jonathan Dayton was reëlected speaker of the House. Some +new men now appeared on the field of national debate: Samuel Sewall and +Harrison Gray Otis from Massachusetts, James A. Bayard from Delaware, +and John Rutledge, Jr., from South Carolina. Madison and Fisher Ames did +not return, and their loss was serious to their respective parties. +Madison was incontestably the finest reasoning power, and Ames, as an +orator, had no equal in our history until Webster appeared to dwarf all +other fame beside his matchless eloquence. Parties were nicely balanced, +the nominal majority being on the Federal side. Harper and Griswold +retained the lead of the administration party. Giles still led the +Republican opposition, but Gallatin was its main stay, always ready, +always informed, and already known to be in the confidence of Jefferson, +its moving spirit. The President's message was, as usual, the touchstone +of party. The debate upon it unmasked opinions. It was to all intents a +war message, since it asked provision for war. The action of France left +no alternative. The Republicans recognized this as well as the +Federalists. They must either respond heartily to the appeal of the +executive to maintain the national honor, or come under the charge they +had brought against the Federalists of sympathy with an enemy. At first +they sought a middle ground. Admitting that the rejection of our +minister and the manner of it, if followed by a refusal of all +negotiation on the subject of mutual complaints, would put an end to +every friendly relation between the two countries, they still hoped that +it was only a suspension of diplomatic intercourse. Hence, in response +to the assurance in the message that an attempt at negotiation would +first be made, Nicholas moved an amendment in this vein. The Federalists +opposed all interference with the executive, but the Republicans took +advantage of the debate to clear themselves of any taint of unpatriotic +motives in their semi-opposition. The Federalists, repudiating the +charge of British influence, held up Genet to condemnation, as making an +appeal to the people, Fauchet as fomenting an insurrection, and Adet as +insulting the government. The Republicans retorted upon them Grenville's +proposition to Mr. Pinckney, to support the American government against +the dangerous Jacobin factions which sought to overturn it. Gallatin +deprecated bringing the conduct of foreign relations into debate, and +hoped that the majority would resist the rashness which would drive the +country into war; he claimed that a disposition should be shown to put +France on an equal footing with other nations. He would offer an +ultimatum to France. Harper closed the debate in a powerful and +brilliant speech, opposing the amendment because he was for peace, and +because peace could only be maintained by showing France that we were +preparing for war. So the rival leaders based their opposite action on a +common ground. Dayton, the speaker, now embodied Gallatin's idea in +another form, and introduced a paragraph to the effect that "the House +receive with the utmost satisfaction the information of the President +that a fresh attempt at negotiation will be instituted, and cherish the +hope that a mutual spirit of conciliation and a disposition on the part +of the United States to place France on grounds as favorable as other +countries will produce an accommodation compatible with the engagements, +rights, and honor of our nation." + +Kittera, who was one of the committee on the address, then moved to add +after "mutual spirit of conciliation" the clause, "to compensate for any +injury done to our neutral rights," etc. This both Harper and Gallatin +opposed. Gallatin objected to being forced to this choice. To vote in +its favor was a threat, if compensation were refused; to vote against it +was an abandonment of the claim. But he should oppose it, if forced to a +choice. The Federal leaders insisted; the previous question was ordered, +51 to 48. Here Mr. Gallatin showed himself the leader of his party. He +stated that, the majority having determined the question, it was now a +choice of evils, and he should vote for the amendment, and it was +adopted, 78 ayes to 21 nays. Among the nays were Harper, the Federalist +leader, Giles, the nominal chief of the Republicans, and Nicholas, high +in rank in that party. But the last word was not yet said. Edward +Livingston, who day by day asserted himself more positively, denied that +the conduct of the executive had been "just and impartial to foreign +nations," and moved to strike out the statement; Gallatin was more +moderate. Though he did not believe that in every instance the +government had been just and impartial, yet, generally speaking, it had +been so. He did not approve the British treaty, though he attributed no +bad motives to its makers; but he did not think that the laws respecting +the subordinate departments of the executive and judiciary had been +fairly executed. He therefore would not consent to the sentence in the +answer to the address, that the House did not hesitate to declare that +"they would give their most cordial support to principles so +deliberately and uprightly established." + +What, he asked, were these principles? Otis denounced this as an artful +attempt to cast a censure, not only on the executive, but on all the +departments of government, and Allen of Connecticut declared "that there +was American blood enough in the House to approve this clause and +American accent enough to pronounce it." The rough prejudice of the +Saxon against the Latin race showed itself in this language, and +expressed the antagonism which Mr. Gallatin found to increase with his +political progress. Both the resolution and the amendment were defeated, +53 nays to 45 yeas. But when the final vote came upon the address, Mr. +Gallatin, with that practical sense which made him the sheet anchor of +his party in boisterous weather, voted with the Federalists and carried +the moderate Republicans with him. The vote was 62 to 36. Among the +irreconcilables the name of Edward Livingston is recorded. + +The answer of the President was a model of good sense. "No event can +afford me so much cordial satisfaction as to conduct a negotiation with +the French Republic to a removal of prejudices, a correction of errors, +a dissipation of umbrages, an accommodation of all differences, and a +restoration of harmony and affection to the mutual satisfaction of both +nations." + +This was the leading debate of the session. The situation was too grave +for trifling. On June 5, two days after the President's reply, +resolutions were introduced to put the country in a state of defense. +Gallatin struggled hard to keep down the appropriations, and opposed the +employment of the three frigates, which as yet had not been equipped or +manned. If they got to sea, the President would have no option except to +enforce the disputed articles of the French treaty. Gallatin laid down +also the law of search in accordance with the law of nations, and +pointed out that resistance to search or capture by merchantmen would +not only lead to war, but was war. In the remaining acts of the session +he was in favor of the defense of ports and harbors, with no preference +as to fortification on government territory; in favor of a prohibition +of the export of arms; against raising an additional corps of artillery; +against expatriation of persons who took service under foreign +governments. He opposed the duty on salt as unequal and unnecessary, and +sought to have the loan, which became necessary, cut down to the exact +sum of the deficiency in the appropriations; and finally, on the +impeachment of William Blount, Senator of the United States, charged +with having conspired with the British government to attack the +Spaniards of St. Augustine, he pointed out the true method of procedure +in the preparation of the bill of impeachment and the arraignment of the +offender. + +The House adjourned on July 10. Jefferson complained of the weakness and +wavering of this Congress, the majority of which shifted with the breeze +of "panic or prowess." This was, however, a very narrow view; for at +this session the House fairly represented the prevailing sentiment of +the country, which was friendly to France as a nation, but indignant +with the insolence of her rulers. Gallatin, in the middle of the +session, wrote to his wife that the Republicans "were beating and beaten +by turns." He supposed that her father, Commodore Nicholson, 'thought +him too moderate and about to trim,' and then declared, 'Moderation and +firmness hath ever been, and ever will be, my motto.' Gallatin tells a +story of his colleague from Pennsylvania, the old Anti-Federalist, Blair +McClanachan, which shows the warmth of party feeling. They were both +dining with President Adams, who entertained the members of Congress in +turn. "McClanachan told the President that, by God, he would rather see +the world annihilated than this country united with Great Britain; that +there would not remain a single king in Europe within six months, etc., +all in the loudest and most decisive tone." + +Jefferson, who, as vice-president, presided over the debates in the +Senate, had no cause to complain of any hesitation in that body, in +which the Federalists had regained a clear working majority, giving him +no chance of a deciding vote. + + * * * * * + +The second session of the fifth Congress began on November 13, 1797. The +words of the President's address, "We are met together at a most +interesting period, the situation of the powers of Europe is singular +and portentous," was not an idle phrase. The star of Bonaparte already +dominated the political firmament. Europe lay prostrate at the feet of +the armies of the Directory. England, who was supposed to be the next +object of attack, was staggering under the load of debt; and the sailors +of her channel fleet had risen in mutiny. Even the Federalists, the +aristocrats as Mr. Gallatin delighted to call them, believed that she +was gone beyond recovery. But the admirers of France were no better +satisfied with the threatening attitude of the Directory towards +America, and eagerly waited news of the reception given to the envoys +extraordinary, Gerry, Pinckney, and Marshall, whom Adams with the +consent of the Senate dispatched to Paris in the summer. Even Jefferson +lost his taste for a French alliance, and almost wished there were "an +ocean of fire between the new and the old world." + +The tone of the President's address was considered wise on all sides, +and it was agreed that the answer should be general and not a subject +of contention. One of the members asked to be excused from going with +the House to the President, but Gallatin showed that, as there was no +power to compel attendance, no formal excuse was necessary. When the +motion was put as to whether they should go in a body as usual to +present their answer, Mr. Gallatin voted in the negative. He +nevertheless accompanied the members, who were received pleasantly by +President Adams and "treated to cake and wine." + +Harper was made the chairman of the Ways and Means Committee. Though of +high talents and a fine speaker, Gallatin found him a "great bungler" in +the business of the House, a large share of which fell upon his own +shoulders as well as the direction of the Republicans, of whom, +notwithstanding the jealousy of Giles, he now was the acknowledged +leader. As a member for Pennsylvania, Mr. Gallatin presented a memorial +from the Quakers with regard to the arrest of fugitive slaves on her +soil; the law of Pennsylvania declaring all men to be free who set foot +in that State except only servants of members of Congress. There was +already an opposition to hearing any petition with regard to slaves, but +Gallatin insisted on the memorial taking the usual course of reference +to a committee. He directed the House also in the correct path in its +legislation as to foreign coins. It was proposed to take from them the +quality of legal tender; but he showed that it was policy not to +discriminate against such coins until the mint could supply a +sufficiency for the use of the country. In this argument he estimated +the entire amount of specie in the United States at eight millions of +dollars. At this early period in his political career he was acquiring +that precise knowledge of the facts of American finance which later +served to establish the principles upon which it is based. + +This session was noteworthy by reason of the first personal encounter on +the floor of the House. It was between two Northern members, Lyon of +Vermont and Griswold of Connecticut. Gallatin stood by Lyon, who was of +his party, and showed that the House could not expel him, since it was +not at the time in organized session. As the Federalists would not +consent to censure Griswold, both offenders escaped even a formal +reproof. The general bitterness of feeling which marked the summer +session was greatly modified in the expectant state of foreign politics; +but the occasion for display of political divergence was not long +delayed. + +On January 18, 1798, Mr. Harper, who led the business of the House, +moved the appropriation for foreign intercourse. This was seized upon by +the opposition to advance still further their line of attack by a +limitation of the constitutional prerogative of the President. In +addition to the usual salaries of the envoys to Great Britain and +France, appropriations were asked for the posts at Madrid, Lisbon, and +Berlin, which last Mr. Adams had designated as a first-class mission. +The discussion on the powers of the President, and the extent to which +they might be controlled by paring down the appropriations, lifted the +debate from the narrow ground of economy in administration to the +higher plane of constitutional powers. Nicholas opened on the +Republican side by announcing that it was seasonable to bring back the +establishment of the diplomatic corps to the footing it had been on +until the year 1796. In all governments like our own he declared that +there was a tendency to a union and consolidation of all its parts into +the executive, and the limitation and annexion of the parts with each +other as settled by the Constitution would be destroyed by this +influence unless there were a constant attention on the part of the +legislature to resist it. The appointment of a minister plenipotentiary +to Prussia, with which we had little or no commercial intercourse, +offered an opportunity to determine this limitation. Harper said that +this was a renewal of the old charge that foreign intercourse was +unnecessary, and the old suggestion that our commerce ought to be given +up or left to shift for itself. Mr. Gallatin laid down extreme theories +which have never yet found practical application. He took the question +at once from party or personal ground by admitting that the government +was essentially pure, its patronage not extensive, or its effect upon +the legislative or any other branch of the government as yet material. +The Constitution had placed the patronage in the executive. There he +thought it was wisely placed. The legislature would be more corrupt +than the executive were it placed with them. While not willing at once +to give up political foreign intercourse, he thought that it should by +degrees be altogether declined. To it he ascribed the critical situation +of the country. Commercial intercourse could be protected by the +consular system. He then argued that the power to provide for expenses +was the check intended by the Constitution. To this Griswold answered +that this doctrine of checks contained more mischief than Pandora's box; +Bayard, that the checks were all directed to the executive, and that +they would check and counter-check until they _stopped the wheels of +government_.[6] When the President was manacled and at the mercy of the +House they would be satisfied. He held the executive to be the weakest +branch of the government, because its powers are defined; but the limits +of the House are undefined. + +As the debate advanced, Nicholas declared that the purpose of the +Republicans was to define the executive power and to put an end to its +extension through their power over appropriations. Later he would bring +in a motion to do away with all foreign intercourse. Goodrich answered +that the office of foreign minister was created by the Constitution +itself, and the power of appointment was placed in the President. The +House might speculate upon the propriety of doing away with all +intercourse with foreign powers, but could not decide on it, for +political intercourse did not depend on the sending of ministers abroad. +Foreign ministers would come here and the Constitution required their +reception. The idea that we should have no foreign intercourse was taken +from Washington's Farewell Address, but his words applied only to +alliances offensive and defensive. If ministers were abandoned, envoys +extraordinary must be sent, a much more dangerous practice; the only +choice was between ministers and spies. In conclusion he accused the +Republicans of making one continuous attack upon the administration, and +charged that the opposition to the appropriation bill was not a single +measure, but connected with others, and intended to clog the wheels of +government. + +The purpose of the Republicans being thus declared by Nicholas and +squarely met by the friends of the administration, Mr. Gallatin, March +1, 1798, summed up the opposition arguments in an elaborate speech three +hours and a quarter in length. He denied the novel doctrine that each +department had checks within itself, but none upon others; he claimed +that the principle of checks is admitted in all mixed governments. +Commercial intercourse, he said, is regulated by the law of nations, by +the municipal law of respective countries and by treaties of commerce, +the application of which is the province of consuls. What advantages, he +asked, had our commercial treaties given us, either that with France or +that with England? He excepted that part of the treaty with Great +Britain which arranged our difference with that power, as foreign to the +discussion. He claimed that the restriction which we had laid upon +ourselves by our commercial treaties had been attended with political +consequences fatal to our tranquillity. Washington had advised a +separation of our political from our commercial relations. The message +of President Adams intimated a different policy and alluded to the +balance of power in Europe as not to be forgotten or neglected. +Interesting as that balance may be to Europe, how does it concern us? We +shall never throw our weight into the scale. Passing from this to the +danger of the absorption of powers by the executive, he cited the +examples of the Córtes of Spain, the États Généraux of France, the Diets +of Denmark. In all these countries the executive is in possession of +legislative, of absolute powers. The fate of the European republics was +similar. Venice, Switzerland, and Holland had shown the legislative +powers merging into the executive. The object of the Constitution of the +United States is to divide and distribute the powers of government. With +uncontrolled command over the purse of the people the executive tends to +prodigality, to taxes, and to wars. He closed with a hope that a fixed +determination to prevent the increase of the national expenditure, and +to detach the country from any connection with European politics, would +tend to reconcile parties, promote the happiness of America, and +conciliate the affection of every part of the Union. No such admirable +exposition of the true American doctrine of non-interference with +European politics had at that time been heard in Congress. + +In reply, Harper insisted on the admission that the purpose of the +amendment of Nicholas was to restrain the President; that it was a +question of power, not of money. Mr. Gallatin admitted the right of +appointment, but denied that the House was bound to appropriate. Harper +rejoined that the offices did not originate with the President but with +the Constitution, and that they could not be destroyed by the action of +the House, and, leaving the general ground of debate, made a brilliant +attack upon the Republicans as revolutionists, whom he divided into +three classes: the philosophers, the Jacobins, and the _sans-culottes_. +The philosophers are most to be dreaded. "They declaim with warmth on +the miseries of mankind, the abuses of government, and the vices of +rulers; all which they engage to remove, providing their theories should +once be adopted. They talk of the perfectibility of man and of the +dignity of his nature; and, entirely forgetting what he is, declaim +perpetually about what he should be." Of Jacobins there are plenty. They +profit by the labors of others; tyrants in power, demagogues when not. +Fortunately for America there are few or no _sans-culottes_ among her +inhabitants. Jefferson, he said, returned from France a missionary to +convert Americans to the new faith, and he charged that the system of +French alliance and war with Great Britain by the United States was a +part of the scheme of the French revolutionists, and was imported into +this country. Gallatin and his friends he regarded in the light of an +enemy who has commenced a siege against the fortress of the +Constitution. + +The restricting amendment was lost, and the bill passed by a vote of 52 +yeas to 43 nays. Nor is it easy to see how the theory of Mr. Gallatin +with regard to diplomatic relations could have been applied successfully +with the existing channels of intercourse. Now that the ocean cable +brings governments into direct relation with each other, there is a +tendency to restrict the authority of ambassadors, for whom there is no +longer need, and the entire system will no doubt soon disappear. Mr. +Gallatin's speech was the delight of his party and his friends. He was +called upon to write it out, and two thousand copies of it were +circulated as the best exposition of Republican doctrine. + +Early in February the President informed Congress of certain captures +and outrages committed by a French privateer within the limits of the +United States, including the burning of an English merchantman in the +harbor of Charleston. On March 19, in a further special message, he +communicated dispatches from the American envoys in France, and also +informed Congress that he should withdraw his order forbidding merchant +vessels to sail in an armed condition. A collision might, therefore, +occur at any moment. + +On March 27, 1798, a resolution was introduced that it is not now +expedient for the United States to resort to war against the French +Republic; a second, to restrict the arming of merchant vessels; and a +third, to provide for the protection of the seacoast and the internal +defense of the country. Speaking to the first resolution, Mr. Gallatin +said that the United States had arrived at a crisis at which a stand +must be made, when the House must say whether it will resort to war or +preserve peace. If to war, the expense and its evils must be met; if +peace continue, then the country must submit: in either case American +vessels would be taken. It was a mere matter of calculation which course +would best serve the interest and happiness of the country. If he could +separate defensive from offensive war, he should be in favor of it; but +he could not make the distinction, and therefore he should be in favor +of measures of peace. The act of the President was a war measure. +Members of the House so designated it in letters to their constituents. + +On April 2 the President was requested to communicate the instructions +and dispatches from the envoys extraordinary, mention of which he had +made in his message of March 19. Gallatin supported the call. He said +that the President was not afraid of communicating information, as he +had shown in the preceding session, and that to withhold it would +endanger the safety of our commerce, or prevent the happy issue of +negotiation. On April 3 Mr. Gallatin presented a petition against +hazarding the neutrality and peace of the nation by authorizing private +citizens to arm and equip vessels. This was signed by forty members of +the Pennsylvania legislature. Protests of a similar character were +presented from other parts of the country. On the same day the President +sent in the famous X Y Z dispatches, in confidence. These letters +represented the names of Hottinguer, Bellamy, and Hauteval, the agents +of Talleyrand, the foreign minister of the First Consul, which were +withheld by the President. The mysterious negotiations contained a +distinct demand by Talleyrand of a douceur of 1,200,000 livres to the +French officials as a condition of peace. The effect was immediately to +strengthen the administration, Dayton, the speaker, passing to the ranks +of the Federalists. + +On the 18th the Senate sent down a bill authorizing the President to +procure sixteen armed vessels to act as convoys. Gallatin still held +firm. He admitted that from the beginning of the European contest the +belligerent powers had disregarded the law of nations and the +stipulations of treaties, but he still opposed the granting of armed +convoys, which would lead to a collision. Let us not, he said, act on +speculative grounds; if our present situation is better than war, let us +keep it. Better even, he said, suffer the French to go on with their +depredations than to take any step which may lead to war. + +Allen of Connecticut read a passage from the dispatches which envenomed +the debate. By it one of the French agents appears to have warned the +American envoys that they were mistaken in supposing that an exposition +of the unreasonable demands of France would unite the people of the +United States. He said, "You should know that the _diplomatic skill_ of +France and the _means_ she possesses in your country are sufficient to +enable her, with the _French party_ in America, to throw the blame which +will attend the rupture of the negotiations on the _Federalists_, as you +term yourselves, but on the _British party_, as France terms you, and +you may assure yourselves this will be done." Allen then charged upon +Gallatin that his language was that of a foreign agent. Gallatin replied +that the representatives of the French Republic in this country had +shown themselves to be the worst diplomatists that had ever been sent to +it, and he asked why the gentlemen who did not come forward with a +declaration of war (though they were willing to go to war without the +declaration) charge their adversaries with meaning to submit to France. +France might declare war or give an order to seize American vessels, but +as long as she did not, some hope remained that the state of peace might +not be broken; and he said in conclusion "that, notwithstanding all the +violent charges and personal abuse which had been made against him, it +would produce no difference in his manner of acting, neither prevent him +from speaking against every measure which he thought injurious to the +public interest, nor, on the other hand, inflame his mind so as to +induce him to oppose measures which he might heretofore have thought +proper." + +The war feeling ran high in the country; "Millions for defense, but not +one cent for tribute,"[7] was the popular cry. On May 28 Mr. Harper +introduced a bill to suspend commercial intercourse with France. +Gallatin thought this a doubtful measure. Its avowed purpose was to +distress France in the West Indies, but he said that in six months that +entire trade would be by neutral vessels. In the discussion on the bill +to regulate the arming of merchant vessels, he showed that it was the +practice of neutral European nations to allow such vessels to arm, but +not to regulate their conduct. Bonds are required in cases of letter of +marque, and the merchant who arms is bound not to break the laws of +nations or the agreements of treaties. Restriction was therefore +unnecessary. Government should not interfere. Commercial intercourse +with France was suspended June 13. + +In the pride of their new triumph and the intensity of their personal +feeling the Federalists overleaped their mark, and began a series of +measures which ultimately cost them the possession of the government +and their political existence. The first of these was the Sedition Bill, +which Jefferson believed to be aimed at Gallatin in person. Mr. Gallatin +met it at its inception with a statement of the constitutional +objections, viz., 1st, that there was no power to make such a law, and +2d, the special provision in the Constitution that the writ of _habeas +corpus_ shall not be suspended except in cases of rebellion and +invasion. There was neither. The second, the Alien Bill, gave the +President power to expel from the country all aliens. Over this measure +Gallatin and Harper had hot words. Gallatin charged upon Harper not only +a misrepresentation of the arguments of his opponents, but an +arraignment of the motives of others, while claiming all purity for his +own. Harper answered in words which show that Gallatin, for once, had +met warmth with warmth, and anger with anger. When, Harper said, a +gentleman, who is usually so cool, all at once assumes such a tone of +passion as to forget all decorum of language, it would seem as if the +observation had been properly applied. On the vote to strike out the +obnoxious sections, the Federalists defeated their antagonists, and on +June 21 the bill itself was passed with all its odious features by 46 to +40. + +On June 21 President Adams sent in a message with letters from Gerry, +who had remained at Paris after the return of Marshall and Pinckney, on +the subject of a loan. They contained an intimation from Talleyrand that +he was ready to resume negotiations. In this message Adams said, "I +will never send another minister to France without assurances that he +will be received, respected, and honored as the representative of a +great, free, powerful, and independent nation." On the 25th an act was +passed authorizing the commanders of merchant vessels to defend +themselves against search and seizure under regulations by the +President. On June 30 a further act authorized the purchase and +equipment of twelve vessels as an addition to the naval armament. To all +intents and purposes a state of war between the two countries already +existed. + +The 4th of July (1798) was celebrated with unusual enthusiasm all over +the United States, and the black cockade was generally worn. This was +the distinctive badge of the Federalists, and a response to the tricolor +which Adet had recommended all French citizens to wear in 1794. + +On July 5 a resolution was moved to appoint a committee to consider the +expediency of declaring, by legislative act, the state of relations +between the United States and the French Republic. Mr. Gallatin asked if +a declaration of war could not be moved as an amendment, but the +speaker, Mr. Dayton, made no reply. Mr. Gallatin objected that Congress +could not declare a state of facts by a legislative act. But this view, +if tenable then, has long since been abandoned. In witness of which it +is only necessary to name the celebrated resolution of the Congress of +1865 with regard to the recognition of a monarchy in Mexico. July 6 the +House went into committee of the whole on the state of the Union to +consider a bill sent down by the Senate abrogating the treaty with +France. The bill was passed on the 16th by a vote of 47 ayes to 37 nays, +Gallatin voting in the negative. The House adjourned the same day. + +While thus engaged in debates which called into exercise his varied +information and displayed not only the extent of his learning but his +remarkable powers of reasoning and statement, Mr. Gallatin never lost +sight of reform in the administration of the finances of the government. +To the success of his efforts to hold the Treasury Department to a +strict conformity with his theory of administration, Mr. Wolcott, the +secretary, gave ample if unwilling testimony. To Hamilton he wrote on +April 5, 1798, "The management of the Treasury becomes more and more +difficult. The legislature will not pass laws in gross; their +appropriations are minute. Gallatin, to whom they yield, is evidently +intending to break down this department by charging it with an +impracticable detail." + +During these warm discussions Gallatin rarely lost his self-control. +Writing to his old friend Lesdernier at this period, he said, "You may +remember I am blessed with a very even temper; it has not been altered +by time or politics." + + * * * * * + +The third session of the fifth Congress opened on December 3, 1798. On +the 8th, when the President was expected, Lieutenant-General Washington +and Generals Pinckney and Hamilton entered the hall and took their +places on the right of the speaker's chair. They had been recently +appointed to command the army of defense. + +The President's speech announced no change in the situation. "Nothing," +he said, "is discoverable in the conduct of France which ought to change +or relax our measures for defense. On the contrary, to extend and +invigorate them is our true policy. An efficient preparation for war can +alone insure peace. It must be left to France, if she is indeed desirous +of accommodation, to take the requisite steps. The United States will +steadily observe the maxims by which they have hitherto been governed." +The reply to this patriotic sentiment was unanimously agreed to, and was +most grateful to Adams, who thanked the House for it as "consonant to +the characters of representatives of a great and free people." + +On December 27 a peculiar resolution was introduced to punish the +usurpation of the executive authority of the government of the United +States in carrying on correspondence with the government of any foreign +prince or state. Gallatin thought this resolution covered too much +ground. The criminality of such acts did not lie in their being +usurpations, but in the nature of the crime committed. There was no +authority in the Constitution for a grant of such a power to the +President. To afford aid and comfort to the enemy was treason, but +there was no war, and therefore no enemy. He claimed the right to +himself and others to do all in his power to secure a peace, even by +correspondence abroad, and he would not admit that the ground taken by +the friends of the measure was a proper foundation for a general law. A +committee was, however, appointed, in spite of this remonstrance, to +consider the propriety of including in the general act all persons who +should commence or carry on a correspondence, by a vote of 65 to 23. A +bill was reported on January 9, when Gallatin endeavored to attach a +proviso that the law should not operate upon persons seeking justice or +redress from foreign governments; but his motion was defeated by a vote +of 48 to 37. Later, however, a resolution of Mr. Parker, that nothing in +the act should be construed to abridge the rights of any citizen to +apply for such redress, was adopted by a vote of 69 yeas to 27 nays. On +this vote Harper voted yea. Griswold, Otis, Bayard, and Goodrich were +found among the nays. Gallatin succeeded in carrying an amendment +defining the bill, after which it was passed by a vote of 58 to 36. + +Towards the close of January, 1799, a bill was brought in authorizing +the President to discontinue the restraints of the act suspending +intercourse with the French West India Islands, whenever any persons in +authority or command should so request. This was to invite a secession +of the French colonies from the mother country. Gallatin deprecated any +action which might induce rebellion against authority, or lead to +self-government among the people of the islands who were unfit for it. +Moreover, such action would remove still further every expectation of an +accommodation with France. The bill was passed by a vote of 55 to 37. He +objected to the bill to authorize the President to suspend intercourse +with Spanish and Dutch ports which should harbor French privateers, as +placing an unlimited power to interdict commerce in the hands of the +executive. The bill was carried by 55 to 37. On the question of the +augmentation of the navy he opposed the building of the seventy-fours. + +In February Edward Livingston presented a petition from aliens, natives +of Ireland, against the Alien and Sedition laws. Numerous similar +petitions followed; one was signed by 18,000 persons in Pennsylvania +alone. To postpone consideration of the subject, the Federalists sent +these papers to a select committee, against the protests of Livingston +and Gallatin. This course was the more peculiar because of the reference +of petitions of a similar character in the month previous to the +committee of the whole. The Federalists were abusing their majority, and +precipitating their unexpected but certain ruin. One more effort was +made to repeal the offensive penal act; the constitutional objection was +again pleaded, but the repeal was defeated by a vote of 52 in the +affirmative. Mr. Gallatin opposed these laws in all their stages, but, +failing in this, persistently endeavored to make them as good as +possible before they passed. Jefferson later said that nothing could +obliterate from the recollection of those who were witnesses of it the +courage of Gallatin in the "Days of Terror."[8] The vote of thanks to +Mr. Dayton, the speaker, was carried by a vote of 40 to 22. On March 3, +1800, this Congress adjourned. + + * * * * * + +The sixth Congress met at Philadelphia on December 2, 1799. The +Federalists were returned in full majority. Among the new members of the +House, John Marshall and John Randolph appeared for Virginia. Theodore +Sedgwick was chosen speaker. President Adams came down to the House on +the 3d and made the usual speech. The address in reply, reported by a +committee of which Marshall was chairman, was agreed to without +amendment. Adams was again delighted with the very respectful terms +adopted at the "first assembly after a fresh election, under the strong +impression of the public opinion and national sense at this interesting +and singular crisis." At this session it was the sad privilege of +Marshall to announce the death of Washington, "the Hero, the Sage, and +the Patriot of America." In the shadow of this great grief, party +passion was hushed for a while. + +Gallatin again led the Republican opposition; Nicholas and Macon were +his able lieutenants. The line of attack of the Republicans was clear. +If war could be avoided, the growing unpopularity of the Alien and +Sedition laws would surely bring them to power. The foreign-born voter +was already a factor in American politics. In January the law providing +for an addition to the army was suspended. Macon then moved the repeal +of the Sedition Law. He took the ground that it was a measure of +defense. Bayard adroitly proposed as an amendment that "the offenses +therein specified shall remain punishable as at common law, provided +that upon any prosecution it shall be lawful for the defendant to give +as his defense the truth of the matter charged as a libel." Gallatin +called upon the chair to declare the amendment out of order, as intended +to destroy the resolution, but the speaker declined, and the amendment +was carried by a vote of 51 to 47. The resolution thus amended was then +defeated by a vote of 87 to 1. The Republicans preferred the odious act +in its original form rather than accept the Federal interpretation of +it. + +On February 11, 1800, a bill was introduced into Congress further to +suspend commercial intercourse with France. It passed the House after a +short debate by a vote of 68 yeas to 28 nays. On this bill the +Republican leaders were divided. Nicholas, Macon, and Randolph opposed +it; but Gallatin, separating from his friends, carried enough of his +party with him to secure its passage. Returned by the Senate with +amendments, it was again objected to by Macon as fatal to the interests +of the Southern States, but the House resolved to concur by a vote of 50 +to 36. + +In March the country was greatly excited by the news of an engagement on +the 1st of February, off Guadaloupe, between the United States frigate +Constellation, thirty-eight guns, and a French national frigate, La +Vengeance, fifty-four guns. The House of Representatives called on the +secretary of the navy for information, and, by 84 yeas to 4 nays, voted +a gold medal to Captain Truxton, who commanded the American ship. John +Randolph's name is recorded in the negative. + +Notwithstanding this collision, the relations of the United States and +France were gradually assuming a kindlier phase. The Directory had +sought to drive the American government into active measures against +England. Bonaparte, chosen First Consul, at once adopted a conciliatory +tone. Preparing for a great continental struggle, he was concentrating +the energies and the powers of France. In May Mr. Parker called the +attention of the House to this change of conduct in the French +government and offered a resolution instructing the Committee on +Commerce to inquire if any amendments to the Foreign Intercourse Act +were necessary. Macon moved to amend so that the inquiry should be +whether it were not expedient to repeal the act. Gallatin opposed the +resolution on the ground that it was highly improper to take any +measures at the present time which would change the defensive system of +the country. The resolution was negatived,--43 nays to 40 yeas. + +One singular opposition of Gallatin is recorded towards the close of the +session; the Committee on the Treasury Department reported an amendment +to the act of establishment, providing that the secretary of the +treasury shall lay before Congress, at the commencement of every +session, a report on finance with plans for the support of credit, etc. +Gallatin and Nicholas opposed this bill, because it came down from the +Senate, which had no constitutional right to originate a money bill; but +Griswold and Harper at once took the correct ground that it was not a +bill, but a report on the state of the finances, in which the Senate had +an equal share with the House. The bill was passed by a vote of 43 to +39. It is worthy of note that the first report on the state of the +finances communicated under this act was by Mr. Gallatin himself the +next year, and that it was sent in to the Senate. The House adjourned on +May 14, 1800. + + * * * * * + +The second session of the sixth Congress was held at the city of +Washington, to which the seat of government had been removed in the +summer interval. After two southerly migrations they were now +definitively established at a national capital. The session opened on +November 17, 1800. On the 22d President Adams congratulated Congress on +"the prospect of a residence not to be changed." The address of the +House in reply was adopted by a close vote. + +The situation of foreign relations was changed. The First Consul +received the American envoys cordially, and a commercial convention was +made but secured ratification by the Senate only after the elimination +of an article and a limitation of its duration to eight years. While the +bill was pending in the Senate, Mr. Samuel Smith moved to continue the +act to suspend commercial intercourse with France. Mr. Gallatin opposed +this motion; at the last session he had voted for this bill because +there was only the appearance of a treaty. Now that the precise state of +negotiation was known, why should the House longer leave this matter to +the discretion of the President? The House decided to reject the +indiscreet bill by a vote of 59 to 37. An effort was also made to repeal +a part of the Sedition Law, and continue the rest in force, but the +House refused to order the engrossing of the bill, taking wise counsel +of Dawson, who said that, supported by the justice and policy of their +measures, the approaching administration would not need the aid of +either the alien, sedition, or common law. The opponents of the bill +would not consent to any modification. The last scenes of the session +were of exciting interest. + +Freed from the menace of immediate war, the people of plain common sense +recognized that the friendship of Great Britain was more dangerous than +the enmity of France. They dreaded the fixed power of an organized +aristocracy far more than the ephemeral anarchy of an ill-ordered +democracy; they were more averse to class distinctions protected by law +than even to military despotism which destroyed all distinctions, and +they preferred, as man always has preferred and always will prefer, +personal to political equality. The Alien and Sedition laws had borne +their legitimate fruit. The foreign-born population held the balance of +power; a general vote would have shown a large Republican or, it is more +correct to say, anti-Federalist majority. But the popular will could not +be thus expressed. Under the old system each elector in the electoral +college cast his ballot for president and vice-president without +designation of his preference as to who should fill the first place. New +England was solid for Adams, who, however, had little strength beyond +the limits of this Federal stronghold. New York and the Southern States +with inconsiderable exceptions were Republican. Pennsylvania was so +divided in the legislature that her entire vote would have been lost but +for a compromise which gave to the Republicans one vote more than to the +Federalists. Adams being out of the question, the election to the first +place lay between Jefferson and Burr, both Republicans. The Federalists, +therefore, had their option between the two Republican candidates, and +the result was within the reach of that most detestable of combinations, +a political bargain. Mr. Gallatin's position in this condition of +affairs was controlling. His loyalty to Jefferson was unquestioned, +while Burr was the favorite of the large Republican party in New York +whose leaders were Mr. Gallatin's immediate friends and warm supporters. +Both Jefferson and Burr were accused of bargaining to secure enough of +the Federalist vote to turn the scale. That Mr. Jefferson did make some +sacrifice of his independence is now believed. Whether Mr. Gallatin was +aware of any such compromise is uncertain. If such bargain were made, +General Samuel Smith was the channel of arrangement, and in view of the +inexplicable and ignominious deference of Jefferson and Madison to his +political demands, there is little doubt that he held a secret power +which they dared not resist. Gallatin felt it, suffered from it, +protested against it, but submitted to it. + +The fear was that Congress might adjourn without a conclusion. To meet +this emergency Mr. Gallatin devised a plan of balloting in the House, +which he communicated to Mr. Jefferson and Mr. Nicholas. It stated the +objects of the Federalists to be, 1st, to elect Burr; 2d, to defeat the +present election and order a new one; 3d, to assume _executive_ power +during the interregnum. These he considers, and suggests alternative +action in case of submission or resistance on the part of the +Republicans. The Federalists, holding three branches of government, +viz., the presidency, a majority in the Senate, and a majority in the +House, might pass a law declaring that one of the great officers +designated by the Constitution should act as president pro tempore, +which would be constitutional. But while Mr. Gallatin in this paragraph +admitted such a law to be constitutional, in the next he argued that the +act of the person designated by law, or of the president pro tempore, +assuming the power is clearly "unconstitutional." By this ingenious +process of reasoning, to which the strict constructionists have always +been partial, it might be unconstitutional to carry out constitutional +law. The assumption of such power was therefore, Mr. Gallatin held, +usurpation, to be resisted in one of two ways; by declaring the interval +till the next session of Congress an interregnum, allowing all laws not +immediately connected with presidential powers to take their course, and +opposing a silent resistance to all others; or by the Republicans +assuming the executive power by a joint act of the two candidates, or by +the relinquishment of all claims by one of them. On the other hand, the +proposed outlines of Republican conduct were, 1st, to persevere in +voting for Mr. Jefferson; 2d, to use every endeavor to defeat any law on +the subject; 3d, to try to persuade Mr. Adams to refuse his consent to +any such law and not to call the Senate on any account if there should +be no choice by the House. + +In a letter written in 1848 Mr. Gallatin said that a provision by law, +that if there should be no election the executive power be placed in the +hands of some public officer, was a revolutionary act of usurpation +which would have been put down by force if necessary. It was threatened +that, if any man should be thus appointed President he should instantly +be put to death, and bodies of men were said to be organized, in +Maryland and Virginia, ready to march to Washington on March 4 for that +purpose. The fears of violence were so great that to Governor McKean of +Pennsylvania was submitted the propriety of having a body of militia in +readiness to reach the capital in time to prevent civil war. From this +letter of Mr. Gallatin, then the last surviving witness of the election, +only one conclusion can be drawn: that the Republicans would have +preferred violent resistance to temporary submission, even though the +officer exercising executive powers was appointed in accordance with +law. Fortunately for the young country there was enough good sense and +patriotism in the ranks of the Federalists to avert the danger. + +On the suggestion of Mr. Bayard it was agreed by a committee of sixteen +members, one from each State, that if it should appear that the two +persons highest on the list, Jefferson and Burr, had an equal number of +votes, the House should immediately proceed in their own chamber to +choose the president by ballot, and should not adjourn until an +election should have been made. On the first ballot there was a tie +between Jefferson and Burr; the deadlock continued until February 17, +when the Federalists abandoned the contest, and Mr. Jefferson received +the requisite number of votes. Burr, having the second number, became +vice-president. + +Mr. Gallatin's third congressional term closed with this Congress. In +his first term he asserted his power and took his place in the councils +of the party. In his second, he became its acknowledged chief. In the +third, he led its forces to final victory. But for his opposition, war +would have been declared against France, and the Republican party would +have disappeared in the political chasm. But for his admirable +management, Mr. Jefferson would have been relegated to the study of +theoretical government on his Monticello farm, or to play second fiddle +at the Capitol to the music of Aaron Burr. + +In the foregoing analysis of the debates and resolutions of Congress, +and the recital of the part taken in them by Mr. Gallatin, attention has +only been paid to such of the proceedings as concerned the +interpretation of the Constitution or the forms of administration with +which Mr. Gallatin interested himself. From the day of his first +appearance he commanded the attention and the respect of his fellows. +The leadership of his party fell to him as of course. It was not grasped +by him. He was never a partisan. He never waived his entire +independence of judgment. His ingenuity and adroitness never tempted him +to untenable positions. Hence his party followed him with implicit +confidence. Yet while the debates of Congress, imperfectly reported as +they seem to be in its annals, show the deference paid to him by the +Republican leaders, and display the great share he took in the +definition of powers and of administration as now understood, his name +is hardly mentioned in history. Jefferson and Madison became presidents +of the United States. They, with Gallatin, formed the triumvirate which +ruled the country for sixteen years. Gallatin was the youngest of the +three.[9] To this political combination Gallatin brought a knowledge of +constitutional law equal to their own, a knowledge of international law +superior to that of either, and a habit of practical administration of +which they had no conception. The Republican party lost its chief when +Gallatin left the House; from that day it floundered to its close. + +In the balance of opinion there are no certain weights and measures. The +preponderance of causes cannot be precisely ascertained. The freedom +which the people of the United States enjoy to-day is not the work of +any one party. Those who are descended from its original stock, and +those whom its free institutions have since invited to full membership, +owe that freedom to two causes: the one, formulated by Hamilton, a +strong, central power, which, deriving its force from the people, +maintains its authority at home and secures respect abroad; the other, +the spirit of liberty which found expression in the famous declaration +of the rights of man. This influence Jefferson represented. It taught +the equality of man; not equality before the law alone, nor yet +political equality, but that absolute freedom from class distinction +which is true social equality; in a word, mutual respect. But for +Hamilton we might be a handful of petty States, in discordant +confederation or perpetual war; but for Jefferson, a prey to the class +jealousy which unsettles the social relations and threatens the +political existence of European States. + +FOOTNOTES: + +[Footnote 4: Lord Sheffield to Mr. Abbott, November 6, 1812. +_Correspondence of Lord Colchester_, ii. 409.] + +[Footnote 5: Gallatin later described Jackson as he first saw him in his +seat in the House: "A tall, lank, uncouth looking individual, with long +locks of hair hanging over his brows and face, while a queue hung down +his back tied in an eelskin. The dress of this individual was singular, +his manners and deportment that of a backwoodsman." Bartlett's +_Reminiscences of Gallatin_.] + +[Footnote 6: The phrase "stop the wheels of government" originated with +"Peter Porcupine" (William Cobbett) and was on every tongue.] + +[Footnote 7: Charles C. Pinckney, when ambassador to France, 1796.] + +[Footnote 8: Jefferson to William Duane, March 28, 1811. Jefferson's +_Works_, vol. v. p. 574.] + +[Footnote 9: Jefferson was born in 1743, Madison in 1751, Gallatin in +1761.] + + + + +CHAPTER VI + +SECRETARY OF THE TREASURY + +_Funding_ + + +The material comfort of every people depends more immediately upon the +correct management of its finances than upon any other branch of +government. _Haute finance_, to use a French expression for which there +is no English equivalent, demands in its application the faculties of +organization and administration in their highest degree. The relations +of money to currency and credit, and their relations to industry and +agriculture, or in modern phrase of capital to labor, fall within its +scope. The history of France, the nation which has best understood and +applied true principles of finance, supplies striking examples of the +benefits a finance minister of the first order renders to his country, +and the dangers of false theories. The marvelous restoration of its +prosperity by the genius of Colbert, the ruin caused by the malign +sciolism of Law, are familiar to all students of political economy. Nor +has the United States been less favored. The names of Morris, Hamilton, +Gallatin, and Chase shine with equal lustre. + +Morris, the Financier of the Revolution, was called to the +administration of the money department of the United States government +when there was no money to administer. Before his appointment as +"Financier" the expenses of the government, military and civil, had been +met by expedients; by foreign loans, lotteries, and loan office +certificates; finally by continental money, or, more properly speaking, +bills of credit emitted by authority of Congress and made legal tender +by joint action of Congress and the several States. The relation of coin +to paper in this motley currency appears in the appendix to the "Journal +of Congress" for the year 1778, when the government paid out in fourteen +issues of paper currency, $62,154,842; in specie, $78,666; in French +livres, $28,525.[10] The power of taxation was jealously withheld by the +States, and Congress could not go beyond recommending to them to levy +taxes for the withdrawal of the bills emitted by it for their quotas, +_pari passu_ with their issue. When the entire scheme of paper money +failed, the necessary supplies for the army were levied in kind. In the +spring of 1781 the affairs of the Treasury Department were investigated +by a committee of Congress, and an attempt was made to ascertain the +precise condition of the public debt. The amount of foreign debt was +approximately reached, but the record of the domestic debt was +inextricably involved, and never definitely discovered. Morris soon +brought order out of this chaos. His plan was to liquidate the public +indebtedness in specie, and fund it in interest-bearing bonds. The Bank +of North America was established, the notes of which were soon preferred +to specie as a medium of exchange. Silver, then in general use as the +measure of value, was adopted as the single standard. The weight and +pureness of the dollar were fixed by law. The dollar was made the unit +of account and payment, and subdivisions were made in a decimal ratio. +This was the dollar of our fathers. Gouverneur Morris, the assistant of +the Financier, suggested the decimal computation, and Jefferson the +dollar as the unit of account and payment. The board of treasury, which +for five years had administered the finances in a bungling way, was +dissolved by Congress in the fall of 1781, and Morris was left in sole +control. Semi-annual statements of the public indebtedness were now +begun. The expenses of the government were steadily and inflexibly cut +down to meet the diminishing income. A loan was negotiated in Holland, +and, with the aid of Franklin, the amount of indebtedness to France was +established. + +The public debt on January 1, 1783, was $42,000,375, of which $7,885,088 +was foreign, bearing four and five per cent. interest; and $34,115,290 +was held at home at six per cent. The total amount of interest was +$2,415,956. No means were provided for the payment of either principal +or interest. In July of the previous year Morris urged the wisdom of +funding the public debt, in a masterly letter to the president of +Congress. On December 16 a sinking fund was provided for by a +resolution, which, though inadequate to the purpose, was at least a +declaration of principle. In February, 1784, Morris notified Congress of +his intended retirement from office. He may justly be termed the father +of the American system of finance. In his administration he inflexibly +maintained the determination, with which he assumed the office, to apply +the public funds to the purpose to which they were appropriated. He +declared that he would "neither pay the interest of our debts out of the +moneys which are called for to carry on the war, nor pay the expenses of +the war from the funds which are called for to pay the interest of our +debts." One new feature of Morris's administration was the beginning of +the sale of public lands. + +On the retirement of Mr. Morris, November, 1784, a new board of treasury +was charged with the administration of the finances, and continued in +control until September 30, 1788, when a committee, raised to examine +into the affairs of the department, rendered a pitiful report of +mismanagement for which the board had not the excuse of their +predecessors during the war. They had only to observe the precepts which +Morris had enunciated, and to follow the methods he had prescribed, with +the aid of the assistants he had trained. But the taxes collected had +not been covered into the Treasury by the receivers. Large sums +advanced for secret service were not accounted for; and the entire +system of responsibility had been disregarded. John Adams attributed all +the distresses at this period to "a downright ignorance of the nature of +coin, credit and circulation;" an ignorance not yet dispelled. More +truly could he have said that our distresses arose from willful neglect +of the principle of accountability in the public service. + +The first Congress under the new Constitution met at New York on March +4, 1789, but it was not until the autumn that the executive +administration of the government was organized by the creation of the +three departments: State, Treasury, and War. + +The bill establishing the Treasury Department passed Congress on +September 2, 1789. Hamilton was appointed secretary by Washington on +September 11. On September 21 the House directed the secretary to +examine into and report a financial plan. On the assembling of Congress, +June 14, 1790, Hamilton communicated to the House his first report, +known as that on public credit. The boldness of Hamilton's plan startled +and divided the country. Funding resolutions were introduced into the +House. The first, relating to the foreign debt, passed unanimously; the +second, providing for the liquidation of the domestic obligations, was +sharply debated, but in the end Hamilton's scheme was adopted. The +resolutions providing for the assumption of the state debts, which he +embodied in his report, aroused an opposition still more formidable, and +it was not until August 4 that by political machinery this part of his +plan received the assent of Congress. To provide for the interest on the +debt and the expenses of the government, the import and navigation +duties were raised to yield the utmost revenue available; but, in the +temper of Congress, the excise law was not pressed at this session. The +secretary had securely laid the foundations of his policy. Time and +sheer necessity would compel the completion of his work in essential +accord with his original design. The President's message at the opening +of the winter session added greatly to the prestige of Hamilton's policy +by calling attention to the great prosperity of the country and the +remarkable rise in public credit. The excise law, modified to apply to +distilled spirits, passed the House in January. The principle of a +direct tax was admitted. On December 14, 1790, in obedience to an order +of the House requiring the secretary to report further provision for the +public credit, Hamilton communicated his plans for a national bank. Next +in order came the establishment of a national mint. Thus in two sessions +of Congress, and in the space of little more than a year from the time +when he took charge of the Treasury, Hamilton conceived and carried to +successful conclusion an entire scheme of finance. + +One more measure in the comprehensive system of public credit crowned +the solid structure of which the funding of the debt was the +cornerstone. This was the establishment of the sinking fund for the +redemption of the debt. Hamilton conformed his plan to the maxim, which, +to use his words, "has been supposed capable of giving immortality to +credit, namely, that with the creation of debts should be incorporated +the means of extinguishment, which are twofold. 1st. The establishing, +at the time of contracting a debt, funds for the reimbursement of the +principal, as well as for the payment of interest within a determinate +period. 2d. The making it a part of the contract, that the fund so +established shall be inviolably applied to the object." The ingenuity +and skill with which this master of financial science managed the +Treasury Department for more than five years need no word of comment. +Nor do they fall within the scope of this outline of the features of his +policy. His reports are the textbook of American political economy. +Whoever would grasp its principles must seek them in this limpid source, +and study the methods he applied to revenue and loans. Well might +Webster say of him in lofty praise, "He smote the rock of national +resources, and abundant streams of revenue gushed forth; he touched the +dead corpse of Public Credit, and it sprung upon its feet." + +On the resignation of Hamilton, January 31, 1795, Washington invited +Wolcott, who was familiar with the views of Hamilton and on such +intimate terms with him that he could always have his advice in any +difficult emergency, to take the post. Wolcott had been connected with +the department from its organization, first as auditor, afterwards as +comptroller of the Treasury. He held the Treasury until nearly the end +of Adams's administration. On November 8, 1800, upon the open breach +between Mr. Adams and the Hamilton wing of the Federal party, Wolcott, +whose sympathies were wholly with his old chief, tendered his +resignation, to take effect at the close of the year. On December 31 Mr. +Samuel Dexter was appointed to administer the department. But the days +of the Federal party were now numbered: it fell of its own dissensions, +"wounded in the house of its friends." + +There is little in the administration of the finances by Wolcott to +attract comment. He managed the details of the department with integrity +and skill. On his retirement a committee of the House on the condition +of the Treasury was appointed. No similar examination had been made +since May 22, 1794. On January 28, 1801, Mr. Otis, chairman of the +committee, submitted the results of the investigation in an unanimous +report that the business of the Treasury Department had been conducted +with regularity, fidelity, and a regard to economy; that the +disbursements of money had always been made pursuant to law, and +generally that the financial concerns of the country had been left by +the late secretary in a state of good order and prosperity. During his +six years of administration of the finances Wolcott negotiated six +loans, amounting in all to $2,820,000. The emergencies were +extraordinary,--the expenses of the suppression of the Whiskey +Insurrection in 1794, and the sum required to effect a treaty of peace +with Algiers in 1795. To fund these sums Mr. Wolcott had recourse to an +expedient which marked an era in American finance. This was the creation +of _new stock_, subscribed for at home. No loan had been previously +placed by the government among its own citizens. Between 1795 and 1798, +four and a half, five, and six per cent. stocks were created. In 1798 +the condition of the country was embarrassing. There was a threatening +prospect of war. Foreign loans were precarious and improvident; the +market rate of interest was eight per cent. Under these circumstances an +eight per cent. stock was created, not redeemable until 1809. An Act of +March 3, 1795, provided for vesting in the sinking fund the surplus +revenues of each year. + +In the formation of the first Republican cabinet Mr. Gallatin was +obviously Mr. Jefferson's first choice for the Treasury. The appointment +was nevertheless attended with some difficulties of a political and +party nature. The paramount importance of the department was a legacy of +Hamilton's genius. Its possession was the Federalist stronghold, and the +Senate, which held the confirming power, was still controlled by a +Federalist majority. To them Mr. Gallatin was more obnoxious than any +other of the Republican leaders. In the few days that he held a seat in +the Senate (1793) he offended Hamilton, and aroused the hostility of the +friends of the secretary by a call for information as to the condition +of the Treasury. As member of Congress in 1796 he questioned Hamilton's +policy, and during Adams's entire administration was a perpetual thorn +in the sides of Hamilton's successors in the department. The day after +his election, February 18, 1801, Mr. Jefferson communicated to Mr. +Gallatin the names of the gentlemen he had already determined upon for +his cabinet, and tendered him the Treasury. The only alternative was +Madison; but he, with all his reputation as a statesman and party +leader, was without skill as a financier, and in the debate on the +Funding Bill in 1790 had shown his ignorance in the impracticability of +his plans. If Jefferson ever entertained the thought of nominating +Madison to the Treasury, political necessity absolutely forbade it. That +necessity Mr. Gallatin, by his persistent assaults on the financial +policy of the Federalists, had himself created, and he alone of the +Republican leaders was competent to carry out the reforms in the +administration of the government, and to contrive the consequent +reduction in revenue and taxation, which were cardinal points of +Republican policy. Public opinion had assigned Gallatin to the post, and +the newspapers announced his nomination before Mr. Jefferson was +elected, and before he had given any indication of his purpose. To his +wife Mr. Gallatin expressed some doubt whether his abilities were equal +to the office, and whether the Senate would confirm him, and said, +certainly with sincerity, 'that he would not be sorry nor hurt in his +feelings if his nomination should be rejected, for exclusively of the +immense responsibility, labor, etc., attached to the intended office, +another plan which would be much more agreeable to him and to her had +been suggested, not by his political friends, but by his New York +friends.' He was by no means comfortable in his finances, and he had +already formed a plan of studying law and removing to New York. He had +made up his mind to leave the western country, which would necessarily +end his congressional career. His wife was forlorn in his absence, and +suffered so many hardships in her isolated residence that he felt no +reluctance to the change. To one of his wife's family he wrote at this +time:-- + + "As a political situation, the place of secretary of the treasury + is doubtless more eligible and congenial to my habits; but it is + more laborious and responsible than any other, and the same + industry which will be necessary to fulfill its duties, applied to + another object, would at the end of two years have left me in the + possession of a profession which I might have exercised either in + Philadelphia or New York. But our plans are all liable to + uncertainty, and I must now cheerfully undertake that which had + never been the object of my ambition or wishes." + +Well might he hesitate as he witnessed the distress which had overtaken +the great party which for twelve years had held the posts of political +honor. Fortunately, perhaps for himself and certainly for his party and +the country, the proposition came at a time when he had definitively +determined upon a change of career. His situation was difficult. The +hostility of the Federal senators, and the great exertions which were +being made to defeat the appointment, led him to the opinion that, if +presented on March 4, it would be rejected. There was the alternative of +delay until after that date, which would involve a postponement of the +confirmation until the meeting of Congress in December, but there was no +certainty that it would then be ratified. Meanwhile he would be +compelled to remove to Washington at some sacrifice and expense. He +therefore at first positively refused "to come in on any terms but a +confirmation by the Senate first given." He was finally induced to +comply with the general wish of his political friends. The appointment +was withheld by the President that the feeling in the Senate might be +judged from its action on the rest of the nominations submitted. They +were all approved, and Mr. Dexter consented to hold over until his +successor should be appointed. Thus Mr. Gallatin's convenience was +entirely consulted. He remained in Washington a few days to confer with +the President as to the general conduct of the administration, and on +March 14 set out for Fayette to put his affairs in order and to bring +his wife and family to Washington. On May 14 Jefferson wrote to Macon, +"The arrival of Mr. Gallatin yesterday completed the organization of our +administration." + +Mr. Gallatin soon realized the magnitude of his task. He did nothing by +halves. To whatever work he had to do, he brought the best of his +faculty. No man ever better deserved the epithet of "thorough." He +searched till he found the principle of every measure with which he had +concern and understood every detail of its application. This perfect +knowledge of every subject which he investigated was the secret of his +political success. As a committee man, he was incomparable. No one could +be better equipped for the direction of the Treasury Department than he, +but he was not satisfied with direction; he would manage also; and he +went to the work with untiring energy. A quarter of a century later he +said of it, in a letter to his son, "To fill that office in the manner I +did, and as it ought to be filled, is a most laborious task and labor of +the most tedious kind. To fit myself for it, to be able to understand +thoroughly, to embrace and control all its details, took from me, during +the two first years I held it, every hour of the day and many of the +night and had nearly brought on a pulmonary complaint. I filled the +office twelve years and was fairly worn out." + +Mr. Gallatin first drew public attention to his knowledge of finance in +the Pennsylvania legislature. An extract from his memorandum of his +three years' service gives the best account of this incident. In it +appear the carefully matured convictions which he inflexibly maintained. + + "The report of the Committee of Ways and Means of the session + 1790-1791 (presented by Gurney, chairman) was entirely prepared by + me, known to be so, and laid the foundation of my reputation. I was + quite astonished at the general encomiums bestowed upon it, and was + not at all aware that I had done so well. It was perspicuous and + comprehensive; but I am confident that its true merit, and that + which gained me the general confidence, was its being founded in + strict justice without the slightest regard to party feelings or + popular prejudices. The principles assumed, and which were carried + into effect, were the immediate reimbursement and extinction of the + state paper money, the immediate payment in specie of all the + current expenses or warrants on the Treasury (the postponement and + uncertainty of which had given rise to shameful and corrupt + speculations), and provision for discharging, without defalcation, + every debt and engagement previously recognized by the State. In + conformity with this, the State paid to its creditors the + difference between the nominal amount of the state debt assumed by + the United States and the rate at which it was funded by the act of + Congress. + + "The proceeds of the public lands, together with the arrears, were + the fund which not only discharged all the public debts, but left a + large surplus. The apprehension that this would be squandered by + the Legislature was the principal inducement for chartering the + Bank of Pennsylvania with a capital of two millions of dollars, of + which the State subscribed one half. This and similar subsequent + investments enabled Pennsylvania to defray out of the dividends all + the expenses of government without any direct tax during the forty + ensuing years, and till the adoption of the system of internal + improvement, which required new resources." + +This report was printed in the Journal of the House, February 8, 1791. +The next year he made a report on the same subject which was printed +February 22, 1792. + +But his equal grasp of larger subjects was shown in his sketch of the +finances of the United States, which he published in November, 1796. It +presents under three sections the revenues, the expenses, and the debts +of the United States, each subdivided into special heads. The arguments +are supported by elaborate tabular statements. No such exhaustive +examination had been made of the state of the American finances. The one +cardinal principle which he laid down was the extinguishment of debt. He +severely criticised Hamilton's methods of funding, and outlined those +which he himself later applied. He charged upon Hamilton direct +violations of law in the application of money, borrowed as principal, to +the payment of interest on that principal. The public funds he regarded +as three in number: 1st, the sinking fund; 2d, the surplus fund; 3d, the +general fund. + +In July, 1800, Mr. Gallatin published a second pamphlet, "Views of the +Public Debt, Receipts, and Expenditures of the United States," the +object of the inquiry being to ascertain the result of the fiscal +operations of the government under the Constitution. The entire field of +American finance is examined from its beginning. He severely condemns +the mode of assumption of the state debts in Hamilton's original plan, +and no doubt his strictures are technically correct. The debts assumed +for debtor States were not due by the United States, nor was there any +moral reason for their assumption. But the assumption was sound +financial policy, and all the cost to the nation was amply repaid by the +order which their assumption drew out of chaos, and the vigor given to +the general credit by the strengthening of that of its parts. The course +of the Federalists and Republicans on this question shows that the +former had at heart the welfare of all the States, while the latter +confined their interest to their own body politic. + +Had Mr. Gallatin never penned another line on finance, these two +remarkable papers would place him in the first rank of economists and +statisticians. There are no errors in his figures, no flaws in his +reasoning, no faults in his deductions. In construction and detail, as +parts of a complete financial system of administration, they are beyond +criticism. Opinions may differ as to the ends sought, but not as to the +means to those ends. + +For a long period Mr. Gallatin found no more time for essays; he was +now to apply his methods. These may be traced in his printed treasury +reports, which are lucid and instructive. He was appointed to the +Treasury on May 14, 1801, as appears by the official record in the State +Department. Before he entered on the duties of the office he submitted +to Mr. Jefferson, March 14, 1801, some rough sketches of the financial +situation, and suggested the general outlines of his policy. He insisted +upon a curtailment in the appropriations for the naval and military +establishments, the only saving adequate to the repeal of all internal +duties; and upon the discharge of the foreign debt within the period of +its obligation. He estimated that the probable receipts and expenditures +for the year 1801 would leave a surplus of more than two millions of +dollars applicable to the redemption of the debt. + +On taking personal charge of the Treasury Department, his first business +was to get rid of the arrears of current business which had accumulated +since the retirement of Wolcott; his next, to perfect the internal +revenue system, so far as it could be remedied without new legislation. +The entire summer of 1801 was passed in "arranging, or rather procuring +correct statements amongst the Treasury documents," a task of such +difficulty that he was unwilling, on November 15, to arrive at an +estimate of the revenue within half a million, or to commit himself to +any opinion as to the feasibility of abolishing the internal revenues. +In his "notes" submitted to Jefferson upon the draft of his first +message, there are several passages of interest which show Mr. +Gallatin's logical habit of searching out economic causes. Under the +head of finances, he remarks, "The revenue has increased more than in +the same ratio with population: 1st, because our wealth has increased in +a greater ratio than population; 2d, because the seaports and towns, +which consume imported articles much more than the country, have +increased in a greater proportion." The final paragraph in these "notes" +is a synopsis of his entire scheme of administration. + + "There is but one subject not mentioned in the message which I feel + extremely anxious to see recommended. It is generally that Congress + should adopt such measures as will effectually guard against + misapplications of public moneys, by making specific appropriations + whenever practicable; by providing against the application of + moneys drawn from the Treasury under an appropriation to any other + object or to any greater amount than that for which they have been + drawn; by limiting discretionary power in the application of that + money; whether by heads of department or by any other agents; and + by rendering every person who receives public moneys from the + Treasury as immediately, promptly, and effectually accountable to + the accounting officer (the comptroller) as practicable. The great + characteristic, the flagrant vice, of the late administration has + been total disregard of laws, and application of public moneys by + the Department to objects for which they were not appropriate." + +Outlines for a system of specific appropriations were inclosed. + +That the mission of Jefferson's administration was the reduction of the +debt, Gallatin set forth in his next letter of November 16, 1801. "I am +firmly of opinion that if the present administration and Congress do not +take the most effective measures for that object, the debt will be +entailed on us and the ensuing generations, together with all the +systems which support it, and which it supports." On the other hand he +says, "If this administration shall not reduce taxes, they never will be +permanently reduced." To reduce both the debt and the taxes was as much +a political as a financial problem. To solve it required the reduction +to a minimum of the departments of War and Marine. But Mr. Jefferson was +not a practical statesman. His individuality was too strong for much +surrender of opinion. He stated the case very mildly when he wrote in +his retirement that he sometimes differed in opinion from some of his +friends, from those whose views were as "pure and as sound as his own." +It was not his habit to consult his entire cabinet except on general +measures. The heads of each department set their views before him +separately. Under this system Mr. Gallatin was never able to realize +that harmonious interdependence of departments and subordination of ways +to means which were his ideal of cabinet administration. + +The successful application of Mr. Gallatin's plan would have +subordinated all the executive departments to the Treasury. The theory +was perfect, but it took no account of the greed of office, the +jealousies of friends, the opposition of enemies, and the unknown factor +of foreign relations. A speck on the horizon would cloud the peaceful +prospect, a hostile threat derange the intricate machinery by which the +delicate financial balance was maintained. Mr. Gallatin was fast +realizing the magnitude of his undertaking, in which he was greatly +embarrassed by the difficulty of finding faithful examining clerks, on +whose correctness and fidelity a just settlement of all accounts +depends. The number of independent offices attached to the Treasury made +the task still more arduous. He wrote to Jefferson at this time, "It +will take me twelve months before I can thoroughly understand every +detail of all these several offices. Current business and the more +general and important duties of the office do not permit me to learn the +lesser details, but incidentally and by degrees. Until I know them all I +dare not touch the machine." One of the acquirements which he considered +indispensable for a secretary of the treasury was a "thorough knowledge +of book-keeping." The recollection of his persistent demands for +information from Hamilton and Wolcott during his congressional career +would have stung the conscience of an ordinary man. But Gallatin was not +an ordinary man. He asked nothing of others which he himself was not +willing to perform. His ideal was high, but he reached its summit. It +seems almost as if, in his persistent demand that money accountability +should be imposed by law upon the Treasury Department, he sought to set +the measure of his own duty, while in the requirement that it should be +extended to the other departments, he pledged himself to the perfect +accomplishment of that duty in his own. + +In his first report to Congress,[11] made December 18, 1801, Mr. +Gallatin submitted his financial estimate for the year 1802. + +REVENUE. EXPENDITURES. + +Imposts $9,500,000 Int. on debts. $7,100,000 +Lands } 450,000 Civil List 980,000 +Postages } Army 1,420,000 +Internal Rev. 650,000 Navy 1,100,000 + ---------- ---------- + $10,600,000 $10,600,000 + +Mr. Wolcott, in his last report to the Commissioners of the Sinking +Fund, stated the amount in the Treasury to its credit at $500,718. Mr. +Gallatin denied that there was any such surplus, but said that instead +of a credit balance the treasury books showed a deficiency of $930,128 +on the aggregate revenue from the establishment of the government to the +close of the year 1799. Elliott, in his "Funding System," said +concerning this once vexed controversy, that it was difficult to +reconcile such a diversity of opinion on so intricate a subject; and +concerning the official statements of Hamilton and Wolcott, that it was +hardly to be credited that they were so superficial or imperfect. Mr. +Gallatin himself furnishes the apology that the difference might arise +from "entries made or omitted on erroneous principles." To the Federal +financiers the palliation was as offensive as the charge, and rankled +long and sore. If it were not possible, when Elliott made an +examination, to arrive at the precise facts, it is certainly now a +secret as secure from discovery as the lost sibylline leaves. + +Mr. Gallatin stated the debt of the United States-- + +On January 1, 1801, at $80,161,207.60 +On January 1, 1802, at 77,881,890.29 + --------------- +Reduction $2,279,317.31 + +This difference was the amount of principal paid during the year 1801, +the result of the management of his predecessors. On December 18, 1801, +Mr. Gallatin entered upon an examination of the time in which the total +debt might be discharged, and showed that, by the annual application of +$7,300,000 to the principal and interest the debt would in eight years, +_i. e._ on January 1, 1810, be reduced (by the payment of $32,289,000 of +the principal) to $45,592,739, and that the same annual sum of +$7,300,000 would discharge the whole debt by the year 1817. The revenues +of the Union he found sufficient to defray all the current expenses. In +his report to Congress at the beginning of the session he designated +this sum of $7,300,000 to be set aside from the revenues, and Congress +gave the requisite authority. An extract from a tabular statement +submitted to the House of Representatives, April 16, 1810, will show how +nearly Mr. Gallatin approached the result at which he aimed, and the +nature of the embarrassment he encountered on the path. + +------+--------------+--------------+---------------+-------------+ + | Amount of | Payments | Debt | Annual | +Years.| Public Debt | on | Contracted. | Increase. | + | January 1st. | Principal. | | | +------+--------------+--------------+---------------+-------------+ +1802 |$80,712,632.25| $3,657,945.95| - | - | +1803 | 77,054,686.30| 5,627,565.42| $15,000,000* |$9,372,434.58| +1804 | 86,427,120.88| 4,114,970.38| - | - | +1805 | 82,312,150.50| 6,588,879.84| - | - | +1806 | 75,723,270.66| 6,504,872.02| - | - | +1807 | 69,218,398.64| 4,022,080.67| - | - | +1808 | 65,196,317.97| 8,173,125.88| - | - | +1809 | 57,023,192.09| 3,850,889.77| - | - | +1810 | 53,172,302.32| - | - | - | +------+--------------+--------------+---------------+-------------+ +----------------- + Annual + Decrease. +----------------- + $3,657,948.95 + - + 4,114,970.38 + 6,588,879.84 + 6,504,872.02 + 4,022,080.67 + 8,173,125.88 + 3,850,889.77 + - +----------------- + * Louisiana purchase. + +1802 $80,712,632.25 Decrease $36,912,764.51 +1810 53,172,302.32 Increase 9,372,434.58 + -------------- -------------- + $27,540,329.93 Decrease in 8 yrs. $27,540,329.93 + +From this it appears that, notwithstanding the extraordinary increase of +the principal by the amount of the Louisiana purchase, Mr. Gallatin +contrived a reduction of $27,540,329. But if to this be added the true +reduction for the year 1803, namely, the difference between the +Louisiana debt, $15,000,000, and the increase for that year, by reason +of that purchase, $9,372,434, say $6,627,565, the reduction is found to +be, and but for that disturbing cause would have reached, $34,167,895, +a sum exceeding by $1,878,895 that estimated by Mr. Gallatin in his +report of 1801 as the amount of eight years' reduction, namely, +$32,289,000. + +The ways and means of this remarkable example of financial management +appear in the following extracts from Elliott's synoptical statement +(table given on page 194). + +The purchase of Louisiana was the extraordinary financial measure of +Jefferson's first presidential term. Though the new obligation for the +consideration money, fifteen millions of dollars, was a large sum in +proportion to the total existing debt of the United States, it did not +in the least derange Gallatin's plan of funding and reduction, but was +brought without friction within his general scheme. With the terms of +the contract Gallatin had nothing to do. They were arranged by +Livingston and Monroe, the American commissioners; the intervention of +the houses of Hope and the Barings being a part of the understanding +between the commissioners and the French government. These bankers +engaged to make the money payments and take six per cent. stock of the +United States at seventy-eight and one half cents on the dollar. With +this price Mr. Gallatin does not seem to have been satisfied, though of +course he interposed no objection to the terms; but to Jefferson he +wrote, August 31, 1803, that the low price at which that stock had been +sold, was "not ascribable to the state of public credit nor to any act +of your administration, and particularly of the Treasury Department;" +and he adds in a postscript, "at that period our threes were in England +worth one per cent. more at market than the English." + + +RECEIPTS. + +------------------+----------------+---------------+-------------+ +Four years | Customs. | Internal | Direct | +ending | | Revenue. | Taxes. | +December 31. | | | | +------------------+----------------+---------------+-------------+ +Adams, 1800 | $30,347,093.62 | $2,808,382.37 | $734,223.97 | + +--------------- +-------------- +------------ + +Jefferson, 1804 | 44,766,997.61 | 1,936,053.30 | 862,986.46 | + 1808 | 59,813,257.40 | 63,110.73 | 131,539.54 | + +--------------- +-------------- +------------ + + | 104,580,255.01 | 1,999,146.03 | 994,526.00 | +------------------+----------------+---------------+-------------+ + +------------------+-------------+--------------+---------------+ +Four years | Postage. | Public | Loans and | +ending | | Lands. | Treasury | +December 31. | | | Notes. | +------------------+-------------+--------------+---------------+ +Adams, 1800 | $223,000.00 | $95,947.46 | $7,055,791.25 | + +-------------+--------------+---------------+ +Jefferson, 1804 | 157,427.26 | 1,009,556.56 | 25,255.00 | + 1808 | 60,074.90 | 2,419,541.86 | 179,534.81 | + +-------------+--------------+---------------+ + | 217,502.10 | 3,429,098.42 | 205,089.81 | +------------------+-------------+--------------+---------------+ + +------------------+--------------+----------------+---------------- +Four years | Dividends | Miscellaneous. | Total. +ending | and sales of | | +December 31. | Bank Stock. | | +------------------+--------------+-------------- -+---------------- +Adams, 1800 | $607,220.00 | $168,971.76 | $42,040,630.45 + +--------------+----------------+---------------- +Jefferson, 1804 | 1,416,360.00 | 672,148.72 | 50,846,784.91 + 1808 | -- | 85,782.03 | 62,758,841.27 + +--------------+----------------+---------------- + | 1,416,360.00 | 757,930.75 | 113,605,626.18 +------------------+--------------+----------------+---------------- + + +EXPENDITURES. + + +------------------+---------------+---------------+--------------+ +Four years | Civil List. | Foreign |Miscellaneous.| +ending | | Intercourse | | +December 31. | | including | | + | | Awards. | | +------------------+---------------+---------------+--------------+ +Adams, 1800 | $2,329,433.08 | $1,793,879.57 | $621,633.37 | + +---------------+---------------+--------------+ +Jefferson, 1804 | 2,297,648.17 | 3,144,093.00 | 1,169,601.87 | + 1808 | 2,616,772.77 | 5,441,669.24 | 1,721,876.87 | + +---------------+---------------+--------------+ + | 4,914,420.94 | 8,585,762.24 | 2,891,478.74 | +------------------+---------------+---------------+--------------+ + +------------------+---------------+-------------+--------------+ +Four years | Military | Pensions. | Indian | +ending | Forts, etc. | | Department. | +December 31. | | | | + | | | | +------------------+---------------+-------------+--------------+ +Adams, 1800 | $8,076,750.71 | $356,677.06 | $99,299.88 | + +---------------+-------------+--------------+ +Jefferson, 1804 | 4,549,572.11 | 301,968.66 | 279,500.00 | + 1808 | 6,126,656.97 | 316,806.16 | 849,700.00 | + +---------------+-------------+--------------+ + | 10,676,229.08 | 618,774.82 | 1,129,200.00 | +------------------+---------------+-------------+--------------+ + +------------------+----------------+----------------+---------------- +Four years | Naval | Public Debt. | Total. +ending | Establishment. | | +December 31. | | | + | | | +------------------+----------------+----------------+---------------- +Adams, 1800 | $8,070,777.52 | $18,957,962.69 | $40,306,413.88 + +----------------+----------------+---------------- +Jefferson, 1804 | 5,432,049.15 | 32,258,658.68 | 49,433,091.64 + 1808 | 6,853,673.79 | 32,927,739.85 | 56,854,985.65 + +----------------+----------------+---------------- + | 12,285,722.94 | 65,186,398.53 | 106,288,077.29 +------------------+----------------+----------------+---------------- + +Adams--Receipts $42,040,630.45 +Adams--Expenditures 40,306,413.88 + -------------- +Under Wolcott, Secretary 1,734,216.57 + +Jefferson--Receipts $113,605,626.18 +Jefferson--Expenditures 106,288,077.29 + -------------- +Under Gallatin, Secretary 7,317,584.89[12] + +[**Transcriber's Note: Some of the numbers in the above tables do not +add up, but reflect the actual numbers given in the original document.] + +The arrangements being completed, Jefferson called Congress together in +October, 1803, for a ratification of the treaty; the commissioners, by +virtue of the authority granted them, had already guaranteed the advance +by the Barings of ten million livres ($2,000,000). On October 25, 1803, +Gallatin made a report to Congress on the state of the finances. It +showed a reduction of the public debt in the two and one half years of +his management, April 1, 1801, to September 30, 1803, of $12,702,404. +The only question to be considered was whether any additional revenues +were wanted to provide for the _new debt_ which would result from the +purchase of Louisiana. + +The sum called for by treaty, fifteen millions, consisted of two items: +1st, $11,250,000 payable to the government of France in a stock bearing +an interest of six per cent. payable in Europe, and the principal to be +discharged at the Treasury of the United States; 2d, a sum which could +not exceed, but might fall short of, $3,750,000, payable in specie at +the Treasury of the United States to American citizens having claims of +a certain description upon the government of France. + +It is interesting here to note Mr. Gallatin's distinction between the +place of payment of interest and of principal as a new departure in +American finance. The principal and interest of foreign loans had up to +that period been paid abroad. But a United States stock was an +obligation of a different character and properly payable at home. In the +large negotiations which Secretary Chase had in 1862 with the Treasury +Note Committee of the Associated Banks,[13] this policy was matter of +grave debate. The determined American pride of Mr. Chase prevailed, and +both the principal _and interest_ of the loans created were made payable +at the Treasury of the United States. These may be small matters in +their financial result, but are grave points in national policy. + +The only financial legislation necessary to carry out the Louisiana +purchase was a provision that $700,000 of the duties on merchandise and +tonnage, a sum sufficient to pay the interest on the new debt, be added +to the annual permanent appropriation for the sinking fund, making a sum +of $8,000,000 in all. + +The new debt would, Gallatin said, neither impede nor retard the payment +of the principal of the old debt; and the fund would be sufficient, +besides paying the interest on both, to discharge the principal of the +old debt before the year 1818, and of the new, within one year and a +half after that year. In this expectation he relied solely on the +maintenance of the revenue at the amount of the year 1802, and in no way +depended on its probable increase as a result of neutrality in the +European war; nor on any augmentation by reason of increase of +population or wealth, nor the effect which the opening of the +Mississippi to free navigation might be expected to have on the sales of +public lands and the general resources of the country. + +In his report of December 9, 1805, Mr. Gallatin reviewed the results of +his first four years of service, April 1, 1801, to March 31, 1805. + + RECEIPTS. + +Duties on tonnage and importation of +foreign merchandise $45,174,837.22 + +From all other sources 5,492,629.82 + -------------- + $50,667,467.04 + ============== + + EXPENDITURES. + +Civil list and miscellaneous $3,786,094.79 + +Intercourse with foreign nations 1,071,437.84 + +Military establishment and Indian department 4,405,192.26 + +Naval establishment 4,842,635.15 + +Interest on foreign debt 16,278,700.95 + +Reimbursement of debt from surplus +revenue 19,281,446.57 + -------------- + $49,665,507.56 + +The Louisiana purchase and the admirable manner of its financial +arrangement were important factors in Jefferson's reëlection. Mr. +Gallatin was now sure of four years, at least, for the prosecution of +his plan of redemption of the public debt. Estimating that with the +increase of population at the rate of thirty-five per cent. in ten +years, and the corresponding growth of the revenue, he could count upon +a net annual surplus of $5,500,000, he now proposed to convert the +several outstanding obligations into a six per cent. stock amounting, +January 1, 1809, to less than _forty millions of dollars_, which the +continued annual appropriation of $8,000,000 would, besides paying the +interest on the Louisiana debt, reimburse within a period of less than +seven years, or before the end of the year 1815. After that year no +other incumbrance would remain on the revenue than the interest and +reimbursement of the Louisiana stock, the last payment of which in the +year 1821 would complete the final extinguishment of the public debt. +The conversion act was passed February 1, 1807, and books were opened on +July 1 following. On February 27, 1807, Mr. Gallatin made a special +report on the state of the debt from 1801 to 1807, showing a diminution, +notwithstanding the Louisiana purchase, of $14,260,000. + +In the summer of 1807 war with England seemed inevitable. Gallatin had +the satisfaction to report a full treasury,--the amount of specie +October 7, 1807, reaching over eight and one half millions,--and an +annual unappropriated surplus, which could be confidently relied upon, +of at least three millions of dollars. On this subject his remarks in +the light of subsequent history are of extreme interest. While +refraining from any recommendations as to the application of this +surplus, either to "measures of security and defense," or to "internal +improvements which, while increasing and diffusing the national wealth, +will strengthen the bonds of union," as "subjects which do not fall +within the province of the Treasury Department," he proceeds to consider +the advantage of an accumulation in the Treasury. In this report he +rises with easy flight far above the purely financial atmosphere into +the higher plane of political economy. + + "A previous accumulation of treasure in time of peace might in a + great degree defray the extraordinary expenses of war and diminish + the necessity of either loans or additional taxes. It would provide + during periods of prosperity for those adverse events to which + every nation is exposed, instead of increasing the burthens of the + people at a time when they are least able to bear them, or of + impairing, by anticipations, the resources of ensuing + generations.... + + "That the revenue of the United States will in subsequent years be + considerably impaired by a war neither can nor ought to be + concealed. It is, on the contrary, necessary, in order to be + prepared for the crisis, to take an early view of the subject, and + to examine the resources which should be selected for supplying the + deficiency and defraying the extraordinary expenses.... + + "Whether taxes should be raised to a greater amount or loans be + altogether relied on for defraying the expenses of the war, is the + next subject of consideration. + + "Taxes are paid by the great mass of the citizens, and immediately + affect almost every individual of the community. Loans are supplied + by capital previously accumulated by a few individuals. In a + country where the resources of individuals are not generally and + materially affected by the war, it is practicable and wise to raise + by taxes the greater part at least of the annual supplies. The + credit of the nation may also from various circumstances be at + times so far impaired as to have no resource but taxation. In both + respects the situation of the United States is totally + dissimilar.... + + "An addition to the debt is doubtless an evil, but experience + having now shown with what rapid progress the revenue of the Union + increases in time of peace, with what facility the debt, formerly + contracted, has in a few years been reduced, a hope may confidently + be entertained that all the evils of the war will be temporary and + easily repaired, and that the return of peace will, without any + effort, afford ample resources for reimbursing whatever may have + been borrowed during the war." + +He then enumerates the several branches of revenue which might be +selected to provide for the interest of war loans and to cover +deficiencies. First, a considerable increase of the duties on +importations; and here he says:-- + + "Without resorting to the example of other nations, experience has + proven that this source of revenue is in the United States the most + productive, the easiest to collect, and the least burthensome to + the great mass of the people. 2d. Indirect taxes, however + ineligible, will doubtless be cheerfully paid as _war taxes_, if + necessary. 3d. Direct taxes are liable to a particular objection + arising from unavoidable inequality produced by the general rule + of the Constitution. Whatever differences may exist between the + relative wealth and consequent ability of paying of the several + States, still the tax must necessarily be raised in proportion to + their relative population." + +The Orders in Council of November 11, 1807, avowedly adopted to compel +all nations to give up their maritime trade or accept it through Great +Britain, reached Washington on December 18, 1807, and were immediately +replied to by the United States by an embargo act on December 22. The +history of the political effect of this measure is beyond the limits of +this economic study, and will be touched upon in a later chapter, but +the result of its application upon the Treasury falls within this +analysis of the methods of Mr. Gallatin's administration. + +On December 18 Gallatin wrote Jefferson that "in every point of view, +privations, sufferings, revenue, effect on the enemy, politics at home, +etc.," he preferred "war to a permanent embargo;" nevertheless he was +called upon to draft the bill. The correctness of Mr. Gallatin's +prevision was soon apparent. In his report of December 10, 1808, he +reviewed the general effect of the measure. "The embargo has brought +into and kept in the United States almost all the floating property of +the nation. And whilst the depreciated value of domestic product +increases the difficulty of raising a considerable revenue by internal +taxes, at no former time has there been so much specie, so much +redundant unemployed capital in the country." Again stating his opinion +that loans should be principally relied on in case of war, he closed +with the following words: "The high price of public stocks (and indeed +of all species of stocks), the reduction of the public debt, the +unimpaired credit of the general government, and the large amount of +existing bank stock in the United States [estimated by him at forty +millions of dollars], leave no doubt of the practicability of obtaining +the necessary loans on reasonable terms." + +The receipts into the Treasury during the +year ending September, 1808, the last of +Jefferson's administration, were $17,952,419.90 + +The disbursements during the same period +were 12,635,275.46 + ------------- +Excess of receipts $5,317,144.44 + +And the specie in Treasury, October 1, +1808 $13,846,717.82 + +From January 1, 1791, to January 1, 1808, the debt had fallen from +$75,169,974 to $57,023,192; during the first ten years it had increased +nearly seven millions of dollars, in the last eight it had been +diminished more than twenty millions and Louisiana had been purchased. +Thus closed the second term of Gallatin's service. Happen what might, +the credit of the country could not be in a better situation to meet the +exigencies of a war. A letter from Mr. Jefferson to Mr. Gallatin after +the close of this administration, and Gallatin's reply, show the entire +accord between them upon the one cardinal point of financial policy. Mr. +Jefferson, October 11, 1809, wrote from Monticello, "I consider the +fortunes of our republic as depending in an eminent degree on the +extinction of the public debt before we engage in any war; because, that +done, we shall have revenue enough to improve our country in peace and +defend it in war, without incurring either new taxes or new loans." And +urging Gallatin to retain his post, he closed with the striking words, +"I hope, then, you will abandon entirely the idea you expressed to me, +and that you will consider the eight years to come as essential to your +political career. I should certainly consider any earlier day of your +retirement as the most inauspicious day our new government has ever +seen." To which Gallatin replied from Washington, on November 10:-- + + "The reduction of the public debt was certainly the principal + object in bringing me into office, and our success in that respect + has been due both to the joint and continued efforts of the several + branches of government and to the prosperous situation of the + country. I am sensible that the work cannot progress under adverse + circumstances. If the United States shall be forced into a state of + actual war, all the resources of the country must be called forth + to make it efficient and new loans will undoubtedly be wanted. But + whilst peace is preserved, the revenue will, at all events, be + sufficient to pay the interest and to defray necessary expenses. I + do not ask that in the present situation of our foreign relations + the debt be reduced, but only that it shall not be increased so + long as we are not at war." + +In his eight years of service under Jefferson, Gallatin had not found +the Treasury Department a bed of roses. Under Madison there was an undue +proportion of thorns. + +It has been shown that the entire reliance of Gallatin for the expenses +of government was on customs, tonnage dues, and land sales. The effect +of the Embargo Act was soon felt in the falling off of importations, and +consequently in the revenue from this source. Mr. Gallatin felt the +strain in the spring of 1809; and on March 18, soon after Mr. Madison's +inauguration, he gave notice to the commissioners of the sinking fund of +a probable deficiency. In his annual report to Congress, December, 1809, +he announced the expenses of government, exclusive of the payments on +account of the principal of the debt, to have exceeded the actual +receipts into the Treasury by a sum of near $1,300,000. For this +deficiency, and the sum required for the sinking fund, Gallatin was +authorized in May to borrow from the Bank of the United States +$3,750,000 at six per cent., reimbursable on December 31, 1811. Of this +sum only $2,750,000 was taken, the expenses having proved less than Mr. +Gallatin had anticipated. + +Madison called Congress together on November 1, 1811. The political +tension was strong, and he was anxious to throw the responsibility of +peace or war upon Congress. On November 22, 1811, Mr. Gallatin made his +report on the finances and the public debt. It was, as usual, explicit +and in no manner despondent. The actual receipts arising from revenue +alone exceeded the current expenses, including the interest paid on the +debt, by a sum of more than five and one half millions of dollars. The +public debt on January 1, 1812, was $45,154,463. Since Gallatin took +charge of the department, the United States had in ten years and nine +months paid in full the purchase money of Louisiana, and increased its +revenue nearly two millions of dollars. For eight years eight millions +of dollars had been annually paid on account of the principal and +interest of the debt. And as though intending to leave as the legacy of +his service a lesson of financial policy, he said:-- + + "_The redemption of principal has been effected without the aid of + any internal taxes, either direct or indirect, without any addition + during the last seven years to the rate of duties on importations, + which on the contrary have been impaired by the repeal of the duty + on salt, and notwithstanding the great diminution of commerce + during the last four years._ It therefore proves decisively the + ability of the United States with their ordinary revenue to + discharge, in ten years of peace, a debt of forty-two millions of + dollars, a fact which considerably lessens the weight of the most + formidable objection to which that revenue, depending almost solely + on commerce, appears to be liable. In time of peace it is almost + sufficient to defray the expenses of a war; in time of war it is + hardly competent to support the expenses of a peace establishment. + Sinking at once, under adverse circumstances, from fifteen to six + or eight millions of dollars, it is only by a persevering + application of the surplus which it affords us in years of + prosperity, to the discharge of the debt, that a total change in + the system of taxation or a perpetual accumulation of debt can be + avoided. But if a similar application of such surplus be hereafter + strictly adhered to, forty millions of debt, contracted during five + or six years of war, may always, without any extraordinary + exertions, be reimbursed in ten years of peace. This view of the + subject at the present crisis appears necessary for the purpose of + distinctly pointing out one of the principal resources within reach + of the United States. But to be placed on a solid foundation, it + requires the aid of a revenue sufficient at least to defray the + ordinary expenses of government, and to pay the interest on the + public debt, including that on new loans which may be authorized." + +From this plain declaration, it was evident that the sum necessary to +pay interest on new loans, and provide for their redemption by the +operation of the sinking fund, could not be obtained from the ordinary +sources of revenue, and that resort must be had to extraordinary imposts +or direct taxation. On January 10, 1812, in response to an inquiry of +the Ways and Means Committee as to an increase of revenue in _the event +of a war_, Gallatin submitted a project for war loans of ten millions a +year, irredeemable for ten years. He pointed out that the government had +never since its organization obtained considerable loans at six per +cent. per annum, except from the Bank of the United States, and these, +on a capital of seven millions, never amounted to seven millions in the +whole. As the amount of prospective loans would naturally raise the +amount of interest, it seemed prudent not to limit the rate of interest +by law; ineligible as it seemed to leave that rate discretionary with +the executive, it was preferable to leaving the public service +unprovided for. For the same reason the loans should be made +irredeemable for a term not less than ten years. + +He then repeated a former suggestion, that "treasury notes," bearing +interest, might be issued, which would to that extent diminish the +amount to be directly borrowed and also provide a part of the +circulating medium, passing as bank notes; but their issue must be +strictly limited to that amount at which they would circulate without +depreciation. So long as the public credit is preserved and a sufficient +revenue provided, he entertained no doubts of the possibility of +procuring on loan the sums necessary to defray the extraordinary +expenses of a war. He warned the committee, and through it Congress, +that "no artificial provisions, no appropriations or investments of +particular funds in certain persons, _no nominal sinking fund_, however +constructed, will ever reduce a public debt unless the net annual +revenue shall exceed the aggregate of the annual expenses, including the +interest of the debt." He then submitted the following estimates:-- + + "The current or peace expenses have been estimated at nine millions + of dollars. Supposing the debt contracted during the war not to + exceed fifty millions and its annual interest to amount to three + millions, the aggregate of the peace expenditure would be no more + than twelve millions. And as the peace revenue of the United States + may at the existing rate of duties be fairly estimated at fifteen + millions, there would remain from the first outset a surplus of + three millions applicable to the redemption of the debt. So far, + therefore, as can be now foreseen, there is the strongest reason to + believe that the debt thus contracted will be discharged with + facility and as speedily as the terms of the loans will permit. Nor + does any other plan in that respect appear necessary than to extend + the application of the annual appropriation of eight millions (and + which is amply sufficient for that purpose) to the payment of + interest and reimbursement of the principal of the new debt.... If + the national revenue exceeds the national expenditure, a simple + appropriation for the payment of the principal of the debt and + coextensive with the object is sufficient and will infallibly + extinguish the debt. If the expense exceeds the revenue, the + appropriation of any specific sum and the investment of the + interest extinguished or of any other fund, will prove altogether + nugatory; and the national debt will, notwithstanding that + apparatus, be annually increased by an amount equal to the deficit + in the revenue.... What appears to be of vital importance is that + _the crisis_ should at once be met by the adoption of efficient + measures, which will with certainty provide means commensurate with + the expense, and, by _preserving unimpaired instead of abusing that + public credit on which the public resources so eminently depend, + will enable the United States to persevere in the contest until an + honorable peace shall have been obtained_." + +On March 14 Congress authorized a public loan of eleven millions of +dollars, leaving it optional with the banks who subscribed to take +stock, or to loan the money on special contract. The books were opened +May 1 and 2, and in the two days $6,118,900 were subscribed: $4,190,000 +by banks and $1,928,000 by individuals. The rate was six per cent. Mr. +Gallatin reported this result, and proposed the issue of treasury notes +for such amount as was desired within the limit of the loan to bear +interest at five and two fifths per cent. a year, equal to a cent and a +half per day on a hundred dollars' note; 2d, to be payable one year +after date of issue; 3d, to be in the meanwhile receivable in payment of +all duties, taxes, or debts due to the United States. The first of these +ingenious qualifications was adopted by Mr. Chase in his issue of the +seven-thirties. + +On June 18 war was declared. On the 28th Mr. Gallatin submitted his +estimate of receipts and expenditures for the year. + +EXPENDITURES IN ROUND NUMBERS. + +Civil and miscellaneous $1,560,000 +Military establishment, and Indian dept 12,800,000 +Naval establishment 3,940,000 +Public debt 8,000,000 + ---------- + $26,300,000 + ========== + +FUNDS PROVIDED. + +Balance in Treasury, January 1 $2,000,000 +Receipts from duties and sales of lands + as by estimate of November 22, 1811 8,200,000 +Loan authorized by law 11,000,000 +Treasury notes as authorized by House + of Representatives 5,000,000 + ---------- + $26,200,000 + +The issue of _treasury notes_ was a novel experiment in the United +States; but they were favorably received, and Mr. Gallatin calculated +that the full amount authorized by law, $5,000,000, could be put in +circulation during the year. The result of a loan seemed more doubtful. +The old six per cents. and deferred stock had already fallen two or +three per cent. below par. Mr. Gallatin again recommended the conversion +of these securities into a new six per cent. stock, which would +facilitate the new loan, and to prevent the necessity of applying, the +same years, the large sums required in reimbursement of and purchase of +the public debt. + +On December 1 Mr. Gallatin made his last annual statement. + +_Treasury Report for Fiscal Year ending September_ 30, 1812. + +RECEIPTS. + +Customs, sales of lands, etc. $10,934,946.20 +On account of loan of eleven millions, + act 14 March, 1812 5,847,212.50 + -------------- + $16,782,158.70 +Balance in Treasury October 1, 1811 3,947,818.36 + -------------- + $20,729,977.06 + ============== + +DISBURSEMENTS. + +Civil Department, foreign intercourse $1,823,069.35 +Army, militia, forts, etc. $7,770,300.00 +Navy Department 3,107,501.54 +Indian Department 230,975.00 + ------------- 11,108,776.54 +Interest on debt $2,498,013.19 +On account of principal 2,938,465.99 + ------------- 5,436,479.18 + -------------- + $18,368,325.07 +Leaving in Treasury 30 Sept., 1812 2,361,652.69 + -------------- + $20,729,977.76 + +The sums obtained or secured on loans during the year amounted to +$13,100,209, and the secretary had the satisfaction to state "that +notwithstanding the addition thus made to the public debt, and although +a considerable portion has been remitted from England and brought to +market in America, the public stocks (which had at first experienced a +slight depression) have been for the last three months, and continue to +be, at par." His last report to the commissioners of the sinking fund of +February 5, 1813, stated the usual application of $8,719,773 to the +principal and interest of the debt. + +In his report of December 1, 1812, Mr. Gallatin announced that a loan of +twenty-one millions was needed for the service of 1813. Congress +authorized a loan of $16,000,000, having six years to run, and an +additional issue of $5,000,000 of treasury notes. Congress adjourned on +March 4. Their procrastination and the pressing demands of the War +Department nearly beggared the Treasury before the loans could be +negotiated and covered into it. + +On April 17 Mr. Gallatin wrote to the secretaries of the army and of the +navy, and sent a copy of his letters to Mr. Madison with information +that the loan had been filled, and the probable receipts of the Treasury +from ordinary sources for the year ascertained. These he estimated at +$9,300,000. Deducting the annual appropriation for interest on the debt, +the sum expended to March 31, and the amount needed for the civil +service, there remained for the War and Navy Departments together the +sum of $18,720,000. + +The loan of $16,000,000 was obtained in the following places:-- + +States east of New York $486,700 +State of New York 5,720,000 +Philadelphia, Pa. 6,858,400 +Baltimore and District of Columbia 2,393,300 +State of Virginia 187,000 +Charleston, S. C. 354,000 + ----------- + $16,000,000 + +The history of this subscription is not without interest. The extremely +small subscriptions in New England and in the Southern States can hardly +be explained on any other theory than that of a belief in the collapse +of the finances of the United States and a dissolution of the Union, for +which the New England States had certainly been prepared by their +governing minds.[14] + +Books were opened on March 12 and 13, 1813, at Portsmouth, Salem, +Boston, Providence, New York, Albany, Philadelphia, Baltimore, +Washington, Richmond, and Charleston. In the two days the subscriptions +only reached the sum of $3,956,400. They were again opened on the 25th +of March at New York, Philadelphia, Baltimore, and Washington. The New +England and Southern States seem to have been disregarded because of +their indifference in the first instance. The books remained open from +March 25 to 31, during which time there were received $1,881,800, a +total of $5,838,200. + +The pressure fell on the Middle States. In these, fortunately for the +government, there were three great capitalists whose faith in the future +prosperity of the United States was unimpaired. All were foreigners: +David Parish and Stephen Girard in Philadelphia and John Jacob Astor in +New York. These now came forward, no doubt at the instance of Mr. +Gallatin, who was a personal friend of each. Parish and Girard offered +on April 5 to take eight millions of the loan at the rate of +eighty-eight dollars for a certificate of one hundred dollars bearing +interest at six per cent., redeemable before December 31, 1825, they to +receive one quarter of one per cent. commission on the amount accepted, +and in case of a further loan for the service of the year 1813, to be +placed on an equal footing with its takers. John Jacob Astor on the same +day and at the same place proposed to take for himself and his friends +the sum of two million and fifty-six thousand dollars of the loan on the +same conditions. These offers were accepted and the loan was complete. +An offer on behalf of the State of Pennsylvania to take one million of +the loan was received too late. Altogether the offers amounted to about +eighteen millions, or two millions more than the sum demanded. Mr. +Gallatin, clinging to his old plan, endeavored to negotiate this loan at +par, by offering a premium of a thirteen years' annuity of one per +cent., but found it impracticable. Indeed, the system of annuity, +general in England, has never found favor as an investment in the United +States. + +This was Mr. Gallatin's last financial transaction. A few weeks later, +at his own request, he severed his actual connection with the Treasury +Department and was on his way to St. Petersburg to secure the proffered +mediation of the emperor of Russia between the United States and Great +Britain. + +Thus ended Mr. Gallatin's administration of the national finances. The +hour for saving had passed. The imperious necessities of war take no +heed of economic principles. The work which the secretary had done +became as the rope of sand. It is not surprising that Gallatin wearied +of his post; that he watched with vain regret and unavailing sighs the +unavoidable increase of the national debt, and that he sought relief in +other services where success was not so evanescent as in the Treasury +Department. Before the close of Madison's administration, February 12, +1816, the public debt had run up to over one hundred and twenty-three +millions,[15] and a sum equal to the entire amount of Mr. Gallatin's +savings in two terms had been expended in one. But his work had not been +in vain. The war was the crucial test of the soundness of his financial +policy. The maxims which he announced, that debt can only be reduced by +a surplus of revenue over expenditure, and the accompaniment of every +loan by an appropriation for its extinguishment, became the fundamental +principle of American finance. Mr. Gallatin was uniformly supported in +it by Congress and public opinion. It was faithfully adhered to by his +distinguished successors, Dallas and Crawford, and the impulse thus +given continued through later administrations, until, in 1837, twenty +years after the peace, the entire debt had been extinguished. All this +without any other variation from Mr. Gallatin's original plan than an +increase of the annual appropriation, to the sinking fund for its +reimbursement, from eight to ten millions.[16] + +The only charge which has ever been made against Gallatin's +administration was, that he reduced the debt at the expense of the +defenses and security of the country; but, to quote the words of one of +his biographers:[17] "Mr. Gallatin had the sagacity to know that it [the +redemption of the debt] would make but little difference in the degree +of preparation of national defense and means of contest, for which it is +impossible ever to obtain a considerable appropriation before the near +approach of the danger that may render them necessary. He knew that the +money thus well and wisely devoted to the payment of the debt was only +rescued from a thousand purposes of extravagance and mal-application to +which all our legislative bodies are so prone whenever they have control +of surplus funds." In our own day the irresistible temptations of a full +treasury need no labored demonstration. Friend and foe drop political +differences over the abundant fleshpot. The very thought of catering to +such appetites disgusted Gallatin. To Jefferson he frankly said, in +1809, that while he did not pretend to step out of his own sphere and to +control the internal management of other departments, yet he could not +"consent to act the part of a mere financier, to become a contriver of +taxes, a dealer of loans, a seeker of resources for the purpose of +supporting useless baubles, of increasing the number of idle and +dissipated members of the community, of fattening contractors, pursers, +and agents, and of introducing in all its ramifications that system of +patronage, corruption, and rottenness which you justly execrate." + +RECEIPTS AND EXPENDITURES DURING MADISON'S ADMINISTRATION, FROM + ELLIOTT'S SYNOPTICAL EXHIBITS. + + RECEIPTS. + +------------+----------------+---------------+----------------+ +Four Years | Customs. | Internal | Direct Taxes. | +Ending | | Revenue. | | +Dec. 31. | | | | +------------+----------------+---------------+----------------+ +1812 | $38,151,330.15 | $18,674.03 | $28,491.87 | +1816 | 62,813,212.43 | 11,470,507.24 | 8,639,611.38 | + |----------------+---------------+----------------+ +Madison | 100,964,542.58 | 11,489,181.27 | 8,668,103.25 | +------------+----------------+---------------+----------------+ +----------------+----------------+-------------------+----------------+ + Postage. | Public Lands. | Loans and | Dividends | + | | Treasury Notes. | Sales of | + | | | Bank Stock. | +----------------+----------------+-------------------+----------------+ + $85,077.40 | $2,889,466.46 | $15,606,201.30 | - | + 364,787.84 | 4,977,570.54 | 94,321,103.73 | - | +----------------+----------------+-------------------+----------------+ + 449,865.24 | 7,867,037.00 | 109,927,305.03 | - | +----------------+----------------+-------------------+----------------+ + +----------------+---------------- + Miscellaneous. | Total. + | + | +----------------+---------------- + $209,309.34 | $56,988,550.55 + 630,248.16 | 183,217,041.32 +----------------+---------------- + 839,557.50 | 240,205,591.87 +----------------+---------------- + + EXPENDITURES. + +-----------+-----------------+---------------+----------------+ +Four Years | Civil List. | Foreign | Miscellaneous. | +Ending | | Intercourse. | | +Dec. 31. | | | | +-----------+-----------------+---------------+----------------+ +1812 | $2,887,197.98 | $860,281.28 | $1,619,849.12 | +1816 | 3,768,342.61 | 1,042,633.42 | 5,015,100.92 | + |-----------------+---------------+----------------+ +Madison | 6,655,540.59 | 1,902,914.70 | 6,634,950.04 | +-----------+-----------------+---------------+----------------+ + +----------------+----------------+-------------------+----------------+ + Military Dept. | Pensions. | Indian Dept. | Naval Dept. | + | | | | + | | | | +----------------+----------------+-------------------+----------------+ + $19,480,722.54 | $338,023.68 | $944,848.84 | $10,006,934.54 | + 70,809,210.90 | 435,614.48 | 1,140,015.30 | 26,326,169.25 | +----------------+----------------+-------------------+----------------+ + 90,289,933.44 | 773,638.16 | 2,084,864.14 | 36,333,103.79 | +----------------+----------------+-------------------+----------------+ + +----------------+---------------- + Public Debt. | Total. + | + | +----------------+---------------- + $26,920,285.12 | $63,058,143.10 + 56,508,652.66 | 165,045,739.54 +----------------+---------------- + 83,428,937.78 | 228,103,882.64 +----------------+---------------- + + * * * * * + +_Revenue_ + +_L'État c'est moi_ was the autocratic maxim of Louis Quatorze. An +adherence to it cost the Bourbons their throne. Burke was more +philosophical when he said, "The revenue of the State is the State." Its +imposition, its collection, and its application involve all the +principles and all the powers of government, constitutional or +extraordinary. It is the sole foundation of public credit, the sole +support of the body politic, its life-blood in peace, its nerve in war. +The "purse and the sword" are respectively the resource and defense of +government and peoples, and they are interdependent powers. With the +discovery of the sources of revenue, and the establishment of its +currents, Mr. Gallatin, in the first eight years of his administration +of the Treasury, had nothing to do. He had only to maintain those +systems which Hamilton had devised, and which, wisely adapted to the +growth of the country, proved amply adequate to the ordinary +expenditures of the government and to the gradual extinguishment of the +debt. The entire revenue included three distinct branches: imposts on +importations and tonnage, internal revenue, sales of public lands. The +duties on imports of foreign merchandise were alone sufficient to meet +the current expenses of the various departments of administration on a +peace establishment, and, increasing with the growth of the country, +would prove ample in future. The gross amount of imports in the four +years of Adams's administration, 1796-1800, was about three hundred and +fourteen millions of dollars, and the customs yielded about thirty +millions. + +Mr. Gallatin's first annual report, submitted to the House of +Representatives in December, 1801, exhibited his financial scheme. He +recapitulated the various sources of permanent revenue. They were those +of Hamilton's original tariff. + +The revenues for the year ended September 30, 1801, were the basis of +the estimates for future years. These were + +Duties on imports and tonnage $10,126,213.92 +Internal revenue 854,000.00 +Land sales 400,000.00 + -------------- + $11,380,213.92 + +But the close of the war in Europe sensibly diminished the enormous +carrying trade which fell to the United States as neutrals, and, as a +consequence, the revenue from that source; large quantities of goods +were brought into the United States and reëxported to foreign ports +under a system of debenture. The revenue on what Mr. Gallatin calls +"this accidental commerce" was $1,200,000. He therefore _estimated the +permanent revenues at_ + +Customs duties $9,500,000 +Land sales 400,000 +Postage 50,000 +Internal revenue 650,000 + ----------- + $10,600,000 + +Or, without the internal revenue, say ten millions of permanent revenue, +as a basis for _the permanent expenditures_. + +To bring the expenditures within this sum, however, a reduction in the +army and navy establishments was necessary. This Gallatin soon found to +be too radical a measure for success, either in the cabinet or Congress, +however well it may have accorded with Jefferson's utopian views. In the +budget of 1802 the internal revenue, $650,000, was, therefore, a +necessary item. The expenditures proposed were + +Annual appropriation for interest and +principal of debt $7,100,000 +Civil list $780,000 +Foreign intercourse 200,000 +Military and Indian Dept 1,420,000 +Naval 1,100,000 + ----------- + $3,500,000 3,500,000 + ----------- + $10,600,000 + +In this budget the estimate for the military establishment was an +increase over that of Wolcott for 1801, which was $1,120,000. But the +Republicans in the House were not content with this arrangement. The +internal revenues were utterly distasteful to them. They had been laid +against their protest and collected under military menace. They were of +those Federal measures of which they would have none. John Randolph, +chairman of the Committee of Ways and Means, reported, March 2, 1802, +against the entire system of internal duties, in the old words of the +Pennsylvania radicals, as vexatious, oppressive, and peculiarly +obnoxious; as of the nature of an excise which is hostile to the genius +of a free people, and finally because of their tendency to multiply +offices and increase the patronage of the executive. The repeal was +imperative upon the Republican party. On April 6, 1802, the act was +repealed and the surplus of the budget stripped from it, without Mr. +Gallatin's consent, certainly, but also without protest from him. + +The prosperity of the country continued. The impost duties for the +fiscal year ending September 30, 1802, rose to $12,280,000, the sales of +the public lands to $326,000, and the postage to $50,500, a total of +$12,656,500, and left in the Treasury, September 30, 1802, the sum of +$4,539,675. This large increase in the Treasury did not in the least +change Mr. Gallatin's general plan, and his budget for 1803 was based on +his original scale of a permanent revenue of $10,000,000, to correspond +with which the estimates of the preceding year were reduced. The fiscal +year closed September 30, 1803, with a balance in the Treasury of +$5,860,000. This situation of the finances was fortunate in view of +secret negotiations which the President and Congress were initiating for +the purchase of Louisiana from France. + +The secretaries of war and of the navy had promised to reduce their +expenditures to a figure approximate to Mr. Gallatin's estimates; but +the breaking out of hostilities with Tripoli prevented the proposed +economy, and Mr. Gallatin was called upon to provide for an increased +expenditure with one certain source of revenue definitively closed. He +therefore proposed an additional tax of two and one half per cent. on +all importations which paid an _ad valorem_ duty. This additional +impost, laid by act of March 25, 1804, called the Mediterranean Fund, +remained in force long after the war closed and held its place on the +books of the Treasury under that name. + +The bulk of the cost of Louisiana was met by an issue of bonds; but Mr. +Gallatin, true to his principle, applied the moneys in the Treasury as +far as they would go. The budget for 1805 was on a different scale. The +increase in the debt demanded a proportionate increase in the revenue to +meet the additional sum required for interest and gradual annual +reimbursement. The Mediterranean Fund was sufficient to meet the +increased amounts required for the navy. In this manner he held up the +Navy Department to a strict accountability and made it responsible to +Congress and not to the cabinet for its administration, and he thus, +from his own point of view, relieved the Treasury Department from any +responsibility for extraordinary expenditure. + +Mr. Gallatin closed his four years of administration with flying colors. +The successful management of the finances was an important factor in the +election of 1804, which returned Mr. Jefferson to the presidential chair +and insured to the country the inestimable advantages of Mr. Gallatin's +practical mind. Order reigned in his department at least, and order +subordinate to the strictest requirements of law. In the four years, +1801-1804, Jefferson's first term, the imports aggregated $337,363,510 +and the customs yielded $45,000,000. + +The annual report, made December 9, 1805, announced an increasing +revenue, amounting in all to thirteen and one half millions of dollars, +chiefly from customs. Still Mr. Gallatin made but small addition to his +estimates for the coming year. The permanent revenue he raised to twelve +and one half millions and increased the appropriation for the payment of +the debt and interest to eight millions. Nothing occurred during the +next year to check the growth of the country; the revenue continued on a +rising scale, and reached close upon fifteen millions of dollars. + +So far Mr. Gallatin had met but inconsiderable obstacles in his course, +and these he used to his advantage to impress economy upon the Army and +Navy Departments, and enforce his principle of minute appropriations +for their government. All that he had already accomplished in the +establishment of a sound financial system and the support of the credit +of the United States was but the basis of a broader structure of +national economy. His extensive scheme of internal improvements was +hardly matured when the thunder broke in the clear sky. + +The acquisition of Louisiana, the large carrying trade which had passed +under the American flag, and the rapid prosperity of the financial and +industrial condition of the country aroused the jealousy of Great +Britain, and determined her to check the further progress of the United +States by war, if need be. The capture of the American frigate +Chesapeake by the man-of-war Leopard, June 22, 1807, was only the first +in a series of outrages which rendered the final collision, though long +delayed, inevitable. Mr. Gallatin at once recognized that the Treasury +could no longer be conducted on a peace basis. "Money," he wrote to +Joseph H. Nicholson, "we will want to carry on the war; our revenue will +be cut up; new and internal taxes will be slow and not sufficiently +productive; we must necessarily borrow. This is not pleasing to me, but +it must be done." Congress was called together for October 26, 1807, and +on November 5, Mr. Gallatin sent in his annual report. There was still +hope that Great Britain would make amends for the outrage, and Congress +was certainly peaceably disposed. In the condition of the Treasury +there was no reason as yet for recommending extraordinary measures. The +revenues for the year passed the sum of seventeen millions; the balance +in the Treasury reached eight and one half millions; the surplus on a +peace footing was twelve millions. Mr. Gallatin recommended that the +duties should be doubled in case war were threatened. He said, "Should +the revenue fall below seven millions of dollars, not only the duty on +salt and the Mediterranean duties could be immediately revived, but the +duties on importation generally be considerably increased, perhaps +double, with less inconvenience than would arise from any other mode of +taxation." Experience had proven that this source of revenue is in the +United States "the most productive, the easiest to collect, and least +burdensome to the great mass of the people." But still the war-cloud did +not break. Mr. Canning contented himself with war in disguise, and by +his Order in Council of November 11, 1807, shut the ports of Europe to +American trade, and wiped away the advantages of the United States as a +neutral power. The United States answered with the act of embargo on +December 22, 1807, completing, as far as it was possible for legislation +to effect it, the blockade of the Treasury Department as regarded +revenues from foreign imports. The immediate effect, however, of these +acts in Great Britain and America was an enormous temporary increase of +importations in the interim from the time of the passage of the act +until the date when it took effect. To aid merchants in this peculiar +condition of affairs an act was passed by Congress, on March 10, 1808, +extending the terms of credit on revenue bonds. + +Mr. Gallatin's report of December 16, 1808, closed the record of his +eight years of management of the Department. In the second term of +Jefferson's administration, 1805-1808, the gross amount of imports had +risen to $443,990,000, and the customs collected to nearly $60,000,000. +In the entire eight years, 1800-1808, the gross amount of importations +was $781,000,000, and the customs yielded $105,000,000. The entire +expenses of the government in the same period, including $65,000,000 of +debt, had been liquidated from customs alone. + +The specie in the Treasury on September 20, 1808, reached nearly +$14,000,000. Mr. Jefferson knew of the amount in the Treasury when he +wrote his last message, November 8, 1808, and he could not have been +ignorant of Mr. Gallatin's warning of the previous year that a +continuance of the embargo restriction would reduce the revenue below +the point of annual expenditures and require an additional impost; yet +he had the ignorance or the presumption to say in his message, "Shall it +(the surplus revenue) lie unproductive in the public vaults? Shall the +revenue be reduced? or shall it not rather be appropriated to the +improvement of roads, canals, rivers, education, and other great +foundations of prosperity and union under the powers which Congress may +already possess or such amendments of the Constitution as may be +approved by the States? While uncertain of the course of things, the +time may be advantageously employed in obtaining the powers necessary +for a system of improvement, should it be thought best." In these words +Jefferson surrendered the vital principle of the Republican party. In +his satisfaction at the only triumph of his administration, the +management of the finances and the purchase of a province without a +ripple on the even surface of national finance, he gave up the very +basis of the Republican theory, the reduction of the government to its +possible minimum, and actually proposed a system of administration +coextensive with the national domain, an increase of the functions of +government, and consequently of executive power. + +The annual report of the Treasury, presented December 16, 1808, showed +no diminution of resources. The total receipts for the fiscal year were +nearly eighteen millions. The total receipts for-- + +Customs reached $26,126,648 +On which debentures were allowed + on exportations 10,059,457 + ----------- +Actual receipts from customs $16,067,191 + +But this source of revenue was now definitively closed by the embargo, +while the expenditures of the government were increased. Mr. Gallatin +met the situation frankly and notified Congress of the resources of the +Treasury. + + RESOURCES FOR 1809 + +Cash in Treasury $13,846,717.52 +Back customs, net 2,154,000.00 + -------------- +Total resources $16,000,717.52 + +The receipts from importations and land sales would be offset by +deductions for bad debts and extensions of credit to importers. The +expenditures were set at $13,000,000, which would leave in the Treasury +for extraordinary expenditure $3,000,717. The disbursements had been far +beyond the estimates; those for the military and naval establishments +reaching together six millions. + +It is not to be supposed that Mr. Gallatin saw this depletion of the +Treasury, this rapid dissipation of the specie,--always desirable and +never more so than in periods of trouble,--without disappointment and +regret. His report to Congress was as outspoken politically as it was +financially, and from a foreign-born citizen to an American Congress +must have carried its sting. "Either America," he wrote, "must accept +the position of commerce allotted to her by the British edicts, and +abandon all that is forbidden,--and it is not material whether this is +done by legal provisions limiting the commerce of the United States to +the permitted places, or by acquiescing in the capture of vessels +stepping beyond the prescribed bounds. Or the nation must oppose force +to the execution of the orders of England; and this, however done, and +by whatever name called, will be war." He recalled to them his advice of +the preceding years in a vein of tempered bitterness: "Had the duties +been doubled on January 1, 1808, as was then suggested, in case of war +the receipts into the Treasury during that and the ensuing year would +have been increased nine or ten millions of dollars." He then proposed +to continue the Mediterranean Fund and to double all existing duties on +importations after January 1, 1809. He informed them that no internal +taxes, either direct or indirect, were contemplated by him even in the +case of hostilities against the two belligerent powers; France having +responded to the Orders in Council by Napoleon's Milan decree, December +17, 1807, which was quite as offensive to the United States as that of +Canning. With true statesmanship Mr. Gallatin nerved the country to +extraordinary exertion by reminding it that the geographical situation +of the United States and their history since the Revolution removed +every apprehension of frequent wars. + +During the year 1809 the country drifted along apparently without rudder +or compass, helmsman or course, and the treasury locker was being +rapidly reduced to remainder biscuit. Mr. Madison was inaugurated in +March. In his first message, May 23, 1809, he exposed the financial +situation with an indecision which was as marked a trait of his +character as optimism was of that of Jefferson. In his message of +November 29, 1809, he said "the sums which had been previously +accumulated in the Treasury, together with the receipts during the year +ending on September 30 last, and amounting to more than nine millions of +dollars, have enabled us to fulfill all our engagements and defray the +current expenses of government without recurring to any loan; but the +insecurity of our commerce and the consequent demands of the public +revenue will probably produce a deficiency in the receipts of the +ensuing year." Beyond this Madison did not venture; Gallatin was left +alone. + +The Treasury report of December 8, 1809, announced the beginning of +short rations. The expenses of government, exclusively of the payments +on account of the principal of the debt, had exceeded the actual +receipts into the Treasury by a sum of near $1,300,000. If the military +and naval establishments were to be continued at the figures of 1809, +when six millions were expended, there would result a deficiency of +$3,000,000, and a loan of $4,000,000 would be necessary. Otherwise the +Mediterranean Fund would suffice. The cash in the Treasury had fallen +from nearly fourteen millions on June 2, 1809, to less than six millions +on September 3, following. In this report Gallatin expressed his +opinion, that the system of restriction established by the embargo and +partly relaxed must be entirely reinstated or wholly abandoned. On May +1, 1810, an act of strict prohibition of importations from Great +Britain and her dependencies was passed. + +While from the incompetency of the administration the country was fast +approaching the real crisis of open war, the Republicans in Congress +were deliberately destroying and undermining the basis of national +credit, by which alone it could be carried on. In February the United +States Bank, by which, and its branches, the customs were collected +throughout the country, was destroyed by the refusal of Congress to +renew its charter. Mr. Gallatin in his combinations never contemplated +such a contingency as the total destruction of the fiscal agency on +which the government had relied for twenty years. Unwilling to struggle +longer against the mean personalities and factious opposition of his own +party in Congress, he tendered his resignation to Mr. Madison. But the +Republican party was a party of opposition, not of government. With the +exception of Mr. Gallatin, no competent administrative head had as yet +appeared. There was no one in the party or out of it to take his place. +Mr. Madison knew it. Mr. Gallatin felt it, and remained. Congress met in +November. On the 25th Mr. Gallatin sent in his annual report; the +receipts reached thirteen and a half million dollars. + +The budget for 1812 left a deficiency to be provided for of $1,200,000. +This was a small matter. The revenue Mr. Gallatin proposed to increase, +on the plan before recommended, by additions of fifty per cent, to the +imposts on foreign commerce. This he preferred to any internal tax. + +At the close of the year the country, chafed beyond endurance by the +indignities put upon it and the sufferings it encountered without +compensation to its pride, was eager for war. Congress was no way loath +to try the dangerous path out of its labyrinth of blunders. The near +contingency imposed the necessity of an immediate examination of the +sources of revenue. In January, 1812, Mr. Gallatin was requested by the +chairman of the Committee of Ways and Means to give his opinion as to +the probable amount of receipts from duties on tonnage and merchandise +in the event of war. This, in view of the vigorous restrictions laid by +France under her continental system of exclusion, Mr. Gallatin estimated +under existing rules as not to exceed $2,500,000. He then stated, +without hesitation, that it was practicable and advisable to double the +rate of duties, and to renew the old duty on salt. The sum acquired, +with this addition, he anticipated, would amount to $5,400,000. + +On the basis of annual loans of ten millions of dollars during the +continuance of the war (the sum assumed by the committee), the +deficiency for 1814 would amount, by Mr. Gallatin's estimate, to +$4,200,000. To produce a net revenue equal to this deficiency he stated +that the gross sum of taxes to be laid must be five millions of dollars. +He then reverted to his report of December 10, 1808, in which he had +stated that "no internal taxes, either direct or indirect, were +contemplated, even in the case of hostilities carried on against the two +great belligerent powers." The balance in the Treasury was then nearly +fourteen millions of dollars, but in view of the daily decrease of the +revenue he had recommended "that all the existing duties be doubled on +importations subsequent to the first day of January, 1809." As the +revenues of 1809, 1810, and 1811 had yielded $26,000,000, the sum on +hand, with the increase thus recommended, would have reached +$20,000,000, a sum greater than the net amount of the proposed internal +taxes in four years. + +At that time no symptoms had appeared from which the absolute +dissolution of the Bank of the United States without any substitute +could have been anticipated. If its charters had been renewed, on the +conditions suggested by Mr. Gallatin, the necessity for internal taxes +would have been avoided. The resources of the country, properly applied, +however, were amply sufficient to meet the emergency; but Mr. Gallatin +distinctly threw upon Congress, and by implication upon the Republican +majority, the responsibility for the state of the Treasury, and the +imperative necessity for a form of taxation which it detested as +oppressive, and which it was a party shibboleth to declare in and out of +season, to be unconstitutional. The choice of the administration was +between the Bank which Jefferson detested and Gallatin favored, and the +internal tax which Mr. Gallatin considered as the most repulsive in its +operation of any form of revenue. + +But necessity knows no law, and the prime mover, if not the original +author, of the opposition to Hamilton's system was driven to propose the +renewal of the measures, opposition to which had brought the Republican +party into power, and had placed himself at the head of the Treasury. He +now proposed to raise the five millions deficiency by internal +taxation--$3,000,000 by direct tax and $2,000,000 by indirect tax. + +Continuing his lucid and remarkable report with careful details of the +methods to be adopted, Gallatin closed with an urgent recommendation +that the crisis should at once be met by the adoption of efficient +measures to provide, with certainty, means commensurate with the +expense, and by preserving unimpaired, instead of abusing, that credit +on which the public resources eminently depend, to enable the United +States to persevere in the contest until an honorable peace should be +obtained. Thus he held the bitter cup to the lips of the Republican +Congress, which, however, was not yet to drain its full measure. War was +declared June 18, 1812. On July 1, 1812, an act was passed imposing an +additional duty of one hundred per cent. on all importations, an +additional ten per cent. on goods brought in foreign vessels, and also a +duty of $1.50 per ton on all foreign vessels. The duty was to remain +until the expiration of one year after peace should be made with Great +Britain. On December 5, 1812, Mr. Gallatin sent in his last report. The +balance in the treasury was $3,947,818. His estimate for the service of +the year 1813 was a war budget. Resources, $12,000,000; expenditures, +$31,926,000; promising a deficiency of $19,925,000. For this and other +contingencies Mr. Gallatin asked for a loan of twenty millions. The +authority was granted, but the recommendations of direct and indirect +taxes were disregarded. Here Mr. Gallatin's direct connection with the +customs system closed. + +The value of foreign importations during Madison's first term was +$275,230,000, and the customs derived from them thirty-eight millions of +dollars. + + * * * * * + +Congress adjourned March 4, 1813, but was called together again in May, +when the subject of internal taxes was again forced upon them. The +internal revenue was a part of Hamilton's general scheme. His original +bill was passed, and, after numerous amendments suggested by trial, its +grievances were tempered and the friction removed. In Adams's term it +yielded nearly three millions of dollars. In Jefferson's first term, +before the rise in customs revenue allowed of its abandonment, Mr. +Gallatin drew from this source nearly two millions of dollars, enough to +pay the interest and provide for the extinguishment of a six per cent. +loan of thirty millions; a war budget in itself. But it had been so +entirely set aside that in Jefferson's second term, 1808-1812, it had +fallen to a little over sixty-three thousand; in Madison's first term, +to a little under nineteen thousand dollars. Was it to this Mr. Dallas +referred in that passage of his report, made in 1815, on the financial +operations of the war, in which he expresses his regret "that there +existed no system by which the internal resources of the country could +be brought at once into action, when the resources of its external +commerce became incompetent to answer the exigencies of the time? The +existence of such a system would probably have invigorated the early +movements of the war, might have preserved the public credit unimpaired, +and would have rendered the pecuniary contributions of the people more +equal, as well as more effective." "It certainly," to use the words of +this Mr. Gallatin's oldest and best political friend, "furnishes a +lesson of practical policy." Disagreeable as the necessity was, it could +not be avoided, and Mr. Gallatin met it manfully. Nay more, he seems to +have had a grim satisfaction in proposing the measure to the Congress +which had thwarted him in his plans. In accordance with his suggestions, +Congress, in the extra session of May, 1813, laid a direct tax of +$3,000,000 upon the States, and specific duties upon refined sugar, +carriages, licenses to distillers of spirituous liquors, sales at +auction, licenses to retailers of wines, and upon notes of banks and +bankers. These duties, in the beginning temporary, were calculated to +yield $500,000, and with the direct tax to give a sum of $3,500,000. But +the increasing expenditures again requiring additional sums of revenue, +the duties were made permanent and additional taxes were laid; the +entire revenue for 1815 being raised so as to yield $12,400,000. In the +second term of Mr. Madison the internal revenue brought in nearly eleven +and a half millions. The Federalists, who as a party were opposed to the +war, enjoyed the situation; Mr. Gallatin was compelled to impose the +internal revenue tax which he detested, and Mr. Dallas was called upon +to enforce its application. + +[Illustration: A. J. Dallas] + + * * * * * + +The only remaining source of revenue was the sale of public lands. This +also was a part of Hamilton's original scheme. The public lands of the +United States were acquired in three different ways, namely, 1, by +cessions from the States of such lands as they claimed, or were entitled +to by their original grants or charters from the crown, while colonies; +2, by purchase from Indian tribes; 3, by treaties with foreign +nations,--those of 1783 and 1794 with Great Britain, of 1795 with Spain, +and of 1803 with France. The need of bringing this vast territory under +the control of the government and disposing of it for settlement was +early apparent. In July, 1791, Hamilton sent in to the House a report on +"A uniform system for the disposition of the lands, the property of the +United States." In March preceding, grants of the United States had +confirmed to the actual settlers in the Illinois country the possession +of their farms. But what with the Indian wars and the rebellion within +the United States, no action was taken by Congress to carry the +recommendations of the secretary into effect, until Mr. Gallatin, whose +residence on the frontier gave him direct interest in the subject, +brought up the matter at the very first session he attended. In 1796 a +bill was passed authorizing and regulating the sale of lands northwest +of the Ohio and above the mouth of the Kentucky River, and a +surveyor-general was appointed with directions to lay out these lands in +townships. The sales under Adams's administrations were trifling, the +total amount received from this source before the year 1800 being +slightly over one hundred thousand dollars. In May, 1800, sales of the +same lands were authorized at public vendue at not less than two dollars +per acre; four land offices were established in the territory; surveyors +were appointed, and a register of the land office was made a permanent +official. In March, 1803, an act was passed to regulate the sale of the +United States lands south of the Tennessee River, two land offices were +established and public sale provided for at the same price set in the +act of 1800. In March, 1804, the Indiana lands lying north of the Ohio +and east of the Mississippi were brought within similar regulations, and +an act was passed concerning the country acquired under Spanish and +British grants. In the same month Louisiana was erected into two +territories. The sums received from the sales during the first term of +Jefferson's administration amounted to little more than one million of +dollars. In January, 1805, the territory of Indiana was divided into two +separate governments; that one which was set off received the name of +Michigan, and in 1808, its territory was brought under the regulations +of the land office. + +The sums received from the sales in the second term of Jefferson's +administration reached nearly two and one half millions of dollars, and +in Madison's first term, nearly three millions of dollars. From first to +last Mr. Gallatin never lost sight of the subject, though occasion did +not serve for more than organization of the system which, in the four +years ending 1836, yielded nearly fifty million dollars, and paid more +than one third of the entire expenses of the government. To John W. +Eppes[18] Mr. Gallatin wrote in the crisis of 1813, "The public lands +constitute the only great national resource exclusive of loans and +taxes. They have already been mentioned as a fund for the ultimate +extinguishment of the public debt." The land offices were then in full +operation. + +In 1810 Mr. Gallatin prepared an "Introduction to the collection of +laws, treaties, and other documents respecting the public lands," which +was published pursuant to an act of Congress passed in April of that +year. + + +_Free Trade_ + +While Mr. Gallatin differed from his early Republican associates in many +of their theories of administration, he was a firm believer in the best +of their principles, namely, the wisdom of giving free scope to the +development of national resources with the least possible interference +on the part of government. One of his purposes in his persistent desire +for economy in expenditure was to reduce the tariff upon foreign +importations to the lowest practicable limit. He was the earliest public +advocate in America of the principles of free trade, and an experience +of sixty years confirmed him in his convictions. + +The extinguishment of the debt rendered a great reduction in the revenue +possible. On the other hand, it brought the friends of a low tariff face +to face with the problem of internal improvements. As the election of +1832 drew near, the advocates of the two systems ranged themselves in +two great parties precisely as to-day: the advocates of the protective +or American system with internal improvements as an outlet for +accumulations of revenue on the one side; on the other the advocates of +free trade. Between his desire for the advantages of the one with its +attendant disadvantages of government interference in its prosecution, +and the freedom of commerce from undue restrictions, Mr. Gallatin did +not hesitate. He threw the whole force of his experience and character +into the free trade cause, and became the leader of its friends. + +On September 30, 1831, a convention of the advocates of free trade, +without distinction of party, met at the Musical Fund Hall in +Philadelphia. Two hundred and twelve delegates appeared. Among them were +Theodore Sedgwick, George Peabody, and John L. Gardner from +Massachusetts; Preserved Fish, John Constable, John A. Stevens, Jonathan +Goodhue, James Boorman, Jacob Lorillard, and Albert Gallatin from New +York; C. C. Biddle, George Emlen, Isaac W. Norris from Pennsylvania; +Langdon Cheves, Henry Middleton, Joseph W. Allston, and William C. +Preston from South Carolina; and men of equal distinction, bankers, +merchants, statesmen, and political economists from other States. Of +this convention Mr. Gallatin was the soul. He opened its business by +stating the objects of the meeting, and nominated the Hon. Philip P. +Barbour of Virginia for president. A general committee of two from each +State was appointed, which recommended an address to the people of the +United States and a memorial to Congress. The address to the people +closed with a declaration that the near extinguishment of the national +debt, which would be discharged by the available funds of the government +on January 1, 1833, suggested that the moment was propitious for the +establishment of the principles of free trade. Thus the people of the +United States, who had successfully asserted the doctrines of free +government, might add to its claims upon the gratitude of the world by +being the first also to proclaim the theory of a free and unrestricted +commerce, the genuine "American system." Mr. Gallatin was the chairman +of the committee of fourteen, one from each State represented in the +convention, to prepare the memorial which was presented in their behalf +to Congress, the conclusions of which, presented with his consummate +ability, demonstrated with mathematical precision that a duty of +twenty-five per cent. was sufficient for all the legitimate purposes of +government. Here he found himself in direct opposition to Mr. Clay, +whose political existence was staked upon the opposite theory. Mr. Clay +answered in a great speech in the Senate in February, 1832, and forgot +himself in personal denunciation of Mr. Gallatin as a foreigner with +European interests at heart, and of utopian ideas; for this he expressed +his regret to Mr. Gallatin in an interview arranged by mutual friends at +a much later period. Mr. Gallatin's views were accepted as the policy of +the country, and after some shifting of parties, in which friends and +foes changed ground in subordination to other political exigencies, they +prevailed in the tariff of 1846, the best arranged and most reasonable +which the United States has yet seen. + +It is certain that Mr. Gallatin was opposed to "protective" revenue. His +preference was for an "even" duty on all imports. This is not the place +for an economic discussion. The true policy of the United States is +probably between the extremes of protection and free trade. The nature +of our population has been changed by the enormous immigration of the +last fifty years. Moreover, instead of an absolute freedom from debt the +nation has had to endure the legacy of debt left by the Civil War, to +meet which a development of all its resources of manufacture as well as +of agriculture is required. + + +_Administration_ + +To arrive at a correct estimate of Mr. Gallatin's administration of the +Treasury Department, a cursory review of the establishment as he +received it from the hands of Mr. Wolcott is necessary. This review is +confined to administration in its limited sense, namely, the direction +of its clerical management under the provisions of statute law. The +organization of the department as originated by Hamilton and established +by the act of September 2, 1789, provided for a secretary of the +treasury as head of the department, whose general duty should be to +supervise the fiscal affairs of the country, and particularly to suggest +and prepare plans for the improvement and support of the public credit; +and, under his direction and supervision, a comptroller to adjust and +preserve accounts; an auditor to receive, examine, and rectify accounts; +a treasurer to receive, keep, and disburse moneys on warrants signed and +countersigned; a register to keep the accounts of receipts and +expenditures; and an assistant to the secretary of the treasury to fill +any vacancy from absence or other temporary cause. In addition to the +departments of State, Treasury, and War, a fourth, that of the Navy, was +established April 30, 1798. The three departments were brought into +relation with that of the Treasury by an act passed July 16, 1798, +supplementary to that organizing the Treasury, and which provided, 1st, +for the appointment of an accountant in each department, who was +required to report to the accounting officer of the Treasury; 2d, that +the Treasurer of the United States should only disburse by warrants on +the Treasury, countersigned by the accountant of the Treasury; 3d, that +all purchases for supplies for military or naval service should be +subject to the inspection and revision of the officers of the Treasury. +Mr. Jefferson, after his usual fashion of economy in the wrong +direction, proposed to Mr. Gallatin "to amalgamate the comptroller and +auditor into one, and reduce the register to a clerk of accounts: so +that the organization should consist, as it should at first, of a keeper +of money, a keeper of accounts, and the head of the department." But in +the Treasury Department there was no extravagance during Gallatin's +administration, and the shifting of responsibility would bring no saving +of salaries. + +In May, 1800, an act was passed making it "the duty of the secretary of +the treasury to digest, prepare, and lay before Congress at the +commencement of every session a report on the subject of finances, +containing estimates of the public revenue and expenditures, and plans +for improving and increasing the revenue from time to time, for the +purpose of giving information to Congress in adopting modes for raising +the money requisite to meet the expenditures." Hamilton had never sent +in any other than a statement of expenditure for the past fiscal year, +together with the estimate of the accountant of the Treasury for the +proximate wants of the departments of government. Mr. Gallatin +incorporated in his annual report a balance sheet in accordance with the +ordinary forms of book-keeping familiar to every accountant and +indispensable in every business establishment, and such as is presented +to the public in the monthly and annual statements of the Treasury +Department at this day. + +The statutes show no legislation during Mr. Gallatin's period of +administration, and to its close he was in continual struggle to force +upon Congress and the departments an accord with his pet plan of minute +specific appropriation of the sums estimated for and expended by each. +Mr. Madison heartily agreed with Mr. Gallatin on this subject, and on +taking office placed the relations of the State Department upon the +desired footing. But the heads of the Army and Navy were never willing +to consent to the strict limitation which Mr. Gallatin would have +imposed on their expenditures. In his notes to Jefferson for the draft +of his first message in 1801, Mr. Gallatin said that the most important +reform he could suggest was that of 'specific appropriations,' and he +inclosed an outline of a form to be enforced in detail. In January, +1802, he sent to Joseph H. Nicholson a series of inquiries to be +addressed to himself by a special committee on the subject, with regard +to the mode by which money was drawn from the Treasury and the situation +of accounts between that department and those of the Army and Navy. To +these questions he sent in to the House an elaborate reply, which he +intended to be the basis of legislation. Strict appropriation was the +ideal at which he aimed, and this word was so often on his tongue or in +his messages that it could not be mentioned without a suggestion of his +personality. He carried the same nicety of detail into his domestic +life. He managed his own household expenses, and at a time when +bountiful stores were the fashion in every household he insisted on a +rigid observance of the more precise French system. He made an +appropriation of a certain sum each day for his expenses, and required +from his purveyor a strict daily account of disbursements. An amusing +story is told of him at his own table. On an occasion when entertaining +a company at dinner, he was dissatisfied with the menu and expressed his +disapprobation to his maître d'hôtel, a Frenchman, who replied to him +in broken English, that it was not his fault, but that of the +"mal-appropriations." + +The example set by Mr. Gallatin in this particular was never forgotten, +and from his day to this strict accountability has been the tradition of +the Treasury Department, now greatly increased in detail, but in +structure essentially as it was originally organized. Of its management +Mr. Sherman was able to say in his report of December 1, 1879, "The +organization of the several bureaus is such, and the system of +accounting so perfect, that the financial transactions of the government +during the past two years, aggregating $3,354,345,040, have been +adjusted without question with the exception of a few small balances, +now in the process of collection, of which it is believed that the +government will eventually lose less than $13,000, or less than four +mills for each $1000 of the amount involved;" and in 1880 he said with +entire truth, "The department is a well organized and well conducted +business office, depending mainly for its success upon the integrity and +fidelity of the heads of bureaus and chiefs of divisions." + + +_Banking_ + +There is no more instructive chapter in the history of finance than that +upon the banking system of the United States. It has its distinct eras +of radical change, each of which presents a series of tentative +experiments. The outcome, by a process of development, in which +political expediency has been as effective an agency as financial +necessity, is the present national banking system. Though the term +"government," or "national," bank is constantly used in reference to the +great banking institutions of England, France, and the United States, no +one of these is in the true sense of the word a national bank. The Bank +of England is a chartered corporation, the Bank of France an association +instituted by law. The Bank of North America, and the Bank of the United +States which followed it, were founded on the same principle. Both were +corporations of individuals intimately connected with the government, +enjoying certain privileges accorded and being under certain +restrictions, but otherwise independent of government control. + +The Bank of North America, the first bank established in the United +States, was also the first which had any direct relation to the +government. It was the conception of the comprehensive and original mind +of Robert Morris, the financier or superintendent of the public finances +of the United States. Its purpose was not the convenience or profit of +individuals, but to draw together the scattered financial resources of +the country and found a public credit. He submitted his plan to +Congress, which adopted a resolution of approval May 26, 1781. The +original plan contemplated a capital of ten millions of dollars; but the +collection of such a sum in gold and silver in one depository was beyond +the range of possibility at that period, and the capital was finally +fixed at four hundred thousand dollars, in one thousand shares of four +hundred dollars each. Subscription books were immediately opened, but +not more than $70,000 was entered during the summer months. The arrival +at Boston of a French war frigate with a remittance of $470,000 in +specie, which was brought to Philadelphia and deposited in the vaults of +the bank, enabled Mr. Morris to mature his plans. He designed to retain +this sum in the bank as a specie basis; but the necessities of the +country were so urgent during the critical season of the Yorktown +campaign, that nearly one half of it was exhausted before an +organization could be effected. In December Congress passed an ordinance +of incorporation. Mr. Morris then subscribed the specie remaining in the +Treasury, about $254,000, for shares for account of the United States, +which became thereby the principal stockholder. The limit assigned by +the ordinance remained, however, at ten millions of dollars. There was +nothing in the acts of Congress which implied any exclusive right of the +United States government in the bank except during the war of the +Revolution. A local charter was obtained from the legislature of +Pennsylvania, and the bank was opened in Philadelphia for the +transaction of business in January, 1782. Its services to the government +during the period of the war were inestimable. In the words of Hamilton, +"American independence owes much to it." But after the war such were +the local jealousies, the fears of oppression, and the dread of foreign +influence, that, on the petition of the inhabitants of Philadelphia and +some of the neighboring counties, the legislature of Pennsylvania +repealed its charter on September 13, 1785. The bank continued its +operations, however, under the charter from Congress. On March 17, 1787, +the legislature of Pennsylvania renewed the charter for fourteen years +and limited the capital to two millions of dollars. The charter was +extended for a similar term of fourteen years on March 26, 1799. Thus in +the beginning of the American banking system are found that distrust and +jealousy of money power which seem inherent in democracies. The exercise +of state jurisdiction over the existence of the Bank of North America +suggested possible embarrassments, which could not escape the +discernment of Hamilton, whose policy, as it was also that of the +Federal party, was to strengthen the powers of the government in every +vital branch of administration. + + * * * * * + +In his comprehensive plan of government Hamilton included a financial +institution to develop the national resources, strengthen the public +credit, aid the Treasury Department in its administration, and provide a +secure and sound circulating medium for the people. On December 13, +1790, he sent in to Congress a report on the subject of a national bank. +The Republican party, then in the minority, opposed the plan as +unconstitutional, on the ground that the power of creating banks or any +corporate body had not been expressly delegated to Congress, and was +therefore not possessed by it. Washington's cabinet was divided; +Jefferson opposing the measure as not within the implied powers, because +it was an expediency and not a paramount necessity. Later he used +stronger language, and denounced the institution as "one of the most +deadly hostility existing against the principles and form of our +Constitution," nor did he ever abandon these views. There is the +authority of Mr. Gallatin for saying that Jefferson "died a decided +enemy to our banking system generally, and specially to a bank of the +United States." But Hamilton's views prevailed. Washington, who in the +weary years of war had seen the imperative necessity of some national +organization of the finances, after mature deliberation approved the +plan, and on February 25, 1791, the Bank of the United States was +incorporated. The capital stock was limited to twenty-five thousand +shares of four hundred dollars each, or ten millions of dollars, payable +one fourth in gold and silver, and three fourths in public securities +bearing an interest of six and three per cent. The stock was immediately +subscribed for, the government taking five thousand shares, two millions +of dollars, under the right reserved in the charter. The subscription of +the United States was paid in ten equal annual installments. A large +proportion of the stock was held abroad, and the shares soon rose above +par. By an act of March 2, 1791, the funded three per cents. were also +made receivable in payment of subscriptions to the bank, whence it has +been said that out of the funding system sprung the bank, as three +fourths of its capital consisted of public stocks. Authority was given +the bank to establish offices of discount and deposit within the United +States. The chief bank was placed in Philadelphia, and branches were +established in eight cities, with capitals in proportion to their +commercial importance. + +In 1809 the stockholders of the Bank of the United States memorialized +the government for a renewal of their charter, which would expire on +March 4, 1811; and on March 9, 1809, Mr. Gallatin sent in a report in +which he reviewed the operations of the bank from its organization. Of +the government shares, five million dollars at par, two thousand four +hundred and ninety-three shares were sold in 1796 and 1797 at an advance +of 25 per cent., two hundred and eighty-seven in 1797 at an advance of +20 per cent., and the remaining 2220 shares in 1802, at an advance of 45 +per cent., making together, exclusive of the dividends, a profit of +$671,680 to the United States. Eighteen thousand shares of the bank +stock were held abroad, and seven thousand shares, or a little more than +one fourth part of the capital, in the United States. A table of all the +dividends made by the bank showed that they had on the average been at +the rate of 8-3/8 (precisely 8-13/34) per cent. a year, which proved +that the bank had not in any considerable degree used the public +deposits for the purpose of extending its discounts. From a general view +of the debits and credits, as presented, it appeared that the affairs of +the Bank of the United States, considered as a moneyed institution, had +been wisely and skillfully managed. The advantages derived by the +government Mr. Gallatin stated to be, 1, safekeeping of the public +moneys; 2, transmission of the public moneys; 3, collection of the +revenue; 4, loans. The strongest objection to the renewal of the charter +lay in the great portion of the bank stock held by foreigners. Not on +account of any influence over the institution, since they had no vote; +but because of the high rate of interest payable by America to foreign +countries. If the charter were not renewed the principal of that +portion, amounting to $7,200,000, must at once be remitted abroad; but +if the charter were renewed, dividends equal to an interest of about +8-1/2 per cent. per annum must be remitted. Mr. Gallatin's report closed +with the following suggestions:-- + +I. That the bank should pay an interest to the United States on the +public deposits above a certain sum. + +II. That it should be bound to lend the United States a sum not +exceeding three fifths of its capital. + +III. That the capital stock of the bank should be increased to thirty +millions of dollars, to be subscribed for, 1, five millions by citizens +of the United States; 2, fifteen millions by the States; a branch to be +established in each subscribing State; 3, payments by either individuals +or States to be in specie or public stock of the United States at rates +to be fixed by law; the subscribing States to pay in ten annual +installments. + +IV. That some share should be given in the direction to the general and +state governments by appointment of directors in the general direction +and branches. + +The result of this plan would be, 1st, that the United States might, +from the interest on the public deposits, accumulate during years of +peace and prosperity a treasure sufficient to meet periods of war and +calamity; 2d, that they might rely on a loan of eighteen millions of +dollars in any sudden emergency; 3d, that by the payment in ten +installments the increase in capital would be in proportion to the +progressive state of the country; 4th, that the bank itself would form +an additional bond of common interest and union amongst the several +States. But these arguments availed not against the blind and ignorant +jealousy of the Republican majority in the House. The days of the bank +were numbered. Congress refused to prolong its existence, and the +institution was dissolved. Fortunately for the country, it wound up its +affairs with such deliberation and prudence as to allow of the +interposition of other bank credits in lieu of those withdrawn, and +thus prevented a serious shock to the interests of the community. In the +twenty years of its existence from 1791 to 1811 its management was +irreproachable. Its annual dividends from 1791 to 1809 were 8-2/3 per +cent., and its stock, always above par, from 1805 to 1809 ranged from 20 +to 40 per cent. premium. + +In its numerous and varied relations to the government it had been a +useful and faithful servant, and its directors had never assumed the +attitude of money kings, of which the Jeffersonian democracy pretended +to stand in hourly dread. To the general and important nature of its +financial service Mr. Gallatin gave his testimony in 1830; after his own +direct participation in public affairs had ended. + + "Experience, however, has since confirmed the great utility and + importance of a bank of the United States in its connection with + the Treasury. The first great advantage derived from it consists in + the safekeeping of the public moneys, securing in the first + instance the immediate payment of those received by the principal + collectors, and affording a constant check on all their + transactions; and afterwards rendering a defalcation in the moneys + once paid, and whilst nominally in the treasury, absolutely + impossible. The next, and not less important, benefit is to be + found in the perfect facility with which all the public payments + are made by checks or treasury drafts, payable at any place where + the bank has an office; all those who have demands against + government are paid in the place most convenient to them; and the + public moneys are transferred through our extensive territory at a + moment's warning without any risk or expense, to the places most + remote from those of collection, and wherever public exigencies may + require." + +Late in life, in a letter to John M. Botts, June 14, 1841, Mr. Gallatin +expressed the same opinions with regard to the usefulness of a +government bank as an aid to the Treasury Department, but limited his +approval to that use. "Except in its character of fiscal agent to the +general government I attach much less importance to a national bank than +several of those who are in favor of it." "Did I believe," he adds in +the same letter, "that a bank of the United States would effectually +secure us a sound currency, I would think it a duty at all hazards to +promote the object." + +The reason for his doubts in 1841 is easily seen in the impossibility of +annihilating or controlling the three hundred distinct currencies of as +many banks, each nominally convertible into specie at its point of +issue; a financial puzzle which Mr. Chase solved in the device and +organization of the present national banking system, which, without +involving the government in banking operations, affords to the people a +homogeneous currency of uniform value, and secures its convertibility by +reasonable but absolute restrictions, upon conformity to which the +existence of the banks depends. The exigencies of war compelled an +acquiescence in the plans of Mr. Chase, which, at the time when Mr. +Gallatin expressed his doubts, could not have been had in any system +whatever which involved the subordination of the banks. + +The wide spread of the state bank system, with its irresponsible and +unlimited issues, occurring subsequent to Mr. Gallatin's withdrawal from +the Treasury, was a consequence of the failure to renew the charter of +the Bank of the United States; and if ever there were a system by which +the inhabitants of States whose floating capital was small were placed +at the mercy of moneyed corporations of the States where it was +abundant, it was the state bank system. The experience of the old +confederation had not taught this lesson. The colonial system was +continued by the several States, and bills of credit were issued on +their faith. The continental system was a compound of the main features +of this plan. The bills were issued by the Congress, but the States were +relied upon for their ultimate redemption. + +The collapse of the entire fabric of finance led to the establishment of +the Bank of North America, the notes of which were redeemable and +redeemed at the bank counters. The article in the Constitution of 1787, +prohibiting the issue of bills of credit by the States, was evidently +intended to secure a uniform currency to the people of the United +States, and it has been by a strange perversion of this manifest +intention that the power has been conceded to the States to charter +corporations to do that which was forbidden to themselves in their +sovereign capacity; namely, to issue bills of credit, which bank-notes +are. It is idle to say that, because such bills were not a "legal +tender," they were therefore not of the character which the Constitution +forbade. Necessity knows no law, and in the absence of any other +currency the people were perforce compelled to take what they could get. +Experience later showed that large amounts of paper money manufactured +in one State were easily put in circulation in far distant communities, +and considerable sums, through the operations of wear and tear and the +vicissitudes incident to its fragile nature, never returned to plague +the inventor. + +At the time of the organization of the National Bank by Hamilton, there +were but three banks in the United States: the Bank of North America, +the Bank of New York, and the Bank of Massachusetts. Their added capital +amounted to two millions of dollars, and their issues were +inconsiderable. + +Mr. Gallatin estimated that in January, 1811, just before the expiration +of the bank charter, there were in the United States eighty-eight state +banks with a capital of $42,612,000. + +--------------------------+-------------+---------------+------------ + | | Notes in | + | Capital. | Circulation. | Specie. +--------------------------+-------------+---------------+------------ +Bank of the United States | $10,000,000 | $5,400,000 | $5,800,000 +Eighty-eight State Banks | 42,610,601 | 22,700,000 | 9,600,000 +--------------------------+-------------+---------------+------------ + | $52,610,601 | $28,100,000 | $15,400,000 +--------------------------+-------------+---------------+------------ + +Over the local institutions the Bank of the United States always +exercised a salutary control, checking any disposition to overtrade by +restraining their issues and holding them to a proper specie reserve; +and this by no other interference except its countenance or ill favor, +as such banks severally observed or disregarded the ordinary rules of +financial prudence. The immediate effect of the refusal of Congress to +recharter the Bank of the United States was to bring the Treasury to the +verge of bankruptcy. The interference of Parish, Girard, and Astor alone +saved the credit of the government, and this interference was no doubt +prompted by self-interest. That Mr. Astor was hostile to the bank is +certain. Gallatin wrote to Madison in January, 1811, that Mr. Astor had +sent him a verbal message, "that in case of non-renewal of the charter +of the Bank of the United States, all his funds and those of his +friends, to the amount of two millions of dollars, would be at the +command of government, either in importing specie, circulating +government paper, or in any other way best calculated to prevent any +injury arising from the dissolution of the bank," and he added that Mr. +Bentson, Mr. Astor's son-in-law, in communicating this message said, +"that in this instance profit was not Mr. Astor's object, and that he +would go great lengths, partly from pride and partly from wish, to see +the bank down." In 1813, when the bank was "down," Mr. Gallatin was no +longer master of the situation. He offered to treat directly with +Parish, Girard, and Astor for ten millions of dollars, but finding some +hesitation, he opened the loan for subscription. When the subscription +failed, he was at the mercy of the capitalists. + +Another immediate effect of the dissolution of the bank was the +withdrawal from the country of the foreign capital invested in the bank, +more than seven millions of dollars. This amount was remitted, in the +twelve months preceding the war, in specie. Specie was at that time a +product foreign to the United States, and by no means easy to obtain. +Specie, as Mr. Gallatin profoundly observed, does not precede, but +follows wealth. The want of it nearly destroyed Morris's original plan +for the Bank of North America, and was only made up by the fortunate +receipt of the French remittances. In 1808 the specie in the vaults of +the treasury reached fourteen millions of dollars, but during the +operation of the Embargo Act, the banks of New England had gradually +accumulated a specie reserve, and that of Richmond, Virginia, pursued +the same policy. Together they held one third of the entire specie +reserve of the banks. The amount of specie in the Bank of the United +States, January 1, 1811, had fallen to $5,800,000, which soon found its +way abroad. + +The notes of the Bank of the United States, payable on demand in gold +and silver at the counters of the bank, or any of its branches, were, +by its charter, receivable in all payments to the United States; but +this quality was also stripped from them on March 19, 1812, by a repeal +of the act according it. To these disturbances of the financial +equilibrium of the country was added the necessary withdrawal of fifteen +millions of bank credit and its transfer to other institutions. This +gave an extraordinary impulse to the establishment of local banks, each +eager for a share of the profits. The capital of the country, instead of +being concentrated, was dissipated. Between January 1, 1811, and 1815, +one hundred and twenty new banks were chartered, and forty millions of +dollars were added to the banking capital. To realize profits, the +issues of paper were pushed to the extreme of possible circulation. +Meanwhile New England kept aloof from the nation. The specie in the +vaults of the banks of Massachusetts rose from $1,706,000 on June 1, +1811, to $7,326,000 on June 1, 1814. This was a consequence of the New +England policy of opposition. Mr. Gallatin estimated that the proceeds +of loans, exclusive of treasury notes and temporary loans, paid into the +treasury from the commencement of the war to the end of the year 1814 +were $41,010,000: of which sum the Eastern States lent $2,900,000; the +Middle States, $35,790,000; Southwestern States, $2,320,000. + +The floating debt of the United States, consisting of treasury notes +and temporary loans unpaid, amounted, January 1, 1815, to $11,250,000, +of which nearly four fifths were loaned by the cities of New York, +Philadelphia, and Baltimore, and the District of Columbia. The +suspension of the banks was precipitated by the capture of Washington. +It began in Baltimore, which was threatened by the British, and was at +once followed in Philadelphia and New York. Before the end of September +all the banks south and west of New England had suspended specie +payment. In his "Considerations on the Currency," Mr. Gallatin expressed +his-- + + "deliberate opinion that the suspension might have been prevented + at the time when it took place, had the Bank of the United States + been in existence. The exaggerated increase of state banks, + occasioned by the dissolution of that institution, would not have + occurred. That bank would _as before_ have restrained them within + proper bounds and checked their issues, and through the means of + its offices it would have been in possession of the earliest + symptoms of the approaching danger. It would have put the Treasury + Department on its guard; both, acting in concert, would certainly + have been able, at least, to retard the event; and as the treaty of + peace was ratified within less than six months after the suspension + took place, that catastrophe would have been avoided." + +But within fifteen months the bank issues increased from forty-five and +a half to sixty millions. + +----------------------+-------------+--------------+------------ + | Capital. | Circulation. | Specie. +----------------------+-------------+--------------+------------ +Banks of New England. | $15,690,000 | $5,320,000 | $8,200,000 +Other Banks | 66,930,000 | 44,730,000 | 8,600,000 +----------------------+-------------+--------------+------------ +1815. 208 State Banks.| $82,620,000 | $50,050,000 | $16,800,000 +1816. 246 State Banks.| 89,822,422 | 68,000,000 | 19,000,000 +----------------------+-------------+--------------+------------ + +The depression of the local currencies ranged from seven to twenty-five +per cent. In New York and Charleston it was seven to ten per cent. below +the par of coin. At Philadelphia from seventeen to eighteen per cent. At +Washington and Baltimore from twenty to twenty-two, and at Pittsburgh +and on the frontier, twenty-five per cent. below par. The circulating +medium, or measure of values, being doubled, the price of commodities +was doubled. The agiotage, of course, was the profit of the bankers and +brokers; a sum estimated at six millions of dollars a year, or ten per +cent. on the exchanges of the country, which McDuffie, in his celebrated +report, estimated at sixty millions annually. + +In November the Treasury Department found itself involved in the common +disaster. The refusal of the banks, in which the public moneys were +deposited, to pay their notes or the drafts upon them in specie deprived +the government of its gold and silver; and their refusal, likewise, of +credit and circulation to the issues of banks in other States deprived +the government also of the only means it possessed for transferring its +funds to pay the dividends on the debt and discharge the treasury notes. +Mr. Dallas found himself compelled to appeal to the banks by circular to +subscribe for sufficient treasury notes to secure them such advances as +might be asked of them for the discharge of the public obligations. + +"In the latter end of the year 1814," says Mr. Gallatin, "Mr. Jefferson +suggested the propriety of a gradual issue by government of two hundred +millions of dollars in paper;" commenting upon which Mr. Gallatin +remarks that Mr. Jefferson, from the imperfect data in his possession, +"greatly overrated the amount of paper currency which could be sustained +at par; and he had, on the other hand, underrated the great expenses of +the war;" but at "all events," he adds, "the issue of government paper +ought to be kept in reserve for extraordinary circumstances." But here +it may be remarked that the evolution of the systems of American finance +seems to lead slowly but surely to an entire divorce of banking from +currency, and the day is not far distant when the circulating medium of +the United States will consist of gold and silver, and of government +issues restricted, according to the English principle, to the minimum of +circulation, and kept equivalent to coin by a specie reserve in the +treasury; while the banks, their circulation withdrawn and the +institutions freed from any tax, will be confined to their legitimate +business of receiving deposits and making loans and discounts. + +On October 14, 1814, Alexander J. Dallas, Mr. Gallatin's old friend, who +had been appointed secretary of the treasury on the 6th of the same +month, in a report of a plan to support the public credit, proposed the +incorporation of a national bank. A bill was passed by Congress, but +returned to it by Madison with his veto on January 15, 1815. In this +peculiar document Madison "waived the question of the constitutional +authority of the legislature to establish an incorporated bank, as being +precluded, in his judgment, by repeated recognitions, under varied +circumstances, of the validity of such an institution in acts of the +legislative, executive, and judicial branches of the government." But he +objected for reasons of detail. Mr. Dallas again, as a last resort, +insisted on a bank as the only means by which the currency of the +country could be restored to a sound condition. In December, 1815, +Dallas reported to the committee of the House of Representatives on the +national currency, of which John C. Calhoun was chairman, a plan for a +national bank, and on March 3, 1816, the second Bank of the United +States was chartered by Congress. The capital was thirty-five millions, +of which the government held seven millions in seventy thousand shares +of one hundred dollars each. Mr. Madison approved the bill. This +completed the abandonment of every shred of principle claimed by the +Republican party as their rule of action. They struggled through the +rest of their existence without a political conviction. The national +bank, and the system of internal taxation which had been scorned by +Jefferson and Madison as unconstitutional, were accepted actually under +Madison's administration. Gallatin's success, owing to the development +and application of Hamilton's plans, was a complete vindication of the +theory and practice of the Federalists which they abhorred; Jefferson's +plan of a government issue of paper money was a higher flight into the +upper atmosphere of implied powers than Hamilton ever dreamed of. + +The second national bank of the United States was also located at +Philadelphia, and chartered for twenty years. The manner in which it +performed its financial service is admirably set forth in Mr. Gallatin's +"Considerations on the Currency," already mentioned. It acted as a +regulator upon the state banks, checked excessive issues on their part, +and brought the paper currency of the country down from sixty-six to +less than forty millions, before the year 1820. + +In April, 1816, Mr. Dallas having signified his intention to resign the +Treasury, Mr. Madison wrote to Gallatin, offering him his choice between +the mission to France and the Treasury Department. Mr. Gallatin's reply +was characteristic. He declined the Treasury, but with reluctance, since +he thought he would be more useful at home than abroad, and because he +preferred to be in America rather than in Europe. One of his +preponderating reasons was that, although he felt himself competent to +the higher duties of the office, there was, for what he conceived "a +proper management of the Treasury, a necessity for a mass of mechanical +labor connected with details, forms, calculating, etc., which having +lost sight of the thread and routine, he could not think of again +learning and going through." He was aware that there was "much confusion +due to the changes of office and the state of the currency, and thought +that an active young man could alone reinstate and direct properly that +department." + +In June of the same year, while waiting for the Peacock, which was to +carry him across the sea, Gallatin wrote Mr. Madison an urgent letter, +impressing upon him the necessity of restoring specie payment, and his +perfect conviction that nothing but the will of the government was +wanted to reinstate the country in its moral character in that respect. +He dreaded the "paper taint," which he found spreading as he journeyed +northward. + +In January 1817, delegates from the banks of New York, Philadelphia, +Baltimore and Virginia met in Philadelphia and agreed to a general and +simultaneous resumption of specie payments. The Bank of the United +States proposed a compact which was accepted by the state banks and +ratified by the secretary of the treasury. That institution engaged, to +a reasonable extent, to support any bank menaced. This engagement and +the importation of seven millions of specie from abroad by the Bank of +the United States secured a general restoration of specie payment. In +1822 Mr. Gallatin was tendered and declined the office of president of +the Bank of the United States. + +In 1829 he prepared for Mr. Ingham, then secretary of the treasury, a +masterly statement of the relative value of gold and silver. In 1830 Mr. +Gallatin wrote for the "American Quarterly Review" his essay, +"Considerations on the Currency and Banking System of the United +States." Appearing at the time when the renewal of the charter of the +Bank of the United States was an absorbing question, this essay was +equally sought for by both the friends and opponents of the bank. It is +not confined, however, to this subject, but covers the entire field of +American finance. His treatment of the currency question was novel. He +analyzed the systems of Europe, compared them with those which prevailed +in the United States, and reached the conclusion, the general +correctness of which has been justified by the experience of all other +nations, and sooner or later will be accepted by our own; namely, the +necessity of a currency strong in the precious metals, and the +restriction of paper money to notes of one hundred dollars to be issued +by the government. This limit is higher than that adopted in France and +England, but the general principle that a circulating medium is sound +only as it is strong in gold and silver, and that gold and silver can +only be retained permanently by making a place for them in the +circulating medium by a restriction of paper issues, will yet find +favor even in this paper-loving country. + +In 1832 Mr. Gallatin accepted the presidency of a bank in New York, the +subscription to the stock of which, $750,000, was completed by Mr. John +Jacob Astor on condition that Mr. Gallatin should manage its affairs. +The direction of its concerns, without absorbing his time, kept him in +the financial current. The bank was called the National Bank of New +York. But not in this modest post was he to find the financial path +smooth. It is true he had lived in the flesh to see the financial +millennium. The rapid growth of the country and the faithful adherence +of his successors in the Treasury Department to the funding principle +had at last realized his dream. The national debt was extinguished. The +last dollar was paid. Louis McLane, secretary of the treasury, on +December 5, 1832, in his report on the finances, said that the dividends +derived from the bank shares held by the United States were more than +was required to pay the interest, and that the _debt_ might therefore be +considered as substantially extinguished after January 1, 1833. + +On December 3, 1833, Roger B. Taney, secretary of the treasury, reported +to Congress that he had directed the removal of the deposits of the +government from the Bank of the United States and placed them in banks +of his own selection. He gave a number of reasons for this extraordinary +exercise of the power which he obtained by his appointment on September +23, 1833. He received his reward in June, 1834, being then transferred +by President Jackson to the seat of chief justice of the Supreme Court. +In his annual report Taney named, among his elaborate reasons for the +removal, that the bank had used its money for electioneering purposes, +and that he "had always regarded the result of the last election of +President of the United States as the declaration of a majority of the +people that the charter ought not to be renewed." He further expressed +the opinion "that a corporation of that description was not necessary +either for the fiscal operations of the government or the general +convenience of the people." It mattered little to him that Mr. Gallatin +had only recently pointed out that from the year 1791 the operations of +the Treasury had, without interruption, been carried on through the +medium of banks; during the years 1811 to 1814, by the state banks, with +a result which no one had as yet forgotten; before and since that brief +interval through the Bank of the United States. Enough for Taney, that +it was the will of his imperious master, 'the pugnacious animal,' as +Gallatin aptly termed him. + +In October, 1834, Taney's successor in the Treasury, Levi Woodbury, gave +notice that the remaining debt, unredeemed after January 1, 1835, would +cease to bear interest and be promptly paid on application to the +commissioners of loans in the several States. On December 8, 1835, Mr. +Woodbury reported "an unprecedented spectacle presented to the world of +a government virtually without any debts and without any direct +taxation." The surplus revenues, about thirty-seven and a half millions +of dollars, had by an act of the previous session been distributed among +the several States. But the secretary and the country soon found that +they were on dangerous ground. In December, 1837, the same secretary, +alarmed at his responsibility, said to Congress, in warning words, "We +are without any national debt to absorb and regulate surpluses, or any +adequate supply of banking institutions which provide a sound currency +for general purposes by paying specie on demand, or which are in a +situation fully to command confidence for keeping, disbursing, and +transferring the public funds in a satisfactory manner." + +The Bank of the United States, on the expiration of its charter in +March, 1836, accepted a charter from the State of Pennsylvania; but, +though its influence continued to be as great, its direction was no +longer the same. Abandoning its legitimate business, it speculated in +merchandise, and even kept an agent in New Orleans to compete with the +Barings in purchases of the cotton crop as a basis for exchange. +Precisely as in 1811, after the withdrawal of the control of the Bank of +the United States, the state banks ran a wild career of speculation. +From 1830 to 1837 three hundred new banks sprang up with an additional +capital of one hundred and forty-five millions, doubling, as twenty +years before, the banking capital of the country. This volume the +deposits of the Treasury continued to swell. Mr. Woodbury was the first +to take alarm. In December, 1836, he reported the specie in the country +to have increased from thirty millions in 1833 to seventy-three millions +at the date of his report, and the paper circulation, in the same +period, to have advanced, since the removal of the deposits from the +Bank of the United States, from eighty millions to one hundred and +twenty millions, or forty millions in eighteen months; and the bank +capital, in the same period, to have increased from two hundred to three +hundred millions. Importation augmented; the balance of trade suddenly +turned against the United States to the extent of one hundred and fifty +millions, and coin began to flow abroad to liquidate the account. There +was no debt to attract foreign investment and arrest the export of +specie. Added to this was the withdrawal of the government deposits from +the pet banks, which compelled an immediate contraction. The result was +inevitable. On May 10, 1837, the New York banks suspended, Mr. +Gallatin's institution being of course dragged down with the rest. It is +idle to suppose that any single bank can hold out against a general +suspension. It may liquidate or become a bank of deposits, but it cannot +maintain its relations with its sister institutions except on a basis of +common accord. + +A general suspension followed. Mr. Woodbury proved himself equal to the +emergency, and recommended a plan of "keeping the public money under new +legislative provisions without using banks at all as fiscal agents." +This was the beginning of the sub-treasury system, a new departure in +treasury management, and a further evolution in American finance. It +still remains, and will no doubt be permanent. Its establishment was +necessary because of the absence of a national bank. + +Mr. Gallatin at once turned his attention to bring about first a +liquidation and then a resumption. It was a favorite maxim with him, +that "the agonies of resumption are far harder to endure than those of +suspension," as it is easier to refrain from lapse of virtue than to +restore moral integrity once impaired. But in resumption the suffering +falls where it belongs, on the careless, the improvident, and the +over-trader. + +On August 15, 1837, the officers of the banks of New York city, in a +general meeting, appointed a committee of three to call a convention of +the principal banks to agree upon a time for a resumption of specie +payments. This committee, of which Mr. Gallatin was chairman, on August +18 addressed a circular to the principal banks in the United States, +inviting the expression of their wishes as to the time and place for a +convention, suggesting New York as the place, and October, 1837, as the +time. They said, in addition, that the banks of New York city, in view +of the law of the State dissolving them as legal corporations in case +of suspension for one year, must resume at some time between January 1 +and March 15, 1838. The circular committed the New York banks to no +definite action, but expressed the opinion that the fall in the rate of +exchanges indicated an early return of specie to par, when resumption +could be effected without danger. The banks of Philadelphia held a +meeting on August 29, and adopted resolutions declaring it inexpedient +to appoint delegates to the proposed convention. Aware of the reasons +for this action, the chief of which was the extended and perhaps +insolvent condition of the United States Bank of Pennsylvania, the New +York committee invited the banks in the several States to appoint +delegates to meet on November 27, 1837, in New York. Delegates from +banks of seventeen States and the District of Columbia appeared. On the +30th resolutions were brought in recommending a general resumption on +July 1, without precluding an earlier resumption on the part of such +banks as might find it necessary. The Pennsylvania banks opposed this +action with resolutions condemning the idea of immediate resumption as +impracticable, and also, in the absence of delegates from the banks of +Louisiana, Mississippi, Alabama, and Tennessee, as unwise. The +convention met again on December 2, when an adjournment was carried to +April 11, 1838, when delegates from the banks not represented were +invited to attend. Mr. Gallatin saw that the combination of the +Philadelphia and Boston banks, under the lead of Mr. Biddle, would +certainly force a further postponement. Exchange on London, which had +been as high as 121, the true par being about 109-1/2, nominal, had +fallen to 111-1/2, which, considering that the city bank paper was at a +discount of five per cent., was at the rate of 2-1/2 per cent. below +specie par. The exportation of specie had entirely ceased. + +On December 15 Mr. Gallatin and his committee appointed at the general +convention submitted a report which he had drafted, which, though +addressed to the New York banks, covered the whole ground. Meanwhile the +highest authority in Pennsylvania had given it as his opinion "that the +banks of Pennsylvania were in a much sounder state than before the +suspension, and that the resumption of specie payments, so far as it +depends on their situation and resources, may take place at any time." + +On February 28, 1838, Mr. Gallatin's committee made a further report +showing that the liabilities of the New York banks had been reduced more +than twelve millions and a half, or fifty per cent., and asserting that +with the support of the community and the state authorities they could +resume on an equal footing on May 10. This declaration was welcomed with +great satisfaction by a general meeting of the citizens of New York. On +April 11 the general convention again met in New York. The Philadelphia +banks declined to attend. A letter from Mr. Woodbury promised the +support of the Treasury Department. A committee of one from each State +was appointed, which recommended the first Monday in October as the +earliest day for a general resumption. The convention could not, +however, be brought to fix upon so early a day, but finally fixed upon +January 1, 1839, and adjourned. The New York banks would have accepted +July 1, 1838, but this being refused they resumed alone on May 10, and +the force of public opinion compelled resumption by nearly all the banks +of the country on July 1. + +The terrible contraction was fatal to the United States Bank of +Pennsylvania, which after a vain struggle closed its doors in October, +1839, and carried with it the entire banking system of the Southern and +Southwestern States. Although in no way similar to the semi-governmental +institutions which preceded it, yet, from its similarity of name and +identity of location, its disastrous failure added to the blind popular +distrust of its predecessors, which narrow-minded politicians had +fostered for their own selfish purposes. Fortunately the sub-treasury +plan of Mr. Woodbury supplied the need of a safe place of deposit which, +since the refusal of Congress to renew the charter of the old bank, had +been sorely felt. + +In 1838, on the foundation of the Bank of Commerce under the free +banking law of the State of New York, the presidency of it was first +tendered to Mr. Gallatin. The directors of this bank were among the most +distinguished financiers of the city, and its object was to provide a +conservative institution with sufficient power and capital to act as a +regulator upon the New York banks. Profit to the stockholders was +secondary to the reserve power for general advantage. + +In June, 1839, Mr. Gallatin resigned his post as president of the +National Bank of New York. In 1841 he published a financial essay, which +he entitled "Suggestions on the Banks and Currency of the United +States," a paper full of information, but from the nature of the subject +not to be compared in general interest with his earlier paper, which is +as fresh to-day as when it was written. Mr. Gallatin condemned paper +currency as an artificial stimulus, and the ultimate object of his +essays was to annihilate what he termed the "dangerous instrument." He +admitted its utility and convenience, when used with great sobriety, but +he deprecated its tendency to degenerate into a depreciated and +irredeemable currency. This tendency the present national banking law +arrests, but the law rather invites than prohibits the stimulus of +increased issues. The last word has not yet been said on national +currency, which, though the basis of all commercial transactions, has +necessarily no other relation to banks than that which it holds to any +individual in the community. + +Economic questions have interested the highest order of mind on the two +continents. Sismondi published a paper on commercial wealth in 1803, and +in 1810 a memoir on paper money, which he prepared to show how it might +be suppressed in the Austrian dominions; Humboldt made a special study +of the sources and quantity of the precious metals in the world, in +which Mr. Gallatin aided him by investigation in America. Michel +Chevalier was interested in the same subjects; surviving his two masters +in the art and witnessing the marvelous effects of the additions made by +America to the store of precious metals, he continued the study in the +spirit of his predecessors, and favored the world with instructive +papers. Mr. Gallatin's contributions to this science are remarkable for +minute research and careful deductions. + +In 1843 President Tyler tendered the Treasury portfolio to Mr. Gallatin. +The venerable financier looked upon the offer as an act of folly to +which a serious answer seemed hardly necessary. Yet as silence might be +misconstrued, he replied that he wanted no office, and to accept at his +age that of secretary of the treasury would "be an act of insanity." He +was then in his eighty-third year. The offer of the post was but an +ill-considered caprice of Mr. Tyler. + +FOOTNOTES: + +[Footnote 10: Cents are omitted as confusing figures.] + +[Footnote 11: The first Annual Report of the Secretary of the Treasury. +This was under the Supplementary Treasury Act.] + +[Footnote 12: Excess of receipts, notwithstanding the purchase of +Louisiana and payments on account of principal and interest of the +debt.] + +[Footnote 13: These were the banks of New York, Boston, Philadelphia, +and Baltimore. Seven presidents formed the committee. John A. Stevens of +New York was chairman, by request of the Secretary of the Treasury. The +other members were named by him. The sum advanced to the government was +one hundred and fifty millions of dollars in coin.] + +[Footnote 14: At Portland, $120,000; Salem, $183,600; Boston, $75,300; +Providence, $67,800; Richmond, $49,000; Norfolk, $103,000; Charleston, +$354,000.] + +[Footnote 15: Report of Secretary Dallas, September 20, 1816.] + +[Footnote 16: Act of March 3, 1817.] + +[Footnote 17: _Democratic Review_, xii. 641.] + +[Footnote 18: Chairman of the Committee of Ways and Means.] + + + + +CHAPTER VII + +IN THE CABINET + + +The general principles which Mr. Jefferson proposed to apply in his +conduct of the government were not principles of organization but of +administration. The establishments devised by Hamilton, in accordance +with or in development of the provisions of the Constitution, were +organic. The new policy was essentially restrictive and economic. The +military and naval establishments were to be kept at their lowest +possible limit. The Treasury Department was to be conducted on strictly +business principles. The debt was to be reduced and finally paid by a +fixed annual appropriation. The revenue was to be raised by imposts on +importation and tonnage, and by direct taxation, if necessary. The +public land system was to be developed. A scheme of internal +improvements by land and water highways was to be devised. All these +purposes except the last had been declared by the opposition during the +last part of Washington's second term and during Adams's presidency, and +had been lucidly expounded by Madison, Gallatin, Giles, Nicholas, and +others of the Republican leaders. On all these subjects Mr. Gallatin +was in accord with his chief. Only upon the bank question were they at +issue. Mr. Jefferson detested or feared the aristocracy of money, while +Gallatin, with a clearer insight into commercial and financial +questions, recognized that in a young country where capital was limited, +and specie in still greater disproportion to the increasing demands of +trade, a well-ordered, well-managed money institution was an enormous +advantage, if not an imperative necessity to the government and the +people. + +Peace was necessary to the success of this general policy of internal +progress, but peace was not to be had for the asking. It was not till +half a century later that the power of the western continent as a +food-producing country was fully felt by Europe, and peace with the +United States became almost a condition of existence to millions in the +old world, while this country became independent, in fact as in name, to +the fullest meaning of the word. Peace was not menaced during +Jefferson's first administration, for the Federalists had left no legacy +of diplomatic discord to embarrass their successors. The divisions of +opinion were on home affairs. The Republican party was the first +opposition which had reached power since the formation of the +government. The Federalists had not hesitated to confine the patronage +of the executive to men of their own way of thinking. The Republicans +had attacked that principle. There were men even in the ranks of +Jefferson's administration who scouted the idea that the President of +the United States could become "the President of a party." But practice +and principle are not always in accord, even in administrations of +sentimental purity, and the pressure for office was as great in 1800 as +it has ever since been on the arrival of a new party to power. Beyond +all other departments of government, the Treasury depends for its proper +service upon business capacity and a knowledge of the principles of +accounting and office routine. Mr. Gallatin was well aware of the +difficulties his predecessors had encountered in finding and retaining +competent examining and auditing clerks. As there was no reason to +suppose that all this talent was to be found in the ranks of the +Republican party, and his common sense pointed out the folly of limiting +the market of supply, he early (July 25, 1801) prepared a circular to +collectors, in which he informed them "that the door of office was no +longer to be shut against any man because of his political opinions, but +that integrity and capacity suitable to the station were to be the only +qualifications required; and further, the President, considering freedom +of opinion or freedom of suffrage at public elections imprescriptible +rights of citizens, would regard any exercise of official influence to +sustain or control the same rights in others as injurious to the public +administration and practically destructive of the fundamental principles +of a republican Constitution." But Mr. Jefferson and Mr. Madison +opposed this simple declaration of a principle which has since been the +base of every attempt at reform in the civil service. Mr. Jefferson +answered that after one half of the subordinates were exchanged, talents +and worth might alone be inquired into in the case of new vacancies. +This was a miserable shuffling policy which defeated itself. For a +Federalist to retain office when such a discrimination was applied was +of itself a degradation. Mr. Jefferson here threw away and forever lost +the power to establish the true system, and fixed the curse of patronage +upon American administration. The true principle may be stated in the +form of an axiom. Administrations should rely for continuation upon +measures, not on patronage. Gallatin yielded with reluctance to the +spirit of persecution which he did not hesitate to say disgraced the +Republican cause, and sank them to a level with their predecessors. +Notwithstanding his aversion, he was compelled to follow the policy of +the cabinet. Its first result was to divide the Republican party, and to +alienate Burr, whose recommendation of Matthew L. Davis for the naval +office at New York was disregarded. Had the new administration declined +to make removals except for cause, such a dispute would have been +avoided. As it was, the friends of Burr considered the refusal as a +declaration of war. Appointments became immediately a part of the +machinery of Republican administration, as it had been part of that of +their predecessors, and each was carefully weighed and considered in +its reference to party quite as much as to public service. + +Already looking forward to the next presidential election, Gallatin was +anxious for an agreement upon Jefferson's successor, and even before the +meeting of the first Congress of his term he advised the President on +this point, and he also proposed the division of every State into +election districts by a general constitutional provision. + +Jefferson submitted the draft of his annual messages to the head of each +department, and invited their comments. Gallatin was minute in his +observations, and it is interesting to note the peculiar precision and +caution of his character in the nice criticisms of language and style, +sometimes declaratory, sometimes non-committal, but always and obviously +reasonable, and often presenting a brief argument for the change +proposed. In these days of woman's rights it is curious to read "Th. J. +to Mr. Gallatin. The appointment of a woman to office is an innovation +for which the public is not prepared, nor am I." + +Gallatin suggested a weekly general conference of the President and the +secretaries at what is now styled a cabinet meeting, and private +conferences of the President with each of the secretaries once or twice +a week on certain days and at fixed hours. The business to come before +the House was also to be considered, and the policy to be pursued +determined upon. Unfortunately in this case again Jeffersonian theory +did not accord with Jeffersonian practice. Even erratic Randolph +complained of the want of system at these cabinet meetings, where each +was at liberty to do and say as he chose; a severe trial, this, to +Gallatin. In 1845 Mr. Gallatin wrote to Edward Coles that it was "quite +unusual to submit to the cabinet the manner in which the land or naval +forces authorized by Congress, and for which appropriations had been +made, should be employed," and added that on no occasion, in or out of +cabinet, was he ever consulted on those subjects prior to the year 1812. + +In the difficulty which arose with the Barbary powers Mr. Gallatin +earnestly urged the payment of an annuity to Tripoli, if necessary for +peace. He considered it a mere matter of calculation whether the +purchase of peace was not cheaper than the expense of a war. This policy +was to be continued for eight years, at the end of which he hoped that a +different tone might be assumed. In a note on the message of 1802, +Gallatin expressed the hope to Jefferson that his administration would +"afford but few materials for historians." He would never sacrifice +permanent prosperity to temporary glitter. + +Mr. Gallatin's counsel was sought, and his opinion deferred to, on +subjects which did not fall directly within the scope of administration. +Even on questions of fundamental constitutional law his judgment was not +inferior to that of Madison himself. In one notable instance he differed +from Mr. Lincoln, the attorney-general, whom he held in high esteem as +a good lawyer, a fine scholar, "a man of great discretion and sound +judgment." This was in 1803, when the acquisition of East Louisiana and +West Florida was a cabinet question. Mr. Lincoln considered that there +was a difference between a power to acquire territory for the United +States and the power to extend by treaty the territory of the United +States, and held that the first was unconstitutional. Mr. Gallatin held +that the United States as a nation have an inherent right to acquire +territory, and that, when acquisition is by treaty, the same constituted +authorities in whom the treaty power is vested have a constitutional +right to sanction the acquisition, and that when the territory has been +acquired Congress has the power either of admitting into the Union as a +new State or of annexing to a State, with the consent of that State, or +of making regulations for the government of the territory. Mr. Jefferson +concurred in this opinion, while at the same time he thought it safer +not to permit the enlargement of the Union except by amendment of the +Constitution. Mr. Gallatin's view was practically applied in the cases +named, and later in the annexation of Texas, although he disapproved of +the latter as contrary to good faith and the law of nations. He advised +Jefferson, also, not to lay the treaty by which Louisiana was acquired +before the House until after its ratification by the Senate, taking the +ground that until then it was not a treaty, and urging that great care +should be taken to do nothing which might be represented as containing +any idea of encroachment on the rights of the Senate. He personally +interested himself in the arrangements for taking possession of New +Orleans, and, considering the expense as trifling compared with the +object, urged the dispatch of an imposing force of not less than fifteen +thousand men, which would add to the opinion entertained abroad of our +power, resources, and energy; five thousand of these to be active +troops; ten thousand an enrolled reserve. The acquisition of Louisiana +was the grand popular feature of the foreign policy of the first term of +Jefferson's administration. The internal management left much to be +desired. + +While his general views were exalted, and his principles would stand the +nicest examination in their application, Mr. Jefferson was not fortunate +in his choice of methods or men. It is not enough for an administration +to be pure; it should be above suspicion. This his was not. Time has not +washed out the stain of his intimacy with William Duane, the editor of +the infamous "Aurora." Citizen Duane, as he styled himself in the first +days of the administration, quarreled with Gallatin because he would not +apply the official guillotine, and thereafter pursued him with +uncompromising hostility. Of favoritism in appointments Mr. Gallatin +could not be accused. During his twelve years in the Treasury he +procured places for but two friends; one was given an obscure clerkship +in the department; the other, John Badollet, was made register in the +land office at Vincennes, against whom Gallatin said in the application +for appointment which he reluctantly made, there was but one objection, +"that of being his personal and college friend." + +The dispositions for the sale of lands in the western territory, the +extinguishment of titles, and the surveys fell under Mr. Gallatin's +general supervision, and were the objects of his particular care. So +also was the establishment of the authority of the United States in the +Louisiana territory. In the course of these arrangements he was brought +into contact with Mr. Pierre Chôteau of St. Louis, who controlled the +Indian trade of a vast territory. The foundation of an intimate +acquaintance was then laid. The influence of this remarkable man over +the Western Indians and the extent of his trading operations with them +was great, and has never since been equaled. About this period Mr. John +Jacob Astor informed the government that he had an opportunity, of which +he intended to take advantage, to purchase one half of the interest of +the Canadian Fur Company, which, notwithstanding the treaty of 1794, +engrossed the trade by way of Michilimackinac with our own Indians. +Before that period this lucrative traffic had been exclusively in +British hands, and the hostility of the Indian tribes rendered any +interference in it by Americans dangerous to life and property, and +their participation since had been merely nominal. Jefferson's cabinet +received the proposal with satisfaction, but, in their strict +interpretation of the Constitution, could find no way of giving any aid +to the scheme beyond the _official_ promise of protection, which it fell +to Mr. Gallatin to draft. Mr. Jefferson wrote to Mr. Astor a letter to +the same effect. Mr. Astor, however, was not deterred from his +enterprise, but, under the charter of the American Fur Company granted +by the State of New York, extended his project to the Indians west of +the Rocky Mountains, and made of it an immense business, employing +several vessels at the mouth of the Columbia River and a large land +party beyond the Rocky Mountains. He finally founded the establishment +of Astoria. This settlement fell into the hands of the British during +the war of 1812. Mr. Astor sought to persuade the American government to +permit him to renew the establishment at its close, only asking a flag +and a lieutenant's command, but Mr. Madison would not commit himself to +the plan. + +Among Mr. Jefferson's pet schemes was that of a substitution of gunboats +for fortifications, and for supporting the authority of the laws within +harbors. The mind of Mr. Jefferson had no doubt been favorably disposed +to this mode of offensive defense by the experience of Lafayette at +Annapolis, in his southern expedition in the spring of 1781, when his +entire flotilla, ammunition of war, and even the city of Annapolis, +were saved from destruction by two improvised gunboats, which, armed +with mortars and hot shot, drove the British blockading vessels out of +the harbor. Jefferson first suggested the scheme in his annual message +of 1804, and Gallatin did not interfere; but when, in 1807, the +President insisted, in a special message, on the building of two hundred +vessels of this class, Mr. Gallatin objected, because of the expense in +construction and maintenance, and secondly, of their infallible decay. +Mr. Jefferson persisted, and Mr. Gallatin's judgment was vindicated by +the result. Two years later, of one hundred and seventy-six gunboats +constructed, only twenty-four were in actual service. In his letter of +criticism, Mr. Gallatin gave as his opinion, that "it would be an +economical measure for every naval nation to burn their navy at the end +of a war and to build a new one when again at war, if it was not that +time was necessary to build ships of war." The principle was the same as +to gunboats, and the objection of time necessary for building did not +exist. + +This year he also laid before the President a memorandum of preparatory +measures for defense against Great Britain, from whom an attack was +expected by land and sea, and a second plan for offensive operations on +the northern frontier, which is complete in its geographical and +topographical information, and its estimate of resources in men, +material, and money. At the same time he urged upon Mr. Jefferson to +moderate the tone of his message, so as not to widen the breach by +hurting the pride of Great Britain. + +In connection with the land system, Mr. Jefferson favored, and Mr. +Gallatin devised, an extensive plan of internal improvements. The route +of the Cumberland road from the Potomac to the Ohio was reported to +Congress in 1807; a coast survey was ordered in the same year. The first +superintendent was Hassler, a Swiss, whom Mr. Gallatin brought to the +notice of Mr. Jefferson. In 1808 a general plan of improvement was +submitted to the Senate. This included canals parallel with the +seacoast, making a continuous line of inland navigation from the Hudson +to Cape Fear; a great turnpike from Maine to Georgia; the improvement of +the Susquehanna, Potomac, James, and Santee rivers to serve the slope +from the Alleghanies to the Atlantic; of the Alleghany, Monongahela, and +Kanawha, to serve the country westward to the Mississippi, the head +waters of these rivers to be connected by four roads across the +Appalachian range; a canal at the falls of the Ohio; a connection of the +Hudson with Lake Champlain, and of the same river with Lake Ontario at +Oswego; and a canal around Niagara Falls. The entire expense he +estimated at $20,000,000, to be met by an appropriation of $2,000,000 a +year for ten years; the stock created for turnpikes and canals to be a +permanent fund for repairs and improvements. + +A national university for education in the higher sciences was also +recommended by Jefferson in his message of 1806, but Mr. Gallatin had +little faith in the popularity of this scheme. After the convulsion of +1794 in Geneva, Gallatin's old college mate, D'Yvernois, conceived the +plan of transporting the entire University of Geneva to the United +States, and wrote on the subject to Jefferson and Adams; but his idea +was based on the supposition that fifteen thousand dollars' income could +be had from the United States in support of the institution, which was, +of course, at the time impracticable. Jefferson believed that these +plans of national improvement could be carried into effect only by an +amendment to the Constitution; but Mr. Gallatin, as in the bank +question, was disturbed by no such scruples, and he recommended Mr. +Jefferson to strike from his message the words "general welfare," as +questionable in their nature, and because the proposition seemed to +acknowledge that the words are susceptible of a very dangerous meaning. + +To a permanent embargo act Mr. Gallatin was from the beginning opposed. +He recognized the mischief of government prohibitions, and thought that +statesmen might well hesitate before they took the hazard of regulating +the concerns of individuals. The sequel proved the correctness of this +judgment. But Mr. Jefferson could not bring his mind to any more +decisive measure, indeed, it may justly be said, to any measure +whatever. Taking advantage of Mr. Madison's election to the presidency, +he simply withdrew from the triumvirate, and, passing over the subject +in silence in his last message, he ignominiously left to Mr. Madison and +Mr. Gallatin the entire responsibility which the threatening state of +the foreign relations of the country imposed on the Republican party. + +The question was now between the enforcement of the Embargo Act and war. +To take off the embargo seemed a declaration of weakness. To add to it a +non-importation clause was the only alternative. In November, 1808, Mr. +Gallatin prepared for George W. Campbell, chairman of the Committee on +Foreign Relations of the House, the declaration known as Campbell's +report, which recited, in clear, compact form, the injuries done to the +United States by Great Britain, and closed with resolutions to the +effect that the United States could not submit to the edicts of Great +Britain and France, and with a recommendation of non-intercourse and for +placing of the country in a state of defense. After long debate the +resolutions were adopted by large majorities, and the policy of +resistance was finally determined upon--resistance, not war. Thus the +United States resorted, as the colonies had resorted in 1774, to a +policy of non-importation. But the condition of the States was not that +of the colonies. Then all the colonies were commercial, and the entire +population was on the seaboard; the prohibition fell with equal weight +upon all. Now there were large interior communities whom restrictions +upon commerce would rather benefit than injure. Yet neither the Sons of +Liberty nor the non-importation associations had been able to enforce +their voluntary agreements either before or after the Congress of 1774. +If this were to be the mode of resistance, stringent measures must be +adopted to make it effective. Mr. Gallatin accordingly called upon +Congress for the necessary powers. They at once responded with the +Enforcement Act, which Mr. Gallatin proceeded to apply with +characteristic administrative vigor, and summoned Jefferson to authorize +the collectors of revenue to call the military force of the United +States to support them in the exercise of their restrictive authority. +There was to be no evasion under the systems which Hamilton devised and +Gallatin knew so well how to administer. + +His annual report made to Congress on December 10 had clearly set forth +the situation, and, without recommending war, had pointed out how it +might be carried on. Macon wrote of him on December 4 to their mutual +friend, Joseph H. Nicholson, "Gallatin is decidedly for war." After his +report was sent in the situation became still more perplexing. Rumors +came of an intention to call a convention of the five New England +States, with New York, if possible, to take ground against the embargo. +As these indications of dissatisfaction became manifest, and the +contingency of the employment of force at home presented itself, +Gallatin made a careful balance of the advantages and inconveniences of +embargo, non-intercourse, and letters of marque. This paper, dated +February, 1809, and entitled, "Notes on the Political Situation," no +doubt served as a brief for consultation with Madison upon his inaugural +message, it being then understood that Gallatin was to be secretary of +state. As he states one of the advantages of letters of marque to be "a +greater chance of unity at home," this measure he probably preferred. +The Senate had already, on January 4, passed a bill ordering out the +entire naval force of the country, and on the 10th the House adopted the +same bill by a vote of 64 to 59. Mr. Gallatin opposed this action +strenuously. On February 2 the House voted by a large majority to remove +the embargo on March 4. Non-intercourse with Great Britain and France +and trade everywhere else were now the conditions. This significant +expression of the feeling of Congress no doubt determined Mr. Gallatin +to suggest letters of marque. Whether he pressed them upon Mr. Madison +or not is uncertain. Meanwhile Mr. Gallatin suffered the odium of +opposition to the will of Congress, and Mr. Madison's power was broken +before he took his seat. A few Republican senators inaugurated an +opposition to their chief after the fashion of modern days, and Mr. +Madison was given to understand that Mr. Gallatin would not be confirmed +if nominated as secretary of state. Mr. Madison yielded to this +dictation, and from that day forward was, as he deserved to be, +perplexed and harassed by a petty oligarchy. Mr. John Quincy Adams, in a +note on this affair, says that, "had Mr. Gallatin been appointed +secretary of state, it is highly probable war with Great Britain would +not have taken place." But it is improbable that any step in foreign +intercourse was taken without Mr. Gallatin's knowledge and approbation. +Such are the traditions of the triumvirate. + +The first term of Madison's administration was not eventful. There was +discord in the cabinet. In the Senate the "invisibles," as the faction +which supported Robert Smith, the secretary of state, was aptly termed, +rejected Madison's nominations and opposed Gallatin's financial policy +as their interests or whims prompted. Randolph said of Madison at this +time, that he was "President _de jure_ only." Besides this domestic +strife, the cabinet was engaged in futile efforts to resist the +gradually tightening cordon of British aggression. Erskine's amateur +negotiations, quickly disavowed by the British government, and the short +and impertinent mission of Jackson, who succeeded him and was dismissed +from the United States, well served Canning's policy of delay. Madison, +whose prejudices were as strongly with Englishmen and English ways as +those of Jefferson were with the men and manners of France, averse to +war and withheld also by Gallatin's persistent objections, negotiated +and procrastinated until there was little left to argue about. In +December, 1809, Macon made an effort to pass a stringent navigation act +to meet the British Orders in Council and the French decrees. The bill +passed the House but was emasculated in the Senate, the Republican cabal +voting with the Federalists to strike out the effective clauses. The act +interdicting commercial intercourse with Great Britain and France +expired in May, 1810, and was not revived. A new act was passed, which +was a virtual surrender of every point in dispute. Resistance was +abandoned, and our ships and seamen were left to the mercy of both +belligerents. + +Mr. Gallatin's entire energies were bent upon strengthening the Treasury +and opposing reckless expenditures. His most grievous disappointment, +however, was in the refusal of Congress to renew the charter of the Bank +of the United States. He used every possible effort to save this +institution, which, in the condition of the country, was indispensable +to a sound currency and the maintenance of specie payment. But with the +dead weight of Mr. Madison's silence, if not indifference, the struggle +was unequal and the bank fell. The course of Mr. Madison can hardly be +excused. Political history records few examples of a more cruel +desertion of a cabinet minister by his chief. Mr. Gallatin felt it +deeply and tendered his resignation. The administration was going to +pieces by sheer incapacity. The leaders took alarm and the cabinet was +reconstructed, Monroe being called to the Department of State. But the +enemies of Mr. Gallatin still clung to his skirts, determined to drag +him to the dust. Duane attacked him in the most dangerous manner. +Probably no man in America has ever been abused, vilified, maligned with +such deliberate persistency as was Gallatin in the "Aurora" from the +beginning of 1811 until the cabinet crisis, when Mr. Madison was +compelled to choose between Smith and himself. Day after day leaders +were devoted to personal assault upon him and to indirect insinuations +of his superiority to Madison, by which the artful editor sought to +arouse the jealousy of the President. The "Atlas at the side of the +President," the "Great Treasury Law Giver," the "First Lord of the +Treasury," the "Dagon of the Philistines," were favorite epithets. He +was charged by turns with betraying cabinet secrets to Randolph, with +amateur negotiation with Erskine, and with subserviency to British gold +in the support of the Bank of the United States. Here is an instance of +Duane's style: "We can say with perfect conviction that, if Mr. Madison +suffer this man to lord it over him, Mr. Gallatin will drag him down, +for no honest man in the country can support an administration of which +he is a member with consistency or a pure conscience." It was charged +upon Gallatin that his friends considered him as the real, while Madison +was the nominal, president. More than this, he was accused of +embezzlement and enormous speculations in the public lands. Gallatin's +party pride must have been strong indeed to have induced him to stay an +hour in an administration which granted its favors to the author of such +assaults upon one of its chosen leaders. + +Jefferson wrote to Mr. Wirt in May following, that, because of the bank, +endeavors were made to drive from the administration (of Mr. Madison) +the ablest man, except the President, who ever was in it, and to beat +down the President himself because he was unwilling to part with such a +counselor. + +Monroe was appointed secretary of state in Smith's place in April, 1811. +Other changes followed in the cabinet, but brought little relief to Mr. +Gallatin. Financial affairs now occupied his entire attention; on the +one hand was a diminishing treasury; on the other an expenditure +reckless in itself and beyond the demands of the administration. Without +the sympathy of either the Senate or House, Mr. Gallatin's position +became daily more irksome, until at last he abandoned all attempt to +control the drift of party policy, took the war party at their word, and +sent in to the House a war budget. + +Unfortunately for the country, the Republican party knew neither how to +prepare for war, nor how to keep the peace. Mr. Madison had none of the +qualifications of a war President; neither executive ability, decision +of character, nor yet that more important faculty, knowledge of men. In +his attachment to Mr. Madison and in loyalty to what remained of the +once proud triumvirate of talent and power, Mr. Gallatin supplied the +deficiencies of his fellows as best he could, until an offer of +mediation between the United States and Great Britain on the part of the +emperor of Russia presented an opportunity for honorable withdrawal and +service in another and perhaps more congenial field. In March, 1813, the +Russian minister, in a note to the secretary of state, tendered this +offer. Mr. Gallatin had completed his financial arrangements for the +year, and requested Mr. Madison to send him abroad on this mission. +Unwilling to take the risk of new appointments, the President acceded to +this proposal, and gave him leave of absence from his post in the +Treasury. Mr. Gallatin did not anticipate a long absence, and felt, as +he said to his old friend Badollet, that he could nowhere be more +usefully employed than in this negotiation. Certainly he could have no +regret in leaving a cabinet which had so little regard to his own +feelings and so little political decency as to confer the appointment of +adjutant-general in the United States army on his malignant assailant, +William Duane of the "Aurora." + +Mr. Gallatin's mission, followed by the resignation of his post in the +cabinet, finally dissolved the political triumvirate, but not the +personal friendship of the men. Numerous attempts were made to alienate +both Jefferson and Madison from Gallatin while he held the portfolio of +the Treasury, but one and all they signally and ignominiously failed. +For Mr. Jefferson Mr. Gallatin had a regard near akin to reverence. A +portrait of the venerable sage was always on his study table. When about +setting out for France in 1816 he tendered his services to his old chief +and wrote to him that 'in every country and in all times he should never +cease to feel gratitude, respect, and attachment for him.' Jefferson +fully reciprocated this regard. From Monticello he wrote to Gallatin in +1823: "A visit from you to this place would indeed be a day of jubilee, +but your age and distance forbid the hope. Be this as it will, I shall +love you forever, and rejoice in your rejoicings and sympathize in your +ails. God bless and have you ever in His holy keeping." Nor does Mr. +Gallatin seem to have allowed any feeling of disappointment or +dissatisfaction at Mr. Madison's weakness to disturb their kindly +relations. Their letters close with the reciprocal assurance of +affection as well as of esteem. + + + + +CHAPTER VIII + +IN DIPLOMACY + +_The Treaty of Ghent_ + + +On May 9, 1813, the ship Neptune sailed from New Castle on the Delaware, +having on board Albert Gallatin and James A. Bayard, ministers of the +United States, with their four secretaries, of whom were Mr. Gallatin's +son James, and George M. Dallas, son of his old Pennsylvania friend. +They were accompanied to sea by a revenue cutter. Off Cape Henlopen they +were overhauled by the British frigate on the station, and their +passport was countersigned by the English captain. On June 20 they +reached the mouth of the river Gotha. Here the vessel lay at quarantine +for forty-eight hours, during which the gentlemen paid a flying visit to +Gottenburg. At dusk, on the 24th, the Neptune anchored in Copenhagen +inner roads, the scene of Nelson's attack in 1801. Mr. Gallatin's brief +memoranda of his voyage contain some crisp expressions. He found +"despotism and no oppression. Poverty and no discontent. Civility and no +servile obsequiousness amongst the people. Decency and sobriety." + +St. Petersburg was reached on July 21. Here Gallatin and Bayard found +John Quincy Adams, then minister to Russia. He was one of the three +commissioners appointed to treat for peace under the mediation which the +Emperor Alexander had offered to the United States. Bayard and Adams +were Federalists. To the moderate counsels of the former Jefferson owed +his peaceable election. Gallatin and Adams had the advantage of thorough +acquaintance with European politics. To Gallatin the study of history +was a passion. He was familiar with the facts and traditions of +diplomacy. He knew the purpose, the tenor, and the result of every +treaty made for centuries between the great powers; even their dates +were at ready command in his wonderful memory. But, excepting the few +Frenchmen of distinction who in the exile which political revulsions +imposed upon them had crossed the sea, he had no acquaintance with +Europeans of high position, and none whatever with the diplomatic +personnel of European courts. In this Adams was more fortunate. Educated +abroad, while his father was minister to the court of St. James, he was +from youth familiar with courts and their ways. To be the son of a +president of the United States was no small matter at that day. The +conjunction of these two men was rare. One of European birth and trained +to American politics, the other of American birth and brought up in the +atmosphere of European diplomacy. In their natural characteristics they +were the opposite of one another. Adams was impetuous, overbearing, +impatient of contradiction or opposition. Gallatin was calm, +self-controlled, persistent; not jealous of his opinions, but ready to +yield or abandon his own methods, if those of others promised better +success; never blinded by passion or prejudice, but holding the end +always in view. That end was peace; "peace at all times desirable," as +Mr. Gallatin said a few days before his departure on his mission, but +much more so, 'because of the incapacity shown in the conduct of the +war, its inefficiency when compared with its expense, and the open +hostility to it of a large number of the American people.' In the face +of the disasters which had befallen the country Mr. Gallatin must have +felt some qualms of conscience for his persistent opposition to the +military and naval establishments. Their reorganization had place in his +desire for peace. He said, May 5, 1813: "Taught by experience, we will +apply a part of our resources to such naval preparations and +organization of the public force as will, within less than five years, +place us in a commanding situation." With the particulars of the dispute +between the two countries he was perfectly familiar. His report prepared +in 1808 for Mr. Campbell, chairman of the Committee on Foreign +Relations, covered the whole ground of the American argument. + +At the outset there seemed good ground for hope of an early agreement. +European politics were at a critical point, and England naturally +wished to husband her resources for a sudden emergency. The mediation of +Russia Mr. Gallatin considered a salve to the pride of England. This +reasoning seemed sound enough, but it had not taken account of one +important element: the jealousy of England of any outside interference +between herself and her ancient dependencies. Mr. Gallatin did not hold +English diplomacy in very high regard. Late in life he said that the +history of the relations of England and France was a story of the +triumphs of English arms and of French diplomacy; that England was +always victorious, but France had as often negotiated her out of the +fruits of success. True as this remark was in general, it cannot be said +of the policy of England in American affairs. She pushed to the utmost +her exclusion of France from the American continent when the States were +colonies, and now that they were free and independent she would listen +to no foreign intervention. Neither in peace nor war should any third +government stand between the two nations. This was and ever has been the +true policy of Great Britain, and that it was not lost sight of in the +heat of war is to the credit of her diplomacy. The offer of Russia to +mediate was not welcome, and was set aside by Lord Castlereagh in a note +of discouragement. There was no ground for the commissioners to stand +upon; moreover the emperor and Count Nesselrode were absent from St. +Petersburg, Count Romanzoff being left in charge of the foreign +relations. The offer of mediation had originated with him. His policy +was to curb the maritime power of England, and to secure in the +negotiation a modification at least of the offensive practice of Great +Britain in her assumed police of the sea. + +The war was in fact a legacy of the necessarily incomplete diplomacy of +Washington's administration and the Jay treaty. The determining cause +was the enforcement of the right of search and the impressment of seamen +from American vessels; a practice at variance with the rights and the +law of nations. Monroe, Madison's secretary of state, urged the clear +and distinct forbearance of this British practice as the one object to +be obtained. An article in the treaty giving security in that respect +was by Gallatin, as well as by Monroe, considered a _sine qua non_ +condition; while Mr. Bayard viewed an informal arrangement as equally +efficient and more practicable than a solemn article. But there was no +doubt of Bayard's determination to reach the result prescribed in their +instructions. + +Mr. Gallatin's first act after setting foot on European shores was to +write to Baring Brothers & Co. at London. This he did from Gottenburg, +requesting a passport for the Neptune, which the commission proposed to +retain at St. Petersburg until their return. At the same time he +intimated that he wished the British government to be informed of the +object of the mission. For the expenses of the commission the +ambassadors had authority to draw on the Barings. The reply of Mr. +Alexander Baring must at once have opened Mr. Gallatin's eyes to the +futility of the errand of the commissioners. His words clearly state the +British grounds of objection: "The mediation of Russia was offered, not +sought,--it was fairly and frankly accepted,--I do not see how America +could with any consistency refuse it; but to the eyes of a European +politician it was clear that such an interference could produce no +practical benefit. The only question now seriously at issue between us +is one purely of a domestic nature in each country respectively; no +foreign government can fairly judge of it." Pointing out the difficulty +of establishing any distinction between the great masses of the +seafaring population of Great Britain and America, he finds that no +other country can judge of the various positions of great delicacy and +importance which spring from such a state of things; and says: "This is +not the way for Great Britain and America really to settle their +disputes; intelligent persons of the two countries might devise mutual +securities and concessions which perhaps neither country would offer in +the presence of a third party. It is a sort of family quarrel where +foreign interference can only do harm and irritate at any time, but more +especially in the present state of Europe, when attempts would be made +to make a tool of America." These, he said he had good reason to know, +were the sentiments of the British cabinet on the question of place of +negotiation and foreign mediation. He also informed Mr. Gallatin that +the mediation of Russia had been refused, and that the British +government would express its desire to treat separately and directly +either at London or Gottenburg. He warned Mr. Gallatin that an opinion +prevailed in the British public that the United States were engaged to +France by a secret political connection, which belief, though perhaps +not shared by the government, would lead it to consider the persevering +of the American commission upon bringing the insulated question before +the powers of the Continent as a touchstone of their sincerity. He hoped +that the American commissioners would come at once in contact with the +British ministers, and pointed out the hesitation that every minister +would feel at giving instructions on a matter so delicate as that +"involving the rights and duties of sovereign and subject." He then +declared that there was in England a strong desire for peace and for +ending a contest in which the "two countries could only tease and weaken +each other without any practical result," and at a time when England +desired to carry her resources into the "more important field of +European contest." He then gave Castlereagh's assurance, that the +cartel-ship, the Neptune, should be respected, and expressed his own +personal hope that he should ere long be gratified by seeing it bring, +with the commissioners, the hope of peace to the shores of England. + +Meanwhile Mr. Gallatin was engaged in explaining the American case to +Romanzoff by conversation and by a written statement of the facts in +the form of an unofficial note to the emperor. On August 10 word was +received from the Emperor Alexander authorizing the renewal of the offer +of mediation; and shortly after a letter from General Moreau, written to +Mr. Gallatin from the imperial headquarters at Hrushova, assured him of +his sympathy and assistance. His relations with Gallatin were of long +standing and of an intimate nature. Moreau, after a long residence in +America, to which he was warmly attached, had lately crossed the ocean +and tendered his able sword to the coalition against Bonaparte. He +informed Gallatin that one of the British ministers had said to him in +Germany that England would not treat of her maritime rights under any +mediation. He feared that American vanity would hardly consent to treat +directly with Great Britain, and foresaw that the political adversaries +of Madison and Gallatin would blame the precipitation of the United +States government in sending over the envoys before the adhesion of +England to the proposed arbitration was secured. He assured Gallatin of +the interest of the Emperor Alexander in the Americans. + +On August 24 Count Romanzoff read to the envoys his dispatch to Count +Lieven, the Russian minister at London, renewing the offer of mediation. +The commissioners considering their authority as limited to treating +under the mediation of Russia, Mr. Gallatin wrote to Monroe, inclosing +a copy of Baring's letter, which he looked upon as an informal +communication of the views of the British government, and asked for +contingent powers and instructions. These they could not expect to +receive before February. Gallatin replied to Mr. Baring that no +information of the refusal of Great Britain to the mediation had been +received, but, even if it had, the commission was not authorized to +negotiate in any other manner. They were, however, competent to treat of +commerce without mediation. He declined to discuss the objection of +Great Britain to the mediation of Russia, confining himself to an +expression of ignorance in America of any such feeling on the part of +the British ministry, and of the confidence placed in the personal +character of the emperor, which was considered a sufficient pledge of +impartiality; while the selection of a sovereign at war with France was +clear evidence that America neither had nor wished to have any political +connection with that power. That he himself believed an arrangement to +be practicable, he said to Mr. Baring, was evident from the fact that he +had given up his political existence, and separated himself from his +family. His opinion was, that while neither nation would be induced to +abandon its rights or pretensions in the matter of impressment, an +arrangement might be made by way of experiment which would reserve to +both their respective abstract rights, real or assumed. + +To Moreau he wrote stating his hope that, notwithstanding the first +objections of Great Britain, the mediation of the emperor would be +accepted, and he asked the general for his personal interposition to +this end. France and England he held to be equally at fault in the great +European contest; the one usurping and oppressing the land, the other +dominating and tyrannizing the sea. They alone, said he, have gained, if +not happiness, at least power. Russia, he was firmly persuaded, was the +only power at heart friendly to America. History has shown the sagacity +of this judgment. This letter was never answered. Moreau was at death's +door. + +Early in October Mr. Dallas was sent to London to open relations with +the British ministry. His presence there would save two months at least +in each correspondence which involved communication between Washington, +London, and St. Petersburg. Count Romanzoff gave the necessary letter of +introduction to Count Lieven. Gallatin's instructions to the young +secretary were explicit as to the caution he should exercise in a +country where he could consider himself as only on sufferance. Hardly +were these preliminaries concluded, and Dallas had not started on his +journey, when Mr. Gallatin received word from America that the Senate +had refused to confirm him in his position as commissioner. Mr. Gallatin +had not resigned his position of secretary of the treasury. The Senate +refused to sanction the cumulative appointment. + +Stripped of his official character, he now felt himself at liberty to +follow his own inclination. His first impulse was to go to London, where +he was sure that Baring's friendship would open to him a means of +usefulness in the matter on which he was engaged. The death of Moreau +cut off the medium of approach to the emperor. This event was of no +consequence, however, in the negotiation, as the emperor had been +positively informed in July that England would not countenance even the +appearance of foreign intervention in her dispute with America. But as +yet no official information of his rejection had been received by Mr. +Gallatin, nor did any reach him until March. Without it he could not +well leave St. Petersburg. Meanwhile a diplomatic imbroglio, caused by +the failure of the emperor to inform Romanzoff of Castlereagh's second +refusal to accept the offer of mediation, embarrassed the commission all +winter. Nor yet were they aware that the British minister, driven to the +wall by the second offer of the emperor, had made proposals to Monroe to +treat directly with the United States government. The British note with +this offer was written on November 4. Mr. Gallatin was apprised of it by +Mr. Dallas in January, 1814. Mr. Baring urged him, if he should return +to America during the winter, to take his way through England, as good +effects might result from even a passing visit. Gallatin was then, as he +expressed it, "chained for the winter to St. Petersburg," nor had he +any way of reaching home, except by a cartel from a British port. + +No word coming from the emperor, the envoys concluded to withdraw from +St. Petersburg. Before leaving, Mr. Gallatin addressed a letter of +thanks to Count Romanzoff, and requested him to communicate any +information he might receive from the emperor. It was supposed that the +offer of England to treat directly with America might be inclosed in +Castlereagh's letter of refusal to accept Russian mediation. On January +25, 1814, Mr. Gallatin and Mr. Bayard left St. Petersburg and traveled +by land to Amsterdam, which they reached after a tedious journey on +March 4. The captain of the Neptune was ordered to bring his vessel to a +port of Holland. At Amsterdam, where the envoys remained four weeks, +they learned that Mr. Madison had at once accepted Castlereagh's offer +and appointed a new commission, consisting of Messrs. Adams, Bayard, +Henry Clay, and Jonathan Russell. Mr. Gallatin was not included, as he +was supposed to be on his way home to resume his post in the Treasury +Department, the duties of which had been performed in his absence by Mr. +Jones, the secretary of the navy. When correct information did reach Mr. +Madison, on February 8, he immediately added Mr. Gallatin to the +commission, and appointed Mr. G. W. Campbell to be secretary of the +treasury. Thus it happened that Mr. Gallatin, whom Mr. Madison intended +for the head of the commission, was the last named of those who +conducted the negotiations. + +[Illustration: J. A. Bayard] + +On April 1, 1814, Mr. Gallatin concluded to pass through England on his +return, and leaving orders for the Neptune on its arrival to proceed to +Falmouth, he took the packet to Harwich, whither he requested Mr. Baring +to send him the requisite passports to enable him to reach London with +his suite without delay. + +In company with Mr. Bayard, Mr. Gallatin reached the English capital on +April 9, 1814. There they heard some days later of the arrival of +Messrs. Clay and Russell at Gottenburg. The situation of Great Britain +had greatly changed. Intoxicated with the success of their arms and the +abdication of Napoleon, the English people were quite ready to undertake +the punishment of the United States, while the release of a large body +of trained troops in France, Italy, Holland, and Portugal enabled the +ministry immediately to throw a large force into Canada for the summer +campaign. In the British cabinet a belief was said to be entertained +that a continuance of the war would bring about a separation of the +American Union, and perhaps a return of New England to the mother +country. In this emergency Gallatin availed himself of the opportunity +which presented itself of addressing Lafayette in sending to that +officer the patents for the Louisiana land granted to him by the +American government, and urged the use of his influence to promote an +accommodation between England and the United States. + +To Clay he wrote on April 22, proposing that the place of negotiation be +changed from "that corner" Gottenburg, either to London, or some neutral +place more accessible to the friendly interference of those among the +European powers upon which they must greatly rely. The Emperor Alexander +was expected in London, and Castlereagh, who had recently returned from +France where he had been in direct intercourse with him, was understood +to be of all the cabinet the best disposed to the United States. From +Clay Gallatin heard in reply that the British _chargé d'affaires_ at +Stockholm had already asked the sanction of the Swedish government to +the negotiation at Gottenburg. While Clay was unwilling to go to London +he gave his consent to carry on the negotiations in Holland, if the +arrangement could be made in such a manner as to avoid any ill feeling +at the Swedish court by the change from Gottenburg. In May Gallatin and +Bayard asked of Monroe, who was then secretary of state, authority for +the commissioners to remove the negotiation to any place which their +judgment should prefer. In May, also, the British government was +officially notified by the American commissioners of their appointment. +Lord Bathurst answered with an assurance that commissioners would be +forthwith appointed for Great Britain, and with a proposal of Ghent as +the place for negotiation. This was at once acceded to. + +Meanwhile Mr. Crawford, the United States minister at Paris, was +endeavoring, at the instance of Mr. Gallatin, to secure the friendly +interposition of the Emperor Alexander, not as a mediator, but as a +common friend and in the interest of peace to the civilized world. +Crawford was unable to obtain an audience of the emperor, or even an +interview with Count Nesselrode, but Lafayette took up the cause with +his hearty zeal for everything that concerned the United States, and, in +a long interview with the emperor at the house of Madame de Staël, +submitted to him the view taken by the United States of the controversy, +and obtained from him his promise to exert his personal influence with +the British government on his arrival at London. Baron von Humboldt, the +Prussian minister at Paris, who had been influenced by British +misrepresentation, was also won over by Lafayette, and now tendered his +services to Mr. Gallatin in any way in which he might be made useful. +Lafayette's letter was brought by Humboldt in person. Gallatin and +Humboldt had met in 1804, when the great traveler passed through +Washington on his return from Peru and Mexico. + +The Treaty of Paris having been signed, Lord Castlereagh reached London +early in June, and the emperor arrived a few days later. Mr. Gallatin +had an audience of the emperor on June 17, and on the 19th submitted an +official statement of the American case and an appeal for the +interposition of his imperial majesty, "the liberator and pacifier of +Europe." From the interview Mr. Gallatin learned that the emperor had +made three attempts in the interest of peace, but that he had no hope +that his representations had been of any service. England would not +admit a third party to interfere, and he thought that, with respect to +the conditions of peace, the difficulty would be with England and not +with America. + +On June 13 Gallatin warned Monroe of the preparations England was making +which would enable her to land fifteen to twenty thousand men on the +Atlantic coast; that the capture of Washington and New York would most +gratify the British people, and that no help need be expected from the +countries of Europe, all which were profoundly desirous of peace. + +The ministry informing Mr. Gallatin that the British commissioners would +start for Ghent on July 1, he improved the interval by a visit to Paris. +He left London, where he had passed nearly three months in the uncertain +preliminaries of negotiation, and after a few days in the French capital +reached Ghent on July 6. The British commissioners only appeared on +August 6. They were Lord Gambier, Henry Goulburn, and William Adams, all +second-rate men, but for this reason suited to the part they had to +play. After the overturn of Napoleon the British cabinet had no desire +for peace, or at least not until they had secured by war some material +advantages in the United States, which a treaty would confirm. The +business of their representatives at Ghent was to make exorbitant +demands of the Americans and delay negotiations pending the military +operations in progress. + +In June Gallatin was satisfied of the general hostile spirit of Great +Britain and of its wish to inflict serious injury on the United States. +He notified Monroe of his opinion and warned him that the most favorable +terms to be expected were the _status ante bellum_, and not certainly +that, unless the American people were united and the country able to +stand the shock of the campaign. Mr. Madison's administration had +already humbled itself to an abandonment, or at least to an adjournment, +of the principle to establish which they had resorted to arms. But in +the first stages of the negotiation it was clear that the British +cabinet had more serious and dangerous objects in view, and looked +beyond aggression and temporary injury to permanent objects. At the +first meeting on August 8, the British commissioners demanded, as a +preliminary to any negotiation, that the United States should set apart +to the Indian tribes the entire territory of the Northwest to be held by +them forever in sovereignty under the guaranty of Great Britain. The +absurdity of such a demand is sufficient evidence that it was never +seriously entertained. There could have been no idea that the military +power of Great Britain was able to enforce, or that the United States +would abjectly submit to, such a mutilation of its territory and such a +limitation of its expansion. Behind this cover Mr. Gallatin +instinctively detected the real design of the cabinet to be the conquest +of New Orleans and the mouths of the Mississippi. If to the territory +thus acquired that of Florida should be added by cession from Spain, +which could hardly refuse any compensation asked of her by Great Britain +in return for the liberation of the Peninsula, a second British dominion +would be set up on the American continent. These views Gallatin +communicated to Monroe in a private dispatch of August 20, 1814, by the +hands of Mr. Dallas. To the _sine qua non_ of the British commissioners +no answer was made by the Americans. The negotiation was abruptly +suspended, and only by informal conversation was Mr. Goulburn given to +understand that reference had been had to America for instructions. Mr. +Gallatin was of opinion that the negotiations were at an end, and in his +despair of peace took consolation in the belief that the insolence of +the demand would unite America from Maine to Georgia in defense of her +rights, of her territory, and indeed of her independence. The American +commissioners made no secret of their belief that their mission was +closed. Two of the secretaries started from Ghent on a continental tour, +and notice was given to the landlord of the house where the +commissioners resided of their intention to quit it on October 1. On +August 2, while matters were still at this deadlock, Lord Castlereagh +passed through Ghent on his way to the Congress at Vienna. Goulburn was +ordered to change his tone and Lord Liverpool was advised to moderate +his demands; to use Castlereagh's words, to "a letting down of the +question." Lord Liverpool replied on September 2, that he had already +given Goulburn to understand that the commission had taken a very +erroneous view of British policy. In this communication he betrays the +hope, which the cabinet had entertained, of the outcome of American +dissensions, by his expression of the opinion that if the negotiation +had broken off on the notes already presented by the British commission, +or the answer that the Americans were disposed to make, the war would +have become popular in America. + +Lord Bathurst reopened the negotiations, but his modification was of +tone rather than of matter. The surrender of the control of the Lakes to +Great Britain, and of the Northwest Territory to the Indians, was still +adhered to. The reply of the American commissioners was drawn chiefly by +Mr. Gallatin. It absolutely rejected the proposals respecting the +boundary and the military flag on the Lakes, and refused even to refer +them to the American government, but offered to pursue the negotiation +on the other points. To Monroe Mr. Gallatin explained his reason for +assenting to discuss the Indian article, and therein his colleagues +concurred with him, to be: that they had little hope of peace, but +thought it desirable, if there were to be a breach, that it should be on +other grounds than that of Indian pacification. The reply of the +commission on this point, also drafted by Mr. Gallatin, was sent in on +September 26. It merely guaranteed the Indians in all their old rights, +privileges, and possessions. + +The destruction of the public buildings at Washington by the British +troops, known in London on October 1, caused a great sensation in +England. As Gallatin said in a letter to Madame de Staël, it was "an act +of vandalism to which no parallel could be found in the twenty years of +European war from the frontiers of Russia to Paris, and from those of +Denmark to Naples." "Was it (he asked), because, with the exception of a +few cathedrals, England had no public buildings comparable to them, or +was it to console the London mob for their disappointment that Paris was +neither pillaged nor burned?" It can hardly be doubted that the flames +which consumed the American capital lighted the way to peace. The +atrocity of war was again brought vividly to the view of nations whose +sole yearning was for peace. Far from discouraging the American +commissioners, it fortified their resolution. They knew that it would +unite the people of the States as one man. It in no way disturbed +Gallatin's confidence either in the present or future of his adopted +country. To those who asked his opinion of the securities of the United +States, he said: "If I have not wholly misunderstood America, its +resources and its political morality, I am not wrong in the belief that +its public funds are more secure than those of all European powers." + +In spite of the protests of Mr. Goulburn, who felt the ground on which +he stood daily less stable, and in his letters to his chief was +unsparing in his denunciations, Lord Liverpool accepted the proposed +settlement of the Indian question. Nothing remained but to incorporate +in a treaty form the points agreed upon. Lord Bathurst, who seems +throughout the negotiation to have forgotten the old adage, that "fine +words butter no parsnips," and with true British blindness never to have +appreciated how thoroughly he was overmatched by Mr. Gallatin, submitted +a preliminary notification that the British terms would be based on the +principle of _uti possidetis_, which involved a rectification of the +boundaries on the Canadian frontier. To this the Americans returned a +peremptory refusal. They would not go one step farther except on the +basis of the _status quo ante bellum_. Lord Liverpool considered this as +conclusive. A vigorous prosecution of the war was resolved upon by the +cabinet. Only for reasons of expediency was a show of negotiation still +kept up. + +But when the cabinet took a survey of the general field they felt little +complacency in the prospect of a struggle which sooner or later must +interest the maritime powers. France, compelled by the peace of Vienna +to withdraw from what even Lafayette considered as her natural frontier, +was restive, and there was a large party in Russia who would gladly see +the emperor take up the American cause. Moreover the chancellor of the +exchequer saw before him an inevitable addition of ten millions of +pounds sterling to his budget, the only avowable reason for which was +the rectification of the Canadian frontier. In their distress the +cabinet proposed to Wellington to go to the United States with the +olive-branch and the sword, to negotiate or conquer a peace. The desire +of the cabinet to bring the war to an honorable conclusion was avowed. +But Wellington, before accepting this proposal, gave Lord Liverpool a +very frank opinion of the mistake made in exacting territorial +concessions, since the British held no territory of the United States in +other than temporary possession, and had no right to make any such +demand. Lord Liverpool was not tenacious. He was never, he wrote Lord +Bathurst, much inclined to give way to the Americans, but the cabinet +felt itself compelled to withdraw from its extreme ground. He accepted +his defeat and acknowledged it. + +The Americans meanwhile arranged a draft of a treaty. The articles on +impressment and other maritime rights, absolutely rejected by the +British, were set aside. There only remained the question of the +boundaries, the fisheries, and the navigation of the Mississippi. Here +Mr. Gallatin had as much difficulty in maintaining harmony between Adams +and Clay as in obtaining a peace from Liverpool and Bathurst. Adams was +determined to save the fisheries; Clay would not hear of opening the +Mississippi to British vessels. A compromise was effected by which it +was agreed that no allusion should be made to either subject. Mr. +Gallatin terminated the dispute by adding a declaration that the +commissioners were willing to sign a treaty applying the principle of +the _status quo ante bellum_ to _all_ the subjects of difference. This +was in strict conformity with the instructions from the home government. +On November 10 the American draft was sent in. On the 25th the British +replied with a counter-draft which made no allusion to the fisheries, +but stipulated for the free navigation of the Mississippi. The Americans +replied that they would give up the navigation of the river for a +surrender of the fisheries. This proposal was at once refused by the +British. The matter was settled by an offer of the Americans to +negotiate under a distinct reservation of all American rights. All +stipulations on either subject were in the end omitted, the British +government on December 22 withdrawing the article referring to these +points. In the course of the negotiation Mr. Gallatin proposed that in +case of a future war both nations should engage never to employ the +savages as auxiliaries, but this article does not appear. To the credit +of civilization, however, the last article contained a mutual engagement +to put an end to the trade in slaves. An agreement entered into in +perfect faith, but which the jealousy of the exercise of search in any +form rendered nugatory for half a century. On Christmas day the treaty +was signed. Mr. Henry Adams[19] justly says, "Far more than +contemporaries ever supposed, or than is now imagined, the Treaty of +Ghent was the special work and the peculiar triumph of Mr. Gallatin." +His own correspondence shows how admirably he was constituted for the +nice work of diplomatic negotiation. In the self-poise which he +maintained in the most critical situations, the unerring sagacity with +which he penetrated the purposes of his adversaries, the address with +which he soothed the passions and guided the judgments of his +colleagues, it is impossible to find a single fault. If he had a fault, +says his biographer, it was that of using the razor when he would have +done better with the axe. But the axe is not a diplomatic weapon. The +simulation of temper may serve an occasional purpose, but temper itself +is a mistake; and to Mr. Gallatin's credit be it said, it was a mistake +never committed by him in the course of this long and sometimes painful +negotiation. Looking back upon its shifting scenes, it is clear that +even the pertinacity of Adams and the irascibility of Clay served to +advance the purpose of the mission. From the first to the last Mr. +Gallatin had his own way, not because it was his own way, but because it +was the best way and was so recognized by the majority of the commission +at every turn of difference. Fortunately for the interests of peace the +battle of New Orleans had not yet been fought. There seems a justice in +this final act of the war. The British attack upon the Chesapeake[20] +was committed before war had been declared. The battle of New Orleans +was fought a fortnight after the Treaty of Ghent was signed. The burning +of Washington was avenged by the most complete defeat which the British +had ever encountered in their long career of military prowess. + +By his political life Mr. Gallatin acquired an American reputation; by +his management of the finances of the United States he placed himself +among the first political economists of the day; but his masterly +conduct of the Treaty of Ghent showed him the equal of the best of +European statesmen on their own peculiar ground of diplomacy. No one of +American birth has ever rivaled him in this field. Europeans recognized +his pre-eminent genius. Sismondi praised him in a public discourse. +Humboldt addressed him as his illustrious friend. Madame de Staël +expressed to him her admiration for his mind and character. Alexander +Baring gave him more than admiration, his friendship. + + * * * * * + +Upon the separation of the commissioners, Mr. Gallatin paid a flying +visit to Geneva. His fame, or "glory," to use the words of Humboldt, +preceded him. Of his old intimates, Serre was under the sod in a West +Indian island; Badollet was leading a quiet life at Vincennes in the +Indiana Territory, where Gallatin had obtained for him an appointment in +the land office; Dumont was in England. Of Gallatin's family few +remained. But he received the honors due to him as a Genevan who had +shed a lustre on his native city. On his way to England, where he had +made an appointment with his colleagues to attempt a commercial treaty +with Great Britain, he stopped at Paris. Here he saw Napoleon, returned +from Elba, his star in full blaze before its final extinction. Here he +heard in April (1815) of his appointment by Madison as minister to +France. His colleagues also had been honored by similar advancements. +Adams was transferred from Russia to England. Bayard was named minister +to Russia, but illness prevented his taking possession of his post. + +In April, Mr. Gallatin and Mr. Clay opened negotiations with Lord +Castlereagh in London, where they were quickly joined by Adams. Lord +Castlereagh bore no malice against Mr. Gallatin for the treaty. On the +contrary, he wrote of it to Lord Liverpool as "a most auspicious and +seasonable event," and wished him joy at "being released from the +millstone of an American war." With Lord Castlereagh Mr. Gallatin +arranged in the course of the summer a convention regulating commercial +intercourse between the United States and Great Britain, the only truly +valuable part of which was that which abolished all discriminating +duties. Mr. Gallatin considered this concession as an evidence of +friendly disposition, and rightly judged that British antipathy and +prejudice were modified, and that in the future friendly relations would +be preserved and a rupture avoided. Beyond this, there was little +gained. The old irritating questions of impressment and blockade and the +exclusion of the United States from the West Indies trade remained. + +In July Mr. Gallatin parted from Mr. Baring and his London friends on +his homeward journey. From New York, on September 4, he wrote Madison, +thanking him for the appointment of minister to France as an "evidence +of undiminished attachment and of public satisfaction for his services;" +but he still held his acceptance in abeyance. To Jefferson, two days +later, he had also the satisfaction to say with justice, that the +character of the United States stood as "high as ever it did on the +European continents, and higher than ever it did in Great Britain;" and +that the United States was considered "as the nation designed to check +the naval despotism of England." To Jefferson he naturally spoke of that +France from which they had drawn some of their inspirations and their +doctrines. + +He thus describes the condition of the people:-- + + "The revolution (the political change of 1789) has not, however, + been altogether useless. There is a visible improvement in the + agriculture of the country and the situation of the peasantry. The + new generation belonging to that class, freed from the petty + despotism of nobles and priests, and made more easy in their + circumstances by the abolition of tithes, and the equalization of + taxes, have acquired an independent spirit, and are far superior to + their fathers in intellect and information; they are not + republicans and are still too much dazzled by military glory; but I + think that no monarch or ex-nobles can hereafter oppress them long + with impunity." + +And again, "Exhausted, degraded, and oppressed as France now is, I do +not despair of her ultimate success in establishing her independence and +a free form of government." But it was not till half a century later +that Gambetta, the Mirabeau of the Republic, led France to the full +possession of her material forces, and reëstablished in their original +vigor the principles of 1789. That Gallatin was not blinded by +democratic prejudices appears in the letter he wrote to Lafayette after +Napoleon's abdication, in which he said: "My attachment to the form of +government under which I was born and have ever lived never made me +desirous that it should, by way of experiment, be applied to countries +which might be better fitted for a limited monarchy." + + +_Minister to France_ + +Strange as it appears, there is no doubt that Mr. Gallatin was at this +time heartily weary of political life, and seriously contemplated a +permanent retirement to the banks of the Monongahela. He naturally +enough declined a nomination to Congress, which was tendered him by the +Philadelphia district. His tastes were not for the violence and +turbulence of the popular house. + +Madison left him full time to decide whether he could arrange his +private affairs so as to accept the mission to Paris. In November he +positively declined. He considered the compensation as incompetent to +the support of a minister in the style in which he was expected to live. +His private income was at this time about twenty-five hundred dollars a +year. Monroe pressed him earnestly not to quit the public service, but +the year closed and Mr. Gallatin had not made up his mind. In the +situation of France, which he considered "would under her present +dynasty be for some years a vassal of her great rival," he did not +consider the mission important, and his private fortune was limited to a +narrow competence. "I do not wish," he wrote to Monroe, "to accumulate +any property. I will not do my family the injury of impairing the little +I have. My health is frail; they may soon lose me, and I will not leave +them dependent on the bounty of others." But being again earnestly +pressed, he on January 2, 1816, accepted the appointment. To Jefferson +he wrote that he would not conceal 'that he did not feel yet old enough +nor had philosophy enough to go into retirement and abstract himself +wholly from public affairs.' + +In April, Madison notified Mr. Gallatin of Dallas's probable retirement +from the Treasury, and offered him the post if he cared to return to it. +He was perfectly aware of his supreme fitness for the direction of the +Treasury, and he declined with reluctance, because he was disturbed by +the suspension of specie payments. Remembering Madison's weakness in +1812 on the subject of the renewal of the bank charter, which Gallatin +considered necessary in the situation of the finances, he could hardly +have felt a desire to return to the cabinet in that or indeed in any +other capacity. He was perfectly conscious that as leader of the House +of Representatives, as secretary of the treasury, and as negotiator of +the Ghent treaty, he had brought into the triumvirate all its practical +statesmanship. His short career abroad had opened to him a new source of +intellectual pleasure. He had earned a right to some hours of ease. +Diplomacy at that period, when communication was uncertain and +difficult, was perforce less restricted than in these latter days, when +ambassadors are little more than foreign clerks of the State Department +without even the freedom of a chief of bureau. Gallatin felt entirely at +home, and was happy in this peculiar sphere. There was no time in his +life when he would not have gladly surrendered all political power for +the enjoyment of intellectual ease, the pursuit of science, and the +atmosphere of society of the higher order of culture in whatever field. +And Paris was then, as it is still, the centre of intellectual and +social civilization. + +Jefferson rejoiced in Gallatin's appointment to France, and rightly +judged that he would be of great service there. Of Louis XVIII., +however, Jefferson had a poor opinion. He thought him 'a fool and a +bigot, but, bating a little duplicity, honest and meaning well.' +Jefferson could give Gallatin no letters. He had 'no acquaintances left +in France; some were guillotined, some fled, some died, some are exiled, +and he knew of nobody left but Lafayette.' With Destutt de Tracy, an +intimate friend of Lafayette, Jefferson was in correspondence. Indeed, +he was engaged on the translation of Tracy's work on political economy, +the best, in Jefferson's opinion, that had ever appeared.[21] + +Gallatin reached Paris with his family on July 9, 1816, and had an +interview with the Duc de Richelieu, the minister of Louis XVIII., two +days later. The conversation turned upon the sympathy for Bonaparte in +the United States, which Richelieu could not understand; but Gallatin +explained that it was not extended to him as the despot of France, but +as the most formidable enemy of England. Richelieu warned him of the +prejudices which might be aroused against the reigning family 'by +ex-kings and other emigrants of the same description' who had lately +removed to the United States. This was an allusion to Jerome, who had +fled from the throne of Westphalia to the banks of the Delaware. The +king gave Gallatin an audience on the 11th, when he presented his +credentials. His reception both by his majesty and the princes was, he +wrote to Monroe, "what is called gracious." Louis the Eighteenth was a +Bourbon to the ends of his fingers. He had the _bonhommie_ dashed with +malice which characterized the race. None could better appreciate than +he the vein of good-natured satire, the acquired tone of French society, +which was to Mr. Gallatin a natural gift. Mr. Gallatin was not only +kindly but familiarly received at court; and at the _petits soupers_, +which were the delight of the epicurean king, his majesty on more than +one occasion shelled the crawfish for the youthful daughter of the +republican ambassador. An anecdote is preserved of the king's courteous +malice. To a compliment paid Mr. Gallatin on his French, the king added, +"but I think my English is better than yours." + +Gallatin's first negotiations were to obtain indemnity for the captures +under the Berlin and Milan decrees; but although the Duc de Richelieu +never for a moment hinted that the government of the Restoration was not +responsible for the acts of Napoleon, yet he stated that the mass of +injuries for which compensation was demanded by other governments was so +great that indemnity must be limited to the most flagrant cases. They +would pay for vessels burnt at sea, but would go no farther. In spite of +Mr. Gallatin's persistency no advance was made in the negotiation. A +minor matter gave him some annoyance. On July 4, 1816, at a public +dinner, the postmaster at Baltimore proposed a toast which, by its +disrespect, gave umbrage to the king. Hyde de Neuville, the French +minister to the United States, demanded the dismissal of the offender. +If our institutions and habits as well as public opinion had not +forbidden compliance with this request, the dictatorial tone of De +Neuville was sufficient bar. Richelieu could not be made to understand +the reason for the refusal, and while disclaiming any idea of using +force, said that the government would show its dissatisfaction in its +own way. This seemed to intimate an indefinite postponement of a +consideration of American demands, and would have rendered Mr. +Gallatin's further residence useless as well as unpleasant; but French +dignity got the better of what Gallatin termed, "the sickly +sentimentality which existed on the subject of personal abuse of the +king," and the insignificant incident was not allowed to interfere with +friendly intercourse. + +In 1817 Mr. Gallatin was engaged not only in advising Mr. Adams at +London upon the points of a commercial treaty with Great Britain, but +also, together with Mr. William Eustis, minister to the Netherlands, in +a negotiation with that government. + +The commission met at the Hague, Mr. Goldberg and Mr. Van der Kemp +representing Holland. The subjects were the treaty of 1782 between the +States-general of the Netherlands and the United States, the repeal of +discriminating duties, and the participation of the United States in the +trade with the Dutch East Indies. The basis of a treaty could not be +agreed upon, and the whole matter was referred back to the two +governments, the American commissioners recommending to the President a +repeal of duties discriminating against vessels of the Netherlands, +which would no doubt prevent future exaction of extra tonnage duties +imposed on American vessels by that government. These negotiations +occupied the late summer months. At the end of September Mr. Gallatin +was again at his post in Paris. + +In June, 1818, Mr. Richard Rush, who owed his introduction into public +life to Mr. Gallatin, was appointed minister to England, Adams returning +to the United States to take the portfolio of State in President +Monroe's cabinet. Gallatin was joined to Rush, for the conduct of +negotiations with Great Britain, rendered necessary by the approaching +expiration of the commercial convention of July 3, 1815, which had been +limited to four years. The general field of disputed points was again +entered. It included the questions of impressment, the fisheries, the +boundaries, and indemnity for slaves. The commissioners were supported +by a temper of the American people different from that which prevailed +when Jay and Gallatin respectively undertook the delicate work of +negotiation in 1794 and 1814. A compromise was arrived at, which was +signed on October 20, 1818. The articles on maritime rights and +impressment were set aside. A convention was made for ten years in +regard to the fisheries, the northwest boundary, and other points, and +the commercial convention of 1815 was renewed. The English claim to the +navigation of the Mississippi was finally disposed of, and the article +concerning the West India trade was referred to the President. The +arrangement of the fishery question disturbed Mr. Gallatin, who found +himself compelled to sign an agreement which left the United States in a +worse situation in that respect than before the war of 1812. But as the +British courts would certainly uphold the construction by their +government of the treaty of 1783, our vessels, when seized, would be +condemned and a collision would immediately ensue. This, and the +critical condition of our Spanish relations, left no choice between +concession and war. A short time afterward Lord Castlereagh and the Duke +of Wellington expressed friendly dispositions, and the mooted points of +impressment and the West India trade were considered by them to be near +an arrangement. The right of British armed vessels to examine American +crews was abandoned in the convention itself. + +In July, 1818, the capture of Fort St. Mark and the occupation of +Pensacola in Florida by General Jackson made some stir in the quiet +waters of our foreign diplomacy. Uncertain as to whether the act would +be disavowed or justified by the American government, Mr. Gallatin +explained to the European ministers that the forcible occupation of the +Spanish province was an act of self-defence and protection against the +Indians, but Richelieu replied that the United States "had adopted the +game laws and pursued in foreign ground what was started in its own." +Yet, to the astonishment of Mr. Gallatin, Richelieu was moderate and +friendly in language, and urged a speedy amicable arrangement of +differences with Spain, in whose affairs France took an interest, and +who had asked her good offices. But Gallatin at once rejected any idea +that the United States would join France in any mediation between Spain +and her revolted colonies. It seems rather singular that, to the +suggestion that a Spanish prince might be sent over to America as an +independent monarch, Gallatin contented himself with expressing a doubt +as to the efficacy of such a course to preserve their independence. Mr. +Adams was informed that public recognition of the independence of the +insurgent colony of Buenos Ayres would shock the feelings and prejudices +of the French ministers, but that notwithstanding this displeasure, +France would not join Spain in a war on this account. England, however, +would see such a war without regret, and privateers under Spanish +commissions would instantly be fitted out, both in France and England. +Under the existing convention with Great Britain three hundred American +vessels arrived at Liverpool in the first nine months of 1818 from the +United States and only thirty English, an advantage to the United States +which war would at once destroy. Russia also was displeased with the +recognition of the independence of the Spanish colonies. At the Congress +of Aix la Chapelle various plans of mediation were proposed, but England +refusing to engage to break off all commercial relations with such of +the insurgent colonies as should reject the proposals agreed to, the +whole project was abandoned. An agreement between the five great powers +for the suppression of the slave trade was also proposed at this +Congress, but France declined to recognize the right to visit French +vessels in time of peace, and Russia making a similar declaration, this +plan also fell to the ground, and even an association against the +exactions of the Barbary powers was prevented by jealousy of the naval +preponderance of Great Britain. + +While Mr. Gallatin was still actively engaged in an endeavor to put our +commercial relations with France on a satisfactory basis, and +negotiating with M. Pasquier, the new French minister for foreign +affairs, both with regard to indemnities for captures and the new +Spanish relations involved in the cession of Florida to the United +States, a serious trouble arose in which Mr. Gallatin and Mr. Adams +were at direct difference. In the spring of 1821 a French vessel, the +Apollon, was seized on the St. Mary's River, on the Spanish side, and +condemned for violation of the United States navigation laws. Mr. Adams +sustained the seizure and Mr. Gallatin did his best to defend it, on the +ground that the place where the vessel was seized was embraced in the +occupation of the United States. To Adams he wrote that the doctrine +assumed by the State Department with respect to the non-ratified treaty +with Spain was not generally admitted in Europe, and that "he thought it +equally dangerous and inconsistent with our general principles to assert +that we had a right to seize a vessel for any cause short of piracy in a +place where we did not previously claim jurisdiction." Mr. Gallatin +succeeded in satisfying M. Pasquier that the seizure was not in +violation of the law of nations or an insult to the French flag, and the +captain having instituted a suit for redress against the seizing +officers, the French minister allowed the matter to rest. Adams, +however, was indignant at having his arguments set aside. He complained +of it to Calhoun, and asked what Mr. Gallatin meant. Calhoun answered +that perhaps it was "the pride of opinion." But when Adams got to his +diary, which was the safety-valve of his ill-temper, he set a black mark +against Mr. Gallatin's name in these words: "Gallatin is a man of +first-rate talents, conscious and vain of them, and mortified in his +ambition, checked as it has been, after attaining the last step to the +summit; timid in great perils, tortuous in his paths; born in Europe, +disguising and yet betraying a superstitious prejudice of European +superiority of intellect, and holding principles pliable to +circumstances, occasionally mistaking the left for the right handed +wisdom." Against this judgment, Gallatin's estimate of Adams may be here +set down. It was expressed to his intimate friend Badollet in 1824: +"John Q. Adams is a virtuous man, whose temper, which is not the best, +might be overlooked; he has very great and miscellaneous knowledge, and +he is with his pen a powerful debater; but he wants, to a deplorable +degree, that most essential quality, a sound and correct judgment. Of +this I have had in my official connection and intercourse with him +complete and repeated proofs; and although he may be useful when +controlled and checked by others, he ought never to be trusted with a +place where, unrestrained, his errors might be fatal to the country." +Crawford complained of the difficulty he encountered in the cabinet of +softening the asperities which invariably predominated in the official +notes of the State Department while under Adams's direction, and said +that, had they been allowed to remain as originally drafted, the +government would have been "unembarrassed by diplomatic relations with +more than one power." But it must be remembered that there was no love +lost between Adams and Crawford--political rivals and not personal +friends. + +The commercial negotiations, and the discussion of French pretensions +under the eighth article of the Louisiana treaty, opened with M. +Pasquier, were continued with the Vicomte de Montmorenci, who succeeded +him as minister of foreign affairs. In September, 1821, Mr. Gallatin had +communicated to Mr. Adams his intention of returning home in the spring; +but there appearing a chance of success in the negotiation of a treaty, +he wrote in February, 1822, to President Monroe that if no successor had +been appointed, he was desirous to remain some time longer. He was loath +to return without having succeeded in any one subject intrusted to his +care. Meanwhile Mr. Adams and M. de Neuville, the French minister, had +been busy in the United States. A commercial convention was signed at +Washington on June 24, 1822. Concerning this agreement Mr. Gallatin +wrote to Adams that the terms were much more favorable to France than he +had been led to presume would be acceded to, and more so than had been +hoped for by the French government. He nevertheless expressed the wish +that, as it had been signed, it should be ratified, in anticipation that +the superior activity of our ship-owners and seamen would enable America +to stand the competition. + +In January, 1823, Montmorenci resigned and was succeeded by M. de +Chateaubriand. The change of ministers made no change in the French +persistence in connecting the discussion of the American claims with +that of the eighth article of the Louisiana treaty, an arrangement to +which Mr. Gallatin would not consent. As a last resort he so informed M. +de Chateaubriand, but receiving an unsatisfactory answer he concluded +that there was at that time no disposition in France to do us justice; +and as his protracted stay could be of no service to the United States, +he determined to return home in the course of the spring. In April he +received leave of absence from the President. On May 13 he had a final +conference with Chateaubriand, in which he could get no promise of any +redress, but did obtain the explicit declaration that France would in no +manner interfere in American questions. + +Mr. Gallatin took passage at Havre, and arrived in New York on June 24, +1823. His political friends, especially Crawford, were eager for his +return. Crawford wished him to stand for vice-president in the coming +presidential campaign. After a short visit to Washington he went to his +home at New Geneva. The real value of perfect public service, or indeed +of any service, is only appreciated when it ceases, and friction takes +the place of smooth and noiseless order. Hardly was Mr. Gallatin settled +at Friendship Hill when a letter from President Monroe (October 15) +arrived, urging him to return to Paris, if only for the winter, or until +the crisis brought on by the rupture between France and Spain should be +over. Mr. Gallatin replied, that the deranged state of his private +affairs rendered his return to Europe extremely improbable. + +Goethe says in his "Elective Affinities" that we cannot escape the +atmosphere we breathe. The natural atmosphere of Mr. Gallatin was public +life. In November, 1825, Mr. Clay, Adams's secretary of state, offered, +and, meeting a refusal, pressed upon Mr. Gallatin the post of +representative of the United States at the proposed Congress of American +Republics at Panama. Mr. Clay was right in considering it the most +important mission ever sent from the United States, and had Mr. Gallatin +accepted it, relations with these interesting countries might have been +improved to an immeasurable degree of happiness to them, and of benefit +to both continents. But his family would not hear of his exposure in the +fatal climate of the American Isthmus. Moreover, he pleaded his +ignorance of the Spanish language as a sufficient excuse for declining +the mission,--an example which has not been followed in later days. + + +_Minister to England_ + +In the spring of 1826 Mr. Rufus King, who had taken the place of Mr. +Rush at London, that gentleman having been called to the Treasury by +President Adams, fell ill, and requested the assistance of an +extraordinary envoy. Mr. Gallatin accepted the mission. Before his +nomination reached the Senate Mr. King's resignation was received and +accepted. President Adams wishing to intrust Mr. Gallatin alone with +the pending negotiations, and unwilling to make the two nominations of +minister and envoy, proposed to Mr. Gallatin to take the post of +minister, with powers to negotiate, and liberty to return when the +negotiations should be finished. Personal expenses at London were so +great that the post of resident minister was ruinous. Mr. Adams promised +Mr. Gallatin _carte blanche_ as to his instructions. But instead of +latitude and discretionary power he received at New York voluminous +directions which he engaged faithfully to execute, while regretting that +they had not been made known to him sooner. Nevertheless, in the three +days which intervened before his sailing, he wrote to Mr. Clay a lucid +statement of the points in issue, and mentioned the modifications he +desired. The points were: 1. The northeastern boundary. Upon this he was +only authorized to obtain a reference of the subject to a direct +negotiation at Washington. He asked consent, in case it should be +desirable, to open a negotiation on this point at London. Should Great +Britain refuse to open a negotiation at either place, or to agree to a +joint statement, then he was not to be bound to propose an immediate +reference to a third power. 2. The boundary west of the Stony Mountains. +The instructions limited British continuance on settlements south of the +49th parallel to five years. Mr. Gallatin thought this insufficient, and +proposed fifteen years. 3. The St. Lawrence navigation, and the +intercourse with Canada, as to which he suggested alternate plans. 4. +Colonial trade, on which he asked precise instructions as to what was +desired. To the President he complained of his instructions as 'of the +most peremptory nature, leaving no discretion on unimportant points, and +making of him a mere machine,' and he requested that it be officially +announced to him 'that the instructions were intended to guide but not +absolutely to bind him.' He was not afraid of incurring responsibility +where discretion was allowed, but he would not do it in the face of +strict and positive injunctions. Mr. Gallatin sailed from New York with +his wife and daughter July 1, 1826. Mr. William Beach Lawrence, then a +youth, accompanied him as his secretary. They reached London on August +7. + +Canning was then at the head of the foreign office, and the temper of +the ministry was not that of Castlereagh and Wellington. Mr. Gallatin +did not like French diplomacy, nor did he admire that of England. He +wrote to his son: 'Some of the French statesmen occasionally say what is +not true; here (in London) they conceal the truth.' But while in +diplomacy he found strength and the opinion of that strength to be the +only weapons, he felt satisfaction that the country could support its +rights and pretensions by assuming a different attitude. In the course +of the negotiations Mr. Gallatin learned that one of the king's +ministers had complained of the tone of United States diplomacy towards +England, and had added, that it was time to show that it was felt and +resented. No such fault could attach to the correspondence of Mr. Rush +and Mr. King, or to that of Mr. Clay, which Mr. Addington had found +quite acceptable; but it was ascribed to Mr. Adams's instructions to Mr. +Rush, printed by order of the Senate. Mr. Gallatin later discovered that +the offensive remarks were in Baylies's report on the territory west of +the Stony Mountains. Mr. Gallatin explained the independence of the +House committees in the United States, but as a diplomatist he felt the +need of a concert between the executive and the committees of Congress +in all that concerns foreign relations. Government, after all, is a +complex science. + +The simple directness with which Mr. Gallatin dealt with Lord Liverpool +could not serve with a man of Canning's disposition. Mr. Gallatin did +not fail to bring to bear the pressure of a possible change in the +relations of the United States and Great Britain, which might arise from +the war which seemed imminent between that power and Spain. The new +questions of Cuba, and the old habit of impressment, might at once bring +the United States into collision with England. But the war did not take +place, and the close of the year found the negotiations not far +advanced. Only the convention of 1815 would no doubt be renewed. He +asked for further instructions on that subject, the joint occupancy of +western territory, and impressments, all of which he hoped to arrange +in the spring and summer, and return home. Mr. Lawrence he found to be a +secretary more capable in the current business of the legation than any +of his predecessors. Mr. Gallatin could safely leave him there as +_chargé d'affaires_. + +In December, Chateaubriand used in the House of Peers the words which +Mr. Gallatin had said to him, 'that England could not take Cuba without +making war on the United States, and that she knew it.' Mr. Gallatin so +informed Adams, and added, that France would no doubt agree, as +Chateaubriand would have agreed, to a tripartite instrument if England +were of the same opinion. + +In March, 1827, Adams warned Gallatin that the sudden and unexpected +determination of Great Britain to break off all negotiation concerning +the colonial trade, and the contemporaneous interdiction of the vessels +of the United States from all British ports in the West Indies, had put +a new face on matters. A renewal of the convention of 1818 would +probably be agreed to by the Senate, but no concession in the form of a +treaty would be acceptable. His words were emphatic. "One inch of ground +yielded on the northwest coast,--one step backward from the claim to the +navigation of the St. Lawrence,--one hair's breadth of compromise upon +the article of impressment would be certain to meet the reprobation of +the Senate." In this temper of parties, Adams added, "All we can hope to +accomplish will be to adjourn controversies which we cannot adjust, and +say to Britain as the Abbé Bernis said to Cardinal Fleuri: 'Monseigneur, +j'attendrai.'" + +But changes now occurred in the British ministry: Lord Liverpool died in +February, 1827--Mr. Canning in the following August. Lord Goderich +became prime minister. The new administration returned from Canning's +eccentric course to the old and quiet path. The commercial convention of +1815 was renewed indefinitely, each party being at liberty to abrogate +it at twelve months' notice. The joint occupancy of the Oregon +Territory, agreed to in 1818, was continued in a similar manner. On +September 29 a convention was signed, referring the northeast boundary +to the arbitration of a friendly sovereign. Mr. Gallatin believed that, +had Canning lived, he would have opened a negotiation on the subject of +impressment. Huskisson considered that 'the right, even if well founded, +was one the exercise of which was intolerable, but that this was not the +time to take up the subject.' The new British administration did not +dare to encounter the clamor of the navy, the opposition of the Tories, +and the pride of the nation on this question. + +Having accomplished all that was practicable, completed all the current +business, and leaving the British government in a better temper than he +found it, Mr. Gallatin returned to the United States, reaching New York +on November 29, 1827. Nothing remained in foreign relations in respect +to which Mr. Gallatin felt that he could be of much use except the +northeast boundary. In a letter of congratulation to Mr. Gallatin on his +arrival, President Adams made ample amends for all his harsh judgments, +expressed or withheld. The three conventions were entirely satisfactory +to him. Of the negotiation he said, in words as graceful as warm, "I +shall feel most sensibly the loss of your presence at London, and can +form no more earnest wish than that your successor may acquire the same +influence of reason and good temper which you did exercise, and that it +may be applied with as salutary effect to the future discussions between +the two governments." During his visit to London Mr. Gallatin was +overwhelmed with civilities. Canning was courteous to a degree, and +rarely a day passed that the American ambassador had not to choose +between half a dozen invitations to dinner. At the house of the Russian +minister, the Count de Lieven, he was always welcome, and the Countess +de Lieven, the autocrat of foreign society in London, without whose pass +no stranger could cross the sacred threshold of Almack's, was his fast +friend. To each circle he carried that which each most prized. Whether +the conversation turned upon government or science, the dry figures of +finance, or the more genial topic of diplomatic intrigue, Mr. Gallatin +was its easy master, and his words never fell on inattentive ears. + +With this mission to London Mr. Gallatin's diplomatic service closed. He +would have accepted the French mission in 1834, and so informed Van +Buren, but General Jackson, who was President, had his own plans, and +'ran his machine' without consulting other than his own prejudices or +whims. But although Mr. Gallatin was no longer in the field of +diplomacy, his counsels were eagerly sought. The northeastern boundary +was a troublesome question, indeed in the new phases of American +politics an imminent danger. The extension of the commercial relations +of Great Britain and the United States rendered it imperative that no +point of dispute should remain which could be determined. For two years +after his return from England, Mr. Gallatin was employed in the +preparation of an argument to be laid before the king of the +Netherlands, who had been selected as the arbiter between the United +States and Great Britain on the boundary. The king undertook to press a +conventional line, which the United States, not being bound to accept, +refused. In 1839 Mr. Gallatin prepared, and put before the world, a +statement of the facts in the case. This, revised, together with the +speech of Mr. Webster, a copy of the Jay treaty, and eight maps, he +published at his own expense in 1840. + +At this time conflicts on the Maine frontier brought the subject up in a +manner not to be ignored. Popular feeling was at high pitch. In this +condition of affairs Alexander Baring, who had been raised to the +peerage as Lord Ashburton, was sent to America on a mission of +friendship and peace. As a young man he had listened to the debate on +Jay's treaty in 1795. He was now to be received by Webster in Washington +in the same spirit in which Grenville received Jay in London, when it +was mutually understood that they should discuss the matter as friends +and not as diplomatists, and leave their articles as records of +agreement, not as compromises of discord. Gallatin eagerly awaited the +arrival of his old friend, and was grievously disappointed when contrary +winds blew the frigate which carried him to Annapolis. Letters were +immediately exchanged; Lord Ashburton engaging before he left the +country to find Gallatin out, and, as he said, to "_draw a little wisdom +from the best well_." After the treaty was signed, Lord Ashburton went +from Washington to New York, and the old friends met once more: Mr. +Gallatin was in his 82d year, but in the full possession of his +faculties; Lord Ashburton in his 68th year: a memorable meeting of two +great men, whose lives had much in common; the one the foremost banker +of England, the other the matchless financier of America; and to this +sufficient honor was added for each the singular merit of having +negotiated for his country the most important treaty in its relation to +the other since the separation of 1783,--Mr. Gallatin, the Treaty of +Ghent, which gave peace to America; Lord Ashburton, that treaty which +is known by his name and which secured peace to Great Britain. + +In 1846 Mr. Gallatin rendered his last diplomatic service by the +publication of a pamphlet on the Oregon question, which was then as +threatening as that of the northeastern boundary had been. This +admirable exposition, which put before the people as well as the +negotiators the precise merits of the controversy, powerfully +contributed to the ultimate peaceful settlement. + +Still once more Mr. Gallatin threw his authoritative words into the +scale of justice. His last appearance in public had been when he +presided on April 24, 1844, at a meeting in New York city to protest +against the annexation of Texas. He then held that the resolution of the +House declaring the treaty of annexation between the United States of +America and the Republic of Texas to be the fundamental law of union +between them, without and against the consent of the Senate, was a +direct and undisguised usurpation of power and a violation of the +Constitution. In the storm of opposition he lifted his feeble voice in +condemnation of the violation of treaties, and the disregard of the +sacred obligations of mankind. "I am highly gratified," were his final +words, "I am highly gratified that the last public act of a long life +should have been that of bearing testimony against this outrageous +attempt. It is indeed a consolation that my almost extinguished voice +has been on this occasion raised in defense of liberty, of justice, and +of our country." Of the war with Mexico, he was wont to say, "that it +was the only blot upon the escutcheon of the United States." Aged as he +was, he would not rest until he had made his last appeal for peace with +Mexico. He also prepared supplementary essays on war expenses: the first +of these was published in 1847, the second in 1848. For months all his +faculties, all his feelings were absorbed in this one subject. These +pamphlets were widely circulated by the friends of peace. The venerable +sage had the comfort of knowing that his words were not in vain. Peace +with Mexico was signed on February 2, 1848. + + * * * * * + +Mr. Gallatin was no believer in the doctrine of 'manifest destiny,'--the +policy of bringing all North America into the occupation of a race +speaking the same language, and under a single government. On February +16, 1848, before news of the signature of the treaty at Guadalupe +Hidalgo, by Mr. Trist, the American negotiator, was known in New York, +Mr. Gallatin condemned this idea in a remarkable passage, in a letter to +Garrett Davis:-- + + "What shall be said of the notion of an empire extending from the + Atlantic to the Pacific and from the North Pole to the Equator? Of + the destiny of the Anglo-Saxon race, of its universal monarchy over + the whole of North America? Now, I will ask, which is the portion + of the globe that has attained the highest degree of civilization + and even of power--Asia, with its vast empires of Turkey, India, + and China, or Europe divided into near twenty independent + sovereignties? Other powerful causes have undoubtedly largely + contributed to that result; but this, the great division into ten + or twelve distinct languages, must not be neglected. But all these + allegations of superiority of race and destiny neither require nor + deserve any answer. They are but pretences under which to disguise + ambition, cupidity, or silly vanity." + +The justice of these reflections was assuredly borne out by the +experience of history, but manifest destiny takes no account of past +lessons. + +Before these lines of Mr. Gallatin were penned, on January 19, 1848, +gold was discovered in California. The announcement startled the world +and opened a new era, not only to Europe, but to mankind. Extending the +metallic basis, which no man better than Mr. Gallatin recognized and +held to be the true solvent of money transactions, it postponed for a +half century the inevitable conflict between capital and labor, the +first outbreaks of which in Europe had been with difficulty suppressed, +when the news of good tidings gave promise of unexpected relief. Credit +revived, new enterprises of colossal magnitude were undertaken, and the +demand for labor quickly exceeded the supply. Emigration to America rose +to incredible proportions. Had Mr. Gallatin lived, he would have found +new elements to be weighed in his nice balance of probabilities. He +would no longer, as in 1839, have been compelled to say that "specie is +a foreign product," but would have given to us inestimable advice as to +the proper use to be made of the vast sums taken out from our own soil. +He would have been also brought to face the ethnologic problem of a +continent inhabited by a single race, not Anglo-Saxon, nor Teutonic, nor +yet Latin, but a composite race in which all these will be merged and +blended; a new American race which, springing from a broader surface, +shall rise to higher summits of intellectual power and, with a greater +variety of natural qualities, achieve excellence in more numerous ways. +This vision was denied to Mr. Gallatin. He died at the threshold of the +new era--of the golden age. A half century has not passed since his +death, and the United States has taken from her soil a value of over +three thousand millions of dollars, in gold and silver (gold two +thousand millions, silver one thousand millions), more than two thirds +of the total amount estimated by Mr. Gallatin as the store of Europe in +1839; and has also added to her population, by immigration alone, ten +millions of people, of whom but a small proportion are of the +Anglo-Saxon race. + +FOOTNOTES: + +[Footnote 19: _Life of Albert Gallatin_, p. 546.] + +[Footnote 20: The frigate Chesapeake was captured by the British +man-of-war Leopard in June, 1807.] + +[Footnote 21: A translation of this work, _Economie Politique_, was +published under Jefferson's supervision in 1818.] + + + + +CHAPTER IX + +CANDIDATE FOR THE VICE-PRESIDENCY + + +During the twelve years that Mr. Gallatin was in the Treasury he was +continually looking for some man who could take his place in that +office, and aid in the direction of national politics; to use his own +words, "who could replace Mr. Jefferson, Mr. Madison, and himself." +Breckenridge of Kentucky only appeared and died. The eccentricities of +John Randolph unfitted him for leadership. William H. Crawford of +Georgia, Monroe's secretary of the treasury, alone filled Gallatin's +expectations. To a powerful mind Crawford "united a most correct +judgment and an inflexible integrity. Unfortunately he was neither +indulgent nor civil, and, consequently, was unpopular." Andrew Jackson, +Gallatin said, "was an honest man, and the idol of the worshipers of +military glory, but from incapacity, military habits, and habitual +disregard of laws and constitutional provisions, entirely unfit for the +office of president." John C. Calhoun he looked upon as "a smart fellow, +one of the first amongst second-rate men, but of lax political +principles and an inordinate ambition, not over-delicate in the means of +satisfying itself." Clay he considered to be a man of splendid talents +and a generous mind; John Quincy Adams to be 'wanting to a deplorable +degree in that most essential quality, a sound and correct judgment.' + +The contest lay between Adams and Crawford. Crawford was the choice of +Jefferson and Madison as well as of Gallatin. The principles of the +Republican party had so changed that Nathaniel Macon could say in 1824, +in reply to a request from Mr. Gallatin to take part in a caucus for the +purpose of forwarding Mr. Crawford's nomination, that there were "not +five members of Congress who entertained the opinions which those did +who brought Mr. Jefferson into power." But Macon was of the Brutus stamp +of politicians; of that stern cast of mind which does not 'alter when it +alteration finds or bend with the remover to remove,' and held yielding +to the compulsion of circumstances to be an abandonment of principle. + +Jefferson still held the consolidation of power to be the chief danger +of the country, and the barrier of state rights, great and small, to be +its only protection even against the Supreme Court. Gallatin took +broader ground, and found encouragement in the excellent working of +universal suffrage in the choice of representatives to legislative +bodies. But he was opposed to the extension of the principle to +municipal officers having the application of the proceeds of taxes, +forgetting that universal suffrage is the lever by which capital is +moved to educate labor and relieve it from the burdens of injury, +disease, and physical incapacity at the expense of the whole. Without +stopping to argue these debatable questions, Mr. Gallatin, with +practical statesmanship, determined to maintain in power the only agency +by which he could at all shape the political future, and he threw +himself into the canvass with zeal. + +Crawford had unfortunately been stricken with paralysis, and the choice +of a vice-president became a matter of grave concern. Mr. Gallatin was +selected to take this place on the ticket. To this tender he replied +that he did not want the office, but would dislike to be proposed and +not elected, and he honestly felt that as a foreigner and a residuary +legatee of Federal hatred his name could not be of much service to the +cause. Still, he followed the only course by which any party can be held +together, and surrendered his prejudices and fears to the wishes of his +friends. The Republican caucus met on February 14, 1824, in the chamber +of the House of Representatives. Of the 216 members of the party only 66 +attended. Martin Van Buren, then senator from New York, managed this, +the last congressional caucus for the selection of candidates. + +The solemnity given to the congressional nominations, and the publicity +of the answers of candidates, Mr. Gallatin held to be political +blunders. In fact the plan was adroitly denounced as an attempt to +dictate to the people. + +Crawford was nominated for president by 64 votes, Gallatin for +vice-president by 57. This nomination Mr. Gallatin accepted in a note to +Mr. Ruggles, United States senator, on May 10, 1824. But there were +elements of which party leaders of the old school had not taken +sufficient account. Macon was right when he said that "every generation, +like a single person, has opinions of its own, as much so in politics as +anything else," and that 'the opinions of Jefferson and those who were +with him were forgotten.' And Jefferson himself, in his complacent +reflection that even the name of Federalist was "extinguished by the +battle of New Orleans," did not see that the Republican party of the old +school had been snuffed out by the same event. The new democracy, whose +claims to rule were based, not on the policy of peace or restricted +powers, but on the seductive glitter of military glory, was in the +ascendant, and General Jackson was the favorite of the hour. New +combinations became necessary, and Mr. Gallatin was requested to +withdraw from the ticket, and make room for Mr. Clay, whose great +western influence it was hoped would save it from defeat. This he gladly +did in a declaration of October 2, addressed to Martin Van Buren, dated +at his Fayette home, and published in the "National Intelligencer." The +result of the election was singular. Calhoun was elected vice-president +by the people. The presidential contest was decided in the House, Adams +being chosen over Jackson and Crawford, by the influence of Clay. Mr. +Gallatin quickly discerned in the failure of the people to elect a +president the collapse of the Republican party. He considered it as +"fairly defunct." + +Jackson had already announced the startling doctrine that no regard was +to be had to party in the selection of the great officers of government, +which Mr. Gallatin considered as tantamount to a declaration that +principles and opinions were of no importance in its administration. To +lose sight of this principle was to substitute men for measures. +Jackson's idea of party, however, was personal fealty. He engrafted the +_pouvoir personnel_ on the Democratic party as thoroughly as Napoleon +could have done in his place. Moreover, Gallatin considered Jackson's +assumption of power in his collisions with the judiciary at New Orleans +and Pensacola, and his orders to take St. Augustine without the +authority of Congress, as dangerous assaults upon the Constitution of +the country and the liberties of the people, and he dreaded the +substitution of the worship of a military chieftain for the maintenance +of that liberty, the last hope of man. Ten years later he uttered the +same opinion in a conversation with Miss Martineau, and he expressed a +preference for an annual president, a cipher, so that all would be done +by the ministry. But in the impossibility of this plan, he would have +preferred a four years' term without renewal or an extension of six +years; an idea adopted by Davis in his plan of disintegration by +secession. The presidency, Mr. Gallatin thought, was "too much power +for one man; therefore it fills all men's thoughts to the detriment of +better things." + +When Mr. Gallatin visited Washington in 1829, he found a state of +society, political and social, widely at variance with his own +experience. The ways of Federalist and Republican cabinets were +traditions of an irrevocable past. Jackson was political dictator, and +took counsel only from his prejudices. The old simplicity had given way +to elegance and luxury of adornment. The east room of the presidential +mansion was covered with Brussels carpeting. There were silk curtains at +the windows, French mirrors of unusual size, and three splendid English +crystal chandeliers. In the dining-room were a hundred candles and +lamps, and silver plate of every description, and presiding over this +magnificence the strange successors of Washington and his stately dame, +of Madison and his no less elegant wife,--the Tennessee backwoodsman and +Peggy O'Neil. + +When, it is not too soon to ask, in the general reform of civil service, +shall the possibility of such anomalies be entirely removed by +restricting the executive mansion to an executive bureau, and entirely +separating social ceremony from official state, to the final suppression +of back stairs influence and kitchen cabinets? + + + + +CHAPTER X + +SOCIETY--LITERATURE--SCIENCE + + +Mr. Gallatin's land speculations were not profitable. His plan of Swiss +colonization did not result in any pecuniary advantage to himself. His +little patrimony, received in 1786, he invested in a plantation of about +five hundred acres on the Monongahela. Twelve years later, in 1798, he +was neither richer nor poorer than at the time of his investment. The +entire amount of claims which he held with Savary he sold in 1794, +without warranty of title, to Robert Morris, then the great speculator +in western lands, for four thousand dollars, Pennsylvania currency. This +sum, his little farm, and five or six hundred pounds cash were then his +entire fortune. In 1794, the revolution in Switzerland having driven out +numbers of his compatriots, he formed a plan of association consisting +of one hundred and fifty shares of eight hundred dollars each, of which +the Genevans in Philadelphia, Odier, Fazzi, the two Cazenove, Cheriot, +Bourdillon, Duby, Couronne, Badollet, and himself took twenty-five each. +Twenty-five were offered to Americans, which were nearly all taken up, +and one hundred were sent to Geneva, Switzerland, to D'Yvernois and his +friends. The project was to purchase land, and Mr. Gallatin had decided +upon a location in the northeast part of Pennsylvania, or in New York, +on the border. In the summer Gallatin made a journey through New York to +examine lands with the idea of occupation. In July, 1795, he made a +settlement with Mr. Morris, taking his notes for three thousand five +hundred dollars. Balancing his accounts, Mr. Gallatin then found himself +worth seven thousand dollars, in addition to which he had about +twenty-five thousand acres of waste lands and the notes of Mr. Morris. +In 1798 Mr. Morris failed, and, under the harsh operations of the old +law, was sent to jail. Mr. Gallatin never recovered the three thousand +dollars owed to him in the final balance of his real estate operations. + +After Mr. Gallatin left the Treasury he located patents for seventeen +hundred acres of Virginia military lands in the State of Ohio, on +warrants purchased in 1784. In 1815 he valued his entire estate, +exclusive of his farm on the Monongahela, at less than twelve thousand +dollars. Forty years later he complained of his investment as a +troublesome and unproductive property, which had plagued him all his +life. Besides the purchase of lands, Mr. Gallatin invested part of his +little capital in building houses on his farm, and in the country store +which Badollet managed. The one yielded no return, and the sum put in +the other was lost through the incompetency of his honest but +inexperienced friend. His wife brought him a small property, but at no +time in his life was he possessed of more than a modest competency. But +he had never any discontent with his fortune nor any desire to be rich. + +Mrs. Gallatin, who had always until her marriage lived in cities, was +entirely unfit for frontier life. In these days of railroads it is not +easy to measure the isolation of their country home. Pittsburgh was +nearly five days' journey from Philadelphia, and the crossing of the +Alleghanies took a day and a half more. Before his marriage Mr. Gallatin +had seen very little of society. Though in early manhood he felt no +embarrassment among men, he said 'that he never yet was able to divest +himself of an anti-Chesterfieldian awkwardness in mixed companies.' He +did not take advantage of his residence in Philadelphia to accustom +himself to the ways of the world. There he lived in lodgings and met the +leading public characters of both parties. But when he took his seat in +the cabinet, he found it necessary to enter upon housekeeping and to +take a prominent part in society, for which his wife was admirably +suited, both by temperament and education. Washington Irving wrote of +her in November, 1812, that she was 'the most stylish woman in the +drawing-room that session, and that she dressed with more splendor than +any other of the noblesse;' and again the same year compared her with +the wife of the President, whose courtly manners and consummate tact +and grace are a tradition of the republican court. "Tell your good +lady," mother Irving wrote to James Renwick, "that Mrs. Madison has been +much indisposed, and at last Wednesday's evening drawing-room Mrs. +Gallatin presided in her place. I was not present, but those who were +assure me that she filled Mrs. Madison's chair to a miracle." This is in +the sense of dignity, for Mrs. Gallatin was of small stature. + +Mr. Gallatin's house shared the fate of the public buildings and was +burned by the British when Washington was captured in 1814. He was then +abroad on the peace mission. On his return from France Mr. Gallatin made +one more attempt to realize his early idea of a country home, and with +his family went in the summer of 1823 to Friendship Hill. Here an Irish +carpenter built for him a house which he humorously described as being +in the 'Hyberno-teutonic style,--the outside, with its port-hole-looking +windows, having the appearance of Irish barracks, while the inside +ornaments were similar to those of a Dutch tavern, and in singular +contrast to the French marble chimney-pieces, paper, mirrors, and +billiard-table.' In the summer Friendship Hill was an agreeable +residence, but Mr. Gallatin found it in winter too isolated even for his +taste. + +One exciting circumstance enlivened the spring of 1825. This was the +passage of Lafayette, the guest of the nation, through western +Pennsylvania on his famous tour. Mr. Gallatin welcomed him in an +address before the court-house of Uniontown, the capital of Fayette +County, on May 26. In his speech Mr. Gallatin reviewed the condition of +the liberal cause in Europe, and the emancipation of Greece, then +agitating both continents. In this all scholars as well as all liberals +were of one mind and heart. After the proceedings Lafayette drove with +Mr. Gallatin to Friendship Hill, where he passed the night; crowds of +people pouring down the valley from the mountain roads to see the +adopted son of the United States, the friend of Washington, the +liberator of France. The intimacy between these two great men, who had +alike devoted the flower of their youth to the interests of civilization +and the foundation of the new republic, was never broken. + +Mr. Gallatin passed only one winter at New Geneva. On his return from +his last mission to England he settled permanently in New York, and in +1828 took a house at No. 113 Bleecker Street, then in the suburbs of the +city. He wrote to Badollet in March, 1829, that "it was an ill-contrived +plan to think that the banks of the Monongahela, where he was perfectly +satisfied to live and die in retirement, could be borne by the female +part of his family, or by children brought up at Washington and Paris." +The population of New York has always been migratory, and Mr. Gallatin +was no exception to the rule. In the ten years which followed his first +location he changed his residence on four May days, finally settling at +No. 57 Bleecker Street, nearly opposite to Crosby Street. His life in +New York is a complete period in his intellectual as in his physical +existence, and the most interesting of his career. His last twenty years +were in great measure devoted to scientific studies. + +The National Bank, over which he presided for the first ten years, took +but a small part of his time. The remainder was given up to study and +conversation, an art in which he had no superior in this country and +probably none abroad. Soon after his arrival in New York, Mr. Gallatin +was chosen a member of "The Club," an association famous in its day. As +no correct account of this social organization has ever appeared, the +letter of invitation to Mr. Gallatin is of some interest. It was written +by Dr. John Augustine Smith, on November 2, 1829. An extract gives the +origin of the club. + + "Nearly two years ago some of the literary gentlemen of the city, + feeling severely the almost total want of intercourse among + themselves, determined to establish an association which should + bring them more frequently into contact. Accordingly they founded + the 'Club' as it is commonly called, and which I believe I + mentioned to you when I had the pleasure of seeing you in Bond + Street. Into this 'Club' twelve persons only are admitted, and + there are at present three gentlemen of the Bar, Chancellor Kent, + Messrs. Johnston and Jay, three professors of Columbia College, + Messrs. McVickar, Moore, and Renwick, the Rev. Drs. Wainwright and + Mathews, the former of the Episcopal Church, the latter of the + Presbyterian Church, two merchants, Messrs. Brevoort and Goodhue, + and I have the honor to represent the medical faculty. Our twelfth + associate was Mr. Morse, of the National Academy of Design, of + which he was president, and his departure for Europe has caused a + vacancy. For agreeableness of conversation there is nothing in New + York at all comparable to our institution. We meet once a week; no + officers, no formalities; invitations, when in case of intelligent + and distinguished strangers, and after a plain and light repast, + retire about eleven o'clock." + +At this club Mr. Gallatin, with his wonderful conversational powers, +became at once the centre of interest. The club met at the houses of +members in the winter evenings. There was always a supper, but the rule +was absolute that there should be only one hot dish served, a regulation +which the ladies endeavored to evade when the turn of their husbands +arrived to supply the feast. Among the later members were Professor +Anderson, John A. Stevens, Mr. Gallatin's countryman De Rham, John +Wells, Samuel Ward, Gulian C. Verplanck, and Charles King. No literary +symposium in America was ever more delightful, more instructive, than +these meetings. On these occasions Mr. Gallatin led the conversation, +which usually covered a wide field. His memory was marvelous, and his +personal acquaintance with the great men who were developed by the +French Revolution, emperors and princes, heroes, statesmen, and men of +science, gave to the easy flow of his speech the zest of anecdote and +the spice of epigram. Once heard he was never forgotten. And this rare +faculty he preserved undiminished to the close of his life. Washington +Irving, himself the most genial of men, and the most graceful of +talkers, wrote of him, after meeting him at dinner, in 1841: "Mr. +Gallatin was in fine spirits and full of conversation. He is upwards of +eighty, yet has all the activity and clearness of mind and gayety of +spirits of a young man. How delightful it is to see such intellectual +and joyous old age: to see life running out clear and sparkling to the +last drop! With such a blessed temperament one would be content to +linger and spin out the last thread of existence." + +At the close of the year 1829 Mr. Gallatin attempted to carry out his +old and favorite plan of the "establishment of a general system of +rational and practical education fitted for all, and gratuitously open +to all." The want of an institution for education, combining the +advantages of a European university with the recent improvements in +instruction, was seriously felt. New York, already a great city, and +rapidly growing, offered the most promising field for the national +university on a broad and liberal foundation correspondent to the spirit +of the age. The difficulty of obtaining competent teachers of even the +lower branches of knowledge in the public schools, the system of which +was in its infancy, was great. Persons could be found with learning +enough, but they were generally deficient in the art of teaching. +Governor Throop noticed this deficiency in his message of January, 1830, +without, however, the recommendation of any remedy by legislation. The +existing colleges could not supply the want. At this period religious +prejudice controlled the actions of men in every walk of life; for the +old colonial jealousies of Episcopalian and Presbyterian survived the +Revolution. The religious distrust of scientific investigation was also +at its height. Columbia College, the successor of old King's College, +was governed in the Episcopalian interest. Private zeal could alone be +relied upon to establish the new enterprise on a foundation free from +the influence of clergy; an indispensable condition of success. These +were the views of Mr. Jefferson in 1807. These were the views of Mr. +Gallatin. In response to his request abundant subscriptions in money and +material were at once forthcoming. + +The project of a national university at New York was received by the +literary institutions of the United States with great enthusiasm. In +October, 1830, a convention of more than a hundred literary and +scientific gentlemen, delegates from different parts of the country, and +of the highest distinction, was held in the common-council chamber. The +outcome of their deliberations was the foundation of the New York +University. Mr. Gallatin was the president of the first council, but +his connection with the institution was of short continuance. The +reasons for his withdrawal were set forth in a letter to his old friend, +John Badollet, written February 7, 1833. Beginning with an expression of +his desire to devote what remained of his life "to the establishment in +this immense and growing city (New York) of a general system of rational +and practical education fitted for all and gratuitously opened to all," +he said, "but finding that the object was no longer the same, that a +certain portion of the clergy had obtained the control, and that their +object, though laudable, was special and quite distinct from mine, I +resigned at the end of one year rather than to struggle, probably in +vain for what was nearly unattainable." The history of the university +through its precarious existence of half a century amply justifies Mr. +Gallatin's previsions and retirement. Instead of an American Sorbonne, +of which he dreamed, it has never been more than a local institution, +struggling to hold a place in a crowded field. + +Mr. Gallatin followed the evolutions of French politics with interest. +His friend Lafayette, who, during the Empire, lived in almost enforced +retirement at his estate of La Grange, was a voluntary exile from the +court of Charles X., whose autocratic principles and aggressive course +were rapidly driving France into fresh revolution. In July, 1830, the +crisis was precipitated by the royal decrees published in the +"Moniteur." Lafayette, who was on his estate, hurried instantly to +Paris, where he became a rallying point, and himself signed the note to +the king, announcing that he had ceased to reign. In September following +it fell to him to write to Mr. Gallatin on the occasion of the marriage +of Gallatin's daughter. In this union Lafayette had a triple interest. +Besides his personal attachment for Mr. Gallatin, each of the young +couple was descended from one of his old companions-in-arms. The groom, +Mr. Byam Kerby Stevens, was a son of Colonel Ebenezer Stevens, of the +continental service, who was Lafayette's chief of artillery in his +expedition against Arnold in Virginia, in the spring of 1781; the bride, +Frances Gallatin, was, on the mother's side, the granddaughter of +Commodore James Nicholson, who commanded the gunboats which, improvised +by Colonel Stevens, drove out the British vessels from Annapolis Bay and +opened the route to the blockaded American flotilla.[22] + + "PARIS, _September_ 8, 1830. + + "MY DEAR FRIEND:--A long time has elapsed since I had the pleasure + to hear from you. I need not, I hope, add, that my affectionate + feelings have been continually with you, especially in what related + to my young friend whose change of name has more deeply interested + every member, and in a very particular manner, the younger part of + the family. Let me hear of you all, and receive my tender regards + and wishes, with those of my children and grandchildren. + LAFAYETTE." + +Both of the young people had the honor of Lafayette's acquaintance,--Mr. +Stevens during a visit to Paris, and Miss Gallatin during her father's +residence there as minister, when she was much admired, and was, in the +words of Madame Bonaparte (Miss Patterson), 'a beauty.' In this letter +Lafayette gives a picturesque account of the three days' fighting at the +barricades, and of the departure of the ex-king and the royal army, +accompanied by "some twenty thousand Parisians, in coaches, hacks, and +omnibus.... The royal party, after returning the jewels of the crown, +went slowly to Cherbourg with their own escort, under the protection of +three commissioners, and were there permitted quietly to embark for +England." + +In 1834 Mr. Gallatin's sympathies were greatly excited by the arrival at +New York of a number of Poles, many of them educated men, and among them +Etsko, a nephew of Kosciusko. A public committee was raised, called the +Polish committee, of which Mr. Gallatin was chosen chairman. Besides +superintending the collection of funds, he arranged and carried out in +the minutest details a plan to quarter the exiles upon the inhabitants. +A list of names ending in _ski_ still remains among his papers; to each +was assigned a number, and they were allotted by streets and +numbers,--number 182, one Szelesegynski, was taken by Mr. Gallatin +himself, to look after horses. These unfortunate men were then +distributed through the country, as occupations could be found. In +October Mr. Gallatin's notes show that all had been provided for except +fourteen boys, for whom a subscription was taken up. A tract of land in +Illinois was assigned by Congress to these political exiles. + +Mr. Gallatin's first acquaintance with the American Indian was made at +Machias. In the neighborhood of this frontier town, across the Canadian +border, there were still remnants of the Abenaki and Etchemin tribes. +They were French in sympathy, and all converts to the Roman Catholic +faith. Mr. Lesdernier, with whom Gallatin lodged, had influence over +them from the trade he established with them in furs, and as their +religious purveyor. He had paid a visit to Boston at the time the French +fleet was there in 1781, and brought home a Capuchin priest for their +service. To the young Genevan, brought up in the restrictions of +European civilization, the history of the savage was a favorite study. +In the winter evenings, in the quiet of the log hut, with the aid of one +familiar with the customs and traditions of the race, the foundations +were laid of a permanent interest in this almost untrodden branch of +human science. The Canadian Indians, however, hemmed in by French and +English settlements, were semi-civilized. The Miamis and Shawnees, who +ranged the valley of the Ohio, were the tribes nearest to Gallatin's +home on the Monongahela. These, though for a long time under the +influence of the French, retained their original wildness, and were, +during the first years of his residence, the dread of the frontier. + +The interest aroused in the mind of Mr. Gallatin by personal observation +was quickened by his intimacy with Jefferson, whose "Notes on Virginia," +published in 1801, contained the first attempt at a classification and +enumeration of American tribes. The earlier work of Colden was confined +to the Five Nations of the Iroquois Confederacy. The arrangement of the +Louisiana territory, ceded by France, brought Mr. Gallatin into contact +with Pierre Louis Chouteau, and an intimacy formed with John Jacob +Astor, who was largely concerned in the fur trade of the Northwest, +widened the field of interest, which included the geography of the +interior and the customs of its inhabitants. Mr. Gallatin's examination +of the subject was general, however, and did not take a practical +scientific turn until the year 1823, when, at the request of Baron +Alexander von Humboldt, he set forth the results of his studies in the +form of a Synopsis of the Indian tribes. This essay, communicated by +Humboldt to the Italian geographer Balbi, then engaged upon his "Atlas +Ethnographique du Globe,"--a classification by languages of ancient and +modern peoples,--was quoted by him in his volume introductory to that +remarkable work published in 1826, in a manner to attract the attention +of the scientific world. Vater, in his "Mithridates," first attempted a +classification of the languages of the globe, but the work of Mr. +Gallatin, though confined in subject, was original in its conception and +treatment. In the winter of 1825-26 a large gathering of southern +Indians at Washington enabled him to obtain good vocabularies of several +of the tribes. Uniting these to those already acquired, he published a +table of all the existing tribes, and at the same time, at his instance, +the War Department circulated through its posts a vocabulary containing +six hundred words of verbal forms and of selected sentences, and a +series of grammatical queries, to which answers were invited. He also +opened an elaborate correspondence with such persons as were best +acquainted with the Indian tribes in different sections of the +country.[23] The replies to these various queries were few in number, +but the practical plan, adhered to in substance, has resulted in the +collection by the Smithsonian Institution of a very large number of +Indian vocabularies.[24] + +This class of investigation, in its ample scope for original research +and the ascertainment of principles by analysis and analogic expression, +was peculiarly agreeable to Mr. Gallatin. His friend, du Ponceau,[25] +who served in the American war as the secretary of Steuben, and was now +established in Philadelphia, was likewise deeply engaged in philologic +studies; in 1819 he had published a memoir of the construction of the +languages of the North American Indians, which he followed later with +other papers of a similar nature, among which were a "Grammar of the +Languages of the Lenni Lenape or Delaware Indians," and a memoir on the +grammatical system of the languages of the Indian tribes of North +America, a learned and highly instructive paper, which took the Volney +prize at Paris. + +In 1836 Mr. Gallatin's original paper, contributed to Balbi, amplified +by subsequent acquisitions, was published by the American Antiquarian +Society of Worcester, in the first volume of its Transactions. It was +entitled "A Synopsis of the Indian Tribes, within the United States east +of the Rocky Mountains, and in the British and Russian Possessions in +North America." This elaborate inquiry, the foundation of the science in +America, was intended originally to embrace all the tribes north of the +Mexican semi-civilized nations. From the want of material, however, it +was confined at the southward to the territory of the United States, and +eastward of the Rocky Mountains. It included eighty-one tribes, divided +into twenty-eight families, and was accompanied by a colored map, with +tribal indications. The result of the investigation Mr. Gallatin held to +be proof that all the languages, not only of our own Indian tribes, but +of the nations inhabiting America from the Arctic Ocean to Cape Horn, +have a distinct character common to all. This paper attracted great +attention in Europe. It was reviewed by the Count de Circourt, whose +interest in the subject was heightened by personal acquaintance with the +author. John C. Calhoun, acknowledging receipt of a copy of the +Synopsis, said in striking phrase 'that he had long thought that the +analogy of languages is destined to recover much of the lost history of +nations just as geology has of the globe we inhabit.' + +In 1838, Congress having accepted the trust of John Smithson of +£100,000, and pledged the faith of the United States for its purposes, +Mr. Forsyth, the secretary of state, addressed Mr. Gallatin, at the +request of the President, requesting his views as to its proper +employment; but Mr. Gallatin does not appear to have answered the +communication. The programme of the Smithsonian Institution, inclosed to +the board of regents in its first report, stated its object to be the +increase and diffusion of knowledge, and bears marks of the general +views which Mr. Gallatin had for many years urged on public attention. +The first of the Smithsonian "Contributions to Knowledge" was the memoir +of Ancient Monuments of the Mississippi Valley, by Squier and Davis. +Before its publication was undertaken, however, it was submitted to the +Ethnological Society. Mr. Gallatin returned it, with the approval of the +society, and some words of commendation of his own addressed to +Professor Henry, the learned superintendent of the Smithsonian +Institution. + +The period of temporary political repose, which followed the peace of +Vienna and the establishment of the balance of power by the allied +sovereigns, was an era in human knowledge. Science made rapid progress, +and in its turn showed the broad and liberal influence of the great +revolution. In 1842 societies were founded in Paris and London to +promote the study of ethnology. Mr. Gallatin would not be behindhand in +this important work for which America offered a virgin field. Drawing +about him a number of gentlemen of similar tastes with his own, he +founded in New York, in 1842, the American Ethnological Society. Among +his associates were Dr. Robinson, the famous explorer of Palestine, +Schoolcraft, Bartlett, and Professor Turner, noted for their researches +in the history and languages of the Indian races. Messrs. Atwater, +Bradford, Hawks, Gibbs, Mayer, Dr. Morton, Pickering, Stephens, Ewbank, +and Squier were also, either in the beginning or soon after, members of +this select and learned institution, of which Mr. Gallatin was the +central figure. One of its members said in 1871, 'Mr. Gallatin's house +was the true seat of the society, and Mr. Gallatin himself its +controlling spirit. His name gave it character, and from his purse +mainly was defrayed the cost of the two volumes of the "Transactions" +which constitute about the only claim the society possesses to the +respect of the scientific world.' To the first of these volumes, +published in 1845, Mr. Gallatin contributed an "Essay on the +semi-civilized nations of Mexico and Central America, embracing +elaborate notes on their languages, numeration, calendars, history, and +chronology, and an inquiry into the probable origin of their +semi-civilization." In this he included all existing certain knowledge +of the languages, history, astronomy, and progress in art of these +peoples. A copy of this work he sent to General Scott, then in the city +of Mexico after his triumphant campaign, inclosing a memorandum which he +urged the general to hand to civilians attached to the army. This was a +request to purchase books, copies of documents, printed grammars, and +vocabularies of the Mexican languages, and he authorized the general to +spend four hundred dollars in this purpose on his account. In the second +volume, published in 1848, he printed the result of his continued +investigations on the subject which first interested him, as an +introduction to a republication of a work by Mr. Hale on the "Indians of +Northwest America." This consisted of geographical notices, an account +of Indian means of subsistence, the ancient semi-civilization of the +Northwest, Indian philology, and analogic comparisons with the Chinese +and Polynesian languages. These papers Mr. Gallatin modestly described +to Chevalier as the 'fruits of his leisure,' and to Sismondi he wrote +that he had not the requisite talent for success in literature or +science. They nevertheless entitle him to the honorable name of the +Father of American Ethnography. + +In 1837 Mr. Wheaton, the American minister at Berlin, requested Mr. +Gallatin to put the Baron von Humboldt in possession of authentic data +concerning the production of gold in the United States. Humboldt had +visited the Oural and Siberian regions in 1829, at the request of the +Emperor of Russia, to make investigations as to their production of the +precious metals. Mr. Gallatin was the only authority in the United +States on the subject. Later von Humboldt wrote to Mr. Gallatin of the +interest felt abroad, and by himself, in the gold of the mountains of +Virginia and Tennessee, a country which rivaled on a small scale the +Dorado of Siberia. The treasures of the Pacific coast were not yet +dreamed of. + +Mr. Gallatin perfectly understood the range of his own powers. He said +of himself:-- + + "If I have met with any success, either in public bodies, as an + executive officer, or in foreign negotiations, it has been + exclusively through a patient and most thorough investigation of + all the attainable facts, and a cautious application of these to + the questions under discussion.... Long habit has given me great + facility in collating, digesting, and extracting complex documents, + but I am not hasty in drawing inferences; the arrangement of the + facts and arguments is always to me a considerable labor, and + though aiming at nothing more than perspicuity and brevity, I am a + very slow writer." + +Mr. Gallatin's manuscripts and drafts show long and minute labor in +their well considered and abundant alterations. Referring on one +occasion to his habit of reasoning, Mr. Gallatin remarked, that of all +processes that of analogy is the most dangerous, yet that which he +habitually used; that it required the greatest possible number of facts. +This is the foundation of philology, and his understanding of its method +and its dangers is the reason of his success in this branch of science. + +The difficulty experienced in establishing any literary or scientific +institutions in New York was very great. An effort made in 1830, which +Mr. Gallatin favored, to establish a literary periodical failed, not on +account of the pecuniary difficulties, but from the impossibility of +uniting a sufficient number of able coöperators. But Mr. Gallatin's +interest in literature was not as great as in science.[26] + +In 1841 a national institution for the promotion of science was +organized at Washington. The coöperation of Mr. Gallatin was invited, +but the society had a short existence. In 1843 Mr. Gallatin was chosen +president of the New York Historical Society. His inaugural address is +an epitome of political wisdom. Pronounced at any crisis of our history, +it would have become a text for the student. In this sketch he analyzed +the causes which contributed to form our national character and to +establish a government founded on justice and on equal rights. He showed +how, united by a common and imminent danger, the thirteen States +succeeded in asserting and obtaining independence without the aid of a +central and efficient government, and the difficulties which were +encountered when a voluntary surrender of a part of their immense +sovereignty became necessary as a condition of national existence. He +said that the doctrine that all powers should emanate from the people is +not a question of expediency. + +In this address he summed up the reasons why Washington exercised such a +beneficial influence upon the destinies of his country. In a +confidential letter to his wife in 1797, he expressed an opinion that +the father of his country was not a good-natured and amiable man, but +time had mellowed these recollections and softened the asperity of this +judgment. Washington had not, he said (in 1843), 'an extraordinary +amount of acquired knowledge; he was neither a classical scholar nor a +man of science, nor was he endowed with the powers of eloquence, nor +with other qualities more strong than solid, which might be mentioned; +but he had a profound and almost innate sense of justice, on all public +occasions a perfect control of his strong passions,[27] above all a most +complete and extraordinary self-abnegation. Personal consequences and +considerations were not even thought of, they never crossed his mind, +they were altogether obliterated.' Mr. Gallatin held that "the Americans +had a right to be proud of Washington, because he was selected and +maintained during his whole career by the people--never could he have +been thus chosen and constantly supported had he not been the type and +representative of the American people." + +The commemoration of the fortieth anniversary of the foundation of the +New York Historical Society, November, 1844, was an occasion of unusual +interest. John Romeyn Brodhead, who had just returned from the Hague +with the treasures of New Netherland history gathered during his +mission, was the orator of the day. The venerable John Quincy Adams, Mr. +Gallatin's old associate at Ghent, was present. After the address, which +was delivered at the Church of the Messiah on Broadway, the society and +its guests crossed the street to the New York Hotel, where a banquet +awaited them. Mr. Gallatin retired early, leaving the chair to the first +vice-president, Mr. Wm. Beach Lawrence. After he had left the room, Mr. +Adams, speaking to a toast to the archæologists of America, said: "Mr. +Gallatin, in sending to me the invitations of the society, added the +expression of his desire 'to shake hands with me once more in this +world.'" Mr. Adams could not but respond to his request. In his remarks +he said: + + "I have lived long, sir, in this world, and I have been connected + with all sorts of men, of all sects and descriptions. I have been + in the public service for a great part of my life, and filled + various offices of trust, in conjunction with that venerable + gentleman, Albert Gallatin. I have known him half a century. In + many things we differed; on many questions of public interest and + policy we were divided, and in the history of parties in this + country there is no man from whom I have so widely differed as from + him. But in other things we have harmonized; and now there is no + man with whom I more thoroughly agree on all points than I do with + him. But one word more let me say, before I leave you and him, + birds of passage as we are, bound to a warmer and more congenial + clime,--that among all public men with whom I have been associated + in the course of my political life, whether agreeing or differing + in opinion from him, I have always found him to be an honest and + honorable man." + +In the road to harmony Mr. Adams had to do the traveling. Mr. Gallatin +never changed his political opinions. The political career of the two +men offered this singular contrast: Adams, dissatisfied with his party, +passed into opposition; Gallatin, though at variance with the policy of +the administration of which he made a part, held his fealty, and +confined himself to the operations of his own bureau. + +For a period far beyond the allotted years of man Mr. Gallatin retained +the elasticity of his physical nature as well as his mental +perspicacity. In middle age he was slight of figure, his height about +five feet ten inches, his form compact and of nervous vigor. His +complexion was Italian;[28] his expression keen; his nose long, +prominent; his mouth small, fine cut, and mobile; his eyes hazel, and +penetrative; his skull a model for the sculptor. Thus he appears in the +portrait painted by Gilbert Stuart about the time that he took charge of +the Treasury Department; he was then about forty years of age. In the +fine portrait by William H. Powell, taken from life in 1843, and +preserved in the gallery of the New York Historical Society, these +characteristics appear in stronger outline. Monsieur de Bacourt,[29] the +literary executor of Talleyrand, who was the French Ambassador to the +United States in 1840, paid a visit to Mr. Gallatin in that year, and +describes him as a "beau vieillard de quatre-vingt ans," who has fully +preserved his faculties. Bacourt alludes to his remarkable face, with +its clear, fine cut features, and his "physiognomie pleine de finesse;" +and dwells also upon the ease and charm of his conversation. + +As his life slowly drew to its close, one after another of the few of +his old friends who remained dropped from the road. Early in 1848 Adams +fell in harness, on the floor of the House of Representatives; Lord +Ashburton died in May. Finally, nearest, dearest of all, the companion +of his triumphs and disappointments, the sharer of his honors and his +joys, his wife, was taken from him by the relentless hand. The summer of +1849 found him crushed by this last affliction, and awaiting his own +summons of release. He was taken to Mount Bonaparte, the country-seat of +his son-in-law, at Astoria on Long Island, where he died in his +daughter's arms on Sunday, August 12, 1849. The funeral services were +held in Trinity Church on the Tuesday following, and his body was laid +to rest in the Nicholson vault,[30] in the old graveyard adjoining. The +elegant monument erected during his lifetime is one of the attractive +features of this venerable cemetery, in whose dust mingle the remains of +the temple of no more elevated spirit than his own. The season was a +terrible one--the cholera was raging, the city was deserted. In the +general calamity private sorrow disappeared, or the occasion would have +been marked by a demonstration of public grief and of public honor. As +the tidings went from city to city, and country to country, the friends +of science, of that universal wisdom which knows neither language nor +race, paused in their investigations to pay respectful homage to his +character, his intellect, and to that without which either or both in +combination are inadequate to success--his labor in the field. + +On October 2, 1849, at the first meeting of the Historical Society +after the death of Mr. Gallatin, Mr. Luther Bradish, the presiding +officer, spoke of him in impressive words, as the last link connecting +the present with the past. He dwelt upon the peculiar pleasure with +which the presence of Mr. Gallatin was always hailed, and the peculiar +interest it gave to the proceedings of the society, and many an eye was +dimmed, as he recalled the venerable form, the beautifully classic head, +the countenance ever beaming with intelligence, and summed up the long +and useful career of the departed sage in these impressive words:-- + + "The name of Albert Gallatin is emphatically a name of history. Few + men have lived in any age whose biographies have been so intimately + connected with the history of their country. Living in one of the + most interesting periods of the world, a period of great events, of + the discussion of great principles and the settlement of great + interests, almost the whole of his long and active life was passed + in public service amidst those events and in those discussions.... + For nearly half a century he was almost constantly employed in the + public service; almost every department of that service has + received the benefit of his extraordinary talents and his varied + and extensive and accurate knowledge. Whether in legislation, in + finance, or in diplomacy, he has been equally distinguished in all. + In all or in either he has had few equals and still fewer + superiors." + +To Jeremy Bentham Mr. Gallatin acknowledged himself indebted, as his +master in the art of legislation; but from whatever ground he drew his +maxims of government, they were reduced to harmony in the crucible of +his own intelligence by the processes of that brain which Spurzheim +pronounced capital,[31] and Dumont held to be the best head in America. +In that massive and profound structure lay faculties of organization and +administration which mark the Latin and Italian mind in its highest form +of intellectual development. + +His moral excellence was no less conspicuous than his intellectual +power. He had a profound sense of justice, a love of liberty, and an +unfaltering belief in the capacity of the human race for self-rule. +Versed in the learning of centuries, and familiar with every experiment +of government, he was full of the liberal spirit of his age. To a higher +degree than any American, native or foreign born, unless Franklin, with +whose broad nature he had many traits in common, Albert Gallatin +deserves the proud title, aimed at by many, reached by few, of Citizen +of the World. + +FOOTNOTES: + +[Footnote 22: An account of this expedition may be found in the +publications of the Maryland Historical Society.] + +[Footnote 23: + +WASHINGTON, 29_th May_, 1826. + +SIR,--Mr. Stewart communicated to me your answer of 4th April last to +the letter which, at my request, he had addressed to you; and I return +you my thanks for your kind offer to forward the object in view,--one +which is not, however, of a private nature but connected with what is +intended to be a National work; and I have delayed writing in order to +be able to send at the same time the papers herewith transmitted. + +It is at my suggestion that the Secretary of War has, with the +approbation of the President, taken measures to collect comparative +vocabularies of all the languages and dialects of the Indian tribes +still existing within the United States. The circular is addressed to +all the Indian superintendents and agents, and to the missionaries with +whom the Department corresponds. But they have no agent with the +Nottoways, and we are fortunate that you should have been disposed to +lend your aid on this occasion. + +It is the intention of government that the result of these researches +should be published, giving due credit to every individual who shall +have assisted in a work that has been long expected from us, and which +will be equally honorable to the persons concerned and to the country. +It had been my intention to contribute my share in its further progress: +this my approaching departure for Europe forbids. The inclosed papers, +attending to the Notes and to the circular, are so full that I need not +add any further explanation, and have only to request that you will have +the goodness to transmit whatever vocabulary and other information you +may obtain to Colonel Tho. L. McKinney, Office of Indian Affairs, under +cover directed to the Secretary of War. Mr. McKinney will also be happy +to answer any queries on the subject you may have to propose. + +I have the honor to be respectfully, sir, +Your most obedient servant, +ALBERT GALLATIN + +Mr. James Rochelle, +Jerusalem, Southampton County, Virginia. +_Communicated by J. H. Rochelle, Jerusalem, Virginia._] + +[Footnote 24: Among the most distinguished of those who have followed +the pathway indicated by Mr. Gallatin was the late George Gibbs, an +indefatigable student and an admirable ethnologist. His Chinook jargon +was published by the Smithsonian Institution.] + +[Footnote 25: Mr. du Ponceau became president of the learned societies +of Pennsylvania: the Historical Society and the American Philosophical +Society.] + +[Footnote 26: His favorite novel was _The Antiquary_, which he read once +a year. Novels, he said, should be read, the last chapter first, in +order that appreciation of the style should not be lost in the interest +excited by the story.] + +[Footnote 27: Mr. Gallatin's assertion, which corresponded with that of +Jefferson, that Washington had naturally strong passions, but had +attained complete mastery over them, is quoted by the Earl of Stanhope +(Lord Mahon) in his famous eulogy of Washington's attributes.] + +[Footnote 28: The Gallatins claim to descend from one Callatinus, a +Roman Consul.] + +[Footnote 29: _Souvenirs d'un Diplomate._ Paris, 1882.] + +[Footnote 30: This was the vault of the Witter family, a daughter of +which Commodore Nicholson married.] + +[Footnote 31: "In my youth the fashion was to decide in conformity +with Lavater's precepts; then came Camper's facial angle, which gave a +decided superiority to the white man and monkey; and both have been +superseded by the bumps of the skull. This criterion is that which suits +me best, for Spurzheim declared I had a _capital_ head, which he might +without flattery say to everybody." _Gallatin to Lewis T. Cist of +Cincinnati, November_ 21, 1837.] + + + + +INDEX + + +Adams, Henry, calls treaty of Ghent the work of Gallatin, 324. + +Adams, John, announces election of Gallatin as senator, 60; + convenes Congress to consider relations with France, 132; + his message, 133; replies coolly to resolution of House, 136, 137; + remarks of McClanachan to, 138; + his message in 1797, 139; + visited by House to present answer, 140; + wishes to establish new foreign missions, 141; + informs Congress of French outrages, 147; + and of preparations for war, 147; + sends in X Y Z dispatches, 149; + sends message on French relations, 152, 153; + urges preparation for war, 155; + thanks House for support, 155; + delighted with support of Congress in 1799, 158; + congratulates Congress on settlement at Washington, 162; + supported for President by New England, 163; + in election of 1800, 165; + attributes distresses of Confederation to financial ignorance, 174; + his breach with Hamilton, 177. + +Adams, John Quincy, on results of Gallatin's proposed appointment as + secretary of state, 295; + meets Gallatin and Bayard at St. Petersburg, 302; + his training, comparison with Gallatin, 302, 303; + given new commission, 312; + differs with Clay over fisheries and Mississippi navigation, 323; + appointed minister to England, 326; + advised by Gallatin concerning commercial treaty, 333; + appointed secretary of state, 334; + informed by Gallatin of disadvantages of a war with Spain, 336, 337; + his arguments in Apollon case disregarded by Gallatin, 338; + his indignation, 338; + writes opinion of Gallatin in his diary, 333, 339; + described by Gallatin to Badollet, 339, 356; + his pugnacity complained of by Crawford, 339; + negotiates treaty with De Neuville, 340; + comments of Gallatin upon, 340; + appoints Rush secretary of treasury, 342; + offers mission to England to Gallatin, 342, 343; + promises Gallatin _carte blanche_, but gives him full instructions, 343; + his instructions to Rush printed, 345; + warns Gallatin to yield nothing, 346; + congratulates Gallatin on his success, 348; + candidate for presidency, 356; + elected by House of Representatives, 358; + at meeting of New York Historical Society, 384; + Gallatin's friendly greeting to, 384; + eulogizes Gallatin, 384, 385; + his changing party compared with Gallatin's steadiness, 385; + death, 386. + +Adams, William, on English peace commission, 316. + +Addington, Henry, on Clay's tone as diplomat, 345. + +Adet, P. A., French minister, imperils sympathy for France by impudence + to Washington, 128; + condemned by Federalists, 134; + recommends tricolor, 153. + +Aix-la-Chapelle, Congress of, 337. + +Alexander, Emperor of Russia, authorizes renewal of mediation, 308; + fails to inform Romanzoff of Castlereagh's refusal, 311, 312; + vain efforts of Crawford to secure interview with, 315; + promises Lafayette to use influence in behalf of United States, 315; + has interview with Gallatin, 315; + informs Gallatin that he can do nothing more, 316. + +Algiers, treaty with, 117, 118. + +Alien Bill, debate and passage in House, 152; + petitions against, in Congress, 157. + +Allegheny County, its part in Whiskey Insurrection, 49, 68, 78, 96; + elects Gallatin to Congress, 93, 127. + +Allègre, Sophie, marries Gallatin, her character and death, 30. + +Allègre, William, father-in-law of Gallatin, 30. + +Allen, ----, in debate on French relations, 136; + attacks Gallatin as a French agent, 150. + +Allston, Joseph W., at free trade convention, 1831, 241. + +American Ethnological Society, founded by Gallatin, 379; + its transactions, 379, 380. + +Ames, Fisher, leading orator of Federalists, 99; + his speech on the Jay treaty, 120, 121; + reports answer to President's Message, 128; + defends it against Giles, 129; + leaves Congress, his oratory, 133. + +Anderson, Professor, member of "The Club," 367. + +Anti-Federalists, call convention to organize in favor of amending + Constitution, 37; + adopt resolutions to organize throughout the State, 39, 40; + recommend amendments by petition, 40. + +Apollon, seizure of, explained by Gallatin and Adams, 338. + +Army, reduction of, advocated by Gallatin, 108, 123, 129, 130, 186, 188; + his course defended, 216. + +Arnold, Benedict, effect of his treason, 12; + campaign of Lafayette against, 371. + +Ashburton, Lord. See Baring, Alexander. + +Astor, John Jacob, assists Gallatin to float loan, 214; + wishes destruction of United States Bank, 259; + subscribes capital of bank on condition that Gallatin manage its + affairs, 269; + his fur enterprise, 287; + offered protection by Jefferson, 288; + his settlement at Astoria, 288; + unable to persuade Madison to support him, 288. + +Astoria, foundation and history of, 288. + +Atwater, ----, member of Ethnological Society, 379. + + +Bache, Franklin, educated at Geneva, 4; + attacks Washington as a defaulter, in "Aurora," 104. + +Bache, Richard, letter to, furnished by Franklin to Gallatin, 11. + +Bacourt, M. de, describes Gallatin in old age, 386. + +Badollet, Jean, college friend of Gallatin, 5; + Arcadian schemes of, 9; + letter of Gallatin to, 9; + letters of Serre to, on life in Maine, 15, 25; + informs Gallatin of troubles in Geneva, 25; + at Gallatin's invitation, joins him in America, 25, 26; + established at Greensburg, 27; + letter of Gallatin to, 43; + with Gallatin at anti-excise convention, 52; + advised by Gallatin to avoid United States marshal, 55; + letter of Gallatin to, on French Revolution, 56; + letter of Gallatin to, on his wife, 59; + instructed by Gallatin to secure reëlection of unseated members of + legislature, 95; + given an office by Gallatin, 287, 326; + remark of Gallatin to, 299; + letter of Gallatin to, on J. Q. Adams, 339; + takes shares in Gallatin's land scheme, 361; + manages store for Gallatin, 362; + letters of Gallatin to, 365, 370. + +Balbi, quotes Gallatin in his Atlas, 374. + +Baldwin, Abraham, on committee on finance, 106. + +Bank of North America, established by Morris, 172, 248; + its purpose, 248; + organization, 248, 249; + difficulties of starting, 249, 260; + its services, 249; + jealousy of Pennsylvania toward, 250. + +Bank of United States, established by Hamilton, 175, 250, 251; + its organization, 251, 252; + borrowed from, by Gallatin, 204; + petitions for a re-charter, 252; + Gallatin's report in favor of, 252-254; + a re-charter refused, 231, 254; + its value, 255; + opinion of Gallatin on, 255; + controls state banks, 259; + desire of Astor to crush, 259; + remits specie to foreign stockholders, 260; + its dissolution causes panic, 262, 263; + reincorporation proposed, 265; + vetoed, then approved, by Madison, 265; + its subsequent history, 266; + helps resumption of specie payments, 267; + presidency of, declined by Gallatin, 268; + deposits removed from, by Taney, 269; + accepts charter from Pennsylvania, 271; + its subsequent career, 271; + fails in 1839, 276; + weakness of Madison in 1812 in allowing its dissolution, 296. + +Bank, National, of New York, connection of Gallatin with, 269-277. + +Banks, state, difficulty of controlling their issues, 256; + their evil effects, 257; + status in 1811, 258; + increase after termination of Bank of United States, 261, 262; + suspend payment in 1815, 262; + agree to resume, 267; + supported by second Bank of United States, 267; + Gallatin's "Considerations on," etc., 268; + connection of Gallatin with, 269-277; + speculation craze of, in 1836, 271, 272; + suspend payment in 1837, 272; + conventions of, to prepare for resumption, 273-275; + aided by Treasury, 275; "Suggestions" of Gallatin, 277. + +Barbour, Philip P., presides over free trade convention in 1831, 241. + +Baring, Alexander, explains to Gallatin British reasons for refusing + Russian mediation, 306, 307; + reply of Gallatin, 309; + urges Gallatin to visit England, 311; + requested by Gallatin to send passports, 313; + his mission to America, 349, 350; + his manner of negotiation with Webster, 350; + visits Gallatin, 350; + comparison with Gallatin, 350; + his death, 386. + +Barings, connection with Louisiana purchase, 193, 195; + competition of Bank of United States with, 271; + letter of Gallatin to, 305. + +Barras, Comte, encouraged by Napoleon's success to bold measures against + United States, 132. + +Bartlett, John Russell, gives anecdotes of Gallatin, 13, 22. + +Bartlett, ----, member of Ethnological Society, 379. + +Bathurst, Lord, promises to appoint peace commissioners, 314; + reopens negotiations, 319; + insists on possession of part of Maine, 321. + +Bayard, James A., elected to Congress, 132; + on legislative encroachments on executive, 143; + on resolution to furnish foreign correspondence, 156; + defends Sedition Law by a clever amendment, 159; + moves committee to arrange for balloting in 1800, 166; + accompanies Gallatin as peace commissioner, 301, 302; + willing to accept an informal renunciation of impressment, 305; + goes to Amsterdam, 312; + on new commission to treat directly, 312; + visits London, 313; + asks Monroe for authority to negotiate anywhere, 314; + appointed minister to Russia, 326. + +Baylies, ----, his report on Western territory complained of by England, + 345. + +Bentham, Jeremy, works translated by Dumont, 5; + influences Gallatin, 388. + +Bentson, ----, on Astor's hostility to United States Bank, 259. + +Berlin and Milan decrees, negotiations for compensation for seizures + under, 333. + +Biddle, C. C., at free trade convention in 1831, 241. + +Biddle, Nicholas, in panic of 1837, 275. + +Blount, William, on committee on finance, 107; + impeached, 138. + +Bonaparte, Jerome, his flight to America, 332. + +Bonaparte, Napoleon, his precocity compared to that of Gallatin, 32; + effect of his Italian successes on French policy, 132, 139; + adopts conciliatory tone, 160; + issues Milan decree, 229; + seen by Gallatin during Hundred Days, 326; + American sympathy for, explained by Gallatin, 331. + +Boorman, James, at free trade convention in 1831, 241. + +Borgo, Pozzo di, compared to Gallatin, 32. + +Boston, visit of Gallatin to, 12-14, 17; + Puritanical society in, 13; + prejudice against French, 13; + Gallatin's opinion of, 18; + protests against Jay treaty, 103. + +Botts, John M., letter of Gallatin to, on bank, 256. + +Boundary, northeast, in treaty of Ghent, 321, 322; + discussed in 1826, 343; + referred to arbitration, 347; + argument concerning, prepared by Gallatin, 349; + decision of King of Netherlands rejected by United States, 349; + documents concerning, published by Gallatin, 349; + settled by Ashburton treaty, 350. + +Bourdillon, ----, takes share in Gallatin's land scheme, 361. + +Bourne, Shearjashub, on committee on finance, 106. + +Brackenridge, Judge H. H., on Gallatin's part in anti-excise agitation, + 50; + in Washington County, advises moderation, 69; + an authority for history of insurrection, 71; + his character and policy, 71; + leads Pittsburgh committee to urge moderation upon rioters, 72; + describes Bradford's behavior, 72; + his estimate of numbers under arms, 72; + compares excitement with that in 1765 and 1775, 74; + at Parkinson's Ferry meeting, 78; + supports Gallatin's efforts to prevent rebellion, 80, 82; + on committee to confer with United States commissioners, 81; + describes Gallatin's speech, 82; + claims credit for preventing civil war, 84; + on threats of secession, 86; + defeated by Gallatin for Congress, 93. + +Bradford, David, represents Washington County in anti-excise + proceedings, 51; + elected to legislature, 54; + low opinion of Gallatin concerning, 54; + tries to shirk responsibility, 69; + then determines on extreme measures, robs mail, 69; + calls for armed resistance, 70; + unable to countermand order, 70; + assumes office of major-general, 72; + his harangue to the insurgents, 73; + at meeting at Parkinson's Ferry, 78; + advocates armed resistance, 79; + on committee on resolutions, 80; + named to confer with United States commissioners, 81; + urges rejection of their terms, 81, 82; + excepted from amnesty, flies from the country, 84, 85. + +Bradford, James, in anti-excise convention, 52. + +Bradford, ----, member of Ethnological Society, 379. + +Bradish, Luther, his eulogy of Gallatin, 388. + +Breading, Nicholas, in Pennsylvania ratifying convention, 35. + +Breckenridge, John, his brief career, 355. + +Brevoort, ----, member of "The Club," 367. + +Brodhead, John Romeyn, orator at fortieth anniversary of New York + Historical Society, 384. + +Buck, Daniel, on committee on finance, 107. + +Burke, Edmund, on place of revenue in the state, 218. + +Burr, Aaron, his connection with Dayton, 104; + in presidential election of 1800, 163, 164, 166, 167; + alienated from Jefferson by refusal to appoint Davis, 282. + + +Cabinet, its lack of financial coöperation under Jefferson, 188; + criticises Jefferson's messages, 283; + weekly meetings of, suggested by Gallatin, 283; + absence of system in, 284; + dissensions and reorganization under Madison, 296, 297. + +Cabot, George, on committee to consider Gallatin's eligibility to + senate, 61. + +Calhoun, John C., reports plan for a national bank, 265; + ascribes Gallatin's disregard of Adams's arguments in Apollon case to + "pride," 338; + Gallatin's opinion of, 355; + elected Vice-President, 358; + on Gallatin's ethnological studies, 378. + +California, discovery of gold in, 353, 354. + +Campbell, George W., furnished with report by Gallatin on injuries of + Great Britain, 292, 303; + secretary of treasury, 312. + +Canning, George, his policy toward United States, 225, 295, 344; + attitude of Gallatin toward, in negotiation, 345; + death, 347. + +Carnahan, Dr., describes entry of Whiskey Rebellion prisoners into + Cannonsburg, 91. + +Castlereagh, Lord, discourages offer of Russia to mediate, 304; + gives assurance of safety to cartel-ship, 307; + refuses second offer of mediation, 311; + offers to deal directly, 312; + member of cabinet most favorable to America, 314; + advises English commissioners to moderate demands, 319; + approves treaty of Ghent, 326; + arranges commercial convention with Gallatin, 326; + expresses friendly feelings, 335. + +Cazenove, ----, takes shares in Gallatin's land scheme, 361. + +Charles X., in Revolution of 1830, 370, 372. + +Chase, Salmon P., negotiations with Treasury Note Committee, 196 and + note; + follows Gallatin's treasury-note plan, 209; + organizes national banking system, 256. + +Chateaubriand, succeeds Montmorenci, 340; + negotiates unsuccessfully with Gallatin, 341; + quotes Gallatin's statement of Cuban question, 346. + +Cheriot, ----, takes share in Gallatin's land scheme, 361. + +Chesapeake, captured by Leopard, 224. + +Chevalier, Michel, his studies on money, 278. + +Cheves, Langdon, at free trade convention in 1831, 241. + +Chôteau, Pierre Louis, meets Gallatin, his influence over Indians, 287, + 374. + +Circourt, Count de, reviews Gallatin's "Synopsis of the Indian Tribes," + 378. + +Civil service, monopolized by Federalists, 280; + demands of Republicans for a share in, 281; + Gallatin's opinion of appointments to and conduct of, 281; + intention of Jefferson to give one half of, to Republicans, 282. + +Clare, Thomas, his house the headquarters of Gallatin in 1784, 22, 24; + rents Gallatin a house, 25. + +Clay, Henry, denounces Gallatin for advocating free trade, 242; + apologizes, 242; + on peace commission, 312; + arrives at Gottenburg, 313; + corresponds with Gallatin concerning place of negotiation, 314; + differs with Adams over Mississippi navigation and fisheries, 323; + joins Gallatin in England, 326; + urges Gallatin to accept mission to Panama Congress, 342; + letter of Gallatin to, on instructions as minister to England, 343; + tone of his diplomatic correspondence, 345; + Gallatin's opinion of, 356; + resignation of Gallatin in his favor, 358; + secures election of Adams, 358. + +Clinton, George, marriage of his daughter to Genet, 102. + +"Club, The," in New York, Gallatin's membership of, 366, 367. + +Coast survey, established, 290. + +Coinage, debate concerning, in Congress, 140; + regulated by Morris, 172. + +Coles, Edward, letter of Gallatin to, 284. + +Confederation, Articles of, political conditions under, 33, 34. + +Congress, adopts amendments to Constitution suggested by New York and + Virginia, 40; + passes excise law, 49; + modifies it, 52; + gives state courts jurisdiction in excise cases, 67; + receives tricolor from France, 130; + complained of by Jefferson as weak, 138; + suspends commercial intercourse with France, 151; + passes acts authorizing naval defense, 153; + presence of Washington, Pinckney, and Hamilton at, in 1798, 155; + speech of Adams to, 155; + responsibility for war thrown upon, by Madison, 205; + authorizes loan in 1812, 209, 212; + damages Treasury by procrastination, 212; + supports Gallatin's policy of extinguishing debt, 215; + repeals internal revenue act, 221; + passes embargo, 225; + extends terms of credit on revenue bonds, 226; + refuses to recharter the bank, 231, 254; + declares war, imposes increased duties, 234; + reimposes internal taxes, 236; + adopts non-importation against England and France, 292; + orders out naval force, 294; + repeals embargo, 294. + +Constable, John, at free trade convention in 1831, 241. + +Constellation, defeats La Vengeance, 160. + +Constitution of Pennsylvania, convention called to revise, 40, 41; + its membership and ability, 42, 43. + +Constitution of the United States, adopted, 35; + struggle over ratification in Pennsylvania, 35; + movement in favor of new convention to amend, 36-40; + amended, 40; + power of Representatives to appropriate, 109; + debate in Congress on relation of treaty power to House of + Representatives, 110-115; + argument of Washington on treaty power, 114, 115; + debate in House on relation of Executive to Congress, 142-147; + power of Senate to require treasury reports, 161; + in relation to state bills of credit, 257; + question of power of United States to acquire territory, 285; + in relation to National University, 291; + to annexation of Texas, 351. + +Cook, Edward, presides over meeting of whiskey insurgents at Parkinson's + Ferry, 79; + indorses resolution to submit to terms of United States commissioners, + 83. + +Cooper, Dr. Samuel, interested in Gallatin through Madame Pictet, 17. + +Couronne, ----, takes shares in Gallatin's land scheme, 361. + +Crawford, William H., follows Gallatin's treasury policy, 215; + at Gallatin's suggestion, urges Emperor + again to mediate, 315; + complains of Adams's pugnacity, 339; + wishes Gallatin to stand for Vice-President, 341; + looked upon by Gallatin as strongest leader after the triumvirate, + 355; + supported by Gallatin, Jefferson, and Madison against Adams, 356; + stricken with paralysis, 357; + nominated for President by caucus, 357; + defeated by Adams, 358. + +Cuba, avowed intention of United States to prevent English seizure of, + by war if necessary, 346. + +Cumberland Road, reported to Congress in 1807, 290. + + +Dallas, Alexander J., his career compared to that of Gallatin, 28, 58; + his parentage, 58; + secretary of state for Pennsylvania, 58; + friendship with Gallatin, 58; + excursion with Gallatin, 58, 59; + describes to Gallatin his experiences with militia in suppressing + Whiskey Rebellion, 92; + follows Gallatin's loan policy, 215; + regrets absence of internal taxes, 236; + proposes a national bank, 265; + resigns, 266. + +Dallas, Mrs. A. J., on excursion with her husband and Gallatin, 58, 59. + +Dallas, George M., accompanies Gallatin to Europe, 301; + sent to London, his instructions, 310; + informs Gallatin of English offer to treat directly, 311; + takes dispatch to Monroe, 318. + +Davis, Garrett, letter of Gallatin to, on manifest destiny, 352. + +Davis, Matthew L., quarrel between Jefferson and Burr over his + appointment, 282. + +Dawson, John, on Sedition Law, 162. + +Dayton, Jonathan, elected speaker of House by Democrats, 98; + anti-British in feeling, 104; + not influenced by connection with Burr, 104; + reëlected speaker, 132; + introduces resolution on Adams's message, 134; + joins Federalists after X Y Z affair, 149; + refuses to answer Gallatin, 153; + vote of thanks to, 158. + +Debt, public, payment by public lands urged by Gallatin, 122; + its permanence condemned by Gallatin, 126; + controversy between Gallatin and Smith as to increase of, 126; + attempt of Continental Congress to investigate, 171; + attempts of Morris to secure its funding, 172, 173; + funded by Hamilton, 174, 175; + increased under Wolcott, 178; + creation of domestic loans, 178; + Gallatin's subdivision of, 184, 185; + its extinction Gallatin's main desire, 186, 188, 198, 203, 208; + stated by Gallatin in 1801-2, 191; + plan for its discharging, 191; + actual reduction of, 192; + increased through Louisiana purchase, 192, 193, 195; + new funds, 195, 196; + funding of debt in 1807, 198; + statement regarding, in 1808, 202; + its increase during war foreseen by Gallatin, 203; + reduction in 1812, 205; + loan of 1812, 209; + declines below par, 210; + revives, 211; + loan of twenty-one millions, 212; + increase in 1816, 215; + Gallatin's policy toward, continued by Dallas and Crawford, 215; + eventually extinguished, 215, 269, 271; + absence regretted by Woodbury, 271. + +De Fersen, his correspondence proves guilt of Louis XVI., 57. + +De Lolme, ----, school companion of Gallatin, 5. + +Democratic party. See Republican party especially, 358-360. + +De Neuville, Hyde, French minister, demands dismissal of insolent + postmaster, 333; + negotiates commercial convention with Adams, 340. + +De Rham, ----, member of "The Club," 367. + +Dexter, Samuel, succeeds Wolcott in Treasury Department, 177; + consents to hold over until appointment of successor, 181. + +Diplomatic history, mission of Genet to United States, 57, 102; + Jay's treaty with England, 102, 103, 117; + Fauchet's dealings with Randolph, 103; + Wayne's treaty with Indians, 117; + Pinckney's treaty with Spain, 117; + expulsion of Pinckney from France, 132; + X Y Z affair and consequences, 149, 152, 153; + events leading up to war of 1812, 295; + offer of Russia to mediate, 299; + mission of Gallatin, Bayard, and Adams to Russia, 301, 303; + correspondence of Gallatin with Baring, 305-307, 309; + renewed offers by Russia, 308; + again refused by England, 311; + offer of England to treat directly, 311; + appointment of a new commission, 312; + place of negotiation, 314; + futile appeal of Lafayette to Emperor to mediate, 315, 316; + appointment of English commissioners, 316; + exorbitant English demands, 317; + suspension of negotiations, 318; + alteration of British tone, 319; + resumption of negotiations and refusal by Americans of English demands, + 319; + further English demands for cession of territory refused, 321; + discussion over boundaries, fisheries, and Mississippi navigation, 322, + 323; + these points abandoned, 323; + article against slave trade adopted, 323; + conclusion of treaty, 324; + part played by Gallatin, 324, 325; + commercial convention with England, 326, 327; + mission of Gallatin to France, 330-341; + negotiations over French captures under Berlin and Milan decrees, 332, + 333; + over an impudent postmaster, 333; + negotiations with Holland, 334; + commercial convention with England, 334, 335; + negotiations with France over Apollon case, 338; + commercial convention with France, 340; + failure to settle American claims, 341; + Gallatin's mission to England, 343-347; + instructions, 343; + negotiations with Canning, 345, 346; + conclusion of convention with Goderich's ministry, 347; + Ashburton treaty negotiations, 349, 350. + +Disunion, threatened in 1795, 116; + planned by New England in 1812, 213. + +Duane, William, intimate with Jefferson, 286; + abuses Gallatin in "Aurora," 286, 297; + appointed adjutant-general by Madison, 299. + +Duby, ----, takes shares in Gallatin's land scheme, 361. + +Dumont, Etienne, college friend of Gallatin, his subsequent career, 5; + Gallatin's opinion of, 5; + invited by Gallatin to come to America, 26; + on shape of Gallatin's head, 389. + +Du Ponceau, Peter Stephen, friend of Gallatin, his philological studies + upon Indians, 376, 377. + +D'Yvernois, proposes to transport University of Geneva to United States, + 291; + receives shares in Gallatin's land scheme, 362. + + +Edgar, James, on committee of whiskey insurgents to confer with United + States commissioners, 81; + supports Gallatin, 82; + presides over last meeting at Parkinson's Ferry, 89. + +Elliott, ----, on controversy between Wolcott and Gallatin, as to + surplus, 190, 191. + +Ellsworth, Oliver, on committee to consider Gallatin's eligibility to + Senate, 61. + +Embargo, opposed by Gallatin, 201; + its effect stated by him, 201, 202; + adopted as answer to Orders in Council, 225; + its enforcement or abandonment urged by Gallatin, 228, 229, 230, 291; + enforced, 292; + repealed, 294. + +Emlen, George, at free trade convention in 1831, 241. + +England, anger against, at time of Jay treaty, 103; + renews provision order, 103; + danger of war with, 116, 118, 120; + hard pressed by France in 1797, 139; + its friendship more dangerous than France's enmity, 163; + adopts Orders in Council, 201, 225; + commercial policy toward United States, 224, 225, 295; + danger of war with, 224, 229; + Madison's preference for, 295; + events leading up to war with, 295, 296; + mistaken view of Gallatin concerning its diplomacy, 304; + unwilling to tolerate Russian mediation, 304, 306, 311; + its policy explained by Baring, 306, 307; + offers to treat directly, 311; + willing to push on war after fall of Napoleon, 313, 316; + hopes to divide United States, 313; + appoints commissioners, 316; + makes exorbitant demands, 317; + its policy modified by Castlereagh, 319; + demands cession of territory, 321; + loses interest in war, 322; + rejects article on impressment, 322; + negotiation of convention with, in 1815, 334, 335; + at Congress of Aix-la-Chapelle, 337; + mission of Gallatin to, 343-347; + complains of tone of American diplomacy, 344, 345; + negotiations with, 345, 346; + agrees to renew commercial convention, 347; + refuses to negotiate on impressment, 347; + makes Ashburton treaty, 349, 350. + +Eppes, John W., letter of Gallatin to, on public lands, 239. + +Erskine, D. M., his negotiations, 295. + +Etsko, ----, Polish refugee, helped by Gallatin, 372. + +Eustis, William, advised by Gallatin concerning treaty with Netherlands, + 333, 334. + +Ewbank, ----, member of Ethnological Society, 379. + +Excise (see Whiskey Insurrection), recommended by Hamilton, 175. + + +Fauchet, his dealings with Randolph, 103; + condemned by Federalists, 134. + +Fayette County, settlement of Gallatin, 22, 26, 27; + life in, 28, 43, 67; + elects Gallatin to legislature, 44; + in Whiskey Insurrection, 49, 51, 52, 68, 78, 85, 96; + reëlects Gallatin, 93, 95; + visited by Lafayette, 365. + +Fazzi, ----, takes share in Gallatin's land scheme, 361. + +Federalist party, its origin, 57; + prejudiced against Gallatin by his resolution demanding information from + Hamilton, 64, 65; + opposes his election to Congress, 95; + reconstructs cabinet, 97, 98; + its leaders in House, 98, 99; + attitude toward France and England, 100, 101; + charged with being bribed by England, 103; + in debate on appropriating power, 108, 109; + in debate on treaty power, 111-115; + defends Jay treaty, 118; + strengthened in fourth Congress, 128; + retains nominal majority in fifth Congress, 133; + in debate on French relations, 134-136; + in debate on checks on executive, 143-147; + strengthened by X Y Z affair, 149; + commits mistakes, 151, 152; its badge, 153; + controls sixth Congress, 158; + refuses to repeal Sedition Law, 159; + defeated in 1800, 163; + forced to choose between Burr and Jefferson, 164; + bargain with Jefferson, 164; + its possible plans for defeating any choice, 165; + and for nominating a president pro tempore, 165; + allows Jefferson's election, 166, 167; + its share in building country, 169; + breach in, 177; + enjoys Republican inconsistency, 237; + monopolizes offices, 280; + extinguished by battle of New Orleans, 358. + +Few, William, connected by marriage with Gallatin, 59. + +Finances, efforts of Gallatin to secure minute supervision of by + Congress, 64, 106, 107; + efforts to establish permanent appropriations, 107; + appropriations, power of Congress over, 108, 109; + their necessity to successful government, 170; + finances of the Revolution under Morris, 170-174; + under treasury board, 173, 174; + under Hamilton, 174-176; + under Wolcott, 176-178; + under Gallatin, 186-215; + sketch of, by Gallatin, 184; + "View of," by Gallatin, 185; + preliminary sketch on Gallatin's assuming office, 186; + estimate of sources of wealth, 187; + estimate for 1801, 190; + denial of a surplus, 190, 191; + plan for discharging debt, 191, 192; + its execution, 192, 194; + report for 1803 on reduction of debt, 195; + Louisiana purchase, 193, 195; + place of payment of principal and interest, 195, 196; + addition to sinking fund, 196; + report for first four years, 197; + estimates of revenue for Jefferson's second term, 198; + conversion of debt, 198; + full treasury in 1807, 198; + Gallatin's consideration of military value of surplus, 199; + on war revenue, 200, 201; + effect of embargo, 201; + sources of revenue, 204; + deficiency in 1809, 204; + report of 1811, 205; + demand of Gallatin for internal revenue, 206; + war estimates, 206-209; + including "treasury notes," 207, 210; + loan of 1812, 209; + estimates for 1812, 210; + report for 1812, 211; + success of loan, 210, 211; + report of loan of twenty-one millions, 212; + stock not taken by New England and Southern States, 213; + saved by Parish, Girard, and Astor, 213, 214; + review of Gallatin's influence, 215-216; + table of revenue and expenditure, 217; + revenue established by Hamilton, 217; + its character, 218; + and amount, 219; + permanent estimate of, 220; + internal revenue retained by Gallatin, 220; + his proposed expenditures, 220; + repeal of internal revenue, 221; + increased income, 221; + establishment of Mediterranean fund, 222; + income during Jefferson's first term, 223; + increased estimates of Gallatin, 223; + internal improvements planned, 224; + doubling of duties recommended as a war measure, 225; + effect of embargo on revenue, 225, 227; + review of revenue during Jefferson's administrations, 226, 227; + surplus in 1808, 226; + internal improvements advocated by Jefferson, 226, 227; + estimates of receipts for 1809, 228; + report of Gallatin to Congress on need for new revenues, 229; + vagueness of Madison concerning, 229, 230; + report for 1809, 230; + refusal of Congress to re-charter bank, 231; + report for 1810, 231; + report of Gallatin in January, 1812, 232; + proposal to impose internal taxes, 234; + increased war duties, 234; + war budget for 1813, 235; + internal taxes, their history, 235; + reimposed by Congress, 236; + receipts from, 237; + public lands, receipts from, 238, 239; + administration of Treasury under + Gallatin, 244-246; + history of Bank of North America, 248-250; + of Bank of United States, 250-255; + panic of 1815, 262-264; + second United States Bank, 265-268; + resumption of specie payment, 267; + report of Gallatin on ratio of gold and silver, 268; + "Considerations on Currency and Banking," 268; + diminution of debt in 1832, 269; + removal of deposits from Bank of United States, 269, 270; + extinction of debt by Woodbury, 270, 271; + distribution of surplus among States, 271; + inflation in 1836, 272; + panic of 1837, 272, 273. + +Findley, James, in Pennsylvania Constitutional Convention, 43; + represents Fayette County in legislature, 44. + +Findley, William, describes Whiskey Insurrection, 71; + at Parkinson's Ferry meeting, 78; + describes Gallatin's speech, 83; + on threats of secession, 86; + takes resolutions to Washington urging him to stop march of troops, + 89; + describes seizure of prisoners, 90. + +Fish, Preserved, at free trade convention in 1831, 241. + +Fisheries, discussed in treaty of Ghent, 322, 323; + unfavorable settlement of question in 1818, 335. + +Florida, question of its annexation, 285. + +Forsyth, John, asks Gallatin's advice as to Smithson's bequest, 378. + +Fox, C. J., his precocity compared to Gallatin's, 32. + +France, sympathy of Republicans for, 116; + sends tricolor to Congress, 130; + its policy in Revolution, 131; + situation in 1796, 131; + endeavors to get aid of United States, 131; + determines to coerce it, 132; + refuses to receive Pinckney, 132; + policy of Adams toward, 137; + success in 1797, 139; + danger of war with, in 1798, 147; + question of war with, debated in Congress, 148-151; + non-intercourse with, 151, 159, 160; + adopts conciliatory measures, 160; + commercial convention with, 162; + adopts Milan decree, 229; + mission of Gallatin to, 331-341; + refuses to pay for seizures under Berlin and Milan decrees, 333; + urges peace with Spain, 336; + offers to mediate with United States between Spain and her colonies, + 336; + conduct at Congress of Aix-la-Chapelle, 337; + Apollon case, 338; + commercial convention with, 340; + fails to settle claims, 340, 341; + Revolution of 1830 in, 370, 371, 372. + +Franklin, Benjamin, gives Gallatin letter to Richard Bache, 11; + compared to Gallatin, 389. + +Frederick, Landgrave of Hesse-Cassel, friend of Madame Voltaire, 7; + sends her a portrait, 7; + sells troops to England in American war, 8; + called a tyrant by Gallatin, 8. + +Free trade, advocated by Gallatin, 240; + becomes a party question in 1832, 240; + convention in favor of, 241; + Gallatin's memorial in behalf of, 241, 242; + subsequent history of, 242, 243. + +French Revolution, premonitions of, in Europe, 6; + Gallatin's opinion of, in 1794, 56, 57; + its reaction on America, 57, 100; + attitude of parties toward, 101, 102; + its effect described by Gallatin, 327, 328. + + +Gallatin, Abraham, grandfather of Albert, 2; + lives at Pregny, 7; + friend of Voltaire, 7. + +Gallatin, Albert, his place in United States history, 1; + birth and ancestry, 2; + adopted by Mlle. Pictet, 2; + his schooling and home training, 2, 3; + benefits from cosmopolitan society of Geneva, 4; + academic friendships, 4, 5; + restless, although not ambitious, 5; + discontented with political conditions, 6; + visits Voltaire, 7, 8; + refuses offer of commission in Hessian service, 8; + quarrels with grandmother, 8; + plans to find freedom in America, 9, 10; + leaves Geneva secretly, 9; + plans to rise by land speculation and commerce, 10; + at Nantes receives letters from family, 10, 11; + relations with guardian, 11; + invests money in tea, 12; + voyage to Boston, 12; + finds difficulty in selling tea, 12; + finds Boston bigoted and unfriendly, 13; + his walk to Blue Hill, 13; + encounter with inquisitive landlord, 13, 14; + persuaded by Madame De Lesdernier, makes trading voyage to Machias, + 14; + frontier life there, 15, 16; + commands earthwork at Passamaquoddy, 16; + meets La Pérouse, 16; + returns to Boston and teaches French, 17; + recommended by Mlle. Pictet to Dr. Cooper, 17; + teaches French successfully in Harvard College, 17, 18; + glad to leave Boston at conclusion of war, 18; + visits New York, 18; + meets Savary, 19; + dissolves partnership with Serre, 19; + meets Pelatiah Webster at Philadelphia, 19; + accompanies Savary to Richmond, 19; + decides definitely not to return to Geneva, 20; + joins Savary in land speculations in West Virginia, 20, 21; + his aversion to debt, 21; + returns to Philadelphia and leads exploring party down Ohio, 21; + at George's Creek builds log-house and opens store, 22; + encounters Washington, 22; + declines Washington's offer to become land agent, 23; + enjoys a winter in Richmond society, 23; + his gratitude for hospitality and kindness, 24; + commissioned by Henry, locates lands in Western Virginia, 24; + interrupted by Indian troubles, 24; + takes oath of allegiance to Virginia, 25; + invites Badollet to join him from Geneva, 25, 26; + purchases Friendship Hill, 26; + rumor of his death causes inquiries from Geneva, 27; + attains majority and calls for property, 28; + difficulties of his life on frontier, 28; + not to be blamed for his choice of location, 28, 29; + offered place in office by Marshall, 29; + advised by Patrick Henry to begin in West, 29; + visits Richmond and Philadelphia, 29; + journey to Maine, 29, 30; + kindness towards Lesdernier, 30; + marries Sophie Allègre, her sudden death, 30; + disheartened, wishes to abandon Western lands, 30, 31; + his maturity in political thought, 32; + early an advocate of democracy, 32, 33; + probably dislikes the Federal Constitution, 34, 36; + an opponent of centralization, 34; + influences arguments of Smilie in Pennsylvania ratifying convention, + 36; + represents Fayette County at convention of anti-Federalists, 37; + friendship with Smilie, 38; + drafts resolutions providing for vigorous organization against + Constitution, 38, 39. + +_In Pennsylvania Constitutional Convention._ + Elected a delegate from Fayette County, 40; + his opposition to alteration of form of government, 41; + advocates enlarged popular representation, manhood suffrage, easy + naturalization, 42; + takes minor part in convention, his high opinion of its ability, 42, + 43; + after convention, falls into melancholy, 43; + wishes to leave America, 43; + reproached by Genevese friends with indolence, 43, 44. + +_In Pennsylvania Legislature._ + Elected to represent Fayette County, 44; + describes his legislative career, 45-47; + his influence and activity, 45; + advocates improved education, 45; + supports turnpike, 45; + gains reputation by report of Ways and Means Committee, 46; + advocates redemption of paper money and financial reform, 46; + reports a resolution for abolition of slavery, 47; + at first dislikes Philadelphia, later prefers it to New York for + democracy, 47, 48; + drafts resolutions condemning Hamilton's excise bill, 48; + takes part in public meeting in Washington County against the bill, 50; + secretary of convention of western counties at Pittsburgh, 52; + signs resolutions advocating resistance, 53; + draws petition to Congress, 53; + returns to Philadelphia to find cause damaged by action of counties, + 54; + advises evasion of federal writs to arrest, 55; + in legislature proposes a township veto on taxation and popular + education, 55; + wishes to visit Geneva in 1793, 56, 57; + views on French Revolution, 56, 57; + elected senator in spite of insufficient residence, 58; + acquaintance with Dallas, 58; + on journey with him, meets Hannah Nicholson, 59; + marriage, 59; + his family connections by marriage, 59; + later business connections with brother-in-law, J. W. Nicholson, 60; + takes seat as United States senator, 60; + his election protested on ground of insufficient residence, 60, 61; + complains of membership of committee to consider case, 61; + his exact status, 62; + submits statement of facts to Senate, 62; + is declared disqualified by narrow majority, 62, 63; + his dignified conduct of case, 63; + pending the decision, introduces resolution calling upon Hamilton to + make a minutely itemized report, 64; + probably causes his own expulsion by thus irritating Federalists, 64, + 65; + later obliged to answer a similar demand from Federalists, 65; + not cast down by exclusion, 65; + gains increased popularity in Pennsylvania, 65, 66. + +_In Whiskey Insurrection._ + Takes wife to Fayette County, 67; + at outbreak of violence advises distillers to submit to law, 69; + his estimate of numbers of insurgents in arms, 73; + remains at first aloof from excitement, 75; + determines to take control of movement, 75, 76; + alarmed at probable excesses of mob and danger of repression, 76; + delegate to convention at Parkinson's Ferry, 78; + confers with Marshall, 78; + chosen secretary, 79; + opposes resolution to resist by force, and moves reference of + resolutions to a committee, 80; + succeeds in modifying resolutions not to obey excise and trial laws, + 80; + on committee on resolutions, 80; + on committee to confer with government commissioners, 81; + points out folly of resistance, 81; + counsels submission, 81; + his eloquent speech, 82, 83; + prevents anarchy, 82; + charged by J. C. Hamilton with cowardice, 84; + his real courage, 84; + hastens submission of Fayette County, 85; + secures adoption of declaration defending county's action, 85; + secretary of meeting at Parkinson's Ferry, which makes complete + submission, 89; + considered by Federalists to be chief instigator of the insurrection, + 90; + describes conversation with Dallas, 92; + again chosen to legislature and also to Congress, 93; + his election to Assembly contested and declared void, 93, 94; + in his speech during debate admits error of his course, 94; + urges Badollet to secure reëlection of all Western assemblymen, 95; + re-elected to legislature, 95; + witness before grand jury in trial of prisoners, 96; + draws petition to Washington for pardon of offenders, 96; + his loyalty to constituents, 96. + +_Member of Congress._ + Moves appointment of committee on finance to control Treasury, 106; + appointed upon it, 106; + wishes to put appropriations on permanent footing, 107, 108; + refuses to devote military funds to establishing Indian trading posts, + 108; + opposes habit of appropriating without debate, even to objects already + approved, 109; + supports resolutions calling for papers in Jay treaty, 110; + upholds power of House of Representatives, 111, 112; + denies that treaties override discretion of House, 112, 113; + appointed to carry call to Washington, 114; + claims right of House to participate in treaties, 114; + stands beside Madison as leader of debate, 115; + insists on separate consideration of treaties, 118; + objects to Federalists' threats of war with England, 118, 119; + complains of abandonment of "free ships" principle in Jay's treaty, + 119; + low opinion of Indians, 122; + urges resistance to impressment, 122; + suggests plan for advantageous sale of public lands, 122; + and their use to pay debt, 122; + views on taxation, 123; + opposes military establishment and navy, 123, 124; + laments necessity of payment to United States Bank, 124; + attacked for participation in Whiskey Insurrection, 124; + makes no reply, 125; + criticises conduct of Treasury Department, 125; + opposes principle of a national debt, 125; + asserts a great increase in public debt, 126; + defends assertion against W. Smith, 126; + objects to adjournment to pay respects to Washington on birthday, 126; + recognized as leader of opposition by Federalists, 127; + does not expect or desire renomination, 127; + reëlected to Congress, 127; + becomes leader of Republicans in House, 128; + wishes House to compliment Washington personally on his retirement, + but not his administration, 129; + describes Andrew Jackson's appearance, 129 n.; + insists on payment of indebtedness of States to government, 129; + chairman of conference committee, 129; + opposes army and navy expenditure, 129, 130; + secures passage of bill confining treasury expenditures, 130; + in sympathy and confidence of Jefferson, 133; + deprecates debating foreign relations, 134; + wishes to treat France like other nations, 134; + opposes threatening France, 135; + joins moderate Republicans in voting with Federalists for address to + President, 136; + opposes appropriation for defense, 137; + objects to employment of frigates, 137; + favors defense of ports and harbors only, 137; + opposes salt duty, 137; + and excessive loans, 137; + points out method of impeachment in Blount case, 138; + describes his desire for moderation, 138; + calls Federalists aristocrats, 139; + votes against presenting answer to message in person, 140; + now acknowledged leader of Republicans, 140; + presents anti-slavery petitions from Pennsylvania, 140; + his opinion of use of foreign coins, 140; + estimate of specie in United States, 141; + opposes proposal to expel Lyon, 141; + on executive power of appointment, 142; + wishes to abandon foreign political intercourse, 143; + upholds power of House to check executive through appropriations, 143; + makes elaborate speech on checks of legislature on executive, 144-146; + and on necessity of abstention from European politics, 145; + practical drawbacks to his theory, 147; + his speech circulated by party, 147; + opposes war measures against France, 148; + supports call for papers of envoys to France, 148; + presents petition against authorizing private citizens to arm vessels, + 149; + opposes bill to authorize President to arm convoys, 149; + prefers submission to French outrages rather than war, 150, 151; + attacked by Allen of Connecticut, his reply, 150, 151; + opposes non-intercourse with France, 151; + declares Sedition Bill unconstitutional, 152; + high words with Harper over Alien Bill, 152; + taunted by Harper, 152; + opposes declaration of state of relations by Congress, 153; + votes against abrogating treaty with France, 154; + continues to harass Wolcott in the Treasury, 154; + his even temper, 154; + opposes bill to punish correspondence with foreign princes, 155, 156; + opposes bill to incite French West Indies to revolt, 156, 157; + opposes authorization of President to suspend commerce in certain + cases, 157; + opposes building ships of the line, 157; + tries to defeat or ameliorate Alien and Sedition Laws, 157, 158; + aided in sixth Congress by Nicholas and Macon, 159; + votes with Federalists to suspend commercial intercourse with France, + 159; + opposes proposal to amend Foreign Intercourse Act, 160, 161; + opposes bill requiring report from secretary of treasury, because + originating in Senate, 161; + opposes continuance of non-intercourse, 162; + his position in presidential contest in 1800, 164; + irritated by influence of S. Smith over Jefferson and Madison, 164; + reasons that attempt of Federalists to defeat an election by the House + is constitutional, 164, 165; + but any president pro tempore would be unconstitutional, 165; + suggests course of action for Republicans, 165; + probably expects to use violence against Federalists, 166; + review of his congressional career, 167; + leader of party, yet not a partisan, 167, 168; + one of Republican triumvirate, 168; + his departure leaves party without a legislative leader, 168. + +_Secretary of the Treasury: Funding._ + His place as financier in United States history, 170; + Jefferson's choice for secretary of treasury, 178, 179; + hated by Federalists in Senate, 178; + assigned to Treasury by public opinion, 179; + doubts his abilities and chances of confirmation by Senate, 180; + plans to move to New York, 180; + refuses to accept until confirmed by Senate, 181; + finally agrees to serve, 181; + brings family to Washington and enters on duties, 181, 182; + his thoroughness, 182; + exhausts himself by his energy, 182; + sketch of his financial career in Pennsylvania and in Congress, 183, + 184; + his one principle the extinguishment of debt, 184; + publishes sketch of the finances in 1796, 184; + publishes in July, 1800, "Views of Public Debt," etc., 184, 185; + ability of these essays, 185; + outlines policy of expenditures and receipts to Jefferson, 186; + endeavors to systematize treasury statements, 186; + points out economic reasons for increase of revenue, 187; + urges specific appropriations by Congress and absence of departmental + discretion, 187; + urges reduction, both of debt and of taxes, 188; + unable to work with other departments because of Jefferson's habits, + 188; + lack of elasticity in his plans, 189; + embarrassed by complications in department, 189; + his first report to Congress, 190; + denies existence of any surplus, 190; + explains plan for extinction of debt by 1817, 191; + given authority by Congress, 192; + table showing success of his measures, 192; + in spite of Louisiana purchase, reduces debt by one third, 192, 194; + dissatisfied with financial terms of Louisiana purchase, 193; + novelty of his distinction between place of payment of interest and + principal, 195; + arranges that Louisiana debt shall not retard payment of old debt, 196, + 197; + his report of 1805, 107; + proposes funding of outstanding obligations in 1807, 198; + reports a full Treasury on occasion of threatened war with England, + 198; + discusses application of surplus to war expenses, 199; + suggests methods of war taxation, 200; + prefers war to embargo, 201; + draws the embargo bill, 201; + discusses its financial effect, 201, 202; + confident attitude as to war loans, 202; + his policy supported by Jefferson, 203; + realizes that war will prevent reduction of debt, 203, 204; + relies on customs, tonnage dues, and land sales for revenue, 204; + reports deficiency owing to embargo, 204; + forced to borrow, 204; + reviews situation in 1811 with satisfaction, 205, 206; + asks for increase of revenue in case of war, 206; + proposes war loans, 207; + and interest-bearing treasury notes, 207; + insists on actual increased receipts, not apparent measures, 207, 208; + on necessity of upholding credit, 209; + receives authority from Congress, 209; + submits war budget, 209, 210; + his last annual statement in 1812, 211; + reports need of new loans, 212; + his personal friends, Parish, Girard, and Astor, save government credit, + 213, 214; + fails to negotiate loan at par, 214; + failure of his hopes to extinguish debt, 215; + his policy vindicated by successors, 215; + charged with sacrificing defenses of country to reduction of debt, 216; + attempted defense of his course by "Democratic Review," 216; + his determination to follow financial principles and not a partisan + course, 216, 218; + does not invent new sources of revenue, 218; + his estimates follow those of Hamilton, 219; + estimates permanent revenue, 220; + unable to abandon internal revenue, 220; + does not protest against its abolition by Congress, 221; + does not alter estimates in spite of increase of revenue, 221; + proposes additional tax to meet war with Tripoli, 222; + applies surplus as far as possible to Louisiana purchase, 222; + political effect of his success during Jefferson's first term, 223; + in 1805 raises estimate of permanent revenue, 223; + impresses economy upon other departments, 223; + prepares scheme of internal improvements, 224; + after Chesapeake affair recommends borrowing, 224; + and doubling duties in case of war, 225; + receipts during his second term, 226; + his warning of diminished resources in future ignored by Jefferson, + 226; + estimates for 1809, 228; + points out necessity of submitting to war or loss of foreign trade, + 228, 229; + promises not to use internal taxes, 229; + reports diminished income and deficiency in 1809, 230; + declares for a strict enforcement or abandonment of embargo, 230; + disgusted at refusal of Congress to recharter United States Bank, 231; + tenders resignation to Madison, 231; + obliged to remain for lack of possible successor, 231; + continues to advocate increased customs, 232; + points out that, had his recommendations been followed in 1809, there + would have been a large surplus, 232, 233; + forces Congress to choose between a bank or internal taxes, 233, 234; + himself proposes internal taxes, 234; + his last report predicts deficiency and asks a loan, 235; + his recommendations of internal taxes disregarded, 235; + his previous use of Hamilton's internal taxes, 235; + his suggestions followed in 1813, 236; + connection with sale of public lands, 238; + unable fully to utilize this resource, 239; + earliest public advocate of free trade, 240; + later in career becomes leader of cause, 241; + his part in convention of 1831, 241; + draws memorial to Congress, 242; + his views followed in tariff of 1846, 242; + opposed to protection, 242; + violently attacked by Clay, who apologizes, 242; + introduces reforms in annual report, 245; + tries to induce Congress and departments to adopt scheme of minute + appropriations, 245, 246; + carries system into his own household, 246; + effects of his methods, 247; + on Jefferson's dislike of banks, 251; + his report of 1809 on Hamilton's bank, 252, 253; + suggests its renewal, with modifications, 253, 254; + his testimony as to its value, 255, 256; + estimate as to state banks in 1811, 258; + describes hostility of Astor to bank, 259; + left, by failure to renew bank charter, at mercy of capitalists, 260; + his opinion that absence of bank caused suspension of specie payments + in 1815, 262; + on Jefferson's proposal to issue paper money, 264; + his success a vindication of Federalist finance, 266; + opinion of services of second national bank, 266; + declines offer of secretaryship in 1816, 266, 267; + urges Madison to restore specie payment, 267; + declines position as president of Bank of United States in 1822, 268; + prepares statement of relative value of gold and silver, 268; + writes "Considerations on Currency and Banking," 268; + advocates use of specie and limited use of paper money, 268; + accepts presidency of National Bank of New York, 269; + his opinion of Jackson, 270; + his bank involved in panic of 1837, 272; + conducts resumption, 273; + chairman of committee of banks, 273; + submits reports, 275; + declines presidency of Bank of Commerce, 276; + resigns presidency of National Bank, 277; + publishes "Suggestions on Banks and Currency," 277; + condemns paper money, 277; + declines offer of Treasury Department from Tyler, 278; + in the cabinet, agrees with Republican leaders on all points except + bank, 279, 280; + prepares circular announcing disregard of party in appointments, 281; + and condemning political influence of officials, 281; + his policy opposed by Jefferson, 282; + obliged to follow cabinet in policy of partisan appointments, 282; + advises early preparation for campaign of 1804, 283; + wishes States divided into election districts, 283; + criticises annual messages of Jefferson, 283; + his proposal to appoint a woman to office condemned by Jefferson, 283; + suggests in vain regular cabinet consultations, 283, 284; + urges payment of tribute to Tripoli rather than war, 284; + opinion asked on points of constitutional law, 284; + holds inherent right of United States to acquire territory, 285; + disapproves of Texas annexation, 285; + advises Jefferson concerning Louisiana treaty, 285, 286; + attacked by Duane, for not turning out Federalists, 286; + absence of favoritism in his appointments, 286, 287; + supervises sale of lands, 287; + acquaintance with Chôteau, 278; + drafts promise of protection for Astor's fur trade, 288; + opposes vainly Jefferson's gunboat scheme, 289; + submits plan of defense against England, 289; + urges moderate tone in message, 290; + devises scheme of internal improvements, 290; + doubts success of a National University, 291; + opposes a permanent embargo, 291; + prepares Campbell's report urging resistance, 292; + receives authority from Congress to enforce non-intercourse, 293; + favors war, 293; + submits "Notes on Political Situation," 294; + opposes ordering out naval force in favor of letters of marque, 294; + his appointment as secretary of state prevented by Republican + opponents in Senate, 294, 295; + continues to advise Madison, 295; + his measures meet opposition in Senate, 295; + deserted by Madison in his attempt to secure re-chartering of bank, + 296; + tenders resignation, 296; + bitterly attacked in "Aurora," 297; + accused of dominating Madison and of corruption, 297, 298; + considered by Jefferson ablest man in administration except Madison, + 298; + unable to command support in Congress, submits to war policy, 298, + 299; + asks leave of absence and appointment as minister to Russia, 299; + attempts made to alienate him from Jefferson and Madison, 299; + his high regard for Jefferson, 300; + continued good terms with Madison, 300. + +_Minister to Russia; Treaty of Ghent._ + His voyage with Bayard, 301; + visits Gottenburg and Copenhagen, 301; + at St. Petersburg meets J. Q. Adams, 302; + his knowledge of history, 302; + lack of diplomatic experience as compared with Adams, 302; + contrast in character with Adams, 303; + considers peace necessary because of inefficiency in conduct of war, + 303; + abandons his former opposition to a navy, 303; + low opinion of English diplomacy, 304; + view of necessity of an English renunciation of impressment, 305; + writes to Barings, 305; + receives Baring's reply, 306, 307; + explains case to Romanzoff, 307; + assured by Moreau of imperial sympathy, 308; + warned by him of England's purposes, 308; + writes to Monroe asking instructions, 308, 309; + informs Baring of inability to negotiate except through Russia, 309; + writes to Moreau, 309, 310; + instructs Dallas as to duties in London, 310; + receives news of refusal of Senate to confirm his nomination, 310; + contemplates visit to London, 311; + hears that British government proposes to treat directly, 311; + unable to return home, 312; + journey to Amsterdam, 312; + not at first included in second commission, but later added, 312; + visits London, 313; + learns of arrival of Clay and Russell, 313; + urges Lafayette to mediate, 313; + wishes to change place of negotiation from Gottenburg, 314; + urges Crawford to secure interposition of emperor, 315; + receives letter from Lafayette through Humboldt, promising aid, 315; + makes official appeal to emperor, 315; + learns of refusal of England to admit intervention, 316; + warns Monroe of English preparations, 316; + visits Paris, 316; + meets British commissioners at Ghent, 316; + notifies Monroe of determination of England to dismember United States + and attack New Orleans, 317, 318; + despairs of peace, 318; + draws reply of commissioners rejecting British demands, 319; + explains reasons for willingness to discuss Indian article, 319, 320; + condemns burning of public buildings at Washington, 320; + expresses confidence in American securities, 320; + has difficulty in mediating between Clay and Adams on fisheries and + Mississippi navigation, 322, 323; + proposes engagement to abandon use of savages in future war, 323; + the credit of treaty due to him, 324; + his diplomatic skill, 324; + wins European admiration, 325; + visits Geneva, 325, 326; + sees Napoleon during Hundred Days, 326; + appointed minister to France, 326; + with Clay and Adams negotiates commercial convention, 326, 327; + friendly attitude of Castlereagh toward, 326; + on value of abolition of discriminating duties, 327; + returns to New York, 327; + withholds acceptance of French mission, 327; + describes to Jefferson European opinion of United States, 327; + describes condition of France after Revolution, 327, 328; + does not consider republican form of government suitable everywhere, + 328; + weary of politics, declines nomination to Congress, 329; + declines French mission on ground of poverty, 329; + finally yields to Monroe's requests, 329; + refuses offer of Treasury Department, his reasons, 330; + rejoicings of Jefferson over his appointment, 331. + +_Minister to France._ + Received by Richelieu, 331; + discusses American sympathy for Bonaparte, 331, 332; + received by Louis XVIII., 332; + familiar relations with royal family, 332; + negotiates for indemnity for seizures, 332; + annoyed by French demand for dismissal of a disrespectful American + postmaster, 333; + advises Adams and Eustis in negotiations, 333; + returns to Paris, 334; + with Rush conducts negotiations with England, 334, 335; + tries to explain Jackson's occupation of Pensacola, 336; + refuses to mediate with France between Spain and revolted colonies, + 336; + points out disadvantages of war with Spain, 337; + succeeds in pacifying French indignation at seizure of Apollon, 338; + does not adopt Adams's line of defense, 338; + Adams's opinion of, in diary, 338, 339; + his opinion of Adams, 329; + continues to negotiate with regard to commerce, 340; + loath to return without success, 340; + criticises Adams's terms of French treaty as unfavorable, but advises + signing, 340; + fails to secure satisfaction and returns to America, 341; + settles at Friendship Hill, 341; + pressed by Monroe to return to France, 341, 342; + declines mission to Panama Congress, 342. + +_Minister to England._ + Appointed envoy and minister, with liberty to return on completion of + negotiations, 342, 343; + secures modification of instructions, 343; + complains of peremptory character of instructions, 344; + his voyage, 344; + dislike of English and French diplomacy, 344; + learns of English resentment at tone of American ministers, 344, 345; + negotiates with Canning, 345; + asks for instructions as to renewal of convention of 1815, 345; + pleased with ability of Lawrence as _chargé d'affaires_, 346; + his threat of war quoted by Chateaubriand, 346; + warned by Adams to yield nothing, 346; + concludes negotiation with Goderich, 347; + thinks Canning meant to discuss impressment, 247; + returns to America, congratulated by Adams, 348; + his social life in London, 348; + ready to accept French mission in 1834, 349; + prepares argument in Northeastern boundary arbitration, 349; + publishes an account of facts in the case, 349; + visited by Ashburton, 350; + publishes pamphlet on Oregon question, 351; + presides at meeting to protest against annexation of Texas, 351; + condemns Mexican war, 352; + publishes pamphlet concerning it, 352; + condemns "manifest destiny" talk, 352, 353. + +_Republican Leader._ + His opinion of contemporary political leaders, 355, 356; + prefers Crawford to Adams, 356; + requests Macon to take + part in caucus for Crawford, 356; + thinks universal suffrage compensates for dangers of consolidation, 356; + accepts reluctantly nomination for vice-president, 357; + dislikes formality of nomination, 357; + withdraws to help ticket, 358; + considers the election to prove decease of Republican party, 359; + condemns Jackson's violations of law, 359; + favors an insignificant or weak executive, 359; + visits Washington in 1829, notes disappearance of old régime, 330. + +_Society, Literature, Science._ + His land speculations not profitable, 351; + plans Genevese Colonization Association, 361; + loses money through Morris's failure, 362; + speculates in Virginia military lands, 362; + estimates value of estates, 362, 363; + ill at ease in general society, 363; + his establishment at Washington described by Irving, 363; + house burned by British, 364; + builds at Friendship Hill, finds it lonely in winter, 364; + visited by Lafayette in 1825, 364, 365; + settles permanently in New York, 365; + frequent changes of residence, 365; + devotes last years to scientific studies, 366; + conversational ability, 366; + chosen member of "The Club," 366, 367; + leads conversation, 367; + described by Irving, 368; + wishes to establish free university in New York, 368; + presides over council of New York University, 369; + resigns, owing to clerical opposition, 370; + continued interest in French politics, 370; + letter of Lafayette to, on marriage of his daughter, 371; + assists Polish refugees, 372; + interested in Indian customs, 373, 374; + writes for Humboldt a synopsis of Indian tribes, 374; + publishes Indian vocabularies, 375; + issues circulars inviting information, 375; + correspondence with individuals, 375, 376; + republishes Synopsis, 377; + scientific character of his results, 377, 378; + his advice requested concerning Smithson's bequest, 378; + its publications submitted to him, 378, 379; + founds American Ethnological Society, 379; + defrays cost of publishing its transactions, 379; + essay on nations of Mexico and Central America, 380; + authorizes General Scott to purchase documents in Mexico, 380; + writes introduction to Hale's "Indians of Northwest America," 380; + gathers information regarding gold in America for Humboldt, 381; + describes his reasons for success, 381; + his caution in reasoning, 382; + fails to establish a literary periodical, 382; + chosen president of New York Historical Society, 382; + his inaugural address on course of United States History, 382-384; + opinion of Washington, 383, 384; + friendly greeting to Adams in 1844, 384; + eulogized by Adams, 384, 385; + his party career contrasted with that of Adams, 385; + personal appearance and portraits, 385, 386; + crushed by loss of wife, 387; + death, 387; + eulogized by Bradish before Historical Society, 388; + acknowledges indebtedness to Bentham, 388; + his brain, 389; + summary of character and services, 389. + +_Characteristics._ + General estimates, 1, 388, 389; + unfriendly views of, 90, 297, 338; + his own estimate, 381; + ambition, 5, 10, 58, 127, 180, 328; + business ability, 28, 60, 361, 362; + cosmopolitanism, 7, 389; + courage, 75, 76, 84; + debt, aversion to, 21; + diplomatic ability, 303, 324, 325, 330, 345; + financial ability, 45, 179, 185, 215; + friendliness, 24, 30, 300, 372; + geography, love of, 16; + history, love of, 3, 302; + indolence, 43; + leadership, 128, 133, 159, 167, 357; + literary interest, 382; + maturity, early, 31; + partisanship, 140, 147, 167; + personal appearance, 385, 386, 389; + political shrewdness, 76, 95, 128, 357; + social habits, 44, 348, 363, 367, 368; + temper, evenness of, 65, 152, 154, 303, 324; + thoroughness, 182, 381. + +_Political Opinions._ + Alien Bill, 152, 158; + appointments to office, 281, 282, 286, 359; + army, 108, 123, 129, 180, 303; + Bank of United States, 231, 252-256, 262, 266, 296; + banking, 256, 268, 273, 277; + cabinet, 188, 222, 245, 283; + coinage, 140, 268; + Congress, powers of, 109, 110, 112, 143, 144, 153, 161; + constitution of Pennsylvania, 41, 42; + debt, public, 45, 125, 126, 191, 203, 205, 208, 222, 269; + democracy, 6, 8, 10, 33, 34, 42, 48, 55, 126, 389; + education, 45, 291, 368-370; + election of 1800, 164-166; + embargo, 201, 206, 230, 291; + England, diplomacy of, 304, 344; + England, policy toward, 228, 292, 310, 327, 337, 343-347; + ethnology, 373-381; + excise, 53, 80; executive, 144-146, 359; + Federalist party, 119, 129, 139, 140, 164, 179; + financial measures of Hamilton, 184, 185; + foreign correspondence bill, 155; + foreign ministers, 142, 143, 145, 147; + France, diplomacy of, 304, 344; + France, policy toward, 134, 135, 148, 149, 157, 159, 167, 310, 332, + 333, 338, 340; + free trade, 240-243; + French Revolution, 56, 76, 139, 328; + gunboat scheme, 289; + impeachment, 138; + Indians, 108, 122, 320, 323, 373-381; + internal improvements, 45, 224, 290; + Jacksonian democracy, 359; + Jay treaty, 119, 136; + manifest destiny, 352; + Mexican war, 352; + military matters, 137, 289; + money, relation to wealth, 260; + navy, 123, 124, 130, 137, 186, 303; + northeastern boundary, 347-349; + northwest boundary, 343, 347, 351; + panic of 1815, 262; + paper money, 46, 207, 264, 267, 268; + party management, 38, 41, 95, 128, 164, 359; + peace, 149, 150, 167, 284; + public lands, 46, 122, 238, 239; + Republican party, 355, 359; + revenue, internal, 221, 233, 234; + revenue, sources of, 187, 223, 232; + Sedition Act, 152, 158, 159; + slavery, 47, 140; + Spain, policy toward, 336, 337; + suffrage, 42; + surplus, use of, 206, 216; + taxation, 123, 199, 200; + Texas annexation, 351; + territory, constitutional power to acquire, 285; + Treasury, administration of, 64, 106-108, 125, 130, 154, 189, 205, + 208, 217, 245-247; + treaty of Ghent, 317, 318, 319, 323; + treaty power, 114; + United States, history of, 382, 383; + war of 1812, 320; + war finances, 190, 200, 203, 207, 208, 222, 224, 229, 232, 234, 298; + Whiskey Insurrection, 94. + +Gallatin family, 2; + prominence in Geneva, 2; + military reputation, 2; + interest in all its members, 8; + on oligarchic side in Genevese politics, 10; + alarmed at report of Gallatin's death, 27; + visited by Gallatin in 1814, 326; + claims Roman descent, 386 n. + +Gallatin, Frances, marries B. K. Stevens, 371; + Lafayette's letter of congratulation to, 371; + considered "a beauty" at French court, 372. + +Gallatin, James, accompanies his father to Europe, 301. + +Gallatin, Jean, father of Albert Gallatin, 2; + his death, 2. + +Gallatin, P. M., guardian of Albert, 10; + his kindness on Gallatin's departure for America, 11; + promises to aid him, and forwards letters of recommendation, 11. + +Gallatin, Susanne Vaudenet, grandmother of Gallatin, her character, 7; + friend of Frederick of Hesse-Cassel and of Voltaire, 7; + controlling spirit of family, 8; + quarrels with Albert over his refusal of a Hessian commission, 8. + +Gambier, Lord, on English peace commission, 316. + +Gardner, John L., at free-trade convention, 241. + +Genet, Edmond C., effect of his intemperance on parties, 57; + marries daughter of George Clinton, 102; + aids Democratic societies, 102; + condemned by Federalists, 134. + +Geneva, place of Gallatin family in, 2; + education in, 2, 3; + religious spirit of, 3; + a resort of foreigners, 4; + political situation in, 6, 7, 10; + parties in, 10; + revolutions in, 20, 361; + government of, 33; + visited by Gallatin, 325, 326; + colonization from, planned by Gallatin, 361. + +Geneva Academy, studies of Gallati in, 2, 3; + his friends at, 4, 5. + +Germans, in Pennsylvania, oppose improvement of education, 45. + +Gerry, Elbridge, on French mission, 139; + remains to negotiate loan, 152. + +Gibbs, ----, member of Ethnological Society, 379. + +Gilbert, Ezekiel, on Committee on Finance, 107. + +Giles, William B., Republican leader in debate, his character, 100, 133; + bitterly opposes address to Washington, 128, 129; + in debate on relations with France, 135; + loses leadership to Gallatin, 140. + +Gilman, Nicholas, on Committee on Finance, 106. + +Girard, Stephen, assists Gallatin to float loan, 213, 214; + his reasons, 259. + +Goderich, Lord, renews convention of 1815 with Gallatin, 347. + +Goldberg, ----, Dutch commissioner to make commercial treaty, 334. + +Goodhue, Jonathan, at free-trade convention of 1831, 241. + +Goodhue, ----, member of "The Club," 367. + +Goodrich, Chauncy, in Congress, 99; + in debate on foreign relations, 143; + on resolution to punish foreign correspondence, 156. + +Goulburn, Henry, on English peace commission, 316; + informed of American request for instructions, 318; + told by Castlereagh and Liverpool to moderate his demands, 319; + protests against acceptance of Indian article, 321. + +Grenville, Lord, sends Fauchet letter to Washington, 103; + connection with Jay treaty, 117, 350; + his proposition to Pinckney, 134. + +Griswold, Roger, attacks Gallatin's account of sinking fund, 65; + leader of Federalists in House, 98, 133; + replies to Gallatin in debate on treaty power, 113; + his collision with Lyon, 141; + on doctrine of checks, 143; + on bill to punish foreign correspondence, 156; + on Senate bill to require annual financial reports, 161. + +Gunboats, Jefferson's scheme for, 288; + origin of his idea, 288; + opposed by Gallatin, 289. + +Gurney, ----, in Pennsylvania legislature, 183. + + +Hale, ----, introduction to his work on Indians written by Gallatin, + 380. + +Hamilton, Alexander, his career compared to that of Gallatin, 28, 32; + amends excise law, 52; + demands punishment of Pittsburgh leaders of opposition, 53, 54; + drafts proclamation against them, 54; + attacked by Gallatin in Senate, 64; + deprecates demand for minute information, 64, 65; + submits plan for crushing insurgents, 76, 77; + impatient at delay, writes as "Tully" advocating punishment, 87; + accompanies army to Pittsburgh, 88; + investigates insurrection, 90; + fails to find indictment against Gallatin, 90; + dissuades troops from violence, 92; + resigns from Treasury, 97; + continues to lead party, 99; + stoned in defending Jay treaty, 103; + letters of Wolcott to, complaining of Republican opposition, 126, 154; + attends Congress as general, 155; + his influence on government, 168, 169; + review of his career in the Treasury, + 174-176; + his place in history, 176; + his enmity to Gallatin, 179; + attacks of Gallatin upon his system, 184, 185; + his revenue system maintained by Gallatin, 218, 234; + and reënacted by Democrats in 1813, 235; + his report on public lands, 237, 238; + his organization of Treasury Department, 243; + his financial reports, 245; + on Bank of North America, 249; + his report on national bank, 250, 251. + +Hamilton, J. C., accuses Gallatin of cowardice in Whiskey Rebellion, 84. + +Harper, Robert Goodloe, leader of Federalists in House, 98, 133; + denounces call for Jay treaty papers as unconstitutional, 111, 112; + closes argument on Federalist side, 114; + recognizes Gallatin as leader of Republicans, 115; + in debate on relations with France, 134, 135; + called a "bungler" by Gallatin, 140; + moves appropriation for foreign intercourse, 141; + his share in debate, 142, 146; + introduces bill to suspend intercourse with France, 151; + altercation with Gallatin over Alien Bill, 152; + on resolution to furnish foreign correspondence, 156; + on Senate bill to require annual financial reports, 161. + +Harvard College, gives Gallatin permission to teach French, 17; + his connection with, 18; + gives Gallatin certificate, 18. + +Hassler, Ferdinand Rudolph, superintendent of coast survey, 290. + +Hawks, ----, member of Ethnological Society, 379. + +Henry, Patrick, recommends Gallatin to county surveyor and commissions + him to locate lands, 24; + advises Gallatin to go West, predicts success, 29. + +Henry, Prof. Joseph, letter of Gallatin to, on Squier and Davis's + "Ancient Monuments," 379. + +Hillhouse, James, Federalist in Congress, 99; + on committee on finance, 107. + +Holland, vain attempt to sign commercial treaty with, 334; + arbitrates northeast boundary, 347, 349; + its decision rejected, 349. + +House of Representatives, leaders of, in 1795, 98-100; + debate in, over conduct of Washington's administration, 104-106; + appoints Committee on Finance, 106, 107; + debate in, on principle of appropriations, 108, 109; + motion of Livingston to call for papers in Jay treaty brings on debate + on treaty power, 109-114; + asserts right to withhold appropriations, 115; + considers foreign treaties separately, 118; + debates Jay treaty, 118-121; + votes to carry treaty into effect, 121; + but condemns it, 121; + refuses to adjourn on Washington's birthday, 126; + adopts address complimentary to Washington, 129; + new members in fifth Congress, 132; + debates President's message on relations with France, 133-136; + votes to support administration, 136; + considers measures of defense, 137; + impeaches Blount, 138; + entertained by Adams, 140; + encounter in, between Lyon and Griswold, 141; + debate in, on foreign missions, 141, 142; + on relation of executive to Congress, 142-147; + rejects amendment to abolish foreign missions, 147; + debates war with France, 148; + requests President to furnish correspondence of envoys to France, 148; + receives X Y Z dispatches, 149; + altercation in, between Gallatin and Allen, 150; + passes Alien Bill, 152; + message of Adams to, on resumption of diplomatic intercourse + with France, 152; passes bill abrogating treaty with France, 154; + debates and passes bill to punish foreign correspondence, 155, 156; + debates and passes bills to favor French West Indies, and punish Spanish + and Dutch ports, 156, 157; + refuses to repeal Sedition Act, 157; + new members in sixth Congress, 158; + replies to President's address, 158; + refuses to repeal Sedition Law, 159; + passes bill to suspend intercourse with France, 159, 160; + votes a medal to Truxton, 160; + refuses to amend Foreign Intercourse Act, 160, 161; + debates and passes Senate bill to require annual Treasury reports, 161; + refuses to continue non-intercourse, 162; + again rejects bill to amend Sedition Act, 162; + part played by Gallatin in, 167, 168; + investigates Wolcott's management of Treasury, 177. + +Howell, Richard, leads New Jersey militia against Whiskey Rebellion, 88. + +Humboldt, Baron Alexander von, aided in study of precious metals in + America by Gallatin, 278, 374, 381; + brings Lafayette's letter to Gallatin, 315; + meets Gallatin in Washington, 315; + speaks of Gallatin's "glory," 325; + letter to Gallatin, 381. + +Husbands, Herman, on committee on resolutions of Parkinson's Ferry + meeting, 80. + +Huskisson, William, on impressment, 347. + + +Impressment, Gallatin's opinion of, 122; + its abandonment by England insisted on by Monroe, 305; + refused consideration by England, 322, 327, 335, 347. + +Indians, relations of Gallatin with, at Machias, 15; + trading posts with, opposed by Gallatin, 108; + Wayne's treaty with, 117, 118; + danger of war with, in 1795, 120, 121; + Gallatin's opinion of, 122; + influence of Chôteau over, 287; + fur trade of Astor with, 288; + proposals of England concerning, in treaty of Ghent, 317, 319, 321; + studies of Gallatin concerning, 373-378; + the Canadian Indians, 373; + tribes of, classified by Jefferson, 374; + "Synopsis of Indian Tribes" by Gallatin, 374; + vocabularies collected by Gallatin, 375, 376; + studies of Du Ponceau concerning, 377; + republication of Gallatin's "Synopsis," 377; + his essay on Indian civilization, 380; + his introduction to Hale's work on, 380. + +Ingham, Samuel D., report of Gallatin to, on gold and silver, 268. + +Internal improvements, Gallatin's scheme for, 224, 290; + urged by Jefferson, 226, 227, 290; + inconsistency of Jefferson, 227. + +Irish, petition against Sedition Act, 157. + +Irving, Washington, describes Mrs. Gallatin's manners and appearance, + 363, 364; + describes Gallatin in old age, 368. + + +Jackson, Andrew, votes against complimentary address to Washington, 129; + his appearance described by Gallatin, 129 n.; + orders removal of deposits, 270; + Gallatin's opinion of, 270, 355; + occupies Pensacola, 336; + refuses to appoint Gallatin to French mission, 349; + candidate for president in 1824, 358; + defeated for president by Adams, 358; + his idea of party, 359; + Gallatin's opinion of, 359; + character of his presidency, 360. + +Jackson, F. J., his mission to United States, 295. + +Jay, John, asked by Jefferson for information concerning Gallatin, 27; + drafts letter for New York Convention calling for a new convention, + 37 n.; + burnt in effigy after his treaty, 103; + his purpose in making treaty, 117; + said by Sheffield to have duped Grenville, 117; + his warning remark to Randolph during negotiations, 118; + attacked by Gallatin, 119. + +Jay, William, member of "The Club," 366. + +Jay treaty, ratified, 102; + made public by Mason, 103; + popular dissatisfaction with, 103, 116; + sent to House, 109; + condemned in England, 117; + debate over, 118-121. + +Jefferson, Thomas, in behalf of Gallatin family writes to Jay for + information concerning Albert Gallatin, 27; + countersigns Washington's proclamation against excise rioters, 54; + retires from cabinet, 97, 99; + rupture with Hamilton, 99; + imbued with French principles, 102; + ridiculed as a sans-culotte, 104; + influence complained of by Wolcott, 127; + tries to moderate bitterness of Republicans, 128; + Gallatin known to be in his confidence, 133; + complains of weakness of Congress, 138; + unable to influence Senate, 139; + loses taste for French alliance, 139; + thinks Sedition Bill aimed at Gallatin, 152; + praises Gallatin's courage, 158; + receives tie vote with Burr, 163; + probably makes bargain with Federalists, 164; + his inexplicable submission to Smith, 164; + elected, 167; + in triumvirate with Madison and Gallatin, 168; + represents social equality, 169; + his suggestions on coinage, 172; + urges Gallatin to accept Treasury Department, 178-180; + letter to Macon, 182; + suggestions of Gallatin to, on financial policy, 186; + not a practical statesman, 188; + does not consult cabinet as a whole, 188; + letters of Gallatin to, on finances, 189, 193, 201, 203, 216; + summons Congress to ratify Louisiana purchase, 195; + reëlection helped by finances and Louisiana treaty, 197, 198, 223; + urges Gallatin to retain post until extinction of debt, 203; + wishes reduction of army and navy, 220; + advocates application of surplus to internal improvement, 226; + in so doing abandons his principles, 227; + detests bank, 233, 251, 280; + proposes impracticable economies in Treasury Department, 244; + suggests issue of paper money, 264; + an abandonment of republican principles, 266; + introduces new principles of administration into government, 279; + opposes Gallatin's civil service circular, 281; + proposes to fill one half of offices with partisans, 282; + submits draft of annual message to cabinet, 283; + objects to appointing a woman to office, 283; + lack of system in his cabinet, 284; + does not consult Gallatin on military matters, 284; + agrees with Gallatin's view on acquisition of territory, 285 + advised by Gallatin concerning Louisiana treaty, 285; + unfortunate in choice of political methods, 286; + friendly with Duane, 286; + promises to protect Astor, 288; + his gunboat scheme, 288, 289; + origin of his views on gunboats, 288; + his plan of internal improvements, 290; + recommends national university, 291; + wishes amendments to Constitution, 291; + advised by Gallatin not to rely on "general welfare" clause of + Constitution, 291; + shirks responsibility of decision with regard to English policy, 291, + 292; + urged by Gallatin to enforce non-intercourse, 293; + calls Gallatin ablest man in administration except Madison, 298; + regard of Gallatin for, 300; + his love for Gallatin, 300; + letters of Gallatin to, on reputation of United States in Europe, 327; + on France, 327, 328; + letter of Gallatin to, on difficulty of withdrawal from public service, + 329; + rejoices in Gallatin's acceptance of French mission, 331; + his opinion of Louis XVIII., 331; + relations with de Tracy, 331; + supports Crawford for presidency, 356; + favors state rights, 356; + does not appreciate decay of his party, 358; + on non-sectarian education, 369; + his remarks on Indians in "Notes on Virginia," 374; + on Washington's strong passions, 383 n. + +Johannot, ----, educated at Geneva, 4, 17. + +Johnston, ----, member of "The Club," 366. + +Jones, William, secretary of navy, 312. + + +Kent, Chancellor James, member of "The Club," 366. + +King, Charles, member of "The Club," 367. + +King, Rufus, resigns mission to England, 342; + tone of his correspondence, 345. + +Kinloch, Francis, educated at Geneva, 4; + letter to, given by Mlle. Pictet to Gallatin, 11. + +Kirkpatrick, Major, defends United States marshal in Whiskey + Insurrection, 68; + his farm burnt by rioters, 73. + +Kittera, Thomas, moves hostile amendment to pro-French resolution, 135. + +Knox, Henry, resigns from War Department, 97. + +Kosciusko, his nephew helped by Gallatin, 372. + +Kramer brothers, in business with Gallatin, 60. + + +Lands, public, in Pennsylvania, 46; + suggestions of Gallatin as to improved methods of sale, 122, 123; + how acquired, 237; + sales under Hamilton and successors, 238; + organization of sales by Gallatin, 238, 239, 287. + +Land speculation, in Virginia, 20, 21, 24, 361; + in Ohio, 362. + +Lafayette, Marquis de, his motives for aiding colonies, 9; + his imprisonment, 102; + saved by gunboats in 1781, 288, 289, 371; + urged by Gallatin to help mediate between England and United States, + 313; + urges emperor of Russia to exert personal influence with England, 315; + sends letter to Gallatin, 315; + letter of Gallatin to, on French government, 328; + visits Pennsylvania, 364; + entertained by Lafayette at Friendship Hill, 365; + his part in Revolution of 1830, 370, 371, 372; + interested in marriage of Gallatin's daughter, 371; + letter to Gallatin, 371, 372. + +La Pérouse, meets Gallatin at Machias, 16; + later meets him in Boston, 16. + +Laurens, John, educated at Geneva, 4. + +La Vengeance, captured by Constellation, 160. + +Lawrence, William B., gives anecdote of Washington and Gallatin, 22; + accompanies Gallatin to England, 344; + his ability as secretary, 346; + presides at anniversary meeting of New York Historical Society, 384. + +Lee, Henry, commands militia against Whiskey Rebellion, 88; + requires oath of allegiance, 89; + orders seizure of leaders, 90. + +Lee, Thomas, founder of Ohio company, 20. + +Legislature of Pennsylvania, calls Constitutional Convention, 40; + Gallatin's career in, 45-47, 55, 60; + rejects bill to improve education, 45; + discharges paper money and other debt, 46; + elects Gallatin senator, 47, 58; + adopts resolutions condemning excise, 48, 49; + protests against authorizing vessels to arm, 149; + divides electoral vote between Adams and Jefferson, 163; + Gallatin's financial report to, 183, 184; + offers to take two millions of United States bonds, 214; + interferes to regulate Bank of North America, 250; + charters Bank of United States, 271. + +Leopard, captures Chesapeake, 224. + +Lesdernier, M. de, flies from Nova Scotia to Machias, 14; + welcomes Gallatin, 14; + on good terms with Indians, 16; + attempt of Gallatin to obtain a pension for, 30; + letter of Gallatin to, 154; + introduces Gallatin to Indians, 373. + +Lesdernier, Madame de, persuades Gallatin to visit Machias, 14. + +Lieven, Count, Russian minister at London, 308; + his friendship with Gallatin, 348. + +Lincoln, Levi, views on unconstitutionality of acquiring territory, 285. + +Livermore, E. S., on committee to consider Gallatin's eligibility to + Senate, 61. + +Liverpool, Lord, advised by Castlereagh to moderate his demands, 319; + does so for fear of healing American dissensions, 319; + accepts settlement of Indian question, 321; + resolves to prosecute war vigorously, 321; + abandons claim to territory and admits defeats, 322; + letter of Castlereagh to, 326; + death, 347. + +Livingston, Edward, prominent Republican in Congress, 100; + his precocity, 100; + calls for instructions for Jay, 109, 110; + votes against complimentary address to Washington, 129; + attacks Adams's foreign policy, 135, 136; + presents petitions against Alien and Sedition Laws, 157. + +Livingston, Robert R., arranges terms of Louisiana purchase, 193. + +Lorillard, Jacob, at free trade convention, 1831, 241. + +Loring, Captain, takes Gallatin to America, 11. + +Louis XVI., executed, 56. + +Louis XVIII., Jefferson's opinion of, 331; + gives audience to Gallatin, 332; + his intimacy with Gallatin and his sarcasm, 332. + +Louisiana, financial effect of its purchase, 192, 193, 195, 196, 222; + effect of its acquisition on England, 224; + constitutional question involved, 285, 286; + occupation of, arranged by Gallatin, 286, 287. + +Lynn, Mary, keeps boarding-house in Philadelphia, 19. + +Lyon, Matthew, his collision with Griswold, 141; + defended by Gallatin, 141. + + +Machias, expedition of Gallatin to, 14, 15; + life at, 15, 16, 17. + +Macon, Nathanael, votes against complimentary address to Washington, + 129; + aids Gallatin in sixth Congress, 159; + moves repeal of Sedition Law, 159; + opposes non-intercourse with France, 159, 160; + letter of Jefferson to, 182; + letter to Nicholson, 293; + tries to pass Navigation Act against English and French decrees, 296; + on decay of democratic principles in 1824, 356, 358. + +Madison, James, secures adoption of ten amendments, 40; + abandons Federalists through Jefferson's influence, 99; + leads Republicans in House, 100; + weakness in debate, 100; + drafts address to Washington, 105; + on Committee on Finance, 106; + advocates bill to establish trading posts with Indians, 108; + moves to amend call for Jay papers, 111; + interprets treaty power + in Constitution in Jay treaty debate, 113, 115; + attacks Jay treaty, 118; + influence complained of by Wolcott, 127; + not reëlected to Congress, 133; + his inexplicable submission to Smith, 164; + in triumvirate with Jefferson and Gallatin, 168; + his weakness as financier, 179; + summons Congress, 205; + anxious to evade responsibility for peace or war, 205; + communications on finance from Gallatin, 212, 259; + his indecision as to financial situation, 230; + does not accept Gallatin's resignation, 231; + realizes indispensableness of Gallatin to him, 231; + agrees with Gallatin as to minute appropriations, 245; + vetoes bill to incorporate national bank, 265; + signs a second bill, 265; + his inconsistency, 266; + urged by Gallatin to restore specie payment, 267; + opposes Gallatin's civil service circular, 281; + not superior on constitutional points to Gallatin, 284; + refuses to support Astor's plans, 288; + consults with Gallatin on inaugural address, 294; + forced by senators to abandon plan to make Gallatin secretary of + state, 294, 295; + unable to control party, 295; + favors England as against France, 295; + fails to support Gallatin, his inexcusable weakness, 296; + compelled to choose between Smith and Gallatin, 297; + efforts of Duane to poison his mind against Gallatin, 297; + not qualified to be a war president, 298, 299; + sends Gallatin on Russian mission with leave of absence, 299; + appoints Duane adjutant-general, 299; + continues on good terms with Gallatin, 300; + accepts English offer of direct negotiation, 312; + appoints a new commission, 312; + intends Gallatin for head of commission, 312; + names Gallatin minister to France, 326; + thanked by Gallatin, 327; + leaves him at liberty to decide, 329; + offers Gallatin secretaryship of treasury, 330; + favors Crawford for presidency, 356. + +Malesherbes, C. G. de L. de, his courage compared to that of Gallatin, + 84. + +"Manifest Destiny," Gallatin's opinion of, 352, 353. + +Marie Antoinette, executed, 56. + +Marshall, James, represents Fayette County in anti-excise proceedings, + 51, 52, 69; + joins Bradford in calling out militia, 70; + his resolutions at Parkinson's Ferry meeting disapproved by Gallatin, + 78, 79; + withdraws them, 80; + on committee to confer with United States commissioners, 81. + +Marshall, John, offers Gallatin a place in his office, 29; + on French mission, 139, 152; + elected to Congress, 158; + announces death of Washington, 158; + draws reply to Adams's address, 158. + +Mason, S. T., makes Jay treaty public, 103. + +Mathews, Rev. Mr., member of "The Club," 367. + +Mayer, member of Ethnological Society, 379. + +McClanachan, Blair, chairman of anti-Federalist Conference, 38; + his ultra-democratic remarks to Adams, 138. + +McDuffie, George, estimates profits of bankers on state bank circulation, + 263. + +McKean, Thomas, in Pennsylvania Constitutional Convention, 43; + suggests sending a commission to confer with Whiskey insurgents, 77; + asked to prevent civil war in 1800, 166. + +McLane, Louis, reports extinction of national debt, 269. + +McVickar, ----, member of "The Club," 366. + +Mexico, war with, Gallatin's opinion of, 352. + +Middleton, Henry, at free trade convention of 1831, 241. + +Mifflin, Thomas, in Pennsylvania Constitutional Convention, 43; + deprecates use of force against Whiskey Rebellion, 77; + summons legislature and obtains authority to employ militia, 88; + succeeds by personal influence in filling ranks, 88. + +Mirabeau, Vicomte de, friend of Dumont, 5. + +Mississippi navigation, discussed in treaty of Ghent, 322, 323; + in 1818, 335. + +Mitchell, S. L., on committee to consider Gallatin's eligibility to + Senate, 61. + +Monroe, James, presents flag to French Convention, 132; + arranges terms of Louisiana purchase, 193; + supplants Smith as secretary of state, 296, 298; + on necessity of renunciation of impressment in treaty of peace, 305; + asked by Gallatin for further instructions, 308; + receives proposals from England for direct negotiation, 311; + asked by commissioners for authority to treat in any place, 314; + warned by Gallatin of English war plans, 316, 317, 318; + communications of Gallatin to, during negotiations, 319; + urges Gallatin not to withdraw from public service, 329; + appoints Adams secretary of state, 334; + gives Gallatin leave of absence, 341; + urges him to return to France, 341. + +Montgomery, John, connected by marriage with Gallatin, 59, 60. + +Montmorenci, Vicomte, negotiates with Gallatin, 340; + succeeded by Chateaubriand, 340. + +Moore, ----, member of "The Club," 366. + +Moreau, General Jean Victor, career in America and France, 308; + assures Gallatin of emperor's friendliness and warns him of British + obstinacy, 308; + reply of Gallatin, 309; + his death, 310, 311. + +Morgan, Daniel, leads militia against Whiskey Rebellion, 88, 93. + +Morris, Gouverneur, snubbed by Washington for familiarity, 23; + his precocity compared to Gallatin's, 32; + suggests decimal system, 172. + +Morris, Robert, receives drafts for Gallatin, 28; + in United States Senate announces intention of neutrality on question + of Gallatin's eligibility, 61; + but votes against it, 63 n.; + his rank as financier, 170-173; + plans Bank of North America, 248, 249; + buys land of Gallatin, 361; + settles with Gallatin, 362; + fails and is imprisoned, 362. + +Morse, ----, member of "The Club," 367. + +Morton, Dr., member of Ethnological Society, 379. + +Muhlenberg, Frederick A., defeated for speaker by Dayton, 98; + gives casting vote in favor of Jay treaty appropriations, 121. + +Müller, Johann von, teaches Gallatin history, 3. + +Murray, William Vans, prominent Federalist in House, 99; + on finance committee, 106; + denies discretionary power of House over Jay treaty, 110. + + +Navy, opposed by Gallatin, 123, 124, 130, 137, 157, 186, 188; + his course defended, 216; + gunboat scheme, 288, 289. + +Nesselrode, Count, leaves Russian foreign affairs in charge of + Romanzoff, 304; + inability of Crawford to secure audience with, 315. + +New England, supports Adams in 1800, 163; + refuses to support popular loan, 212, 213; + plans disunion, 213; + hoards specie, 260, 261; + opposes embargo, 293; + its secession hoped for by England, 313. + +New York, calls for a second Federal Convention, 36, 37; + Republican in 1800, 163. + +New York city, first visit of Gallatin to, 18; + abandoned by Congress for Philadelphia, 47; + protests against Jay treaty, 103; + settlement of Gallatin in, 365, 366; + social life in, 366-368; + attempt of Gallatin to establish a university in, 368, 369. + +New York Historical Society, presidency of Gallatin, 382; + his inaugural address to, 382-384; + celebration of its fortieth anniversary, 384; + honors Gallatin's memory, 388. + +Nicholas, John, Republican leader in + House, 100; + on treaty power, 111; + supports Gallatin in advocating specific appropriations, 130; + moves amendment to Adams's message, 134; + in debate on French relations, 135; + desires to limit executive through power over appropriations, 143; + aids Gallatin in sixth Congress, 159; + opposes non-intercourse with France, 159; + resists supposed encroachment of Senate on House, 161; + confers with Jefferson and Gallatin on election of 1800, 164. + +Nicholson family, connected by marriage with Gallatin, 59. + +Nicholson, Hannah, marries Gallatin, 59; + described by him, 59; + her relations to her husband, 59; + letters of Gallatin to, 138, 180; + unhappy in Fayette County, 180; + her property, 363; + unfit for frontier life, 363; + her success in Washington society, 363, 364; + her death, 386, 387. + +Nicholson, Commodore James, father-in-law of Gallatin, his family, 59; + visited by Gallatin after marriage, 60; + on Gallatin's political moderation, 138; + commands gunboats in Lafayette's campaign of 1781, 371. + +Nicholson, James Witter, in business with Gallatin, 60. + +Nicholson, Joseph H., letter of Gallatin to, on war revenue, 224; + furnished by Gallatin with questions to ask himself, 246; + letter of Macon to, 293. + +Non-importation, difficulty of enforcement in 1774, 293; + enforced by Gallatin in 1808, 293. + +Norris, Isaac W., at free trade convention, 241. + + +Odier, ----, takes shares in Gallatin's land scheme, 361. + +Ohio Company, its formation and lands, 20. + +Oregon question, discussion over, in 1818, 335; + discussed in 1826, 343; + determination of Adams not to give way in, 346; + joint occupation of, continued, 347; + views of Gallatin on, 351. + +Otis, Harrison Gray, elected to Congress, 132; + denounces Gallatin for attacking Federalist administration, 136; + on resolution to punish foreign correspondence, 156; + reports investigation of Wolcott's management of Treasury, 177. + + +Panama Congress, its importance, 342; + mission to, declined by Gallatin, 342. + +Paper money, its issue suggested by Jefferson, 264; + Gallatin's opinion of, 268, 277. + +Parish, David, assists Gallatin to float loan, 213, 214; + his reasons, 259, 260. + +Parker, Josiah, amends resolution to punish foreign correspondence, 156; + offers resolution to amend non-intercourse, 160. + +Pasquier, M., negotiates with Gallatin, 337; + pacified by Gallatin after seizure of Apollon, 338. + +Patton, John, on Committee on Finance, 107. + +Peabody, George, at free trade convention of 1831, 241. + +Pendleton Society of Virginia, adopts secession resolutions, 116. + +Penn, John, letter to, given Gallatin by Lady Penn, 11. + +Penn, Lady Juliana, gives Gallatin letter to John Penn, 11. + +Penns, proprietors of Pennsylvania, educated at Geneva, 4. + +Pennsylvania, ratifies federal Constitution, 35; + movement in, to call a second convention, 37-40; + education in, efforts of Gallatin to improve, 45; + opposition to excise in, 48-55; + Whiskey Rebellion in, 67-96; + popularity of Gallatin in, 65; + its law regarding slavery, 140; + petitions against Alien and Sedition Acts, 157. + +Pensacola, its seizure by Jackson, 336. + +Philadelphia, visit of Gallatin to, 19, 21; + removal of Congress to, 47; + society in, 47, 48; + angry feeling in, against Whiskey Insurrection, 92; + protests against Jay treaty, 103; + petitions legislature to repeal charter of Bank of North America, 250; + nominates Gallatin for Congress, 329. + +Pickering, Timothy, in Pennsylvania Constitutional Convention, 43; + secretary of war and postmaster-general under Washington, 97. + +Pickering, ---- member of Ethnological Society, 379. + +Pictet, Mademoiselle, adopts Gallatin, her kindness, 2; + her nephew taught by Gallatin, 5; + regard of Gallatin for, 9; + pained at Gallatin's departure, 11; + gives him letter to Kinloch, 11; + sends him money and secures interest of Dr. Cooper, 17; + his ingratitude toward, regretted by Gallatin, 20; + supposes his failure to write due to misfortune, 27; + accuses Gallatin of indolence and ennui, 43, 44. + +Pictet, ----, naturalist, relative of Gallatin, 5. + +Pinckney, Charles C., refused reception as minister by France, 132; + on second mission, 139; + returns, 152; + attends Congress as general, 155. + +Pinckney, Thomas, makes treaty with Spain, 117. + +Pitt, William, his precocity compared to Gallatin's, 32. + +Poles, in New York, befriended by Gallatin, 372. + +Powell, William H., his portrait of Gallatin, 386. + +Preston, William C., at free trade convention in 1831, 241. + + +Quakers, in Pennsylvania, oppose general education, 45; + petition against seizure of fugitive slaves, 140. + + +Randolph, Edmund, deprecates force against Whiskey Rebellion, on ground + that only Washington's influence prevents civil war, 77; + retires from cabinet, 97; + damages reputation by dealings with Fauchet, 103; + remark of Jay to, during negotiations with England, 118. + +Randolph, John, elected to Congress, 158; + opposes non-intercourse with France, 159; + opposes giving a gold medal to Truxton, 160; + advocates abolition of internal duties, 221; + complains of want of system in Jefferson's cabinet, 284; + on Madison's weakness, 295; + unfitted to lead a party, 355. + +Renwick, James, letter of Mrs. Irving to, on Mrs. Gallatin, 364; + member of "The Club," 366. + +Republican party, its origin, 57; + its leaders in House of Representatives in 1795, 99, 100; + its attitude toward France and Revolution, 101, 102; + imitates Jacobins, 102; + opposes resolution complimenting Washington's administration, 104-106; + attacks administration of Treasury, 106; + asserts right of House to share in treaty power, 110-114; + leadership of Gallatin in, 115, 128, 133, 159; + attacks Jay treaty, 118-121; + objects to adjournment on Washington's birthday, 126; + attacks Washington, 128; + reluctant to affront France, 133-136; + opposes increase of foreign missions, 141-147; + attacks Alien and Sedition Laws, 159; + profits by popular dislike of England and of Alien and Sedition Laws, + 163; + gives equal vote to Jefferson and Burr, 163; + its policy to resist any Federalist usurpation by force, 166; + success due to Gallatin's leadership, 167, 168; + its share in building country, 169; + opposes internal revenue, 221; + its principles violated by Jefferson in suggesting internal + improvements, 227; + refuses to renew charter of bank, 231, 254; + violates principles in chartering second bank, 265; + introduces new principles of administration into government, 279; + demands share of offices, 281, 282; + refuses to confirm Gallatin for secretary of state, 294; + factions in, under Madison, 295; + incompetent to manage war, 298; + lacks leaders after Gallatin, 355; + its condition in 1824, 356; + its caucus nominates Crawford and Gallatin, 357, 358; + new developments of, under Jackson, 358, 359, 360. + +Revenue, 218-238. See Finances. + +Richelieu, Duc de, seeks explanation from Gallatin of American sympathy + for Bonaparte, 331; + declares impossibility of making full compensation for captures under + Berlin and Milan decrees, 332; + angered at American refusal to dismiss an impudent postmaster, 333; + on Jackson's seizure of Pensacola, 336; + urges peace with Spain, 336. + +Richmond, society in, 23, 24. + +Robinson, Dr., associate of Gallatin in founding American Ethnological + Society, 379. + +Rochefoucauld, D'Enville, Duc de, obtains letters for Gallatin from + Franklin, 11. + +Rollaz, Sophie Albertine, mother of Gallatin, 2; + assumes husband's share in business, 2; + death, 2. + +Romanzoff, Count, originates plan of Russian mediation, 304; + dealings of Gallatin with, 307; + renews offer of mediation, 308; + gives Dallas letter to Count Lieven, 310; + thanked by Gallatin, 312. + +Ross, James, appeals to Whiskey insurgents not to use violence, 70; + on commission to confer with insurgents, 85. + +Rousseau, J. J., Gallatin's opinion of, 6. + +Ruggles, Benjamin, letter of Gallatin to, accepting nomination for + vice-president, 358. + +Rush, Richard, introduced to public life by Gallatin, 334; + named minister to England, 334; + joined with Gallatin to negotiate concerning convention of 1815, 334, + 335; + secretary of Treasury, 342; + tone of his correspondence, 345. + +Russell, Jonathan, on peace commission, 312; + arrives at Gottenburg, 313. + +Russia, offers to mediate between England and United States, 299; + mission of Gallatin and Bayard to, 299, 301-312; + refusal of England to accept its mediation, 306, 307; + dealings of Gallatin with Romanzoff, 307, 308; + renews its offer, 308, 315; + displeased with recognition of Spanish colonies, 337. + +Rutherford, John, on committee to consider Gallatin's eligibility to + Senate, 61. + +Rutledge, John, Jr., elected to Congress, 133. + + +Savary de Valcoulon, has claims against Virginia, 19; + meets Gallatin at Philadelphia and uses him as interpreter, 19; + goes with Gallatin to Richmond, 19; + interests him in land speculation, 21; + joins Gallatin in locating claims, 24. + +Schoolcraft, Henry R., member of Ethnological Society, 379. + +Scott, General Winfield, requested by Gallatin to aid in collecting + ethnological data in Mexico, 380. + +Scott, Thomas, appeals to Whiskey insurgents, 70. + +Sedgwick, Theodore, leader of Federalists in House, 98; + on committee to draft address to Washington, 105; + on Committee on Finance, 106; + offers resolution to execute four treaties, 118; + taunts Gallatin with instigating Whiskey Rebellion, 124; + elected speaker, 158; + at free trade convention of 1831, 241. + +Sedition Law, condemned by Gallatin, 152; + petitions against, 157. + +Senate of United States, election of Gallatin to, 58; + appoints committees to consider his eligibility, 61, 62; + votes to exclude him, 62, 63; + prejudiced against him by his actions, 64, 65; + ratifies Jay treaty, 102, 103; + yields to House regarding specific appropriations, 130; + controlled by Federalists, 139; + passes bill authorizing convoys, 149; + passes bill abrogating treaty with France, 154; + amends House Bill to suspend intercourse with France, 160; + debate over its bill to require annual treasury reports, 161; + ratifies commercial convention with France, 162; + still controlled by Federalists, 178; + its hostility to Gallatin, 181; + refuses to confirm his appointment as peace commissioner, 310. + +Seney, Joshua, connected by marriage with Gallatin, 59. + +Serre, Henri, friendship with Gallatin, 5; + sails with him for America, 9; + doings in Boston with Gallatin, 12-14; + at Machias, 14; + enjoys life in wilderness, 15, 17; + returns to Boston, 17; + teaches there, 19; + joins Gallatin and dissolves partnership, 19; + goes to Jamaica and dies, 19; + his debt subsequently paid, 19; + his letters to Badollet, 25. + +Sewall, Samuel, elected to Congress, 132. + +Shays's Rebellion, an argument for Federalist party, 101. + +Sheffield, Lord, says Jay duped Grenville, 117. + +Sherman, John, on accounting in Treasury Department, 247. + +Sismondi, J. C. L. Simonde de, on paper money, 277; + praises Gallatin, 325; + letter of Gallatin to, 380. + +Sitgreaves, Samuel, Federalist in Congress, 99; + on committee to draft address to Washington, 105. + +Slavery, resolutions concerning, in Pennsylvania legislature, 47; + petitions concerning, in Congress, 140; + negotiations concerning slave trade in treaty of Ghent, 323; + at Congress of Aix la Chapelle, 337. + +Smilie, John, represents Fayette County in Pennsylvania ratification + convention, 35; + leads opposition to Constitution, 36; + in anti-Federalist convention, 37; + his career and friendship with Gallatin, 37, 38; + in Pennsylvania Constitutional Convention, 43; + member of state Senate, 44, 54; + at anti-excise convention, 52; + advises submission to law, 69. + +Smith, Isaac, on Committee on Finance, 107. + +Smith, John Augustine, invites Gallatin to join "The Club," 366. + +Smith, Robert, head of faction of "invisibles," 295; + leaves cabinet, 296, 297. + +Smith, Samuel, leads Maryland troops against Whiskey Insurrection, 88; + moves to continue non-intercourse, 162; + probably makes bargain to secure election of Jefferson, 164; + his inexplicable power over Jefferson and Madison, 164. + +Smith, William, educated at Geneva, 4; + Federalist in Congress, 99; + on Committee on Finance, 106; + controversy with Gallatin over increase of public debt, 126. + +Smithson, John, his bequest to United States, 378. + +Smithsonian Institution, connection of Gallatin with, 378, 379. + +Southern States, Republican in 1800, 163; + refuse to support loan of 1813, 213. + +Spain, Pinckney's treaty with, 117; + danger of war with, 335; + peace with, urged by France, 336; + negotiations over its revolted colonies, 336, 337; + rupture with France in 1823, 341. + +Spurzheim, on Gallatin's brain, 389. + +Squier, E. G., member of Ethnological Society, 379. + +Staël, Madame de, interview of Lafayette with emperor at her house, 315; + letter of Gallatin to, 320; + expresses admiration for Gallatin, 325. + +Stephens, ----, member of Ethnological Society, 379. + +Stevens, Byam Kerby, marries Frances Gallatin, 371; + interest of Lafayette in, 371; + meets Lafayette, 372. + +Stevens, Colonel Ebenezer, Lafayette's chief of staff, 371. + +Stevens, John A., at free trade convention of 1831, 241; + member of "The Club," 367. + +Stokely, ----, appeals to Whiskey insurgents, 70. + +Stuart, Gilbert, his portrait of Gallatin, 386. + +Swanwick, John, on Jay treaty debate, 111. + +Szelesegynski, ----, Polish refugee, helped by Gallatin, 372. + + +Tahon, ----, keeps French café in Boston, 12. + +Talleyrand, Prince, demands bribe in X Y Z affair, 149; + makes overtures for reconciliation, 152, 153. + +Taney, Roger B., removes deposits from bank, 269, 270; + appointed chief justice, 270; + his reasons for the removal, 270. + +Texas, annexation of, protested against by Gallatin, 351. + +Throop, Governor, recommends University for training teachers, 369. + +Tracy, Destutt, his "Economie Politique" translated by Jefferson, 331. + +Tracy, Uriah, leader of Federalists in House, 98; + taunts Gallatin with connection with Whiskey Rebellion, 119; + obliged to apologize, 120. + +Treasury Department, Hamilton's management of, attacked by Gallatin, 64; + resigned by Hamilton, taken by Wolcott, 97; + management of, supervised by Committee of Finance, 106-108, 130; + condition of, deplored by Gallatin, 125; + charged with arbitrary action, 130, 154; + annual reports from, required by Congress, 161; + Morris's connection with, 171-173; + organization under Hamilton, 174, 243; + management by Wolcott, 176-178; + appointment of Gallatin to, 179, 181; + exalted idea of, held by Gallatin, 189; + difficulty of learning management of, 189, 190; + relieved of responsibility for other departments' expenditure, 223; + administration of, by Gallatin, 244-246; + reports from, 245; + efforts of Gallatin to secure precision in, 245, 246; + subsequent management of, 247; + damaged by failure to re-charter bank, 259; + in panic of 1815, 263; + declined by Gallatin in 1816, 266, 330; + in panic of 1837, 272-276; + sub-treasury system invented, 273; + aids resumption, 276; + declined by Gallatin in 1843, 278; + absence of partisanship in Gallatin's appointments to, 281, 282, 286, + 287. + +Treaty of Ghent, 316-325. See Diplomatic History. + +Tripoli, war with, 222; + tribute to, preferred by Gallatin to war with, 284. + +Trist, N. P., negotiates treaty of Guadalupe Hidalgo, 352. + +Truxton, Captain, voted a medal by Congress, 160. + +Turner, Professor, member of Ethnological Society, 379. + +Tyler, John, as president, offers Treasury portfolio to Gallatin, 278. + + +University, National, proposed by Jefferson, 291; + attempt to start one in New York, 368, 369; + success prevented by clerical influence, 370. + + +Van Buren, Martin, told by Gallatin of willingness to accept French + mission, 349; + manages caucus of Republican Congresssmen, 357; + letter of Gallatin to, withdrawing from nomination, 358. + +Van der Kemp, ----, Dutch commissioner to make commercial treaty, 334. + +Verplanck, Gulian C., member of "The Club," 367. + +Virginia, claims of Savary against, 19; + Gallatin's opinion of society in, 24; + movement in, to secure amendment of Constitution, 36; + disunion threats in, 116; + ready to attack Federalists by force in 1801, 166. + +Voltaire, friendship with Gallatin family, 7; + writes verses for Madame Gallatin, 7; + influence over Albert Gallatin, 7, 8. + + +Wainwright, Rev. Dr., member of "The Club," 367. + +War of 1812, estimates of Gallatin as to cost of operations in, 289, + 290; + preparation for, advocated by Gallatin, 292; + events leading to, 295; questions at issue in, 305; + English hopes in, 313, 316; + sack of Washington, 320. + +Ward, Samuel, member of "The Club," 367. + +Washington, Augustine, founder of Ohio Company, 20. + +Washington, George, his military inactivity in 1780, 12; + meets Gallatin in 1784, 22; + snubs him for forwardness, 23; + later wishes him to be his land agent, 23; + his election as president disconcerts anti-Federalists, 40; + unwilling to go to extremes against Whiskey Rebellion, 54; + issues proclamation, 54; + Randolph's opinion of his influence, 77; + combines conciliation with force, 77; + issues proclamation, calls out militia, and appoints commission to + confer, 77, 78; + accompanies army as far as Bedford, 88; + refuses to stop march of troops, 89; + dissuades troops from violence, 92; + pardons convicted offenders, 96; + reconstructs his cabinet, 97, 98; his influence, 102; + convenes Senate to ratify Jay treaty, 102; + attacked by Bache, 104; + addresses Congress, 104; + his administration criticised in debate over reply in House, 104-106; + refuses call of House for Jay treaty papers, 114; + refusal of House to adjourn on his birthday, 126; + obtains surrender of Western posts, 128; + issues Farewell Address, 128; + attacked by Giles, 128; + proposal of Gallatin concerning reply to his message, 129; + sends tricolor to Congress, 130, 132; + attends Congress as lieutenant-general, 155; + his death announced by Marshall, 158; + invites Wolcott to succeed Hamilton, 176; + Gallatin's opinion of his character, 383, 384; + and of his strong passions, 383 n. + +Washington, Lawrence, founder of Ohio Company, 20. + +Washington city, removal of Congress to, 161, 162; + sack of, by English, 320. + +Washington County, Pennsylvania, in Whiskey Insurrection, 49, 50, 51, + 70, 71, 78, 94, 96; + elects Gallatin to Congress, 93, 127. + +Wayne, Anthony, makes treaty with Indians, 117. + +Webster, Daniel, his speech on northeastern boundary published by + Gallatin, 349; + his manner of negotiating with Ashburton, 350. + +Webster, Pelatiah, describes Gallatin at Philadelphia in 1783, 19. + +Wellington, Lord, asked by cabinet to conquer a peace, 322; + advises cabinet not to insist on cession of territory, 322; + expresses friendly feelings, 335. + +Wells, John, member of "The Club," 367. + +Westmoreland County, in Whiskey Insurrection, 49, 51, 74, 78, 96. + +Wheaton, Henry, requests Gallatin to furnish Humboldt with data on gold + in United States, 381. + +Whiskey Insurrection, opposition to excise in Pennsylvania, 48, 49; + reasons for opposition, 49, 50; + first meetings against excise in Washington County, 50, 51; + combined meeting of four counties at Pittsburgh, 51; + violence against inspectors, 51; + modification of law, 52; + second convention at Pittsburgh, 52; + resolutions against collectors, 52, 53; + petition to Congress, 53; + proclamation issued by Washington and cabinet, 54; + arrests and riots, 55; + attempts to serve writs, 67, 68; + rioting, burning of Marshall's house, 68, 69; + flight of officers, 68; + meetings of distillers, 69; + efforts of Gallatin and others to prevent violence, 69, 70; + stoppage of mails, 69; + call for meeting of militia, 70; + leaders of, 70, 71; + meeting of militia at Parkinson's Ferry, 72, 73; + estimates of numbers, 72; + violence of feeling, 73, 74; + renewed outrages, 74; + use of liberty poles, 74; + attitude of Gallatin toward, 75, 76; + plans of Washington and Hamilton to suppress, 77; + proclamation against carrying arms, 77; + commissioners appointed, 77; + convention of distillers at Parkinson's Ferry, 78, 79; + proposals to raise troops, 79; + efforts of moderates, 80, 81; + committee of sixty appointed, 80; + arrival of commissioners, their offer, 81; + conference of committee at Red Stone Old Fort, 81, 82; + vote to accept terms, 83; + influence of Gallatin, 84; + meetings for submission in counties, 85; + apparent failure of terms of amnesty, 86; + threats of secession, 86; + Hamilton writes "Tully" letter, 87; + report of commissioners, 87; + proclamation calls out troops, 87; + march of militia, 88; + committee of sixty passes conciliatory resolutions, 88, 89; + refusal of Washington to turn back, 89; + final meeting at Parkinson's Ferry votes entire submission, 89; + occupation of western counties by troops, 89, 90; + arrest of rebels, 90, 91; + journey of prisoners to Philadelphia, 91, 92; + end of disturbances, 93; + return of army, 93; + confession of Gallatin, 94; + trial of prisoners, 96; + its effect on Federalist party, 101; + Gallatin taunted with participation in, 119, 124. + +Wirt, William, letter of Jefferson to, 298. + +Wolcott, Oliver, succeeds Hamilton in Treasury Department, 97; + his situation deplored by Gallatin, 125; + complains to Hamilton of Republican opposition, 126; + complains of Gallatin's purpose to break down department, 154; + his career as Hamilton's successor, 176-178; + his statement of a surplus denied by Gallatin, 190, 191. + +Woodbury, Levi, reports extinction of debt, 270, 271; + then deplores its absence, 271; + alarmed at increase of circulation in 1836, 272; + begins sub-treasury system, 273; + promises to support resumption of payment by banks, 275. + +X Y Z dispatches, 149. + +The Riverside Press + +CAMBRIDGE, MASSACHUSETTS, U. 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You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: Albert Gallatin + American Statesmen Series, Vol. XIII + +Author: John Austin Stevens + +Release Date: March 22, 2007 [EBook #20873] + +Language: English + +Character set encoding: ISO-8859-1 + +*** START OF THIS PROJECT GUTENBERG EBOOK ALBERT GALLATIN *** + + + + +Produced by Thomas Strong and the Online Distributed +Proofreading Team at https://www.pgdp.net (This file was +produced from images generously made available by The +Internet Archive/American Libraries.) + + + + + + +</pre> + + +<h3>Standard Library Edition</h3> + +<h1>AMERICAN STATESMEN</h1><br /> + +<h3>EDITED BY</h3><br /> + +<h2>JOHN T. MORSE, JR.</h2> + +<h3>IN THIRTY-TWO VOLUMES VOL. XIII.</h3> + +<h1>THE JEFFERSONIAN DEMOCRACY</h1> + +<p><span class='pagenum'><a name="Page_i" id="Page_i">[Pg i]</a></span></p> + +<h3><i>ALBERT GALLATIN</i></h3> + +<p><span class='pagenum'><a name="Page_ii" id="Page_ii">[Pg ii]</a></span></p> + +<p class="center"><a name="image-1" id="image-1"><!-- Image 1 --></a> +<img src="images/illus-003-1.jpg" height="305" width="229" alt="Albert Gallatin" /></p> +<h2><span class="totoc"><a href="#toc">ToC</a></span></h2> +<p class="center"><a name="image-2" id="image-2"><!-- Image 2 --></a> +<img src="images/illus-003-2.jpg" height="57" width="182" alt="Signature of Albert Gallatin" /></p> +<p class="center"><a href="#ILLUS">Click for list of Illustrations</a></p> +<h2>American Statesmen</h2> + +<h5>STANDARD LIBRARY EDITION</h5> + +<h3><i>The Home of Albert Gallatin</i></h3> + +<p class="center"><a name="image-3" id="image-3"><!-- Image 3 --></a> +<img src="images/illus-004-1.jpg" height="178" width="210" alt="The Home of Albert Gallatin" /></p> + +<p><span class='pagenum'><a name="Page_iii" id="Page_iii">[Pg iii]</a></span></p><h3>HOUGHTON, MIFFLIN & CO.</h3> + +<h4>American Statesmen</h4> + +<h1>ALBERT GALLATIN</h1> + +<h3>BY</h3> + +<h2>JOHN AUSTIN STEVENS</h2> + +<h3>BOSTON AND NEW YORK</h3> +<h2>HOUGHTON, MIFFLIN AND COMPANY</h2> +<span class='pagenum'><a name="Page_iv" id="Page_iv">[Pg iv]</a></span><h4>The Riverside Press, Cambridge</h4> +<h5>Copyright, 1883 and 1898</h5> +<h3>BY HOUGHTON, MIFFLIN & CO.</h3> + +<h5><i>All rights reserved</i></h5>.<span class='pagenum'><a name="Page_v" id="Page_v">[Pg v]</a></span> + +<h2>PREFACE</h2> + +<p>Every generation demands that history shall be rewritten. This is not +alone because it requires that the work should be adapted to its own +point of view, but because it is instinctively seeking those lines which +connect the problems and lessons of the past with its own questions and +circumstances. If it were not for the existence of lines of this kind, +history might be entertaining, but would have little real value. The +more numerous they are between the present and any earlier period, the +more valuable is, for us, the history of that period. Such +considerations establish an especial interest just at present in the +life of Gallatin.</p> + +<p>The Monroe Doctrine has recently been the pivot of American +statesmanship. With that doctrine Mr. Gallatin had much to do, both as +minister to France and envoy to Great Britain. Indeed, in 1818, some +years before the declaration of that doctrine, when the Spanish colonies +of South America were in revolt, he declared that the United States +would not even aid France in a mediation. Later, in May, 1823, six +months before the famous<span class='pagenum'><a name="Page_vi" id="Page_vi">[Pg vi]</a></span> message of President Monroe, Mr. Gallatin had +already uttered its idea; when about leaving Paris, on his return from +the French mission, he said to Chateaubriand, the French minister of +foreign affairs (May 13, 1823): “The United States would undoubtedly +preserve their neutrality, provided it were respected, and avoid any +interference with the politics of Europe.... On the other hand, they +would not suffer others to interfere against the emancipation of +America.” With characteristic vanity Canning said that it was he himself +who “called the new world into existence to redress the balance of the +old.” Yet precisely this had already for a long while been a cardinal +point of the policy of the United States. So early as 1808, Jefferson, +alluding to the disturbed condition of the Spanish colonies, said: “We +consider their interest and ours as the same, and that the object of +both must be to exclude all European influence in this hemisphere.”</p> + +<p>Matters of equal interest are involved in the study of Mr. Gallatin's +actions and opinions in matters of finance. Every one knows that he +ranks among the distinguished financiers of the world, and problems +which he had to consider are still agitating the present generation. He +was opposed alike to a national debt and to paper money. Had the +metallic basis of the United<span class='pagenum'><a name="Page_vii" id="Page_vii">[Pg vii]</a></span> States been adequate, he would have +accepted no other circulating medium, and would have consented to the +use of paper money only for purposes of exchange and remittance. In 1830 +he urged the restriction of paper money to notes of one hundred dollars +each, which were to be issued by the government. Obviously these must be +used chiefly for transmitting funds, and would be of little use for the +daily transactions of the people. Yet even this concession was due to +the fact that the United States was then a debtor country, and so late +as 1839, as Mr. Gallatin said, “specie was a foreign product.” For +subsidiary money he favored silver coins at eighty-five per cent. of the +dollar value, a sufficient alloy to hold them in the country. Silver was +then the circulating medium of the world, the people's pocket money, and +gold was the basis and the solvent of foreign exchanges.</p> + +<p>Great interest attaches to the application of some other of Gallatin's +financial principles to more modern problems; and a careful study of his +papers may fairly enable us to form a few conclusions. It may be safely +said that he would not have favored a national bank currency based on +government bonds. This, however, would not have been because of any +objection to the currency itself, but because the scheme would insure +the continuance of a national debt. He was too practical, also, not<span class='pagenum'><a name="Page_viii" id="Page_viii">[Pg viii]</a></span> to +see that the ultimate security is the faith of the government, and that +no filtering of that responsibility through private banks could do +otherwise than injure it. Further, it is reasonably safe to say that he +would favor the withdrawal both of national bank notes and of United +States notes, the greenbacks so-called; and that he would consent to the +use of paper only in the form of certificates directly representing the +precious metals, gold and silver; also that he would limit the use of +silver to its actual handling by the people in daily transactions. He +would feel safe to disregard the fluctuations of the intrinsic value of +silver, when used in this limited way as a subordinate currency, on the +ground that the stamp of the United States was sufficient for conferring +the needed value, when the obligation was only to maintain the parity, +not of the silver, but of the coin, with gold. He understood that, in +the case of a currency which is merely subordinate, parity arises from +the guaranty of the government, and not from the quality of the coin; +and that only such excess of any subordinate currency as is not needed +for use in daily affairs can be presented for redemption. This +principle, well understood by him, is recognized in European systems, +wherein the minimum of circulation is recognized as a maximum limit of +uncovered issues of paper. The circulation of silver,<span class='pagenum'><a name="Page_ix" id="Page_ix">[Pg ix]</a></span> or of +certificates based upon it, comes within the same rule.</p> + +<p>At the time of the publication of this volume objection was taken to the +author's statement that, until the publication of Gallatin's writings, +his fame as a statesman and political leader was a mere tradition. Yet +in point of fact, not only is his name hardly mentioned by the early +biographers of Jefferson, Madison, and J. Q. Adams, but even by the +later writers in this very Series, his work, varied and important as it +was, has been given but scant notice. The historians of the United +States, and those who have made a specialty of the study of political +parties, have been alike indifferent or derelict in their investigations +to such a degree that it required months of original research in the +annals of Congress to ascertain Gallatin's actual relations towards the +Federalist party which he helped to overthrow, and towards the +Republican party which he did so much to found, and of which he became +the ablest champion, in Congress by debate, and in the cabinet by +administration.</p> + +<p>Invited by the publishers of the Statesmen Series to bring this study +“up to date,” the author has found no important changes to make in his +work as he first prepared it. In the original investigation every source +of information was carefully ex<span class='pagenum'><a name="Page_x" id="Page_x">[Pg x]</a></span>plored, and no new sources have since +then been discovered. Mr. Gallatin's writings, carefully preserved in +originals and copies, and well arranged, supplied the details; while the +family traditions, with which the author was familiar, indicated the +objects to be obtained. But so wide was the general field of Mr. +Gallatin's career, so varied were his interests in all that pertained to +humanity, philanthropy, and science, and so extensive were his relations +with the leaders of European and American thought and action, that the +subject could only be treated on the broadest basis. With this apology +this study of one of the most interesting characters of American life is +again commended to the indulgence of the American people.</p> + +<p><span class="smcap">Newport</span>, April, 1898.</p> + +<a name="toc" id="toc"></a><hr /> +<h2>CONTENTS</h2> + +<div class="centered"> +<table border="0" cellpadding="4" cellspacing="0" summary="Table of Contents" style="width: 80%;"> + <tr> + <td align='left' style="width: 10%;"><span class="smcap">Chap</span>.</td> + <td align='right' style="width: 70%;"> </td> + <td align='right' style="width: 20%;"><span class="smcap">Page</span></td> + </tr> + <tr> + <td align='right'>I.</td> + <td align='left'><span class="smcap"><a href="#CHAPTER_I">Early Life</a></span></td> + <td align='right'>1</td> + </tr> + <tr> + <td align='right'>II.</td> + <td align='left'> <span class="smcap"><a href="#CHAPTER_II">Pennsylvania Legislature</a></span></td> + <td align='right'>2</td> + </tr> + <tr> + <td align='right'>III.</td> + <td align='left'><span class="smcap"><a href="#CHAPTER_III">United States Senate</a></span></td> + <td align='right'>56</td> + </tr> + <tr> + <td align='right'>IV.</td> + <td align='left'><span class="smcap"><a href="#CHAPTER_IV">The Whiskey Insurrection</a></span></td> + <td align='right'>67</td> + </tr> + <tr> + <td align='right'>V.</td> + <td align='left'><span class="smcap"><a href="#CHAPTER_V">Member Of Congress</a></span></td> + <td align='right'>97</td> + </tr> + <tr> + <td align='right'>VI.</td> + <td align='left'><span class="smcap"><a href="#CHAPTER_VI">Secretary Of The Treasury</a></span></td> + <td align='right'>170</td> + </tr> + <tr> + <td align='right'>VII.</td> + <td align='left'><span class="smcap"><a href="#CHAPTER_VII">In The Cabinet</a></span></td> + <td align='right'>279</td> + </tr> + <tr> + <td align='right'>VIII.</td> + <td align='left'><span class="smcap"><a href="#CHAPTER_VIII">In Diplomacy</a></span></td> + <td align='right'>301</td> + </tr> + <tr> + <td align='right'>IX.</td> + <td align='left'><span class="smcap"><a href="#CHAPTER_IX">Candidate For The Vice-Presidency</a></span></td> + <td align='right'>355</td> + </tr> + <tr> + <td align='right'>X.</td> + <td align='left'><span class="smcap"><a href="#CHAPTER_X">Society--Literature--Science</a></span></td> + <td align='right'>361</td></tr> + <tr> + <td align='right'> </td> + <td align='left'><span class="smcap"><a href="#INDEX">Index</a></span></td> + <td align='right'>391</td></tr> +</table></div> + +<h2><a name="ILLUS" id="ILLUS">ILLUSTRATIONS</a></h2> + +<div class='centered'> +<table border="0" cellpadding="4" cellspacing="0" summary="List of Illustrations" style="width: 75%;"> + <tr> + <td align='left' style="width: 75%;"><span class="smcap"><a href="#image-1">Albert Gallatin</a></span></td> + <td align='right' style="width: 25%;"><i>Frontispiece</i></td> + </tr> + <tr> + <td align='left'> From the original painting by Gilbert Stuart, in the + possession of Frederic W. Stevens, Esq., New York, N. Y.<br /> + Autograph from the Chamberlain collection, Boston Public Library.<br /> + The vignette of “Friendship Hill,” Mr. Gallatin's + home at New Geneva, Pa., is from a photograph.</td> + <td> </td> + </tr> + <tr> + <td align='left'> </td> + <td align='right'>Page</td> + </tr> + <tr> + <td align='left'><span class="smcap"><a href="#image-4">Robert Goodloe Harper</a></span></td> + <td align='right'><i>facing</i> 98</td> + </tr> + <tr> + <td align='left' style="padding-bottom: .75em;"> From a painting by St. Mémin, in the possession of + Harper's granddaughter, Mrs. William C. Pennington, Baltimore, Md.<br /> + Autograph from a MS. in the New York Public Library, Lenox Building.</td> + <td style="padding-bottom: .75em;"> </td> + </tr> + <tr> + <td align='left'><span class="smcap"><a href="#image-6">Alexander J. Dallas</a></span></td> + <td align='right'><i>facing</i> 236</td> + </tr> + <tr> + <td align='left' style="padding-bottom: .75em;"> From the original painting by Gilbert Stuart, in the + possession of Mrs. W. H. Emory, Washington, D. C.<br /> + Autograph from the Chamberlain collection, Boston Public Library.</td> + <td style="padding-bottom: .75em;"> </td> + </tr> + <tr> + <td align='left'><span class="smcap"><a href="#image-8">James A. Bayard</a></span></td> + <td align='right'><i>facing</i> 312</td> + </tr> + <tr> + <td align='left' style="padding-bottom: .75em;"> From a painting by Wertmüller, owned by the late + Thomas F. Bayard, Wilmington, Del.<br /> + Autograph from the Chamberlain collection, Boston Public Library.</td> + <td style="padding-bottom: .75em;"> </td> + </tr> +</table></div> + +<span class='pagenum'><a name="Page_1" id="Page_1">[Pg 1]</a></span> +<h1>ALBERT GALLATIN</h1> +<br /> +<h2><a name="CHAPTER_I" id="CHAPTER_I"></a>CHAPTER I<span class="totoc"><a href="#toc">ToC</a></span></h2> +<h3>EARLY LIFE</h3> + +<p>Of all European-born citizens who have risen to fame in the political +service of the United States, Albert Gallatin is the most distinguished. +His merit in legislation, administration, and diplomacy is generally +recognized, and he is venerated by men of science on both continents. +Not, however, until the publication of his writings was the extent of +his influence upon the political life and growth of the country other +than a vague tradition. Independence and nationality were achieved by +the Revolution, in which he bore a slight and unimportant part; his +place in history is not, therefore, among the founders of the Republic, +but foremost in the rank of those early American statesmen, to whom it +fell to interpret and administer the organic laws which the founders +declared and the people ratified in the Constitution of the United +States. A study of his life shows that, from the time of the peace until +<span class='pagenum'><a name="Page_2" id="Page_2">[Pg 2]</a></span>his death, his influence, either by direct action or indirect counsel, +may be traced through the history of the country.</p> + +<p>The son of Jean Gallatin and his wife, Sophie Albertine Rollaz, he was +born in the city of Geneva on January 29, 1761, and was baptized by the +name of Abraham Alfonse Albert Gallatin. The name Abraham he received +from his grandfather, but it was early dropped, and he was always known +by his matronymic Albert. The Gallatin family held great influence in +the Swiss Republic, and from the organization of the State contributed +numerous members to its magistracy; others adopted the military +profession, and served after the manner of their country in the Swiss +contingents of foreign armies. The immediate relatives of Albert +Gallatin were concerned in trade. Abraham, his grandfather, and Jean, +his father, were partners. The latter dying in 1765, his widow assumed +his share in the business. She died in March, 1770, leaving two +children,—Albert, then nine years of age, and an invalid daughter who +died a few years later. The loss to the orphan boy was lessened, if not +compensated, by the care of a maiden lady—Mademoiselle Pictet—who had +taken him into her charge at his father's death. This lady, whose +affection never failed him, was the intimate friend of his mother as +well as a distant relative of his father. Young Gallatin remained in +this kind care until January, 1773, when he was sent to a +<span class='pagenum'><a name="Page_3" id="Page_3">[Pg 3]</a></span>boarding-school, and in August, 1775, to the academy of Geneva, from +which he was graduated in May, 1779. The expenses of his education were +in great part met by the trustees of the Bourse Gallatin,—a sum left in +1699 by a member of the family, of which the income was to be applied to +its necessities. The course of study at the academy was confined to +Latin and Greek. These were taught, to use the words of Mr. Gallatin, +“Latin thoroughly, Greek much neglected.” Fortunately his preliminary +home training had been careful, and he left the academy the first in his +class in mathematics, natural philosophy, and Latin translation. French, +a language in general use at Geneva, was of course familiar to him. +English he also studied. He is not credited with special proficiency in +history, but his teacher in this branch was Muller, the distinguished +historian, and the groundwork of his information was solid. No American +statesman has shown more accurate knowledge of the facts of history, or +a more profound insight into its philosophy, than Mr. Gallatin.</p> + +<p>Education, however, is not confined to instruction, nor is the influence +of an academy to be measured by the extent of its curriculum, or the +proficiency of its students, but rather by its general tone, moral and +intellectual. The Calvinism of Geneva, narrow in its religious sense, +was friendly to the spread of knowledge; and had this not been the case, +the side influences of Roman Catholicism on the one hand, and the +liberal spirit of the age on the other, would have tempered its +<span class='pagenum'><a name="Page_4" id="Page_4">[Pg 4]</a></span>exclusive tendency.</p> + +<p>While the academy seems to have sent out few men of extraordinary +eminence, its influence upon society was happy. Geneva was the resort of +distinguished foreigners. Princes and nobles from Germany and the north +of Europe, lords and gentlemen from England, and numerous Americans went +thither to finish their education. Of these Mr. Gallatin has left +mention of Francis Kinloch and William Smith, who later represented +South Carolina in the Congress of the United States; Smith was +afterwards minister to Portugal; Colonel Laurens, son of the president +of Congress, and special envoy to France during the war of the American +Revolution; the two Penns, proprietors of Pennsylvania; Franklin Bache, +grandson of Dr. Franklin; and young Johannot, grandson of Dr. Cooper of +Boston. Yet no one of these followed the academic course. To use again +the words of Mr. Gallatin, “It was the Geneva society which they +cultivated, aided by private teachers in every branch, with whom Geneva +was abundantly supplied.” “By that influence,” he says, he was himself +“surrounded, and derived more benefit from that source than from +attendance on academical lectures.” Considered in its broader sense, +education is quite as much a matter of association as of scholarly +acquirement. The influence of the companion is as strong and enduring as +that of the master. Of this truth the career of young Gallatin is a +notable example. During his academic course he formed ties of intimate +<span class='pagenum'><a name="Page_5" id="Page_5">[Pg 5]</a></span>friendship with three of his associates. These were Henri Serre, Jean +Badollet, and Etienne Dumont. This attachment was maintained unimpaired +throughout their lives, notwithstanding the widely different stations +which they subsequently filled. Serre and Badollet are only remembered +from their connection with Gallatin. Dumont was of different mould. He +was the friend of Mirabeau, the disciple and translator of Bentham,—a +man of elegant acquirement, but, in the judgment of Gallatin, “without +original genius.” De Lolme was in the class above Gallatin. He had such +facility in the acquisition of languages that he was able to write his +famous work on the English Constitution after the residence of a single +year in England. Pictet, Gallatin's relative, afterwards celebrated as a +naturalist, excelled all his fellows in physical science.</p> + +<p>During his last year at the academy Gallatin was engaged in the tuition +of a nephew of Mademoiselle Pictet, but the time soon arrived when he +felt called upon to choose a career. His state was one of comparative +dependence, and the small patrimony which he inherited would not pass to +his control until he should reach his twenty-fifth year,—the period +assigned for his majority. It would be hardly just to say that he was +ambitious. Personal distinction was never an active motor in his life. +Even his later honors, thick and fast though they fell, were rather +<span class='pagenum'><a name="Page_6" id="Page_6">[Pg 6]</a></span>thrust upon than sought by him. But his nature was proud and sensitive, +and he chafed under personal control. The age was restless. The spirit +of philosophic inquiry, no longer confined within scholastic limits, was +spreading far and wide. From the banks of the Neva to the shores of the +Mediterranean, the people of Europe were uneasy and expectant. Men +everywhere felt that the social system was threatened with a cataclysm. +What would emerge from the general deluge none could foresee. Certainly, +the last remains of the old feudality would be engulfed forever. Nowhere +was this more thoroughly believed than at the home of Rousseau. Under +the shadow of the Alps, every breeze from which was free, the Genevese +philosopher had written his “Contrat social,” and invited the rulers and +the ruled to a reorganization of their relations to each other and to +the world. But nowhere, also, was the conservative opposition to the new +theories more intense than here.</p> + +<p>The mind of young Gallatin was essentially philosophic. The studies in +which he excelled in early life were in this direction, and at no time +in his career did he display any emotional enthusiasm on subjects of +general concern. But, on the other hand, he was unflinching in his +adherence to abstract principle. Though not carried away by the +extravagance of Rousseau, he was thoroughly discontented with the +political state of Geneva. He was by early conviction a Democrat in the +broadest sense of the term. Indeed, it would be difficult to find a more +<span class='pagenum'><a name="Page_7" id="Page_7">[Pg 7]</a></span>perfect example of what it was then the fashion to call a <i>citoyen du +monde</i>. His family seem, on the contrary, to have been always +conservative, and attached to the aristocratic and oligarchic system to +which they had, for centuries, owed their position and advancement.</p> + +<p>Abraham Gallatin, his grandfather, lived at Pregny on the northern shore +of the lake, in close neighborhood to Ferney, the retreat of Voltaire. +Susanne Vaudenet Gallatin, his grandmother, was a woman of the world, a +lady of strong character, and the period was one when the influence of +women was paramount in the affairs of men; among her friends she counted +Voltaire, with whom her husband and herself were on intimate relations, +and Frederick, Landgrave of Hesse-Cassel, with whom she corresponded. So +sincere was this latter attachment that the sovereign sent his portrait +to her in 1776, an honor which, at her instance, Voltaire acknowledged +in a verse characteristic of himself and of the time:—</p> + +<p> +<span style="margin-left: 4.75em;">“J'ai baisé ce portrait charmant,</span><br /> +<span style="margin-left: 5em;">Je vous l'avoûrai sans mystère,</span><br /> +<span style="margin-left: 5em;">Mes filles en out fait autant,</span><br /> +<span style="margin-left: 5em;">Mais c'est un secret qu'il faut taire.</span><br /> +<span style="margin-left: 5em;">Vous trouverez bon qu'une mère</span><br /> +<span style="margin-left: 5em;">Vous parle un peu plus hardiment,</span><br /> +<span style="margin-left: 5em;">Et vous verrez qu'également,</span><br /> +<span style="margin-left: 5em;">En tous les temps vous savez plaire.”</span><br /> +</p> + +<p>At Pregny young Gallatin was the constant guest of his nearest relatives +on his father's side, and he was a frequent visitor at Ferney. Those +whose fortune it has been to sit at the feet of Mr.<span class='pagenum'><a name="Page_8" id="Page_8">[Pg 8]</a></span> Gallatin himself, +in the serene atmosphere of his study, after his retirement from active +participation in public concerns, may well imagine the influence which +the rays of the prismatic character of Voltaire must have had upon the +philosophic and receptive mind of the young student.</p> + +<p>There was and still is a solidarity in European families which can +scarcely be said to have ever had a counterpart in those of England, and +of which hardly a vestige remains in American social life. The fate of +each member was a matter of interest to all, and the honor of the name +was of common concern. Among the Gallatins, the grandmother, Madame +Gallatin-Vaudenet, as she was called, appears to have been the +controlling spirit. To her the profession of the youthful scion of the +stock was a matter of family consequence, and she had already marked out +his future course. The Gallatins, as has been already stated, had +acquired honor in the military service of foreign princes. Her friend, +the Landgrave of Hesse, was engaged in supporting the uncertain fortunes +of the British army in America with a large military contingent, and she +had only to ask to obtain for her grandson the high commission of +lieutenant-colonel of one of the regiments of Hessian mercenaries. To +the offer made to young Gallatin, and urged with due authority, he +replied, that “he would never serve a tyrant;” a want of respect which +was answered by a cuff on the ear. This incident determined his career. +Whether it crystallized long-cherished<span class='pagenum'><a name="Page_9" id="Page_9">[Pg 9]</a></span> fancies into sudden action, or +whether it was of itself the initial cause of his resolve, is now mere +matter of conjecture; probably the former. The three friends, Gallatin, +Badollet, and Serre seem to have amused their leisure in planning an +ideal existence in some wilderness. America offered a boundless field +for the realization of such dreams, and the spice of adventure could be +had for the seeking. Here was the forest primeval in its original +grandeur. Here the Indian roamed undisputed master; not the tutored +Huron of Voltaire's tale, but the savage of torch and tomahawk. The +continent was as yet unexplored. In uncertainty as to motives for man's +action the French magistrate always searches for the woman,—“cherchez +la femme!” One single allusion in a letter written to Badollet, in 1783, +shows that there was a woman in Gallatin's horoscope. Who she was, what +her relation to him, or what influence she had upon his actions, nowhere +appears. He only says that besides Mademoiselle Pictet there was one +friend, “une amie,” at Geneva, from whom a permanent separation would be +hard.</p> + +<p>Confiding his purpose to his friend Serre, Gallatin easily persuaded +this ardent youth to join him in his venturesome journey, and on April +1, 1780, the two secretly left Geneva. It certainly was no burning +desire to aid the Americans in their struggle for independence, such as +had stirred the generous soul of Lafayette, that prompted this act. In +later life he repeatedly disclaimed any<span class='pagenum'><a name="Page_10" id="Page_10">[Pg 10]</a></span> such motive. It was rather a +longing for personal independence, for freedom from the trammels of a +society in which he had little faith or interest. Nor were his political +opinions at this time matured. He had a just pride in the Swiss Republic +as a free State (Etat libre), and his personal bias was towards the +“Négatif” party, as those were called who maintained the authority of +the Upper Council (Petit Conseil) to reject the demands of the people. +To this oligarchic party his family belonged. In a letter written three +years later, he confesses that he was “Négatif” when he abandoned his +home, and conveys the idea that his emigration was an experiment, a +search for a system of government in accordance with his abstract +notions of natural justice and political right. To use his own words, he +came to America to “drink in a love for independence in the freest +country of the universe.” But there was some method in this madness. The +rash scheme of emigration had a practical side; land speculation and +commerce were to be the foundation and support of the settlement in the +wilderness where they would realize their political Utopia.</p> + +<p>From Geneva the young adventurers hurried to Nantes, on the coast of +France, where Gallatin soon received letters from his family, who seem +to have neglected nothing that could contribute to their comfort or +advantage. Monsieur P. M. Gallatin, the guardian of Albert, a distant +relative in an elder branch of the family, addressed<span class='pagenum'><a name="Page_11" id="Page_11">[Pg 11]</a></span> him a letter +which, in its moderation, dignity, and kindness, is a model of +well-tempered severity and reproach. It expressed the pain Mademoiselle +Pictet had felt at his unceremonious departure, and his own affliction +at the ingratitude of one to whom he had never refused a request. +Finally, as the trustee of his estate till his majority, the guardian +assures the errant youth that he will aid him with pecuniary resources +as far as possible, without infringing upon the capital, and within the +sworn obligation of his trust. Letters of recommendation to +distinguished Americans were also forwarded, and in these it is found, +to the high credit of the family, that no distinction was made between +the two young men, although Serre seems to have been considered as the +originator of the bold move. The intervention of the Duke de la +Rochefoucauld d'Enville was solicited, and a letter was obtained by him +from Benjamin Franklin—then American minister at the Court of +Versailles—to his son-in-law, Richard Bache. Lady Juliana Penn wrote in +their behalf to John Penn at Philadelphia, and Mademoiselle Pictet to +Colonel Kinloch, member of the Continental Congress from South Carolina. +Thus supported in their undertaking the youthful travelers sailed from +L'Orient on May 27, in an American vessel, the Kattie, Captain Loring. +Of the sum which Gallatin, who supplied the capital for the expedition, +brought from Geneva, one half had been expended in their land journey +and the payment of the pas<span class='pagenum'><a name="Page_12" id="Page_12">[Pg 12]</a></span>sages to Boston; one half, eighty louis +d'or—the equivalent of four hundred silver dollars—remained, part of +which they invested in tea. Reaching the American coast in a fog, or bad +weather, they were landed at Cape Ann on July 14. From Gloucester they +rode the next day to Boston on horseback, a distance of thirty miles. +Here they put up at a French café, “The Sign of the Alliance,” in Fore +Street, kept by one Tahon, and began to consider what step they should +next take in the new world.</p> + +<p>The prospects were not encouraging; the military fortunes of the +struggling nation were never at a lower ebb than during the summer which +intervened between the disaster of Camden and the discovery of Arnold's +treason. Washington's army lay at New Windsor in enforced inactivity; +enlistments were few, and the currency was almost worthless. Such was +the stagnation in trade, that the young strangers found it extremely +difficult to dispose of their little venture in tea. Two months were +passed at the café, in waiting for an opportunity to go to Philadelphia, +where Congress was in session, and where they expected to find the +influential persons to whom they were accredited; also letters from +Geneva. But this journey was no easy matter. The usual routes of travel +were interrupted. New York was the fortified headquarters of the British +army, and the Middle States were only to be reached by a détour through +the American lines above the Highlands and behind the Jersey Hills.<span class='pagenum'><a name="Page_13" id="Page_13">[Pg 13]</a></span></p> + +<p>The homesick youths found little to amuse or interest them in Boston, +and grew very weary of its monotonous life and Puritanic tone. They +missed the public amusements to which they were accustomed in their own +country, and complained of the superstitious observance of Sunday, when +“singing, fiddling, card-playing and bowling were forbidden.” Foreigners +were not welcome guests in this town of prejudice. The sailors of the +French fleet had already been the cause of one riot. Gallatin's letters +show that this aversion was fully reciprocated by him.</p> + +<p>The neighboring country had some points of interest. No Swiss ever saw a +hill without an intense desire to get to its top. They soon felt the +magnetic attraction of the Blue Hills of Milton, and, descrying from +their summit the distant mountains north of Worcester, made a pedestrian +excursion thither the following day. Mr. Gallatin was wont to relate +with glee an incident of this trip, which Mr. John Russell Bartlett +repeats in his “Reminiscences.”</p> + +<div class="blockquot"><p>“The tavern at which he stopped on his journey was kept by a man +who partook in a considerable degree of the curiosity even +now-a-days manifested by some landlords in the back parts of New +England to know the whole history of their guests. Noticing Mr. +Gallatin's French accent he said, 'Just from France, eh! You are a +Frenchman, I suppose.' 'No!' said Mr. Gallatin, 'I am not from +France.' 'You can't be from England, I am sure?' 'No!' was the +reply. 'From<span class='pagenum'><a name="Page_14" id="Page_14">[Pg 14]</a></span> Spain?' 'No!' 'From Germany?' 'No!' 'Well, where on +earth are you from then, or what are you?' eagerly asked the +inquisitive landlord. 'I am a Swiss,' replied Mr. Gallatin. 'Swiss, +Swiss, Swiss!' exclaimed the landlord, in astonishment. 'Which of +the ten tribes are the Swiss?'”</p></div> + +<p>Nor was this an unnatural remark. At this time Mr. Gallatin did not +speak English with facility, and indeed was never free from a foreign +accent.</p> + +<p>At the little café they met a Swiss woman, the wife of a Genevan, one De +Lesdernier, who had been for thirty years established in Nova Scotia, +but, becoming compromised in the attempt to revolutionize the colony, +was compelled to fly to New England, and had settled at Machias, on the +northeastern extremity of the Maine frontier. Tempted by her account of +this region, and perhaps making a virtue of necessity, Gallatin and +Serre bartered their tea for rum, sugar, and tobacco, and, investing the +remainder of their petty capital in similar merchandise, they embarked +October 1, 1780, upon a small coasting vessel, which, after a long and +somewhat perilous passage, reached the mouth of the Machias River on the +15th of the same month. Machias was then a little settlement five miles +from the mouth of the stream of the same name. It consisted of about +twenty houses and a small fortification, mounting seven guns and +garrisoned by fifteen or twenty men. The young travelers were warmly +received by the son of Lesdernier, and made their home under his roof.<span class='pagenum'><a name="Page_15" id="Page_15">[Pg 15]</a></span> +This seems to have been one of the four or five log houses in a large +clearing near the fort. Gallatin attempted to settle a lot of land, and +the meadow where he cut the hay with his own hands is still pointed out. +This is Frost's meadow in Perry, not far from the site of the Indian +village. A single cow was the beginning of a farm, but the main +occupation of the young men was woodcutting. No record remains of the +result of the merchandise venture. The trade of Machias was wholly in +fish, lumber, and furs, which, there being no money, the settlers were +ready enough to barter for West India goods. But the outlet for the +product of the country was, in its unsettled condition, uncertain and +precarious, and the young traders were no better off than before. One +transaction only is remembered, the advance by Gallatin to the garrison +of supplies to the value of four hundred dollars; for this he took a +draft on the state treasury of Massachusetts, which, there being no +funds for its payment, he sold at one fourth of its face value.</p> + +<p>The life, rude as it was, was not without its charms. Serre seems to +have abandoned himself to its fascination without a regret. His +descriptive letters to Badollet read like the “Idylls of a Faun.” Those +of Gallatin, though more tempered in tone, reveal quiet content with the +simple life and a thorough enjoyment of nature in its original wildness. +In the summer they followed the tracks of the moose and deer through the +primitive<span class='pagenum'><a name="Page_16" id="Page_16">[Pg 16]</a></span> forests, and explored the streams and lakes in the light +birch canoe, with a woodsman or savage for their guide. In the winter +they made long journeys over land and water on snowshoes or on skates, +occasionally visiting the villages of the Indians, with whom the +Lesderniers were on the best of terms, studying their habits and +witnessing their feasts. Occasional expeditions of a different nature +gave zest and excitement to this rustic life. These occurred when alarms +of English invasion reached the settlement, and volunteers marched to +the defence of the frontier. Twice Gallatin accompanied such parties to +Passamaquoddy, and once, in November, 1780, was left for a time in +command of a small earthwork and a temporary garrison of whites and +Indians at that place. At Machias Gallatin made one acquaintance which +greatly interested him, that of La Pérouse, the famous navigator. He was +then in command of the Amazone frigate, one of the French squadron on +the American coast, and had in convoy a fleet of fishing vessels on +their way to the Newfoundland banks. Gallatin had an intense fondness +for geography, and was delighted with La Pérouse's narrative of his +visit to Hudson's Bay, and of his discovery there (at Fort Albany, which +he captured) of the manuscript journal of Samuel Hearne, who some years +before had made a voyage to the Arctic regions in search of a northwest +passage. Gallatin and La Pérouse met subsequently in Boston.<span class='pagenum'><a name="Page_17" id="Page_17">[Pg 17]</a></span></p> + +<p>The winter of 1780-81 was passed in the cabin of the Lesderniers. The +excessive cold does not seem to have chilled Serre's enthusiasm. Like +the faun of Hawthorne's mythical tale, he loved Nature in all her moods; +but Gallatin appears to have wearied of the confinement and of his +uncongenial companions. The trading experiment was abandoned in the +autumn, and with some experience, but a reduced purse, the friends +returned in October to Boston, where Gallatin set to work to support +himself by giving lessons in the French language. What success he met +with at first is not known, though the visits of the French fleet and +the presence of its officers may have awakened some interest in their +language. However this may be, in December Gallatin wrote to his good +friend, Mademoiselle Pictet, a frank account of his embarrassments. +Before it reached her, she had already, with her wonted forethought, +anticipated his difficulties by providing for a payment of money to him +wherever he might be, and had also secured for him the interest of Dr. +Samuel Cooper, whose grandson, young Johannot, was then at school in +Geneva. Dr. Cooper was one of the most distinguished of the patriots in +Boston, and no better influence could have been invoked than his. In +July, 1782, by a formal vote of the President and Fellows of Harvard +College, Mr. Gallatin was permitted to teach the French language. About +seventy of the students availed themselves of the privilege. Mr. +Gallatin re<span class='pagenum'><a name="Page_18" id="Page_18">[Pg 18]</a></span>ceived about three hundred dollars in compensation. In this +occupation he remained at Cambridge for about a year, at the expiration +of which he took advantage of the close of the academic course to +withdraw from his charge, receiving at his departure a certificate from +the Faculty that he had acquitted himself in his department with great +reputation.</p> + +<p>The war was over, the army of the United States was disbanded, and the +country was preparing for the new order which the peace would introduce +into the habits and occupations of the people. The long-sought +opportunity at last presented itself, and Mr. Gallatin at once embraced +it. He left Boston without regret. He had done his duty faithfully, and +secured the approbation and esteem of all with whom he had come in +contact, but there is no evidence that he cared for or sought social +relations either in the city or at the college. Journeying southward he +passed through Providence, where he took sail for New York. Stopping for +an hour at Newport for dinner, he reached New York on July 21, 1783. The +same day the frigate Mercury arrived from England with news of the +signature of the definitive treaty of peace. He was delighted with the +beauty of the country-seats above the city, the vast port with its +abundant shipping, and with the prospect of a theatrical entertainment. +The British soldiers and sailors, who were still in possession, he found +rude and insolent, but the returning refugees civil and honest<span class='pagenum'><a name="Page_19" id="Page_19">[Pg 19]</a></span> people. +At Boston Gallatin made the acquaintance of a French gentleman, one +Savary de Valcoulon, who had crossed the Atlantic to prosecute in person +certain claims against the State of Virginia for advances made by his +house in Lyons during the war. He accompanied Gallatin to New York, and +together they traveled to Philadelphia; Savary, who spoke no English, +gladly attaching to himself as his companion a young man of the ability +and character of Gallatin.</p> + +<p>At Philadelphia Gallatin was soon after joined by Serre, who had +remained behind, engaged also in giving instruction. The meeting at +Philadelphia seems to have been the occasion for the dissolution of a +partnership in which Gallatin had placed his money, and Serre his +enthusiasm and personal charm. A settlement was made; Serre giving his +note to Gallatin for the sum of six hundred dollars,—one half of their +joint expenses for three years,—an obligation which was repaid more +than half a century later by his sister. Serre then joined a +fellow-countryman and went to Jamaica, where he died in 1784. At +Philadelphia Gallatin and Savary lodged in a house kept by one Mary +Lynn. Pelatiah Webster, the political economist, who owned the house, +was also a boarder. Later he said of his fellow-lodgers that “they were +well-bred gentlemen who passed their time conversing in French.” +Gallatin, at the end of his resources, gladly acceded to Savary's +request to accompany him to Richmond.<span class='pagenum'><a name="Page_20" id="Page_20">[Pg 20]</a></span></p> + +<p>Whatever hesitation Gallatin may have entertained as to his definitive +expatriation was entirely set at rest by the news of strife between the +rival factions in Geneva and the interposition of armed force by the +neighboring governments. This interference turned the scale against the +liberal party. Mademoiselle Pictet was the only link which bound him to +his family. For his ingratitude to her he constantly reproached himself. +He still styled himself a citizen of Geneva, but this was only as a +matter of convenience and security to his correspondence. His +determination to make America his home was now fixed. The lands on the +banks of the Ohio were then considered the most fertile in America,—the +best for farming purposes, the cultivation of grain, and the raising of +cattle. The first settlement in this region was made by the Ohio +Company, an association formed in Virginia and London, about the middle +of the century, by Thomas Lee, together with Lawrence and Augustine, +brothers of George Washington. The lands lay on the south side of the +Ohio, between the Monongahela and Kanawha rivers. These lands were known +as “Washington's bottom lands.” In this neighborhood Gallatin determined +to purchase two or three thousand acres, and prepare for that ideal +country home which had been the dream of his college days. Land here was +worth from thirty cents to four dollars an acre. His first purchase was +about one thousand acres, for which he paid one hundred pounds,<span class='pagenum'><a name="Page_21" id="Page_21">[Pg 21]</a></span> +Virginia currency. Land speculation was the fever of the time. Savary +was early affected by it, and before the new friends left Philadelphia +for Richmond he bought warrants for one hundred and twenty thousand +acres in Virginia, in Monongalia County, between the Great and Little +Kanawha rivers, and interested Gallatin to the extent of one quarter in +the purchase. Soon after the completion of this transaction the sale of +some small portions reimbursed them for three fourths of the original +cost. This was the first time when, and Savary was the first person to +whom, Gallatin was willing to incur a pecuniary obligation. Throughout +his life he had an aversion to debt; small or large, private or public. +It was arranged that Gallatin's part of the purchase money was not to be +paid until his majority,—January 29, 1786,—but in the meanwhile he +was, in lieu of interest money, to give his services in personal +superintendence. Later Savary increased Gallatin's interest to one half. +Soon after these plans were completed, Savary and Gallatin moved to +Richmond, where they made their residence.</p> + +<p>In February, 1784, Gallatin returned to Philadelphia, perfected the +arrangements for his expedition, and in March crossed the mountains, +and, with his exploring party, passed down the Ohio River to Monongalia +County in Virginia. The superior advantages of the country north of the +Virginia line determined him to establish his headquarters there. He +selected the farm of Thomas<span class='pagenum'><a name="Page_22" id="Page_22">[Pg 22]</a></span> Clare, at the junction of the Monongahela +River and George's Creek. This was in Fayette County, Pennsylvania, +about four miles north of the Virginia line. Here he built a log hut, +opened a country store, and remained till the close of the year. It was +while thus engaged at George's Creek, in September of the year 1784, +that Gallatin first met General Washington, who was examining the +country, in which he had large landed interests, to select a route for a +road across the Alleghanies. The story of the interview was first made +public by Mr. John Russell Bartlett, who had it from the lips of Mr. +Gallatin. The version of the late Hon. William Beach Lawrence, in a +paper prepared for the New York Historical Society, differs slightly in +immaterial points. Mr. Lawrence says:—</p> +<div class="blockquot"><p>“Among the incidents connected with his (Mr. Gallatin's) earliest +explorations was an interview with General Washington, which he +repeatedly recounted to me. He had previously observed that of all +the inaccessible men he had ever seen, General Washington was the +most so. And this remark he made late in life, after having been +conversant with most of the sovereigns of Europe and their prime +ministers. He said, in connection with his office, he had a cot-bed +in the office of the surveyor of the district when Washington, who +had lands in the neighborhood, and was desirous of effecting +communication between the rivers, came there. Mr. Gallatin's bed +was given up to him,—Gallatin lying on the floor, immediately +below the table at which Wash<span class='pagenum'><a name="Page_23" id="Page_23">[Pg 23]</a></span>ington was writing. Washington was +endeavoring to reduce to paper the calculations of the day. +Gallatin, hearing the statement, came at once to the conclusion, +and, after waiting some time, he himself gave the answer, which +drew from Washington such a look as he never experienced before or +since. On arriving by a slow process at his conclusion, Washington +turned to Gallatin and said, 'You are right, young man.'”</p></div> + +<p>The points of difference between the two accounts of this interview are +of little importance. The look which Washington is said to have given +Mr. Gallatin has its counterpart in that with which he is also said to +have turned upon Gouverneur Morris, when accosted by him familiarly with +a touch on the shoulder. Bartlett, in his recollection of the anecdote, +adds that Washington, about this period, inquired after the forward +young man, and urged him to become his land agent,—an offer which +Gallatin declined.</p> + +<p>The winter of 1784-85 was passed in Richmond, in the society of which +town Mr. Gallatin began to find a relief and pleasure he had not yet +experienced in America. At this period the Virginia capital was the +gayest city in the Union, and famous for its abundant hospitality, +rather facile manners, and the liberal tendency of its religious +thought. Gallatin brought no prudishness and no orthodoxy in his +Genevese baggage. One of the last acts of his life was to recognize in +graceful and touching words the kindness he then met with:<span class='pagenum'><a name="Page_24" id="Page_24">[Pg 24]</a></span>—</p> + +<div class="blockquot"><p>“I was received with that old proverbial Virginia hospitality to +which I know no parallel anywhere within the circle of my travels. +It was not hospitality only that was shown to me. I do not know how +it came to pass, but every one with whom I became acquainted +appeared to take an interest in the young stranger. I was only the +interpreter of a gentleman, the agent of a foreign house, that had +a large claim for advances to the State, and this made me known to +all the officers of government, and some of the most prominent +members of the Legislature. It gave me the first opportunity of +showing some symptoms of talent, even as a speaker, of which I was +not myself aware. Every one encouraged me, and was disposed to +promote my success in life. To name all those from whom I received +offers of service would be to name all the most distinguished +residents at that time in Richmond.”</p></div> + +<p>In the spring of 1785, fortified with a certificate from Governor +Patrick Henry, commending him to the county surveyor, and intrusted by +Henry with the duty of locating two thousand acres of lands in the +western country for a third party, he set out from Richmond, on March +31, alone, on horseback. Following the course of the James River he +crossed the Blue Ridge at the Peaks of Otter, and reached Greenbrier +Court House on April 18. On the 29th he arrived at Clare's, on George's +Creek, where he was joined by Savary. Their surveying operations were +soon begun, each taking a separate course. An Indian rising broke up the +operations of Savary, and both parties<span class='pagenum'><a name="Page_25" id="Page_25">[Pg 25]</a></span> returned to Clare's. Gallatin +appeared before the court of Monongalia County, at its October term, and +took the “oath of allegiance and fidelity to the Commonwealth of +Virginia.” Clare's, his actual residence, was north of the Virginia +line, but his affections were with the old Dominion. In November the +partners hired from Clare a house at George's Creek, in Springfield +township, and established their residence, after which they returned to +Richmond by way of Cumberland and the Potomac. In February, 1786, +Gallatin made his permanent abode at his new home.</p> + +<p>Mention has been made of the intimacy of the young emigrants with Jean +Badollet, a college companion. When they left Geneva he was engaged in +the study of theology, and was now a teacher. He was included in the +original plan of emigration, and the first letters of both Gallatin and +Serre, who had for him an equal attachment, were to him, and year by +year, through all the vicissitudes of their fortune, they kept him +carefully informed of their movements and projects. For two years after +their departure no word was received from him. At last, spurred by the +sharp reproaches of Serre, he broke silence. In a letter written in +March, 1783, informing Gallatin of the troubles in Switzerland, he +excused himself on the plea that their common friend, Dumont, retained +him at Geneva. In answer, Gallatin opened his plans of western +settlement, which included the employment of his fortune in the +establishment<span class='pagenum'><a name="Page_26" id="Page_26">[Pg 26]</a></span> of a number of families upon his lands. He suggested to +Badollet to bring with him the little money he had, to which enough +would be added to establish him independently. Dumont was invited to +accompany him. But with a prudence which shows that his previous +experience had not been thrown away upon him, Gallatin recommends his +friend not to start at once, but to hold himself ready for the next, or, +at the latest, the year succeeding, at the same time suggesting the idea +of a general emigration of such Swiss malcontents as were small +capitalists and farmers; that of manufacturers and workmen he +discouraged. It was not, however, until the spring of 1785, on the eve +of leaving Richmond with some families which he had engaged to establish +on his lands, that he felt justified in asking his old friend to cross +the seas and share his lot. This invitation was accepted, and Badollet +joined him at George's Creek.</p> + +<p>The settlement beginning to spread, Gallatin bought another farm higher +up the river, to which he gave the name of Friendship Hill. Here he +later made his home.</p> + +<p>The western part of Pennsylvania, embracing the area which stretches +from the Alleghany Mountains to Lake Erie, is celebrated for the wild, +picturesque beauty of its scenery. Among its wooded hills the head +waters of the Ohio have their source. At Fort Duquesne, or Pittsburgh, +where the river takes a sudden northerly bend before finally settling in +swelling volume on its<span class='pagenum'><a name="Page_27" id="Page_27">[Pg 27]</a></span> southwesterly course to the Mississippi, the +Monongahela adds its mountain current, which separates in its entire +course from the Virginia line the two counties of Fayette and +Washington. The Monongahela takes its rise in Monongalia County, +Virginia, and flows to the northward. Friendship Hill is one of the +bluffs on the right bank of the river, and faces the Laurel Ridge to the +eastward. Braddock's Road, now the National Road, crosses the mountains, +passing through Uniontown and Red Stone Old Fort (Brownsville), on its +course to Pittsburgh. The county seat of Fayette is the borough of Union +or Uniontown. Gallatin's log cabin, the beginning of New Geneva, was on +the right bank of the Monongahela, about twelve miles to the westward of +the county seat. Opposite, on the other side of the river, in Washington +County, was Greensburg, where his friend Badollet was later established.</p> + +<p>Again for a long period Gallatin left his family without any word +whatever. His most indulgent friend, Mademoiselle Pictet, could hardly +excuse his silence, and did not hesitate to charge that it was due to +misfortunes which his pride prompted him to conceal. In the early days +of 1786 a rumor of his death reached Geneva, and greatly alarmed his +family. Mr. Jefferson, then minister at Paris, wrote to Mr. Jay for +information. This was Jefferson's first knowledge of the existence of +the young man who was to become his political associate, his philosophic +companion, and his<span class='pagenum'><a name="Page_28" id="Page_28">[Pg 28]</a></span> truest friend. Meanwhile Gallatin had attained his +twenty-fifth year and his majority. His family were no longer left in +doubt as to his existence, and in response to his letters drafts were at +once remitted to him for the sum of five thousand dollars, through the +banking-house of Robert Morris. This was, of course, immediately applied +to his western experiment. The business of the partnership now called +for his constant attention. It required the exercise of a great variety +of mental powers, a cool and discriminating judgment, combined with an +incessant attention to details. Nature, under such circumstances, is not +so attractive as she appears in youthful dreams; admirable in her +original garb, she is annoying and obstinate when disturbed. The view of +country which Friendship Hill commands is said to rival Switzerland in +its picturesque beauty, but years later, when the romance of the +Monongahela hills had faded in the actualities of life, Gallatin wrote +of it that “he did not know in the United States any spot which afforded +less means to earn a bare subsistence for those who could not live by +manual labor.”</p> + +<p>Gallatin has been blamed for “taking life awry and throwing away the +advantages of education, social position, and natural intelligence,” by +his removal to the frontier, and his career compared with that of +Hamilton and Dallas, who, like him, foreign born, rose to eminence in +politics, and became secretaries of the treasury of the United States. +But both of these were of English-speak<span class='pagenum'><a name="Page_29" id="Page_29">[Pg 29]</a></span>ing races. No foreigner of any +other race ever obtained such distinction in American politics as Mr. +Gallatin, and he only because he was the choice of a constituency, to +every member of which he was personally known. It is questionable +whether in any other condition of society he could have secured +advancement by election—the true source of political power in all +democracies. John Marshall, afterwards Chief Justice, recognized +Gallatin's talent soon after his arrival in Richmond, offered him a +place in his office without a fee, and assured him of future distinction +in the profession of the law; but Patrick Henry was the more sagacious +counselor; he advised Gallatin to go to the West, and predicted his +success as a statesman. Modest as the beginning seemed in the country he +had chosen, it was nevertheless a start in the right direction, as the +future showed. It was in no sense a mistake.</p> + +<p>Neither did the affairs of the wilderness wholly debar intercourse with +the civilized world. Visiting Richmond every winter, he gradually +extended the circle of his acquaintance, and increased his personal +influence; he also occasionally passed a few weeks at Philadelphia. Two +visits to Maine are recorded in his diary, but whether they were of +pleasure merely does not appear. One was in 1788, in midwinter, by stage +and sleigh. On this excursion he descended the Androscoggin and crossed +Merrymeeting Bay on the ice, returning by the same route in a snowstorm, +which concealed<span class='pagenum'><a name="Page_30" id="Page_30">[Pg 30]</a></span> the banks on either side of the river, so that he +governed his course by the direction of the wind. With the intellect of +a prime minister he had the constitution of a pioneer. On one of these +occasions he intended to visit his old friends and hosts, the +Lesderniers, but the difficulty of finding a conveyance, and the rumor +that the old gentleman was away from home, interfered with his purpose. +He remembered their kindness, and later attempted to obtain pensions for +them from the United States government.</p> + +<p>But the time now arrived when the current of his domestic life was +permanently diverted, and set in other channels. In May, 1789, he +married Sophie Allègre, the daughter of William Allègre of a French +Protestant family living at Richmond. The father was dead, and the +mother took lodgers, of whom Gallatin was one. For more than a year he +had addressed her and secured her affections. Her mother now refused her +consent, and no choice was left to the young lovers but to marry without +it. Little is known of this short but touching episode in Mr. Gallatin's +life. The young lady was warmly attached to him, and the letter written +to her mother asking forgiveness for her marriage is charmingly +expressed and full of feeling. They passed a few happy months at +Friendship Hill, when suddenly she died. From this time Mr. Gallatin +lost all heart in the western venture, and his most earnest wish was to +turn his back forever upon Fayette County. In his suffering he would<span class='pagenum'><a name="Page_31" id="Page_31">[Pg 31]</a></span> +have returned to Geneva to Mademoiselle Pictet, could he have sold his +Virginia lands. But this had become impossible at any price, and he had +no other pecuniary resource but the generosity of his family.</p> + +<p>Meanwhile the revolution had broken out in France. The rights of man had +been proclaimed on the Champ de Mars. All Europe was uneasy and alarmed, +and nowhere offered a propitious field for peaceful labor. But Gallatin +did not long need other distraction than he was to find at home.<span class='pagenum'><a name="Page_32" id="Page_32">[Pg 32]</a></span></p> + +<hr style="width: 65%;" /> +<h2><a name="CHAPTER_II" id="CHAPTER_II"></a>CHAPTER II<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>PENNSYLVANIA LEGISLATURE</h3> + +<p>Political revolutions are the opportunity of youth. In England, Pitt and +Fox; in America, Hamilton and Gouverneur Morris; in Europe, Napoleon and +Pozzo di Borgo, before they reached their thirtieth year, helped to +shape the political destiny of nations. The early maturity of Gallatin +was no less remarkable. In his voluminous correspondence there is no +trace of youth. At nineteen his habits of thought were already formed, +and his moral and intellectual tendencies were clearly marked in his +character, and understood by himself. His tastes also were already +developed. His life, thereafter, was in every sense a growth. The germs +of every excellence, which came to full fruition in his subsequent +career, may be traced in the preferences of his academic days. From +youth to age he was consistent with himself. His mind was of that rare +and original order which, reasoning out its own conclusions, seldom has +cause to change.</p> + +<p>His political opinions were early formed. A letter written by him in +October, 1783, before he had completed his twenty-third year, shows the<span class='pagenum'><a name="Page_33" id="Page_33">[Pg 33]</a></span> +maturity of his intellect, and his analytic habit of thought. An extract +gives the nature of the reasons which finally determined him to make his +home in America:—</p> + +<div class="blockquot"><p>“This is what by degrees greatly influenced my judgment. After my +arrival in this country I was early convinced, upon a comparison of +American governments with that of Geneva, that the latter is +founded on false principles; that the judicial power, in civil as +well as criminal cases, the executive power wholly, and two thirds +of the legislative power being lodged in two bodies which are +almost self-made, and the members of which are chosen for life,—it +is hardly possible but that this formidable aristocracy should, +sooner or later, destroy the equilibrium which it was supposed +could be maintained at Geneva.”</p></div> + +<p>The period from the peace of 1783 to the adoption of the federal +Constitution in 1787 was one of political excitement. The utter failure +of the old Confederation to serve the purposes of national defense and +safety for which it was framed had been painfully felt during the war. +Independence had been achieved under it rather than by it, the patriotic +action of some of the States supplying the deficiencies of others less +able or less willing. By the radical inefficiency of the Confederation +the war had been protracted, its success repeatedly imperiled, and, at +its close, the results gained by it were constantly menaced. The more +perfect union which was the outcome of the deliberations of the federal +convention was therefore joyfully<span class='pagenum'><a name="Page_34" id="Page_34">[Pg 34]</a></span> accepted by the people at large. +Indeed, it was popular pressure, and not the arguments of its advocates, +that finally overcame the formidable opposition in and out of the +convention to the Constitution. No written record remains of Mr. +Gallatin's course during the sessions of the federal convention. He was +not a member of the body, nor is his name connected with any public act +having any bearing upon its deliberations. Of the direction of his +influence, however, there can be no doubt. He had an abiding distrust of +strong government,—a dread of the ambitions of men. Precisely what form +he would have substituted for the legislative and executive system +adopted nowhere appears in his writings, but certainly neither president +nor senate would have been included. They bore too close a resemblance +to king and lords to win his approval, no matter how restricted their +powers. He would evidently have leaned to a single house, with a +temporary executive directly appointed by itself; or, if elected by the +people, then for a short term of office, without renewal; and he would +have reduced its legislative powers to the narrowest possible limit. The +best government he held to be that which governs least; and many of the +ablest of that incomparable body of men who welded this Union held these +views. But the yearning of the people was in the other direction. They +felt the need of government. They wanted the protection of a strong arm. +It must not be forgotten that the thirteen<span class='pagenum'><a name="Page_35" id="Page_35">[Pg 35]</a></span> colonies which declared +their independence in 1776 were all seaboard communities, each with its +port. They were all trading communities. The East, with its fisheries +and timber; the Middle States, with their agricultural products and +peltries; the South, with its tobacco; each saw, in that freedom from +the restrictions of the English navigation laws which the treaty of +peace secured, the promise of a boundless commerce. To protect commerce +there must be a national power somewhere. Since the peace the government +had gained neither the affection of its own citizens nor the respect of +foreign powers.</p> + +<p>The federal Constitution was adopted September 17, 1787. The first State +to summon a convention of ratification was Pennsylvania. No one of the +thirteen original States was more directly interested than herself. The +centre of population lay somewhere in her limits, and there was +reasonable ground for hope that Philadelphia would become once more the +seat of government. The delegates met at Philadelphia on November 2. An +opposition declared itself at the beginning of the proceedings. +Regardless of the popular impatience, the majority allowed full scope to +adverse argument, and it was not until December 12 that the final vote +was taken and the Constitution ratified, without recommendations, by a +majority of two to one. In this body Fayette County was represented by +Nicholas Breading and John Smilie. The latter gentleman, of Scotch-Irish +birth, an<span class='pagenum'><a name="Page_36" id="Page_36">[Pg 36]</a></span> adroit debater, led the opposition. In the course of his +criticisms he enunciated the doctrines which were soon to become a party +cry; the danger of the Constitution “in inviting rather than guarding +against the approaches of tyranny;” “its tendency to a consolidation, +not a confederation, of the States.” Mr. Gallatin does not appear to +have sought to be a delegate to this body, but his hand may be traced +through the speeches of Smilie in the precision with which the +principles of the opposition were formulated and declared; and his +subsequent course plainly indicates that his influence was exerted in +the interest of the dissatisfied minority. The ratification was received +by the people with intense satisfaction, but the delay in debate lost +the State the honor of precedence in the honorable vote of +acquiescence,—the Delaware convention having taken the lead by a +unanimous vote. For the moment the Pennsylvania Anti-Federalists clung +to the hope that the Constitution might yet fail to receive the assent +of the required number of States, but as one after another fell into +line, this hope vanished.</p> + +<p>One bold expedient remained. The ratification of some of the States was +coupled with the recommendation of certain amendments. Massachusetts led +the way in this, Virginia followed, and New York, which, in the language +of the day, became the eleventh pillar of the federal edifice, on July +26, 1788, accompanied her ratification with a circular letter to the +governors of all the<span class='pagenum'><a name="Page_37" id="Page_37">[Pg 37]</a></span> States, recommending that a general convention be +called.<a name="FNanchor_1_1" id="FNanchor_1_1"></a><a href="#Footnote_1_1" class="fnanchor">[1]</a></p> + +<p>The argument taken in this letter was the only one which had any chance +of commending itself to popular favor. It was in these words: “that the +apprehension and discontents which the articles occasion cannot be +removed or allayed unless an act to provide for the calling of a new +convention be among the first that shall be passed by the next +Congress.” This document, made public at once, encouraged the +Pennsylvania Anti-Federalists to a last effort to bring about a new +convention, to undo or radically alter the work of the old. A conference +held at Harrisburg, on September 3, 1788, was participated in by +thirty-three gentlemen, from various sections of the State, who +assembled in response to the call of a circular letter which originated +in the county of Cumberland in the month of August. The city of +Philadelphia and thirteen counties were represented; six of the +dissenting members of the late convention were present, among whom was +Smilie. He and Gallatin represented the county of Fayette.</p> + +<p>Smilie, Gallatin's earliest political friend, was born in 1742, and was +therefore about twenty years his senior. He came to the United States in +youth, and had grown up in the section he now represented. His +popularity is shown by his ser<span class='pagenum'><a name="Page_38" id="Page_38">[Pg 38]</a></span>vice in the state legislature, and during +twelve years in Congress as representative or as senator. In any +estimate of Mr. Gallatin, this early influence must be taken into +account. The friendship thus formed continued until Smilie's death in +1816. From the adviser he became the ardent supporter of Mr. Gallatin.</p> + +<p>Blair McClanachan, of Philadelphia County, was elected chairman of the +conference. The result of this deliberation was a report in the form of +a series of resolutions, of which two drafts, both in Mr. Gallatin's +handwriting, are among his papers now in the keeping of the New York +Historical Society. The original resolutions were broad in scope, and +suggested a plan of action of a dual nature; the one of which failing, +resort could be had to the other without compromising the movement by +delay. In a word, it proposed an opposition by a party organization. The +first resolution was adroitly framed to avoid the censure with which the +people at large, whose satisfaction with the new Constitution had grown +with the fresh adhesions of State after State to positive enthusiasm, +would surely condemn any attempt to dissolve the Union formed under its +provisions. This resolution declared that it was in order to <i>prevent</i> a +dissolution of the Union and to secure liberty, that a revision was +necessary. The second expressed the opinion of the conference to be, +that the safest manner to obtain such revision was to conform to the +request of the State of New York,<span class='pagenum'><a name="Page_39" id="Page_39">[Pg 39]</a></span> and to urge the calling of a new +convention, and recommended that the Pennsylvania legislature be +petitioned to apply for that purpose to the new Congress. These were +declaratory. The third and fourth provided, first, for an organization +of committees in the several counties to correspond with each other and +with similar committees in other States; secondly, invited the friends +to amendments in the several States to meet in conference at a fixed +time and place. This plan of committees of correspondence and of a +meeting of delegates was simply a revival of the methods of the Sons of +Liberty, from whose action sprung the first Continental Congress of +1774.</p> + +<p>The formation of such an organization would surely have led to +disturbance, perhaps to civil war. During the progress of the New York +convention swords and bayonets had been drawn, and blood had been shed +in the streets of Albany, where the Anti-Federalists excited popular +rage by burning the new Constitution. But the thirty-three gentlemen who +met at Harrisburg wisely tempered these resolutions to a moderate tone. +Thus modified, they recommended, first, that the people of the State +should acquiesce in the organization of the government, while holding in +view the necessity of very considerable amendments and alterations +essential to preserve the peace and harmony of the Union. Secondly, that +a revision by general convention was necessary. Thirdly, that the +legislature should be requested to apply to<span class='pagenum'><a name="Page_40" id="Page_40">[Pg 40]</a></span> Congress for that purpose. +The petition recommended twelve amendments, selected from those already +proposed by other States. These were of course restrictive. The report +was made public in the “Pennsylvania Packet” of September 15. With this +the agitation appears to have ceased. On September 13 Congress notified +the States by resolution to appoint electors under the provisions of the +Constitution. The unanimous choice of Washington as president hushed all +opposition, and for a time the Anti-Federalists sunk into +insignificance.</p> + +<p>The persistent labors of the friends of revision were not without +result. The amendments proposed by Virginia and New York were laid +before the House of Representatives. Seventeen received the two thirds +vote of the House. After conference with the Senate, in which Mr. +Madison appeared as manager for the House, these, reduced in number to +twelve by elimination and compression, were adopted by the requisite two +thirds vote, and transmitted to the legislatures of the States for +approval. Ratified by a sufficient number of States, they became a part +of the Constitution. They were general, and declaratory of personal +rights, and in no instance restrictive of the power of the general +government.</p> + +<p>In 1789, the Assembly of Pennsylvania calling a convention to revise the +Constitution of the State, Mr. Gallatin was sent as a delegate from +Fayette County. To the purposes of this conven<span class='pagenum'><a name="Page_41" id="Page_41">[Pg 41]</a></span>tion he was opposed, as a +dangerous precedent. He had endeavored to organize an opposition to it +in the western counties, by correspondence with his political friends. +His objections were the dangers of alterations in government, and the +absurdity of the idea that the Constitution ever contemplated a change +by the will of a mere majority. Such a doctrine, once admitted, would +enable not only the legislature, but a majority of the more popular +house, were two established, to make another appeal to the people on the +first occasion, and, instead of establishing on solid foundations a new +government, would open the door to perpetual change, and destroy that +stability which is essential to the welfare of a nation; since no +constitution acquires the permanent affection of the people, save in +proportion to its duration and age. Finally, such changes would sooner +or later conclude in an appeal to arms,—the true meaning of the popular +and dangerous words, “an appeal to the people.” The opposition was begun +too late, however, to admit of combined effort, and was not persisted +in; and Mr. Gallatin himself, with practical good sense, consented to +serve as a delegate. Throughout his political course the pride of +mastery never controlled his actions. When debarred from leadership he +did not sulk in his tent, but threw his weight in the direction of his +principles. The convention met at Philadelphia on November 24, 1789, and +closed its labors on September 2, 1790. This was Galla<span class='pagenum'><a name="Page_42" id="Page_42">[Pg 42]</a></span>tin's +apprenticeship in the public service. Among his papers are a number of +memoranda, some of them indicating much elaboration of speeches made, or +intended to be made, in this body. One is an argument in favor of +enlarging the representation in the House; another is against a plan of +choosing senators by electors; another concerns the liberty of the +press. There is, further, a memorandum of his motion in regard to the +right of suffrage, by virtue of which “every freeman who has attained +the age of twenty-one years, and been a resident and inhabitant during +one year next before the day of election, every naturalized freeholder, +every naturalized citizen who had been assessed for state or county +taxes for two years before election day, or who had resided ten years +successively in the State, should be entitled to the suffrage, paupers +and vagabonds only being excluded.” Certainly, in his conservative +limitations upon suffrage, he did not consult his own interest as a +large landholder inviting settlement, nor pander to the natural desires +of his constituency.</p> + +<p>In an account of this convention, written at a later period, Mr. +Gallatin said that it was the first public body to which he was elected, +and that he took but a subordinate share in the debates; that it was one +of the ablest bodies of which he was ever a member, and with which he +was acquainted, and, excepting Madison and Marshall, that it embraced as +much talent and knowledge as any Congress from 1795 to 1812, beyond +which<span class='pagenum'><a name="Page_43" id="Page_43">[Pg 43]</a></span> his personal knowledge did not extend. Among its members were +Thomas McKean, signer of the Declaration of Independence and president +of the Continental Congress, Thomas Mifflin and Timothy Pickering, of +the Revolutionary army, and Smilie and Findley, Gallatin's political +friends. General Mifflin was its president.</p> + +<p>But mental distraction brought Mr. Gallatin no peace of heart at this +period, and when the excitement of the winter was over he fell into a +state of almost morbid melancholy. To his friend Badollet he wrote from +Philadelphia, early in March, that life in Fayette County had no more +charms for him, and that he would gladly leave America. But his lands +were unsalable at any price, and he saw no means of support at Geneva. +Some one has said, with a profound knowledge of human nature, that no +man is sure of happiness who has not the capacity for continuous labor +of a disagreeable kind. The occasional glimpses into Mr. Gallatin's +inner nature, which his correspondence affords, show that up to this +period he was not supposed by his friends or by himself to have this +capacity. In the letter which his guardian wrote to him after his flight +from home, he was reproached with his “natural indolence.” His good +friend, Mademoiselle Pictet, accused him of being hard to please, and +disposed to <i>ennui</i>; and again, as late as 1787, repeats to him, in a +tone of sorrow, the reports brought to her of his “continuance in his +old habit of indolence,” his indif<span class='pagenum'><a name="Page_44" id="Page_44">[Pg 44]</a></span>ference to society, his neglect of +his dress, and general indifference to everything but study and reading, +tastes which, she added, he might as well have cultivated at Geneva as +in the new world; and he himself, in the letter to Badollet just +mentioned, considers that his habits and his laziness would prove +insuperable bars to his success in any profession in Europe. In +estimation of this self-condemnation, it must be borne in mind that the +Genevans were intellectual Spartans. Gallatin must be measured by that +high standard. But if the charge of indolence could have ever justly +lain against Gallatin,—a charge which his intellectual vigor at +twenty-seven seems to challenge,—it certainly could never have been +sustained after he fairly entered on his political and public career. In +October, 1790, he was elected by a two thirds majority to represent +Fayette County in the legislature of the State of Pennsylvania; James +Findley was his colleague, John Smilie being advanced to the state +Senate. Mr. Gallatin was reëlected to the Assembly in 1791 and 1792, +without opposition.</p> + +<p>Among his papers there is a memorandum of his legislative service during +these three years, and a manuscript volume of extracts from the Journals +of the House, from January 14, 1791, to December 17, 1794. They form +part of the extensive mass of documents and letters which were collected +and partially arranged by himself, with a view to posthumous +publication. Here is an extract from the memorandum:<span class='pagenum'><a name="Page_45" id="Page_45">[Pg 45]</a></span>—</p> + +<div class="blockquot"><p>“I acquired an extraordinary influence in that body [the +Pennsylvania House of Representatives]; the more remarkable as I +was always in a party minority. I was indebted for it to my great +industry and to the facility with which I could understand and +carry on the current business. The laboring oar was left almost +exclusively to me. In the session of 1791-1792, I was put on +thirty-five committees, prepared all their reports, and drew all +their bills. Absorbed by those details, my attention was turned +exclusively to administrative laws, and not to legislation properly +so called.... I failed, though the bill I had introduced passed the +House, in my efforts to lay the foundation for a better system of +education. Primary education was almost universal in Pennsylvania, +but very bad, and the bulk of schoolmasters incompetent, miserably +paid, and held in no consideration. It appeared to me that in order +to create a sufficient number of competent teachers, and to raise +the standard of general education, intermediate academical +education was an indispensable preliminary step, and the object of +the bill was to establish in each county an academy, allowing to +each out of the treasury a sum equal to that raised by taxation in +the county for its support. But there was at that time in +Pennsylvania a Quaker and a German opposition to every plan of +general education.</p> + +<p>“The spirit of internal improvements had not yet been awakened. +Still, the first turnpike-road in the United States was that from +Philadelphia to Lancaster, which met with considerable opposition. +This, as well as every temporary improvement in our communications +(roads and rivers) and preliminary surveys, met, of course, with my +warm support. But it was in the fiscal<span class='pagenum'><a name="Page_46" id="Page_46">[Pg 46]</a></span> department that I was +particularly employed, and the circumstances of the times favored +the restoration of the finances of the State.</p> + +<p>“The report of the Committee of Ways and Means of the session +1790-91 was entirely prepared by me, known to be so, and laid the +foundation of my reputation. I was quite astonished at the general +encomiums bestowed upon it, and was not at all aware that I had +done so well. It was perspicuous and comprehensive; but I am +confident that its true merit, and that which gained me the general +confidence, was its being founded in strict justice, without the +slightest regard to party feelings or popular prejudices. The +principles assumed, and which were carried into effect, were the +immediate reimbursement and extinction of the state paper-money, +the immediate payment in specie of all the current expenses, or +warrants on the treasury (the postponement and uncertainty of which +had given rise to shameful and corrupt speculations), and provision +for discharging without defalcation every debt and engagement +previously recognized by the State. In conformity with this, the +State paid to its creditors the difference between the nominal +amount of the state debt assumed by the United States and the rate +at which it was funded by the act of Congress.</p> + +<p>“The proceeds of the public lands, together with the arrears, were +the fund which not only discharged all the public debts, but left a +large surplus. The apprehension that this would be squandered by +the legislature was the principal inducement for chartering the +Bank of Pennsylvania, with a capital of two millions of dollars, of +which the State subscribed one half. This, and similar subsequent +investments, enabled Pennsylvania to<span class='pagenum'><a name="Page_47" id="Page_47">[Pg 47]</a></span> defray, out of the dividends, +all the expenses of government without any direct tax during the +forty ensuing years, and till the adoption of the system of +internal improvement, which required new resources.</p> + +<p>“It was my constant assiduity to business, and the assistance +derived from it by many members, which enabled the Republican party +in the legislature, then a minority on a joint ballot, to elect me, +and no other but me of that party, senator of the United States.”</p></div> + +<p>Among the reports enumerated by Mr. Gallatin, as those of which he was +the author, is one made by a committee on March 22, 1793, that they ... +are of opinion slavery is inconsistent with every principle of humanity, +justice, and right, and repugnant to the spirit and express letter of +the Constitution of the Commonwealth. Added to this was a resolution for +its abolition in the Commonwealth.</p> + +<p>The seat of government was changed from New York to Philadelphia in +1790, and the first Congress assembled there in the early days of +December for its final session. Philadelphia was in glee over the +transfer of the departments. The convention which framed the new state +Constitution met here in the fall, and the legislature was also holding +its sessions. The atmosphere was political. The national and local +representatives met each other at all times and in all places, and the +public affairs were the chief topic in and out of doors. In this busy +whirl Gallatin made many friends, but Philadelphia was no more to his +taste<span class='pagenum'><a name="Page_48" id="Page_48">[Pg 48]</a></span> as a residence than Boston. He was disgusted with the +ostentatious display of wealth, the result not of industry but of +speculation, and not in the hands of the most deserving members of the +community. Later he became more reconciled to the tone of Pennsylvania +society, comparing it with that of New York; he was especially pleased +with its democratic spirit, and the absence of <i>family influence</i>. “In +Pennsylvania,” he says, “not only we have neither Livingstons, nor +Rensselaers, but from the suburbs of Philadelphia to the banks of the +Ohio I do not know a single family that has any extensive influence. An +equal distribution of property has rendered every individual +independent, and there is amongst us true and real equality. In a word, +as I am lazy, I like a country where living is cheap; and as I am poor, +I like a country where no person is very rich.”</p> + +<p>Hamilton's excise bill was a bone of contention in the national and +state legislatures throughout the winter. Direct taxation upon anything +was unpopular, that on distilled spirits the most distasteful to +Pennsylvania, where whiskey stills were numerous in the Alleghanies. To +the bill introduced into Congress a reply was immediately made January +14, 1791, by the Pennsylvania Assembly in a series of resolutions which +are supposed to have been drafted by Mr. Gallatin, and to have been the +first legislative paper from his pen. They distinctly charged that the +obnoxious bill was “subversive of the peace, liberty, and rights of the +citizen.”<span class='pagenum'><a name="Page_49" id="Page_49">[Pg 49]</a></span></p> + +<p>Tax by excise has always been offensive to the American people, as it +was to their ancestors across the sea. It was characterized by the first +Continental Congress of 1774 as “the horror of all free States.” +Notwithstanding their warmth, these resolutions passed the Assembly by a +vote of 40 to 16. The course of this excitement must be followed; as it +swept Mr. Gallatin in its mad current, and but for his self-control, +courage, and adroitness would have wrecked him on the breakers at the +outset of his political voyage. The excise law passed Congress on March +3, 1791. On June 22 the state legislature, by a vote of 36 to 11, +requested their senators and representatives in Congress to oppose every +part of the bill which “shall militate against the rights and liberties +of the people.”</p> + +<p>The western counties of Pennsylvania—Westmoreland, Fayette, Washington, +and Allegheny—lie around the head-waters of the Ohio in a radius of +more than a hundred miles. At this time they contained a population of +about seventy thousand souls. Pittsburgh, the seat of justice, had about +twelve hundred inhabitants. The Alleghany Mountains separate this wild +region from the eastern section of the State. There were few roads of +any kind, and these lay through woods. The mountain passes could be +traveled only on foot or horseback. The only trade with the East was by +pack-horses, while communication with the South was cut off by hostile +Indian tribes who<span class='pagenum'><a name="Page_50" id="Page_50">[Pg 50]</a></span> held the banks of the Ohio. This isolation from the +older, denser, and more civilized settlements bred in the people a +spirit of self-reliance and independence. They were in great part +Scotch-Irish Presbyterians, a religious and warlike race to whom the +hatred of an exciseman was a tradition of their forefathers. Having no +market for their grain, they were compelled to preserve it by converting +it into whiskey. The still was the necessary appendage of every farm. +The tax was light, but payable in money, of which there was little or +none. Its imposition, therefore, coupled with the declaration of its +oppressive nature by the Pennsylvania legislature, excited a spirit of +determined opposition near akin to revolution.</p> + +<p>Unpopular in all the western part of the State, Hamilton's bill was +especially odious to the people of Washington County. The first meeting +in opposition to it was held at Red Stone Old Fort or Brownsville, the +site of one of those ancient remains of the mound-builders which abound +in the western valleys. It was easily reached by Braddock's Road, the +chief highway of the country. Here gathered on July 27, 1791, a number +of persons opposed to the law, when it was agreed that county committees +should be convened in the four counties at the respective seats of +justice. Brackenridge, in his “Incidents of the Western Insurrection,” +says that Albert Gallatin was clerk of the meeting. One of these +committees met in the town of Washington on August 23, when vio<span class='pagenum'><a name="Page_51" id="Page_51">[Pg 51]</a></span>lent +resolutions were adopted. Gallatin, engaged at Philadelphia, was not +present at this assemblage, three of whose members were deputed to meet +delegates from the counties of Westmoreland, Fayette, and Allegheny, at +Pittsburgh, on the first Tuesday in September following, to agree upon +an address to the legislature on the subject of excise and other +grievances. At the Pittsburgh meeting eleven delegates appeared for the +four counties. The resolutions adopted by them, general in character, +read more like a declaration of grievances as a basis for revolution +than a petition for special redress. No wonder that the secretary of the +treasury stigmatized them as “intemperate.” They charge that in the laws +of the late Congress hasty strides had been made to all that was unjust +and oppressive. They complain of the increase in the salaries of +officials, of the unreasonable interest of the national debt, of the +non-discrimination between original holders and transferees of the +public securities, of the National Bank as a base offspring of the +funding system; finally, in detail, of the excise law of March 3, 1791. +At this meeting James Marshall and David Bradford represented Washington +County.</p> + +<p>In August government offices of inspection were opened. The spirit of +resistance was now fully aroused, and in the early days of September the +collectors for Washington, Westmoreland, and Fayette were treated with +violence. Unwilling to proceed to excessive measures, and no doubt<span class='pagenum'><a name="Page_52" id="Page_52">[Pg 52]</a></span> +swayed by the attitude of the Pennsylvania legislature, Congress in +October referred the law back to Hamilton for revision. He reported an +amended act on March 6, 1792, which was immediately passed, and became a +law March 8. It was to take effect on the last day of June succeeding. +By it the rate of duty was reduced, a privilege of time as to the +running of licenses of stills granted, and the tax ordered only for such +time as they were actually used.</p> + +<p>But these modifications did not satisfy the malcontents of the four +western counties, and they met again on August 21, 1792, at Pittsburgh. +Of this second Pittsburgh meeting Albert Gallatin was chosen secretary. +Badollet went up with Gallatin. John Smilie, James Marshall, and James +Bradford of Washington County were present. Bradford, Marshall, +Gallatin, and others were appointed to draw up a remonstrance to +Congress. In order to carry out with regularity and concert the measures +agreed upon, a committee of correspondence was appointed, and the +meeting closed with the adoption of the violent resolutions passed at +the Washington meeting of 1791:—</p> + +<div class="blockquot"><p>“Whereas, some men may be found among us so far lost to every sense +of virtue and feeling for the distresses of this country as to +accept offices for the collection of the duty.</p> + +<p>“Resolved, therefore, that in future we will consider such persons +as unworthy of our friendship; have no intercourse or dealings with +them; withdraw from them<span class='pagenum'><a name="Page_53" id="Page_53">[Pg 53]</a></span> every assistance, and withhold all the +comforts of life which depend upon those duties that as men and +fellow citizens we owe to each other; and upon all occasions treat +them with that contempt they deserve; and that it be, and it is +hereby, most earnestly recommended to the people at large, to +follow the same line of conduct towards them.”</p></div> + +<p>If such an excommunication were to be meted out to an offending +neighbor, what measure would the excise man receive if he came from +abroad on his unwelcome errand?</p> + +<p>These resolutions were signed by Mr. Gallatin as clerk, and made public +through the press. Resolutions of this character, if not criminal, reach +the utmost limit of indiscretion, and political indiscretion is quite as +dangerous as crime. The petition to Congress, subscribed by the +inhabitants of western Pennsylvania, was drawn by Gallatin; while +explicit in terms, it was moderate in tone. It represented the unequal +operation of the act. “A duty laid on the common drink of a nation, +instead of taxing the citizens in proportion to their property, falls as +heavy on the poorest class as on the rich;” and it ingeniously pointed +out that the distance of the inhabitants of the western counties from +market prevented their bringing the produce of their lands to sale, +either in grain or meal. “We are therefore distillers through necessity, +not choice; that we may comprehend the greatest value in the smallest +size and weight.”</p> + +<p>Hamilton, indignant, reported the proceedings<span class='pagenum'><a name="Page_54" id="Page_54">[Pg 54]</a></span> to the President on +September 9, 1792, and demanded instant punishment. Washington, who was +at Mount Vernon, was unwilling to go to extremes, but consented to issue +a proclamation, which, drafted by Hamilton, and countersigned by +Jefferson, was published September 15, 1792. It earnestly admonished all +persons to desist from unlawful combinations to obstruct the operations +of the laws, and charged all courts, magistrates, and officers with +their enforcement. There was no mistaking Hamilton's intention to +enforce the law. Prosecutions in the Circuit Court, held at Yorktown in +October, were ordered against the Pittsburgh offenders, but no proof +could be had to sustain an indictment.</p> + +<p>The President's proclamation startled the western people, and some +uneasiness was felt as to how such of their representatives as had taken +part in the Pittsburgh meeting would be received when they should go up +to the legislature in the winter. Bradford and Smilie accompanied +Gallatin; Smilie to take his seat in the state Senate, and Bradford to +represent Washington County in the House, where he “cut a poor figure.” +Gallatin despised him, and characterized him as a “tenth-rate lawyer and +an empty drum.” Gallatin found, however, that although the Pittsburgh +meeting had hurt the general interest of his party throughout the State, +and “rather defeated” the repeal of the excise law, his eastern friends +did not turn the cold shoulder to him. He said to<span class='pagenum'><a name="Page_55" id="Page_55">[Pg 55]</a></span> every one whom he +knew that the resolutions were perhaps too violent and undoubtedly +highly impolitic, but, in his opinion, contained nothing illegal. +Meanwhile federal officers proceeded to enforce the law in Washington +County. A riot ensued, and the office was forcibly closed. Bills were +found against two of the offenders in the federal court, and warrants to +arrest and bring them to Philadelphia for trial were issued. Gallatin +believed the men innocent, and did not hesitate to advise Badollet to +keep them out of the way when the marshal should go to serve the writs, +but deprecated any insult to the officer. He thought “the precedent a +very dangerous one to drag people such a distance in order to be tried +on governmental prosecutions.” Here the matter rested for a season.</p> + +<p>At this session of the legislature Gallatin introduced a new system of +county taxation, proposed a clause providing for “trustees yearly +elected, one to each township, without whose consent no tax is to be +raised, nor any above one per cent. on the value of lands,” which he +hoped would “tend to crush the aristocracy of every town in the State.” +Also he proposed a plan to establish a school and library in each +county, with a sufficient immediate sum in money, and a yearly allowance +for a teacher in the English language.<span class='pagenum'><a name="Page_56" id="Page_56">[Pg 56]</a></span></p> + +<div class="footnotes"><h3>FOOTNOTES:</h3> + +<div class="footnote"><p><a name="Footnote_1_1" id="Footnote_1_1"></a><a href="#FNanchor_1_1"><span class="label">[1]</span></a> The drafting of this letter was, notwithstanding his +protest, intrusted to John Jay, one of the strongest of the Federal +leaders, and a warm supporter of the Constitution as it stood.</p></div> +</div> + +<hr style="width: 65%;" /> +<h2><a name="CHAPTER_III" id="CHAPTER_III"></a>CHAPTER III<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>UNITED STATES SENATE</h3> + +<p>The death of the grandfather of Mr. Gallatin, and soon after of his +aunt, strongly tempted him to make a journey to Geneva in the summer of +1793. The political condition of Europe at that time was of thrilling +interest. On January 21 the head of Louis XVI. fell under the +guillotine, to which Marie Antoinette soon followed him. The armies of +the coalition were closing in upon France. Of the political necessity +for these state executions there has always been and will always be +different judgments. That of Mr. Gallatin is of peculiar value. It is +found expressed in intimate frankness in a letter to his friend +Badollet, written at Philadelphia, February 1, 1794.</p> + +<div class="blockquot"><p>“France at present offers a spectacle unheard of at any other +period. Enthusiasm there produces an energy equally terrible and +sublime. All those virtues which depend upon social or family +affections, all those amiable weaknesses, which our natural +feelings teach us to love or respect, have disappeared before the +stronger, the only, at present, powerful passion, the <i>Amor +Patriæ</i>. I must confess my soul is not enough steeled, not +sometimes to shrink at the dreadful executions which have<span class='pagenum'><a name="Page_57" id="Page_57">[Pg 57]</a></span> restored +at least apparent internal tranquillity to that republic. Yet upon +the whole, as long as the combined despots press upon every +frontier, and employ every engine to destroy and distress the +interior parts, I think they, and they alone, are answerable for +every act of severity or injustice, for every excess, nay for every +crime, which either of the contending parties in France may have +committed.”</p></div> + +<p>Within a few years the publication of the correspondence of De Fersen, +the agent of the king and queen, has supplied the proof of the charge +that they were in secret correspondence with the allied sovereigns to +introduce foreign troops upon the soil of France,—a crime which no +people has ever condoned.</p> + +<p>The French Revolution, which from its beginning in 1789 reacted upon the +United States with fully the force that the American Revolution exerted +upon France, had become an important factor in American politics. The +intemperance of Genet, the minister of the French Convention to the +United States on the one hand, and the breaches of neutrality by England +on the other, were dividing the American people into English and French +parties. The Federalists sympathized with the English, the late enemies, +and the Republicans with the French, the late allies, of the United +States.</p> + +<p>Mr. Gallatin had about made up his mind to visit Europe, when an +unexpected political honor changed his plans. The Pennsylvania +legislature<span class='pagenum'><a name="Page_58" id="Page_58">[Pg 58]</a></span> elected him a senator of the United States on joint ballot, +a distinction the more singular in that the legislature was Federalist +and Mr. Gallatin was a representative of a Republican district, and +strong in that faith. Moreover, he was not a candidate either of his own +motion or by that of his friends, but, on the contrary, had doubts as to +his eligibility because of insufficient residence. This objection, which +he himself stated in caucus, was disregarded, and on February 28, 1793, +by a vote of 45 to 37, he was chosen senator. Mr. Gallatin had just +completed his thirty-second year, and now a happy marriage came +opportunely to stimulate his ambition and smooth his path to other +honors.</p> + +<p>Among the friends made at Philadelphia was Alexander J. Dallas, a +gentleman two years Gallatin's senior, whose career, in some respects, +resembled his own. He was born in Jamaica, of Scotch parents; had been +thoroughly educated at Edinburgh and Westminster, and, coming to the +United States in 1783, had settled in Philadelphia. He now held the post +of secretary of state for Pennsylvania. Mr. Gallatin's constant +committee service brought him into close relations with the secretary, +and the foundation was laid of a lasting political friendship and social +intimacy. In the recess of the legislature, Mr. Gallatin joined Mr. +Dallas and his wife in an excursion to the northward. Mr. Gallatin's +health had suffered from close confinement and too strict attention to<span class='pagenum'><a name="Page_59" id="Page_59">[Pg 59]</a></span> +business, and he needed recreation and diversion. In the course of the +journey the party was joined by some ladies, friends of Mrs. Dallas, +among whom was Miss Hannah Nicholson. The excursion lasted nearly four +weeks. The result was that Mr. Gallatin returned to Philadelphia the +accepted suitor of this young lady. He describes her in a letter to +Badollet as “a girl about twenty-five years old, who is neither handsome +nor rich, but sensible, well-informed, good-natured, and belonging to a +respectable and very amiable family.” Nor was he mistaken in his +choice,—a more charming nature, a more perfect, well-rounded character +than hers is rarely found. They were married on November 11, 1793. She +was his faithful companion throughout his long and honorable career, and +death separated them but by a few months. This alliance greatly widened +his political connection.</p> + +<p>Commodore James Nicholson, his wife's father, famous in the naval annals +of the United States as the captain of the Trumbull, the first of +American frigates, at the time resided in New York, and was one of the +acknowledged leaders of the Republican party in the city. His two +brothers—Samuel and John—were captains in the naval service. His two +elder daughters were married to influential gentlemen;—Catharine to +Colonel Few, senator from Georgia; Frances, to Joshua Seney, member of +Congress from Maryland; Maria later (1809) married John Montgomery, who +had<span class='pagenum'><a name="Page_60" id="Page_60">[Pg 60]</a></span> been member of Congress from Maryland, and was afterwards mayor of +Baltimore. A son, James Witter Nicholson, then a youth of twenty-one, +was, in 1795, associated with Mr. Gallatin in his Western Company, and, +removing to Fayette, made his home in what was later and is now known as +New Geneva. Here, in connection with Mr. Gallatin and the brothers +Kramer, Germans, he established extensive glass works, which proved +profitable.</p> + +<hr style='width: 45%;' /> + +<p>Mr. Gallatin's election to the United States Senate did not disqualify +him for his unfinished legislative term, and, on his return to +Philadelphia, he was again plunged in his manifold duties. The few days +which intervened between his marriage and the meeting of Congress—a +short honeymoon—were spent under the roof of Commodore Nicholson in New +York.</p> + +<p>On February 28, 1793, the Vice-President laid before the Senate a +certificate from the legislature of the Commonwealth of Pennsylvania to +the election of Albert Gallatin as senator of the United States. Mr. +Gallatin took his seat December 2, 1793. The business of the session was +opened by the presentation of a petition signed by nineteen individuals +of Yorktown, Pennsylvania, stating that Mr. Gallatin had not been nine +years a citizen of the United States. This petition had been handed to +Robert Morris, Mr. Gallatin's colleague for Pennsylvania, by a member of +the legislature<span class='pagenum'><a name="Page_61" id="Page_61">[Pg 61]</a></span> for the county of York, but he had declined to present +it, and declared to Mr. Gallatin his intention to be perfectly neutral +on the occasion—at least so Mr. Gallatin wrote to his wife the next +day; but Morris did not hold fast to this resolution, as the votes in +the sequel show. The petition was ordered to lie upon the table. On +December 11 Messrs. Rutherford, Cabot, Ellsworth, Livermore, and +Mitchell were appointed a committee to consider the petition. These +gentlemen, Gallatin wrote, were undoubtedly “the worst for him that +could have been chosen, and did not seem to him to be favorably +disposed.” He himself considered the legal point involved as a nice and +difficult one, and likely to be decided by a party vote. The fourth +article of the Constitution of the first Confederation of the United +States reads as follows:—</p> + +<div class="blockquot"><p>“The better to secure and perpetuate mutual friendship and +intercourse among the people of the different States in this Union, +the free inhabitants of each of these States, paupers, vagabonds, +and fugitives from justice excepted, shall be entitled to all +privileges and immunities of free citizens in the several States.”</p></div> + +<p>Article 1, section 3, of the new Constitution declares:—</p> + +<div class="blockquot"><p>“No person shall be a senator who shall not have attained to the +age of thirty years, and been nine years a citizen of the United +States, and who shall not, when elected, be an inhabitant of that +State for which he shall be chosen.”<span class='pagenum'><a name="Page_62" id="Page_62">[Pg 62]</a></span></p></div> + +<p>Mr. Gallatin landed in Massachusetts in July, 1780, while still a minor. +His residence, therefore, which had been uninterrupted, extended over +thirteen years. He took the oath of citizenship and allegiance to +Virginia in October, 1785, since which, until his election in 1793, nine +years, the period called for by the United States Constitution, had not +elapsed. On the one hand, his actual residence exceeded the required +period of citizenship; on the other, his legal and technical residence +as a citizen was insufficient. In point of fact, his intention to become +a citizen dated from the summer of 1783.</p> + +<p>To take from the case the air of party proscription, which it was +beginning to assume, the Senate discharged its special committee, and +raised a general committee on elections to consider this and other +cases. On February 10, 1794, the report of this committee was submitted, +and a day was set for a hearing by the Senate, with open doors. On that +day Mr. Gallatin exhibited a written statement of facts, agreed to +between himself and the petitioners, and the case was left to the Senate +on its merits. On the 28th a test vote was taken upon a motion to the +effect that “Albert Gallatin, returned to this House as a member for the +State of Pennsylvania, is duly qualified for and elected to a seat in +the Senate of the United States,” and it was decided in the +negative—yeas, 12; nays, 14.<span class='pagenum'><a name="Page_63" id="Page_63">[Pg 63]</a></span><a name="FNanchor_2_2" id="FNanchor_2_2"></a><a href="#Footnote_2_2" class="fnanchor">[2]</a></p> + +<p>Motion being made that the election of Albert Gallatin to be a senator +of the United States was void,—he not having been a citizen of the +United States for the term of years required as a qualification to be a +senator of the United States,—it was further moved to divide the +question at the word “void;” and the question being then taken on the +first paragraph, it passed in the affirmative—yeas, 14; nays, 12. The +yeas and nays were required, and the Senate divided as before. The +resolution was then put and adopted by the same vote. Thus Mr. Gallatin, +thirteen years a resident of the country, a large land-holder in +Virginia, and for several terms a member of the Pennsylvania +legislature, was excluded from a seat in the Senate of the United +States.</p> + +<p>Mr. Gallatin conducted his case with great dignity. On being asked +whether he had any testimony to produce, he replied, in writing, that +there was not sufficient matter charged in the petition and proved by +the testimony to vacate his seat, and declined to go to the expense of +collecting evidence until that preliminary question was settled.</p> + +<p>Short as the period was during which Mr. Gallatin held his seat, it was +long enough for him<span class='pagenum'><a name="Page_64" id="Page_64">[Pg 64]</a></span> seriously to annoy the Federal leaders. Indeed, it +is questionable whether, if he had delayed his embarrassing motion, a +majority of the Senate could have been secured against him. Certain it +is that the Committee on Elections, appointed on December 11, did not +send in its report until the day after Mr. Gallatin moved his +resolution, calling upon the secretary of the treasury for an elaborate +statement of the debt on January 1, 1794, under distinct heads, +including the balances to creditor States, a statement of loans, +domestic and foreign, contracted from the beginning of the government, +statements of exports and imports; finally for a summary statement of +the receipts and expenditures to the last day of December, 1790, +<i>distinguishing the moneys received under each branch of the revenue and +the moneys expended under each of the appropriations, and stating the +balances of each branch of the revenue remaining unexpended on that +day</i>, and also calling for similar and separate statements for the years +1791, 1792, 1793. This resolution, introduced on January 8, was laid +over. On the 20th it was adopted. It was not until February 10 that a +reply from the secretary of the treasury was received by the Senate, and +on the 11th submitted to Gallatin, Ellsworth, and Taylor for +consideration and report. In this letter (February 6, 1794) Hamilton +stated the difficulty of supplying the precise information called for, +with the clerical forces of the department, the interruption it would +cause in the<span class='pagenum'><a name="Page_65" id="Page_65">[Pg 65]</a></span> daily routine of the service, and deprecated the practice +of such unexpected demands.</p> + +<p>With this response of the secretary the inquiry fell to the ground, but +it was neither forgotten nor forgiven by his adherents, and Mr. Gallatin +paid the penalty on at least one occasion. This was years later, when he +himself was secretary of the treasury. On March 2, 1803, the day before +the adjournment of Congress, Mr. Griswold, Federalist from Connecticut, +attacked the correctness of the accounts of the sinking fund, and +demanded an answer to a resolution of the House on the management of +this bureau. Had such been his desire, Mr. Gallatin was foreclosed from +Hamilton's excuse. On the night of the 3d he sent in an elaborate +statement which set accusation at rest and criticism at defiance.</p> + +<p>Mr. Gallatin's short stay in the Senate revealed to the Federalists the +character of the man, who, disdaining the lesser flight, checked only at +the highest game. He accepted his exclusion with perfect philosophy. +Soon after the session opened he said, “My feelings cannot be much hurt +by an unfavorable decision, since having been elected is an equal proof +of the confidence the legislature of Pennsylvania reposed in me, and not +being qualified, if it is so decided, cannot be imputed to me as a +fault.” His exclusion was by no means a disadvantage to him. It made +common cause of the honor of Pennsylvania and his own; it endeared him +to the Republicans of his State as a<span class='pagenum'><a name="Page_66" id="Page_66">[Pg 66]</a></span> martyr to their principles. It +“secured him,” to use his own words, “many staunch” friends throughout +the Union, and extended his reputation, hitherto local and confined, +over the entire land; more than all, it led him to the true field of +political contest—the House of Representatives of the people of the +United States.<span class='pagenum'><a name="Page_67" id="Page_67">[Pg 67]</a></span></p> + +<div class="footnotes"><h3>FOOTNOTES:</h3> + +<div class="footnote"><p><a name="Footnote_2_2" id="Footnote_2_2"></a><a href="#FNanchor_2_2"><span class="label">[2]</span></a> The yeas and nays being required by one fifth of the +senators present, there were: <i>Affirmative</i>.—Bradley, Brown, Burr, +Butler, Edwards, Gunn, Jackson, Langdon, Martin, Monroe, Robinson, +Taylor; 12. +</p><p> +<i>Negative</i>.—Bradford, Cabot, Ellsworth, Foster, Frelinghuysen, Hawkins, +Izard, King, Livermore, Mitchell, Morris, Potts, Strong, Vining; 14.</p></div> +</div> + +<hr style="width: 65%;" /> +<h2><a name="CHAPTER_IV" id="CHAPTER_IV"></a>CHAPTER IV<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>THE WHISKEY INSURRECTION</h3> + +<p>Mr. Gallatin was now out of public life. For eighteen months since he +came up to the legislature with his friends of the Pittsburgh +convention, he had not returned to Fayette. His private concerns were +suffering in his absence. Neither his barn, his meadow, nor his house +was finished at the close of 1793. In May, 1794, he took his wife to his +country home. Their hopes of a summer of recreation and domestic comfort +in the wild beauties of the Monongahela were not to be realized. Before +the end of June the peaceful country was in a state of mad agitation.</p> + +<p>The seeds of political discontent, sown at Pittsburgh in 1792, had +ripened to an abundant harvest. An act passed by Congress June 5, 1794, +giving to the state courts concurrent jurisdiction in excise cases, +removed the grievance of which Gallatin complained, the dragging of +accused persons to Philadelphia for trial, but was not construed to be +retroactive in its operation. The marshal, accordingly, found it to be +his duty to serve the writs of May 31 against those who had fallen under +their penalties. These writs were return<span class='pagenum'><a name="Page_68" id="Page_68">[Pg 68]</a></span>able in Philadelphia. They were +served without trouble in Fayette County. Not so in Allegheny. Here on +July 15, 1794, the marshal had completed his service, when, while still +in the execution of his office, and in company with the inspector, he +was followed and fired upon. The next day a body of men went to the +house of the marshal and demanded that he should deliver up his +commission. They were fired upon and dispersed, six were wounded, and +the leader killed. A general rising followed. The marshal's house, +though defended by Major Kirkpatrick, with a squad from the Pittsburgh +garrison, was set on fire, with the adjacent buildings, and burned. On +July 18 the insurgents sent a deputation of two or three to Pittsburgh, +to require of the marshal a surrender of the processes in his +possession, and of the inspector the resignation of his office. These +demands were, of course, rejected; but the officers, alarmed for their +personal safety, left the town, and, descending the Ohio by boat to +Marietta, proceeded by a circuitous route to Philadelphia, and made +their report to the United States authorities.</p> + +<p>This was the outbreak of the Western or Whiskey Insurrection. The +excitement spread rapidly through the western counties. Fayette County +was not exempt from it. The collector's house was broken into, and his +commission taken from him by armed men; the sheriff refused to serve the +writs against the rioters of the spring. Since<span class='pagenum'><a name="Page_69" id="Page_69">[Pg 69]</a></span> these disturbances there +had been no trouble in this county. But the malcontents elsewhere rose +in arms, riots ensued, and the safety of the whole community was +compromised. The news reaching Fayette, the distillers held a meeting at +Uniontown, the county seat, on July 20. Both Gallatin and Smilie were +present, and by their advice it was agreed to submit to the laws. The +neighboring counties were less fortunate. On July 21 the Washington +County committee was summoned to meet at Mingo Creek Meeting-house. On +the 23d there was a large assemblage of people, including a number of +those who had been concerned in burning the house of the Pittsburgh +inspector. James Marshall, the same who opposed the ratification of the +federal Constitution, David Bradford, the “empty drum,” and Judge +Brackenridge of Pittsburgh, attended this meeting. Bradford, the most +unscrupulous of the leaders, sought to shirk his responsibility, but was +intimidated by threats, and thereafter did not dare to turn back. +Brackenridge was present to counsel the insurgents to moderation. In +spite of his efforts the meeting ended in an invitation, which the +officers had not the boldness to sign, to the townships of the four +western counties of Pennsylvania and the adjoining counties of Virginia +to send representatives to a general meeting on August 14, at +Parkinson's Ferry on the Monongahela, in Washington County. Bradford, +determined to aggravate the disturbance, stopped the mail at Greensburg, +on the road be<span class='pagenum'><a name="Page_70" id="Page_70">[Pg 70]</a></span>tween Pittsburgh and Philadelphia, and robbed it of the +Washington and Pittsburgh letters, some of which he published, to the +alarm of their authors.</p> + +<p>On July 28 a circular signed by Bradford, Marshall, and others was sent +out from Cannonsburg to the militia of the county, whom it summoned for +personal service, and likewise called for volunteers to rendezvous the +following Wednesday, July 30, at their respective places of meeting, +thence to march to Braddock's Field, on the Monongahela, the usual +rendezvous of the militia, about eight miles south of Pittsburgh, by two +o'clock of Friday, August 1. It closed in these words, “Here is an +expedition proposed in which you will have an opportunity for displaying +your military talents and of rendering service to your country.” Nothing +less was contemplated by the more extreme of these men than an attack +upon Fort Pitt and the sack of Pittsburgh. Thoroughly aroused at last, +the moderate men of Washington determined to breast the storm. A meeting +was held; James Ross of the United States Senate made an earnest appeal, +and was supported by Scott of the House of Representatives and Stokely +of the Senate of Pennsylvania. Marshall and Bradford yielded, and +consented to countermand the order of rendezvous. But the excited +population poured into the town from all quarters, and Bradford, who +found that he had gone too far to retreat, again took the lead of the +movement, already beyond restraint.<span class='pagenum'><a name="Page_71" id="Page_71">[Pg 71]</a></span></p> + +<p>There are accounts of this formidable insurrection by H. H. Brackenridge +and William Findley, eye-witnesses. These supply abundant details. +Findley says that he knew that the movement would not stop at the limit +apparently set for it. “The opposing one law would lead to oppose +another; they would finally oppose all, and demand a new modeling of the +Constitution, and there would be a revolution.” There was great alarm in +Pittsburgh. A meeting was held there Thursday evening, July 31, at which +a message from the Washington County insurgents was read, violent +resolutions adopted, and the 9th of August appointed as the day for a +town meeting for election of delegates to a general convention of the +counties at Parkinson's Ferry; Judge Brackenridge of Pittsburgh, a man +of education, influence, and infinite jest and humor, was present at +this meeting. Of Scotch-Irish birth himself, his sympathies of race were +with his countrymen, but in political sentiments he was not in harmony +with their leaders. They were nearly all Republicans, while he had sided +with the Federalists in the convention which adopted the new +Constitution of the United States. He was a man of peace, and of too +much sagacity not to foresee the inevitable ruin upon which they were +rushing. At Mingo Creek he had thwarted the plans of immediate +revolution. The evident policy of moderate men was to prevent any +violence before the convention at Parkinson's Ferry should meet, and to +bend all<span class='pagenum'><a name="Page_72" id="Page_72">[Pg 72]</a></span> their energies to control the deliberations of that body. The +people of Pittsburgh were intensely excited by the armed gathering +almost at their doors.</p> + +<p>Brackenridge felt that the only safe issue from the situation was to +take part in and shape the action of that gathering. Under his lead a +committee from the Pittsburgh meeting, followed by a large body of the +citizens, went out to the rendezvous. Here they found a motley +assemblage, arrayed in the picturesque campaign costume which the +mountaineers wore when they equipped themselves to meet the +Indians,—yellow hunting-shirts, handkerchiefs tied about their heads, +and rifles on the shoulder; the militia were on foot, and the light +horse of the counties were in military dress. Conspicuous about the +field, “haughty and pompous,” as Gallatin described him in the +legislature, was David Bradford, who had assumed the office of +major-general. Brackenridge draws a lifelike picture of him as, mounted +on a superb horse in splendid trappings, arrayed in full uniform, with +plume floating in the air and sword drawn, he rode over the ground, gave +orders to the military, and harangued the multitude. On the historic +ground where Washington plucked his first military laurels were gathered +about seven thousand men, of whom two thousand militia were armed and +accoutred as for a campaign,—a formidable and remarkable assemblage, +when it is considered that the entire male population of sixteen years +of age<span class='pagenum'><a name="Page_73" id="Page_73">[Pg 73]</a></span> and upwards of the four counties did not exceed sixteen +thousand, and was scattered over a wide and unsettled country. This is +Brackenridge's estimate of the numbers. Later, Gallatin, on comparison +of the best attainable information, estimated the whole body at from +fifteen hundred to two thousand men. Whatever violence Bradford may have +intended, none was accomplished. That he read aloud the Pittsburgh +letters, taken from the mail, shows his purpose to inflame the people to +vindictive violence. He was accused by contemporary authorities of +imitation of the methods of the French Jacobins, which were fresh +examples of revolutionary vigor. But the mass was not persuaded. After +desultory conversation and discussion, the angry turn of which was at +times threatening to the moderate leaders, the meeting broke up on +August 2; about one third dispersed for their homes, and the remainder, +marching to Pittsburgh, paraded through the streets, and finally +crossing the river in their turn scattered. They did no damage to the +town beyond the burning of a farm belonging to Major Kirkpatrick of the +garrison. The taverns were all closed, but the citizens brought whiskey +to their doors. Judge Brackenridge reports that his sacrifice to peace +on this occasion cost him four barrels of his best old rye.</p> + +<p>This moderation was no augury of permanent quiet. Brackenridge, who was +a keen observer of men, says of the temper of the western popula<span class='pagenum'><a name="Page_74" id="Page_74">[Pg 74]</a></span>tion at +this period: “I had seen the spirit which prevailed at the Stamp Act, +and at the commencement of the revolution from the government of Great +Britain, but it was by no means so general and so vigorous amongst the +common people as the spirit which now existed in the country.” Nor did +the armed bands all return peaceably to their homes. The house of the +collector for Fayette and Washington counties was burned, and warnings +were given to those who were disposed to submit to the law. The +disaffected were called “Tom the tinker” men, from the signature affixed +to the threatening notices. From a passage in one of Gallatin's letters +it appears that there was a person of that name, a New England man, who +had been concerned in Shays's insurrection. Liberty poles, with the +device, “An equal tax and no excise law,” were raised, and the trees +placarded with the old revolutionary motto, “United we stand, divided we +fall,” with a divided snake as an emblem. Mr. Gallatin's neighborhood +was not represented at Braddock's Field, and not more than a dozen were +present from the entire county. But now the flame spread there also, and +liberty poles were raised. Mr. Gallatin himself, inquiring as to their +significance and expressing to the men engaged the hope that they would +not behave like a mob, was asked, in return, if he was not aware of the +Westmoreland resolution that any one calling the people a mob should be +tarred and feathered,—an amusing example of that mob logic<span class='pagenum'><a name="Page_75" id="Page_75">[Pg 75]</a></span> which +proves the affirmative of the proposition it denies.</p> + +<p>Mr. Gallatin did not attend the meeting at Braddock's Field. Somewhat +isolated at his residence at the southerly border of the county, engaged +in the care of his long neglected farm, and in the full enjoyment of +release from the bustle and excitement of public life, he had paid +little attention to passing events. He was preparing definitively to +abandon political pursuits and to follow some kind of mercantile +business, or take up some land speculation and study law in his +intervals of leisure. It was not a year since he had given hostages to +fortune. He was now in the full tide of domestic happiness, which was +always to him the dearest and most coveted. He might well have hesitated +before again engaging upon the dangerous and uncertain task of +controlling an excited and aggrieved population. But he did not +hesitate.</p> + +<p>The people among whom he had made his home, and whose confidence had +never failed him, were his people. By them he would stand in their +extremity, and if hurt or ruin befell them, it should not be for want of +the interposition of his counsel. He knew his powers, and he determined +to bring them into full play. He knew the danger also, but it only +nerved him to confront and master it. He knew his duty, and did not +swerve one hair from the line it prompted. In no part of his long, +varied, and useful political life does he appear to<span class='pagenum'><a name="Page_76" id="Page_76">[Pg 76]</a></span> better advantage +than in this exciting episode of the Whiskey Insurrection. His +self-possession, his cool judgment, swayed neither by timidity nor +rashness, never for a moment failed him. Here he displayed that +remarkable combination of persuasion and control,—the indispensable +equipment of a political chief,—which, in later days, gave him the +leadership of the Republican party. With intuitive perception of the +political situation he saw that the only path to safety, beset with +difficulty and danger though it were, was through the convention at +Parkinson's Ferry. He did not believe that any revolutionary proceedings +had yet been taken, or that the convention was an illegal body, but he +was determined to separate the wheat from the chaff, and disengage the +moderate and the law-abiding from the disorderly. By the light of his +own experience he had learned wisdom. He also had drawn a lesson from +the French Revolution, and knew the uncontrollable nature of large +popular assemblages. The news from Philadelphia, the seat of government, +was of a kind to increase his alarm. Washington was not the man to +overlook such an insult to authority as the resistance to the marshal +and inspector; nor was it probable that Hamilton would let pass such an +occasion for showing the strength and vigor of the government.</p> + +<p>Before the meeting at Braddock's Field, the secretary's plans for a +suppression of the insurrection were matured. On August 2 he laid +before<span class='pagenum'><a name="Page_77" id="Page_77">[Pg 77]</a></span> the President an estimate of the probable armed force of the +insurgents, and of that with which he proposed to reduce them to +submission. When the question of the use of force came before the +cabinet, Edmund Randolph, who was secretary of state, opposed it in a +written opinion, one phrase of which deserves repetition:—</p> + +<div class="blockquot"><p>“It is a fact well known that the parties in the United States are +highly inflamed against each other, and that there is but one +character which keeps both in awe. As soon as the sword shall be +drawn, who shall be able to retain them.”</p></div> + +<p>Mifflin, the governor of Pennsylvania, deprecated immediate resort to +force; the venerable Chief Justice McKean suggested the sending of +commissioners on the part of the federal and state governments. +Washington, with perfect judgment, combined these plans, and happily +allied conciliation with force. A proclamation was issued on August 7 +summoning all persons involved in the disturbance to lay down their arms +and repair to their homes by September 1. Requisitions were made upon +the governors of Pennsylvania, Maryland, Virginia, and New Jersey for +fifteen thousand men in all, and a joint commission of five was +raised,—three of whom on the part of the United States were appointed +by the President, and two on the part of the State of Pennsylvania. This +news was soon known at Pittsburgh, and rapidly spread through the +adjacent country;<span class='pagenum'><a name="Page_78" id="Page_78">[Pg 78]</a></span> and it was clear that in the proceedings to be taken +at Parkinson's Ferry the question of resistance or submission must be +definitively settled. On August 14, 1794, the convention assembled; two +hundred and twenty-six delegates in all, of whom ninety-three were from +Washington, forty-nine from Westmoreland, forty-three from Allegheny, +thirty-three from Fayette, two from Bedford, five from Ohio County in +Virginia, with spectators to about the same number.</p> + +<p>Parkinson's Ferry, later called Williamsport, and now Monongahela City, +is on the left bank of the Monongahela, about half way between +Pittsburgh and Red Stone Old Fort or Brownsville. Brackenridge pictures +the scene with his usual local color: “Our hall was a grove, and we +might well be called 'the Mountain' (an allusion to the radical left of +the French convention), for we were on a very lofty ground overlooking +the river. We had a gallery of lying timber and stumps, and there were +more people collected there than there was of the committee.” In full +view of the meeting stood a liberty pole, raised in the morning by the +men who signed the Braddock's Field circular order, and it bore the +significant motto, “Liberty and no excise and no asylum for cowards.” +Among the delegates, or the committee, to use their own term, were +Bradford, Marshall, Brackenridge, Findley, and Gallatin. Before the +meeting was organized, Marshall came to Gallatin and showed him the +resolutions which he intended to move,<span class='pagenum'><a name="Page_79" id="Page_79">[Pg 79]</a></span> intimating at the same time that +he wished Mr. Gallatin to act as secretary. Mr. Gallatin told him that +he highly disapproved the resolutions, and had come to oppose both him +and Bradford, and therefore did not wish to serve. Marshall seemed to +waver; but soon the people met, and Edward Cook of Fayette, who had +presided at Braddock's Field, was chosen chairman, with Gallatin for +secretary. Bradford opened the proceedings with a summary sketch of the +action previously taken, declared the purpose of the committee to be to +determine on a course of action, and his own views to be the appointment +of committees to raise money, purchase arms, enlist volunteers, or draft +the militia: in a word, though he did not use it, to levy war.</p> + +<p>At this point in the proceedings the arrival of the commissioners from +the President was announced, but the progress of the meeting was not +interrupted. The commissioners were at a house near the meeting, but +there were serious objections against holding a conference at this +place.</p> + +<p>Marshall then moved his resolutions. The first, declaratory of the +grievance of carrying citizens great distances for trial, was +unanimously agreed to. The second called for a committee of public +safety “to call forth the resources of the western country to repel any +hostile attempts that may be made against the rights of the citizens, or +of the body of the people.” Had this resolution been adopted, the people +were definitively committed to<span class='pagenum'><a name="Page_80" id="Page_80">[Pg 80]</a></span> overt rebellion. This brought Mr. +Gallatin at once to his feet. He denied that any hostile attempts +against the rights of the people were threatened, and drew an adroit +distinction between the regular army, which had not been called out, and +the militia, who were a part of the people themselves; and to gain time +he moved a reference of the resolutions to a committee who should be +instructed to wait the action of the government. In the course of his +speech Gallatin denied the assertion that resistance to the excise law +was legal, or that coercion by the government was necessarily hostile. +He was neither supported by his own friends nor opposed by those of +Bradford. He stood alone.</p> + +<p>But Marshall withdrew his resolution, and a committee of sixty was +appointed, with power to summon the people. The only other objectionable +resolution was that which pledged the people to the support of the laws, +except the excise law and the taking of citizens out of their counties +for trial,—an exception which Gallatin succeeded in having stricken +out. He then urged the adoption of the resolution, without the +exception, as necessary “to the establishment of the laws and the +conservation of the peace,” and here he was supported by Brackenridge. +The entire resolutions were finally referred to a committee of +four,—Gallatin, Bradford, Husbands, and Brackenridge. The meeting then +adjourned. The next morning a standing committee of sixty was chosen, +one<span class='pagenum'><a name="Page_81" id="Page_81">[Pg 81]</a></span> from each township. From these a committee of twelve was selected +to confer with the government commissioners. Upon this committee were +Cook, the chairman, Bradford, Marshall, Gallatin, Brackenridge, and +Edgar. The meeting then adjourned.</p> + +<p>Upon this representative body there seems to have been no outside +pressure. The proclamation of the President, which arrived while it was +in session, showed the determination, while the appointment of the +commission showed the moderation, of the government. Gallatin availed of +each circumstance with consummate adroitness, pointing out to the +desperate the folly of resistance, and to the moderate an issue for +honorable retreat.</p> + +<p>Meanwhile, the commissioners reached Pittsburgh, where on August 20 the +committee of conference was received by them, and an informal +understanding arrived at, which was put in writing. The laws were to be +enforced with as little inconvenience to the people as possible. All +criminal suits for indictable offenses were to be dropped, but civil +suits were to take their course. Notice was given that a definitive +submission must be made by September 1 following. On the 22d the +conference committee answered that they must consult with the committee +of sixty. Thursday the 28th was appointed for a meeting at Red Stone Old +Fort, the very spot where the original resolutions of opposition were +passed in 1791. In the report drawn up every member of the twelve, +except Bradford, favored submission.<span class='pagenum'><a name="Page_82" id="Page_82">[Pg 82]</a></span></p> + +<p>The hour was critical, the deliberations were in the open air, and under +the eyes of a threatening party of seventy riflemen accidentally present +from Washington County across the stream. Bradford, who instinctively +felt that he had placed himself beyond the pale of pardon, and to whom +there was no alternative to revolution but flight, pressed an instant +decision and rejection of the written terms of the commissioners. In the +presence of personal danger, the conferrees only dared to move that part +of their report which advised acceptance of the proffered terms. The +question of submission they left untouched. An adjournment was obtained. +The next day, to quote the words of Brackenridge, “the committee having +convened, Gallatin addressed the chair in a speech of some hours. It was +a piece of perfect eloquence, and was heard with attention and without +disturbance.” Never was there a more striking instance of intellectual +control over a popular assemblage. He saved the western counties of +Pennsylvania from anarchy and civil war. He was followed by +Brackenridge, who, warned by the example of his companion, or encouraged +by the quiet of the assemblage, supported him with vigor. Bradford, on +the other hand, faced the issue with directness and savage vehemence. He +repelled the idea of submission, and insisted upon an independent +government and a declaration of war. Edgar of Washington rejoined in +support of the report. Gallatin now demanded a vote, but the twelve +conferrees<span class='pagenum'><a name="Page_83" id="Page_83">[Pg 83]</a></span> alone supported him. He then proposed an informal vote, but +without result. Finally a secret ballot was proposed by a member. A hat +was passed, and when the slips of paper were taken out, there were +thirty-four yeas and twenty-three nays. The report was declared to be +adopted, and amid the scowls of the armed witnesses the meeting +adjourned; not, however, before a new committee of conference had been +appointed. On this new committee not one of the old leaders was named. +They evidently knew the folly of further delay, or of attempting to +secure better terms. As his final act Colonel Cook, the chairman of the +standing committee of sixty, indorsed the resolution adopted. It +declared it to be “to the interest of the people of the country to +accede to the proposals made by the commissioners on the part of the +United States.” This was duly forwarded, with request for a further +conference. The commissioners consented, but declined to postpone the +time of taking the sense of the people beyond September 11.</p> + +<p>William Findley said of the famous and critical debate at Red Stone: “I +had never heard speeches that I more ardently desired to see in print +than those delivered on this occasion. They would not only be valuable +on account of the oratory and information displayed in all the three, +and especially in Gallatin's, who opened the way, but they would also +have been the best history of the spirit and the mistakes which then +actuated men's minds.”<span class='pagenum'><a name="Page_84" id="Page_84">[Pg 84]</a></span> Findley, in his allotment of the honors of the +day, considers that “the verbal alterations made by Gallatin saved the +question.” Brackenridge thought that his own seeming to coincide with +Bradford prevented the declaration of war; and he has been credited with +having saved the western counties from the horrors of civil war, +Pittsburgh from destruction, and the Federal Union from imminent danger.</p> + +<p>Historians have agreed in according to Gallatin the honor of this field +day. It was left to John C. Hamilton, half a century later, to charge a +want of courage upon Gallatin,—a baseless charge.<a name="FNanchor_3_3" id="FNanchor_3_3"></a><a href="#Footnote_3_3" class="fnanchor">[3]</a> Not Malesherbes, +the noble advocate defending the accused monarch before the angry French +convention, with the certainty of the guillotine as the reward of his +generosity, is more worthy of admiration than Gallatin boldly pleading +the cause of order within rifle range of an excited band of lawless +frontiersmen. If, as he confessed later, in his part in the Pittsburgh +resolutions he was guilty of “a political sin,” he nobly atoned for it +under circumstances that would have tried the courage of men bred to +danger and to arms. Sin it was, and its consequences were not yet summed +up. For although the back of the insurrection was broken at Red Stone +Old Fort, there was much yet to be done before submission could be +completed.</p> + +<p>Bradford attempted to sign, but found that his<span class='pagenum'><a name="Page_85" id="Page_85">[Pg 85]</a></span> course at Red Stone Old +Fort had placed him outside the amnesty. Well might the moderate men say +in their familiar manner of Scripture allusion, “Dagon is fallen.” He +fled down the Ohio and Mississippi to Louisiana, then foreign soil. The +commissioners waited at Pittsburgh for the signatures of adhesion on +September 10, which was the last day allowed by the terms of amnesty. +They required that meetings should be held on this day in the several +townships; the presiding officers to report the result to commissioner +Ross at Uniontown the 16th of the same month, on which day he would set +out for Philadelphia. The time was inadequate, but there was no help. +Gallatin hastened the submission of Fayette, and a meeting of committees +from the several townships met at the county seat, Uniontown, on +September 10, 1794, when a declaration drawn by Mr. Gallatin was +unanimously adopted. A passage in this admirable paper shows the +comparative order which prevailed in Fayette County during this period +of trouble. It is an appeal to the people of the neighboring counties, +who, under the influence of their passions and resentment, might blame +those of Fayette for their moderation.</p> + +<div class="blockquot"><p>“The only reflection we mean to suggest to them is the +disinterestedness of our conduct upon this occasion. The indictable +offences to be buried in oblivion were committed amongst them, and +almost every civil suit that has been instituted under the revenue +law, in the federal court, was commenced against citizens of this<span class='pagenum'><a name="Page_86" id="Page_86">[Pg 86]</a></span> +county. By the terms proposed, the criminal prosecutions are to be +dropped, but no condition could be obtained for the civil suits. We +have been instrumental in obtaining an amnesty, from which those +alone who had a share in the riots derive a benefit, and the other +inhabitants of the western country have gained nothing for +themselves.”</p></div> + +<p>This declaration was forwarded on September 17 to Governor Mifflin, with +reasons for the delay, and advice that signatures were fast being +obtained, not only in the neighboring counties, but even in Fayette, +where this formality had not been thought necessary. It closes with a +forcible appeal to delay the sending of troops until every conciliatory +measure should have proved abortive.</p> + +<p>But the commissioners, unfortunately, were not favorably impressed with +the reception they met with or the scenes they witnessed on their +western mission. They had heard of Bradford's threat to establish an +independent government west of the mountains, and they had seen a +liberty pole raised upon which the people with the greatest difficulty +had been dissuaded from hoisting a flag with six stripes—emblematic of +the six counties represented in the committee. The flag was made, but +set aside for the fifteen stripes with reluctance. This is Findley's +recollection, but Brackenridge says that it was a flag of seven stars +for the four western counties, Bedford, and the two counties of +Virginia. This, he adds, was the first and only manifestation among any +class of a desire to sepa<span class='pagenum'><a name="Page_87" id="Page_87">[Pg 87]</a></span>rate from the Union. But here his memory +failed him.</p> + +<p>Hamilton had long been impatient. Again, as in old days, he presented +his arguments directly to the people. Under the heading, “Tully to the +people of the United States,” he printed a letter on August 26, of which +the following is a passage:—</p> + +<div class="blockquot"><p>“Your representatives in Congress, pursuant to the commission +derived from you, and with a full knowledge of the public +exigencies, have laid an excise. At three succeeding sessions they +have revised that act ... and <i>you</i> have actually paid more than a +million of dollars on account of it. But the four western counties +of Pennsylvania undertake to rejudge and reverse your decrees. +<i>You</i> have said, 'The Congress <i>shall have power</i> to lay +<i>excises</i>.' They say, 'The Congress shall <i>not have</i> this power;' +or, what is equivalent, they shall not exercise it, for a <i>power</i> +that may not be exercised is a nullity. Your representatives have +said, and four times repeated it, 'An excise on distilled spirits +<i>shall</i> be collected;' they say, 'It <i>shall not</i> be collected. We +will punish, expel, and banish the officers who shall attempt the +collection.'”</p></div> + +<p>The peace commissioners returned to Philadelphia and made their report +on September 24. The next day, September 25, Washington issued a +proclamation calling out the troops. In it he again warned the +insurgents. The militia, already armed, accoutred, and equipped, and +awaiting marching orders, moved at once. Governor Mifflin at first<span class='pagenum'><a name="Page_88" id="Page_88">[Pg 88]</a></span> +hesitated about his power to call out the militia, but when the +President's requisition was made, he summoned the legislature in special +session, and obtained from it a hearty support, with authority to accept +volunteers and offer a bounty. Thus fortified, he made a tour through +the lower counties of the State, and by his extraordinary popular +eloquence soon filled up the ranks. The old soldier led his troops in +person. Those of New Jersey were commanded by their governor, Richard +Howell of Revolutionary fame. These formed the right wing and marched to +rendezvous at Bedford to cross the mountains by the northern and +Pennsylvania route. The left wing, composed of the Virginia troops, +under the veteran Morgan, and those of Maryland, under Samuel Smith, a +brigadier-general in the army of the Revolution, assembled at Cumberland +to cross the mountains by Braddock's Road. The chief command was +confided to Governor Henry Lee of Virginia. Washington accompanied the +army as far as Bedford. Hamilton continued with it to Pittsburgh, which +was reached in the last days of October and the first of November, after +a wearisome march across the mountains in heavy weather. Arrived in the +western counties, the army found no opposition.</p> + +<p>Meanwhile, on October 2, the standing committee met again at Parkinson's +Ferry, and unanimously adopted resolutions declaring the general +submission, and explaining the reasons why signatures to the amnesty had +not been general. Find<span class='pagenum'><a name="Page_89" id="Page_89">[Pg 89]</a></span>ley and Redick were appointed to take these +resolutions to the President, and to urge him to stop the march of the +troops. They met the left wing at Carlisle. Washington received them +courteously, but did not consent to countermand the march. They hurried +back for more unequivocal assurances, which they hoped to be able to +carry to meet Washington on his way to review the right wing. On October +14, the day of the autumn elections, general submissions were +universally signed, and finally, on October 24, a third and last meeting +was held at Parkinson's Ferry, at which a thousand people attended, +when, with James Edgar, chairman, and Albert Gallatin, secretary, it was +resolved, first, that the civil authority was fully competent to punish +both past and future breaches of the law; secondly, that surrender +should be made of all persons charged with offenses, in default of which +the committee would aid in bringing them to justice; thirdly, that +offices of inspection might be opened, and that the distillers were +willing and ready to enter their stills.</p> + +<p>These resolutions were published in the “Pittsburgh Gazette.” Findley +carried them to Bedford, but before he reached the army the President +had returned to Philadelphia. The march of the army was not stopped. The +two wings made a junction at Uniontown. Companies of horse were +scattered through the country. New submissions were made, and the oath +of allegiance, required by General Lee, was generally taken.<span class='pagenum'><a name="Page_90" id="Page_90">[Pg 90]</a></span></p> + +<p>Hamilton now investigated the whole matter of the insurrection, and it +was charged against him, and the charge is supported by Findley, with +names of persons, that he spared no effort to secure evidence to bring +Gallatin within the pale of an indictment. Of course he failed in this +purpose, if indeed it were ever seriously entertained. But the belief +that Gallatin was the arch-fiend, who instigated the Whiskey +Insurrection, had already become a settled article in the Federalist +creed, and for a quarter of a century, long after the Federalist party +had become a tradition of the past, the Genevan was held up to scorn and +hatred, as an incarnation of deviltry—an enemy of mankind.</p> + +<p>On the 8th of November, Hamilton, who remained with the army, wrote to +the President that General Lee had concluded to take hold of all who are +worth the trouble by the military arm, and then to deliver them over to +the disposition of the judiciary. In the mean time, he adds, “all +possible means are using to obtain evidence, and accomplices will be +turned against the others.”</p> + +<p>The night of November 13, 1794, was appointed for the arrests; a +dreadful night Findley describes it to have been. The night was frosty; +at eight o'clock the horse sallied forth, and before daylight arrested +in their beds about two hundred men. The New Jersey horse made the +seizures in the Mingo Creek settlement, the hot-bed of the insurrection +and the scene of the early excesses. The<span class='pagenum'><a name="Page_91" id="Page_91">[Pg 91]</a></span> prisoners were taken to +Pittsburgh, and thence, mounted on horses, and guarded by the +Philadelphia Gentlemen Corps, to the capital. Their entrance into +Cannonsburg is graphically described by Dr. Carnahan, president of +Princeton College, in his account of the insurrection.</p> + +<div class="blockquot"><p>“The contrast between the Philadelphia horsemen and the prisoners +was the most striking that can be imagined. The Philadelphians were +some of the most wealthy and respectable men of that city. Their +uniform was blue, of the finest broadcloth. Their horses were large +and beautiful, all of a bay color, so nearly alike that it seemed +that every two of them would make a good span of coach horses. +Their trappings were superb. Their bridles, stirrups, and +martingales glittered with silver. Their swords, which were drawn, +and held elevated in the right hand, gleamed in the rays of the +setting sun. The prisoners were also mounted on horses of all +shapes, sizes, and colors; some large, some small, some long tails, +some short, some fat, some lean, some every color and form that can +be named. Some had saddles, some blankets, some bridles, some +halters, some with stirrups, some with none. The riders also were +various and grotesque in their appearance. Some were old, some +young, some hale, respectable looking men; others were pale, +meagre, and shabbily dressed. Some had great coats,—others had +blankets on their shoulders. The countenance of some was downcast, +melancholy, dejected; that of others, stern, indignant, manifesting +that they thought themselves undeserving such treatment. Two +Philadelphia horsemen rode in front and then two prisoners, and two +horsemen and two<span class='pagenum'><a name="Page_92" id="Page_92">[Pg 92]</a></span> prisoners, actually throughout a line extending +perhaps half a mile.... If these men had been the ones chiefly +guilty of the disturbance, it would have been no more than they +deserved. But the guilty had signed the amnesty, or had left the +county before the army approached.”</p></div> + +<p>Dallas, the secretary of state, Gallatin's friend, was one of this +troop. Gallatin saw him soon after his return. In a letter to his wife +of December 3, Gallatin relates the experience of the trooper who had +little stomach for the work he had to do.</p> + +<div class="blockquot"><p>“I saw Dallas yesterday. Poor fellow had a most disagreeable +campaign of it. He says the spirits, I call it the madness, of the +Philadelphia Gentlemen's Corps was beyond conception before the +arrival of the President. He saw a list (handed about through the +army by officers, nay, by a general officer) of the names of those +persons who were to be destroyed at all events, and you may easily +guess my own was one of the most conspicuous. Being one day at +table with sundry officers, and having expressed his opinion that, +if the army were going only to support the civil authority, and not +to do any military execution, one of them (Dallas did not tell me +his name, but I am told it was one Ross of Lancaster, aide-de-camp +to Mifflin) half drew a dagger he wore instead of a sword, and +swore any man who uttered such sentiments ought to be dagged. The +President, however, on his arrival, and afterwards Hamilton, took +uncommon pains to change the sentiments, and at last it became +fashionable to adopt, or at least to express, sentiments similar to +those inculcated by them.”<span class='pagenum'><a name="Page_93" id="Page_93">[Pg 93]</a></span></p></div> + +<p>Randolph was, perhaps, not far out of the way in his fear of a civil war +should blood be drawn, and in his conviction that the influence of +Washington was the only sedative for the fevered political pulse. On +November 17 general orders were issued for the return of the army, a +detachment of twenty-five hundred men only remaining in the West, under +command of General Morgan. There were no further disturbances. The army +expenses gave a circulating medium, and the farmers, having now the +means to pay their taxes, made no further complaints of the excise law. +The total expense of the insurrection to the government was $800,000.</p> + +<p>Mr. Gallatin returned with his wife from his western home early in +November. He had been again chosen at the October elections to represent +Fayette in the Pennsylvania Assembly. Moreover, at the same time, he was +elected to represent the congressional district of Washington and +Allegheny in the House of Representatives of the United States. Of four +candidates Gallatin led the poll. Judge Brackenridge was next in order. +No better proof is needed of the firm hold Gallatin had in the esteem +and affection of the people. No doubt, either, that they understood his +principles, and relied upon his sincere attachment to the country he had +made his home.</p> + +<p>When he appeared to take his seat in the Assembly he found that his +election was contested. A petition was presented from thirty-four +persons<span class='pagenum'><a name="Page_94" id="Page_94">[Pg 94]</a></span> calling themselves peaceable citizens of Washington County, +which stated that their votes had not been cast, because of the +disturbed condition of the country, and requested the Assembly to +declare the district to have been in a state of insurrection at the time +of the election, and to vacate the same. Mr. Gallatin knew the person +who procured the signatures, and also that the business originated in +the army. It was couched in terms insulting to all the members elect +from that district. After a protracted debate the election was declared +void on January 9, 1795. It was during this debate that Mr. Gallatin +made the celebrated speech called “The speech on the western elections,” +in which occurs the confession already alluded to. Speaking of the +Pittsburgh resolutions of 1792, he said:—</p> + +<div class="blockquot"><p>“I might say that those resolutions did not originate at +Pittsburgh, as they were almost a transcript of the resolutions +adopted at Washington the preceding year; and I might even add that +they were not introduced by me at the meeting. But I wish not to +exculpate myself where I feel I have been to blame. The sentiments +thus expressed were not illegal or criminal; yet I will freely +acknowledge that they were violent, intemperate, and reprehensible. +For, by attempting to render the office contemptible, they tended +to diminish that respect for the execution of the laws which is +essential to the maintenance of a free government; but whilst I +feel regret at the remembrance, though no hesitation in this open +confession of that <i>my only political sin</i>, let me add that the +blame ought to fall where it is deserved.”<span class='pagenum'><a name="Page_95" id="Page_95">[Pg 95]</a></span></p></div> + +<p>This was the first speech of Gallatin that appeared in print—simple, +lucid, convincing. The result of the new Assembly election would +naturally determine the right of the representatives of the contested +district to their seats in Congress. Word had gone forth from the +Treasury Department that Gallatin must not take his seat in Congress, +and the whippers-in took heed of the desire of their chief. A line of +instruction to Badollet, who lived at Greensburg in Washington County, +across the river from Gallatin's residence, determined the matter. +Gallatin warned him against the attempt that would be made to disaffect +that district because none of the representatives whose seats had been +vacated were residents of it. “Fall not into the snare,” he wrote; “take +up nobody from your own district; reëlect unanimously the same members, +whether they be your favorites or not. It is necessary for the sake of +our general character.” Here is an instance of that true political +instinct which made of him “the ideal party leader.” His advice was +followed, and all the members were reëlected but one, who declined. Mr. +Gallatin returned to his seat in the Assembly on February 14, and +retained it until March 12, when he asked and obtained leave of absence. +He does not appear to have taken further part in the session. The +subjects, personal to himself, which occupied his attention during the +summer will be touched upon elsewhere.</p> + +<p>The pitiful business of the trial of the western<span class='pagenum'><a name="Page_96" id="Page_96">[Pg 96]</a></span> prisoners needs only +brief mention. In May Gallatin was summoned before the grand jury as a +witness on the part of the government. The inquiry was finished May 12, +and twenty-two bills were found for treason. Against Fayette two bills +were found; one for misdemeanor in raising the liberty pole in +Uniontown. The petit jury was composed of twelve men from each of the +counties of Fayette, Washington, Allegheny, and Northumberland, but none +from Westmoreland. One man, a German from Westmoreland, who was +concerned in a riot in Fayette, was found guilty and condemned to death. +Mr. Gallatin, at the request of the jury, drew a petition to the +President, who granted a pardon. Washington extended mercy to the only +other offender who incurred the same penalty.</p> + +<p>To the close of this national episode, which, in its various phases of +incident and character, is of dramatic interest, Gallatin, through good +repute and ill repute, stood manfully by his constituents and friends.<span class='pagenum'><a name="Page_97" id="Page_97">[Pg 97]</a></span></p> + +<div class="footnotes"><h3>FOOTNOTES:</h3> + +<div class="footnote"><p><a name="Footnote_3_3" id="Footnote_3_3"></a><a href="#FNanchor_3_3"><span class="label">[3]</span></a> Hamilton's <i>History of the Republic</i>, vi. 96.</p></div> +</div> + +<hr style="width: 65%;" /> +<h2><a name="CHAPTER_V" id="CHAPTER_V"></a>CHAPTER V<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>MEMBER OF CONGRESS</h3> + +<p>The first session of the fourth Congress began at Philadelphia on +Monday, December 7, 1795. Washington was president, John Adams +vice-president. No one of Washington's original constitutional advisers +remained in his cabinet. Jefferson retired from the State Department at +the beginning of the first session of the third Congress. Edmund +Randolph, appointed in his place, resigned in a cloud of obloquy on +August 19, 1795, and the portfolio was temporarily in charge of Timothy +Pickering, secretary of war. Hamilton resigned the department of the +Treasury on January 31, 1795, and Oliver Wolcott, Jr., succeeded him in +that most important of the early offices of the government. General +Henry Knox, the first secretary of war, pressed by his own private +affairs and the interests of a large family, withdrew on December 28, +1794, and Timothy Pickering, the postmaster-general, had been appointed +in his stead January 2, 1795. The Navy Department was not as yet +established (the act creating it was passed April 30, 1798), but the +affairs which concerned this branch of the public service were under<span class='pagenum'><a name="Page_98" id="Page_98">[Pg 98]</a></span> +the direction of the secretary of war. The administration of Washington +was drawing to a close. In the lately reconstructed cabinet, honest, +patriotic, and thorough in administration, there was no man of shining +mark. The Senate was still in the hands of the Federal party. The bare +majority which rejected Gallatin in the previous Congress had increased +to a sufficient strength for party purposes, but neither in the ranks of +the administration nor the opposition was there in this august +assemblage one commanding figure.</p> + +<p>The House was nearly equally divided. The post of speaker was warmly +contested. Frederick A. Muhlenberg of Pennsylvania, who had presided +over the House at the sessions of the first Congress, 1789-1791, and +again over the third, 1793-1795, was the candidate of the Federalists, +but was defeated by Jonathan Dayton of New Jersey, whose views in the +last session had drifted him into sympathy with the Republican +opposition. The House, when full, numbered one hundred and five members, +among whom were the ablest men in the country, veterans of debate versed +in parliamentary law and skilled in the niceties of party fence. In the +Federal ranks, active, conscious of their power, and proud of the great +party which gloried in Washington as their chief, were Robert Goodloe +Harper of South Carolina, Theodore Sedgwick of Massachusetts, Roger +Griswold and Uriah Tracy of Connecticut, who led the front and held the +wings of debate; while in reserve, broken in health but still in the +prime of life, the pride of his party and of the House, was Fisher Ames, +the orator of his day, whose magic tones held friend and foe in rapt +attention, while he mastered the reason or touched the heart. Upon these +men the Federal party relied for the vindication of their principles and +the maintenance of their power. Supporting them were William Vans Murray +of Maryland, Goodrich and Hillhouse of Connecticut, William Smith of +South Carolina, Sitgreaves of Pennsylvania, and in the ranks a +well-trained party. Opposed to this formidable array of Federal talent +was the Republican party, young, vigorous, and in majority, bold in +their ideas but as yet hesitating in purpose under the controlling if +not overruling influence of the name and popularity of Washington.</p> + +<p><span class='pagenum'><a name="Page_99" id="Page_99">[Pg 99]</a></span></p><h3><i>Rob. G. Harper</i></h3> + +<p class="center"><a name="image-4" id="image-4"><!-- Image 4 --></a> +<img src="images/illus-117-1.jpg" height="303" width="232" +alt="Rob. G. Harper" /></p> + +<p class="center"><a name="image-5" id="image-5"><!-- Image 5 --></a> +<img src="images/illus-117-2.jpg" height="38" width="175" +alt="Signature of Rob. G. Harper" /></p> + +<p class="center"><a href="#ILLUS">Click for list of Illustrations</a></p> + +<p>Hamilton watched the shifting fortunes of his party from a distance, and +found time in the pressure of a large legal practice to aid each branch +of administration in turn with his advice. But though he still inspired +its councils, he no longer directed its course. In his Monticello home +Jefferson waited till the fruit was ripe for falling, occasionally +impatient that his followers did not more roughly shake the tree.</p> + +<p>The open rupture of Jefferson with Hamilton was the first great break in +the Federal administration; the lukewarmness of Madison, whose leanings +were always towards Jefferson, followed.</p> + +<p>At the head of the Republican opposition was<span class='pagenum'><a name="Page_100" id="Page_100">[Pg 100]</a></span> Madison. Wise in council, +convincing in argument, an able and even adroit debater, he was an +admirable leader, but his tactics were rather of the closet than the +field. He was wanting in the personal vigor which, scorning defense, +delights in bold attack upon the central position of the enemy, and +carries opposition to the last limit of parliamentary aggression. With +this mildness of character, though recognized as the leader of his +party, he, as a habit, waived his control upon the floor of the House, +and, reserving his interference for occasions when questions of +constitutional interpretation arose, left the general direction of +debate to William B. Giles of Virginia, a skillful tactician and a ready +debater, keen, bold, and troubled by no scruples of modesty, respect, or +reverence for friend or foe. Of equal vigor, but of more reserve, was +John Nicholas of Virginia—a man of strong intellect, reliable temper, +and with the dignity of the old school. To these were now added Albert +Gallatin and Edward Livingston. Edward Livingston, from New York, was +young, and as yet inexperienced in debate, but of remarkable powers. He +was another example of that early intellectual maturity which was a +characteristic of the time.</p> + +<p>When Congress met, the all-disturbing question was the foreign policy of +the United States. The influence of the French Revolution upon American +politics was great. The Federalists, conservative in their views, held +the new democratic doctrines<span class='pagenum'><a name="Page_101" id="Page_101">[Pg 101]</a></span> in abhorrence, and used the terrible +excesses of the French Revolution with telling force against their +Republican adversaries. The need of a strong government was held up as +the only alternative to anarchy. In the struggle which now united Europe +against the French republic, the sympathies of the Federalists were with +England. Hence they were accused of a desire to establish a monarchy in +the United States, and were ignominiously called the British party. +Shays's Rebellion in Massachusetts and the Whiskey Insurrection in +Pennsylvania gave point to their arguments.</p> + +<p>On the other side was the large and powerful party which, throughout the +war in the Continental Congress, under the confederation in the national +convention which framed and in the state conventions which ratified the +Constitution, had opposed the tendency to centralization, but had been +defeated by the yearning of the body of the plain people for a +government strong enough at least to secure them peace at home and +protection abroad. This natural craving being satisfied, the old +aversion to class distinctions returned. The dread of an aristocracy, +which did not exist even in name, threw many of the supporters of the +Constitution into the ranks of its opponents, who were democrats in name +and in fact. The proclamation of the rights of man awoke this latent +sentiment, and aroused an intense sympathy for the people of France. +This again was strengthened by the memory, still warm, of the services +of France in<span class='pagenum'><a name="Page_102" id="Page_102">[Pg 102]</a></span> the cause of independence. Lafayette, who represented the +true French republican spirit, and held a place in the affections of the +American people second only to that of Washington, was languishing, a +prisoner to the coalition of sovereigns, in an Austrian dungeon.</p> + +<p>Jefferson returned from France deeply imbued with the spirit of the +French Revolution. His views were warmly received by his political +friends, and the principles of the new school of politics were rapidly +spread by an eager band of acolytes, whose ranks were recruited until +the feeble opposition became a powerful party. Democratic societies, +organized on the plan of the French Jacobin clubs, extended French +influence, and no doubt were aided in a practical way by Genet, whose +recent marriage with the daughter of George Clinton, the head of the +Republican party in New York, was an additional link in the bond of +alliance.</p> + +<p>During the second session of the third Congress Madison had led the +opposition in a mild manner; party lines were not yet strongly defined, +and the influence of Washington was paramount. In the interim between +its expiration and the meeting of the fourth Congress in December, the +country was wildly agitated by the Jay treaty. This document not +reaching America until after the adjournment of Congress in March, +Washington convened the Senate in extra and secret session on June 1, +and the treaty was ratified by barely two thirds<span class='pagenum'><a name="Page_103" id="Page_103">[Pg 103]</a></span> majority. Imprudently +withheld for a time, it was at last made public by Senator Mason of +Virginia, one of the ten who voted against its ratification. It +disappointed the people, and was denounced as a weak and ignominious +surrender of American rights. The merchants of Boston, New York, +Philadelphia, and Charleston protested against it in public meetings. It +was burned, and the English flag was trailed in the dust before the +British minister's house at the capital. Jay was hung in effigy, and +Hamilton, who ventured to defend the treaty at a public meeting, was +stoned. To add to the popular indignation that the impressment of +American seamen had been ignored in the instrument, came the alarming +news that the British ministry had renewed their order to seize vessels +carrying provisions to France, whither a large part of the American +grain crop was destined. On the other hand, Randolph, the secretary of +state, had compromised the dignity of his official position in his +intercourse with Fauchet, the late French ambassador, whose +correspondence with his government, thrown overboard from a French +packet, had been fished up by a British man-of-war, and forwarded to +Grenville, by whom it was returned to America. Thus petard answered +petard, and the charge by the Republicans upon the Federalists of taking +British gold was returned with interest, and the accusation of receiving +bribe money was brought close home to Randolph, if not proved.<span class='pagenum'><a name="Page_104" id="Page_104">[Pg 104]</a></span></p> + +<p>Hard names were not wanting either; Jefferson was ridiculed as a +<i>sans-culotte</i> and red-legged Democrat. Nor was Washington spared. He +was charged with an assumption of royal airs, with political hypocrisy, +and even with being a public defaulter; a charge which no one dared to +father, and which was instantly shown to be false and malicious. It was +made by Bache in “The Aurora,” a contemptible sheet after the fashion of +“L'Ami du Peuple,” Marat's Paris organ.</p> + +<p>Such was the temper of the people when the House of Representatives met +on December 7, 1795. The speaker, Dayton, was strongly anti-British in +feeling. He was a family connection of Burr, but there is no reason to +suppose that he was under the personal influence of that adroit and +unscrupulous partisan. On the 8th President Washington, according to his +custom, addressed both houses of Congress. This day for the first time +the gallery was thrown open to the public. When the reply of the Senate +came up for consideration, the purpose of the Republicans was at once +manifest. They would not consent to the approbation it expressed of the +conduct of the administration. They would not admit that the causes of +external discord had been extinguished “on terms consistent with our +national honor and safety,” or indeed extinguished at all, and they +would not acknowledge that the efforts of the President to establish the +peace, freedom, and prosperity of the country had been "enlightened<span class='pagenum'><a name="Page_105" id="Page_105">[Pg 105]</a></span> and +firm." Nevertheless the address was agreed to by a vote of 14 to 8.</p> + +<p>In the House a resolution was moved that a respectful address ought to +be presented. The opposition immediately declared itself. Objection was +made to an address, and in its stead the appointment of a committee to +wait personally on the President was moved. The covert intent was +apparent through the thin veil of expediency, but the Republicans as a +body were unwilling to go this length in discourtesy, and did not +support the motion. Only eighteen members voted for it. Messrs. Madison, +Sedgwick, and Sitgreaves, the committee to report an address, brought in +a draft on the 14th which was ordered to be printed for the use of the +members. The next day the work of dissection was begun by an objection +to the words “probably unequaled spectacle of national happiness” +applied to the country, and the words “undiminished confidence” applied +to the President. The words “probably unequaled” were stricken out +without decided opposition by a vote of forty-three to thirty-nine. +Opinions were divided on that subject even in the ranks of the +Federalists. The cause of dissatisfaction was the Jay treaty. The +address was recommitted without a division. The next day Madison brought +in the address with a modification of the clause objected to. In its new +form the “very great share” of Washington's zealous and faithful +services in securing the national happiness was ac<span class='pagenum'><a name="Page_106" id="Page_106">[Pg 106]</a></span>knowledged. The +address thus amended was unanimously adopted. In this encounter nothing +was gained by the Republicans. The people would not have endured an open +declaration of want of confidence in Washington. But the entering wedge +of the new policy was driven. The treaty was to be assailed. It was, +however, the pretext, not the cause of the struggle, the real object of +which was to extend the powers of the House, and subordinate the +executive to its will. Before beginning the main attack the Republicans +developed their general plan in their treatment of secondary issues; of +these the principal was a tightening of the control of the House over +the Treasury Department.</p> + +<p>In this Mr. Gallatin took the lead. His first measure was the +appointment of a standing Committee of Finance to superintend the +general operations of this nature,—an efficient aid to the Treasury +when there is accord between the administration and the House, an +annoying censor when the latter is in opposition. This was the beginning +of the Ways and Means Committee, which soon became and has since +continued to be the most important committee of the House. To it were to +be referred all reports from the Treasury Department, all propositions +relating to revenue, and it was to report on the state of the public +debt, revenue, and expenditures. The committee was appointed without +opposition. It consisted of fourteen members, William Smith, Sedgwick, +Madison, Baldwin, Gallatin, Bourne, Gilman, Murray,<span class='pagenum'><a name="Page_107" id="Page_107">[Pg 107]</a></span> Buck, Gilbert, +Isaac Smith, Blount, Patten, and Hillhouse, and represented the strength +of both political parties. To this committee the estimates of +appropriations for the support of the government for the coming year +were referred. The next step was to bring to the knowledge of the House +the precise condition of the Treasury. To this end the secretary was +called upon to furnish comparative views of the commerce and tonnage of +the country for every year from the formation of the department in 1789, +with tables of the exports and imports, foreign and domestic, separately +stated, and with a division of the nationality of the carrying vessels. +Later, comparative views were demanded of the receipts and expenditures +for each year; the receipts under the heads of Loans, Revenue in its +various forms, and others in their several divisions; the expenditures, +also, to be classified under the heads of Civil List, Foreign +Intercourse, Military Establishment, Indian Department, Naval, etc. +Finally a call was made for a statement of the annual appropriations and +the applications of them by the Treasury. The object of Mr. Gallatin was +to establish the expenses of the government in each department of +service on a permanent footing for which annual appropriations should be +made, and for any extraordinary expenditure to insist on a special +appropriation for the stated object and none other. By keeping +constantly before the House this distinction between the permanent fund +and temporary<span class='pagenum'><a name="Page_108" id="Page_108">[Pg 108]</a></span> exigencies, he accustomed it to take a practical business +view of its legislative duties, and the people to understand the +principles he endeavored to apply.</p> + +<p>In a debate at the beginning of the session, on a bill for establishing +trading houses with the Indians, Mr. Gallatin showed his hand by +declaring that he would not consent to appropriate any part of the war +funds for the scheme; nor, in view of the need of additional permanent +funds for the discharge of the public debt, would he vote for the bill +at all, unless there was to be a reduction in the expense of the +military establishment; and he would not be diverted from his purpose +although Mr. Madison advocated the bill because of its extremely +benevolent object. The Federal leaders saw clearly to what this doctrine +would bring them, and met it in the beginning. The first struggle +occurred when the appropriations for the service of 1796 were brought +before the House. Beginning with a discussion upon the salaries of the +officers of the mint, the debate at once passed to the principle of +appropriations. The Federalists insisted that a discussion of the merits +of establishments was not in order when the appropriations were under +consideration; that the House ought not, by withholding appropriations, +to destroy establishments formed by the whole legislature, that is, by +the Senate and House; that the House should vote for the appropriations +agreeably to the laws already made. This view was sanc<span class='pagenum'><a name="Page_109" id="Page_109">[Pg 109]</a></span>tioned by +practice. Mr. Gallatin immediately opposed this as an alarming and +dangerous principle. He insisted that there was a certain discretionary +power in the House to appropriate or not to appropriate for any object +whatever, whether that object were authorized or not. It was a power +vested in the House for the purpose of checking the other branches of +government whenever necessary. He claimed that this power was shown in +the making of yearly instead of permanent appropriations for the civil +list and military establishments, yet when the House desired to +strengthen public credit it had rendered the appropriation for those +objects permanent and not yearly. It was, therefore, “contradictory to +suppose that the House was bound to do a certain act at the same time +that they were exercising the discretionary power of voting upon it.” +The debate determined nothing, but it is of interest as the first +declaration in Congress of the supremacy of the House of +Representatives.</p> + +<p>The great debate which, from the principles involved in it as well as +the argument and oratory with which they were discussed, made this +session of the House famous, was on the treaty with Great Britain. This +was the first foreign treaty made since the establishment of the +Constitution. The treaty was sent in to the House “for the information +of Congress,” by the President, on March 1, with notice of its +ratification at London in October. The next day Mr. Edward Livingston +moved<span class='pagenum'><a name="Page_110" id="Page_110">[Pg 110]</a></span> that the President be requested to send in a copy of the +instructions to the minister of the United States who negotiated the +treaty, together with the correspondence and other documents. A few days +later he amended his resolution by adding an exception of such of said +papers as any existing negotiations rendered improper to disclose. The +Senate in its ratification of the treaty suspended the operation of the +clause regulating the trade with the West Indies, on which Great Britain +still imposed the old colonial restriction, and recommended the +President to open negotiations on this subject; and in fact such +negotiations were in progress. The discussion was opened on the Federal +side by a request to the gentlemen in favor of the call to give their +reasons. Mr. Gallatin supported the resolution, and expressed surprise +at any objection, considering that the exception of the mover rendered +the resolution of itself unexceptionable. The President had not informed +the House of the reasons upon which the treaty was based. If he did not +think proper to give the information sought for, he would say so to +them. A question might arise whether the House should get at those +secrets even if the President refused the request, but that was not the +present question. In reply to Mr. Murray, who asserted that the treaty +was the supreme law of the land, and that there was no discretionary +power in the House except on the question of its constitutionality, Mr. +Gallatin said that Congress possessed the power<span class='pagenum'><a name="Page_111" id="Page_111">[Pg 111]</a></span> of regulating +trade,—perhaps the treaty-making power clashed with that,—and +concluded by observing that the House was the grand inquest of the +nation, and that it had the right to call for papers on which to ground +an impeachment. At present he did not contemplate an exercise of that +right. Mr. Madison said it was now to be decided whether the general +power of making treaties supersedes the powers of the House of +Representatives, particularly specified in the Constitution, so as to +give to the executive all deliberative will and leave the House only an +executive and ministerial instrumental agency; and he proposed to amend +the resolution so as to read, “except so much of said papers as in his +(the President's) judgment it may be inconsistent with the interest of +the United States at this time to disclose.” But his motion was defeated +by a vote of 47 nays to 37 yeas.</p> + +<p>The discussion being resumed in committee of the whole, the expressions +of opinion were free on both sides, but so moderate that one of the +members made comment on the calmness and temper of the discussion. +Nicholas said that, if the treaty were not the law of the land, the +President should be impeached. But the parts of the treaty into which +the President had not the right to enter, he could not make law by +proclamation. Swanwick supported the call as one exercised by the House +of Commons. On the Federal side, Harper said that the papers were not +necessary, and, being<span class='pagenum'><a name="Page_112" id="Page_112">[Pg 112]</a></span> unnecessary, the demand was an improper and +unconstitutional interference with the executive department. If he +thought them necessary, he would change the milk and water style of the +resolutions. In that case the House had a right to them and he had no +idea of requesting as a favor what should be demanded as a right. +Gallatin, he said, had declared that it was a request, but that in case +of refusal it might be considered whether demand should not be made, and +he charged that when, at the time the motion was made, the question had +been asked, what use was to be made of the papers, Gallatin did not and +could not reply. Mr. Gallatin answered that whether the House had a +discretionary power, or whether it was bound by the instrument, there +was no impropriety in calling for the papers. He hoped to have avoided +the constitutional question in the motion, but as the gentlemen had come +forward on that ground, he had no objection to rest the decision of the +constitutional power of Congress on the fate of the present question. He +would therefore state that the House had a right to ask for the papers.</p> + +<p>The constitutional question being thus squarely introduced, Mr. Gallatin +made an elaborate speech, which, from its conciseness in statement, +strength of argument, and wealth of citations of authority, was, to say +the least, inferior to no other of those drawn out in this memorable +struggle. In its course he compared the opinion of those who had opposed +the resolution to the saying of an English<span class='pagenum'><a name="Page_113" id="Page_113">[Pg 113]</a></span> bishop, that the people had +nothing to do with the law but to obey it, and likened their conduct to +the servile obedience of a Parliament of Paris under the old order of +things. He concluded with the hope that the dangerous doctrine, that the +representatives of the people have not the right to consult their +discretion when about exercising powers delegated by the Constitution, +would receive its death-blow. Griswold replied in what by common consent +was the strongest argument on the Federal side. The call, at first view +simple, had, he said, become a grave matter. The gist of his objection +to it was that the people in their Constitution had made the treaty +power paramount to the legislative, and had deposited that power with +the President and Senate.</p> + +<p>Mr. Madison once more rose to the constitutional question. He said that, +if the passages of the Constitution be taken literally, they must clash. +The word <i>supreme</i>, as applied to treaties, meant as over the state +Constitutions, and not over the Constitution and laws of the United +States. He supported Mr. Gallatin's view of the congressional power as +coöperative with the treaty power. A construction which made the treaty +power omnipotent he thought utterly inadmissible in a constitution +marked throughout with limitations and checks.</p> + +<p>Mr. Gallatin again claimed the attention of the House, as the original +question of a call for papers had resolved itself into a discussion on +the treaty-making<span class='pagenum'><a name="Page_114" id="Page_114">[Pg 114]</a></span> power. In the treaty of peace of 1783 there were +three articles which might be supposed to interfere with the legislative +powers of the several States: 1st, that which related to the payment of +debts; 2d, the provision for no future confiscations; 3d, the +restitution of estates already confiscated. The first could not be +denied. “Those,” he said, “might be branded with the epithet of +disorganizers, who threatened a dissolution of the Union in case the +measures they dictated were not obeyed; and he knew, although he did not +ascribe it to any member of the House, that men high in office and +reputation had industriously spread an alarm that the Union would be +dissolved if the present motion was carried.” He took the ground that a +treaty is not valid, and does not bind the nation as such, till it has +received the sanction of the House of Representatives. Mr. Harper closed +the argument on the Federal side. On March 24 the resolution calling for +the papers was carried by a vote of yeas 62, nays 37, absent 5, the +speaker 1 (105). Livingston and Gallatin were appointed to present the +request to the President.</p> + +<p>On March 30 the President returned answer to the effect that he +considered it a dangerous precedent to admit this right in the House; +that the assent of the House was not necessary to the validity of a +treaty; and he absolutely refused compliance with the request. The +letter of instructions to Jay would bear the closest examination,<span class='pagenum'><a name="Page_115" id="Page_115">[Pg 115]</a></span> but +the cabinet scorned to take shelter behind it, and it was on their +recommendation that the President's refusal was explicit. This message, +in spite of the opposition of the Federalists, was referred, by a vote +of 55 yeas to 37 nays, to the committee of the whole. This reference +involved debate. In his opposition to this motion, Mr. Harper said that +the motives of the friends of the resolution had been avowed by the +“gentleman who led the business, from Pennsylvania;” whereby it appears +that Mr. Gallatin led the Republicans in the first debate. During this +his first session he shared this distinction with Mr. Madison. At the +next he became the acknowledged leader of the Republican party.</p> + +<p>On April 3 the debate was resumed. This second debate was led by Mr. +Madison, who considered two points: 1st, the application for papers; 2d, +the constitutional rights of Congress. His argument was of course calm +and dispassionate after his usual manner. The contest ended on April 7, +with the adoption of two resolutions: 1st, that the power of making +treaties is exclusively with the President and Senate, and the House do +not claim an agency in making them, or ratifying them when made; 2d, +that when made a treaty must depend for the execution of its +stipulations on a law or laws to be passed by Congress; and the House +have a right to deliberate and determine the expediency or inexpediency +of carrying treaties into effect. These resolutions were carried by a +vote of 63 to 27.<span class='pagenum'><a name="Page_116" id="Page_116">[Pg 116]</a></span></p> + +<p>There was now a truce of a few days. In the meanwhile the country was +agitated to an extent which, if words mean anything, really threatened +an attempt at dissolution of the Union, if not civil war itself. The +objections on the part of the Republicans were to the treaty as a whole. +Their sympathies were with France in her struggle for liberty and +democratic institutions and against England, and their real and proper +ground of antipathy to the instrument lay in its concession of the right +of capture of French property in American vessels, whilst the treaty +with France forbade her to seize British property in American vessels. +The objections in detail had been formulated at the Boston public +meeting the year before. The commercial cities were disturbed by the +interference with the carrying trade; the entire coast, by the search of +vessels and the impressment of seamen; the agricultural regions, by the +closing of the outlet for their surplus product; the upland districts, +by the stoppage of the export of timber. But the country was without a +navy, was ill prepared for war, and the security of the frontier was +involved in the restoration of the posts still held by the British.</p> + +<p>The political situation was uncertain if not absolutely menacing. The +threats of disunion were by no means vague. The Pendleton Society in +Virginia had passed secession resolutions, and a similar disposition +appeared in other States. While the treaty was condemned in the United<span class='pagenum'><a name="Page_117" id="Page_117">[Pg 117]</a></span> +States, British statesmen were not of one opinion as to the advantages +they had gained by Grenville's diplomacy. Jay's desire, expressed to +Randolph, “to manage so that in case of wars our people should be united +and those of England divided,” was not wholly disappointed. And there is +on record the expression of Lord Sheffield, when he heard of the rupture +in 1812, “We have now a complete opportunity of getting rid of that most +impolitic treaty of 1794, when Lord Grenville was so perfectly duped by +Jay.”<a name="FNanchor_4_4" id="FNanchor_4_4"></a><a href="#Footnote_4_4" class="fnanchor">[4]</a> Washington's ratification of the treaty went far to correct the +hasty judgment of the people, and to reconcile them to it as a choice of +evils. Supported by this modified tone of public opinion, the +Federalists determined to press the necessary appropriation bills for +carrying the treaties into effect. Besides the Jay treaty there were +also before the House the Wayne treaty with the Indians, the Pinckney +treaty with Spain, and the treaty with Algiers. With these three the +House was entirely content, and the country was impatient for their +immediate operation. Wayne's treaty satisfied the inhabitants on the +frontier. The settlers along the Ohio, among whom was Gallatin's +constituency, were eager to avail themselves of the privileges granted +by that of Pinckney, which was a triumph of diplomacy; and all America, +while ready to beard the British lion, seems to have been in terror of<span class='pagenum'><a name="Page_118" id="Page_118">[Pg 118]</a></span> +the Dey of Algiers. Mr. Sedgwick offered a resolution providing for the +execution of the four treaties. Mr. Gallatin insisted on and received a +separate consideration of each. That with Great Britain was reserved +till the rest were disposed of. It was taken up on April 14. Mr. Madison +opened the debate. He objected to the treaty as wanting in real +reciprocity; 2d, in insufficiency of its provisions as to the rights of +neutrals; 3d, because of its commercial restrictions. Other Republican +leaders followed, making strong points of the position in which the +treaty placed the United States with regard to France, to whom it was +bound by a treaty of commercial alliance, which was a part of the +contract of aid in the Revolutionary War; and also of the possible +injustice which would befall American claimants in the British courts of +admiralty.</p> + +<p>The Federalists clung to their ground, defended the treaty as the best +attainable, and held up as the alternative a war, for which the refusal +of the Republicans to support the military establishment and build up a +navy left the country unprepared. In justice to Jay, his significant +words to Randolph, while doubtful of success in his negotiation, should +be remembered: “Let us hope for the best and prepare for the worst.” To +the red flag which the Federalists held up, Mr. Gallatin replied, +accepting the consequences of war if it should come, and gave voice to +the extreme dissatisfaction of the Virginia radicals with Jay and the +negotiation.<span class='pagenum'><a name="Page_119" id="Page_119">[Pg 119]</a></span> He charged that the cry of war and threats of a +dissolution of the government were designed for an impression on the +timidity of the House. “It was through the fear of being involved in a +war that the negotiation with Great Britain had originated; under the +impression of fear the treaty had been negotiated and signed; a fear of +the same danger, that of war, had promoted its ratification; and now +every imaginary mischief which could alarm our fears was conjured up in +order to deprive us of that discretion which this House thought they had +a right to exercise, and in order to force us to carry the treaty into +effect.” He insisted on the important principle that 'free ships make +free goods,' and complained of its abandonment by the negotiators.</p> + +<p>In a reply to this attack upon Jay, whose whole life was a refutation of +the charge of personal or moral timidity, Mr. Tracy passed the limits of +parliamentary courtesy. “The people,” he said, “where he was most +acquainted, whatever might be the character of other parts of the Union, +were not of the stamp to cry hosannah to-day and crucify to-morrow; they +will not dance around a whiskey pole to-day and curse their government, +and upon hearing of a military force sneak into a swamp. No,” said he, +“my immediate constituents, whom I very well know, understand their +rights and will defend them, and if they find the government will not +protect them, they will attempt at least to protect themselves;” and he +con<span class='pagenum'><a name="Page_120" id="Page_120">[Pg 120]</a></span>cluded, “I cannot be thankful to that gentleman for coming all the +way from Geneva to give Americans a character for pusillanimity.” He +held it madness to suppose that if the treaty were defeated war could be +avoided. Called to order, he said that he might have been too personal, +and asked pardon of the gentleman and of the House.</p> + +<p>The brilliant crown of the debate was the impassioned speech of Fisher +Ames, the impression of which upon the House and the crowded gallery is +one of the traditions of American oratory. The scene, as it has been +handed down to us, resembles, in all save its close, that which +Parliament presented when Chatham made his last and dying appeal. Like +the great earl, Ames rose pale and trembling from illness to address a +House angry and divided. Defending himself and the Federal party against +the charge of being in English interest, he said, “Britain has no +influence, and can have none. She has enough—and God forbid she ever +should have more. France, possessed of popular enthusiasm, of party +attachments, has had and still has <i>too much influence</i> on our +politics,—any foreign influence is too much and ought to be destroyed. +I detest the man and disdain the spirit that can ever bend to a mean +subserviency to the views of any nation. It is enough to be American. +That character comprehends our duties and ought to engross our +attachments.” Considering the probable influence on the Indian tribes of +the rejection of the treaty, he said, "By rejecting the Posts we<span class='pagenum'><a name="Page_121" id="Page_121">[Pg 121]</a></span> light +the savage fires, we bind the victims.... I can fancy that I listen to +the yells of savage vengeance and shrieks of torture. Already they seem +to sigh in the west wind,—already they mingle with every echo from the +mountains." His closing words again bring Chatham to mind. “Yet I have +perhaps as little personal interest in the event as any one here. There +is, I believe, no member who will not think his chance to be a witness +of the consequences greater than mine. If, however, the vote should pass +to reject, and a spirit should rise, as rise it will, with the public +disorders to make confusion worse confounded, even I, slender and almost +broken as my hold upon life is, may outlive the government and +Constitution of my country.” This appeal, supported by the petitions and +letters which poured in upon the House, left no doubt of the result. An +adjournment was carried, but the speech was decisive. The next day, +April 29, it was resolved to be expedient to make the necessary +appropriations to carry the treaty into effect. The vote stood 49 ayes +to 49 nays, and was decided in the affirmative by Muhlenberg, who was in +the chair. But the House would not be satisfied without an expression of +condemnation of the instrument. On April 30 it was resolved that in the +opinion of the House the treaty was objectionable.</p> + +<p>While Mr. Gallatin in this debate rose to the highest rank of +statesmanship, he showed an equal mastery of other important subjects +which engaged<span class='pagenum'><a name="Page_122" id="Page_122">[Pg 122]</a></span> the attention of the House during the session. He was +earnest for the protection of the frontier, but had no good opinion of +the Indians. “Twelve years had passed,” he said, “since the peace of +1783; ever since that time he had lived on the frontier of Pennsylvania. +Not a year of this period had passed, whether at war or peace, that some +murders had not been committed by the Indians, and yet not an act of +invasion or provocation by the inhabitants.” In the matter of +impressment of American seamen, he urged the lodging of sufficient power +in the executive. Men had been impressed, and he held it to be the duty +of the House to take notice of it by war or negotiation. In the +establishment of land offices for the sale of the western lands he +brought to bear upon legislation his practical experience. He urged that +the tracts for sale be divided, and distinctions be made between large +purchasers and actual settlers—proposing that the large tracts be +sold at the seat of government, and the small on the territory itself. +He instanced the fact that in 1792 all the land west of the Ohio was +disposed of at 1<i>s</i>. 6<i>d</i>. the acre, and a week afterwards was resold at +$1.50, so that the money which should have gone into the treasury went +to the pockets of speculators. He also suggested that the proceeds of +the sales should be a fund to pay the public debt, and that the public +stock should always be received at its value in payment for land; a plan +by which the land would be brought directly to the payment<span class='pagenum'><a name="Page_123" id="Page_123">[Pg 123]</a></span> of the debt, +as foreigners would gladly exchange the money obligations of the +government for land. On the question of taxation he declared himself in +favor of direct taxes, and held that a tax on houses and lands could be +levied without difficulty. He would satisfy the people that it was to +pay off the public debt, which he held to be a public curse. He +supported the excise duty on stills under regulations which would avoid +the watching of persons and houses and inspection by officers, and +proposed that licenses be granted for the time applied for.</p> + +<p>The military establishment he opposed in every way, attacked the +principle on which it was based, and fought every appropriation in +detail, from the pay of a major-general to the cost of uniforms for the +private soldiers. He was not afraid of the army, he said, but did not +think that it was necessary for the support of the government or +dangerous to the liberties of the people; moreover, it cost six hundred +thousand dollars a year, which was a sum of consequence in the condition +of the finances.</p> + +<p>The navy found no more favor in his eyes. He denied that fleets were +necessary to protect commerce. He challenged its friends to show, from +the history of any nation in Europe as from our own, that commerce and +the navy had gone hand in hand. There was no nation except Great +Britain, he said, whose navy had any connection with commerce. Navies +were instruments of power more calculated to annoy the trade of other +nations<span class='pagenum'><a name="Page_124" id="Page_124">[Pg 124]</a></span> than to protect that of the nations to which they belonged. The +price England had paid for her navy was a debt of three hundred millions +of pounds sterling. He opposed appropriations even for the three +frigates, United States, Constitution, and Constellation,—the +construction of which had been ordered,—the germs of that navy which +was later to set his theory at naught, redeem the honor of the flag, +protect our commerce, and release the country and the civilized world +from ignominious tribute to the Mediterranean pirates, who were +propitiated in this very session only at the cost of a million of +dollars to the Treasury of the United States, and by the gift of a +frigate.</p> + +<p>In the debate over the payment of the sum of five millions, which the +United States Bank had demanded from the government, the greatest part +of which had been advanced on account of appropriations, he lamented the +necessity, but urged the liquidation. This was the occasion of another +personal encounter. In reply to a charge of Gallatin that the +Federalists were in favor of debt, Sedgwick alluded to Gallatin's part +in the Whiskey Insurrection, and said that none of those gentlemen whom +Gallatin had charged with “an object to perpetuate and increase the +public debt” had been known to have combined “in every measure which +might obstruct the operation of law,” nor had declared to the world +"that the men who would accept of the offices to perform the necessary +functions of government were lost to every<span class='pagenum'><a name="Page_125" id="Page_125">[Pg 125]</a></span> sense of virtue;" “that from +them was to be withheld every comfort of life which depended on those +duties which as men and fellow-citizens we owe to each other. If,” he +said, “the gentlemen had been guilty of such nefarious practices, there +would have been a sound foundation for the charge brought against them.” +Gallatin made no reply. This was the one political sin he had +acknowledged. His silence was his expiation.</p> + +<p>The Treasury Department and its control, past and present, was the +object of his unceasing criticism. In April, 1796, he said, “The +situation of the gentleman at the head of the department [Wolcott] was +doubtless delicate and unpleasant; it was the more so when compared with +that of his predecessor [Hamilton]. Both indeed had the same power to +borrow money when necessary; but that power, which was efficient in the +hands of the late secretary and liberally enough used by him, was become +useless at present. He wished the present secretary to be extricated +from his present difficulty. Nothing could be more painful than to be at +the head of that department with an empty treasury, a revenue inadequate +to the expenses, and no means to borrow.” Nevertheless he feared that if +it were declared that the payment of the debt incurred by themselves +were to be postponed till the present generation were over, it might +well be expected that the principle thus adopted by them would be +cherished, that succeeding legislatures and administrations would follow +in their steps,<span class='pagenum'><a name="Page_126" id="Page_126">[Pg 126]</a></span> and that they were laying the foundations of that +national curse,—a growing and perpetual debt.</p> + +<p>On the last day of the session W. Smith had challenged the correctness +of Gallatin's charge that there had been an increase of the public debt +by five millions under the present administration, and claimed that +there were errors in Gallatin's statement of more than four and a half +millions. Gallatin defended his figures. At this day it is impossible to +determine the merits of this dispute.</p> + +<p>One incident of this session deserves mention as showing the distaste of +Gallatin for anything like personal compliment, stimulated in this +instance, perhaps, by his sense of Washington's dislike to himself. It +had been the habit of the House since the commencement of the government +to adjourn for a time on February 22, Washington's birthday, that +members might pay their respects to the President. When the motion was +made that the House adjourn for <i>half an hour</i>, the Republicans +objected, and Gallatin, nothing loath to “bell the cat,” moved that the +words “half an hour” be struck out. His amendment was lost without a +division. The motion to adjourn was then put and lost by a vote of 50 +nays to 38 ayes. The House waited on the President at the close of the +business of the day. On June 1 closed this long and memorable session, +in which the assaults of the Republicans upon the administration were so +persistent and embarrassing as to justify Wolcott's private note to +Hamilton, April 29, 1796,<span class='pagenum'><a name="Page_127" id="Page_127">[Pg 127]</a></span> that “unless a radical change of opinion can +be effected in the Southern States, the existing establishments will not +last eighteen months. The influence of Messrs. Gallatin, Madison, and +Jefferson must be diminished, or the public affairs will be brought to a +stand.” Here is found an early recognition of the political +“triumvirate,” and Gallatin is the first named.</p> + +<p>Gallatin seems to have had some doubts as to his reëlection to Congress. +As he did not reside in the Washington and Allegheny district, his name +was not mentioned as a candidate, and, to use his own words, he expected +to “be gently dropped without the parade of a resignation.” In his +distaste at separation from his wife, the desire to abandon public life +grew upon him. But personal abuse of him in the newspapers exasperating +his friends, he was taken up again in October, and he arrived on the +scene, he says, too late to prevent it. He had no hope, however, of +success, and was resolved to resign a seat to which he was in every way +indifferent. “Ambition, love of power,” he wrote to his wife on October +16, he had never felt, and he added, if vanity ever made one of the +ingredients which impelled him to take an active part in public life, it +had for many years altogether vanished away. He was nevertheless +reëlected by the district he had represented.</p> + +<hr style='width: 45%;' /> + +<p>The second session of the fourth Congress began on December 5, 1796. At +the beginning of this<span class='pagenum'><a name="Page_128" id="Page_128">[Pg 128]</a></span> session Mr. Gallatin took the reins of the +Republican party, and held them till its close. The position of the +Federalists had been strengthened before the country by the energy of +Washington, who, impatient of the delays which Great Britain opposed to +the evacuation of the posts, marched troops to the frontier and obtained +their surrender. Adet, the new French minister, had dashed the feeling +of attachment for France by his impudent notice to the President that +the dissatisfaction of France would last until the executive of the +United States should return to sentiments and measures more conformable +to the interests and friendships of the two nations. In September +Washington issued his Farewell Address, in which he gave the famous +warning against foreign complications, which, approved by the country, +has since remained its policy; but neither the prospect of his final +withdrawal from the political and official field, nor the advice of +Jefferson to moderate their zeal, availed to calm the bitterness of the +ultra Republicans in the House.</p> + +<p>The struggle over the answer to the President's message, which Fisher +Ames on this occasion reported, was again renewed. An effort was made to +strike out the passages complimentary to Washington and expressing +regret at his approaching retirement. Giles, who made the motion, went +so far as to say that he 'wished him to retire, and that this was the +moment for his retirement, that the government could do very well +without him,<span class='pagenum'><a name="Page_129" id="Page_129">[Pg 129]</a></span> and that he would enjoy more happiness in his retirement +than he possibly could in his present situation.' For his part he did +not consider Washington's administration either “wise or firm,” as the +address said. Gallatin made a distinction between the administration and +the legislature, and in lieu of the words, wise, firm, and patriotic +administration, proposed to address the compliment directly to the +wisdom, firmness, and patriotism of Washington. But Ames defended his +report, and it was adopted by a vote of 67 to 12. Gallatin voted with +the majority, but Livingston, Giles, and Macon held out with the small +band of disaffected, among whom it is amusing also to find Andrew +Jackson, who took his seat at this Congress to represent Tennessee, +which had been admitted as a State at the last session.<a name="FNanchor_5_5" id="FNanchor_5_5"></a><a href="#Footnote_5_5" class="fnanchor">[5]</a></p> + +<p>The indebtedness of the States to the general government, in the old +balance sheet, on the payment of which Gallatin insisted, was a subject +of difference between the Senate and the House. Gallatin was appointed +chairman of the committee of conference on the part of the House. The +reduction of the military establishment, which he wished to bring down +to the footing of 1792, was again insisted upon. Gallatin here +ingeniously<span class='pagenum'><a name="Page_130" id="Page_130">[Pg 130]</a></span> argued against the necessity for the number of men +proposed, that it was a mere matter of opinion, and if it was a matter +of opinion, it was not strictly necessary, because if necessary it was +no longer a matter of opinion. Naval appropriations were also opposed, +on the ground that a navy was prejudicial to commerce. Taxation, direct +and indirect, and compensation to public officers were also subjects of +debate at this session. On the subject of appropriations, general or +special, he was uncompromising. He charged upon the Treasury Department +that notwithstanding the distribution of the appropriations they thought +themselves at liberty to take money from an item where there was a +surplus and apply it to another where it was wanted. To check such +irregularity, he secured the passage of a resolution ordering that “the +several sums shall be solely applied to the objects for which they are +respectively appropriated,” and tacked it to the appropriation bill. The +Senate added an amendment removing the restriction, but Gallatin and +Nicholas insisting on its retention, the House supported them by a vote +of 52 to 36, and the Senate receded.</p> + +<p>Notwithstanding the apparent enthusiasm of the House in the early part +of the session, when the tricolor of France, a present from the French +government to the United States, was sent by Washington to Congress, to +be deposited with the archives of the nation, French influence was on +the wane. The common sense of the country got the<span class='pagenum'><a name="Page_131" id="Page_131">[Pg 131]</a></span> better of its +passion. In the reaction the Federalists regained the popular favor for +a season.</p> + +<p>Whatever latent sympathy the French people may have had for America as +the nation which set the example of resistance to arbitrary rule, the +French government certainly was moved by no enthusiasm for abstract +rights. Its only object was to check the power of their ancient enemy, +and deprive it of its empire beyond the seas. Nevertheless, France did +contribute materially to American success. The American government and +people acknowledged the value of her assistance, and, in spite of the +prejudices of race, there was a strong bond of sympathy between the two +nations; and when, in her turn, France, in 1789, threw off the feudal +yoke, she expected and she received the sympathy of America. Beyond this +the government and the people of the United States could not and would +not go. The position of France in the winter of 1796-97 was peculiar. +She was at war with the two most formidable powers of Europe,—Austria +and England, the one the mistress of Central Europe, the other supreme +ruler of the seas. The United States was the only maritime power which +could be opposed to Great Britain. The French government determined to +secure American aid by persuasion, if possible, otherwise by threat. The +Directory indiscreetly appealed from the American government to the +American people, forgetting that in representative governments these are +one. Nor was the precedent cited<span class='pagenum'><a name="Page_132" id="Page_132">[Pg 132]</a></span> in defense of this unusual +proceeding—namely, the appeal of the American colonists to the people +of England, Ireland, and Canada to take part in the struggle against the +British government—pertinent; for that was an appeal to sufferers under +a common yoke.</p> + +<p>The enthusiasm awakened in France by the dramatic reception of the +American flag, presented by Monroe to the French Convention, was +somewhat dampened by the cooler manner with which Congress received the +tricolor, and was entirely dashed by the moderation of the reply of the +House to Washington's message. The consent of the House to the +appropriations to carry out the Jay Treaty decided the French Directory +to suspend diplomatic relations with the United States. The marvelous +successes of Bonaparte in Italy over the Austrian army encouraged Barras +to bolder measures. The Directory not only refused to receive Charles C. +Pinckney, the new American minister, but gave him formal notice to +retire from French territory, and even threatened him with subjection to +police jurisdiction. In view of this alarming situation, President Adams +convened Congress.</p> + +<p>The first session of the fifth Congress began at Philadelphia on Monday, +May 15, 1797. Jonathan Dayton was reëlected speaker of the House. Some +new men now appeared on the field of national debate: Samuel Sewall and +Harrison Gray Otis from Massachusetts, James A. Bayard from<span class='pagenum'><a name="Page_133" id="Page_133">[Pg 133]</a></span> Delaware, +and John Rutledge, Jr., from South Carolina. Madison and Fisher Ames did +not return, and their loss was serious to their respective parties. +Madison was incontestably the finest reasoning power, and Ames, as an +orator, had no equal in our history until Webster appeared to dwarf all +other fame beside his matchless eloquence. Parties were nicely balanced, +the nominal majority being on the Federal side. Harper and Griswold +retained the lead of the administration party. Giles still led the +Republican opposition, but Gallatin was its main stay, always ready, +always informed, and already known to be in the confidence of Jefferson, +its moving spirit. The President's message was, as usual, the touchstone +of party. The debate upon it unmasked opinions. It was to all intents a +war message, since it asked provision for war. The action of France left +no alternative. The Republicans recognized this as well as the +Federalists. They must either respond heartily to the appeal of the +executive to maintain the national honor, or come under the charge they +had brought against the Federalists of sympathy with an enemy. At first +they sought a middle ground. Admitting that the rejection of our +minister and the manner of it, if followed by a refusal of all +negotiation on the subject of mutual complaints, would put an end to +every friendly relation between the two countries, they still hoped that +it was only a suspension of diplomatic intercourse. Hence, in response +to the assurance in the message<span class='pagenum'><a name="Page_134" id="Page_134">[Pg 134]</a></span> that an attempt at negotiation would +first be made, Nicholas moved an amendment in this vein. The Federalists +opposed all interference with the executive, but the Republicans took +advantage of the debate to clear themselves of any taint of unpatriotic +motives in their semi-opposition. The Federalists, repudiating the +charge of British influence, held up Genet to condemnation, as making an +appeal to the people, Fauchet as fomenting an insurrection, and Adet as +insulting the government. The Republicans retorted upon them Grenville's +proposition to Mr. Pinckney, to support the American government against +the dangerous Jacobin factions which sought to overturn it. Gallatin +deprecated bringing the conduct of foreign relations into debate, and +hoped that the majority would resist the rashness which would drive the +country into war; he claimed that a disposition should be shown to put +France on an equal footing with other nations. He would offer an +ultimatum to France. Harper closed the debate in a powerful and +brilliant speech, opposing the amendment because he was for peace, and +because peace could only be maintained by showing France that we were +preparing for war. So the rival leaders based their opposite action on a +common ground. Dayton, the speaker, now embodied Gallatin's idea in +another form, and introduced a paragraph to the effect that "the House +receive with the utmost satisfaction the information of the President +that a fresh attempt at negotiation will be instituted,<span class='pagenum'><a name="Page_135" id="Page_135">[Pg 135]</a></span> and cherish the +hope that a mutual spirit of conciliation and a disposition on the part +of the United States to place France on grounds as favorable as other +countries will produce an accommodation compatible with the engagements, +rights, and honor of our nation.”</p> + +<p>Kittera, who was one of the committee on the address, then moved to add +after “mutual spirit of conciliation” the clause, “to compensate for any +injury done to our neutral rights,” etc. This both Harper and Gallatin +opposed. Gallatin objected to being forced to this choice. To vote in +its favor was a threat, if compensation were refused; to vote against it +was an abandonment of the claim. But he should oppose it, if forced to a +choice. The Federal leaders insisted; the previous question was ordered, +51 to 48. Here Mr. Gallatin showed himself the leader of his party. He +stated that, the majority having determined the question, it was now a +choice of evils, and he should vote for the amendment, and it was +adopted, 78 ayes to 21 nays. Among the nays were Harper, the Federalist +leader, Giles, the nominal chief of the Republicans, and Nicholas, high +in rank in that party. But the last word was not yet said. Edward +Livingston, who day by day asserted himself more positively, denied that +the conduct of the executive had been “just and impartial to foreign +nations,” and moved to strike out the statement; Gallatin was more +moderate. Though he did not believe that in every instance the +government had been<span class='pagenum'><a name="Page_136" id="Page_136">[Pg 136]</a></span> just and impartial, yet, generally speaking, it had +been so. He did not approve the British treaty, though he attributed no +bad motives to its makers; but he did not think that the laws respecting +the subordinate departments of the executive and judiciary had been +fairly executed. He therefore would not consent to the sentence in the +answer to the address, that the House did not hesitate to declare that +“they would give their most cordial support to principles so +deliberately and uprightly established.”</p> + +<p>What, he asked, were these principles? Otis denounced this as an artful +attempt to cast a censure, not only on the executive, but on all the +departments of government, and Allen of Connecticut declared “that there +was American blood enough in the House to approve this clause and +American accent enough to pronounce it.” The rough prejudice of the +Saxon against the Latin race showed itself in this language, and +expressed the antagonism which Mr. Gallatin found to increase with his +political progress. Both the resolution and the amendment were defeated, +53 nays to 45 yeas. But when the final vote came upon the address, Mr. +Gallatin, with that practical sense which made him the sheet anchor of +his party in boisterous weather, voted with the Federalists and carried +the moderate Republicans with him. The vote was 62 to 36. Among the +irreconcilables the name of Edward Livingston is recorded.</p> + +<p>The answer of the President was a model of good<span class='pagenum'><a name="Page_137" id="Page_137">[Pg 137]</a></span> sense. “No event can +afford me so much cordial satisfaction as to conduct a negotiation with +the French Republic to a removal of prejudices, a correction of errors, +a dissipation of umbrages, an accommodation of all differences, and a +restoration of harmony and affection to the mutual satisfaction of both +nations.”</p> + +<p>This was the leading debate of the session. The situation was too grave +for trifling. On June 5, two days after the President's reply, +resolutions were introduced to put the country in a state of defense. +Gallatin struggled hard to keep down the appropriations, and opposed the +employment of the three frigates, which as yet had not been equipped or +manned. If they got to sea, the President would have no option except to +enforce the disputed articles of the French treaty. Gallatin laid down +also the law of search in accordance with the law of nations, and +pointed out that resistance to search or capture by merchantmen would +not only lead to war, but was war. In the remaining acts of the session +he was in favor of the defense of ports and harbors, with no preference +as to fortification on government territory; in favor of a prohibition +of the export of arms; against raising an additional corps of artillery; +against expatriation of persons who took service under foreign +governments. He opposed the duty on salt as unequal and unnecessary, and +sought to have the loan, which became necessary, cut down to the exact +sum of the deficiency in the appropriations; and<span class='pagenum'><a name="Page_138" id="Page_138">[Pg 138]</a></span> finally, on the +impeachment of William Blount, Senator of the United States, charged +with having conspired with the British government to attack the +Spaniards of St. Augustine, he pointed out the true method of procedure +in the preparation of the bill of impeachment and the arraignment of the +offender.</p> + +<p>The House adjourned on July 10. Jefferson complained of the weakness and +wavering of this Congress, the majority of which shifted with the breeze +of “panic or prowess.” This was, however, a very narrow view; for at +this session the House fairly represented the prevailing sentiment of +the country, which was friendly to France as a nation, but indignant +with the insolence of her rulers. Gallatin, in the middle of the +session, wrote to his wife that the Republicans “were beating and beaten +by turns.” He supposed that her father, Commodore Nicholson, 'thought +him too moderate and about to trim,' and then declared, 'Moderation and +firmness hath ever been, and ever will be, my motto.' Gallatin tells a +story of his colleague from Pennsylvania, the old Anti-Federalist, Blair +McClanachan, which shows the warmth of party feeling. They were both +dining with President Adams, who entertained the members of Congress in +turn. “McClanachan told the President that, by God, he would rather see +the world annihilated than this country united with Great Britain; that +there would not remain a single king in Europe within six months, etc., +all in the loudest and most decisive tone.”<span class='pagenum'><a name="Page_139" id="Page_139">[Pg 139]</a></span></p> + +<p>Jefferson, who, as vice-president, presided over the debates in the +Senate, had no cause to complain of any hesitation in that body, in +which the Federalists had regained a clear working majority, giving him +no chance of a deciding vote.</p> + +<hr style='width: 45%;' /> + +<p>The second session of the fifth Congress began on November 13, 1797. The +words of the President's address, “We are met together at a most +interesting period, the situation of the powers of Europe is singular +and portentous,” was not an idle phrase. The star of Bonaparte already +dominated the political firmament. Europe lay prostrate at the feet of +the armies of the Directory. England, who was supposed to be the next +object of attack, was staggering under the load of debt; and the sailors +of her channel fleet had risen in mutiny. Even the Federalists, the +aristocrats as Mr. Gallatin delighted to call them, believed that she +was gone beyond recovery. But the admirers of France were no better +satisfied with the threatening attitude of the Directory towards +America, and eagerly waited news of the reception given to the envoys +extraordinary, Gerry, Pinckney, and Marshall, whom Adams with the +consent of the Senate dispatched to Paris in the summer. Even Jefferson +lost his taste for a French alliance, and almost wished there were “an +ocean of fire between the new and the old world.”</p> + +<p>The tone of the President's address was considered wise on all sides, +and it was agreed that the<span class='pagenum'><a name="Page_140" id="Page_140">[Pg 140]</a></span> answer should be general and not a subject +of contention. One of the members asked to be excused from going with +the House to the President, but Gallatin showed that, as there was no +power to compel attendance, no formal excuse was necessary. When the +motion was put as to whether they should go in a body as usual to +present their answer, Mr. Gallatin voted in the negative. He +nevertheless accompanied the members, who were received pleasantly by +President Adams and “treated to cake and wine.”</p> + +<p>Harper was made the chairman of the Ways and Means Committee. Though of +high talents and a fine speaker, Gallatin found him a “great bungler” in +the business of the House, a large share of which fell upon his own +shoulders as well as the direction of the Republicans, of whom, +notwithstanding the jealousy of Giles, he now was the acknowledged +leader. As a member for Pennsylvania, Mr. Gallatin presented a memorial +from the Quakers with regard to the arrest of fugitive slaves on her +soil; the law of Pennsylvania declaring all men to be free who set foot +in that State except only servants of members of Congress. There was +already an opposition to hearing any petition with regard to slaves, but +Gallatin insisted on the memorial taking the usual course of reference +to a committee. He directed the House also in the correct path in its +legislation as to foreign coins. It was proposed to take from them the +quality of legal tender; but he showed that it was policy not to +discriminate<span class='pagenum'><a name="Page_141" id="Page_141">[Pg 141]</a></span> against such coins until the mint could supply a +sufficiency for the use of the country. In this argument he estimated +the entire amount of specie in the United States at eight millions of +dollars. At this early period in his political career he was acquiring +that precise knowledge of the facts of American finance which later +served to establish the principles upon which it is based.</p> + +<p>This session was noteworthy by reason of the first personal encounter on +the floor of the House. It was between two Northern members, Lyon of +Vermont and Griswold of Connecticut. Gallatin stood by Lyon, who was of +his party, and showed that the House could not expel him, since it was +not at the time in organized session. As the Federalists would not +consent to censure Griswold, both offenders escaped even a formal +reproof. The general bitterness of feeling which marked the summer +session was greatly modified in the expectant state of foreign politics; +but the occasion for display of political divergence was not long +delayed.</p> + +<p>On January 18, 1798, Mr. Harper, who led the business of the House, +moved the appropriation for foreign intercourse. This was seized upon by +the opposition to advance still further their line of attack by a +limitation of the constitutional prerogative of the President. In +addition to the usual salaries of the envoys to Great Britain and +France, appropriations were asked for the posts at Madrid, Lisbon, and +Berlin, which last Mr. Adams had designated as a first-class mission. +The discussion<span class='pagenum'><a name="Page_142" id="Page_142">[Pg 142]</a></span> on the powers of the President, and the extent to which +they might be controlled by paring down the appropriations, lifted the +debate from the narrow ground of economy in administration to the +higher plane of constitutional powers. Nicholas opened on the +Republican side by announcing that it was seasonable to bring back the +establishment of the diplomatic corps to the footing it had been on +until the year 1796. In all governments like our own he declared that +there was a tendency to a union and consolidation of all its parts into +the executive, and the limitation and annexion of the parts with each +other as settled by the Constitution would be destroyed by this +influence unless there were a constant attention on the part of the +legislature to resist it. The appointment of a minister plenipotentiary +to Prussia, with which we had little or no commercial intercourse, +offered an opportunity to determine this limitation. Harper said that +this was a renewal of the old charge that foreign intercourse was +unnecessary, and the old suggestion that our commerce ought to be given +up or left to shift for itself. Mr. Gallatin laid down extreme theories +which have never yet found practical application. He took the question +at once from party or personal ground by admitting that the government +was essentially pure, its patronage not extensive, or its effect upon +the legislative or any other branch of the government as yet material. +The Constitution had placed the patronage in the executive. There he +thought it was wisely placed. The leg<span class='pagenum'><a name="Page_143" id="Page_143">[Pg 143]</a></span>islature would be more corrupt +than the executive were it placed with them. While not willing at once +to give up political foreign intercourse, he thought that it should by +degrees be altogether declined. To it he ascribed the critical situation +of the country. Commercial intercourse could be protected by the +consular system. He then argued that the power to provide for expenses +was the check intended by the Constitution. To this Griswold answered +that this doctrine of checks contained more mischief than Pandora's box; +Bayard, that the checks were all directed to the executive, and that +they would check and counter-check until they <i>stopped the wheels of +government</i>.<a name="FNanchor_6_6" id="FNanchor_6_6"></a><a href="#Footnote_6_6" class="fnanchor">[6]</a> When the President was manacled and at the mercy of the +House they would be satisfied. He held the executive to be the weakest +branch of the government, because its powers are defined; but the limits +of the House are undefined.</p> + +<p>As the debate advanced, Nicholas declared that the purpose of the +Republicans was to define the executive power and to put an end to its +extension through their power over appropriations. Later he would bring +in a motion to do away with all foreign intercourse. Goodrich answered +that the office of foreign minister was created by the Constitution +itself, and the power of appointment was placed in the President. The +House might speculate upon the propriety of doing away with all +in<span class='pagenum'><a name="Page_144" id="Page_144">[Pg 144]</a></span>tercourse with foreign powers, but could not decide on it, for +political intercourse did not depend on the sending of ministers abroad. +Foreign ministers would come here and the Constitution required their +reception. The idea that we should have no foreign intercourse was taken +from Washington's Farewell Address, but his words applied only to +alliances offensive and defensive. If ministers were abandoned, envoys +extraordinary must be sent, a much more dangerous practice; the only +choice was between ministers and spies. In conclusion he accused the +Republicans of making one continuous attack upon the administration, and +charged that the opposition to the appropriation bill was not a single +measure, but connected with others, and intended to clog the wheels of +government.</p> + +<p>The purpose of the Republicans being thus declared by Nicholas and +squarely met by the friends of the administration, Mr. Gallatin, March +1, 1798, summed up the opposition arguments in an elaborate speech three +hours and a quarter in length. He denied the novel doctrine that each +department had checks within itself, but none upon others; he claimed +that the principle of checks is admitted in all mixed governments. +Commercial intercourse, he said, is regulated by the law of nations, by +the municipal law of respective countries and by treaties of commerce, +the application of which is the province of consuls. What advantages, he +asked, had our commercial<span class='pagenum'><a name="Page_145" id="Page_145">[Pg 145]</a></span> treaties given us, either that with France or +that with England? He excepted that part of the treaty with Great +Britain which arranged our difference with that power, as foreign to the +discussion. He claimed that the restriction which we had laid upon +ourselves by our commercial treaties had been attended with political +consequences fatal to our tranquillity. Washington had advised a +separation of our political from our commercial relations. The message +of President Adams intimated a different policy and alluded to the +balance of power in Europe as not to be forgotten or neglected. +Interesting as that balance may be to Europe, how does it concern us? We +shall never throw our weight into the scale. Passing from this to the +danger of the absorption of powers by the executive, he cited the +examples of the Córtes of Spain, the États Généraux of France, the Diets +of Denmark. In all these countries the executive is in possession of +legislative, of absolute powers. The fate of the European republics was +similar. Venice, Switzerland, and Holland had shown the legislative +powers merging into the executive. The object of the Constitution of the +United States is to divide and distribute the powers of government. With +uncontrolled command over the purse of the people the executive tends to +prodigality, to taxes, and to wars. He closed with a hope that a fixed +determination to prevent the increase of the national expenditure, and +to detach the country from any connection with European poli<span class='pagenum'><a name="Page_146" id="Page_146">[Pg 146]</a></span>tics, would +tend to reconcile parties, promote the happiness of America, and +conciliate the affection of every part of the Union. No such admirable +exposition of the true American doctrine of non-interference with +European politics had at that time been heard in Congress.</p> + +<p>In reply, Harper insisted on the admission that the purpose of the +amendment of Nicholas was to restrain the President; that it was a +question of power, not of money. Mr. Gallatin admitted the right of +appointment, but denied that the House was bound to appropriate. Harper +rejoined that the offices did not originate with the President but with +the Constitution, and that they could not be destroyed by the action of +the House, and, leaving the general ground of debate, made a brilliant +attack upon the Republicans as revolutionists, whom he divided into +three classes: the philosophers, the Jacobins, and the <i>sans-culottes</i>. +The philosophers are most to be dreaded. “They declaim with warmth on +the miseries of mankind, the abuses of government, and the vices of +rulers; all which they engage to remove, providing their theories should +once be adopted. They talk of the perfectibility of man and of the +dignity of his nature; and, entirely forgetting what he is, declaim +perpetually about what he should be.” Of Jacobins there are plenty. They +profit by the labors of others; tyrants in power, demagogues when not. +Fortunately for America there are few or no <i>sans-culottes</i> among her +inhabitants.<span class='pagenum'><a name="Page_147" id="Page_147">[Pg 147]</a></span> Jefferson, he said, returned from France a missionary to +convert Americans to the new faith, and he charged that the system of +French alliance and war with Great Britain by the United States was a +part of the scheme of the French revolutionists, and was imported into +this country. Gallatin and his friends he regarded in the light of an +enemy who has commenced a siege against the fortress of the +Constitution.</p> + +<p>The restricting amendment was lost, and the bill passed by a vote of 52 +yeas to 43 nays. Nor is it easy to see how the theory of Mr. Gallatin +with regard to diplomatic relations could have been applied successfully +with the existing channels of intercourse. Now that the ocean cable +brings governments into direct relation with each other, there is a +tendency to restrict the authority of ambassadors, for whom there is no +longer need, and the entire system will no doubt soon disappear. Mr. +Gallatin's speech was the delight of his party and his friends. He was +called upon to write it out, and two thousand copies of it were +circulated as the best exposition of Republican doctrine.</p> + +<p>Early in February the President informed Congress of certain captures +and outrages committed by a French privateer within the limits of the +United States, including the burning of an English merchantman in the +harbor of Charleston. On March 19, in a further special message, he +communicated dispatches from the American envoys in France, and also +informed Congress that he<span class='pagenum'><a name="Page_148" id="Page_148">[Pg 148]</a></span> should withdraw his order forbidding merchant +vessels to sail in an armed condition. A collision might, therefore, +occur at any moment.</p> + +<p>On March 27, 1798, a resolution was introduced that it is not now +expedient for the United States to resort to war against the French +Republic; a second, to restrict the arming of merchant vessels; and a +third, to provide for the protection of the seacoast and the internal +defense of the country. Speaking to the first resolution, Mr. Gallatin +said that the United States had arrived at a crisis at which a stand +must be made, when the House must say whether it will resort to war or +preserve peace. If to war, the expense and its evils must be met; if +peace continue, then the country must submit: in either case American +vessels would be taken. It was a mere matter of calculation which course +would best serve the interest and happiness of the country. If he could +separate defensive from offensive war, he should be in favor of it; but +he could not make the distinction, and therefore he should be in favor +of measures of peace. The act of the President was a war measure. +Members of the House so designated it in letters to their constituents.</p> + +<p>On April 2 the President was requested to communicate the instructions +and dispatches from the envoys extraordinary, mention of which he had +made in his message of March 19. Gallatin supported the call. He said +that the President was not afraid of communicating information, as<span class='pagenum'><a name="Page_149" id="Page_149">[Pg 149]</a></span> he +had shown in the preceding session, and that to withhold it would +endanger the safety of our commerce, or prevent the happy issue of +negotiation. On April 3 Mr. Gallatin presented a petition against +hazarding the neutrality and peace of the nation by authorizing private +citizens to arm and equip vessels. This was signed by forty members of +the Pennsylvania legislature. Protests of a similar character were +presented from other parts of the country. On the same day the President +sent in the famous X Y Z dispatches, in confidence. These letters +represented the names of Hottinguer, Bellamy, and Hauteval, the agents +of Talleyrand, the foreign minister of the First Consul, which were +withheld by the President. The mysterious negotiations contained a +distinct demand by Talleyrand of a douceur of 1,200,000 livres to the +French officials as a condition of peace. The effect was immediately to +strengthen the administration, Dayton, the speaker, passing to the ranks +of the Federalists.</p> + +<p>On the 18th the Senate sent down a bill authorizing the President to +procure sixteen armed vessels to act as convoys. Gallatin still held +firm. He admitted that from the beginning of the European contest the +belligerent powers had disregarded the law of nations and the +stipulations of treaties, but he still opposed the granting of armed +convoys, which would lead to a collision. Let us not, he said, act on +speculative grounds; if our present situation is better than war, let us +keep it. Better<span class='pagenum'><a name="Page_150" id="Page_150">[Pg 150]</a></span> even, he said, suffer the French to go on with their +depredations than to take any step which may lead to war.</p> + +<p>Allen of Connecticut read a passage from the dispatches which envenomed +the debate. By it one of the French agents appears to have warned the +American envoys that they were mistaken in supposing that an exposition +of the unreasonable demands of France would unite the people of the +United States. He said, “You should know that the <i>diplomatic skill</i> of +France and the <i>means</i> she possesses in your country are sufficient to +enable her, with the <i>French party</i> in America, to throw the blame which +will attend the rupture of the negotiations on the <i>Federalists</i>, as you +term yourselves, but on the <i>British party</i>, as France terms you, and +you may assure yourselves this will be done.” Allen then charged upon +Gallatin that his language was that of a foreign agent. Gallatin replied +that the representatives of the French Republic in this country had +shown themselves to be the worst diplomatists that had ever been sent to +it, and he asked why the gentlemen who did not come forward with a +declaration of war (though they were willing to go to war without the +declaration) charge their adversaries with meaning to submit to France. +France might declare war or give an order to seize American vessels, but +as long as she did not, some hope remained that the state of peace might +not be broken; and he said in conclusion "that, notwithstanding all the +vio<span class='pagenum'><a name="Page_151" id="Page_151">[Pg 151]</a></span>lent charges and personal abuse which had been made against him, it +would produce no difference in his manner of acting, neither prevent him +from speaking against every measure which he thought injurious to the +public interest, nor, on the other hand, inflame his mind so as to +induce him to oppose measures which he might heretofore have thought +proper.”</p> + +<p>The war feeling ran high in the country; “Millions for defense, but not +one cent for tribute,”<a name="FNanchor_7_7" id="FNanchor_7_7"></a><a href="#Footnote_7_7" class="fnanchor">[7]</a> was the popular cry. On May 28 Mr. Harper +introduced a bill to suspend commercial intercourse with France. +Gallatin thought this a doubtful measure. Its avowed purpose was to +distress France in the West Indies, but he said that in six months that +entire trade would be by neutral vessels. In the discussion on the bill +to regulate the arming of merchant vessels, he showed that it was the +practice of neutral European nations to allow such vessels to arm, but +not to regulate their conduct. Bonds are required in cases of letter of +marque, and the merchant who arms is bound not to break the laws of +nations or the agreements of treaties. Restriction was therefore +unnecessary. Government should not interfere. Commercial intercourse +with France was suspended June 13.</p> + +<p>In the pride of their new triumph and the intensity of their personal +feeling the Federalists overleaped their mark, and began a series of +measures which ultimately cost them the possession of the<span class='pagenum'><a name="Page_152" id="Page_152">[Pg 152]</a></span> government +and their political existence. The first of these was the Sedition Bill, +which Jefferson believed to be aimed at Gallatin in person. Mr. Gallatin +met it at its inception with a statement of the constitutional +objections, viz., 1st, that there was no power to make such a law, and +2d, the special provision in the Constitution that the writ of <i>habeas +corpus</i> shall not be suspended except in cases of rebellion and +invasion. There was neither. The second, the Alien Bill, gave the +President power to expel from the country all aliens. Over this measure +Gallatin and Harper had hot words. Gallatin charged upon Harper not only +a misrepresentation of the arguments of his opponents, but an +arraignment of the motives of others, while claiming all purity for his +own. Harper answered in words which show that Gallatin, for once, had +met warmth with warmth, and anger with anger. When, Harper said, a +gentleman, who is usually so cool, all at once assumes such a tone of +passion as to forget all decorum of language, it would seem as if the +observation had been properly applied. On the vote to strike out the +obnoxious sections, the Federalists defeated their antagonists, and on +June 21 the bill itself was passed with all its odious features by 46 to +40.</p> + +<p>On June 21 President Adams sent in a message with letters from Gerry, +who had remained at Paris after the return of Marshall and Pinckney, on +the subject of a loan. They contained an intimation from Talleyrand that +he was ready to<span class='pagenum'><a name="Page_153" id="Page_153">[Pg 153]</a></span> resume negotiations. In this message Adams said, “I +will never send another minister to France without assurances that he +will be received, respected, and honored as the representative of a +great, free, powerful, and independent nation.” On the 25th an act was +passed authorizing the commanders of merchant vessels to defend +themselves against search and seizure under regulations by the +President. On June 30 a further act authorized the purchase and +equipment of twelve vessels as an addition to the naval armament. To all +intents and purposes a state of war between the two countries already +existed.</p> + +<p>The 4th of July (1798) was celebrated with unusual enthusiasm all over +the United States, and the black cockade was generally worn. This was +the distinctive badge of the Federalists, and a response to the tricolor +which Adet had recommended all French citizens to wear in 1794.</p> + +<p>On July 5 a resolution was moved to appoint a committee to consider the +expediency of declaring, by legislative act, the state of relations +between the United States and the French Republic. Mr. Gallatin asked if +a declaration of war could not be moved as an amendment, but the +speaker, Mr. Dayton, made no reply. Mr. Gallatin objected that Congress +could not declare a state of facts by a legislative act. But this view, +if tenable then, has long since been abandoned. In witness of which it +is only necessary to name the celebrated resolution of the Congress of +1865 with regard to<span class='pagenum'><a name="Page_154" id="Page_154">[Pg 154]</a></span> the recognition of a monarchy in Mexico. July 6 the +House went into committee of the whole on the state of the Union to +consider a bill sent down by the Senate abrogating the treaty with +France. The bill was passed on the 16th by a vote of 47 ayes to 37 nays, +Gallatin voting in the negative. The House adjourned the same day.</p> + +<p>While thus engaged in debates which called into exercise his varied +information and displayed not only the extent of his learning but his +remarkable powers of reasoning and statement, Mr. Gallatin never lost +sight of reform in the administration of the finances of the government. +To the success of his efforts to hold the Treasury Department to a +strict conformity with his theory of administration, Mr. Wolcott, the +secretary, gave ample if unwilling testimony. To Hamilton he wrote on +April 5, 1798, “The management of the Treasury becomes more and more +difficult. The legislature will not pass laws in gross; their +appropriations are minute. Gallatin, to whom they yield, is evidently +intending to break down this department by charging it with an +impracticable detail.”</p> + +<p>During these warm discussions Gallatin rarely lost his self-control. +Writing to his old friend Lesdernier at this period, he said, “You may +remember I am blessed with a very even temper; it has not been altered +by time or politics.”</p> + +<hr style='width: 45%;' /> + +<p>The third session of the fifth Congress opened on December 3, 1798. On +the 8th, when the<span class='pagenum'><a name="Page_155" id="Page_155">[Pg 155]</a></span> President was expected, Lieutenant-General Washington +and Generals Pinckney and Hamilton entered the hall and took their +places on the right of the speaker's chair. They had been recently +appointed to command the army of defense.</p> + +<p>The President's speech announced no change in the situation. “Nothing,” +he said, “is discoverable in the conduct of France which ought to change +or relax our measures for defense. On the contrary, to extend and +invigorate them is our true policy. An efficient preparation for war can +alone insure peace. It must be left to France, if she is indeed desirous +of accommodation, to take the requisite steps. The United States will +steadily observe the maxims by which they have hitherto been governed.” +The reply to this patriotic sentiment was unanimously agreed to, and was +most grateful to Adams, who thanked the House for it as “consonant to +the characters of representatives of a great and free people.”</p> + +<p>On December 27 a peculiar resolution was introduced to punish the +usurpation of the executive authority of the government of the United +States in carrying on correspondence with the government of any foreign +prince or state. Gallatin thought this resolution covered too much +ground. The criminality of such acts did not lie in their being +usurpations, but in the nature of the crime committed. There was no +authority in the Constitution for a grant of such a power to the +President. To afford aid and comfort to the enemy<span class='pagenum'><a name="Page_156" id="Page_156">[Pg 156]</a></span> was treason, but +there was no war, and therefore no enemy. He claimed the right to +himself and others to do all in his power to secure a peace, even by +correspondence abroad, and he would not admit that the ground taken by +the friends of the measure was a proper foundation for a general law. A +committee was, however, appointed, in spite of this remonstrance, to +consider the propriety of including in the general act all persons who +should commence or carry on a correspondence, by a vote of 65 to 23. A +bill was reported on January 9, when Gallatin endeavored to attach a +proviso that the law should not operate upon persons seeking justice or +redress from foreign governments; but his motion was defeated by a vote +of 48 to 37. Later, however, a resolution of Mr. Parker, that nothing in +the act should be construed to abridge the rights of any citizen to +apply for such redress, was adopted by a vote of 69 yeas to 27 nays. On +this vote Harper voted yea. Griswold, Otis, Bayard, and Goodrich were +found among the nays. Gallatin succeeded in carrying an amendment +defining the bill, after which it was passed by a vote of 58 to 36.</p> + +<p>Towards the close of January, 1799, a bill was brought in authorizing +the President to discontinue the restraints of the act suspending +intercourse with the French West India Islands, whenever any persons in +authority or command should so request. This was to invite a secession +of the French colonies from the mother country. Galla<span class='pagenum'><a name="Page_157" id="Page_157">[Pg 157]</a></span>tin deprecated any +action which might induce rebellion against authority, or lead to +self-government among the people of the islands who were unfit for it. +Moreover, such action would remove still further every expectation of an +accommodation with France. The bill was passed by a vote of 55 to 37. He +objected to the bill to authorize the President to suspend intercourse +with Spanish and Dutch ports which should harbor French privateers, as +placing an unlimited power to interdict commerce in the hands of the +executive. The bill was carried by 55 to 37. On the question of the +augmentation of the navy he opposed the building of the seventy-fours.</p> + +<p>In February Edward Livingston presented a petition from aliens, natives +of Ireland, against the Alien and Sedition laws. Numerous similar +petitions followed; one was signed by 18,000 persons in Pennsylvania +alone. To postpone consideration of the subject, the Federalists sent +these papers to a select committee, against the protests of Livingston +and Gallatin. This course was the more peculiar because of the reference +of petitions of a similar character in the month previous to the +committee of the whole. The Federalists were abusing their majority, and +precipitating their unexpected but certain ruin. One more effort was +made to repeal the offensive penal act; the constitutional objection was +again pleaded, but the repeal was defeated by a vote of 52 in the +affirmative. Mr. Gallatin opposed these laws in all their<span class='pagenum'><a name="Page_158" id="Page_158">[Pg 158]</a></span> stages, but, +failing in this, persistently endeavored to make them as good as +possible before they passed. Jefferson later said that nothing could +obliterate from the recollection of those who were witnesses of it the +courage of Gallatin in the “Days of Terror.”<a name="FNanchor_8_8" id="FNanchor_8_8"></a><a href="#Footnote_8_8" class="fnanchor">[8]</a> The vote of thanks to +Mr. Dayton, the speaker, was carried by a vote of 40 to 22. On March 3, +1800, this Congress adjourned.</p> + +<hr style='width: 45%;' /> + +<p>The sixth Congress met at Philadelphia on December 2, 1799. The +Federalists were returned in full majority. Among the new members of the +House, John Marshall and John Randolph appeared for Virginia. Theodore +Sedgwick was chosen speaker. President Adams came down to the House on +the 3d and made the usual speech. The address in reply, reported by a +committee of which Marshall was chairman, was agreed to without +amendment. Adams was again delighted with the very respectful terms +adopted at the “first assembly after a fresh election, under the strong +impression of the public opinion and national sense at this interesting +and singular crisis.” At this session it was the sad privilege of +Marshall to announce the death of Washington, “the Hero, the Sage, and +the Patriot of America.” In the shadow of this great grief, party +passion was hushed for a while.<span class='pagenum'><a name="Page_159" id="Page_159">[Pg 159]</a></span></p> + +<p>Gallatin again led the Republican opposition; Nicholas and Macon were +his able lieutenants. The line of attack of the Republicans was clear. +If war could be avoided, the growing unpopularity of the Alien and +Sedition laws would surely bring them to power. The foreign-born voter +was already a factor in American politics. In January the law providing +for an addition to the army was suspended. Macon then moved the repeal +of the Sedition Law. He took the ground that it was a measure of +defense. Bayard adroitly proposed as an amendment that “the offenses +therein specified shall remain punishable as at common law, provided +that upon any prosecution it shall be lawful for the defendant to give +as his defense the truth of the matter charged as a libel.” Gallatin +called upon the chair to declare the amendment out of order, as intended +to destroy the resolution, but the speaker declined, and the amendment +was carried by a vote of 51 to 47. The resolution thus amended was then +defeated by a vote of 87 to 1. The Republicans preferred the odious act +in its original form rather than accept the Federal interpretation of +it.</p> + +<p>On February 11, 1800, a bill was introduced into Congress further to +suspend commercial intercourse with France. It passed the House after a +short debate by a vote of 68 yeas to 28 nays. On this bill the +Republican leaders were divided. Nicholas, Macon, and Randolph opposed +it; but Gallatin, separating from his friends, carried<span class='pagenum'><a name="Page_160" id="Page_160">[Pg 160]</a></span> enough of his +party with him to secure its passage. Returned by the Senate with +amendments, it was again objected to by Macon as fatal to the interests +of the Southern States, but the House resolved to concur by a vote of 50 +to 36.</p> + +<p>In March the country was greatly excited by the news of an engagement on +the 1st of February, off Guadaloupe, between the United States frigate +Constellation, thirty-eight guns, and a French national frigate, La +Vengeance, fifty-four guns. The House of Representatives called on the +secretary of the navy for information, and, by 84 yeas to 4 nays, voted +a gold medal to Captain Truxton, who commanded the American ship. John +Randolph's name is recorded in the negative.</p> + +<p>Notwithstanding this collision, the relations of the United States and +France were gradually assuming a kindlier phase. The Directory had +sought to drive the American government into active measures against +England. Bonaparte, chosen First Consul, at once adopted a conciliatory +tone. Preparing for a great continental struggle, he was concentrating +the energies and the powers of France. In May Mr. Parker called the +attention of the House to this change of conduct in the French +government and offered a resolution instructing the Committee on +Commerce to inquire if any amendments to the Foreign Intercourse Act +were necessary. Macon moved to amend so that the inquiry should be +whether it were not expedient to repeal the act. Gallatin opposed the +reso<span class='pagenum'><a name="Page_161" id="Page_161">[Pg 161]</a></span>lution on the ground that it was highly improper to take any +measures at the present time which would change the defensive system of +the country. The resolution was negatived,—43 nays to 40 yeas.</p> + +<p>One singular opposition of Gallatin is recorded towards the close of the +session; the Committee on the Treasury Department reported an amendment +to the act of establishment, providing that the secretary of the +treasury shall lay before Congress, at the commencement of every +session, a report on finance with plans for the support of credit, etc. +Gallatin and Nicholas opposed this bill, because it came down from the +Senate, which had no constitutional right to originate a money bill; but +Griswold and Harper at once took the correct ground that it was not a +bill, but a report on the state of the finances, in which the Senate had +an equal share with the House. The bill was passed by a vote of 43 to +39. It is worthy of note that the first report on the state of the +finances communicated under this act was by Mr. Gallatin himself the +next year, and that it was sent in to the Senate. The House adjourned on +May 14, 1800.</p> + +<hr style='width: 45%;' /> + +<p>The second session of the sixth Congress was held at the city of +Washington, to which the seat of government had been removed in the +summer interval. After two southerly migrations they were now +definitively established at a national<span class='pagenum'><a name="Page_162" id="Page_162">[Pg 162]</a></span> capital. The session opened on +November 17, 1800. On the 22d President Adams congratulated Congress on +“the prospect of a residence not to be changed.” The address of the +House in reply was adopted by a close vote.</p> + +<p>The situation of foreign relations was changed. The First Consul +received the American envoys cordially, and a commercial convention was +made but secured ratification by the Senate only after the elimination +of an article and a limitation of its duration to eight years. While the +bill was pending in the Senate, Mr. Samuel Smith moved to continue the +act to suspend commercial intercourse with France. Mr. Gallatin opposed +this motion; at the last session he had voted for this bill because +there was only the appearance of a treaty. Now that the precise state of +negotiation was known, why should the House longer leave this matter to +the discretion of the President? The House decided to reject the +indiscreet bill by a vote of 59 to 37. An effort was also made to repeal +a part of the Sedition Law, and continue the rest in force, but the +House refused to order the engrossing of the bill, taking wise counsel +of Dawson, who said that, supported by the justice and policy of their +measures, the approaching administration would not need the aid of +either the alien, sedition, or common law. The opponents of the bill +would not consent to any modification. The last scenes of the session +were of exciting interest.<span class='pagenum'><a name="Page_163" id="Page_163">[Pg 163]</a></span></p> + +<p>Freed from the menace of immediate war, the people of plain common sense +recognized that the friendship of Great Britain was more dangerous than +the enmity of France. They dreaded the fixed power of an organized +aristocracy far more than the ephemeral anarchy of an ill-ordered +democracy; they were more averse to class distinctions protected by law +than even to military despotism which destroyed all distinctions, and +they preferred, as man always has preferred and always will prefer, +personal to political equality. The Alien and Sedition laws had borne +their legitimate fruit. The foreign-born population held the balance of +power; a general vote would have shown a large Republican or, it is more +correct to say, anti-Federalist majority. But the popular will could not +be thus expressed. Under the old system each elector in the electoral +college cast his ballot for president and vice-president without +designation of his preference as to who should fill the first place. New +England was solid for Adams, who, however, had little strength beyond +the limits of this Federal stronghold. New York and the Southern States +with inconsiderable exceptions were Republican. Pennsylvania was so +divided in the legislature that her entire vote would have been lost but +for a compromise which gave to the Republicans one vote more than to the +Federalists. Adams being out of the question, the election to the first +place lay between Jefferson and Burr, both Republicans. The Federalists, +therefore, had<span class='pagenum'><a name="Page_164" id="Page_164">[Pg 164]</a></span> their option between the two Republican candidates, and +the result was within the reach of that most detestable of combinations, +a political bargain. Mr. Gallatin's position in this condition of +affairs was controlling. His loyalty to Jefferson was unquestioned, +while Burr was the favorite of the large Republican party in New York +whose leaders were Mr. Gallatin's immediate friends and warm supporters. +Both Jefferson and Burr were accused of bargaining to secure enough of +the Federalist vote to turn the scale. That Mr. Jefferson did make some +sacrifice of his independence is now believed. Whether Mr. Gallatin was +aware of any such compromise is uncertain. If such bargain were made, +General Samuel Smith was the channel of arrangement, and in view of the +inexplicable and ignominious deference of Jefferson and Madison to his +political demands, there is little doubt that he held a secret power +which they dared not resist. Gallatin felt it, suffered from it, +protested against it, but submitted to it.</p> + +<p>The fear was that Congress might adjourn without a conclusion. To meet +this emergency Mr. Gallatin devised a plan of balloting in the House, +which he communicated to Mr. Jefferson and Mr. Nicholas. It stated the +objects of the Federalists to be, 1st, to elect Burr; 2d, to defeat the +present election and order a new one; 3d, to assume <i>executive</i> power +during the interregnum. These he considers, and suggests alternative +action in case of submission or resistance on the part of the +Re<span class='pagenum'><a name="Page_165" id="Page_165">[Pg 165]</a></span>publicans. The Federalists, holding three branches of government, +viz., the presidency, a majority in the Senate, and a majority in the +House, might pass a law declaring that one of the great officers +designated by the Constitution should act as president pro tempore, +which would be constitutional. But while Mr. Gallatin in this paragraph +admitted such a law to be constitutional, in the next he argued that the +act of the person designated by law, or of the president pro tempore, +assuming the power is clearly “unconstitutional.” By this ingenious +process of reasoning, to which the strict constructionists have always +been partial, it might be unconstitutional to carry out constitutional +law. The assumption of such power was therefore, Mr. Gallatin held, +usurpation, to be resisted in one of two ways; by declaring the interval +till the next session of Congress an interregnum, allowing all laws not +immediately connected with presidential powers to take their course, and +opposing a silent resistance to all others; or by the Republicans +assuming the executive power by a joint act of the two candidates, or by +the relinquishment of all claims by one of them. On the other hand, the +proposed outlines of Republican conduct were, 1st, to persevere in +voting for Mr. Jefferson; 2d, to use every endeavor to defeat any law on +the subject; 3d, to try to persuade Mr. Adams to refuse his consent to +any such law and not to call the Senate on any account if there should +be no choice by the House.<span class='pagenum'><a name="Page_166" id="Page_166">[Pg 166]</a></span></p> + +<p>In a letter written in 1848 Mr. Gallatin said that a provision by law, +that if there should be no election the executive power be placed in the +hands of some public officer, was a revolutionary act of usurpation +which would have been put down by force if necessary. It was threatened +that, if any man should be thus appointed President he should instantly +be put to death, and bodies of men were said to be organized, in +Maryland and Virginia, ready to march to Washington on March 4 for that +purpose. The fears of violence were so great that to Governor McKean of +Pennsylvania was submitted the propriety of having a body of militia in +readiness to reach the capital in time to prevent civil war. From this +letter of Mr. Gallatin, then the last surviving witness of the election, +only one conclusion can be drawn: that the Republicans would have +preferred violent resistance to temporary submission, even though the +officer exercising executive powers was appointed in accordance with +law. Fortunately for the young country there was enough good sense and +patriotism in the ranks of the Federalists to avert the danger.</p> + +<p>On the suggestion of Mr. Bayard it was agreed by a committee of sixteen +members, one from each State, that if it should appear that the two +persons highest on the list, Jefferson and Burr, had an equal number of +votes, the House should immediately proceed in their own chamber to +choose the president by ballot, and should not adjourn until<span class='pagenum'><a name="Page_167" id="Page_167">[Pg 167]</a></span> an +election should have been made. On the first ballot there was a tie +between Jefferson and Burr; the deadlock continued until February 17, +when the Federalists abandoned the contest, and Mr. Jefferson received +the requisite number of votes. Burr, having the second number, became +vice-president.</p> + +<p>Mr. Gallatin's third congressional term closed with this Congress. In +his first term he asserted his power and took his place in the councils +of the party. In his second, he became its acknowledged chief. In the +third, he led its forces to final victory. But for his opposition, war +would have been declared against France, and the Republican party would +have disappeared in the political chasm. But for his admirable +management, Mr. Jefferson would have been relegated to the study of +theoretical government on his Monticello farm, or to play second fiddle +at the Capitol to the music of Aaron Burr.</p> + +<p>In the foregoing analysis of the debates and resolutions of Congress, +and the recital of the part taken in them by Mr. Gallatin, attention has +only been paid to such of the proceedings as concerned the +interpretation of the Constitution or the forms of administration with +which Mr. Gallatin interested himself. From the day of his first +appearance he commanded the attention and the respect of his fellows. +The leadership of his party fell to him as of course. It was not grasped +by him. He was never a partisan. He never waived his<span class='pagenum'><a name="Page_168" id="Page_168">[Pg 168]</a></span> entire +independence of judgment. His ingenuity and adroitness never tempted him +to untenable positions. Hence his party followed him with implicit +confidence. Yet while the debates of Congress, imperfectly reported as +they seem to be in its annals, show the deference paid to him by the +Republican leaders, and display the great share he took in the +definition of powers and of administration as now understood, his name +is hardly mentioned in history. Jefferson and Madison became presidents +of the United States. They, with Gallatin, formed the triumvirate which +ruled the country for sixteen years. Gallatin was the youngest of the +three.<a name="FNanchor_9_9" id="FNanchor_9_9"></a><a href="#Footnote_9_9" class="fnanchor">[9]</a> To this political combination Gallatin brought a knowledge of +constitutional law equal to their own, a knowledge of international law +superior to that of either, and a habit of practical administration of +which they had no conception. The Republican party lost its chief when +Gallatin left the House; from that day it floundered to its close.</p> + +<p>In the balance of opinion there are no certain weights and measures. The +preponderance of causes cannot be precisely ascertained. The freedom +which the people of the United States enjoy to-day is not the work of +any one party. Those who are descended from its original stock, and +those whom its free institutions have since invited to full membership, +owe that freedom to two causes:<span class='pagenum'><a name="Page_169" id="Page_169">[Pg 169]</a></span> the one, formulated by Hamilton, a +strong, central power, which, deriving its force from the people, +maintains its authority at home and secures respect abroad; the other, +the spirit of liberty which found expression in the famous declaration +of the rights of man. This influence Jefferson represented. It taught +the equality of man; not equality before the law alone, nor yet +political equality, but that absolute freedom from class distinction +which is true social equality; in a word, mutual respect. But for +Hamilton we might be a handful of petty States, in discordant +confederation or perpetual war; but for Jefferson, a prey to the class +jealousy which unsettles the social relations and threatens the +political existence of European States.<span class='pagenum'><a name="Page_170" id="Page_170">[Pg 170]</a></span></p> + +<div class="footnotes"><h3>FOOTNOTES:</h3> + +<div class="footnote"><p><a name="Footnote_4_4" id="Footnote_4_4"></a><a href="#FNanchor_4_4"><span class="label">[4]</span></a> Lord Sheffield to Mr. Abbott, November 6, 1812. +<i>Correspondence of Lord Colchester</i>, ii. 409.</p></div> + +<div class="footnote"><p><a name="Footnote_5_5" id="Footnote_5_5"></a><a href="#FNanchor_5_5"><span class="label">[5]</span></a> Gallatin later described Jackson as he first saw him in his +seat in the House: “A tall, lank, uncouth looking individual, with long +locks of hair hanging over his brows and face, while a queue hung down +his back tied in an eelskin. The dress of this individual was singular, +his manners and deportment that of a backwoodsman.” Bartlett's +<i>Reminiscences of Gallatin</i>.</p></div> + +<div class="footnote"><p><a name="Footnote_6_6" id="Footnote_6_6"></a><a href="#FNanchor_6_6"><span class="label">[6]</span></a> The phrase “stop the wheels of government” originated with +“Peter Porcupine” (William Cobbett) and was on every tongue.</p></div> + +<div class="footnote"><p><a name="Footnote_7_7" id="Footnote_7_7"></a><a href="#FNanchor_7_7"><span class="label">[7]</span></a> Charles C. Pinckney, when ambassador to France, 1796.</p></div> + +<div class="footnote"><p><a name="Footnote_8_8" id="Footnote_8_8"></a><a href="#FNanchor_8_8"><span class="label">[8]</span></a> Jefferson to William Duane, March 28, 1811. Jefferson's +<i>Works</i>, vol. v. p. 574.</p></div> + +<div class="footnote"><p><a name="Footnote_9_9" id="Footnote_9_9"></a><a href="#FNanchor_9_9"><span class="label">[9]</span></a> Jefferson was born in 1743, Madison in 1751, Gallatin in +1761.</p></div> +</div> + +<hr style="width: 65%;" /> +<h2><a name="CHAPTER_VI" id="CHAPTER_VI"></a>CHAPTER VI<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>SECRETARY OF THE TREASURY</h3> + +<h2><i>Funding</i></h2> + +<p>The material comfort of every people depends more immediately upon the +correct management of its finances than upon any other branch of +government. <i>Haute finance</i>, to use a French expression for which there +is no English equivalent, demands in its application the faculties of +organization and administration in their highest degree. The relations +of money to currency and credit, and their relations to industry and +agriculture, or in modern phrase of capital to labor, fall within its +scope. The history of France, the nation which has best understood and +applied true principles of finance, supplies striking examples of the +benefits a finance minister of the first order renders to his country, +and the dangers of false theories. The marvelous restoration of its +prosperity by the genius of Colbert, the ruin caused by the malign +sciolism of Law, are familiar to all students of political economy. Nor +has the United States been less favored. The names of Morris, Hamilton, +Gallatin, and Chase shine with equal lustre.</p> + +<p>Morris, the Financier of the Revolution, was<span class='pagenum'><a name="Page_171" id="Page_171">[Pg 171]</a></span> called to the +administration of the money department of the United States government +when there was no money to administer. Before his appointment as +“Financier” the expenses of the government, military and civil, had been +met by expedients; by foreign loans, lotteries, and loan office +certificates; finally by continental money, or, more properly speaking, +bills of credit emitted by authority of Congress and made legal tender +by joint action of Congress and the several States. The relation of coin +to paper in this motley currency appears in the appendix to the “Journal +of Congress” for the year 1778, when the government paid out in fourteen +issues of paper currency, $62,154,842; in specie, $78,666; in French +livres, $28,525.<a name="FNanchor_10_10" id="FNanchor_10_10"></a><a href="#Footnote_10_10" class="fnanchor">[10]</a> The power of taxation was jealously withheld by the +States, and Congress could not go beyond recommending to them to levy +taxes for the withdrawal of the bills emitted by it for their quotas, +<i>pari passu</i> with their issue. When the entire scheme of paper money +failed, the necessary supplies for the army were levied in kind. In the +spring of 1781 the affairs of the Treasury Department were investigated +by a committee of Congress, and an attempt was made to ascertain the +precise condition of the public debt. The amount of foreign debt was +approximately reached, but the record of the domestic debt was +inextricably involved, and never definitely discovered. Morris soon +brought order out of this chaos. His plan<span class='pagenum'><a name="Page_172" id="Page_172">[Pg 172]</a></span> was to liquidate the public +indebtedness in specie, and fund it in interest-bearing bonds. The Bank +of North America was established, the notes of which were soon preferred +to specie as a medium of exchange. Silver, then in general use as the +measure of value, was adopted as the single standard. The weight and +pureness of the dollar were fixed by law. The dollar was made the unit +of account and payment, and subdivisions were made in a decimal ratio. +This was the dollar of our fathers. Gouverneur Morris, the assistant of +the Financier, suggested the decimal computation, and Jefferson the +dollar as the unit of account and payment. The board of treasury, which +for five years had administered the finances in a bungling way, was +dissolved by Congress in the fall of 1781, and Morris was left in sole +control. Semi-annual statements of the public indebtedness were now +begun. The expenses of the government were steadily and inflexibly cut +down to meet the diminishing income. A loan was negotiated in Holland, +and, with the aid of Franklin, the amount of indebtedness to France was +established.</p> + +<p>The public debt on January 1, 1783, was $42,000,375, of which $7,885,088 +was foreign, bearing four and five per cent. interest; and $34,115,290 +was held at home at six per cent. The total amount of interest was +$2,415,956. No means were provided for the payment of either principal +or interest. In July of the previous year Morris urged the wisdom of +funding the public debt, in a<span class='pagenum'><a name="Page_173" id="Page_173">[Pg 173]</a></span> masterly letter to the president of +Congress. On December 16 a sinking fund was provided for by a +resolution, which, though inadequate to the purpose, was at least a +declaration of principle. In February, 1784, Morris notified Congress of +his intended retirement from office. He may justly be termed the father +of the American system of finance. In his administration he inflexibly +maintained the determination, with which he assumed the office, to apply +the public funds to the purpose to which they were appropriated. He +declared that he would “neither pay the interest of our debts out of the +moneys which are called for to carry on the war, nor pay the expenses of +the war from the funds which are called for to pay the interest of our +debts.” One new feature of Morris's administration was the beginning of +the sale of public lands.</p> + +<p>On the retirement of Mr. Morris, November, 1784, a new board of treasury +was charged with the administration of the finances, and continued in +control until September 30, 1788, when a committee, raised to examine +into the affairs of the department, rendered a pitiful report of +mismanagement for which the board had not the excuse of their +predecessors during the war. They had only to observe the precepts which +Morris had enunciated, and to follow the methods he had prescribed, with +the aid of the assistants he had trained. But the taxes collected had +not been covered into the Treasury by the receivers. Large<span class='pagenum'><a name="Page_174" id="Page_174">[Pg 174]</a></span> sums +advanced for secret service were not accounted for; and the entire +system of responsibility had been disregarded. John Adams attributed all +the distresses at this period to “a downright ignorance of the nature of +coin, credit and circulation;” an ignorance not yet dispelled. More +truly could he have said that our distresses arose from willful neglect +of the principle of accountability in the public service.</p> + +<p>The first Congress under the new Constitution met at New York on March +4, 1789, but it was not until the autumn that the executive +administration of the government was organized by the creation of the +three departments: State, Treasury, and War.</p> + +<p>The bill establishing the Treasury Department passed Congress on +September 2, 1789. Hamilton was appointed secretary by Washington on +September 11. On September 21 the House directed the secretary to +examine into and report a financial plan. On the assembling of Congress, +June 14, 1790, Hamilton communicated to the House his first report, +known as that on public credit. The boldness of Hamilton's plan startled +and divided the country. Funding resolutions were introduced into the +House. The first, relating to the foreign debt, passed unanimously; the +second, providing for the liquidation of the domestic obligations, was +sharply debated, but in the end Hamilton's scheme was adopted. The +resolutions providing for the assumption of the state<span class='pagenum'><a name="Page_175" id="Page_175">[Pg 175]</a></span> debts, which he +embodied in his report, aroused an opposition still more formidable, and +it was not until August 4 that by political machinery this part of his +plan received the assent of Congress. To provide for the interest on the +debt and the expenses of the government, the import and navigation +duties were raised to yield the utmost revenue available; but, in the +temper of Congress, the excise law was not pressed at this session. The +secretary had securely laid the foundations of his policy. Time and +sheer necessity would compel the completion of his work in essential +accord with his original design. The President's message at the opening +of the winter session added greatly to the prestige of Hamilton's policy +by calling attention to the great prosperity of the country and the +remarkable rise in public credit. The excise law, modified to apply to +distilled spirits, passed the House in January. The principle of a +direct tax was admitted. On December 14, 1790, in obedience to an order +of the House requiring the secretary to report further provision for the +public credit, Hamilton communicated his plans for a national bank. Next +in order came the establishment of a national mint. Thus in two sessions +of Congress, and in the space of little more than a year from the time +when he took charge of the Treasury, Hamilton conceived and carried to +successful conclusion an entire scheme of finance.</p> + +<p>One more measure in the comprehensive system of public credit crowned +the solid structure of<span class='pagenum'><a name="Page_176" id="Page_176">[Pg 176]</a></span> which the funding of the debt was the +cornerstone. This was the establishment of the sinking fund for the +redemption of the debt. Hamilton conformed his plan to the maxim, which, +to use his words, “has been supposed capable of giving immortality to +credit, namely, that with the creation of debts should be incorporated +the means of extinguishment, which are twofold. 1st. The establishing, +at the time of contracting a debt, funds for the reimbursement of the +principal, as well as for the payment of interest within a determinate +period. 2d. The making it a part of the contract, that the fund so +established shall be inviolably applied to the object.” The ingenuity +and skill with which this master of financial science managed the +Treasury Department for more than five years need no word of comment. +Nor do they fall within the scope of this outline of the features of his +policy. His reports are the textbook of American political economy. +Whoever would grasp its principles must seek them in this limpid source, +and study the methods he applied to revenue and loans. Well might +Webster say of him in lofty praise, “He smote the rock of national +resources, and abundant streams of revenue gushed forth; he touched the +dead corpse of Public Credit, and it sprung upon its feet.”</p> + +<p>On the resignation of Hamilton, January 31, 1795, Washington invited +Wolcott, who was familiar with the views of Hamilton and on such +intimate terms with him that he could always have<span class='pagenum'><a name="Page_177" id="Page_177">[Pg 177]</a></span> his advice in any +difficult emergency, to take the post. Wolcott had been connected with +the department from its organization, first as auditor, afterwards as +comptroller of the Treasury. He held the Treasury until nearly the end +of Adams's administration. On November 8, 1800, upon the open breach +between Mr. Adams and the Hamilton wing of the Federal party, Wolcott, +whose sympathies were wholly with his old chief, tendered his +resignation, to take effect at the close of the year. On December 31 Mr. +Samuel Dexter was appointed to administer the department. But the days +of the Federal party were now numbered: it fell of its own dissensions, +“wounded in the house of its friends.”</p> + +<p>There is little in the administration of the finances by Wolcott to +attract comment. He managed the details of the department with integrity +and skill. On his retirement a committee of the House on the condition +of the Treasury was appointed. No similar examination had been made +since May 22, 1794. On January 28, 1801, Mr. Otis, chairman of the +committee, submitted the results of the investigation in an unanimous +report that the business of the Treasury Department had been conducted +with regularity, fidelity, and a regard to economy; that the +disbursements of money had always been made pursuant to law, and +generally that the financial concerns of the country had been left by +the late secretary in a state of good order and prosperity. During his +six years<span class='pagenum'><a name="Page_178" id="Page_178">[Pg 178]</a></span> of administration of the finances Wolcott negotiated six +loans, amounting in all to $2,820,000. The emergencies were +extraordinary,—the expenses of the suppression of the Whiskey +Insurrection in 1794, and the sum required to effect a treaty of peace +with Algiers in 1795. To fund these sums Mr. Wolcott had recourse to an +expedient which marked an era in American finance. This was the creation +of <i>new stock</i>, subscribed for at home. No loan had been previously +placed by the government among its own citizens. Between 1795 and 1798, +four and a half, five, and six per cent. stocks were created. In 1798 +the condition of the country was embarrassing. There was a threatening +prospect of war. Foreign loans were precarious and improvident; the +market rate of interest was eight per cent. Under these circumstances an +eight per cent. stock was created, not redeemable until 1809. An Act of +March 3, 1795, provided for vesting in the sinking fund the surplus +revenues of each year.</p> + +<p>In the formation of the first Republican cabinet Mr. Gallatin was +obviously Mr. Jefferson's first choice for the Treasury. The appointment +was nevertheless attended with some difficulties of a political and +party nature. The paramount importance of the department was a legacy of +Hamilton's genius. Its possession was the Federalist stronghold, and the +Senate, which held the confirming power, was still controlled by a +Federalist majority. To them Mr. Gallatin was more obnox<span class='pagenum'><a name="Page_179" id="Page_179">[Pg 179]</a></span>ious than any +other of the Republican leaders. In the few days that he held a seat in +the Senate (1793) he offended Hamilton, and aroused the hostility of the +friends of the secretary by a call for information as to the condition +of the Treasury. As member of Congress in 1796 he questioned Hamilton's +policy, and during Adams's entire administration was a perpetual thorn +in the sides of Hamilton's successors in the department. The day after +his election, February 18, 1801, Mr. Jefferson communicated to Mr. +Gallatin the names of the gentlemen he had already determined upon for +his cabinet, and tendered him the Treasury. The only alternative was +Madison; but he, with all his reputation as a statesman and party +leader, was without skill as a financier, and in the debate on the +Funding Bill in 1790 had shown his ignorance in the impracticability of +his plans. If Jefferson ever entertained the thought of nominating +Madison to the Treasury, political necessity absolutely forbade it. That +necessity Mr. Gallatin, by his persistent assaults on the financial +policy of the Federalists, had himself created, and he alone of the +Republican leaders was competent to carry out the reforms in the +administration of the government, and to contrive the consequent +reduction in revenue and taxation, which were cardinal points of +Republican policy. Public opinion had assigned Gallatin to the post, and +the newspapers announced his nomination before Mr. Jefferson was +elected, and before he had given<span class='pagenum'><a name="Page_180" id="Page_180">[Pg 180]</a></span> any indication of his purpose. To his +wife Mr. Gallatin expressed some doubt whether his abilities were equal +to the office, and whether the Senate would confirm him, and said, +certainly with sincerity, 'that he would not be sorry nor hurt in his +feelings if his nomination should be rejected, for exclusively of the +immense responsibility, labor, etc., attached to the intended office, +another plan which would be much more agreeable to him and to her had +been suggested, not by his political friends, but by his New York +friends.' He was by no means comfortable in his finances, and he had +already formed a plan of studying law and removing to New York. He had +made up his mind to leave the western country, which would necessarily +end his congressional career. His wife was forlorn in his absence, and +suffered so many hardships in her isolated residence that he felt no +reluctance to the change. To one of his wife's family he wrote at this +time:—</p> + +<div class="blockquot"><p>“As a political situation, the place of secretary of the treasury +is doubtless more eligible and congenial to my habits; but it is +more laborious and responsible than any other, and the same +industry which will be necessary to fulfill its duties, applied to +another object, would at the end of two years have left me in the +possession of a profession which I might have exercised either in +Philadelphia or New York. But our plans are all liable to +uncertainty, and I must now cheerfully undertake that which had +never been the object of my ambition or wishes.”<span class='pagenum'><a name="Page_181" id="Page_181">[Pg 181]</a></span></p></div> + +<p>Well might he hesitate as he witnessed the distress which had overtaken +the great party which for twelve years had held the posts of political +honor. Fortunately, perhaps for himself and certainly for his party and +the country, the proposition came at a time when he had definitively +determined upon a change of career. His situation was difficult. The +hostility of the Federal senators, and the great exertions which were +being made to defeat the appointment, led him to the opinion that, if +presented on March 4, it would be rejected. There was the alternative of +delay until after that date, which would involve a postponement of the +confirmation until the meeting of Congress in December, but there was no +certainty that it would then be ratified. Meanwhile he would be +compelled to remove to Washington at some sacrifice and expense. He +therefore at first positively refused “to come in on any terms but a +confirmation by the Senate first given.” He was finally induced to +comply with the general wish of his political friends. The appointment +was withheld by the President that the feeling in the Senate might be +judged from its action on the rest of the nominations submitted. They +were all approved, and Mr. Dexter consented to hold over until his +successor should be appointed. Thus Mr. Gallatin's convenience was +entirely consulted. He remained in Washington a few days to confer with +the President as to the general conduct of the administration, and on +March 14 set out for<span class='pagenum'><a name="Page_182" id="Page_182">[Pg 182]</a></span> Fayette to put his affairs in order and to bring +his wife and family to Washington. On May 14 Jefferson wrote to Macon, +“The arrival of Mr. Gallatin yesterday completed the organization of our +administration.”</p> + +<p>Mr. Gallatin soon realized the magnitude of his task. He did nothing by +halves. To whatever work he had to do, he brought the best of his +faculty. No man ever better deserved the epithet of “thorough.” He +searched till he found the principle of every measure with which he had +concern and understood every detail of its application. This perfect +knowledge of every subject which he investigated was the secret of his +political success. As a committee man, he was incomparable. No one could +be better equipped for the direction of the Treasury Department than he, +but he was not satisfied with direction; he would manage also; and he +went to the work with untiring energy. A quarter of a century later he +said of it, in a letter to his son, “To fill that office in the manner I +did, and as it ought to be filled, is a most laborious task and labor of +the most tedious kind. To fit myself for it, to be able to understand +thoroughly, to embrace and control all its details, took from me, during +the two first years I held it, every hour of the day and many of the +night and had nearly brought on a pulmonary complaint. I filled the +office twelve years and was fairly worn out.”</p> + +<p>Mr. Gallatin first drew public attention to his<span class='pagenum'><a name="Page_183" id="Page_183">[Pg 183]</a></span> knowledge of finance in +the Pennsylvania legislature. An extract from his memorandum of his +three years' service gives the best account of this incident. In it +appear the carefully matured convictions which he inflexibly maintained.</p> + +<div class="blockquot"><p>“The report of the Committee of Ways and Means of the session +1790-1791 (presented by Gurney, chairman) was entirely prepared by +me, known to be so, and laid the foundation of my reputation. I was +quite astonished at the general encomiums bestowed upon it, and was +not at all aware that I had done so well. It was perspicuous and +comprehensive; but I am confident that its true merit, and that +which gained me the general confidence, was its being founded in +strict justice without the slightest regard to party feelings or +popular prejudices. The principles assumed, and which were carried +into effect, were the immediate reimbursement and extinction of the +state paper money, the immediate payment in specie of all the +current expenses or warrants on the Treasury (the postponement and +uncertainty of which had given rise to shameful and corrupt +speculations), and provision for discharging, without defalcation, +every debt and engagement previously recognized by the State. In +conformity with this, the State paid to its creditors the +difference between the nominal amount of the state debt assumed by +the United States and the rate at which it was funded by the act of +Congress.</p> + +<p>“The proceeds of the public lands, together with the arrears, were +the fund which not only discharged all the public debts, but left a +large surplus. The apprehension that this would be squandered by +the Legislature was<span class='pagenum'><a name="Page_184" id="Page_184">[Pg 184]</a></span> the principal inducement for chartering the +Bank of Pennsylvania with a capital of two millions of dollars, of +which the State subscribed one half. This and similar subsequent +investments enabled Pennsylvania to defray out of the dividends all +the expenses of government without any direct tax during the forty +ensuing years, and till the adoption of the system of internal +improvement, which required new resources.”</p></div> + +<p>This report was printed in the Journal of the House, February 8, 1791. +The next year he made a report on the same subject which was printed +February 22, 1792.</p> + +<p>But his equal grasp of larger subjects was shown in his sketch of the +finances of the United States, which he published in November, 1796. It +presents under three sections the revenues, the expenses, and the debts +of the United States, each subdivided into special heads. The arguments +are supported by elaborate tabular statements. No such exhaustive +examination had been made of the state of the American finances. The one +cardinal principle which he laid down was the extinguishment of debt. He +severely criticised Hamilton's methods of funding, and outlined those +which he himself later applied. He charged upon Hamilton direct +violations of law in the application of money, borrowed as principal, to +the payment of interest on that principal. The public funds he regarded +as three in number: 1st, the sinking fund; 2d, the surplus fund; 3d, the +general fund.</p> + +<p>In July, 1800, Mr. Gallatin published a second<span class='pagenum'><a name="Page_185" id="Page_185">[Pg 185]</a></span> pamphlet, “Views of the +Public Debt, Receipts, and Expenditures of the United States,” the +object of the inquiry being to ascertain the result of the fiscal +operations of the government under the Constitution. The entire field of +American finance is examined from its beginning. He severely condemns +the mode of assumption of the state debts in Hamilton's original plan, +and no doubt his strictures are technically correct. The debts assumed +for debtor States were not due by the United States, nor was there any +moral reason for their assumption. But the assumption was sound +financial policy, and all the cost to the nation was amply repaid by the +order which their assumption drew out of chaos, and the vigor given to +the general credit by the strengthening of that of its parts. The course +of the Federalists and Republicans on this question shows that the +former had at heart the welfare of all the States, while the latter +confined their interest to their own body politic.</p> + +<p>Had Mr. Gallatin never penned another line on finance, these two +remarkable papers would place him in the first rank of economists and +statisticians. There are no errors in his figures, no flaws in his +reasoning, no faults in his deductions. In construction and detail, as +parts of a complete financial system of administration, they are beyond +criticism. Opinions may differ as to the ends sought, but not as to the +means to those ends.</p> + +<p>For a long period Mr. Gallatin found no more<span class='pagenum'><a name="Page_186" id="Page_186">[Pg 186]</a></span> time for essays; he was +now to apply his methods. These may be traced in his printed treasury +reports, which are lucid and instructive. He was appointed to the +Treasury on May 14, 1801, as appears by the official record in the State +Department. Before he entered on the duties of the office he submitted +to Mr. Jefferson, March 14, 1801, some rough sketches of the financial +situation, and suggested the general outlines of his policy. He insisted +upon a curtailment in the appropriations for the naval and military +establishments, the only saving adequate to the repeal of all internal +duties; and upon the discharge of the foreign debt within the period of +its obligation. He estimated that the probable receipts and expenditures +for the year 1801 would leave a surplus of more than two millions of +dollars applicable to the redemption of the debt.</p> + +<p>On taking personal charge of the Treasury Department, his first business +was to get rid of the arrears of current business which had accumulated +since the retirement of Wolcott; his next, to perfect the internal +revenue system, so far as it could be remedied without new legislation. +The entire summer of 1801 was passed in “arranging, or rather procuring +correct statements amongst the Treasury documents,” a task of such +difficulty that he was unwilling, on November 15, to arrive at an +estimate of the revenue within half a million, or to commit himself to +any opinion as to the feasibility of abolishing the internal revenues. +In<span class='pagenum'><a name="Page_187" id="Page_187">[Pg 187]</a></span> his “notes” submitted to Jefferson upon the draft of his first +message, there are several passages of interest which show Mr. +Gallatin's logical habit of searching out economic causes. Under the +head of finances, he remarks, “The revenue has increased more than in +the same ratio with population: 1st, because our wealth has increased in +a greater ratio than population; 2d, because the seaports and towns, +which consume imported articles much more than the country, have +increased in a greater proportion.” The final paragraph in these “notes” +is a synopsis of his entire scheme of administration.</p> + +<div class="blockquot"><p>“There is but one subject not mentioned in the message which I feel +extremely anxious to see recommended. It is generally that Congress +should adopt such measures as will effectually guard against +misapplications of public moneys, by making specific appropriations +whenever practicable; by providing against the application of +moneys drawn from the Treasury under an appropriation to any other +object or to any greater amount than that for which they have been +drawn; by limiting discretionary power in the application of that +money; whether by heads of department or by any other agents; and +by rendering every person who receives public moneys from the +Treasury as immediately, promptly, and effectually accountable to +the accounting officer (the comptroller) as practicable. The great +characteristic, the flagrant vice, of the late administration has +been total disregard of laws, and application of public moneys by +the Department to objects for which they were not appropriate.”<span class='pagenum'><a name="Page_188" id="Page_188">[Pg 188]</a></span></p></div> + +<p>Outlines for a system of specific appropriations were inclosed.</p> + +<p>That the mission of Jefferson's administration was the reduction of the +debt, Gallatin set forth in his next letter of November 16, 1801. “I am +firmly of opinion that if the present administration and Congress do not +take the most effective measures for that object, the debt will be +entailed on us and the ensuing generations, together with all the +systems which support it, and which it supports.” On the other hand he +says, “If this administration shall not reduce taxes, they never will be +permanently reduced.” To reduce both the debt and the taxes was as much +a political as a financial problem. To solve it required the reduction +to a minimum of the departments of War and Marine. But Mr. Jefferson was +not a practical statesman. His individuality was too strong for much +surrender of opinion. He stated the case very mildly when he wrote in +his retirement that he sometimes differed in opinion from some of his +friends, from those whose views were as “pure and as sound as his own.” +It was not his habit to consult his entire cabinet except on general +measures. The heads of each department set their views before him +separately. Under this system Mr. Gallatin was never able to realize +that harmonious interdependence of departments and subordination of ways +to means which were his ideal of cabinet administration.</p> + +<p>The successful application of Mr. Gallatin's<span class='pagenum'><a name="Page_189" id="Page_189">[Pg 189]</a></span> plan would have +subordinated all the executive departments to the Treasury. The theory +was perfect, but it took no account of the greed of office, the +jealousies of friends, the opposition of enemies, and the unknown factor +of foreign relations. A speck on the horizon would cloud the peaceful +prospect, a hostile threat derange the intricate machinery by which the +delicate financial balance was maintained. Mr. Gallatin was fast +realizing the magnitude of his undertaking, in which he was greatly +embarrassed by the difficulty of finding faithful examining clerks, on +whose correctness and fidelity a just settlement of all accounts +depends. The number of independent offices attached to the Treasury made +the task still more arduous. He wrote to Jefferson at this time, “It +will take me twelve months before I can thoroughly understand every +detail of all these several offices. Current business and the more +general and important duties of the office do not permit me to learn the +lesser details, but incidentally and by degrees. Until I know them all I +dare not touch the machine.” One of the acquirements which he considered +indispensable for a secretary of the treasury was a “thorough knowledge +of book-keeping.” The recollection of his persistent demands for +information from Hamilton and Wolcott during his congressional career +would have stung the conscience of an ordinary man. But Gallatin was not +an ordinary man. He asked nothing of others which he himself was not +willing to perform. His<span class='pagenum'><a name="Page_190" id="Page_190">[Pg 190]</a></span> ideal was high, but he reached its summit. It +seems almost as if, in his persistent demand that money accountability +should be imposed by law upon the Treasury Department, he sought to set +the measure of his own duty, while in the requirement that it should be +extended to the other departments, he pledged himself to the perfect +accomplishment of that duty in his own.</p> + +<p>In his first report to Congress,<a name="FNanchor_11_11" id="FNanchor_11_11"></a><a href="#Footnote_11_11" class="fnanchor">[11]</a> made December 18, 1801, Mr. +Gallatin submitted his financial estimate for the year 1802.</p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget Figures"> +<tr><td align='left'><span class="smcap">Revenue</span>.</td><td align='right'></td><td align='right'><span class="smcap">Expenditures</span>.</td></tr> +<tr><td align='left'>Imposts</td><td align='right'>$9,500,000</td><td align='left'>Int. on debts.</td><td align='right'>$7,100,000</td></tr> +<tr><td align='left'>Lands}</td><td align='right'>450,000</td><td align='left'>Civil List</td><td align='right'>980,000</td></tr> +<tr><td align='left'>Postages}</td><td align='left'></td><td align='left'>Army</td><td align='right'>1,420,000</td></tr> +<tr><td align='left'>Internal Rev.</td><td align='right'>650,000</td><td align='left'>Navy</td><td align='right'>1,100,000</td></tr> +<tr><td align='left'></td><td align='right'>=========</td><td align='right'></td><td align='right'>=========</td></tr> +<tr><td align='left'></td><td align='right'>$10,600,000</td><td align='right'></td><td align='right'>$10,600,000</td></tr> +</table></div> + +<p>Mr. Wolcott, in his last report to the Commissioners of the Sinking +Fund, stated the amount in the Treasury to its credit at $500,718. Mr. +Gallatin denied that there was any such surplus, but said that instead +of a credit balance the treasury books showed a deficiency of $930,128 +on the aggregate revenue from the establishment of the government to the +close of the year 1799. Elliott, in his “Funding System,” said +concerning this once vexed controversy, that it was difficult to +reconcile such a diversity of opinion on so intricate a subject; and +concerning the official statements<span class='pagenum'><a name="Page_191" id="Page_191">[Pg 191]</a></span> of Hamilton and Wolcott, that it was +hardly to be credited that they were so superficial or imperfect. Mr. +Gallatin himself furnishes the apology that the difference might arise +from “entries made or omitted on erroneous principles.” To the Federal +financiers the palliation was as offensive as the charge, and rankled +long and sore. If it were not possible, when Elliott made an +examination, to arrive at the precise facts, it is certainly now a +secret as secure from discovery as the lost sibylline leaves.</p> + +<p>Mr. Gallatin stated the debt of the United States—</p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget Figures"> +<tr><td align='left'>On January 1, 1801, at</td><td align='right'>$80,161,207.60</td></tr> +<tr><td align='left'>On January 1, 1802, at</td><td align='right'>77,881,890.29</td></tr> +<tr><td align='left'></td><td align='right'>===========</td></tr> +<tr><td align='left'>Reduction</td><td align='right'>$2,279,317.31</td></tr> +</table></div> + +<p>This difference was the amount of principal paid during the year 1801, +the result of the management of his predecessors. On December 18, 1801, +Mr. Gallatin entered upon an examination of the time in which the total +debt might be discharged, and showed that, by the annual application of +$7,300,000 to the principal and interest the debt would in eight years, +<i>i. e.</i> on January 1, 1810, be reduced (by the payment of $32,289,000 of +the principal) to $45,592,739, and that the same annual sum of +$7,300,000 would discharge the whole debt by the year 1817. The revenues +of the Union he found sufficient to defray all the current expenses. In +his report to Congress at the begin<span class='pagenum'><a name="Page_192" id="Page_192">[Pg 192]</a></span>ning of the session he designated + +this sum of $7,300,000 to be set aside from the revenues, and Congress +gave the requisite authority. An extract from a tabular statement +submitted to the House of Representatives, April 16, 1810, will show how +nearly Mr. Gallatin approached the result at which he aimed, and the +nature of the embarrassment he encountered on the path.</p> + +<div class="centered"> +<table border="0" cellpadding="2" cellspacing="0" width="90%" summary="Budget figures" style="border: 1pt black solid; font-size: 90%;"> + <tr> + <td class="tdc" style="width: 5%; border: 1pt black solid;">Years.</td> + <td class="tdc" style="width: 17%; border: 1pt black solid;">Amount of Public Debt January 1st.</td> + <td class="tdc" style="width: 17%; border: 1pt black solid;">Payments on Principal.</td> + <td class="tdc" style="width: 17%; border: 1pt black solid;">Debt Contracted.</td> + <td class="tdc" style="width: 17%; border: 1pt black solid;">Annual Increase.</td> + <td class="tdc" style="width: 17%; border: 1pt black solid;">Annual Decrease.</td> + </tr> + <tr> + <td class="tdl stylet">1802</td> + <td class="tdr stylet">$80,712,632.25</td> + <td class="tdr stylet">$3,657,945.95</td> + <td class="tdc stylet">—</td> + <td class="tdc stylet">—</td> + <td class="tdr stylet">$3,657,948.95</td> + </tr> + <tr> + <td class="tdl styleo">1803</td> + <td class="tdr styleo">77,054,686.30</td> + <td class="tdr styleo">5,627,565.42</td> + <td class="tdr styleo">$15,000,000*</td> + <td class="tdr styleo">$9,372,434.58</td> + <td class="tdc styleo">—</td> + </tr> + <tr> + <td class="tdl styleo">1804</td> + <td class="tdr styleo">86,427,120.88</td> + <td class="tdr styleo">4,114,970.38</td> + <td class="tdc styleo">—</td> + <td class="tdc styleo">—</td> + <td class="tdr styleo">4,114,970.38</td> + </tr> + <tr> + <td class="tdl styleo">1805</td> + <td class="tdr styleo">82,312,150.50</td> + <td class="tdr styleo">6,588,879.84</td> + <td class="tdc styleo">—</td> + <td class="tdc styleo">—</td> + <td class="tdr styleo">6,588,879.84</td> + </tr> + <tr> + <td class="tdl styleo">1806</td> + <td class="tdr styleo">75,723,270.66</td> + <td class="tdr styleo">6,504,872.02</td> + <td class="tdc styleo">—</td> + <td class="tdc styleo">—</td> + <td class="tdr styleo">6,504,872.02</td> + </tr> + <tr> + <td class="tdl styleo">1807</td> + <td class="tdr styleo">69,218,398.64</td> + <td class="tdr styleo">4,022,080.67</td> + <td class="tdc styleo">—</td> + <td class="tdc styleo">—</td> + <td class="tdr styleo">4,022,080.67</td> + </tr> + <tr> + <td class="tdl styleo">1808</td> + <td class="tdr styleo">65,196,317.97</td> + <td class="tdr styleo">8,173,125.88</td> + <td class="tdc styleo">—</td> + <td class="tdc styleo">—</td> + <td class="tdr styleo">8,173,125.88</td> + </tr> + <tr> + <td class="tdl styleo">1809</td> + <td class="tdr styleo">57,023,192.09</td> + <td class="tdr styleo">3,850,889.77</td> + <td class="tdc styleo">—</td> + <td class="tdc styleo">—</td> + <td class="tdr styleo">3,850,889.77</td> + </tr> + <tr> + <td class="tdl styleb">1810</td> + <td class="tdr styleb">53,172,302.32</td> + <td class="tdc styleb">—</td> + <td class="tdc styleb">—</td> + <td class="tdc styleb">—</td> + <td class="tdc styleb">—</td> + </tr> +</table> +</div> + +<div class="centered"> +<table border="0" cellpadding="2" cellspacing="0" width="60%" summary="Debt Figures"> + <tr> + <td class="tdc" colspan="5" style="padding-bottom: .5em;">*Louisiana Purchase</td> + </tr> + <tr> + <td class="tdl" style="width: 22%;">1802</td> + <td class="tdr" style="width: 21%;">$80,712,632.25</td> + <td style="width: 5%;"> </td> + <td class="tdl" style="width: 21%;">Decrease</td> + <td class="tdr" style="width: 21%;">$36,912,764.51</td> + </tr> + <tr> + <td class="tdl">1810</td> + <td class="tdr" style="border-bottom: 1pt black dashed;">53,172,302.32</td> + <td> </td> + <td class="tdl">Increase</td> + <td class="tdr" style="border-bottom: 1pt black dashed;">9,372,434.58</td> + </tr> + <tr> + <td class="tdl"> </td> + <td class="tdr" style="border-top: 1pt black dashed;">$27,540,329.93</td> + <td> </td> + <td class="tdl">Decrease in 8 yrs.</td> + <td class="tdr" style="border-top: 1pt black dashed;">$27,540,329.93</td> + </tr> +</table></div> + +<p>From this it appears that, notwithstanding the extraordinary increase of +the principal by the amount of the Louisiana purchase, Mr. Gallatin +contrived a reduction of $27,540,329. But if to this be added the true +reduction for the year 1803, namely, the difference between the +Louisiana debt, $15,000,000, and the increase for that year, by reason +of that purchase, $9,372,434, say $6,627,565, the reduction is found to +be, and but for that disturbing cause would have reached, $34,167,895,<span class='pagenum'><a name="Page_193" id="Page_193">[Pg 193]</a></span> +a sum exceeding by $1,878,895 that estimated by Mr. Gallatin in his +report of 1801 as the amount of eight years' reduction, namely, +$32,289,000.</p> + +<p>The ways and means of this remarkable example of financial management +appear in the following extracts from Elliott's synoptical statement +(table given on page <a href="#Page_194">194</a>).</p> + +<p>The purchase of Louisiana was the extraordinary financial measure of +Jefferson's first presidential term. Though the new obligation for the +consideration money, fifteen millions of dollars, was a large sum in +proportion to the total existing debt of the United States, it did not +in the least derange Gallatin's plan of funding and reduction, but was +brought without friction within his general scheme. With the terms of +the contract Gallatin had nothing to do. They were arranged by +Livingston and Monroe, the American commissioners; the intervention of +the houses of Hope and the Barings being a part of the understanding +between the commissioners and the French government. These bankers +engaged to make the money payments and take six per cent. stock of the +United States at seventy-eight and one half cents on the dollar. With +this price Mr. Gallatin does not seem to have been satisfied, though of +course he interposed no objection to the terms; but to Jefferson he +wrote, August 31, 1803, that the low price at which that stock had been +sold, was "not ascribable to the state of public credit nor to any act +of your administration, and particularly of the<span class='pagenum'><a name="Page_194" id="Page_194">[Pg 194]</a></span> Treasury Department;" +and he adds in a postscript, “at that period our threes were in England +worth one per cent. more at market than the English.”</p> + +<h4>RECEIPTS.</h4> + +<div class="centered"> +<table border="0" cellpadding="2" cellspacing="0" width="105%" summary="Budget figures" style="border: 1pt black solid; font-size: 70%;"> + <tr style="font-size: 120%;"> + <td class="tdc" style="width: 12%; border: 1pt black solid;">Four years ending<br /> December 31.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Customs.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Internal Revenue.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Direct Taxes.</td> + <td class="tdc" style="width: 9%; border: 1pt black solid;">Postage.</td> + <td class="tdc" style="width: 9%; border: 1pt black solid;">Public Lands.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Loans and Treasury Notes.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Dividends and sales of Bank Stock.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Miscellaneous.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Total.</td> + </tr> + <tr> + <td class="tdl stylet">Adams, 1800</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$30,347,093.62</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$2,808,382.37</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$734,223.97</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$223,000.00</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$95,947.46</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$7,055,791.25</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$607,220.00</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$168,971.76</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$42,040,630.45</td> + </tr> + <tr> + <td class="tdl styleo">Jefferson, 1804</td> + <td class="tdr stylet">44,766,997.61</td> + <td class="tdr stylet">1,936,053.30</td> + <td class="tdr stylet">862,986.46</td> + <td class="tdr stylet">157,427.26</td> + <td class="tdr stylet">1,009,556.56</td> + <td class="tdr stylet">25,255.00</td> + <td class="tdr stylet">1,416,360.00</td> + <td class="tdr stylet">672,148.72</td> + <td class="tdr stylet">50,846,784.91</td> + </tr> + <tr> + <td class="tdl styleo">Jefferson, 1808</td> + <td class="tdr styleb">59,813,257.40</td> + <td class="tdr styleb">63,110.73</td> + <td class="tdr styleb">131,539.54</td> + <td class="tdr styleb">60,074.90</td> + <td class="tdr styleb">2,419,541.86</td> + <td class="tdr styleb">179,534.81</td> + <td class="tdc styleb">—</td> + <td class="tdr styleb">85,782.03</td> + <td class="tdr styleb">62,758,841.27</td> + </tr> + <tr> + <td class="tdl styleb"> </td> + <td class="tdr" style="border: 1pt black solid;">104,580,255.01</td> + <td class="tdr" style="border: 1pt black solid;">1,999,146.03</td> + <td class="tdr" style="border: 1pt black solid;">994,526.00</td> + <td class="tdr" style="border: 1pt black solid;">217,502.10</td> + <td class="tdr" style="border: 1pt black solid;">3,429,098.42</td> + <td class="tdr" style="border: 1pt black solid;">205,089.81</td> + <td class="tdr" style="border: 1pt black solid;">1,416,360.00</td> + <td class="tdr" style="border: 1pt black solid;">757,930.75</td> + <td class="tdr" style="border: 1pt black solid;">113,605,626.18</td> + </tr> +</table> +</div> + +<h4>EXPENDITURES.</h4> + +<div class="centered"> +<table border="0" cellpadding="2" cellspacing="0" width="105%" summary="Budget figures" style="border: 1pt black solid; font-size: 70%;"> + <tr style="font-size: 120%;"> + <td class="tdc" style="width: 12%; border: 1pt black solid;">Four years ending <br />December 31.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Civil List.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Foreign Intercourse including Awards.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Miscellaneous.</td> + <td class="tdc" style="width: 9%; border: 1pt black solid;">Military Forts, etc.</td> + <td class="tdc" style="width: 9%; border: 1pt black solid;">Pensions.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Indian Department.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Naval Establishment.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Public Debt.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Total.</td> + </tr> + <tr> + <td class="tdl stylet">Adams, 1800</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$2,329,433.08</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$1,793,879.57</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$621,633.37</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$8,076,750.71</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$356,677.06</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$99,299.88</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$8,070,777.52</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$18,957,962.69</td> + <td class="tdr" style="border: 1pt black solid; padding-top: .25em;">$40,306,413.88</td> + </tr> + <tr> + <td class="tdl styleo">Jefferson, 1804</td> + <td class="tdr stylet">2,297,648.17</td> + <td class="tdr stylet">3,144,093.00</td> + <td class="tdr stylet">1,169,601.87</td> + <td class="tdr stylet">4,549,572.11</td> + <td class="tdr stylet">301,968.66</td> + <td class="tdr stylet">279,500.00</td> + <td class="tdr stylet">5,432,049.15</td> + <td class="tdr stylet">32,258,658.68</td> + <td class="tdr stylet">49,433,091.64</td> + </tr> + <tr> + <td class="tdl styleo">Jefferson, 1808</td> + <td class="tdr styleb">2,616,772.77</td> + <td class="tdr styleb">5,441,669.24</td> + <td class="tdr styleb">1,721,876.87</td> + <td class="tdr styleb">6,126,656.97</td> + <td class="tdr styleb">316,806.16</td> + <td class="tdr styleb">849,700.00</td> + <td class="tdr styleb">6,853,673.79</td> + <td class="tdr styleb">32,927,739.85</td> + <td class="tdr styleb">56,854,985.65</td> + </tr> + <tr> + <td class="tdl styleb"> </td> + <td class="tdr" style="border: 1pt black solid;">4,914,420.94</td> + <td class="tdr" style="border: 1pt black solid;">8,585,762.24</td> + <td class="tdr" style="border: 1pt black solid;">2,891,478.74</td> + <td class="tdr" style="border: 1pt black solid;">10,676,229.08</td> + <td class="tdr" style="border: 1pt black solid;">618,774.82</td> + <td class="tdr" style="border: 1pt black solid;">1,129,200.00</td> + <td class="tdr" style="border: 1pt black solid;">12,285,722.94</td> + <td class="tdr" style="border: 1pt black solid;">65,186,398.53</td> + <td class="tdr" style="border: 1pt black solid;">106,288,077.29</td> + </tr> +</table> + +<table border="0" cellpadding="2" cellspacing="0" width="80%" summary=""> + <tr> + <td class="tdl" style="width: 30%;">Adams—Receipts</td> + <td class="tdr" style="width: 15%;">$42,040,630.45</td> + <td style="width: 10%;"> </td> + <td class="tdl" style="width: 30%;">Jefferson—Receipts</td> + <td class="tdr" style="width: 15%;">$113,605,626.18</td> + </tr> + <tr> + <td class="tdl">Adams—Expenditures</td> + <td class="tdr" style="border-bottom: 1pt black dashed;">40,306,413.88</td> + <td> </td> + <td class="tdl">Jefferson—Expenditures</td> + <td class="tdr" style="border-bottom: 1pt black dashed;">106,288,077.29</td> + </tr> + <tr> + <td class="tdl">Under Wolcott, Secretary</td> + <td class="tdr" style="border-top: 1pt black dashed;">1,734,216.57</td> + <td> </td> + <td class="tdl">Under Gallatin, Secretary</td> + <td class="tdr" style="border-top: 1pt black dashed;">7,317,584.89<a name="FNanchor_12_12" id="FNanchor_12_12"></a><a href="#Footnote_12_12" class="fnanchor">[12]</a></td> + </tr> +</table> +</div> + +<div class="trans-note">Transcriber's Note: Some of the numbers in the above tables do not add up, but reflect the actual numbers given in the original document.</div><span class='pagenum'><a name="Page_195" id="Page_195">[Pg 195]</a></span> + +<p>The arrangements being completed, Jefferson called Congress together in +October, 1803, for a ratification of the treaty; the commissioners, by +virtue of the authority granted them, had already guaranteed the advance +by the Barings of ten million livres ($2,000,000). On October 25, 1803, +Gallatin made a report to Congress on the state of the finances. It +showed a reduction of the public debt in the two and one half years of +his management, April 1, 1801, to September 30, 1803, of $12,702,404. +The only question to be considered was whether any additional revenues +were wanted to provide for the <i>new debt</i> which would result from the +purchase of Louisiana.</p> + +<p>The sum called for by treaty, fifteen millions, consisted of two items: +1st, $11,250,000 payable to the government of France in a stock bearing +an interest of six per cent. payable in Europe, and the principal to be +discharged at the Treasury of the United States; 2d, a sum which could +not exceed, but might fall short of, $3,750,000, payable in specie at +the Treasury of the United States to American citizens having claims of +a certain description upon the government of France.</p> + +<p>It is interesting here to note Mr. Gallatin's distinction between the +place of payment of interest and of principal as a new departure in +American<span class='pagenum'><a name="Page_196" id="Page_196">[Pg 196]</a></span> finance. The principal and interest of foreign loans had up to +that period been paid abroad. But a United States stock was an +obligation of a different character and properly payable at home. In the +large negotiations which Secretary Chase had in 1862 with the Treasury +Note Committee of the Associated Banks,<a name="FNanchor_13_13" id="FNanchor_13_13"></a><a href="#Footnote_13_13" class="fnanchor">[13]</a> this policy was matter of +grave debate. The determined American pride of Mr. Chase prevailed, and +both the principal <i>and interest</i> of the loans created were made payable +at the Treasury of the United States. These may be small matters in +their financial result, but are grave points in national policy.</p> + +<p>The only financial legislation necessary to carry out the Louisiana +purchase was a provision that $700,000 of the duties on merchandise and +tonnage, a sum sufficient to pay the interest on the new debt, be added +to the annual permanent appropriation for the sinking fund, making a sum +of $8,000,000 in all.</p> + +<p>The new debt would, Gallatin said, neither impede nor retard the payment +of the principal of the old debt; and the fund would be sufficient, +besides paying the interest on both, to discharge the principal of the +old debt before the year 1818, and of the new, within one year and a +half after<span class='pagenum'><a name="Page_197" id="Page_197">[Pg 197]</a></span> that year. In this expectation he relied solely on the +maintenance of the revenue at the amount of the year 1802, and in no way +depended on its probable increase as a result of neutrality in the +European war; nor on any augmentation by reason of increase of +population or wealth, nor the effect which the opening of the +Mississippi to free navigation might be expected to have on the sales of +public lands and the general resources of the country.</p> + +<p>In his report of December 9, 1805, Mr. Gallatin reviewed the results of +his first four years of service, April 1, 1801, to March 31, 1805.</p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget figures"> +<tr><td align='left'></td><td align='right'><span class="smcap">Receipts</span></td></tr> +<tr><td align='left'>Duties on tonnage and importation of</td></tr> +<tr><td align='left'> foreign merchandise</td><td align='right'>$45,174,837.22</td></tr> +<tr><td align='left'>From all other sources</td><td align='right'>5,492,629.82</td></tr> +<tr><td align='left'></td><td align='right'>===========</td></tr> +<tr><td align='left'></td><td align='right'>$50,667,467.04</td></tr> +<tr><td align='left'></td><td align='right'>===========</td></tr> +<tr><td align='left'></td><td align='right'><span class="smcap">Expenditures</span>.</td></tr> +<tr><td align='left'>Civil list and miscellaneous</td><td align='right'>$3,786,094.79</td></tr> +<tr><td align='left'>Intercourse with foreign nations</td><td align='right'>1,071,437.84</td></tr> +<tr><td align='left'>Military establishment and Indian department</td><td align='right'>4,405,192.26</td></tr> +<tr><td align='left'>Naval establishment</td><td align='right'>4,842,635.15</td></tr> +<tr><td align='left'>Interest on foreign debt</td><td align='right'>16,278,700.95</td></tr> +<tr><td align='left'>Reimbursement of debt from surplus</td></tr> +<tr><td align='left'> revenue</td><td align='right'>19,281,446.57</td></tr> +<tr><td align='left'></td><td align='right'>===========</td></tr> +<tr><td align='left'></td><td align='right'>$49,665,507.56</td></tr> +</table></div> + +<p>The Louisiana purchase and the admirable manner of its financial +arrangement were important<span class='pagenum'><a name="Page_198" id="Page_198">[Pg 198]</a></span> factors in Jefferson's reëlection. Mr. +Gallatin was now sure of four years, at least, for the prosecution of +his plan of redemption of the public debt. Estimating that with the +increase of population at the rate of thirty-five per cent. in ten +years, and the corresponding growth of the revenue, he could count upon +a net annual surplus of $5,500,000, he now proposed to convert the +several outstanding obligations into a six per cent. stock amounting, +January 1, 1809, to less than <i>forty millions of dollars</i>, which the +continued annual appropriation of $8,000,000 would, besides paying the +interest on the Louisiana debt, reimburse within a period of less than +seven years, or before the end of the year 1815. After that year no +other incumbrance would remain on the revenue than the interest and +reimbursement of the Louisiana stock, the last payment of which in the +year 1821 would complete the final extinguishment of the public debt. +The conversion act was passed February 1, 1807, and books were opened on +July 1 following. On February 27, 1807, Mr. Gallatin made a special +report on the state of the debt from 1801 to 1807, showing a diminution, +notwithstanding the Louisiana purchase, of $14,260,000.</p> + +<p>In the summer of 1807 war with England seemed inevitable. Gallatin had +the satisfaction to report a full treasury,—the amount of specie +October 7, 1807, reaching over eight and one half millions,—and an +annual unappropriated surplus, which could be confidently relied upon, +of at least<span class='pagenum'><a name="Page_199" id="Page_199">[Pg 199]</a></span> three millions of dollars. On this subject his remarks in +the light of subsequent history are of extreme interest. While +refraining from any recommendations as to the application of this +surplus, either to “measures of security and defense,” or to “internal +improvements which, while increasing and diffusing the national wealth, +will strengthen the bonds of union,” as “subjects which do not fall +within the province of the Treasury Department,” he proceeds to consider +the advantage of an accumulation in the Treasury. In this report he +rises with easy flight far above the purely financial atmosphere into +the higher plane of political economy.</p> + +<div class="blockquot"><p>“A previous accumulation of treasure in time of peace might in a +great degree defray the extraordinary expenses of war and diminish +the necessity of either loans or additional taxes. It would provide +during periods of prosperity for those adverse events to which +every nation is exposed, instead of increasing the burthens of the +people at a time when they are least able to bear them, or of +impairing, by anticipations, the resources of ensuing +generations....</p> + +<p>“That the revenue of the United States will in subsequent years be +considerably impaired by a war neither can nor ought to be +concealed. It is, on the contrary, necessary, in order to be +prepared for the crisis, to take an early view of the subject, and +to examine the resources which should be selected for supplying the +deficiency and defraying the extraordinary expenses....</p> + +<p>“Whether taxes should be raised to a greater amount or loans be +altogether relied on for defraying the expenses of the war, is the +next subject of consideration.<span class='pagenum'><a name="Page_200" id="Page_200">[Pg 200]</a></span></p> + +<p>“Taxes are paid by the great mass of the citizens, and immediately +affect almost every individual of the community. Loans are supplied +by capital previously accumulated by a few individuals. In a +country where the resources of individuals are not generally and +materially affected by the war, it is practicable and wise to raise +by taxes the greater part at least of the annual supplies. The +credit of the nation may also from various circumstances be at +times so far impaired as to have no resource but taxation. In both +respects the situation of the United States is totally +dissimilar....</p> + +<p>“An addition to the debt is doubtless an evil, but experience +having now shown with what rapid progress the revenue of the Union +increases in time of peace, with what facility the debt, formerly +contracted, has in a few years been reduced, a hope may confidently +be entertained that all the evils of the war will be temporary and +easily repaired, and that the return of peace will, without any +effort, afford ample resources for reimbursing whatever may have +been borrowed during the war.”</p></div> + +<p>He then enumerates the several branches of revenue which might be +selected to provide for the interest of war loans and to cover +deficiencies. First, a considerable increase of the duties on +importations; and here he says:—</p> + +<div class="blockquot"><p>“Without resorting to the example of other nations, experience has +proven that this source of revenue is in the United States the most +productive, the easiest to collect, and the least burthensome to +the great mass of the people. 2d. Indirect taxes, however +ineligible, will doubtless be cheerfully paid as <i>war taxes</i>, if +necessary. 3d. Direct taxes are liable to a particular objection +aris<span class='pagenum'><a name="Page_201" id="Page_201">[Pg 201]</a></span>ing from unavoidable inequality produced by the general rule +of the Constitution. Whatever differences may exist between the +relative wealth and consequent ability of paying of the several +States, still the tax must necessarily be raised in proportion to +their relative population.”</p></div> + +<p>The Orders in Council of November 11, 1807, avowedly adopted to compel +all nations to give up their maritime trade or accept it through Great +Britain, reached Washington on December 18, 1807, and were immediately +replied to by the United States by an embargo act on December 22. The +history of the political effect of this measure is beyond the limits of +this economic study, and will be touched upon in a later chapter, but +the result of its application upon the Treasury falls within this +analysis of the methods of Mr. Gallatin's administration.</p> + +<p>On December 18 Gallatin wrote Jefferson that “in every point of view, +privations, sufferings, revenue, effect on the enemy, politics at home, +etc.,” he preferred “war to a permanent embargo;” nevertheless he was +called upon to draft the bill. The correctness of Mr. Gallatin's +prevision was soon apparent. In his report of December 10, 1808, he +reviewed the general effect of the measure. "The embargo has brought +into and kept in the United States almost all the floating property of +the nation. And whilst the depreciated value of domestic product +increases the difficulty of raising a considerable revenue by internal +taxes,<span class='pagenum'><a name="Page_202" id="Page_202">[Pg 202]</a></span> at no former time has there been so much specie, so much +redundant unemployed capital in the country." Again stating his opinion +that loans should be principally relied on in case of war, he closed +with the following words: “The high price of public stocks (and indeed +of all species of stocks), the reduction of the public debt, the +unimpaired credit of the general government, and the large amount of +existing bank stock in the United States [estimated by him at forty +millions of dollars], leave no doubt of the practicability of obtaining +the necessary loans on reasonable terms.”</p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget figures"> +<tr><td align='left'>The receipts into the Treasury during the</td></tr> +<tr><td align='left'> year ending September, 1808, the last of</td></tr> +<tr><td align='left'> Jefferson's administration, were</td><td align='right'> $17,952,419.90</td></tr> +<tr><td align='left'>The disbursements during the same period</td></tr> +<tr><td align='left'> were</td><td align='right'> 12,635,275.46</td></tr> +<tr><td align='left'></td><td align='right'>===========</td></tr> +<tr><td align='left'>Excess of receipts</td><td align='right'> $5,317,144.44</td></tr> +<tr><td align='left'>And the specie in Treasury, October 1,</td></tr> +<tr><td align='left'> 1808</td><td align='right'> $13,846,717.82</td></tr> +</table></div> + +<p>From January 1, 1791, to January 1, 1808, the debt had fallen from +$75,169,974 to $57,023,192; during the first ten years it had increased +nearly seven millions of dollars, in the last eight it had been +diminished more than twenty millions and Louisiana had been purchased. +Thus closed the second term of Gallatin's service. Happen what might, +the credit of the country could not be in a better situation to meet the +exigencies of a war.<span class='pagenum'><a name="Page_203" id="Page_203">[Pg 203]</a></span> A letter from Mr. Jefferson to Mr. Gallatin after +the close of this administration, and Gallatin's reply, show the entire +accord between them upon the one cardinal point of financial policy. Mr. +Jefferson, October 11, 1809, wrote from Monticello, “I consider the +fortunes of our republic as depending in an eminent degree on the +extinction of the public debt before we engage in any war; because, that +done, we shall have revenue enough to improve our country in peace and +defend it in war, without incurring either new taxes or new loans.” And +urging Gallatin to retain his post, he closed with the striking words, +“I hope, then, you will abandon entirely the idea you expressed to me, +and that you will consider the eight years to come as essential to your +political career. I should certainly consider any earlier day of your +retirement as the most inauspicious day our new government has ever +seen.” To which Gallatin replied from Washington, on November 10:—</p> + +<div class="blockquot"><p>“The reduction of the public debt was certainly the principal +object in bringing me into office, and our success in that respect +has been due both to the joint and continued efforts of the several +branches of government and to the prosperous situation of the +country. I am sensible that the work cannot progress under adverse +circumstances. If the United States shall be forced into a state of +actual war, all the resources of the country must be called forth +to make it efficient and new loans will undoubtedly be wanted. But +whilst peace is preserved, the<span class='pagenum'><a name="Page_204" id="Page_204">[Pg 204]</a></span> revenue will, at all events, be +sufficient to pay the interest and to defray necessary expenses. I +do not ask that in the present situation of our foreign relations +the debt be reduced, but only that it shall not be increased so +long as we are not at war.”</p></div> + +<p>In his eight years of service under Jefferson, Gallatin had not found +the Treasury Department a bed of roses. Under Madison there was an undue +proportion of thorns.</p> + +<p>It has been shown that the entire reliance of Gallatin for the expenses +of government was on customs, tonnage dues, and land sales. The effect +of the Embargo Act was soon felt in the falling off of importations, and +consequently in the revenue from this source. Mr. Gallatin felt the +strain in the spring of 1809; and on March 18, soon after Mr. Madison's +inauguration, he gave notice to the commissioners of the sinking fund of +a probable deficiency. In his annual report to Congress, December, 1809, +he announced the expenses of government, exclusive of the payments on +account of the principal of the debt, to have exceeded the actual +receipts into the Treasury by a sum of near $1,300,000. For this +deficiency, and the sum required for the sinking fund, Gallatin was +authorized in May to borrow from the Bank of the United States +$3,750,000 at six per cent., reimbursable on December 31, 1811. Of this +sum only $2,750,000 was taken, the expenses having proved less than Mr. +Gallatin had anticipated.<span class='pagenum'><a name="Page_205" id="Page_205">[Pg 205]</a></span></p> + +<p>Madison called Congress together on November 1, 1811. The political +tension was strong, and he was anxious to throw the responsibility of +peace or war upon Congress. On November 22, 1811, Mr. Gallatin made his +report on the finances and the public debt. It was, as usual, explicit +and in no manner despondent. The actual receipts arising from revenue +alone exceeded the current expenses, including the interest paid on the +debt, by a sum of more than five and one half millions of dollars. The +public debt on January 1, 1812, was $45,154,463. Since Gallatin took +charge of the department, the United States had in ten years and nine +months paid in full the purchase money of Louisiana, and increased its +revenue nearly two millions of dollars. For eight years eight millions +of dollars had been annually paid on account of the principal and +interest of the debt. And as though intending to leave as the legacy of +his service a lesson of financial policy, he said:—</p> + +<div class="blockquot"><p>“<i>The redemption of principal has been effected without the aid of +any internal taxes, either direct or indirect, without any addition +during the last seven years to the rate of duties on importations, +which on the contrary have been impaired by the repeal of the duty +on salt, and notwithstanding the great diminution of commerce +during the last four years.</i> It therefore proves decisively the +ability of the United States with their ordinary revenue to +discharge, in ten years of peace, a debt of forty-two millions of +dollars, a fact which<span class='pagenum'><a name="Page_206" id="Page_206">[Pg 206]</a></span> considerably lessens the weight of the most +formidable objection to which that revenue, depending almost solely +on commerce, appears to be liable. In time of peace it is almost +sufficient to defray the expenses of a war; in time of war it is +hardly competent to support the expenses of a peace establishment. +Sinking at once, under adverse circumstances, from fifteen to six +or eight millions of dollars, it is only by a persevering +application of the surplus which it affords us in years of +prosperity, to the discharge of the debt, that a total change in +the system of taxation or a perpetual accumulation of debt can be +avoided. But if a similar application of such surplus be hereafter +strictly adhered to, forty millions of debt, contracted during five +or six years of war, may always, without any extraordinary +exertions, be reimbursed in ten years of peace. This view of the +subject at the present crisis appears necessary for the purpose of +distinctly pointing out one of the principal resources within reach +of the United States. But to be placed on a solid foundation, it +requires the aid of a revenue sufficient at least to defray the +ordinary expenses of government, and to pay the interest on the +public debt, including that on new loans which may be authorized.”</p></div> + +<p>From this plain declaration, it was evident that the sum necessary to +pay interest on new loans, and provide for their redemption by the +operation of the sinking fund, could not be obtained from the ordinary +sources of revenue, and that resort must be had to extraordinary imposts +or direct taxation. On January 10, 1812, in response to an inquiry of +the Ways and Means Committee as to an increase of revenue in <i>the event +of a war</i>,<span class='pagenum'><a name="Page_207" id="Page_207">[Pg 207]</a></span> Gallatin submitted a project for war loans of ten millions a +year, irredeemable for ten years. He pointed out that the government had +never since its organization obtained considerable loans at six per +cent. per annum, except from the Bank of the United States, and these, +on a capital of seven millions, never amounted to seven millions in the +whole. As the amount of prospective loans would naturally raise the +amount of interest, it seemed prudent not to limit the rate of interest +by law; ineligible as it seemed to leave that rate discretionary with +the executive, it was preferable to leaving the public service +unprovided for. For the same reason the loans should be made +irredeemable for a term not less than ten years.</p> + +<p>He then repeated a former suggestion, that “treasury notes,” bearing +interest, might be issued, which would to that extent diminish the +amount to be directly borrowed and also provide a part of the +circulating medium, passing as bank notes; but their issue must be +strictly limited to that amount at which they would circulate without +depreciation. So long as the public credit is preserved and a sufficient +revenue provided, he entertained no doubts of the possibility of +procuring on loan the sums necessary to defray the extraordinary +expenses of a war. He warned the committee, and through it Congress, +that "no artificial provisions, no appropriations or investments of +particular funds in certain persons, <i>no nominal<span class='pagenum'><a name="Page_208" id="Page_208">[Pg 208]</a></span> sinking fund</i>, however +constructed, will ever reduce a public debt unless the net annual +revenue shall exceed the aggregate of the annual expenses, including the +interest of the debt." He then submitted the following estimates:—</p> + +<div class="blockquot"><p>“The current or peace expenses have been estimated at nine millions +of dollars. Supposing the debt contracted during the war not to +exceed fifty millions and its annual interest to amount to three +millions, the aggregate of the peace expenditure would be no more +than twelve millions. And as the peace revenue of the United States +may at the existing rate of duties be fairly estimated at fifteen +millions, there would remain from the first outset a surplus of +three millions applicable to the redemption of the debt. So far, +therefore, as can be now foreseen, there is the strongest reason to +believe that the debt thus contracted will be discharged with +facility and as speedily as the terms of the loans will permit. Nor +does any other plan in that respect appear necessary than to extend +the application of the annual appropriation of eight millions (and +which is amply sufficient for that purpose) to the payment of +interest and reimbursement of the principal of the new debt.... If +the national revenue exceeds the national expenditure, a simple +appropriation for the payment of the principal of the debt and +coextensive with the object is sufficient and will infallibly +extinguish the debt. If the expense exceeds the revenue, the +appropriation of any specific sum and the investment of the +interest extinguished or of any other fund, will prove altogether +nugatory; and the national debt will, notwithstanding that +apparatus, be annually increased by an amount equal to the deficit +in<span class='pagenum'><a name="Page_209" id="Page_209">[Pg 209]</a></span> the revenue.... What appears to be of vital importance is that +<i>the crisis</i> should at once be met by the adoption of efficient +measures, which will with certainty provide means commensurate with +the expense, and, by <i>preserving unimpaired instead of abusing that +public credit on which the public resources so eminently depend, +will enable the United States to persevere in the contest until an +honorable peace shall have been obtained</i>.”</p></div> + +<p>On March 14 Congress authorized a public loan of eleven millions of +dollars, leaving it optional with the banks who subscribed to take +stock, or to loan the money on special contract. The books were opened +May 1 and 2, and in the two days $6,118,900 were subscribed: $4,190,000 +by banks and $1,928,000 by individuals. The rate was six per cent. Mr. +Gallatin reported this result, and proposed the issue of treasury notes +for such amount as was desired within the limit of the loan to bear +interest at five and two fifths per cent. a year, equal to a cent and a +half per day on a hundred dollars' note; 2d, to be payable one year +after date of issue; 3d, to be in the meanwhile receivable in payment of +all duties, taxes, or debts due to the United States. The first of these +ingenious qualifications was adopted by Mr. Chase in his issue of the +seven-thirties.</p> + +<p>On June 18 war was declared. On the 28th Mr. Gallatin submitted his +estimate of receipts and expenditures for the year.<span class='pagenum'><a name="Page_210" id="Page_210">[Pg 210]</a></span></p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget figures"> +<tr><td class="tdc" colspan="5"><span class="smcap">Expenditures In Round Numbers</span>.</td></tr> +<tr><td align='left'>Civil and miscellaneous</td><td align='right'>$1,560,000</td></tr> +<tr><td align='left'>Military establishment, and Indian dept</td><td align='right'>12,800,000</td></tr> +<tr><td align='left'>Naval establishment</td><td align='right'>3,940,000</td></tr> +<tr><td align='left'>Public debt</td><td align='right'>8,000,000</td></tr> +<tr><td align='left'></td><td align='right'>=========</td></tr> +<tr><td align='left'></td><td align='right'>$26,300,000</td></tr> +<tr><td align='left'></td><td align='right'>=========</td></tr> +<tr><td class="tdc" colspan="5"><span class="smcap">Funds Provided</span>.</td></tr> +<tr><td align='left'>Balance in Treasury, January 1</td><td align='right'>$2,000,000</td></tr> +<tr><td align='left'>Receipts from duties and sales of lands</td></tr> +<tr><td align='left'> as by estimate of November 22, 1811</td><td align='right'>8,200,000</td></tr> +<tr><td align='left'>Loan authorized by law</td><td align='right'>11,000,000</td></tr> +<tr><td align='left'>Treasury notes as authorized by House</td></tr> +<tr><td align='left'> of Representatives</td><td align='right'>5,000,000</td></tr> +<tr><td align='left'></td><td align='right'>=========</td></tr> +<tr><td align='left'></td><td align='right'>$26,200,000</td></tr> +</table></div> + +<p>The issue of <i>treasury notes</i> was a novel experiment in the United +States; but they were favorably received, and Mr. Gallatin calculated +that the full amount authorized by law, $5,000,000, could be put in +circulation during the year. The result of a loan seemed more doubtful. +The old six per cents. and deferred stock had already fallen two or +three per cent. below par. Mr. Gallatin again recommended the conversion +of these securities into a new six per cent. stock, which would +facilitate the new loan, and to prevent the necessity of applying, the +same years, the large sums required in reimbursement of and purchase of +the public debt.</p> + +<p>On December 1 Mr. Gallatin made his last annual statement.<span class='pagenum'><a name="Page_211" id="Page_211">[Pg 211]</a></span></p> + +<h3><i>Treasury Report for Fiscal Year ending September</i> 30, 1812.</h3> + +<div class='center'> +<table border="0" cellpadding="2" cellspacing="2" summary="Budget figures, 1812" style="width: 60%;"> + <tr> + <td class="tdc" colspan="3"><span class="smcap">Receipts.</span></td> + </tr> + <tr> + <td class="tdl" colspan="2">Customs, sales of lands, etc.</td> + <td class="tdr">$10,934,946.20</td> + </tr> + <tr> + <td class="tdl" colspan="2">On account of loan of eleven millions, + act 14 March, 1812</td> + <td class="tdr" style="border-bottom: 2px black solid;">5,847,212.50</td> + </tr> + <tr> + <td class="tdl" style="width: 50%;"> </td> + <td class="tdl" style="width: 25%;"> </td> + <td class="tdr" style="width: 25%;">$16,782,158.70</td> + </tr> + <tr> + <td class="tdl" colspan="2">Balance in Treasury October 1, 1811</td> + <td class="tdr" style="border-bottom: 2px black solid;">3,947,818.36</td> + </tr> + <tr> + <td class="tdl" colspan="2"> </td> + <td class="tdr" style="border-bottom: 2pt black double;">$20,729,977.06</td> + </tr> + <tr> + <td class="tdc" colspan="3" style="padding-top: 1em;"><span class="smcap">Disbursements.</span></td> + </tr> + <tr> + <td class="tdl" colspan="2">Civil Department, foreign intercourse</td> + <td class="tdr">$1,823,069.35</td> + </tr> + <tr> + <td class="tdl">Army, militia, forts, etc.</td> + <td class="tdr">$7,770,300.00</td> + <td class="tdr"> </td> + </tr> + <tr> + <td class="tdl">Navy Department</td> + <td class="tdr">3,107,501.54</td> + <td class="tdr"> </td> + </tr> + <tr> + <td class="tdl">Indian Department</td> + <td class="tdr" style="border-bottom: 2px black solid;">230,975.00</td> + <td class="tdr">11,108,776.54</td> + </tr> + <tr> + <td class="tdl">Interest on debt</td> + <td class="tdr">$2,498,013.19</td> + <td class="tdr"> </td> + </tr> + <tr> + <td class="tdl">On account of principal</td> + <td class="tdr" style="border-bottom: 2px black solid;">2,938,465.99</td> + <td class="tdr" style="border-bottom: 2px black solid;">5,436,479.18</td> + </tr> + <tr> + <td class="tdl"> </td> + <td class="tdr"> </td> + <td align='right'>$18,368,325.07</td> + </tr> + <tr> + <td class="tdl" colspan="2">Leaving in Treasury 30 Sept., 1812</td> + <td class="tdr" style="border-bottom: 2px black solid;">2,361,652.69</td> + </tr> + <tr> + <td class="tdl"> </td> + <td class="tdr"> </td> + <td class="tdr">$20,729,977.76</td> + </tr> +</table> +</div> + +<p>The sums obtained or secured on loans during the year amounted to +$13,100,209, and the secretary had the satisfaction to state “that +notwithstanding the addition thus made to the public debt, and although +a considerable portion has been remitted from England and brought to +market in America, the public stocks (which had at first experienced a +slight depression) have been for the last three months, and continue to +be, at par.” His last report to the commissioners of the sinking fund of +February 5, 1813, stated the usual appli<span class='pagenum'><a name="Page_212" id="Page_212">[Pg 212]</a></span>cation of $8,719,773 to the +principal and interest of the debt.</p> + +<p>In his report of December 1, 1812, Mr. Gallatin announced that a loan of +twenty-one millions was needed for the service of 1813. Congress +authorized a loan of $16,000,000, having six years to run, and an +additional issue of $5,000,000 of treasury notes. Congress adjourned on +March 4. Their procrastination and the pressing demands of the War +Department nearly beggared the Treasury before the loans could be +negotiated and covered into it.</p> + +<p>On April 17 Mr. Gallatin wrote to the secretaries of the army and of the +navy, and sent a copy of his letters to Mr. Madison with information +that the loan had been filled, and the probable receipts of the Treasury +from ordinary sources for the year ascertained. These he estimated at +$9,300,000. Deducting the annual appropriation for interest on the debt, +the sum expended to March 31, and the amount needed for the civil +service, there remained for the War and Navy Departments together the +sum of $18,720,000.</p> + +<p>The loan of $16,000,000 was obtained in the following places:—</p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget figures"> +<tr><td align='left'>States east of New York</td><td align='right'>$486,700</td></tr> +<tr><td align='left'>State of New York</td><td align='right'>5,720,000</td></tr> +<tr><td align='left'>Philadelphia, Pa.</td><td align='right'>6,858,400</td></tr> +<tr><td align='left'>Baltimore and District of Columbia</td><td align='right'>2,393,300</td></tr> +<tr><td align='left'>State of Virginia</td><td align='right'>187,000</td></tr> +<tr><td align='left'>Charleston, S. C.</td><td align='right'>354,000</td></tr> +<tr><td align='left'></td><td align='right'>===========</td></tr> +<tr><td align='left'></td><td align='right'>$16,000,000</td></tr> +</table></div> + +<p>The history of this subscription is not without interest. The extremely<span class='pagenum'><a name="Page_213" id="Page_213">[Pg 213]</a></span> +small subscriptions in New England and in the Southern States can hardly +be explained on any other theory than that of a belief in the collapse +of the finances of the United States and a dissolution of the Union, for +which the New England States had certainly been prepared by their +governing minds.<a name="FNanchor_14_14" id="FNanchor_14_14"></a><a href="#Footnote_14_14" class="fnanchor">[14]</a></p> + +<p>Books were opened on March 12 and 13, 1813, at Portsmouth, Salem, +Boston, Providence, New York, Albany, Philadelphia, Baltimore, +Washington, Richmond, and Charleston. In the two days the subscriptions +only reached the sum of $3,956,400. They were again opened on the 25th +of March at New York, Philadelphia, Baltimore, and Washington. The New +England and Southern States seem to have been disregarded because of +their indifference in the first instance. The books remained open from +March 25 to 31, during which time there were received $1,881,800, a +total of $5,838,200.</p> + +<p>The pressure fell on the Middle States. In these, fortunately for the +government, there were three great capitalists whose faith in the future +prosperity of the United States was unimpaired. All were foreigners: +David Parish and Stephen Girard in Philadelphia and John Jacob Astor in +New York. These now came forward, no doubt at the instance of Mr. +Gallatin, who was a per<span class='pagenum'><a name="Page_214" id="Page_214">[Pg 214]</a></span>sonal friend of each. Parish and Girard offered +on April 5 to take eight millions of the loan at the rate of +eighty-eight dollars for a certificate of one hundred dollars bearing +interest at six per cent., redeemable before December 31, 1825, they to +receive one quarter of one per cent. commission on the amount accepted, +and in case of a further loan for the service of the year 1813, to be +placed on an equal footing with its takers. John Jacob Astor on the same +day and at the same place proposed to take for himself and his friends +the sum of two million and fifty-six thousand dollars of the loan on the +same conditions. These offers were accepted and the loan was complete. +An offer on behalf of the State of Pennsylvania to take one million of +the loan was received too late. Altogether the offers amounted to about +eighteen millions, or two millions more than the sum demanded. Mr. +Gallatin, clinging to his old plan, endeavored to negotiate this loan at +par, by offering a premium of a thirteen years' annuity of one per +cent., but found it impracticable. Indeed, the system of annuity, +general in England, has never found favor as an investment in the United +States.</p> + +<p>This was Mr. Gallatin's last financial transaction. A few weeks later, +at his own request, he severed his actual connection with the Treasury +Department and was on his way to St. Petersburg to secure the proffered +mediation of the emperor of Russia between the United States and Great +Britain.<span class='pagenum'><a name="Page_215" id="Page_215">[Pg 215]</a></span></p> + +<p>Thus ended Mr. Gallatin's administration of the national finances. The +hour for saving had passed. The imperious necessities of war take no +heed of economic principles. The work which the secretary had done +became as the rope of sand. It is not surprising that Gallatin wearied +of his post; that he watched with vain regret and unavailing sighs the +unavoidable increase of the national debt, and that he sought relief in +other services where success was not so evanescent as in the Treasury +Department. Before the close of Madison's administration, February 12, +1816, the public debt had run up to over one hundred and twenty-three +millions,<a name="FNanchor_15_15" id="FNanchor_15_15"></a><a href="#Footnote_15_15" class="fnanchor">[15]</a> and a sum equal to the entire amount of Mr. Gallatin's +savings in two terms had been expended in one. But his work had not been +in vain. The war was the crucial test of the soundness of his financial +policy. The maxims which he announced, that debt can only be reduced by +a surplus of revenue over expenditure, and the accompaniment of every +loan by an appropriation for its extinguishment, became the fundamental +principle of American finance. Mr. Gallatin was uniformly supported in +it by Congress and public opinion. It was faithfully adhered to by his +distinguished successors, Dallas and Crawford, and the impulse thus +given continued through later administrations, until, in 1837, twenty +years after the peace, the entire debt had been extinguished. All this +without any other variation from<span class='pagenum'><a name="Page_216" id="Page_216">[Pg 216]</a></span> Mr. Gallatin's original plan than an +increase of the annual appropriation, to the sinking fund for its +reimbursement, from eight to ten millions.<a name="FNanchor_16_16" id="FNanchor_16_16"></a><a href="#Footnote_16_16" class="fnanchor">[16]</a></p> + +<p>The only charge which has ever been made against Gallatin's +administration was, that he reduced the debt at the expense of the +defenses and security of the country; but, to quote the words of one of +his biographers:<a name="FNanchor_17_17" id="FNanchor_17_17"></a><a href="#Footnote_17_17" class="fnanchor">[17]</a> “Mr. Gallatin had the sagacity to know that it [the +redemption of the debt] would make but little difference in the degree +of preparation of national defense and means of contest, for which it is +impossible ever to obtain a considerable appropriation before the near +approach of the danger that may render them necessary. He knew that the +money thus well and wisely devoted to the payment of the debt was only +rescued from a thousand purposes of extravagance and mal-application to +which all our legislative bodies are so prone whenever they have control +of surplus funds.” In our own day the irresistible temptations of a full +treasury need no labored demonstration. Friend and foe drop political +differences over the abundant fleshpot. The very thought of catering to +such appetites disgusted Gallatin. To Jefferson he frankly said, in +1809, that while he did not pretend to step out of his own sphere and to +control the internal management of other departments, yet he could not +"consent to act the part of a mere financier, to become a contriver of +taxes, a dealer of loans, a seeker of<span class='pagenum'><a name="Page_217" id="Page_217">[Pg 217]</a></span> resources for the purpose of +supporting useless baubles, of increasing the number of idle and +dissipated members of the community, of fattening contractors, pursers, +and agents, and of introducing in all its ramifications that system of +patronage, corruption, and rottenness which you justly execrate.”</p> + +<div class="centered"> +<table border="0" cellpadding="2" cellspacing="0" style="width:100%; font-size: 100%;" summary="Table Head"> + <tr> + <td class="tdc" colspan="5">RECEIPTS AND EXPENDITURES DURING MADISON'S ADMINISTRATION,</td> + </tr> + <tr> + <td class="tdc" colspan="5">FROM ELLIOTT'S SYNOPTICAL EXHIBITS.</td> + </tr> +</table> +</div> + +<h4><span class="smcap">Receipts</span>.</h4> + +<div class="centered"> +<table border="0" cellpadding="2" cellspacing="0" width="105%" summary="Budget figures" style="border: 1pt black solid; font-size: 70%;"> + <tr style="font-size: 120%;"> + <td class="tdc" style="width: 12%; border: 1pt black solid;">Four years ending<br /> December 31.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Customs.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Internal Revenue.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Direct Taxes.</td> + <td class="tdc" style="width: 9%; border: 1pt black solid;">Postage.</td> + <td class="tdc" style="width: 9%; border: 1pt black solid;">Public Lands.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Loans and Treasury Notes.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Dividends and sales of Bank Stock.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Miscellaneous.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Total.</td> + </tr> + <tr> +<td class="tdl stylet">1812</td> +<td class="tdr stylet">$38,151,330.15</td> + <td class="tdr stylet">$18,674.03</td> + <td class="tdr stylet">$28,491.87</td> + <td class="tdr stylet">$85,077.40</td> + <td class="tdr stylet">$2,889,466.46</td> + <td class="tdr stylet">$15,606,201.30</td> + <td class="tdc stylet">—</td> + <td class="tdr stylet">$209,309.34</td> + <td class="tdr stylet">$56,988,550.55</td> + </tr> + <tr> + <td class="tdl styleb">1816</td> + <td class="tdr styleb">62,813,212.43</td> + <td class="tdr styleb">11,470,507.24</td> + <td class="tdr styleb">8,639,611.38</td> + <td class="tdr styleb">364,787.84</td> + <td class="tdr styleb">4,977,570.54</td> + <td class="tdr styleb">94,321,103.73</td> + <td class="tdc styleb">—</td> + <td class="tdr styleb">672,148.72</td> + <td class="tdr styleb">183,217,041.32</td> + </tr> + <tr> + <td class="tdl" style="border: 1pt black solid;">Madison</td> + <td class="tdr" style="border: 1pt black solid;">100,964,542.58</td> + <td class="tdr" style="border: 1pt black solid;">11,489,181.27</td> + <td class="tdr" style="border: 1pt black solid;">8,668,103.25</td> + <td class="tdr" style="border: 1pt black solid;">449,865.24</td> + <td class="tdr" style="border: 1pt black solid;">7,867,037.00</td> + <td class="tdr" style="border: 1pt black solid;">109,927,305.03</td> + <td class="tdc" style="border: 1pt black solid;">—</td> + <td class="tdr" style="border: 1pt black solid;">839,557.50</td> + <td class="tdr" style="border: 1pt black solid;">240,205,591.87</td> + </tr> +</table> +</div> + +<h4><span class="smcap">Expenditures</span>.</h4> + +<div class="centered"> +<table border="0" cellpadding="2" cellspacing="0" width="105%" summary="Budget figures" style="border: 1pt black solid; font-size: 70%;"> + <tr style="font-size: 120%;"> + <td class="tdc" style="width: 12%; border: 1pt black solid;">Four years ending <br />December 31.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Civil List.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Foreign Intercourse.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Miscellaneous.</td> + <td class="tdc" style="width: 9%; border: 1pt black solid;">Military Dept.</td> + <td class="tdc" style="width: 9%; border: 1pt black solid;">Pensions.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Indian Depart.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Naval Dept.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Public Debt.</td> + <td class="tdc" style="width: 10%; border: 1pt black solid;">Total.</td> + </tr> + <tr> + <td class="tdl stylet">1812</td> + <td class="tdr stylet">$2,887,197.98</td> + <td class="tdr stylet">$860,281.28</td> + <td class="tdr stylet">$1,619,849.12</td> + <td class="tdr stylet">$19,480,722.54</td> + <td class="tdr stylet">$338,023.68</td> + <td class="tdr stylet">$944,848.84</td> + <td class="tdr stylet">$10,006,934.54</td> + <td class="tdr stylet">$26,920,285.12</td> + <td class="tdr stylet">$63,058,143.10</td> + </tr> + <tr> +<td class="tdl styleb">1816</td> + <td class="tdr styleb">3,768,342.61</td> + <td class="tdr styleb">1,042,633.42</td> + <td class="tdr styleb">5,015,100.92</td> + <td class="tdr styleb">70,809,210.90</td> + <td class="tdr styleb">435,614.48 </td> + <td class="tdr styleb">1,140,015.30</td> + <td class="tdr styleb">26,326,169.25</td> + <td class="tdr styleb">56,508,652.66</td> + <td class="tdr styleb">165,045,739.54</td> + </tr> + <tr> + <td class="tdl" style="border: 1pt black solid;">Madison</td> + <td class="tdr" style="border: 1pt black solid;">6,655,540.59</td> + <td class="tdr" style="border: 1pt black solid;">1,902,914.70</td> + <td class="tdr" style="border: 1pt black solid;">6,634,950.04</td> + <td class="tdr" style="border: 1pt black solid;">90,289,933.44</td> + <td class="tdr" style="border: 1pt black solid;">773,638.16</td> + <td class="tdr" style="border: 1pt black solid;">2,084,864.14</td> + <td class="tdr" style="border: 1pt black solid;">36,333,103.79</td> + <td class="tdr" style="border: 1pt black solid;">83,428,937.78</td> + <td class="tdr" style="border: 1pt black solid;">228,103,882.64</td> + </tr> +</table> +</div> + +<hr style='width: 45%;' /> + +<span class='pagenum'><a name="Page_218" id="Page_218">[Pg 218]</a></span><h2><i>Revenue</i></h2> + +<p><i>L'État c'est moi</i> was the autocratic maxim of Louis Quatorze. An +adherence to it cost the Bourbons their throne. Burke was more +philosophical when he said, “The revenue of the State is the State.” Its +imposition, its collection, and its application involve all the +principles and all the powers of government, constitutional or +extraordinary. It is the sole foundation of public credit, the sole +support of the body politic, its life-blood in peace, its nerve in war. +The “purse and the sword” are respectively the resource and defense of +government and peoples, and they are interdependent powers. With the +discovery of the sources of revenue, and the establishment of its +currents, Mr. Gallatin, in the first eight years of his administration +of the Treasury, had nothing to do. He had only to maintain those +systems which Hamilton had devised, and which, wisely adapted to the +growth of the country, proved amply adequate to the ordinary +expenditures of the government and to the gradual extinguishment of the +debt. The entire revenue included three dis<span class='pagenum'><a name="Page_219" id="Page_219">[Pg 219]</a></span>tinct branches: imposts on +importations and tonnage, internal revenue, sales of public lands. The +duties on imports of foreign merchandise were alone sufficient to meet +the current expenses of the various departments of administration on a +peace establishment, and, increasing with the growth of the country, +would prove ample in future. The gross amount of imports in the four +years of Adams's administration, 1796-1800, was about three hundred and +fourteen millions of dollars, and the customs yielded about thirty +millions.</p> + +<p>Mr. Gallatin's first annual report, submitted to the House of +Representatives in December, 1801, exhibited his financial scheme. He +recapitulated the various sources of permanent revenue. They were those +of Hamilton's original tariff.</p> + +<p>The revenues for the year ended September 30, 1801, were the basis of +the estimates for future years. These were</p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget figures"> +<tr><td align='left'>Duties on imports and tonnage</td><td align='right'>$10,126,213.92</td></tr> +<tr><td align='left'>Internal revenue</td><td align='right'>854,000.00</td></tr> +<tr><td align='left'>Land sales</td><td align='right'>400,000.00</td></tr> +<tr><td align='left'></td><td align='right'>===========</td></tr> +<tr><td align='left'></td><td align='right'>$11,380,213.92</td></tr> +</table></div> + +<p>But the close of the war in Europe sensibly diminished the enormous +carrying trade which fell to the United States as neutrals, and, as a +consequence, the revenue from that source; large quantities of goods +were brought into the United States and reëxported to foreign ports +under a system of debenture. The revenue on what Mr. Gallatin<span class='pagenum'><a name="Page_220" id="Page_220">[Pg 220]</a></span> calls +“this accidental commerce” was $1,200,000. He therefore <i>estimated the +permanent revenues at</i></p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget figures"> +<tr><td align='left'>Customs duties</td><td align='right'>$9,500,000</td></tr> +<tr><td align='left'>Land sales</td><td align='right'>400,000</td></tr> +<tr><td align='left'>Postage</td><td align='right'>50,000</td></tr> +<tr><td align='left'>Internal revenue</td><td align='right'>650,000</td></tr> +<tr><td align='left'></td><td align='right'>=========</td></tr> +<tr><td align='left'></td><td align='right'>$10,600,000</td></tr> +</table></div> + +<p>Or, without the internal revenue, say ten millions of permanent revenue, +as a basis for <i>the permanent expenditures</i>.</p> + +<p>To bring the expenditures within this sum, however, a reduction in the +army and navy establishments was necessary. This Gallatin soon found to +be too radical a measure for success, either in the cabinet or Congress, +however well it may have accorded with Jefferson's utopian views. In the +budget of 1802 the internal revenue, $650,000, was, therefore, a +necessary item. The expenditures proposed were</p> + +<div class='center'> +<table border="0" cellpadding="2" cellspacing="2" summary="Budget figures" style="width: 60%;"> + <tr> + <td class="tdl" colspan="2">Annual appropriation for interest and + principal of debt</td> + <td class="tdr">$7,100,000</td> + </tr> + <tr> + <td class="tdl">Civil list</td> + <td class="tdr">$780,000</td></tr> + <tr> + <td class="tdl" style="width: 50%;">Foreign intercourse</td> + <td class="tdr" style="width: 25%;">200,000</td> + <td class="tdr" style="width: 25%;"> </td> + </tr> + <tr> + <td class="tdl">Military and Indian Dept</td> + <td class="tdr">1,420,000</td> + <td class="tdr"> </td> + </tr> + <tr> + <td class="tdl">Naval</td> + <td class="tdr" style="border-bottom: 2px black solid;">1,100,000</td> + <td class="tdr"> </td> + </tr> + <tr> + <td class="tdl"> </td> + <td class="tdr">$3,500,000</td> + <td class="tdr" style="border-bottom: 2px black solid;">3,500,000</td> + </tr> + <tr> + <td class="tdl"> </td> + <td class="tdr"> </td> + <td class="tdr">$10,600,000</td> + </tr> +</table> +</div> + +<p>In this budget the estimate for the military establishment was an +increase over that of Wolcott for 1801, which was $1,120,000. But the<span class='pagenum'><a name="Page_221" id="Page_221">[Pg 221]</a></span> +Republicans in the House were not content with this arrangement. The +internal revenues were utterly distasteful to them. They had been laid +against their protest and collected under military menace. They were of +those Federal measures of which they would have none. John Randolph, +chairman of the Committee of Ways and Means, reported, March 2, 1802, +against the entire system of internal duties, in the old words of the +Pennsylvania radicals, as vexatious, oppressive, and peculiarly +obnoxious; as of the nature of an excise which is hostile to the genius +of a free people, and finally because of their tendency to multiply +offices and increase the patronage of the executive. The repeal was +imperative upon the Republican party. On April 6, 1802, the act was +repealed and the surplus of the budget stripped from it, without Mr. +Gallatin's consent, certainly, but also without protest from him.</p> + +<p>The prosperity of the country continued. The impost duties for the +fiscal year ending September 30, 1802, rose to $12,280,000, the sales of +the public lands to $326,000, and the postage to $50,500, a total of +$12,656,500, and left in the Treasury, September 30, 1802, the sum of +$4,539,675. This large increase in the Treasury did not in the least +change Mr. Gallatin's general plan, and his budget for 1803 was based on +his original scale of a permanent revenue of $10,000,000, to correspond +with which the estimates of the preceding year were reduced. The fiscal +year closed Sep<span class='pagenum'><a name="Page_222" id="Page_222">[Pg 222]</a></span>tember 30, 1803, with a balance in the Treasury of +$5,860,000. This situation of the finances was fortunate in view of +secret negotiations which the President and Congress were initiating for +the purchase of Louisiana from France.</p> + +<p>The secretaries of war and of the navy had promised to reduce their +expenditures to a figure approximate to Mr. Gallatin's estimates; but +the breaking out of hostilities with Tripoli prevented the proposed +economy, and Mr. Gallatin was called upon to provide for an increased +expenditure with one certain source of revenue definitively closed. He +therefore proposed an additional tax of two and one half per cent. on +all importations which paid an <i>ad valorem</i> duty. This additional +impost, laid by act of March 25, 1804, called the Mediterranean Fund, +remained in force long after the war closed and held its place on the +books of the Treasury under that name.</p> + +<p>The bulk of the cost of Louisiana was met by an issue of bonds; but Mr. +Gallatin, true to his principle, applied the moneys in the Treasury as +far as they would go. The budget for 1805 was on a different scale. The +increase in the debt demanded a proportionate increase in the revenue to +meet the additional sum required for interest and gradual annual +reimbursement. The Mediterranean Fund was sufficient to meet the +increased amounts required for the navy. In this manner he held up the +Navy Department to a strict accountability and made it responsible to +Congress<span class='pagenum'><a name="Page_223" id="Page_223">[Pg 223]</a></span> and not to the cabinet for its administration, and he thus, +from his own point of view, relieved the Treasury Department from any +responsibility for extraordinary expenditure.</p> + +<p>Mr. Gallatin closed his four years of administration with flying colors. +The successful management of the finances was an important factor in the +election of 1804, which returned Mr. Jefferson to the presidential chair +and insured to the country the inestimable advantages of Mr. Gallatin's +practical mind. Order reigned in his department at least, and order +subordinate to the strictest requirements of law. In the four years, +1801-1804, Jefferson's first term, the imports aggregated $337,363,510 +and the customs yielded $45,000,000.</p> + +<p>The annual report, made December 9, 1805, announced an increasing +revenue, amounting in all to thirteen and one half millions of dollars, +chiefly from customs. Still Mr. Gallatin made but small addition to his +estimates for the coming year. The permanent revenue he raised to twelve +and one half millions and increased the appropriation for the payment of +the debt and interest to eight millions. Nothing occurred during the +next year to check the growth of the country; the revenue continued on a +rising scale, and reached close upon fifteen millions of dollars.</p> + +<p>So far Mr. Gallatin had met but inconsiderable obstacles in his course, +and these he used to his advantage to impress economy upon the Army and +Navy Departments, and enforce his principle of<span class='pagenum'><a name="Page_224" id="Page_224">[Pg 224]</a></span> minute appropriations +for their government. All that he had already accomplished in the +establishment of a sound financial system and the support of the credit +of the United States was but the basis of a broader structure of +national economy. His extensive scheme of internal improvements was +hardly matured when the thunder broke in the clear sky.</p> + +<p>The acquisition of Louisiana, the large carrying trade which had passed +under the American flag, and the rapid prosperity of the financial and +industrial condition of the country aroused the jealousy of Great +Britain, and determined her to check the further progress of the United +States by war, if need be. The capture of the American frigate +Chesapeake by the man-of-war Leopard, June 22, 1807, was only the first +in a series of outrages which rendered the final collision, though long +delayed, inevitable. Mr. Gallatin at once recognized that the Treasury +could no longer be conducted on a peace basis. “Money,” he wrote to +Joseph H. Nicholson, “we will want to carry on the war; our revenue will +be cut up; new and internal taxes will be slow and not sufficiently +productive; we must necessarily borrow. This is not pleasing to me, but +it must be done.” Congress was called together for October 26, 1807, and +on November 5, Mr. Gallatin sent in his annual report. There was still +hope that Great Britain would make amends for the outrage, and Congress +was certainly peaceably disposed. In<span class='pagenum'><a name="Page_225" id="Page_225">[Pg 225]</a></span> the condition of the Treasury +there was no reason as yet for recommending extraordinary measures. The +revenues for the year passed the sum of seventeen millions; the balance +in the Treasury reached eight and one half millions; the surplus on a +peace footing was twelve millions. Mr. Gallatin recommended that the +duties should be doubled in case war were threatened. He said, “Should +the revenue fall below seven millions of dollars, not only the duty on +salt and the Mediterranean duties could be immediately revived, but the +duties on importation generally be considerably increased, perhaps +double, with less inconvenience than would arise from any other mode of +taxation.” Experience had proven that this source of revenue is in the +United States “the most productive, the easiest to collect, and least +burdensome to the great mass of the people.” But still the war-cloud did +not break. Mr. Canning contented himself with war in disguise, and by +his Order in Council of November 11, 1807, shut the ports of Europe to +American trade, and wiped away the advantages of the United States as a +neutral power. The United States answered with the act of embargo on +December 22, 1807, completing, as far as it was possible for legislation +to effect it, the blockade of the Treasury Department as regarded +revenues from foreign imports. The immediate effect, however, of these +acts in Great Britain and America was an enormous temporary increase of +importations in the interim from the<span class='pagenum'><a name="Page_226" id="Page_226">[Pg 226]</a></span> time of the passage of the act +until the date when it took effect. To aid merchants in this peculiar +condition of affairs an act was passed by Congress, on March 10, 1808, +extending the terms of credit on revenue bonds.</p> + +<p>Mr. Gallatin's report of December 16, 1808, closed the record of his +eight years of management of the Department. In the second term of +Jefferson's administration, 1805-1808, the gross amount of imports had +risen to $443,990,000, and the customs collected to nearly $60,000,000. +In the entire eight years, 1800-1808, the gross amount of importations +was $781,000,000, and the customs yielded $105,000,000. The entire +expenses of the government in the same period, including $65,000,000 of +debt, had been liquidated from customs alone.</p> + +<p>The specie in the Treasury on September 20, 1808, reached nearly +$14,000,000. Mr. Jefferson knew of the amount in the Treasury when he +wrote his last message, November 8, 1808, and he could not have been +ignorant of Mr. Gallatin's warning of the previous year that a +continuance of the embargo restriction would reduce the revenue below +the point of annual expenditures and require an additional impost; yet +he had the ignorance or the presumption to say in his message, "Shall it +(the surplus revenue) lie unproductive in the public vaults? Shall the +revenue be reduced? or shall it not rather be appropriated to the +improvement of roads, canals, rivers, education, and other<span class='pagenum'><a name="Page_227" id="Page_227">[Pg 227]</a></span> great +foundations of prosperity and union under the powers which Congress may +already possess or such amendments of the Constitution as may be +approved by the States? While uncertain of the course of things, the +time may be advantageously employed in obtaining the powers necessary +for a system of improvement, should it be thought best." In these words +Jefferson surrendered the vital principle of the Republican party. In +his satisfaction at the only triumph of his administration, the +management of the finances and the purchase of a province without a +ripple on the even surface of national finance, he gave up the very +basis of the Republican theory, the reduction of the government to its +possible minimum, and actually proposed a system of administration +coextensive with the national domain, an increase of the functions of +government, and consequently of executive power.</p> + +<p>The annual report of the Treasury, presented December 16, 1808, showed +no diminution of resources. The total receipts for the fiscal year were +nearly eighteen millions. The total receipts for—</p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget figures"> +<tr><td align='left'></td></tr> +<tr><td align='left'>Customs reached</td><td align='right'>$26,126,648</td></tr> +<tr><td align='left'>On which debentures were allowed</td></tr> +<tr><td align='left'> on exportations</td><td align='right'>10,059,457</td></tr> +<tr><td align='left'></td><td align='right'>=========</td></tr> +<tr><td align='left'>Actual receipts from customs</td><td align='right'>$16,067,191</td></tr> +<tr><td align='left'></td></tr> +</table></div> + +<p>But this source of revenue was now definitively closed by the embargo, +while the expenditures of<span class='pagenum'><a name="Page_228" id="Page_228">[Pg 228]</a></span> the government were increased. Mr. Gallatin +met the situation frankly and notified Congress of the resources of the +Treasury.</p> + +<div class='center'> +<table border="0" cellpadding="4" cellspacing="0" summary="Budget figures"> +<tr><td align='left'></td></tr> +<tr><td class="tdc" colspan="5"><span class="smcap">Resources For</span> 1809</td></tr> +<tr><td align='left'>Cash in Treasury</td><td align='right'>$13,846,717.52</td></tr> +<tr><td align='left'>Bank customs, net</td><td align='right'>2,154,000.00</td></tr> +<tr><td align='left'></td><td align='right'>===========</td></tr> +<tr><td align='left'>Total resources</td><td align='right'>$16,000,717.52</td></tr> +<tr><td align='left'></td></tr> +</table></div> + +<p>The receipts from importations and land sales would be offset by +deductions for bad debts and extensions of credit to importers. The +expenditures were set at $13,000,000, which would leave in the Treasury +for extraordinary expenditure $3,000,717. The disbursements had been far +beyond the estimates; those for the military and naval establishments +reaching together six millions.</p> + +<p>It is not to be supposed that Mr. Gallatin saw this depletion of the +Treasury, this rapid dissipation of the specie,—always desirable and +never more so than in periods of trouble,—without disappointment and +regret. His report to Congress was as outspoken politically as it was +financially, and from a foreign-born citizen to an American Congress +must have carried its sting. “Either America,” he wrote, "must accept +the position of commerce allotted to her by the British edicts, and +abandon all that is forbidden,—and it is not material whether this is +done by legal provisions limiting the commerce of the United States to +the permitted places, or by acquiescing in the capture of vessels +stepping beyond the prescribed<span class='pagenum'><a name="Page_229" id="Page_229">[Pg 229]</a></span> bounds. Or the nation must oppose force +to the execution of the orders of England; and this, however done, and +by whatever name called, will be war." He recalled to them his advice of +the preceding years in a vein of tempered bitterness: “Had the duties +been doubled on January 1, 1808, as was then suggested, in case of war +the receipts into the Treasury during that and the ensuing year would +have been increased nine or ten millions of dollars.” He then proposed +to continue the Mediterranean Fund and to double all existing duties on +importations after January 1, 1809. He informed them that no internal +taxes, either direct or indirect, were contemplated by him even in the +case of hostilities against the two belligerent powers; France having +responded to the Orders in Council by Napoleon's Milan decree, December +17, 1807, which was quite as offensive to the United States as that of +Canning. With true statesmanship Mr. Gallatin nerved the country to +extraordinary exertion by reminding it that the geographical situation +of the United States and their history since the Revolution removed +every apprehension of frequent wars.</p> + +<p>During the year 1809 the country drifted along apparently without rudder +or compass, helmsman or course, and the treasury locker was being +rapidly reduced to remainder biscuit. Mr. Madison was inaugurated in +March. In his first message, May 23, 1809, he exposed the financial +situation with an indecision which was as marked a trait of<span class='pagenum'><a name="Page_230" id="Page_230">[Pg 230]</a></span> his +character as optimism was of that of Jefferson. In his message of +November 29, 1809, he said “the sums which had been previously +accumulated in the Treasury, together with the receipts during the year +ending on September 30 last, and amounting to more than nine millions of +dollars, have enabled us to fulfill all our engagements and defray the +current expenses of government without recurring to any loan; but the +insecurity of our commerce and the consequent demands of the public +revenue will probably produce a deficiency in the receipts of the +ensuing year.” Beyond this Madison did not venture; Gallatin was left +alone.</p> + +<p>The Treasury report of December 8, 1809, announced the beginning of +short rations. The expenses of government, exclusively of the payments +on account of the principal of the debt, had exceeded the actual +receipts into the Treasury by a sum of near $1,300,000. If the military +and naval establishments were to be continued at the figures of 1809, +when six millions were expended, there would result a deficiency of +$3,000,000, and a loan of $4,000,000 would be necessary. Otherwise the +Mediterranean Fund would suffice. The cash in the Treasury had fallen +from nearly fourteen millions on June 2, 1809, to less than six millions +on September 3, following. In this report Gallatin expressed his +opinion, that the system of restriction established by the embargo and +partly relaxed must be entirely reinstated or wholly abandoned. On May +1, 1810, an act of strict<span class='pagenum'><a name="Page_231" id="Page_231">[Pg 231]</a></span> prohibition of importations from Great +Britain and her dependencies was passed.</p> + +<p>While from the incompetency of the administration the country was fast +approaching the real crisis of open war, the Republicans in Congress +were deliberately destroying and undermining the basis of national +credit, by which alone it could be carried on. In February the United +States Bank, by which, and its branches, the customs were collected +throughout the country, was destroyed by the refusal of Congress to +renew its charter. Mr. Gallatin in his combinations never contemplated +such a contingency as the total destruction of the fiscal agency on +which the government had relied for twenty years. Unwilling to struggle +longer against the mean personalities and factious opposition of his own +party in Congress, he tendered his resignation to Mr. Madison. But the +Republican party was a party of opposition, not of government. With the +exception of Mr. Gallatin, no competent administrative head had as yet +appeared. There was no one in the party or out of it to take his place. +Mr. Madison knew it. Mr. Gallatin felt it, and remained. Congress met in +November. On the 25th Mr. Gallatin sent in his annual report; the +receipts reached thirteen and a half million dollars.</p> + +<p>The budget for 1812 left a deficiency to be provided for of $1,200,000. +This was a small matter. The revenue Mr. Gallatin proposed to increase, +on the plan before recommended, by ad<span class='pagenum'><a name="Page_232" id="Page_232">[Pg 232]</a></span>ditions of fifty per cent, to the +imposts on foreign commerce. This he preferred to any internal tax.</p> + +<p>At the close of the year the country, chafed beyond endurance by the +indignities put upon it and the sufferings it encountered without +compensation to its pride, was eager for war. Congress was no way loath +to try the dangerous path out of its labyrinth of blunders. The near +contingency imposed the necessity of an immediate examination of the +sources of revenue. In January, 1812, Mr. Gallatin was requested by the +chairman of the Committee of Ways and Means to give his opinion as to +the probable amount of receipts from duties on tonnage and merchandise +in the event of war. This, in view of the vigorous restrictions laid by +France under her continental system of exclusion, Mr. Gallatin estimated +under existing rules as not to exceed $2,500,000. He then stated, +without hesitation, that it was practicable and advisable to double the +rate of duties, and to renew the old duty on salt. The sum acquired, +with this addition, he anticipated, would amount to $5,400,000.</p> + +<p>On the basis of annual loans of ten millions of dollars during the +continuance of the war (the sum assumed by the committee), the +deficiency for 1814 would amount, by Mr. Gallatin's estimate, to +$4,200,000. To produce a net revenue equal to this deficiency he stated +that the gross sum of taxes to be laid must be five millions of dollars. +He then reverted to his report of December 10,<span class='pagenum'><a name="Page_233" id="Page_233">[Pg 233]</a></span> 1808, in which he had +stated that “no internal taxes, either direct or indirect, were +contemplated, even in the case of hostilities carried on against the two +great belligerent powers.” The balance in the Treasury was then nearly +fourteen millions of dollars, but in view of the daily decrease of the +revenue he had recommended “that all the existing duties be doubled on +importations subsequent to the first day of January, 1809.” As the +revenues of 1809, 1810, and 1811 had yielded $26,000,000, the sum on +hand, with the increase thus recommended, would have reached +$20,000,000, a sum greater than the net amount of the proposed internal +taxes in four years.</p> + +<p>At that time no symptoms had appeared from which the absolute +dissolution of the Bank of the United States without any substitute +could have been anticipated. If its charters had been renewed, on the +conditions suggested by Mr. Gallatin, the necessity for internal taxes +would have been avoided. The resources of the country, properly applied, +however, were amply sufficient to meet the emergency; but Mr. Gallatin +distinctly threw upon Congress, and by implication upon the Republican +majority, the responsibility for the state of the Treasury, and the +imperative necessity for a form of taxation which it detested as +oppressive, and which it was a party shibboleth to declare in and out of +season, to be unconstitutional. The choice of the administration was +between the Bank which Jefferson detested and Gallatin<span class='pagenum'><a name="Page_234" id="Page_234">[Pg 234]</a></span> favored, and the +internal tax which Mr. Gallatin considered as the most repulsive in its +operation of any form of revenue.</p> + +<p>But necessity knows no law, and the prime mover, if not the original +author, of the opposition to Hamilton's system was driven to propose the +renewal of the measures, opposition to which had brought the Republican +party into power, and had placed himself at the head of the Treasury. He +now proposed to raise the five millions deficiency by internal +taxation—$3,000,000 by direct tax and $2,000,000 by indirect tax.</p> + +<p>Continuing his lucid and remarkable report with careful details of the +methods to be adopted, Gallatin closed with an urgent recommendation +that the crisis should at once be met by the adoption of efficient +measures to provide, with certainty, means commensurate with the +expense, and by preserving unimpaired, instead of abusing, that credit +on which the public resources eminently depend, to enable the United +States to persevere in the contest until an honorable peace should be +obtained. Thus he held the bitter cup to the lips of the Republican +Congress, which, however, was not yet to drain its full measure. War was +declared June 18, 1812. On July 1, 1812, an act was passed imposing an +additional duty of one hundred per cent. on all importations, an +additional ten per cent. on goods brought in foreign vessels, and also a +duty of $1.50 per ton on all foreign vessels. The duty was to remain +until the expira<span class='pagenum'><a name="Page_235" id="Page_235">[Pg 235]</a></span>tion of one year after peace should be made with Great +Britain. On December 5, 1812, Mr. Gallatin sent in his last report. The +balance in the treasury was $3,947,818. His estimate for the service of +the year 1813 was a war budget. Resources, $12,000,000; expenditures, +$31,926,000; promising a deficiency of $19,925,000. For this and other +contingencies Mr. Gallatin asked for a loan of twenty millions. The +authority was granted, but the recommendations of direct and indirect +taxes were disregarded. Here Mr. Gallatin's direct connection with the +customs system closed.</p> + +<p>The value of foreign importations during Madison's first term was +$275,230,000, and the customs derived from them thirty-eight millions of +dollars.</p> + +<hr style='width: 45%;' /> + +<p>Congress adjourned March 4, 1813, but was called together again in May, +when the subject of internal taxes was again forced upon them. The +internal revenue was a part of Hamilton's general scheme. His original +bill was passed, and, after numerous amendments suggested by trial, its +grievances were tempered and the friction removed. In Adams's term it +yielded nearly three millions of dollars. In Jefferson's first term, +before the rise in customs revenue allowed of its abandonment, Mr. +Gallatin drew from this source nearly two millions of dollars, enough to +pay the interest and provide for the extinguishment of a six per cent. +loan of thirty millions; a war budget in itself.<span class='pagenum'><a name="Page_236" id="Page_236">[Pg 236]</a></span> But it had been so +entirely set aside that in Jefferson's second term, 1808-1812, it had +fallen to a little over sixty-three thousand; in Madison's first term, +to a little under nineteen thousand dollars. Was it to this Mr. Dallas +referred in that passage of his report, made in 1815, on the financial +operations of the war, in which he expresses his regret “that there +existed no system by which the internal resources of the country could +be brought at once into action, when the resources of its external +commerce became incompetent to answer the exigencies of the time? The +existence of such a system would probably have invigorated the early +movements of the war, might have preserved the public credit unimpaired, +and would have rendered the pecuniary contributions of the people more +equal, as well as more effective.” “It certainly,” to use the words of +this Mr. Gallatin's oldest and best political friend, “furnishes a +lesson of practical policy.” Disagreeable as the necessity was, it could +not be avoided, and Mr. Gallatin met it manfully. Nay more, he seems to +have had a grim satisfaction in proposing the measure to the Congress +which had thwarted him in his plans. In accordance with his suggestions, +Congress, in the extra session of May, 1813, laid a direct tax of +$3,000,000 upon the States, and specific duties upon refined sugar, +carriages, licenses to distillers of spirituous liquors, sales at +auction, licenses to retailers of wines, and upon notes of banks and +bankers. These duties, in <span class='pagenum'><a name="Page_237" id="Page_237">[Pg 237]</a></span>the beginning temporary, were calculated to +yield $500,000, and with the direct tax to give a sum of $3,500,000. But +the increasing expenditures again requiring additional sums of revenue, +the duties were made permanent and additional taxes were laid; the +entire revenue for 1815 being raised so as to yield $12,400,000. In the +second term of Mr. Madison the internal revenue brought in nearly eleven +and a half millions. The Federalists, who as a party were opposed to the +war, enjoyed the situation; Mr. Gallatin was compelled to impose the +internal revenue tax which he detested, and Mr. Dallas was called upon +to enforce its application.</p> + +<h3><i>A. J. Dallas</i></h3> + +<p class="center"><a name="image-6" id="image-6"><!-- Image6 --></a> +<img src="images/illus-257-1.jpg" height="302" width="226" +alt="A. J. Dallas" /></p> + +<p class="center"><a name="image-7" id="image-7"><!-- Image 7 --></a> +<img src="images/illus-257-2.jpg" height="53" width="162" +alt="Signature of A. J. Dallas" /></p> + +<p class="center"><a href="#ILLUS">Click for list of Illustrations</a></p> + +<hr style='width: 45%;' /> + +<p>The only remaining source of revenue was the sale of public lands. This +also was a part of Hamilton's original scheme. The public lands of the +United States were acquired in three different ways, namely, 1, by +cessions from the States of such lands as they claimed, or were entitled +to by their original grants or charters from the crown, while colonies; +2, by purchase from Indian tribes; 3, by treaties with foreign +nations,—those of 1783 and 1794 with Great Britain, of 1795 with Spain, +and of 1803 with France. The need of bringing this vast territory under +the control of the government and disposing of it for settlement was +early apparent. In July, 1791, Hamilton sent in to the House a report on +"A uniform system for the disposition of the lands, the property of the<span class='pagenum'><a name="Page_238" id="Page_238">[Pg 238]</a></span> +United States." In March preceding, grants of the United States had +confirmed to the actual settlers in the Illinois country the possession +of their farms. But what with the Indian wars and the rebellion within +the United States, no action was taken by Congress to carry the +recommendations of the secretary into effect, until Mr. Gallatin, whose +residence on the frontier gave him direct interest in the subject, +brought up the matter at the very first session he attended. In 1796 a +bill was passed authorizing and regulating the sale of lands northwest +of the Ohio and above the mouth of the Kentucky River, and a +surveyor-general was appointed with directions to lay out these lands in +townships. The sales under Adams's administrations were trifling, the +total amount received from this source before the year 1800 being +slightly over one hundred thousand dollars. In May, 1800, sales of the +same lands were authorized at public vendue at not less than two dollars +per acre; four land offices were established in the territory; surveyors +were appointed, and a register of the land office was made a permanent +official. In March, 1803, an act was passed to regulate the sale of the +United States lands south of the Tennessee River, two land offices were +established and public sale provided for at the same price set in the +act of 1800. In March, 1804, the Indiana lands lying north of the Ohio +and east of the Mississippi were brought within similar regulations, and +an act was passed concerning the coun<span class='pagenum'><a name="Page_239" id="Page_239">[Pg 239]</a></span>try acquired under Spanish and +British grants. In the same month Louisiana was erected into two +territories. The sums received from the sales during the first term of +Jefferson's administration amounted to little more than one million of +dollars. In January, 1805, the territory of Indiana was divided into two +separate governments; that one which was set off received the name of +Michigan, and in 1808, its territory was brought under the regulations +of the land office.</p> + +<p>The sums received from the sales in the second term of Jefferson's +administration reached nearly two and one half millions of dollars, and +in Madison's first term, nearly three millions of dollars. From first to +last Mr. Gallatin never lost sight of the subject, though occasion did +not serve for more than organization of the system which, in the four +years ending 1836, yielded nearly fifty million dollars, and paid more +than one third of the entire expenses of the government. To John W. +Eppes<a name="FNanchor_18_18" id="FNanchor_18_18"></a><a href="#Footnote_18_18" class="fnanchor">[18]</a> Mr. Gallatin wrote in the crisis of 1813, “The public lands +constitute the only great national resource exclusive of loans and +taxes. They have already been mentioned as a fund for the ultimate +extinguishment of the public debt.” The land offices were then in full +operation.</p> + +<p>In 1810 Mr. Gallatin prepared an “Introduction to the collection of +laws, treaties, and other documents respecting the public lands,” which +was published pursuant to an act of Congress passed in April of that +year.<span class='pagenum'><a name="Page_240" id="Page_240">[Pg 240]</a></span></p> + +<h2><i>Free Trade</i></h2> + +<p>While Mr. Gallatin differed from his early Republican associates in many +of their theories of administration, he was a firm believer in the best +of their principles, namely, the wisdom of giving free scope to the +development of national resources with the least possible interference +on the part of government. One of his purposes in his persistent desire +for economy in expenditure was to reduce the tariff upon foreign +importations to the lowest practicable limit. He was the earliest public +advocate in America of the principles of free trade, and an experience +of sixty years confirmed him in his convictions.</p> + +<p>The extinguishment of the debt rendered a great reduction in the revenue +possible. On the other hand, it brought the friends of a low tariff face +to face with the problem of internal improvements. As the election of +1832 drew near, the advocates of the two systems ranged themselves in +two great parties precisely as to-day: the advocates of the protective +or American system with internal improvements as an outlet for +accumulations of revenue on the one side; on the other the advocates of +free trade. Between his desire for the advantages of the one with its +attendant disadvantages of government interference in its prosecution, +and the freedom of commerce from undue restrictions, Mr. Gallatin did +not hesitate. He threw the whole force of his experience and character +into<span class='pagenum'><a name="Page_241" id="Page_241">[Pg 241]</a></span> the free trade cause, and became the leader of its friends.</p> + +<p>On September 30, 1831, a convention of the advocates of free trade, +without distinction of party, met at the Musical Fund Hall in +Philadelphia. Two hundred and twelve delegates appeared. Among them were +Theodore Sedgwick, George Peabody, and John L. Gardner from +Massachusetts; Preserved Fish, John Constable, John A. Stevens, Jonathan +Goodhue, James Boorman, Jacob Lorillard, and Albert Gallatin from New +York; C. C. Biddle, George Emlen, Isaac W. Norris from Pennsylvania; +Langdon Cheves, Henry Middleton, Joseph W. Allston, and William C. +Preston from South Carolina; and men of equal distinction, bankers, +merchants, statesmen, and political economists from other States. Of +this convention Mr. Gallatin was the soul. He opened its business by +stating the objects of the meeting, and nominated the Hon. Philip P. +Barbour of Virginia for president. A general committee of two from each +State was appointed, which recommended an address to the people of the +United States and a memorial to Congress. The address to the people +closed with a declaration that the near extinguishment of the national +debt, which would be discharged by the available funds of the government +on January 1, 1833, suggested that the moment was propitious for the +establishment of the principles of free trade. Thus the people of the +United States, who had successfully asserted<span class='pagenum'><a name="Page_242" id="Page_242">[Pg 242]</a></span> the doctrines of free +government, might add to its claims upon the gratitude of the world by +being the first also to proclaim the theory of a free and unrestricted +commerce, the genuine “American system.” Mr. Gallatin was the chairman +of the committee of fourteen, one from each State represented in the +convention, to prepare the memorial which was presented in their behalf +to Congress, the conclusions of which, presented with his consummate +ability, demonstrated with mathematical precision that a duty of +twenty-five per cent. was sufficient for all the legitimate purposes of +government. Here he found himself in direct opposition to Mr. Clay, +whose political existence was staked upon the opposite theory. Mr. Clay +answered in a great speech in the Senate in February, 1832, and forgot +himself in personal denunciation of Mr. Gallatin as a foreigner with +European interests at heart, and of utopian ideas; for this he expressed +his regret to Mr. Gallatin in an interview arranged by mutual friends at +a much later period. Mr. Gallatin's views were accepted as the policy of +the country, and after some shifting of parties, in which friends and +foes changed ground in subordination to other political exigencies, they +prevailed in the tariff of 1846, the best arranged and most reasonable +which the United States has yet seen.</p> + +<p>It is certain that Mr. Gallatin was opposed to “protective” revenue. His +preference was for an “even” duty on all imports. This is not the place<span class='pagenum'><a name="Page_243" id="Page_243">[Pg 243]</a></span> +for an economic discussion. The true policy of the United States is +probably between the extremes of protection and free trade. The nature +of our population has been changed by the enormous immigration of the +last fifty years. Moreover, instead of an absolute freedom from debt the +nation has had to endure the legacy of debt left by the Civil War, to +meet which a development of all its resources of manufacture as well as +of agriculture is required.</p> + +<h2><i>Administration</i></h2> + +<p>To arrive at a correct estimate of Mr. Gallatin's administration of the +Treasury Department, a cursory review of the establishment as he +received it from the hands of Mr. Wolcott is necessary. This review is +confined to administration in its limited sense, namely, the direction +of its clerical management under the provisions of statute law. The +organization of the department as originated by Hamilton and established +by the act of September 2, 1789, provided for a secretary of the +treasury as head of the department, whose general duty should be to +supervise the fiscal affairs of the country, and particularly to suggest +and prepare plans for the improvement and support of the public credit; +and, under his direction and supervision, a comptroller to adjust and +preserve accounts; an auditor to receive, examine, and rectify accounts; +a treasurer to receive, keep, and disburse moneys on warrants signed and +coun<span class='pagenum'><a name="Page_244" id="Page_244">[Pg 244]</a></span>tersigned; a register to keep the accounts of receipts and +expenditures; and an assistant to the secretary of the treasury to fill +any vacancy from absence or other temporary cause. In addition to the +departments of State, Treasury, and War, a fourth, that of the Navy, was +established April 30, 1798. The three departments were brought into +relation with that of the Treasury by an act passed July 16, 1798, +supplementary to that organizing the Treasury, and which provided, 1st, +for the appointment of an accountant in each department, who was +required to report to the accounting officer of the Treasury; 2d, that +the Treasurer of the United States should only disburse by warrants on +the Treasury, countersigned by the accountant of the Treasury; 3d, that +all purchases for supplies for military or naval service should be +subject to the inspection and revision of the officers of the Treasury. +Mr. Jefferson, after his usual fashion of economy in the wrong +direction, proposed to Mr. Gallatin “to amalgamate the comptroller and +auditor into one, and reduce the register to a clerk of accounts: so +that the organization should consist, as it should at first, of a keeper +of money, a keeper of accounts, and the head of the department.” But in +the Treasury Department there was no extravagance during Gallatin's +administration, and the shifting of responsibility would bring no saving +of salaries.</p> + +<p>In May, 1800, an act was passed making it "the<span class='pagenum'><a name="Page_245" id="Page_245">[Pg 245]</a></span> duty of the secretary of +the treasury to digest, prepare, and lay before Congress at the +commencement of every session a report on the subject of finances, +containing estimates of the public revenue and expenditures, and plans +for improving and increasing the revenue from time to time, for the +purpose of giving information to Congress in adopting modes for raising +the money requisite to meet the expenditures." Hamilton had never sent +in any other than a statement of expenditure for the past fiscal year, +together with the estimate of the accountant of the Treasury for the +proximate wants of the departments of government. Mr. Gallatin +incorporated in his annual report a balance sheet in accordance with the +ordinary forms of book-keeping familiar to every accountant and +indispensable in every business establishment, and such as is presented +to the public in the monthly and annual statements of the Treasury +Department at this day.</p> + +<p>The statutes show no legislation during Mr. Gallatin's period of +administration, and to its close he was in continual struggle to force +upon Congress and the departments an accord with his pet plan of minute +specific appropriation of the sums estimated for and expended by each. +Mr. Madison heartily agreed with Mr. Gallatin on this subject, and on +taking office placed the relations of the State Department upon the +desired footing. But the heads of the Army and Navy were never willing +to consent to the strict limitation which<span class='pagenum'><a name="Page_246" id="Page_246">[Pg 246]</a></span> Mr. Gallatin would have +imposed on their expenditures. In his notes to Jefferson for the draft +of his first message in 1801, Mr. Gallatin said that the most important +reform he could suggest was that of 'specific appropriations,' and he +inclosed an outline of a form to be enforced in detail. In January, +1802, he sent to Joseph H. Nicholson a series of inquiries to be +addressed to himself by a special committee on the subject, with regard +to the mode by which money was drawn from the Treasury and the situation +of accounts between that department and those of the Army and Navy. To +these questions he sent in to the House an elaborate reply, which he +intended to be the basis of legislation. Strict appropriation was the +ideal at which he aimed, and this word was so often on his tongue or in +his messages that it could not be mentioned without a suggestion of his +personality. He carried the same nicety of detail into his domestic +life. He managed his own household expenses, and at a time when +bountiful stores were the fashion in every household he insisted on a +rigid observance of the more precise French system. He made an +appropriation of a certain sum each day for his expenses, and required +from his purveyor a strict daily account of disbursements. An amusing +story is told of him at his own table. On an occasion when entertaining +a company at dinner, he was dissatisfied with the menu and expressed his +disapprobation to his maître d'hôtel, a Frenchman, who<span class='pagenum'><a name="Page_247" id="Page_247">[Pg 247]</a></span> replied to him +in broken English, that it was not his fault, but that of the +“mal-appropriations.”</p> + +<p>The example set by Mr. Gallatin in this particular was never forgotten, +and from his day to this strict accountability has been the tradition of +the Treasury Department, now greatly increased in detail, but in +structure essentially as it was originally organized. Of its management +Mr. Sherman was able to say in his report of December 1, 1879, "The +organization of the several bureaus is such, and the system of +accounting so perfect, that the financial transactions of the government +during the past two years, aggregating $3,354,345,040, have been +adjusted without question with the exception of a few small balances, +now in the process of collection, of which it is believed that the +government will eventually lose less than $13,000, or less than four +mills for each $1000 of the amount involved;" and in 1880 he said with +entire truth, “The department is a well organized and well conducted +business office, depending mainly for its success upon the integrity and +fidelity of the heads of bureaus and chiefs of divisions.”</p> + +<h2><i>Banking</i></h2> + +<p>There is no more instructive chapter in the history of finance than that +upon the banking system of the United States. It has its distinct eras +of radical change, each of which presents a series of tentative +experiments. The outcome, by a process of development, in which +political expediency has<span class='pagenum'><a name="Page_248" id="Page_248">[Pg 248]</a></span> been as effective an agency as financial +necessity, is the present national banking system. Though the term +“government,” or “national,” bank is constantly used in reference to the +great banking institutions of England, France, and the United States, no +one of these is in the true sense of the word a national bank. The Bank +of England is a chartered corporation, the Bank of France an association +instituted by law. The Bank of North America, and the Bank of the United +States which followed it, were founded on the same principle. Both were +corporations of individuals intimately connected with the government, +enjoying certain privileges accorded and being under certain +restrictions, but otherwise independent of government control.</p> + +<p>The Bank of North America, the first bank established in the United +States, was also the first which had any direct relation to the +government. It was the conception of the comprehensive and original mind +of Robert Morris, the financier or superintendent of the public finances +of the United States. Its purpose was not the convenience or profit of +individuals, but to draw together the scattered financial resources of +the country and found a public credit. He submitted his plan to +Congress, which adopted a resolution of approval May 26, 1781. The +original plan contemplated a capital of ten millions of dollars; but the +collection of such a sum in gold and silver in one depository was beyond +the range of possibility at that period,<span class='pagenum'><a name="Page_249" id="Page_249">[Pg 249]</a></span> and the capital was finally +fixed at four hundred thousand dollars, in one thousand shares of four +hundred dollars each. Subscription books were immediately opened, but +not more than $70,000 was entered during the summer months. The arrival +at Boston of a French war frigate with a remittance of $470,000 in +specie, which was brought to Philadelphia and deposited in the vaults of +the bank, enabled Mr. Morris to mature his plans. He designed to retain +this sum in the bank as a specie basis; but the necessities of the +country were so urgent during the critical season of the Yorktown +campaign, that nearly one half of it was exhausted before an +organization could be effected. In December Congress passed an ordinance +of incorporation. Mr. Morris then subscribed the specie remaining in the +Treasury, about $254,000, for shares for account of the United States, +which became thereby the principal stockholder. The limit assigned by +the ordinance remained, however, at ten millions of dollars. There was +nothing in the acts of Congress which implied any exclusive right of the +United States government in the bank except during the war of the +Revolution. A local charter was obtained from the legislature of +Pennsylvania, and the bank was opened in Philadelphia for the +transaction of business in January, 1782. Its services to the government +during the period of the war were inestimable. In the words of Hamilton, +“American independence owes much to it.” But after the<span class='pagenum'><a name="Page_250" id="Page_250">[Pg 250]</a></span> war such were +the local jealousies, the fears of oppression, and the dread of foreign +influence, that, on the petition of the inhabitants of Philadelphia and +some of the neighboring counties, the legislature of Pennsylvania +repealed its charter on September 13, 1785. The bank continued its +operations, however, under the charter from Congress. On March 17, 1787, +the legislature of Pennsylvania renewed the charter for fourteen years +and limited the capital to two millions of dollars. The charter was +extended for a similar term of fourteen years on March 26, 1799. Thus in +the beginning of the American banking system are found that distrust and +jealousy of money power which seem inherent in democracies. The exercise +of state jurisdiction over the existence of the Bank of North America +suggested possible embarrassments, which could not escape the +discernment of Hamilton, whose policy, as it was also that of the +Federal party, was to strengthen the powers of the government in every +vital branch of administration.</p> + +<hr style='width: 45%;' /> + +<p>In his comprehensive plan of government Hamilton included a financial +institution to develop the national resources, strengthen the public +credit, aid the Treasury Department in its administration, and provide a +secure and sound circulating medium for the people. On December 13, +1790, he sent in to Congress a report on the subject of a national bank. +The Republican party, then in the minor<span class='pagenum'><a name="Page_251" id="Page_251">[Pg 251]</a></span>ity, opposed the plan as +unconstitutional, on the ground that the power of creating banks or any +corporate body had not been expressly delegated to Congress, and was +therefore not possessed by it. Washington's cabinet was divided; +Jefferson opposing the measure as not within the implied powers, because +it was an expediency and not a paramount necessity. Later he used +stronger language, and denounced the institution as “one of the most +deadly hostility existing against the principles and form of our +Constitution,” nor did he ever abandon these views. There is the +authority of Mr. Gallatin for saying that Jefferson “died a decided +enemy to our banking system generally, and specially to a bank of the +United States.” But Hamilton's views prevailed. Washington, who in the +weary years of war had seen the imperative necessity of some national +organization of the finances, after mature deliberation approved the +plan, and on February 25, 1791, the Bank of the United States was +incorporated. The capital stock was limited to twenty-five thousand +shares of four hundred dollars each, or ten millions of dollars, payable +one fourth in gold and silver, and three fourths in public securities +bearing an interest of six and three per cent. The stock was immediately +subscribed for, the government taking five thousand shares, two millions +of dollars, under the right reserved in the charter. The subscription of +the United States was paid in ten equal annual installments. A large +proportion of the<span class='pagenum'><a name="Page_252" id="Page_252">[Pg 252]</a></span> stock was held abroad, and the shares soon rose above +par. By an act of March 2, 1791, the funded three per cents. were also +made receivable in payment of subscriptions to the bank, whence it has +been said that out of the funding system sprung the bank, as three +fourths of its capital consisted of public stocks. Authority was given +the bank to establish offices of discount and deposit within the United +States. The chief bank was placed in Philadelphia, and branches were +established in eight cities, with capitals in proportion to their +commercial importance.</p> + +<p>In 1809 the stockholders of the Bank of the United States memorialized +the government for a renewal of their charter, which would expire on +March 4, 1811; and on March 9, 1809, Mr. Gallatin sent in a report in +which he reviewed the operations of the bank from its organization. Of +the government shares, five million dollars at par, two thousand four +hundred and ninety-three shares were sold in 1796 and 1797 at an advance +of 25 per cent., two hundred and eighty-seven in 1797 at an advance of +20 per cent., and the remaining 2220 shares in 1802, at an advance of 45 +per cent., making together, exclusive of the dividends, a profit of +$671,680 to the United States. Eighteen thousand shares of the bank +stock were held abroad, and seven thousand shares, or a little more than +one fourth part of the capital, in the United States. A table of all the +dividends made by the bank showed that they had on the<span class='pagenum'><a name="Page_253" id="Page_253">[Pg 253]</a></span> average been at +the rate of 8-3/8 (precisely 8-13/34) per cent. a year, which proved +that the bank had not in any considerable degree used the public +deposits for the purpose of extending its discounts. From a general view +of the debits and credits, as presented, it appeared that the affairs of +the Bank of the United States, considered as a moneyed institution, had +been wisely and skillfully managed. The advantages derived by the +government Mr. Gallatin stated to be, 1, safekeeping of the public +moneys; 2, transmission of the public moneys; 3, collection of the +revenue; 4, loans. The strongest objection to the renewal of the charter +lay in the great portion of the bank stock held by foreigners. Not on +account of any influence over the institution, since they had no vote; +but because of the high rate of interest payable by America to foreign +countries. If the charter were not renewed the principal of that +portion, amounting to $7,200,000, must at once be remitted abroad; but +if the charter were renewed, dividends equal to an interest of about +8-1/2 per cent. per annum must be remitted. Mr. Gallatin's report closed +with the following suggestions:—</p> + +<p>I. That the bank should pay an interest to the United States on the +public deposits above a certain sum.</p> + +<p>II. That it should be bound to lend the United States a sum not +exceeding three fifths of its capital.</p> + +<p>III. That the capital stock of the bank should<span class='pagenum'><a name="Page_254" id="Page_254">[Pg 254]</a></span> be increased to thirty +millions of dollars, to be subscribed for, 1, five millions by citizens +of the United States; 2, fifteen millions by the States; a branch to be +established in each subscribing State; 3, payments by either individuals +or States to be in specie or public stock of the United States at rates +to be fixed by law; the subscribing States to pay in ten annual +installments.</p> + +<p>IV. That some share should be given in the direction to the general and +state governments by appointment of directors in the general direction +and branches.</p> + +<p>The result of this plan would be, 1st, that the United States might, +from the interest on the public deposits, accumulate during years of +peace and prosperity a treasure sufficient to meet periods of war and +calamity; 2d, that they might rely on a loan of eighteen millions of +dollars in any sudden emergency; 3d, that by the payment in ten +installments the increase in capital would be in proportion to the +progressive state of the country; 4th, that the bank itself would form +an additional bond of common interest and union amongst the several +States. But these arguments availed not against the blind and ignorant +jealousy of the Republican majority in the House. The days of the bank +were numbered. Congress refused to prolong its existence, and the +institution was dissolved. Fortunately for the country, it wound up its +affairs with such deliberation and prudence as to allow of the +interposition of other bank credits<span class='pagenum'><a name="Page_255" id="Page_255">[Pg 255]</a></span> in lieu of those withdrawn, and +thus prevented a serious shock to the interests of the community. In the +twenty years of its existence from 1791 to 1811 its management was +irreproachable. Its annual dividends from 1791 to 1809 were 8-2/3 per +cent., and its stock, always above par, from 1805 to 1809 ranged from 20 +to 40 per cent. premium.</p> + +<p>In its numerous and varied relations to the government it had been a +useful and faithful servant, and its directors had never assumed the +attitude of money kings, of which the Jeffersonian democracy pretended +to stand in hourly dread. To the general and important nature of its +financial service Mr. Gallatin gave his testimony in 1830; after his own +direct participation in public affairs had ended.</p> + +<div class="blockquot"><p>“Experience, however, has since confirmed the great utility and +importance of a bank of the United States in its connection with +the Treasury. The first great advantage derived from it consists in +the safekeeping of the public moneys, securing in the first +instance the immediate payment of those received by the principal +collectors, and affording a constant check on all their +transactions; and afterwards rendering a defalcation in the moneys +once paid, and whilst nominally in the treasury, absolutely +impossible. The next, and not less important, benefit is to be +found in the perfect facility with which all the public payments +are made by checks or treasury drafts, payable at any place where +the bank has an office; all those who have demands against +government are paid in the place most convenient to them;<span class='pagenum'><a name="Page_256" id="Page_256">[Pg 256]</a></span> and the +public moneys are transferred through our extensive territory at a +moment's warning without any risk or expense, to the places most +remote from those of collection, and wherever public exigencies may +require.”</p></div> + +<p>Late in life, in a letter to John M. Botts, June 14, 1841, Mr. Gallatin +expressed the same opinions with regard to the usefulness of a +government bank as an aid to the Treasury Department, but limited his +approval to that use. “Except in its character of fiscal agent to the +general government I attach much less importance to a national bank than +several of those who are in favor of it.” “Did I believe,” he adds in +the same letter, “that a bank of the United States would effectually +secure us a sound currency, I would think it a duty at all hazards to +promote the object.”</p> + +<p>The reason for his doubts in 1841 is easily seen in the impossibility of +annihilating or controlling the three hundred distinct currencies of as +many banks, each nominally convertible into specie at its point of +issue; a financial puzzle which Mr. Chase solved in the device and +organization of the present national banking system, which, without +involving the government in banking operations, affords to the people a +homogeneous currency of uniform value, and secures its convertibility by +reasonable but absolute restrictions, upon conformity to which the +existence of the banks depends. The exigencies of war compelled an +acquiescence in the plans of Mr. Chase, which, at the time when Mr. +Gallatin expressed his doubts, could<span class='pagenum'><a name="Page_257" id="Page_257">[Pg 257]</a></span> not have been had in any system +whatever which involved the subordination of the banks.</p> + +<p>The wide spread of the state bank system, with its irresponsible and +unlimited issues, occurring subsequent to Mr. Gallatin's withdrawal from +the Treasury, was a consequence of the failure to renew the charter of +the Bank of the United States; and if ever there were a system by which +the inhabitants of States whose floating capital was small were placed +at the mercy of moneyed corporations of the States where it was +abundant, it was the state bank system. The experience of the old +confederation had not taught this lesson. The colonial system was +continued by the several States, and bills of credit were issued on +their faith. The continental system was a compound of the main features +of this plan. The bills were issued by the Congress, but the States were +relied upon for their ultimate redemption.</p> + +<p>The collapse of the entire fabric of finance led to the establishment of +the Bank of North America, the notes of which were redeemable and +redeemed at the bank counters. The article in the Constitution of 1787, +prohibiting the issue of bills of credit by the States, was evidently +intended to secure a uniform currency to the people of the United +States, and it has been by a strange perversion of this manifest +intention that the power has been conceded to the States to charter +corporations to do that which was forbidden to themselves in their +sovereign capacity; namely, to issue bills<span class='pagenum'><a name="Page_258" id="Page_258">[Pg 258]</a></span> of credit, which bank-notes +are. It is idle to say that, because such bills were not a “legal +tender,” they were therefore not of the character which the Constitution +forbade. Necessity knows no law, and in the absence of any other +currency the people were perforce compelled to take what they could get. +Experience later showed that large amounts of paper money manufactured +in one State were easily put in circulation in far distant communities, +and considerable sums, through the operations of wear and tear and the +vicissitudes incident to its fragile nature, never returned to plague +the inventor.</p> + +<p>At the time of the organization of the National Bank by Hamilton, there +were but three banks in the United States: the Bank of North America, +the Bank of New York, and the Bank of Massachusetts. Their added capital +amounted to two millions of dollars, and their issues were +inconsiderable.</p> + +<p>Mr. Gallatin estimated that in January, 1811, just before the expiration +of the bank charter, there were in the United States eighty-eight state +banks with a capital of $42,612,000.</p> + +<div class="centered"> +<table border="0" cellpadding="2" cellspacing="0" width="75%" summary="Budget figures" style="border: 1pt black solid; font-size: 80%;"> + <tr> + <td class="tdc" style="width: 40%; border: 1pt black solid;"> </td> + <td class="tdc" style="width: 20%; border: 1pt black solid;">Capital.</td> + <td class="tdc" style="width: 20%; border: 1pt black solid;">Notes in Circulation.</td> + <td class="tdc" style="width: 20%; border: 1pt black solid;">Specie.</td> + </tr> + <tr> + <td class="tdl stylet">Bank of the United<br /> States</td> + <td class="tdr stylet">$10,000,000</td> + <td class="tdr stylet">$5,400,000</td> + <td class="tdr stylet">$5,800,000</td> + </tr> + <tr> + <td class="tdl styleb">Eighty-eight state banks</td> + <td class="tdr styleb">42,610,601</td> + <td class="tdr styleb">22,700,000</td> + <td class="tdr styleb">9,600,000</td> + </tr> + <tr> + <td class="tdl" style="border: 1pt black solid;"> </td> + <td class="tdr" style="border: 1pt black solid;">52,610,601</td> + <td class="tdr" style="border: 1pt black solid;">28,100,000</td> + <td class="tdr" style="border: 1pt black solid;">15,400,000</td> + </tr> +</table> +</div> + +<span class='pagenum'><a name="Page_259" id="Page_259">[Pg 259]</a></span><p>Over the local institutions the Bank of the United States always +exercised a salutary control, checking any disposition to overtrade by +restraining their issues and holding them to a proper specie reserve; +and this by no other interference except its countenance or ill favor, +as such banks severally observed or disregarded the ordinary rules of +financial prudence. The immediate effect of the refusal of Congress to +recharter the Bank of the United States was to bring the Treasury to the +verge of bankruptcy. The interference of Parish, Girard, and Astor alone +saved the credit of the government, and this interference was no doubt +prompted by self-interest. That Mr. Astor was hostile to the bank is +certain. Gallatin wrote to Madison in January, 1811, that Mr. Astor had +sent him a verbal message, “that in case of non-renewal of the charter +of the Bank of the United States, all his funds and those of his +friends, to the amount of two millions of dollars, would be at the +command of government, either in importing specie, circulating +government paper, or in any other way best calculated to prevent any +injury arising from the dissolution of the bank,” and he added that Mr. +Bentson, Mr. Astor's son-in-law, in communicating this message said, +“that in this instance profit was not Mr. Astor's object, and that he +would go great lengths, partly from pride and partly from wish, to see +the bank down.” In 1813, when the bank was “down,” Mr. Gallatin was no +longer master of the situation. He offered<span class='pagenum'><a name="Page_260" id="Page_260">[Pg 260]</a></span> to treat directly with +Parish, Girard, and Astor for ten millions of dollars, but finding some +hesitation, he opened the loan for subscription. When the subscription +failed, he was at the mercy of the capitalists.</p> + +<p>Another immediate effect of the dissolution of the bank was the +withdrawal from the country of the foreign capital invested in the bank, +more than seven millions of dollars. This amount was remitted, in the +twelve months preceding the war, in specie. Specie was at that time a +product foreign to the United States, and by no means easy to obtain. +Specie, as Mr. Gallatin profoundly observed, does not precede, but +follows wealth. The want of it nearly destroyed Morris's original plan +for the Bank of North America, and was only made up by the fortunate +receipt of the French remittances. In 1808 the specie in the vaults of +the treasury reached fourteen millions of dollars, but during the +operation of the Embargo Act, the banks of New England had gradually +accumulated a specie reserve, and that of Richmond, Virginia, pursued +the same policy. Together they held one third of the entire specie +reserve of the banks. The amount of specie in the Bank of the United +States, January 1, 1811, had fallen to $5,800,000, which soon found its +way abroad.</p> + +<p>The notes of the Bank of the United States, payable on demand in gold +and silver at the coun<span class='pagenum'><a name="Page_261" id="Page_261">[Pg 261]</a></span>ters of the bank, or any of its branches, were, +by its charter, receivable in all payments to the United States; but +this quality was also stripped from them on March 19, 1812, by a repeal +of the act according it. To these disturbances of the financial +equilibrium of the country was added the necessary withdrawal of fifteen +millions of bank credit and its transfer to other institutions. This +gave an extraordinary impulse to the establishment of local banks, each +eager for a share of the profits. The capital of the country, instead of +being concentrated, was dissipated. Between January 1, 1811, and 1815, +one hundred and twenty new banks were chartered, and forty millions of +dollars were added to the banking capital. To realize profits, the +issues of paper were pushed to the extreme of possible circulation. +Meanwhile New England kept aloof from the nation. The specie in the +vaults of the banks of Massachusetts rose from $1,706,000 on June 1, +1811, to $7,326,000 on June 1, 1814. This was a consequence of the New +England policy of opposition. Mr. Gallatin estimated that the proceeds +of loans, exclusive of treasury notes and temporary loans, paid into the +treasury from the commencement of the war to the end of the year 1814 +were $41,010,000: of which sum the Eastern States lent $2,900,000; the +Middle States, $35,790,000; Southwestern States, $2,320,000.</p> + +<p>The floating debt of the United States, consist<span class='pagenum'><a name="Page_262" id="Page_262">[Pg 262]</a></span>ing of treasury notes +and temporary loans unpaid, amounted, January 1, 1815, to $11,250,000, +of which nearly four fifths were loaned by the cities of New York, +Philadelphia, and Baltimore, and the District of Columbia. The +suspension of the banks was precipitated by the capture of Washington. +It began in Baltimore, which was threatened by the British, and was at +once followed in Philadelphia and New York. Before the end of September +all the banks south and west of New England had suspended specie +payment. In his “Considerations on the Currency,” Mr. Gallatin expressed +his—</p> + +<div class="blockquot"><p>“deliberate opinion that the suspension might have been prevented +at the time when it took place, had the Bank of the United States +been in existence. The exaggerated increase of state banks, +occasioned by the dissolution of that institution, would not have +occurred. That bank would <i>as before</i> have restrained them within +proper bounds and checked their issues, and through the means of +its offices it would have been in possession of the earliest +symptoms of the approaching danger. It would have put the Treasury +Department on its guard; both, acting in concert, would certainly +have been able, at least, to retard the event; and as the treaty of +peace was ratified within less than six months after the suspension +took place, that catastrophe would have been avoided.”</p></div> + +<p>But within fifteen months the bank issues increased from forty-five and +a half to sixty millions.<span class='pagenum'><a name="Page_263" id="Page_263">[Pg 263]</a></span></p> + +<div class="centered"> +<table border="0" cellpadding="2" cellspacing="0" width="75%" summary="Budget figures" style="border: 1pt black solid; font-size: 80%;"> + <tr> + <td class="tdc" style="width: 40%; border: 1pt black solid;"> </td> + <td class="tdc" style="width: 20%; border: 1pt black solid;">Capital.</td> + <td class="tdc" style="width: 20%; border: 1pt black solid;">Circulation.</td> + <td class="tdc" style="width: 20%; border: 1pt black solid;">Specie.</td> + </tr> + <tr> + <td class="tdl stylet">Banks of New England</td> + <td class="tdr stylet">15,690,000</td> + <td class="tdr stylet">$5,320,000</td> + <td class="tdr stylet">$8,200,000</td> + </tr> + <tr> + <td class="tdl styleb">Other Banks</td> + <td class="tdr styleb">66,930,000</td> + <td class="tdr styleb">44,730,000</td> + <td class="tdr styleb">8,600,000</td> + </tr> + <tr> + <td class="tdl stylet">1815. 208 State Banks</td> + <td class="tdr stylet">$82,620,000</td> + <td class="tdr stylet">$50,050,000</td> + <td class="tdr stylet">$16,800,000</td> + </tr> + <tr> + <td class="tdl styleb">1816. 246 State Banks</td> + <td class="tdr styleb">$89,822,422</td> + <td class="tdr styleb">68,000,000</td> + <td class="tdr styleb">19,000,000</td> + </tr> +</table> +</div> + +<p>The depression of the local currencies ranged from seven to twenty-five +per cent. In New York and Charleston it was seven to ten per cent. below +the par of coin. At Philadelphia from seventeen to eighteen per cent. At +Washington and Baltimore from twenty to twenty-two, and at Pittsburgh +and on the frontier, twenty-five per cent. below par. The circulating +medium, or measure of values, being doubled, the price of commodities +was doubled. The agiotage, of course, was the profit of the bankers and +brokers; a sum estimated at six millions of dollars a year, or ten per +cent. on the exchanges of the country, which McDuffie, in his celebrated +report, estimated at sixty millions annually.</p> + +<p>In November the Treasury Department found itself involved in the common +disaster. The refusal of the banks, in which the public moneys were +deposited, to pay their notes or the drafts upon them in specie deprived +the government of its gold and silver; and their refusal, likewise, of +credit and circulation to the issues of banks in other States deprived +the government also of the<span class='pagenum'><a name="Page_264" id="Page_264">[Pg 264]</a></span> only means it possessed for transferring its +funds to pay the dividends on the debt and discharge the treasury notes. +Mr. Dallas found himself compelled to appeal to the banks by circular to +subscribe for sufficient treasury notes to secure them such advances as +might be asked of them for the discharge of the public obligations.</p> + +<p>“In the latter end of the year 1814,” says Mr. Gallatin, “Mr. Jefferson +suggested the propriety of a gradual issue by government of two hundred +millions of dollars in paper;” commenting upon which Mr. Gallatin +remarks that Mr. Jefferson, from the imperfect data in his possession, +“greatly overrated the amount of paper currency which could be sustained +at par; and he had, on the other hand, underrated the great expenses of +the war;” but at “all events,” he adds, “the issue of government paper +ought to be kept in reserve for extraordinary circumstances.” But here +it may be remarked that the evolution of the systems of American finance +seems to lead slowly but surely to an entire divorce of banking from +currency, and the day is not far distant when the circulating medium of +the United States will consist of gold and silver, and of government +issues restricted, according to the English principle, to the minimum of +circulation, and kept equivalent to coin by a specie reserve in the +treasury; while the banks, their circulation withdrawn and the +institutions freed from any tax, will be confined to their legitimate +business of receiving deposits and making loans and discounts.<span class='pagenum'><a name="Page_265" id="Page_265">[Pg 265]</a></span></p> + +<p>On October 14, 1814, Alexander J. Dallas, Mr. Gallatin's old friend, who +had been appointed secretary of the treasury on the 6th of the same +month, in a report of a plan to support the public credit, proposed the +incorporation of a national bank. A bill was passed by Congress, but +returned to it by Madison with his veto on January 15, 1815. In this +peculiar document Madison “waived the question of the constitutional +authority of the legislature to establish an incorporated bank, as being +precluded, in his judgment, by repeated recognitions, under varied +circumstances, of the validity of such an institution in acts of the +legislative, executive, and judicial branches of the government.” But he +objected for reasons of detail. Mr. Dallas again, as a last resort, +insisted on a bank as the only means by which the currency of the +country could be restored to a sound condition. In December, 1815, +Dallas reported to the committee of the House of Representatives on the +national currency, of which John C. Calhoun was chairman, a plan for a +national bank, and on March 3, 1816, the second Bank of the United +States was chartered by Congress. The capital was thirty-five millions, +of which the government held seven millions in seventy thousand shares +of one hundred dollars each. Mr. Madison approved the bill. This +completed the abandonment of every shred of principle claimed by the +Republican party as their rule of action. They struggled through the +rest of their existence without a politi<span class='pagenum'><a name="Page_266" id="Page_266">[Pg 266]</a></span>cal conviction. The national +bank, and the system of internal taxation which had been scorned by +Jefferson and Madison as unconstitutional, were accepted actually under +Madison's administration. Gallatin's success, owing to the development +and application of Hamilton's plans, was a complete vindication of the +theory and practice of the Federalists which they abhorred; Jefferson's +plan of a government issue of paper money was a higher flight into the +upper atmosphere of implied powers than Hamilton ever dreamed of.</p> + +<p>The second national bank of the United States was also located at +Philadelphia, and chartered for twenty years. The manner in which it +performed its financial service is admirably set forth in Mr. Gallatin's +“Considerations on the Currency,” already mentioned. It acted as a +regulator upon the state banks, checked excessive issues on their part, +and brought the paper currency of the country down from sixty-six to +less than forty millions, before the year 1820.</p> + +<p>In April, 1816, Mr. Dallas having signified his intention to resign the +Treasury, Mr. Madison wrote to Gallatin, offering him his choice between +the mission to France and the Treasury Department. Mr. Gallatin's reply +was characteristic. He declined the Treasury, but with reluctance, since +he thought he would be more useful at home than abroad, and because he +preferred to be in America rather than in Europe. One of his +preponderating reasons was that, although he felt<span class='pagenum'><a name="Page_267" id="Page_267">[Pg 267]</a></span> himself competent to +the higher duties of the office, there was, for what he conceived “a +proper management of the Treasury, a necessity for a mass of mechanical +labor connected with details, forms, calculating, etc., which having +lost sight of the thread and routine, he could not think of again +learning and going through.” He was aware that there was “much confusion +due to the changes of office and the state of the currency, and thought +that an active young man could alone reinstate and direct properly that +department.”</p> + +<p>In June of the same year, while waiting for the Peacock, which was to +carry him across the sea, Gallatin wrote Mr. Madison an urgent letter, +impressing upon him the necessity of restoring specie payment, and his +perfect conviction that nothing but the will of the government was +wanted to reinstate the country in its moral character in that respect. +He dreaded the “paper taint,” which he found spreading as he journeyed +northward.</p> + +<p>In January 1817, delegates from the banks of New York, Philadelphia, +Baltimore and Virginia met in Philadelphia and agreed to a general and +simultaneous resumption of specie payments. The Bank of the United +States proposed a compact which was accepted by the state banks and +ratified by the secretary of the treasury. That institution engaged, to +a reasonable extent, to support any bank menaced. This engagement and +the importation of seven millions of specie from abroad by the Bank of +the United States secured a general<span class='pagenum'><a name="Page_268" id="Page_268">[Pg 268]</a></span> restoration of specie payment. In +1822 Mr. Gallatin was tendered and declined the office of president of +the Bank of the United States.</p> + +<p>In 1829 he prepared for Mr. Ingham, then secretary of the treasury, a +masterly statement of the relative value of gold and silver. In 1830 Mr. +Gallatin wrote for the “American Quarterly Review” his essay, +“Considerations on the Currency and Banking System of the United +States.” Appearing at the time when the renewal of the charter of the +Bank of the United States was an absorbing question, this essay was +equally sought for by both the friends and opponents of the bank. It is +not confined, however, to this subject, but covers the entire field of +American finance. His treatment of the currency question was novel. He +analyzed the systems of Europe, compared them with those which prevailed +in the United States, and reached the conclusion, the general +correctness of which has been justified by the experience of all other +nations, and sooner or later will be accepted by our own; namely, the +necessity of a currency strong in the precious metals, and the +restriction of paper money to notes of one hundred dollars to be issued +by the government. This limit is higher than that adopted in France and +England, but the general principle that a circulating medium is sound +only as it is strong in gold and silver, and that gold and silver can +only be retained permanently by making a place for them in the +circulating medium by a restriction of paper<span class='pagenum'><a name="Page_269" id="Page_269">[Pg 269]</a></span> issues, will yet find +favor even in this paper-loving country.</p> + +<p>In 1832 Mr. Gallatin accepted the presidency of a bank in New York, the +subscription to the stock of which, $750,000, was completed by Mr. John +Jacob Astor on condition that Mr. Gallatin should manage its affairs. +The direction of its concerns, without absorbing his time, kept him in +the financial current. The bank was called the National Bank of New +York. But not in this modest post was he to find the financial path +smooth. It is true he had lived in the flesh to see the financial +millennium. The rapid growth of the country and the faithful adherence +of his successors in the Treasury Department to the funding principle +had at last realized his dream. The national debt was extinguished. The +last dollar was paid. Louis McLane, secretary of the treasury, on +December 5, 1832, in his report on the finances, said that the dividends +derived from the bank shares held by the United States were more than +was required to pay the interest, and that the <i>debt</i> might therefore be +considered as substantially extinguished after January 1, 1833.</p> + +<p>On December 3, 1833, Roger B. Taney, secretary of the treasury, reported +to Congress that he had directed the removal of the deposits of the +government from the Bank of the United States and placed them in banks +of his own selection. He gave a number of reasons for this extraordinary +exercise of the power which he obtained by<span class='pagenum'><a name="Page_270" id="Page_270">[Pg 270]</a></span> his appointment on September +23, 1833. He received his reward in June, 1834, being then transferred +by President Jackson to the seat of chief justice of the Supreme Court. +In his annual report Taney named, among his elaborate reasons for the +removal, that the bank had used its money for electioneering purposes, +and that he “had always regarded the result of the last election of +President of the United States as the declaration of a majority of the +people that the charter ought not to be renewed.” He further expressed +the opinion “that a corporation of that description was not necessary +either for the fiscal operations of the government or the general +convenience of the people.” It mattered little to him that Mr. Gallatin +had only recently pointed out that from the year 1791 the operations of +the Treasury had, without interruption, been carried on through the +medium of banks; during the years 1811 to 1814, by the state banks, with +a result which no one had as yet forgotten; before and since that brief +interval through the Bank of the United States. Enough for Taney, that +it was the will of his imperious master, 'the pugnacious animal,' as +Gallatin aptly termed him.</p> + +<p>In October, 1834, Taney's successor in the Treasury, Levi Woodbury, gave +notice that the remaining debt, unredeemed after January 1, 1835, would +cease to bear interest and be promptly paid on application to the +commissioners of loans in the several States. On December 8, 1835, Mr.<span class='pagenum'><a name="Page_271" id="Page_271">[Pg 271]</a></span> +Woodbury reported “an unprecedented spectacle presented to the world of +a government virtually without any debts and without any direct +taxation.” The surplus revenues, about thirty-seven and a half millions +of dollars, had by an act of the previous session been distributed among +the several States. But the secretary and the country soon found that +they were on dangerous ground. In December, 1837, the same secretary, +alarmed at his responsibility, said to Congress, in warning words, “We +are without any national debt to absorb and regulate surpluses, or any +adequate supply of banking institutions which provide a sound currency +for general purposes by paying specie on demand, or which are in a +situation fully to command confidence for keeping, disbursing, and +transferring the public funds in a satisfactory manner.”</p> + +<p>The Bank of the United States, on the expiration of its charter in +March, 1836, accepted a charter from the State of Pennsylvania; but, +though its influence continued to be as great, its direction was no +longer the same. Abandoning its legitimate business, it speculated in +merchandise, and even kept an agent in New Orleans to compete with the +Barings in purchases of the cotton crop as a basis for exchange. +Precisely as in 1811, after the withdrawal of the control of the Bank of +the United States, the state banks ran a wild career of speculation. +From 1830 to 1837 three hundred new banks sprang up with an additional +capital of one hundred and forty-five mil<span class='pagenum'><a name="Page_272" id="Page_272">[Pg 272]</a></span>lions, doubling, as twenty +years before, the banking capital of the country. This volume the +deposits of the Treasury continued to swell. Mr. Woodbury was the first +to take alarm. In December, 1836, he reported the specie in the country +to have increased from thirty millions in 1833 to seventy-three millions +at the date of his report, and the paper circulation, in the same +period, to have advanced, since the removal of the deposits from the +Bank of the United States, from eighty millions to one hundred and +twenty millions, or forty millions in eighteen months; and the bank +capital, in the same period, to have increased from two hundred to three +hundred millions. Importation augmented; the balance of trade suddenly +turned against the United States to the extent of one hundred and fifty +millions, and coin began to flow abroad to liquidate the account. There +was no debt to attract foreign investment and arrest the export of +specie. Added to this was the withdrawal of the government deposits from +the pet banks, which compelled an immediate contraction. The result was +inevitable. On May 10, 1837, the New York banks suspended, Mr. +Gallatin's institution being of course dragged down with the rest. It is +idle to suppose that any single bank can hold out against a general +suspension. It may liquidate or become a bank of deposits, but it cannot +maintain its relations with its sister institutions except on a basis of +common accord.</p> + +<p>A general suspension followed. Mr. Woodbury<span class='pagenum'><a name="Page_273" id="Page_273">[Pg 273]</a></span> proved himself equal to the +emergency, and recommended a plan of “keeping the public money under new +legislative provisions without using banks at all as fiscal agents.” +This was the beginning of the sub-treasury system, a new departure in +treasury management, and a further evolution in American finance. It +still remains, and will no doubt be permanent. Its establishment was +necessary because of the absence of a national bank.</p> + +<p>Mr. Gallatin at once turned his attention to bring about first a +liquidation and then a resumption. It was a favorite maxim with him, +that “the agonies of resumption are far harder to endure than those of +suspension,” as it is easier to refrain from lapse of virtue than to +restore moral integrity once impaired. But in resumption the suffering +falls where it belongs, on the careless, the improvident, and the +over-trader.</p> + +<p>On August 15, 1837, the officers of the banks of New York city, in a +general meeting, appointed a committee of three to call a convention of +the principal banks to agree upon a time for a resumption of specie +payments. This committee, of which Mr. Gallatin was chairman, on August +18 addressed a circular to the principal banks in the United States, +inviting the expression of their wishes as to the time and place for a +convention, suggesting New York as the place, and October, 1837, as the +time. They said, in addition, that the banks of New York city, in view +of the law of the State dissolving them as legal corporations<span class='pagenum'><a name="Page_274" id="Page_274">[Pg 274]</a></span> in case +of suspension for one year, must resume at some time between January 1 +and March 15, 1838. The circular committed the New York banks to no +definite action, but expressed the opinion that the fall in the rate of +exchanges indicated an early return of specie to par, when resumption +could be effected without danger. The banks of Philadelphia held a +meeting on August 29, and adopted resolutions declaring it inexpedient +to appoint delegates to the proposed convention. Aware of the reasons +for this action, the chief of which was the extended and perhaps +insolvent condition of the United States Bank of Pennsylvania, the New +York committee invited the banks in the several States to appoint +delegates to meet on November 27, 1837, in New York. Delegates from +banks of seventeen States and the District of Columbia appeared. On the +30th resolutions were brought in recommending a general resumption on +July 1, without precluding an earlier resumption on the part of such +banks as might find it necessary. The Pennsylvania banks opposed this +action with resolutions condemning the idea of immediate resumption as +impracticable, and also, in the absence of delegates from the banks of +Louisiana, Mississippi, Alabama, and Tennessee, as unwise. The +convention met again on December 2, when an adjournment was carried to +April 11, 1838, when delegates from the banks not represented were +invited to attend. Mr. Gallatin saw that the combination of the +Philadelphia and Boston banks,<span class='pagenum'><a name="Page_275" id="Page_275">[Pg 275]</a></span> under the lead of Mr. Biddle, would +certainly force a further postponement. Exchange on London, which had +been as high as 121, the true par being about 109-1/2, nominal, had +fallen to 111-1/2, which, considering that the city bank paper was at a +discount of five per cent., was at the rate of 2-1/2 per cent. below +specie par. The exportation of specie had entirely ceased.</p> + +<p>On December 15 Mr. Gallatin and his committee appointed at the general +convention submitted a report which he had drafted, which, though +addressed to the New York banks, covered the whole ground. Meanwhile the +highest authority in Pennsylvania had given it as his opinion “that the +banks of Pennsylvania were in a much sounder state than before the +suspension, and that the resumption of specie payments, so far as it +depends on their situation and resources, may take place at any time.”</p> + +<p>On February 28, 1838, Mr. Gallatin's committee made a further report +showing that the liabilities of the New York banks had been reduced more +than twelve millions and a half, or fifty per cent., and asserting that +with the support of the community and the state authorities they could +resume on an equal footing on May 10. This declaration was welcomed with +great satisfaction by a general meeting of the citizens of New York. On +April 11 the general convention again met in New York. The Philadelphia +banks declined to attend. A letter from Mr. Woodbury promised<span class='pagenum'><a name="Page_276" id="Page_276">[Pg 276]</a></span> the +support of the Treasury Department. A committee of one from each State +was appointed, which recommended the first Monday in October as the +earliest day for a general resumption. The convention could not, +however, be brought to fix upon so early a day, but finally fixed upon +January 1, 1839, and adjourned. The New York banks would have accepted +July 1, 1838, but this being refused they resumed alone on May 10, and +the force of public opinion compelled resumption by nearly all the banks +of the country on July 1.</p> + +<p>The terrible contraction was fatal to the United States Bank of +Pennsylvania, which after a vain struggle closed its doors in October, +1839, and carried with it the entire banking system of the Southern and +Southwestern States. Although in no way similar to the semi-governmental +institutions which preceded it, yet, from its similarity of name and +identity of location, its disastrous failure added to the blind popular +distrust of its predecessors, which narrow-minded politicians had +fostered for their own selfish purposes. Fortunately the sub-treasury +plan of Mr. Woodbury supplied the need of a safe place of deposit which, +since the refusal of Congress to renew the charter of the old bank, had +been sorely felt.</p> + +<p>In 1838, on the foundation of the Bank of Commerce under the free +banking law of the State of New York, the presidency of it was first +tendered to Mr. Gallatin. The directors of this bank were among the most +distinguished financiers of the<span class='pagenum'><a name="Page_277" id="Page_277">[Pg 277]</a></span> city, and its object was to provide a +conservative institution with sufficient power and capital to act as a +regulator upon the New York banks. Profit to the stockholders was +secondary to the reserve power for general advantage.</p> + +<p>In June, 1839, Mr. Gallatin resigned his post as president of the +National Bank of New York. In 1841 he published a financial essay, which +he entitled “Suggestions on the Banks and Currency of the United +States,” a paper full of information, but from the nature of the subject +not to be compared in general interest with his earlier paper, which is +as fresh to-day as when it was written. Mr. Gallatin condemned paper +currency as an artificial stimulus, and the ultimate object of his +essays was to annihilate what he termed the “dangerous instrument.” He +admitted its utility and convenience, when used with great sobriety, but +he deprecated its tendency to degenerate into a depreciated and +irredeemable currency. This tendency the present national banking law +arrests, but the law rather invites than prohibits the stimulus of +increased issues. The last word has not yet been said on national +currency, which, though the basis of all commercial transactions, has +necessarily no other relation to banks than that which it holds to any +individual in the community.</p> + +<p>Economic questions have interested the highest order of mind on the two +continents. Sismondi published a paper on commercial wealth in 1803, and +in 1810 a memoir on paper money, which he<span class='pagenum'><a name="Page_278" id="Page_278">[Pg 278]</a></span> prepared to show how it might +be suppressed in the Austrian dominions; Humboldt made a special study +of the sources and quantity of the precious metals in the world, in +which Mr. Gallatin aided him by investigation in America. Michel +Chevalier was interested in the same subjects; surviving his two masters +in the art and witnessing the marvelous effects of the additions made by +America to the store of precious metals, he continued the study in the +spirit of his predecessors, and favored the world with instructive +papers. Mr. Gallatin's contributions to this science are remarkable for +minute research and careful deductions.</p> + +<p>In 1843 President Tyler tendered the Treasury portfolio to Mr. Gallatin. +The venerable financier looked upon the offer as an act of folly to +which a serious answer seemed hardly necessary. Yet as silence might be +misconstrued, he replied that he wanted no office, and to accept at his +age that of secretary of the treasury would “be an act of insanity.” He +was then in his eighty-third year. The offer of the post was but an +ill-considered caprice of Mr. Tyler.<span class='pagenum'><a name="Page_279" id="Page_279">[Pg 279]</a></span></p> + +<div class="footnotes"><h3>FOOTNOTES:</h3> + +<div class="footnote"><p><a name="Footnote_10_10" id="Footnote_10_10"></a><a href="#FNanchor_10_10"><span class="label">[10]</span></a> Cents are omitted as confusing figures.</p></div> + +<div class="footnote"><p><a name="Footnote_11_11" id="Footnote_11_11"></a><a href="#FNanchor_11_11"><span class="label">[11]</span></a> The first Annual Report of the Secretary of the Treasury. +This was under the Supplementary Treasury Act.</p></div> + +<div class="footnote"><p><a name="Footnote_12_12" id="Footnote_12_12"></a><a href="#FNanchor_12_12"><span class="label">[12]</span></a> Excess of receipts, notwithstanding the purchase of +Louisiana and payments on account of principal and interest of the +debt.</p></div> + +<div class="footnote"><p><a name="Footnote_13_13" id="Footnote_13_13"></a><a href="#FNanchor_13_13"><span class="label">[13]</span></a> These were the banks of New York, Boston, Philadelphia, +and Baltimore. Seven presidents formed the committee. John A. Stevens of +New York was chairman, by request of the Secretary of the Treasury. The +other members were named by him. The sum advanced to the government was +one hundred and fifty millions of dollars in coin.</p></div> + +<div class="footnote"><p><a name="Footnote_14_14" id="Footnote_14_14"></a><a href="#FNanchor_14_14"><span class="label">[14]</span></a> At Portland, $120,000; Salem, $183,600; Boston, $75,300; +Providence, $67,800; Richmond, $49,000; Norfolk, $103,000; Charleston, +$354,000.</p></div> + +<div class="footnote"><p><a name="Footnote_15_15" id="Footnote_15_15"></a><a href="#FNanchor_15_15"><span class="label">[15]</span></a> Report of Secretary Dallas, September 20, 1816.</p></div> + +<div class="footnote"><p><a name="Footnote_16_16" id="Footnote_16_16"></a><a href="#FNanchor_16_16"><span class="label">[16]</span></a> Act of March 3, 1817.</p></div> + +<div class="footnote"><p><a name="Footnote_17_17" id="Footnote_17_17"></a><a href="#FNanchor_17_17"><span class="label">[17]</span></a> <i>Democratic Review</i>, xii. 641.</p></div> + +<div class="footnote"><p><a name="Footnote_18_18" id="Footnote_18_18"></a><a href="#FNanchor_18_18"><span class="label">[18]</span></a> Chairman of the Committee of Ways and Means.</p></div> +</div> + +<hr style="width: 65%;" /> +<h2><a name="CHAPTER_VII" id="CHAPTER_VII"></a>CHAPTER VII<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>IN THE CABINET</h3> + +<p>The general principles which Mr. Jefferson proposed to apply in his +conduct of the government were not principles of organization but of +administration. The establishments devised by Hamilton, in accordance +with or in development of the provisions of the Constitution, were +organic. The new policy was essentially restrictive and economic. The +military and naval establishments were to be kept at their lowest +possible limit. The Treasury Department was to be conducted on strictly +business principles. The debt was to be reduced and finally paid by a +fixed annual appropriation. The revenue was to be raised by imposts on +importation and tonnage, and by direct taxation, if necessary. The +public land system was to be developed. A scheme of internal +improvements by land and water highways was to be devised. All these +purposes except the last had been declared by the opposition during the +last part of Washington's second term and during Adams's presidency, and +had been lucidly expounded by Madison, Gallatin, Giles, Nicholas, and +others of the Republican leaders. On all these<span class='pagenum'><a name="Page_280" id="Page_280">[Pg 280]</a></span> subjects Mr. Gallatin +was in accord with his chief. Only upon the bank question were they at +issue. Mr. Jefferson detested or feared the aristocracy of money, while +Gallatin, with a clearer insight into commercial and financial +questions, recognized that in a young country where capital was limited, +and specie in still greater disproportion to the increasing demands of +trade, a well-ordered, well-managed money institution was an enormous +advantage, if not an imperative necessity to the government and the +people.</p> + +<p>Peace was necessary to the success of this general policy of internal +progress, but peace was not to be had for the asking. It was not till +half a century later that the power of the western continent as a +food-producing country was fully felt by Europe, and peace with the +United States became almost a condition of existence to millions in the +old world, while this country became independent, in fact as in name, to +the fullest meaning of the word. Peace was not menaced during +Jefferson's first administration, for the Federalists had left no legacy +of diplomatic discord to embarrass their successors. The divisions of +opinion were on home affairs. The Republican party was the first +opposition which had reached power since the formation of the +government. The Federalists had not hesitated to confine the patronage +of the executive to men of their own way of thinking. The Republicans +had attacked that principle. There were men even in the ranks of +Jefferson's administra<span class='pagenum'><a name="Page_281" id="Page_281">[Pg 281]</a></span>tion who scouted the idea that the President of +the United States could become “the President of a party.” But practice +and principle are not always in accord, even in administrations of +sentimental purity, and the pressure for office was as great in 1800 as +it has ever since been on the arrival of a new party to power. Beyond +all other departments of government, the Treasury depends for its proper +service upon business capacity and a knowledge of the principles of +accounting and office routine. Mr. Gallatin was well aware of the +difficulties his predecessors had encountered in finding and retaining +competent examining and auditing clerks. As there was no reason to +suppose that all this talent was to be found in the ranks of the +Republican party, and his common sense pointed out the folly of limiting +the market of supply, he early (July 25, 1801) prepared a circular to +collectors, in which he informed them “that the door of office was no +longer to be shut against any man because of his political opinions, but +that integrity and capacity suitable to the station were to be the only +qualifications required; and further, the President, considering freedom +of opinion or freedom of suffrage at public elections imprescriptible +rights of citizens, would regard any exercise of official influence to +sustain or control the same rights in others as injurious to the public +administration and practically destructive of the fundamental principles +of a republican Constitution.” But Mr. Jefferson and Mr. Madi<span class='pagenum'><a name="Page_282" id="Page_282">[Pg 282]</a></span>son +opposed this simple declaration of a principle which has since been the +base of every attempt at reform in the civil service. Mr. Jefferson +answered that after one half of the subordinates were exchanged, talents +and worth might alone be inquired into in the case of new vacancies. +This was a miserable shuffling policy which defeated itself. For a +Federalist to retain office when such a discrimination was applied was +of itself a degradation. Mr. Jefferson here threw away and forever lost +the power to establish the true system, and fixed the curse of patronage +upon American administration. The true principle may be stated in the +form of an axiom. Administrations should rely for continuation upon +measures, not on patronage. Gallatin yielded with reluctance to the +spirit of persecution which he did not hesitate to say disgraced the +Republican cause, and sank them to a level with their predecessors. +Notwithstanding his aversion, he was compelled to follow the policy of +the cabinet. Its first result was to divide the Republican party, and to +alienate Burr, whose recommendation of Matthew L. Davis for the naval +office at New York was disregarded. Had the new administration declined +to make removals except for cause, such a dispute would have been +avoided. As it was, the friends of Burr considered the refusal as a +declaration of war. Appointments became immediately a part of the +machinery of Republican administration, as it had been part of that of +their predecessors, and<span class='pagenum'><a name="Page_283" id="Page_283">[Pg 283]</a></span> each was carefully weighed and considered in +its reference to party quite as much as to public service.</p> + +<p>Already looking forward to the next presidential election, Gallatin was +anxious for an agreement upon Jefferson's successor, and even before the +meeting of the first Congress of his term he advised the President on +this point, and he also proposed the division of every State into +election districts by a general constitutional provision.</p> + +<p>Jefferson submitted the draft of his annual messages to the head of each +department, and invited their comments. Gallatin was minute in his +observations, and it is interesting to note the peculiar precision and +caution of his character in the nice criticisms of language and style, +sometimes declaratory, sometimes non-committal, but always and obviously +reasonable, and often presenting a brief argument for the change +proposed. In these days of woman's rights it is curious to read “Th. J. +to Mr. Gallatin. The appointment of a woman to office is an innovation +for which the public is not prepared, nor am I.”</p> + +<p>Gallatin suggested a weekly general conference of the President and the +secretaries at what is now styled a cabinet meeting, and private +conferences of the President with each of the secretaries once or twice +a week on certain days and at fixed hours. The business to come before +the House was also to be considered, and the policy to be pursued +determined upon. Unfortunately in this case again<span class='pagenum'><a name="Page_284" id="Page_284">[Pg 284]</a></span> Jeffersonian theory +did not accord with Jeffersonian practice. Even erratic Randolph +complained of the want of system at these cabinet meetings, where each +was at liberty to do and say as he chose; a severe trial, this, to +Gallatin. In 1845 Mr. Gallatin wrote to Edward Coles that it was “quite +unusual to submit to the cabinet the manner in which the land or naval +forces authorized by Congress, and for which appropriations had been +made, should be employed,” and added that on no occasion, in or out of +cabinet, was he ever consulted on those subjects prior to the year 1812.</p> + +<p>In the difficulty which arose with the Barbary powers Mr. Gallatin +earnestly urged the payment of an annuity to Tripoli, if necessary for +peace. He considered it a mere matter of calculation whether the +purchase of peace was not cheaper than the expense of a war. This policy +was to be continued for eight years, at the end of which he hoped that a +different tone might be assumed. In a note on the message of 1802, +Gallatin expressed the hope to Jefferson that his administration would +“afford but few materials for historians.” He would never sacrifice +permanent prosperity to temporary glitter.</p> + +<p>Mr. Gallatin's counsel was sought, and his opinion deferred to, on +subjects which did not fall directly within the scope of administration. +Even on questions of fundamental constitutional law his judgment was not +inferior to that of Madison himself. In one notable instance he differed +from<span class='pagenum'><a name="Page_285" id="Page_285">[Pg 285]</a></span> Mr. Lincoln, the attorney-general, whom he held in high esteem as +a good lawyer, a fine scholar, “a man of great discretion and sound +judgment.” This was in 1803, when the acquisition of East Louisiana and +West Florida was a cabinet question. Mr. Lincoln considered that there +was a difference between a power to acquire territory for the United +States and the power to extend by treaty the territory of the United +States, and held that the first was unconstitutional. Mr. Gallatin held +that the United States as a nation have an inherent right to acquire +territory, and that, when acquisition is by treaty, the same constituted +authorities in whom the treaty power is vested have a constitutional +right to sanction the acquisition, and that when the territory has been +acquired Congress has the power either of admitting into the Union as a +new State or of annexing to a State, with the consent of that State, or +of making regulations for the government of the territory. Mr. Jefferson +concurred in this opinion, while at the same time he thought it safer +not to permit the enlargement of the Union except by amendment of the +Constitution. Mr. Gallatin's view was practically applied in the cases +named, and later in the annexation of Texas, although he disapproved of +the latter as contrary to good faith and the law of nations. He advised +Jefferson, also, not to lay the treaty by which Louisiana was acquired +before the House until after its ratification by the Senate, taking the +ground that until<span class='pagenum'><a name="Page_286" id="Page_286">[Pg 286]</a></span> then it was not a treaty, and urging that great care +should be taken to do nothing which might be represented as containing +any idea of encroachment on the rights of the Senate. He personally +interested himself in the arrangements for taking possession of New +Orleans, and, considering the expense as trifling compared with the +object, urged the dispatch of an imposing force of not less than fifteen +thousand men, which would add to the opinion entertained abroad of our +power, resources, and energy; five thousand of these to be active +troops; ten thousand an enrolled reserve. The acquisition of Louisiana +was the grand popular feature of the foreign policy of the first term of +Jefferson's administration. The internal management left much to be +desired.</p> + +<p>While his general views were exalted, and his principles would stand the +nicest examination in their application, Mr. Jefferson was not fortunate +in his choice of methods or men. It is not enough for an administration +to be pure; it should be above suspicion. This his was not. Time has not +washed out the stain of his intimacy with William Duane, the editor of +the infamous “Aurora.” Citizen Duane, as he styled himself in the first +days of the administration, quarreled with Gallatin because he would not +apply the official guillotine, and thereafter pursued him with +uncompromising hostility. Of favoritism in appointments Mr. Gallatin +could not be accused. During his twelve years in the Treasury he +procured places<span class='pagenum'><a name="Page_287" id="Page_287">[Pg 287]</a></span> for but two friends; one was given an obscure clerkship +in the department; the other, John Badollet, was made register in the +land office at Vincennes, against whom Gallatin said in the application +for appointment which he reluctantly made, there was but one objection, +“that of being his personal and college friend.”</p> + +<p>The dispositions for the sale of lands in the western territory, the +extinguishment of titles, and the surveys fell under Mr. Gallatin's +general supervision, and were the objects of his particular care. So +also was the establishment of the authority of the United States in the +Louisiana territory. In the course of these arrangements he was brought +into contact with Mr. Pierre Chôteau of St. Louis, who controlled the +Indian trade of a vast territory. The foundation of an intimate +acquaintance was then laid. The influence of this remarkable man over +the Western Indians and the extent of his trading operations with them +was great, and has never since been equaled. About this period Mr. John +Jacob Astor informed the government that he had an opportunity, of which +he intended to take advantage, to purchase one half of the interest of +the Canadian Fur Company, which, notwithstanding the treaty of 1794, +engrossed the trade by way of Michilimackinac with our own Indians. +Before that period this lucrative traffic had been exclusively in +British hands, and the hostility of the Indian tribes rendered any +interference in it by Americans dangerous to life<span class='pagenum'><a name="Page_288" id="Page_288">[Pg 288]</a></span> and property, and +their participation since had been merely nominal. Jefferson's cabinet +received the proposal with satisfaction, but, in their strict +interpretation of the Constitution, could find no way of giving any aid +to the scheme beyond the <i>official</i> promise of protection, which it fell +to Mr. Gallatin to draft. Mr. Jefferson wrote to Mr. Astor a letter to +the same effect. Mr. Astor, however, was not deterred from his +enterprise, but, under the charter of the American Fur Company granted +by the State of New York, extended his project to the Indians west of +the Rocky Mountains, and made of it an immense business, employing +several vessels at the mouth of the Columbia River and a large land +party beyond the Rocky Mountains. He finally founded the establishment +of Astoria. This settlement fell into the hands of the British during +the war of 1812. Mr. Astor sought to persuade the American government to +permit him to renew the establishment at its close, only asking a flag +and a lieutenant's command, but Mr. Madison would not commit himself to +the plan.</p> + +<p>Among Mr. Jefferson's pet schemes was that of a substitution of gunboats +for fortifications, and for supporting the authority of the laws within +harbors. The mind of Mr. Jefferson had no doubt been favorably disposed +to this mode of offensive defense by the experience of Lafayette at +Annapolis, in his southern expedition in the spring of 1781, when his +entire flotilla, ammunition of war,<span class='pagenum'><a name="Page_289" id="Page_289">[Pg 289]</a></span> and even the city of Annapolis, +were saved from destruction by two improvised gunboats, which, armed +with mortars and hot shot, drove the British blockading vessels out of +the harbor. Jefferson first suggested the scheme in his annual message +of 1804, and Gallatin did not interfere; but when, in 1807, the +President insisted, in a special message, on the building of two hundred +vessels of this class, Mr. Gallatin objected, because of the expense in +construction and maintenance, and secondly, of their infallible decay. +Mr. Jefferson persisted, and Mr. Gallatin's judgment was vindicated by +the result. Two years later, of one hundred and seventy-six gunboats +constructed, only twenty-four were in actual service. In his letter of +criticism, Mr. Gallatin gave as his opinion, that “it would be an +economical measure for every naval nation to burn their navy at the end +of a war and to build a new one when again at war, if it was not that +time was necessary to build ships of war.” The principle was the same as +to gunboats, and the objection of time necessary for building did not +exist.</p> + +<p>This year he also laid before the President a memorandum of preparatory +measures for defense against Great Britain, from whom an attack was +expected by land and sea, and a second plan for offensive operations on +the northern frontier, which is complete in its geographical and +topographical information, and its estimate of resources in men, +material, and money. At the same time he urged<span class='pagenum'><a name="Page_290" id="Page_290">[Pg 290]</a></span> upon Mr. Jefferson to +moderate the tone of his message, so as not to widen the breach by +hurting the pride of Great Britain.</p> + +<p>In connection with the land system, Mr. Jefferson favored, and Mr. +Gallatin devised, an extensive plan of internal improvements. The route +of the Cumberland road from the Potomac to the Ohio was reported to +Congress in 1807; a coast survey was ordered in the same year. The first +superintendent was Hassler, a Swiss, whom Mr. Gallatin brought to the +notice of Mr. Jefferson. In 1808 a general plan of improvement was +submitted to the Senate. This included canals parallel with the +seacoast, making a continuous line of inland navigation from the Hudson +to Cape Fear; a great turnpike from Maine to Georgia; the improvement of +the Susquehanna, Potomac, James, and Santee rivers to serve the slope +from the Alleghanies to the Atlantic; of the Alleghany, Monongahela, and +Kanawha, to serve the country westward to the Mississippi, the head +waters of these rivers to be connected by four roads across the +Appalachian range; a canal at the falls of the Ohio; a connection of the +Hudson with Lake Champlain, and of the same river with Lake Ontario at +Oswego; and a canal around Niagara Falls. The entire expense he +estimated at $20,000,000, to be met by an appropriation of $2,000,000 a +year for ten years; the stock created for turnpikes and canals to be a +permanent fund for repairs and improvements.<span class='pagenum'><a name="Page_291" id="Page_291">[Pg 291]</a></span></p> + +<p>A national university for education in the higher sciences was also +recommended by Jefferson in his message of 1806, but Mr. Gallatin had +little faith in the popularity of this scheme. After the convulsion of +1794 in Geneva, Gallatin's old college mate, D'Yvernois, conceived the +plan of transporting the entire University of Geneva to the United +States, and wrote on the subject to Jefferson and Adams; but his idea +was based on the supposition that fifteen thousand dollars' income could +be had from the United States in support of the institution, which was, +of course, at the time impracticable. Jefferson believed that these +plans of national improvement could be carried into effect only by an +amendment to the Constitution; but Mr. Gallatin, as in the bank +question, was disturbed by no such scruples, and he recommended Mr. +Jefferson to strike from his message the words “general welfare,” as +questionable in their nature, and because the proposition seemed to +acknowledge that the words are susceptible of a very dangerous meaning.</p> + +<p>To a permanent embargo act Mr. Gallatin was from the beginning opposed. +He recognized the mischief of government prohibitions, and thought that +statesmen might well hesitate before they took the hazard of regulating +the concerns of individuals. The sequel proved the correctness of this +judgment. But Mr. Jefferson could not bring his mind to any more +decisive measure, indeed, it may justly be said, to any measure +whatever.<span class='pagenum'><a name="Page_292" id="Page_292">[Pg 292]</a></span> Taking advantage of Mr. Madison's election to the presidency, +he simply withdrew from the triumvirate, and, passing over the subject +in silence in his last message, he ignominiously left to Mr. Madison and +Mr. Gallatin the entire responsibility which the threatening state of +the foreign relations of the country imposed on the Republican party.</p> + +<p>The question was now between the enforcement of the Embargo Act and war. +To take off the embargo seemed a declaration of weakness. To add to it a +non-importation clause was the only alternative. In November, 1808, Mr. +Gallatin prepared for George W. Campbell, chairman of the Committee on +Foreign Relations of the House, the declaration known as Campbell's +report, which recited, in clear, compact form, the injuries done to the +United States by Great Britain, and closed with resolutions to the +effect that the United States could not submit to the edicts of Great +Britain and France, and with a recommendation of non-intercourse and for +placing of the country in a state of defense. After long debate the +resolutions were adopted by large majorities, and the policy of +resistance was finally determined upon—resistance, not war. Thus the +United States resorted, as the colonies had resorted in 1774, to a +policy of non-importation. But the condition of the States was not that +of the colonies. Then all the colonies were commercial, and the entire +population was on the seaboard; the prohibition fell with<span class='pagenum'><a name="Page_293" id="Page_293">[Pg 293]</a></span> equal weight +upon all. Now there were large interior communities whom restrictions +upon commerce would rather benefit than injure. Yet neither the Sons of +Liberty nor the non-importation associations had been able to enforce +their voluntary agreements either before or after the Congress of 1774. +If this were to be the mode of resistance, stringent measures must be +adopted to make it effective. Mr. Gallatin accordingly called upon +Congress for the necessary powers. They at once responded with the +Enforcement Act, which Mr. Gallatin proceeded to apply with +characteristic administrative vigor, and summoned Jefferson to authorize +the collectors of revenue to call the military force of the United +States to support them in the exercise of their restrictive authority. +There was to be no evasion under the systems which Hamilton devised and +Gallatin knew so well how to administer.</p> + +<p>His annual report made to Congress on December 10 had clearly set forth +the situation, and, without recommending war, had pointed out how it +might be carried on. Macon wrote of him on December 4 to their mutual +friend, Joseph H. Nicholson, “Gallatin is decidedly for war.” After his +report was sent in the situation became still more perplexing. Rumors +came of an intention to call a convention of the five New England +States, with New York, if possible, to take ground against the embargo. +As these indications of dissatisfaction became manifest, and the +contingency<span class='pagenum'><a name="Page_294" id="Page_294">[Pg 294]</a></span> of the employment of force at home presented itself, +Gallatin made a careful balance of the advantages and inconveniences of +embargo, non-intercourse, and letters of marque. This paper, dated +February, 1809, and entitled, “Notes on the Political Situation,” no +doubt served as a brief for consultation with Madison upon his inaugural +message, it being then understood that Gallatin was to be secretary of +state. As he states one of the advantages of letters of marque to be “a +greater chance of unity at home,” this measure he probably preferred. +The Senate had already, on January 4, passed a bill ordering out the +entire naval force of the country, and on the 10th the House adopted the +same bill by a vote of 64 to 59. Mr. Gallatin opposed this action +strenuously. On February 2 the House voted by a large majority to remove +the embargo on March 4. Non-intercourse with Great Britain and France +and trade everywhere else were now the conditions. This significant +expression of the feeling of Congress no doubt determined Mr. Gallatin +to suggest letters of marque. Whether he pressed them upon Mr. Madison +or not is uncertain. Meanwhile Mr. Gallatin suffered the odium of +opposition to the will of Congress, and Mr. Madison's power was broken +before he took his seat. A few Republican senators inaugurated an +opposition to their chief after the fashion of modern days, and Mr. +Madison was given to understand that Mr. Gallatin would not be confirmed +if nominated as secretary of state. Mr. Madison<span class='pagenum'><a name="Page_295" id="Page_295">[Pg 295]</a></span> yielded to this +dictation, and from that day forward was, as he deserved to be, +perplexed and harassed by a petty oligarchy. Mr. John Quincy Adams, in a +note on this affair, says that, “had Mr. Gallatin been appointed +secretary of state, it is highly probable war with Great Britain would +not have taken place.” But it is improbable that any step in foreign +intercourse was taken without Mr. Gallatin's knowledge and approbation. +Such are the traditions of the triumvirate.</p> + +<p>The first term of Madison's administration was not eventful. There was +discord in the cabinet. In the Senate the “invisibles,” as the faction +which supported Robert Smith, the secretary of state, was aptly termed, +rejected Madison's nominations and opposed Gallatin's financial policy +as their interests or whims prompted. Randolph said of Madison at this +time, that he was “President <i>de jure</i> only.” Besides this domestic +strife, the cabinet was engaged in futile efforts to resist the +gradually tightening cordon of British aggression. Erskine's amateur +negotiations, quickly disavowed by the British government, and the short +and impertinent mission of Jackson, who succeeded him and was dismissed +from the United States, well served Canning's policy of delay. Madison, +whose prejudices were as strongly with Englishmen and English ways as +those of Jefferson were with the men and manners of France, averse to +war and withheld also by Gallatin's persistent objections, negotiated +and procrastinated until there was little<span class='pagenum'><a name="Page_296" id="Page_296">[Pg 296]</a></span> left to argue about. In +December, 1809, Macon made an effort to pass a stringent navigation act +to meet the British Orders in Council and the French decrees. The bill +passed the House but was emasculated in the Senate, the Republican cabal +voting with the Federalists to strike out the effective clauses. The act +interdicting commercial intercourse with Great Britain and France +expired in May, 1810, and was not revived. A new act was passed, which +was a virtual surrender of every point in dispute. Resistance was +abandoned, and our ships and seamen were left to the mercy of both +belligerents.</p> + +<p>Mr. Gallatin's entire energies were bent upon strengthening the Treasury +and opposing reckless expenditures. His most grievous disappointment, +however, was in the refusal of Congress to renew the charter of the Bank +of the United States. He used every possible effort to save this +institution, which, in the condition of the country, was indispensable +to a sound currency and the maintenance of specie payment. But with the +dead weight of Mr. Madison's silence, if not indifference, the struggle +was unequal and the bank fell. The course of Mr. Madison can hardly be +excused. Political history records few examples of a more cruel +desertion of a cabinet minister by his chief. Mr. Gallatin felt it +deeply and tendered his resignation. The administration was going to +pieces by sheer incapacity. The leaders took alarm and the cabinet was +reconstructed, Monroe being called<span class='pagenum'><a name="Page_297" id="Page_297">[Pg 297]</a></span> to the Department of State. But the +enemies of Mr. Gallatin still clung to his skirts, determined to drag +him to the dust. Duane attacked him in the most dangerous manner. +Probably no man in America has ever been abused, vilified, maligned with +such deliberate persistency as was Gallatin in the “Aurora” from the +beginning of 1811 until the cabinet crisis, when Mr. Madison was +compelled to choose between Smith and himself. Day after day leaders +were devoted to personal assault upon him and to indirect insinuations +of his superiority to Madison, by which the artful editor sought to +arouse the jealousy of the President. The “Atlas at the side of the +President,” the “Great Treasury Law Giver,” the “First Lord of the +Treasury,” the “Dagon of the Philistines,” were favorite epithets. He +was charged by turns with betraying cabinet secrets to Randolph, with +amateur negotiation with Erskine, and with subserviency to British gold +in the support of the Bank of the United States. Here is an instance of +Duane's style: “We can say with perfect conviction that, if Mr. Madison +suffer this man to lord it over him, Mr. Gallatin will drag him down, +for no honest man in the country can support an administration of which +he is a member with consistency or a pure conscience.” It was charged +upon Gallatin that his friends considered him as the real, while Madison +was the nominal, president. More than this, he was accused of +embezzlement and enormous speculations in the public<span class='pagenum'><a name="Page_298" id="Page_298">[Pg 298]</a></span> lands. Gallatin's +party pride must have been strong indeed to have induced him to stay an +hour in an administration which granted its favors to the author of such +assaults upon one of its chosen leaders.</p> + +<p>Jefferson wrote to Mr. Wirt in May following, that, because of the bank, +endeavors were made to drive from the administration (of Mr. Madison) +the ablest man, except the President, who ever was in it, and to beat +down the President himself because he was unwilling to part with such a +counselor.</p> + +<p>Monroe was appointed secretary of state in Smith's place in April, 1811. +Other changes followed in the cabinet, but brought little relief to Mr. +Gallatin. Financial affairs now occupied his entire attention; on the +one hand was a diminishing treasury; on the other an expenditure +reckless in itself and beyond the demands of the administration. Without +the sympathy of either the Senate or House, Mr. Gallatin's position +became daily more irksome, until at last he abandoned all attempt to +control the drift of party policy, took the war party at their word, and +sent in to the House a war budget.</p> + +<p>Unfortunately for the country, the Republican party knew neither how to +prepare for war, nor how to keep the peace. Mr. Madison had none of the +qualifications of a war President; neither executive ability, decision +of character, nor yet that more important faculty, knowledge of men.<span class='pagenum'><a name="Page_299" id="Page_299">[Pg 299]</a></span> In +his attachment to Mr. Madison and in loyalty to what remained of the +once proud triumvirate of talent and power, Mr. Gallatin supplied the +deficiencies of his fellows as best he could, until an offer of +mediation between the United States and Great Britain on the part of the +emperor of Russia presented an opportunity for honorable withdrawal and +service in another and perhaps more congenial field. In March, 1813, the +Russian minister, in a note to the secretary of state, tendered this +offer. Mr. Gallatin had completed his financial arrangements for the +year, and requested Mr. Madison to send him abroad on this mission. +Unwilling to take the risk of new appointments, the President acceded to +this proposal, and gave him leave of absence from his post in the +Treasury. Mr. Gallatin did not anticipate a long absence, and felt, as +he said to his old friend Badollet, that he could nowhere be more +usefully employed than in this negotiation. Certainly he could have no +regret in leaving a cabinet which had so little regard to his own +feelings and so little political decency as to confer the appointment of +adjutant-general in the United States army on his malignant assailant, +William Duane of the “Aurora.”</p> + +<p>Mr. Gallatin's mission, followed by the resignation of his post in the +cabinet, finally dissolved the political triumvirate, but not the +personal friendship of the men. Numerous attempts were made to alienate +both Jefferson and Madison from<span class='pagenum'><a name="Page_300" id="Page_300">[Pg 300]</a></span> Gallatin while he held the portfolio of +the Treasury, but one and all they signally and ignominiously failed. +For Mr. Jefferson Mr. Gallatin had a regard near akin to reverence. A +portrait of the venerable sage was always on his study table. When about +setting out for France in 1816 he tendered his services to his old chief +and wrote to him that 'in every country and in all times he should never +cease to feel gratitude, respect, and attachment for him.' Jefferson +fully reciprocated this regard. From Monticello he wrote to Gallatin in +1823: “A visit from you to this place would indeed be a day of jubilee, +but your age and distance forbid the hope. Be this as it will, I shall +love you forever, and rejoice in your rejoicings and sympathize in your +ails. God bless and have you ever in His holy keeping.” Nor does Mr. +Gallatin seem to have allowed any feeling of disappointment or +dissatisfaction at Mr. Madison's weakness to disturb their kindly +relations. Their letters close with the reciprocal assurance of +affection as well as of esteem.<span class='pagenum'><a name="Page_301" id="Page_301">[Pg 301]</a></span></p> + +<h2><a name="CHAPTER_VIII" id="CHAPTER_VIII"></a>CHAPTER VIII<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>IN DIPLOMACY</h3> + +<h2><i>The Treaty of Ghent</i></h2> + +<p>On May 9, 1813, the ship Neptune sailed from New Castle on the Delaware, +having on board Albert Gallatin and James A. Bayard, ministers of the +United States, with their four secretaries, of whom were Mr. Gallatin's +son James, and George M. Dallas, son of his old Pennsylvania friend. +They were accompanied to sea by a revenue cutter. Off Cape Henlopen they +were overhauled by the British frigate on the station, and their +passport was countersigned by the English captain. On June 20 they +reached the mouth of the river Gotha. Here the vessel lay at quarantine +for forty-eight hours, during which the gentlemen paid a flying visit to +Gottenburg. At dusk, on the 24th, the Neptune anchored in Copenhagen +inner roads, the scene of Nelson's attack in 1801. Mr. Gallatin's brief +memoranda of his voyage contain some crisp expressions. He found +“despotism and no oppression. Poverty and no discontent. Civility and no +servile obsequiousness amongst the people. Decency and sobriety.”</p> + +<p>St. Petersburg was reached on July 21. Here<span class='pagenum'><a name="Page_302" id="Page_302">[Pg 302]</a></span> Gallatin and Bayard found +John Quincy Adams, then minister to Russia. He was one of the three +commissioners appointed to treat for peace under the mediation which the +Emperor Alexander had offered to the United States. Bayard and Adams +were Federalists. To the moderate counsels of the former Jefferson owed +his peaceable election. Gallatin and Adams had the advantage of thorough +acquaintance with European politics. To Gallatin the study of history +was a passion. He was familiar with the facts and traditions of +diplomacy. He knew the purpose, the tenor, and the result of every +treaty made for centuries between the great powers; even their dates +were at ready command in his wonderful memory. But, excepting the few +Frenchmen of distinction who in the exile which political revulsions +imposed upon them had crossed the sea, he had no acquaintance with +Europeans of high position, and none whatever with the diplomatic +personnel of European courts. In this Adams was more fortunate. Educated +abroad, while his father was minister to the court of St. James, he was +from youth familiar with courts and their ways. To be the son of a +president of the United States was no small matter at that day. The +conjunction of these two men was rare. One of European birth and trained +to American politics, the other of American birth and brought up in the +atmosphere of European diplomacy. In their natural characteristics they +were the opposite of one another. Adams was<span class='pagenum'><a name="Page_303" id="Page_303">[Pg 303]</a></span> impetuous, overbearing, +impatient of contradiction or opposition. Gallatin was calm, +self-controlled, persistent; not jealous of his opinions, but ready to +yield or abandon his own methods, if those of others promised better +success; never blinded by passion or prejudice, but holding the end +always in view. That end was peace; “peace at all times desirable,” as +Mr. Gallatin said a few days before his departure on his mission, but +much more so, 'because of the incapacity shown in the conduct of the +war, its inefficiency when compared with its expense, and the open +hostility to it of a large number of the American people.' In the face +of the disasters which had befallen the country Mr. Gallatin must have +felt some qualms of conscience for his persistent opposition to the +military and naval establishments. Their reorganization had place in his +desire for peace. He said, May 5, 1813: “Taught by experience, we will +apply a part of our resources to such naval preparations and +organization of the public force as will, within less than five years, +place us in a commanding situation.” With the particulars of the dispute +between the two countries he was perfectly familiar. His report prepared +in 1808 for Mr. Campbell, chairman of the Committee on Foreign +Relations, covered the whole ground of the American argument.</p> + +<p>At the outset there seemed good ground for hope of an early agreement. +European politics were at a critical point, and England naturally<span class='pagenum'><a name="Page_304" id="Page_304">[Pg 304]</a></span> +wished to husband her resources for a sudden emergency. The mediation of +Russia Mr. Gallatin considered a salve to the pride of England. This +reasoning seemed sound enough, but it had not taken account of one +important element: the jealousy of England of any outside interference +between herself and her ancient dependencies. Mr. Gallatin did not hold +English diplomacy in very high regard. Late in life he said that the +history of the relations of England and France was a story of the +triumphs of English arms and of French diplomacy; that England was +always victorious, but France had as often negotiated her out of the +fruits of success. True as this remark was in general, it cannot be said +of the policy of England in American affairs. She pushed to the utmost +her exclusion of France from the American continent when the States were +colonies, and now that they were free and independent she would listen +to no foreign intervention. Neither in peace nor war should any third +government stand between the two nations. This was and ever has been the +true policy of Great Britain, and that it was not lost sight of in the +heat of war is to the credit of her diplomacy. The offer of Russia to +mediate was not welcome, and was set aside by Lord Castlereagh in a note +of discouragement. There was no ground for the commissioners to stand +upon; moreover the emperor and Count Nesselrode were absent from St. +Petersburg, Count Romanzoff being left in charge of the foreign<span class='pagenum'><a name="Page_305" id="Page_305">[Pg 305]</a></span> +relations. The offer of mediation had originated with him. His policy +was to curb the maritime power of England, and to secure in the +negotiation a modification at least of the offensive practice of Great +Britain in her assumed police of the sea.</p> + +<p>The war was in fact a legacy of the necessarily incomplete diplomacy of +Washington's administration and the Jay treaty. The determining cause +was the enforcement of the right of search and the impressment of seamen +from American vessels; a practice at variance with the rights and the +law of nations. Monroe, Madison's secretary of state, urged the clear +and distinct forbearance of this British practice as the one object to +be obtained. An article in the treaty giving security in that respect +was by Gallatin, as well as by Monroe, considered a <i>sine qua non</i> +condition; while Mr. Bayard viewed an informal arrangement as equally +efficient and more practicable than a solemn article. But there was no +doubt of Bayard's determination to reach the result prescribed in their +instructions.</p> + +<p>Mr. Gallatin's first act after setting foot on European shores was to +write to Baring Brothers & Co. at London. This he did from Gottenburg, +requesting a passport for the Neptune, which the commission proposed to +retain at St. Petersburg until their return. At the same time he +intimated that he wished the British government to be informed of the +object of the mission. For the expenses of the commission the +ambassadors had authority to draw on the Barings. The reply of<span class='pagenum'><a name="Page_306" id="Page_306">[Pg 306]</a></span> Mr. +Alexander Baring must at once have opened Mr. Gallatin's eyes to the +futility of the errand of the commissioners. His words clearly state the +British grounds of objection: “The mediation of Russia was offered, not +sought,—it was fairly and frankly accepted,—I do not see how America +could with any consistency refuse it; but to the eyes of a European +politician it was clear that such an interference could produce no +practical benefit. The only question now seriously at issue between us +is one purely of a domestic nature in each country respectively; no +foreign government can fairly judge of it.” Pointing out the difficulty +of establishing any distinction between the great masses of the +seafaring population of Great Britain and America, he finds that no +other country can judge of the various positions of great delicacy and +importance which spring from such a state of things; and says: “This is +not the way for Great Britain and America really to settle their +disputes; intelligent persons of the two countries might devise mutual +securities and concessions which perhaps neither country would offer in +the presence of a third party. It is a sort of family quarrel where +foreign interference can only do harm and irritate at any time, but more +especially in the present state of Europe, when attempts would be made +to make a tool of America.” These, he said he had good reason to know, +were the sentiments of the British cabinet on the question of place of +negotiation and foreign mediation. He also in<span class='pagenum'><a name="Page_307" id="Page_307">[Pg 307]</a></span>formed Mr. Gallatin that +the mediation of Russia had been refused, and that the British +government would express its desire to treat separately and directly +either at London or Gottenburg. He warned Mr. Gallatin that an opinion +prevailed in the British public that the United States were engaged to +France by a secret political connection, which belief, though perhaps +not shared by the government, would lead it to consider the persevering +of the American commission upon bringing the insulated question before +the powers of the Continent as a touchstone of their sincerity. He hoped +that the American commissioners would come at once in contact with the +British ministers, and pointed out the hesitation that every minister +would feel at giving instructions on a matter so delicate as that +“involving the rights and duties of sovereign and subject.” He then +declared that there was in England a strong desire for peace and for +ending a contest in which the “two countries could only tease and weaken +each other without any practical result,” and at a time when England +desired to carry her resources into the “more important field of +European contest.” He then gave Castlereagh's assurance, that the +cartel-ship, the Neptune, should be respected, and expressed his own +personal hope that he should ere long be gratified by seeing it bring, +with the commissioners, the hope of peace to the shores of England.</p> + +<p>Meanwhile Mr. Gallatin was engaged in explaining the American case to +Romanzoff by con<span class='pagenum'><a name="Page_308" id="Page_308">[Pg 308]</a></span>versation and by a written statement of the facts in +the form of an unofficial note to the emperor. On August 10 word was +received from the Emperor Alexander authorizing the renewal of the offer +of mediation; and shortly after a letter from General Moreau, written to +Mr. Gallatin from the imperial headquarters at Hrushova, assured him of +his sympathy and assistance. His relations with Gallatin were of long +standing and of an intimate nature. Moreau, after a long residence in +America, to which he was warmly attached, had lately crossed the ocean +and tendered his able sword to the coalition against Bonaparte. He +informed Gallatin that one of the British ministers had said to him in +Germany that England would not treat of her maritime rights under any +mediation. He feared that American vanity would hardly consent to treat +directly with Great Britain, and foresaw that the political adversaries +of Madison and Gallatin would blame the precipitation of the United +States government in sending over the envoys before the adhesion of +England to the proposed arbitration was secured. He assured Gallatin of +the interest of the Emperor Alexander in the Americans.</p> + +<p>On August 24 Count Romanzoff read to the envoys his dispatch to Count +Lieven, the Russian minister at London, renewing the offer of mediation. +The commissioners considering their authority as limited to treating +under the mediation of Russia, Mr. Gallatin wrote to Monroe, inclosing<span class='pagenum'><a name="Page_309" id="Page_309">[Pg 309]</a></span> +a copy of Baring's letter, which he looked upon as an informal +communication of the views of the British government, and asked for +contingent powers and instructions. These they could not expect to +receive before February. Gallatin replied to Mr. Baring that no +information of the refusal of Great Britain to the mediation had been +received, but, even if it had, the commission was not authorized to +negotiate in any other manner. They were, however, competent to treat of +commerce without mediation. He declined to discuss the objection of +Great Britain to the mediation of Russia, confining himself to an +expression of ignorance in America of any such feeling on the part of +the British ministry, and of the confidence placed in the personal +character of the emperor, which was considered a sufficient pledge of +impartiality; while the selection of a sovereign at war with France was +clear evidence that America neither had nor wished to have any political +connection with that power. That he himself believed an arrangement to +be practicable, he said to Mr. Baring, was evident from the fact that he +had given up his political existence, and separated himself from his +family. His opinion was, that while neither nation would be induced to +abandon its rights or pretensions in the matter of impressment, an +arrangement might be made by way of experiment which would reserve to +both their respective abstract rights, real or assumed.</p> + +<p>To Moreau he wrote stating his hope that, not<span class='pagenum'><a name="Page_310" id="Page_310">[Pg 310]</a></span>withstanding the first +objections of Great Britain, the mediation of the emperor would be +accepted, and he asked the general for his personal interposition to +this end. France and England he held to be equally at fault in the great +European contest; the one usurping and oppressing the land, the other +dominating and tyrannizing the sea. They alone, said he, have gained, if +not happiness, at least power. Russia, he was firmly persuaded, was the +only power at heart friendly to America. History has shown the sagacity +of this judgment. This letter was never answered. Moreau was at death's +door.</p> + +<p>Early in October Mr. Dallas was sent to London to open relations with +the British ministry. His presence there would save two months at least +in each correspondence which involved communication between Washington, +London, and St. Petersburg. Count Romanzoff gave the necessary letter of +introduction to Count Lieven. Gallatin's instructions to the young +secretary were explicit as to the caution he should exercise in a +country where he could consider himself as only on sufferance. Hardly +were these preliminaries concluded, and Dallas had not started on his +journey, when Mr. Gallatin received word from America that the Senate +had refused to confirm him in his position as commissioner. Mr. Gallatin +had not resigned his position of secretary of the treasury. The Senate +refused to sanction the cumulative appointment.<span class='pagenum'><a name="Page_311" id="Page_311">[Pg 311]</a></span></p> + +<p>Stripped of his official character, he now felt himself at liberty to +follow his own inclination. His first impulse was to go to London, where +he was sure that Baring's friendship would open to him a means of +usefulness in the matter on which he was engaged. The death of Moreau +cut off the medium of approach to the emperor. This event was of no +consequence, however, in the negotiation, as the emperor had been +positively informed in July that England would not countenance even the +appearance of foreign intervention in her dispute with America. But as +yet no official information of his rejection had been received by Mr. +Gallatin, nor did any reach him until March. Without it he could not +well leave St. Petersburg. Meanwhile a diplomatic imbroglio, caused by +the failure of the emperor to inform Romanzoff of Castlereagh's second +refusal to accept the offer of mediation, embarrassed the commission all +winter. Nor yet were they aware that the British minister, driven to the +wall by the second offer of the emperor, had made proposals to Monroe to +treat directly with the United States government. The British note with +this offer was written on November 4. Mr. Gallatin was apprised of it by +Mr. Dallas in January, 1814. Mr. Baring urged him, if he should return +to America during the winter, to take his way through England, as good +effects might result from even a passing visit. Gallatin was then, as he +expressed it, “chained for the winter to St. Petersburg,” nor<span class='pagenum'><a name="Page_312" id="Page_312">[Pg 312]</a></span> had he +any way of reaching home, except by a cartel from a British port.</p> + +<p>No word coming from the emperor, the envoys concluded to withdraw from +St. Petersburg. Before leaving, Mr. Gallatin addressed a letter of +thanks to Count Romanzoff, and requested him to communicate any +information he might receive from the emperor. It was supposed that the +offer of England to treat directly with America might be inclosed in +Castlereagh's letter of refusal to accept Russian mediation. On January +25, 1814, Mr. Gallatin and Mr. Bayard left St. Petersburg and traveled +by land to Amsterdam, which they reached after a tedious journey on +March 4. The captain of the Neptune was ordered to bring his vessel to a +port of Holland. At Amsterdam, where the envoys remained four weeks, +they learned that Mr. Madison had at once accepted Castlereagh's offer +and appointed a new commission, consisting of Messrs. Adams, Bayard, +Henry Clay, and Jonathan Russell. Mr. Gallatin was not included, as he +was supposed to be on his way home to resume his post in the Treasury +Department, the duties of which had been performed in his absence by Mr. +Jones, the secretary of the navy. When correct information did reach Mr. +Madison, on February 8, he immediately added Mr. Gallatin to the +commission, and appointed Mr. G. W. Campbell to be secretary of the +treasury. Thus it happened that Mr. Gallatin, whom Mr. Madison intended +for the head of the commission, was the last named of those who +conducted the negotiations.</p> + +<p><span class='pagenum'><a name="Page_313" id="Page_313">[Pg 313]</a></span></p><h3><i>J. A. Bayard</i></h3> + +<p class="center"><a name="image-8" id="image-8"><!-- Image 8 --></a> +<img src="images/illus-335-1.jpg" height="305" width="218" +alt="J.A. Bayard" /></p> + +<p class="center"><a name="image-9" id="image-9"><!-- Image 9 --></a> +<img src="images/illus-335-2.jpg" height="35" width="164" alt="Signature of J.A. Bayard" /></p> + +<p class="center"><a href="#ILLUS">Click for list of Illustrations</a></p> + +<p>On April 1, 1814, Mr. Gallatin concluded to pass through England on his +return, and leaving orders for the Neptune on its arrival to proceed to +Falmouth, he took the packet to Harwich, whither he requested Mr. Baring +to send him the requisite passports to enable him to reach London with +his suite without delay.</p> + +<p>In company with Mr. Bayard, Mr. Gallatin reached the English capital on +April 9, 1814. There they heard some days later of the arrival of +Messrs. Clay and Russell at Gottenburg. The situation of Great Britain +had greatly changed. Intoxicated with the success of their arms and the +abdication of Napoleon, the English people were quite ready to undertake +the punishment of the United States, while the release of a large body +of trained troops in France, Italy, Holland, and Portugal enabled the +ministry immediately to throw a large force into Canada for the summer +campaign. In the British cabinet a belief was said to be entertained +that a continuance of the war would bring about a separation of the +American Union, and perhaps a return of New England to the mother +country. In this emergency Gallatin availed himself of the opportunity +which presented itself of addressing Lafayette in sending to that +officer the patents for the Louisiana land granted to him by the +American government, and urged the use of his influence to promote an +ac<span class='pagenum'><a name="Page_314" id="Page_314">[Pg 314]</a></span>commodation between England and the United States.</p> + +<p>To Clay he wrote on April 22, proposing that the place of negotiation be +changed from “that corner” Gottenburg, either to London, or some neutral +place more accessible to the friendly interference of those among the +European powers upon which they must greatly rely. The Emperor Alexander +was expected in London, and Castlereagh, who had recently returned from +France where he had been in direct intercourse with him, was understood +to be of all the cabinet the best disposed to the United States. From +Clay Gallatin heard in reply that the British <i>chargé d'affaires</i> at +Stockholm had already asked the sanction of the Swedish government to +the negotiation at Gottenburg. While Clay was unwilling to go to London +he gave his consent to carry on the negotiations in Holland, if the +arrangement could be made in such a manner as to avoid any ill feeling +at the Swedish court by the change from Gottenburg. In May Gallatin and +Bayard asked of Monroe, who was then secretary of state, authority for +the commissioners to remove the negotiation to any place which their +judgment should prefer. In May, also, the British government was +officially notified by the American commissioners of their appointment. +Lord Bathurst answered with an assurance that commissioners would be +forthwith appointed for Great Britain, and with a proposal of Ghent as +the place for negotiation. This was at once acceded to.<span class='pagenum'><a name="Page_315" id="Page_315">[Pg 315]</a></span></p> + +<p>Meanwhile Mr. Crawford, the United States minister at Paris, was +endeavoring, at the instance of Mr. Gallatin, to secure the friendly +interposition of the Emperor Alexander, not as a mediator, but as a +common friend and in the interest of peace to the civilized world. +Crawford was unable to obtain an audience of the emperor, or even an +interview with Count Nesselrode, but Lafayette took up the cause with +his hearty zeal for everything that concerned the United States, and, in +a long interview with the emperor at the house of Madame de Staël, +submitted to him the view taken by the United States of the controversy, +and obtained from him his promise to exert his personal influence with +the British government on his arrival at London. Baron von Humboldt, the +Prussian minister at Paris, who had been influenced by British +misrepresentation, was also won over by Lafayette, and now tendered his +services to Mr. Gallatin in any way in which he might be made useful. +Lafayette's letter was brought by Humboldt in person. Gallatin and +Humboldt had met in 1804, when the great traveler passed through +Washington on his return from Peru and Mexico.</p> + +<p>The Treaty of Paris having been signed, Lord Castlereagh reached London +early in June, and the emperor arrived a few days later. Mr. Gallatin +had an audience of the emperor on June 17, and on the 19th submitted an +official statement of the American case and an appeal for the +interposition of his imperial majesty, "the liberator and<span class='pagenum'><a name="Page_316" id="Page_316">[Pg 316]</a></span> pacifier of +Europe." From the interview Mr. Gallatin learned that the emperor had +made three attempts in the interest of peace, but that he had no hope +that his representations had been of any service. England would not +admit a third party to interfere, and he thought that, with respect to +the conditions of peace, the difficulty would be with England and not +with America.</p> + +<p>On June 13 Gallatin warned Monroe of the preparations England was making +which would enable her to land fifteen to twenty thousand men on the +Atlantic coast; that the capture of Washington and New York would most +gratify the British people, and that no help need be expected from the +countries of Europe, all which were profoundly desirous of peace.</p> + +<p>The ministry informing Mr. Gallatin that the British commissioners would +start for Ghent on July 1, he improved the interval by a visit to Paris. +He left London, where he had passed nearly three months in the uncertain +preliminaries of negotiation, and after a few days in the French capital +reached Ghent on July 6. The British commissioners only appeared on +August 6. They were Lord Gambier, Henry Goulburn, and William Adams, all +second-rate men, but for this reason suited to the part they had to +play. After the overturn of Napoleon the British cabinet had no desire +for peace, or at least not until they had secured by war some material +advantages in the United States, which a treaty would confirm.<span class='pagenum'><a name="Page_317" id="Page_317">[Pg 317]</a></span> The +business of their representatives at Ghent was to make exorbitant +demands of the Americans and delay negotiations pending the military +operations in progress.</p> + +<p>In June Gallatin was satisfied of the general hostile spirit of Great +Britain and of its wish to inflict serious injury on the United States. +He notified Monroe of his opinion and warned him that the most favorable +terms to be expected were the <i>status ante bellum</i>, and not certainly +that, unless the American people were united and the country able to +stand the shock of the campaign. Mr. Madison's administration had +already humbled itself to an abandonment, or at least to an adjournment, +of the principle to establish which they had resorted to arms. But in +the first stages of the negotiation it was clear that the British +cabinet had more serious and dangerous objects in view, and looked +beyond aggression and temporary injury to permanent objects. At the +first meeting on August 8, the British commissioners demanded, as a +preliminary to any negotiation, that the United States should set apart +to the Indian tribes the entire territory of the Northwest to be held by +them forever in sovereignty under the guaranty of Great Britain. The +absurdity of such a demand is sufficient evidence that it was never +seriously entertained. There could have been no idea that the military +power of Great Britain was able to enforce, or that the United States +would abjectly submit to, such a mutilation of its territory and<span class='pagenum'><a name="Page_318" id="Page_318">[Pg 318]</a></span> such a +limitation of its expansion. Behind this cover Mr. Gallatin +instinctively detected the real design of the cabinet to be the conquest +of New Orleans and the mouths of the Mississippi. If to the territory +thus acquired that of Florida should be added by cession from Spain, +which could hardly refuse any compensation asked of her by Great Britain +in return for the liberation of the Peninsula, a second British dominion +would be set up on the American continent. These views Gallatin +communicated to Monroe in a private dispatch of August 20, 1814, by the +hands of Mr. Dallas. To the <i>sine qua non</i> of the British commissioners +no answer was made by the Americans. The negotiation was abruptly +suspended, and only by informal conversation was Mr. Goulburn given to +understand that reference had been had to America for instructions. Mr. +Gallatin was of opinion that the negotiations were at an end, and in his +despair of peace took consolation in the belief that the insolence of +the demand would unite America from Maine to Georgia in defense of her +rights, of her territory, and indeed of her independence. The American +commissioners made no secret of their belief that their mission was +closed. Two of the secretaries started from Ghent on a continental tour, +and notice was given to the landlord of the house where the +commissioners resided of their intention to quit it on October 1. On +August 2, while matters were still at this deadlock, Lord Castlereagh +passed through Ghent on<span class='pagenum'><a name="Page_319" id="Page_319">[Pg 319]</a></span> his way to the Congress at Vienna. Goulburn was +ordered to change his tone and Lord Liverpool was advised to moderate +his demands; to use Castlereagh's words, to “a letting down of the +question.” Lord Liverpool replied on September 2, that he had already +given Goulburn to understand that the commission had taken a very +erroneous view of British policy. In this communication he betrays the +hope, which the cabinet had entertained, of the outcome of American +dissensions, by his expression of the opinion that if the negotiation +had broken off on the notes already presented by the British commission, +or the answer that the Americans were disposed to make, the war would +have become popular in America.</p> + +<p>Lord Bathurst reopened the negotiations, but his modification was of +tone rather than of matter. The surrender of the control of the Lakes to +Great Britain, and of the Northwest Territory to the Indians, was still +adhered to. The reply of the American commissioners was drawn chiefly by +Mr. Gallatin. It absolutely rejected the proposals respecting the +boundary and the military flag on the Lakes, and refused even to refer +them to the American government, but offered to pursue the negotiation +on the other points. To Monroe Mr. Gallatin explained his reason for +assenting to discuss the Indian article, and therein his colleagues +concurred with him, to be: that they had little hope of peace, but +thought it desirable, if there were to be a breach, that it should be on +other<span class='pagenum'><a name="Page_320" id="Page_320">[Pg 320]</a></span> grounds than that of Indian pacification. The reply of the +commission on this point, also drafted by Mr. Gallatin, was sent in on +September 26. It merely guaranteed the Indians in all their old rights, +privileges, and possessions.</p> + +<p>The destruction of the public buildings at Washington by the British +troops, known in London on October 1, caused a great sensation in +England. As Gallatin said in a letter to Madame de Staël, it was “an act +of vandalism to which no parallel could be found in the twenty years of +European war from the frontiers of Russia to Paris, and from those of +Denmark to Naples.” “Was it (he asked), because, with the exception of a +few cathedrals, England had no public buildings comparable to them, or +was it to console the London mob for their disappointment that Paris was +neither pillaged nor burned?” It can hardly be doubted that the flames +which consumed the American capital lighted the way to peace. The +atrocity of war was again brought vividly to the view of nations whose +sole yearning was for peace. Far from discouraging the American +commissioners, it fortified their resolution. They knew that it would +unite the people of the States as one man. It in no way disturbed +Gallatin's confidence either in the present or future of his adopted +country. To those who asked his opinion of the securities of the United +States, he said: "If I have not wholly misunderstood America, its +resources and its political morality, I am not wrong in the belief that<span class='pagenum'><a name="Page_321" id="Page_321">[Pg 321]</a></span> +its public funds are more secure than those of all European powers.”</p> + +<p>In spite of the protests of Mr. Goulburn, who felt the ground on which +he stood daily less stable, and in his letters to his chief was +unsparing in his denunciations, Lord Liverpool accepted the proposed +settlement of the Indian question. Nothing remained but to incorporate +in a treaty form the points agreed upon. Lord Bathurst, who seems +throughout the negotiation to have forgotten the old adage, that “fine +words butter no parsnips,” and with true British blindness never to have +appreciated how thoroughly he was overmatched by Mr. Gallatin, submitted +a preliminary notification that the British terms would be based on the +principle of <i>uti possidetis</i>, which involved a rectification of the +boundaries on the Canadian frontier. To this the Americans returned a +peremptory refusal. They would not go one step farther except on the +basis of the <i>status quo ante bellum</i>. Lord Liverpool considered this as +conclusive. A vigorous prosecution of the war was resolved upon by the +cabinet. Only for reasons of expediency was a show of negotiation still +kept up.</p> + +<p>But when the cabinet took a survey of the general field they felt little +complacency in the prospect of a struggle which sooner or later must +interest the maritime powers. France, compelled by the peace of Vienna +to withdraw from what even Lafayette considered as her natural frontier, +was restive, and there was a large party in Russia<span class='pagenum'><a name="Page_322" id="Page_322">[Pg 322]</a></span> who would gladly see +the emperor take up the American cause. Moreover the chancellor of the +exchequer saw before him an inevitable addition of ten millions of +pounds sterling to his budget, the only avowable reason for which was +the rectification of the Canadian frontier. In their distress the +cabinet proposed to Wellington to go to the United States with the +olive-branch and the sword, to negotiate or conquer a peace. The desire +of the cabinet to bring the war to an honorable conclusion was avowed. +But Wellington, before accepting this proposal, gave Lord Liverpool a +very frank opinion of the mistake made in exacting territorial +concessions, since the British held no territory of the United States in +other than temporary possession, and had no right to make any such +demand. Lord Liverpool was not tenacious. He was never, he wrote Lord +Bathurst, much inclined to give way to the Americans, but the cabinet +felt itself compelled to withdraw from its extreme ground. He accepted +his defeat and acknowledged it.</p> + +<p>The Americans meanwhile arranged a draft of a treaty. The articles on +impressment and other maritime rights, absolutely rejected by the +British, were set aside. There only remained the question of the +boundaries, the fisheries, and the navigation of the Mississippi. Here +Mr. Gallatin had as much difficulty in maintaining harmony between Adams +and Clay as in obtaining a peace from Liverpool and Bathurst. Adams was +determined<span class='pagenum'><a name="Page_323" id="Page_323">[Pg 323]</a></span> to save the fisheries; Clay would not hear of opening the +Mississippi to British vessels. A compromise was effected by which it +was agreed that no allusion should be made to either subject. Mr. +Gallatin terminated the dispute by adding a declaration that the +commissioners were willing to sign a treaty applying the principle of +the <i>status quo ante bellum</i> to <i>all</i> the subjects of difference. This +was in strict conformity with the instructions from the home government. +On November 10 the American draft was sent in. On the 25th the British +replied with a counter-draft which made no allusion to the fisheries, +but stipulated for the free navigation of the Mississippi. The Americans +replied that they would give up the navigation of the river for a +surrender of the fisheries. This proposal was at once refused by the +British. The matter was settled by an offer of the Americans to +negotiate under a distinct reservation of all American rights. All +stipulations on either subject were in the end omitted, the British +government on December 22 withdrawing the article referring to these +points. In the course of the negotiation Mr. Gallatin proposed that in +case of a future war both nations should engage never to employ the +savages as auxiliaries, but this article does not appear. To the credit +of civilization, however, the last article contained a mutual engagement +to put an end to the trade in slaves. An agreement entered into in +perfect faith, but which the jealousy of the exercise of search in any<span class='pagenum'><a name="Page_324" id="Page_324">[Pg 324]</a></span> +form rendered nugatory for half a century. On Christmas day the treaty +was signed. Mr. Henry Adams<a name="FNanchor_19_19" id="FNanchor_19_19"></a><a href="#Footnote_19_19" class="fnanchor">[19]</a> justly says, “Far more than +contemporaries ever supposed, or than is now imagined, the Treaty of +Ghent was the special work and the peculiar triumph of Mr. Gallatin.” +His own correspondence shows how admirably he was constituted for the +nice work of diplomatic negotiation. In the self-poise which he +maintained in the most critical situations, the unerring sagacity with +which he penetrated the purposes of his adversaries, the address with +which he soothed the passions and guided the judgments of his +colleagues, it is impossible to find a single fault. If he had a fault, +says his biographer, it was that of using the razor when he would have +done better with the axe. But the axe is not a diplomatic weapon. The +simulation of temper may serve an occasional purpose, but temper itself +is a mistake; and to Mr. Gallatin's credit be it said, it was a mistake +never committed by him in the course of this long and sometimes painful +negotiation. Looking back upon its shifting scenes, it is clear that +even the pertinacity of Adams and the irascibility of Clay served to +advance the purpose of the mission. From the first to the last Mr. +Gallatin had his own way, not because it was his own way, but because it +was the best way and was so recognized by the majority of the commission +at every turn of difference. Fortunately for the interests of<span class='pagenum'><a name="Page_325" id="Page_325">[Pg 325]</a></span> peace the +battle of New Orleans had not yet been fought. There seems a justice in +this final act of the war. The British attack upon the Chesapeake<a name="FNanchor_20_20" id="FNanchor_20_20"></a><a href="#Footnote_20_20" class="fnanchor">[20]</a> +was committed before war had been declared. The battle of New Orleans +was fought a fortnight after the Treaty of Ghent was signed. The burning +of Washington was avenged by the most complete defeat which the British +had ever encountered in their long career of military prowess.</p> + +<p>By his political life Mr. Gallatin acquired an American reputation; by +his management of the finances of the United States he placed himself +among the first political economists of the day; but his masterly +conduct of the Treaty of Ghent showed him the equal of the best of +European statesmen on their own peculiar ground of diplomacy. No one of +American birth has ever rivaled him in this field. Europeans recognized +his pre-eminent genius. Sismondi praised him in a public discourse. +Humboldt addressed him as his illustrious friend. Madame de Staël +expressed to him her admiration for his mind and character. Alexander +Baring gave him more than admiration, his friendship.</p> + +<hr style='width: 45%;' /> + +<p>Upon the separation of the commissioners, Mr. Gallatin paid a flying +visit to Geneva. His fame, or “glory,” to use the words of Humboldt, +pre<span class='pagenum'><a name="Page_326" id="Page_326">[Pg 326]</a></span>ceded him. Of his old intimates, Serre was under the sod in a West +Indian island; Badollet was leading a quiet life at Vincennes in the +Indiana Territory, where Gallatin had obtained for him an appointment in +the land office; Dumont was in England. Of Gallatin's family few +remained. But he received the honors due to him as a Genevan who had +shed a lustre on his native city. On his way to England, where he had +made an appointment with his colleagues to attempt a commercial treaty +with Great Britain, he stopped at Paris. Here he saw Napoleon, returned +from Elba, his star in full blaze before its final extinction. Here he +heard in April (1815) of his appointment by Madison as minister to +France. His colleagues also had been honored by similar advancements. +Adams was transferred from Russia to England. Bayard was named minister +to Russia, but illness prevented his taking possession of his post.</p> + +<p>In April, Mr. Gallatin and Mr. Clay opened negotiations with Lord +Castlereagh in London, where they were quickly joined by Adams. Lord +Castlereagh bore no malice against Mr. Gallatin for the treaty. On the +contrary, he wrote of it to Lord Liverpool as “a most auspicious and +seasonable event,” and wished him joy at “being released from the +millstone of an American war.” With Lord Castlereagh Mr. Gallatin +arranged in the course of the summer a convention regulating commercial +intercourse between the United States<span class='pagenum'><a name="Page_327" id="Page_327">[Pg 327]</a></span> and Great Britain, the only truly +valuable part of which was that which abolished all discriminating +duties. Mr. Gallatin considered this concession as an evidence of +friendly disposition, and rightly judged that British antipathy and +prejudice were modified, and that in the future friendly relations would +be preserved and a rupture avoided. Beyond this, there was little +gained. The old irritating questions of impressment and blockade and the +exclusion of the United States from the West Indies trade remained.</p> + +<p>In July Mr. Gallatin parted from Mr. Baring and his London friends on +his homeward journey. From New York, on September 4, he wrote Madison, +thanking him for the appointment of minister to France as an “evidence +of undiminished attachment and of public satisfaction for his services;” +but he still held his acceptance in abeyance. To Jefferson, two days +later, he had also the satisfaction to say with justice, that the +character of the United States stood as “high as ever it did on the +European continents, and higher than ever it did in Great Britain;” and +that the United States was considered “as the nation designed to check +the naval despotism of England.” To Jefferson he naturally spoke of that +France from which they had drawn some of their inspirations and their +doctrines.</p> + +<p>He thus describes the condition of the people:—</p> + +<div class="blockquot"><p>“The revolution (the political change of 1789) has not, however, +been altogether useless. There is a vis<span class='pagenum'><a name="Page_328" id="Page_328">[Pg 328]</a></span>ible improvement in the +agriculture of the country and the situation of the peasantry. The +new generation belonging to that class, freed from the petty +despotism of nobles and priests, and made more easy in their +circumstances by the abolition of tithes, and the equalization of +taxes, have acquired an independent spirit, and are far superior to +their fathers in intellect and information; they are not +republicans and are still too much dazzled by military glory; but I +think that no monarch or ex-nobles can hereafter oppress them long +with impunity.”</p></div> + +<p>And again, “Exhausted, degraded, and oppressed as France now is, I do +not despair of her ultimate success in establishing her independence and +a free form of government.” But it was not till half a century later +that Gambetta, the Mirabeau of the Republic, led France to the full +possession of her material forces, and reëstablished in their original +vigor the principles of 1789. That Gallatin was not blinded by +democratic prejudices appears in the letter he wrote to Lafayette after +Napoleon's abdication, in which he said: “My attachment to the form of +government under which I was born and have ever lived never made me +desirous that it should, by way of experiment, be applied to countries +which might be better fitted for a limited monarchy.”</p> + +<h2><i>Minister to France</i></h2> + +<p>Strange as it appears, there is no doubt that Mr. Gallatin was at this +time heartily weary of<span class='pagenum'><a name="Page_329" id="Page_329">[Pg 329]</a></span> political life, and seriously contemplated a +permanent retirement to the banks of the Monongahela. He naturally +enough declined a nomination to Congress, which was tendered him by the +Philadelphia district. His tastes were not for the violence and +turbulence of the popular house.</p> + +<p>Madison left him full time to decide whether he could arrange his +private affairs so as to accept the mission to Paris. In November he +positively declined. He considered the compensation as incompetent to +the support of a minister in the style in which he was expected to live. +His private income was at this time about twenty-five hundred dollars a +year. Monroe pressed him earnestly not to quit the public service, but +the year closed and Mr. Gallatin had not made up his mind. In the +situation of France, which he considered “would under her present +dynasty be for some years a vassal of her great rival,” he did not +consider the mission important, and his private fortune was limited to a +narrow competence. “I do not wish,” he wrote to Monroe, “to accumulate +any property. I will not do my family the injury of impairing the little +I have. My health is frail; they may soon lose me, and I will not leave +them dependent on the bounty of others.” But being again earnestly +pressed, he on January 2, 1816, accepted the appointment. To Jefferson +he wrote that he would not conceal 'that he did not feel yet old enough +nor had philosophy enough to go into retirement and abstract himself +wholly from public affairs.'<span class='pagenum'><a name="Page_330" id="Page_330">[Pg 330]</a></span></p> + +<p>In April, Madison notified Mr. Gallatin of Dallas's probable retirement +from the Treasury, and offered him the post if he cared to return to it. +He was perfectly aware of his supreme fitness for the direction of the +Treasury, and he declined with reluctance, because he was disturbed by +the suspension of specie payments. Remembering Madison's weakness in +1812 on the subject of the renewal of the bank charter, which Gallatin +considered necessary in the situation of the finances, he could hardly +have felt a desire to return to the cabinet in that or indeed in any +other capacity. He was perfectly conscious that as leader of the House +of Representatives, as secretary of the treasury, and as negotiator of +the Ghent treaty, he had brought into the triumvirate all its practical +statesmanship. His short career abroad had opened to him a new source of +intellectual pleasure. He had earned a right to some hours of ease. +Diplomacy at that period, when communication was uncertain and +difficult, was perforce less restricted than in these latter days, when +ambassadors are little more than foreign clerks of the State Department +without even the freedom of a chief of bureau. Gallatin felt entirely at +home, and was happy in this peculiar sphere. There was no time in his +life when he would not have gladly surrendered all political power for +the enjoyment of intellectual ease, the pursuit of science, and the +atmosphere of society of the higher order of culture in whatever field. +And Paris was then,<span class='pagenum'><a name="Page_331" id="Page_331">[Pg 331]</a></span> as it is still, the centre of intellectual and +social civilization.</p> + +<p>Jefferson rejoiced in Gallatin's appointment to France, and rightly +judged that he would be of great service there. Of Louis XVIII., +however, Jefferson had a poor opinion. He thought him 'a fool and a +bigot, but, bating a little duplicity, honest and meaning well.' +Jefferson could give Gallatin no letters. He had 'no acquaintances left +in France; some were guillotined, some fled, some died, some are exiled, +and he knew of nobody left but Lafayette.' With Destutt de Tracy, an +intimate friend of Lafayette, Jefferson was in correspondence. Indeed, +he was engaged on the translation of Tracy's work on political economy, +the best, in Jefferson's opinion, that had ever appeared.<a name="FNanchor_21_21" id="FNanchor_21_21"></a><a href="#Footnote_21_21" class="fnanchor">[21]</a></p> + +<p>Gallatin reached Paris with his family on July 9, 1816, and had an +interview with the Duc de Richelieu, the minister of Louis XVIII., two +days later. The conversation turned upon the sympathy for Bonaparte in +the United States, which Richelieu could not understand; but Gallatin +explained that it was not extended to him as the despot of France, but +as the most formidable enemy of England. Richelieu warned him of the +prejudices which might be aroused against the reigning family 'by +ex-kings and other emigrants of the same description' who had lately +removed<span class='pagenum'><a name="Page_332" id="Page_332">[Pg 332]</a></span> to the United States. This was an allusion to Jerome, who had +fled from the throne of Westphalia to the banks of the Delaware. The +king gave Gallatin an audience on the 11th, when he presented his +credentials. His reception both by his majesty and the princes was, he +wrote to Monroe, “what is called gracious.” Louis the Eighteenth was a +Bourbon to the ends of his fingers. He had the <i>bonhommie</i> dashed with +malice which characterized the race. None could better appreciate than +he the vein of good-natured satire, the acquired tone of French society, +which was to Mr. Gallatin a natural gift. Mr. Gallatin was not only +kindly but familiarly received at court; and at the <i>petits soupers</i>, +which were the delight of the epicurean king, his majesty on more than +one occasion shelled the crawfish for the youthful daughter of the +republican ambassador. An anecdote is preserved of the king's courteous +malice. To a compliment paid Mr. Gallatin on his French, the king added, +“but I think my English is better than yours.”</p> + +<p>Gallatin's first negotiations were to obtain indemnity for the captures +under the Berlin and Milan decrees; but although the Duc de Richelieu +never for a moment hinted that the government of the Restoration was not +responsible for the acts of Napoleon, yet he stated that the mass of +injuries for which compensation was demanded by other governments was so +great that indemnity must be limited to the most flagrant cases. They<span class='pagenum'><a name="Page_333" id="Page_333">[Pg 333]</a></span> +would pay for vessels burnt at sea, but would go no farther. In spite of +Mr. Gallatin's persistency no advance was made in the negotiation. A +minor matter gave him some annoyance. On July 4, 1816, at a public +dinner, the postmaster at Baltimore proposed a toast which, by its +disrespect, gave umbrage to the king. Hyde de Neuville, the French +minister to the United States, demanded the dismissal of the offender. +If our institutions and habits as well as public opinion had not +forbidden compliance with this request, the dictatorial tone of De +Neuville was sufficient bar. Richelieu could not be made to understand +the reason for the refusal, and while disclaiming any idea of using +force, said that the government would show its dissatisfaction in its +own way. This seemed to intimate an indefinite postponement of a +consideration of American demands, and would have rendered Mr. +Gallatin's further residence useless as well as unpleasant; but French +dignity got the better of what Gallatin termed, “the sickly +sentimentality which existed on the subject of personal abuse of the +king,” and the insignificant incident was not allowed to interfere with +friendly intercourse.</p> + +<p>In 1817 Mr. Gallatin was engaged not only in advising Mr. Adams at +London upon the points of a commercial treaty with Great Britain, but +also, together with Mr. William Eustis, minister to the Netherlands, in +a negotiation with that government.<span class='pagenum'><a name="Page_334" id="Page_334">[Pg 334]</a></span></p> + +<p>The commission met at the Hague, Mr. Goldberg and Mr. Van der Kemp +representing Holland. The subjects were the treaty of 1782 between the +States-general of the Netherlands and the United States, the repeal of +discriminating duties, and the participation of the United States in the +trade with the Dutch East Indies. The basis of a treaty could not be +agreed upon, and the whole matter was referred back to the two +governments, the American commissioners recommending to the President a +repeal of duties discriminating against vessels of the Netherlands, +which would no doubt prevent future exaction of extra tonnage duties +imposed on American vessels by that government. These negotiations +occupied the late summer months. At the end of September Mr. Gallatin +was again at his post in Paris.</p> + +<p>In June, 1818, Mr. Richard Rush, who owed his introduction into public +life to Mr. Gallatin, was appointed minister to England, Adams returning +to the United States to take the portfolio of State in President +Monroe's cabinet. Gallatin was joined to Rush, for the conduct of +negotiations with Great Britain, rendered necessary by the approaching +expiration of the commercial convention of July 3, 1815, which had been +limited to four years. The general field of disputed points was again +entered. It included the questions of impressment, the fisheries, the +boundaries, and indemnity for slaves. The commissioners were supported +by a temper of the American people<span class='pagenum'><a name="Page_335" id="Page_335">[Pg 335]</a></span> different from that which prevailed +when Jay and Gallatin respectively undertook the delicate work of +negotiation in 1794 and 1814. A compromise was arrived at, which was +signed on October 20, 1818. The articles on maritime rights and +impressment were set aside. A convention was made for ten years in +regard to the fisheries, the northwest boundary, and other points, and +the commercial convention of 1815 was renewed. The English claim to the +navigation of the Mississippi was finally disposed of, and the article +concerning the West India trade was referred to the President. The +arrangement of the fishery question disturbed Mr. Gallatin, who found +himself compelled to sign an agreement which left the United States in a +worse situation in that respect than before the war of 1812. But as the +British courts would certainly uphold the construction by their +government of the treaty of 1783, our vessels, when seized, would be +condemned and a collision would immediately ensue. This, and the +critical condition of our Spanish relations, left no choice between +concession and war. A short time afterward Lord Castlereagh and the Duke +of Wellington expressed friendly dispositions, and the mooted points of +impressment and the West India trade were considered by them to be near +an arrangement. The right of British armed vessels to examine American +crews was abandoned in the convention itself.</p> + +<p>In July, 1818, the capture of Fort St. Mark<span class='pagenum'><a name="Page_336" id="Page_336">[Pg 336]</a></span> and the occupation of +Pensacola in Florida by General Jackson made some stir in the quiet +waters of our foreign diplomacy. Uncertain as to whether the act would +be disavowed or justified by the American government, Mr. Gallatin +explained to the European ministers that the forcible occupation of the +Spanish province was an act of self-defence and protection against the +Indians, but Richelieu replied that the United States “had adopted the +game laws and pursued in foreign ground what was started in its own.” +Yet, to the astonishment of Mr. Gallatin, Richelieu was moderate and +friendly in language, and urged a speedy amicable arrangement of +differences with Spain, in whose affairs France took an interest, and +who had asked her good offices. But Gallatin at once rejected any idea +that the United States would join France in any mediation between Spain +and her revolted colonies. It seems rather singular that, to the +suggestion that a Spanish prince might be sent over to America as an +independent monarch, Gallatin contented himself with expressing a doubt +as to the efficacy of such a course to preserve their independence. Mr. +Adams was informed that public recognition of the independence of the +insurgent colony of Buenos Ayres would shock the feelings and prejudices +of the French ministers, but that notwithstanding this displeasure, +France would not join Spain in a war on this account. England, however, +would see such a war without regret, and privateers under Spanish<span class='pagenum'><a name="Page_337" id="Page_337">[Pg 337]</a></span> +commissions would instantly be fitted out, both in France and England. +Under the existing convention with Great Britain three hundred American +vessels arrived at Liverpool in the first nine months of 1818 from the +United States and only thirty English, an advantage to the United States +which war would at once destroy. Russia also was displeased with the +recognition of the independence of the Spanish colonies. At the Congress +of Aix la Chapelle various plans of mediation were proposed, but England +refusing to engage to break off all commercial relations with such of +the insurgent colonies as should reject the proposals agreed to, the +whole project was abandoned. An agreement between the five great powers +for the suppression of the slave trade was also proposed at this +Congress, but France declined to recognize the right to visit French +vessels in time of peace, and Russia making a similar declaration, this +plan also fell to the ground, and even an association against the +exactions of the Barbary powers was prevented by jealousy of the naval +preponderance of Great Britain.</p> + +<p>While Mr. Gallatin was still actively engaged in an endeavor to put our +commercial relations with France on a satisfactory basis, and +negotiating with M. Pasquier, the new French minister for foreign +affairs, both with regard to indemnities for captures and the new +Spanish relations involved in the cession of Florida to the United +States, a serious trouble arose in which Mr. Gallatin<span class='pagenum'><a name="Page_338" id="Page_338">[Pg 338]</a></span> and Mr. Adams +were at direct difference. In the spring of 1821 a French vessel, the +Apollon, was seized on the St. Mary's River, on the Spanish side, and +condemned for violation of the United States navigation laws. Mr. Adams +sustained the seizure and Mr. Gallatin did his best to defend it, on the +ground that the place where the vessel was seized was embraced in the +occupation of the United States. To Adams he wrote that the doctrine +assumed by the State Department with respect to the non-ratified treaty +with Spain was not generally admitted in Europe, and that “he thought it +equally dangerous and inconsistent with our general principles to assert +that we had a right to seize a vessel for any cause short of piracy in a +place where we did not previously claim jurisdiction.” Mr. Gallatin +succeeded in satisfying M. Pasquier that the seizure was not in +violation of the law of nations or an insult to the French flag, and the +captain having instituted a suit for redress against the seizing +officers, the French minister allowed the matter to rest. Adams, +however, was indignant at having his arguments set aside. He complained +of it to Calhoun, and asked what Mr. Gallatin meant. Calhoun answered +that perhaps it was “the pride of opinion.” But when Adams got to his +diary, which was the safety-valve of his ill-temper, he set a black mark +against Mr. Gallatin's name in these words: "Gallatin is a man of +first-rate talents, conscious and vain of them, and mortified in his +ambition, checked as it has been,<span class='pagenum'><a name="Page_339" id="Page_339">[Pg 339]</a></span> after attaining the last step to the +summit; timid in great perils, tortuous in his paths; born in Europe, +disguising and yet betraying a superstitious prejudice of European +superiority of intellect, and holding principles pliable to +circumstances, occasionally mistaking the left for the right handed +wisdom." Against this judgment, Gallatin's estimate of Adams may be here +set down. It was expressed to his intimate friend Badollet in 1824: +“John Q. Adams is a virtuous man, whose temper, which is not the best, +might be overlooked; he has very great and miscellaneous knowledge, and +he is with his pen a powerful debater; but he wants, to a deplorable +degree, that most essential quality, a sound and correct judgment. Of +this I have had in my official connection and intercourse with him +complete and repeated proofs; and although he may be useful when +controlled and checked by others, he ought never to be trusted with a +place where, unrestrained, his errors might be fatal to the country.” +Crawford complained of the difficulty he encountered in the cabinet of +softening the asperities which invariably predominated in the official +notes of the State Department while under Adams's direction, and said +that, had they been allowed to remain as originally drafted, the +government would have been “unembarrassed by diplomatic relations with +more than one power.” But it must be remembered that there was no love +lost between Adams and Crawford—political rivals and not personal +friends.<span class='pagenum'><a name="Page_340" id="Page_340">[Pg 340]</a></span></p> + +<p>The commercial negotiations, and the discussion of French pretensions +under the eighth article of the Louisiana treaty, opened with M. +Pasquier, were continued with the Vicomte de Montmorenci, who succeeded +him as minister of foreign affairs. In September, 1821, Mr. Gallatin had +communicated to Mr. Adams his intention of returning home in the spring; +but there appearing a chance of success in the negotiation of a treaty, +he wrote in February, 1822, to President Monroe that if no successor had +been appointed, he was desirous to remain some time longer. He was loath +to return without having succeeded in any one subject intrusted to his +care. Meanwhile Mr. Adams and M. de Neuville, the French minister, had +been busy in the United States. A commercial convention was signed at +Washington on June 24, 1822. Concerning this agreement Mr. Gallatin +wrote to Adams that the terms were much more favorable to France than he +had been led to presume would be acceded to, and more so than had been +hoped for by the French government. He nevertheless expressed the wish +that, as it had been signed, it should be ratified, in anticipation that +the superior activity of our ship-owners and seamen would enable America +to stand the competition.</p> + +<p>In January, 1823, Montmorenci resigned and was succeeded by M. de +Chateaubriand. The change of ministers made no change in the French +persistence in connecting the discussion of the<span class='pagenum'><a name="Page_341" id="Page_341">[Pg 341]</a></span> American claims with +that of the eighth article of the Louisiana treaty, an arrangement to +which Mr. Gallatin would not consent. As a last resort he so informed M. +de Chateaubriand, but receiving an unsatisfactory answer he concluded +that there was at that time no disposition in France to do us justice; +and as his protracted stay could be of no service to the United States, +he determined to return home in the course of the spring. In April he +received leave of absence from the President. On May 13 he had a final +conference with Chateaubriand, in which he could get no promise of any +redress, but did obtain the explicit declaration that France would in no +manner interfere in American questions.</p> + +<p>Mr. Gallatin took passage at Havre, and arrived in New York on June 24, +1823. His political friends, especially Crawford, were eager for his +return. Crawford wished him to stand for vice-president in the coming +presidential campaign. After a short visit to Washington he went to his +home at New Geneva. The real value of perfect public service, or indeed +of any service, is only appreciated when it ceases, and friction takes +the place of smooth and noiseless order. Hardly was Mr. Gallatin settled +at Friendship Hill when a letter from President Monroe (October 15) +arrived, urging him to return to Paris, if only for the winter, or until +the crisis brought on by the rupture between France and Spain should be +over. Mr. Gallatin replied, that the deranged state of his<span class='pagenum'><a name="Page_342" id="Page_342">[Pg 342]</a></span> private +affairs rendered his return to Europe extremely improbable.</p> + +<p>Goethe says in his “Elective Affinities” that we cannot escape the +atmosphere we breathe. The natural atmosphere of Mr. Gallatin was public +life. In November, 1825, Mr. Clay, Adams's secretary of state, offered, +and, meeting a refusal, pressed upon Mr. Gallatin the post of +representative of the United States at the proposed Congress of American +Republics at Panama. Mr. Clay was right in considering it the most +important mission ever sent from the United States, and had Mr. Gallatin +accepted it, relations with these interesting countries might have been +improved to an immeasurable degree of happiness to them, and of benefit +to both continents. But his family would not hear of his exposure in the +fatal climate of the American Isthmus. Moreover, he pleaded his +ignorance of the Spanish language as a sufficient excuse for declining +the mission,—an example which has not been followed in later days.</p> + +<h2><i>Minister to England</i></h2> + +<p>In the spring of 1826 Mr. Rufus King, who had taken the place of Mr. +Rush at London, that gentleman having been called to the Treasury by +President Adams, fell ill, and requested the assistance of an +extraordinary envoy. Mr. Gallatin accepted the mission. Before his +nomination reached the Senate Mr. King's resignation was received and +accepted. President Adams wishing<span class='pagenum'><a name="Page_343" id="Page_343">[Pg 343]</a></span> to intrust Mr. Gallatin alone with +the pending negotiations, and unwilling to make the two nominations of +minister and envoy, proposed to Mr. Gallatin to take the post of +minister, with powers to negotiate, and liberty to return when the +negotiations should be finished. Personal expenses at London were so +great that the post of resident minister was ruinous. Mr. Adams promised +Mr. Gallatin <i>carte blanche</i> as to his instructions. But instead of +latitude and discretionary power he received at New York voluminous +directions which he engaged faithfully to execute, while regretting that +they had not been made known to him sooner. Nevertheless, in the three +days which intervened before his sailing, he wrote to Mr. Clay a lucid +statement of the points in issue, and mentioned the modifications he +desired. The points were: 1. The northeastern boundary. Upon this he was +only authorized to obtain a reference of the subject to a direct +negotiation at Washington. He asked consent, in case it should be +desirable, to open a negotiation on this point at London. Should Great +Britain refuse to open a negotiation at either place, or to agree to a +joint statement, then he was not to be bound to propose an immediate +reference to a third power. 2. The boundary west of the Stony Mountains. +The instructions limited British continuance on settlements south of the +49th parallel to five years. Mr. Gallatin thought this insufficient, and +proposed fifteen years. 3. The St. Lawrence navigation, and the +intercourse<span class='pagenum'><a name="Page_344" id="Page_344">[Pg 344]</a></span> with Canada, as to which he suggested alternate plans. 4. +Colonial trade, on which he asked precise instructions as to what was +desired. To the President he complained of his instructions as 'of the +most peremptory nature, leaving no discretion on unimportant points, and +making of him a mere machine,' and he requested that it be officially +announced to him 'that the instructions were intended to guide but not +absolutely to bind him.' He was not afraid of incurring responsibility +where discretion was allowed, but he would not do it in the face of +strict and positive injunctions. Mr. Gallatin sailed from New York with +his wife and daughter July 1, 1826. Mr. William Beach Lawrence, then a +youth, accompanied him as his secretary. They reached London on August +7.</p> + +<p>Canning was then at the head of the foreign office, and the temper of +the ministry was not that of Castlereagh and Wellington. Mr. Gallatin +did not like French diplomacy, nor did he admire that of England. He +wrote to his son: 'Some of the French statesmen occasionally say what is +not true; here (in London) they conceal the truth.' But while in +diplomacy he found strength and the opinion of that strength to be the +only weapons, he felt satisfaction that the country could support its +rights and pretensions by assuming a different attitude. In the course +of the negotiations Mr. Gallatin learned that one of the king's +ministers had complained of the tone of United States diplomacy towards +England, and had added, that it<span class='pagenum'><a name="Page_345" id="Page_345">[Pg 345]</a></span> was time to show that it was felt and +resented. No such fault could attach to the correspondence of Mr. Rush +and Mr. King, or to that of Mr. Clay, which Mr. Addington had found +quite acceptable; but it was ascribed to Mr. Adams's instructions to Mr. +Rush, printed by order of the Senate. Mr. Gallatin later discovered that +the offensive remarks were in Baylies's report on the territory west of +the Stony Mountains. Mr. Gallatin explained the independence of the +House committees in the United States, but as a diplomatist he felt the +need of a concert between the executive and the committees of Congress +in all that concerns foreign relations. Government, after all, is a +complex science.</p> + +<p>The simple directness with which Mr. Gallatin dealt with Lord Liverpool +could not serve with a man of Canning's disposition. Mr. Gallatin did +not fail to bring to bear the pressure of a possible change in the +relations of the United States and Great Britain, which might arise from +the war which seemed imminent between that power and Spain. The new +questions of Cuba, and the old habit of impressment, might at once bring +the United States into collision with England. But the war did not take +place, and the close of the year found the negotiations not far +advanced. Only the convention of 1815 would no doubt be renewed. He +asked for further instructions on that subject, the joint occupancy of +western territory, and impressments, all of which he<span class='pagenum'><a name="Page_346" id="Page_346">[Pg 346]</a></span> hoped to arrange +in the spring and summer, and return home. Mr. Lawrence he found to be a +secretary more capable in the current business of the legation than any +of his predecessors. Mr. Gallatin could safely leave him there as +<i>chargé d'affaires</i>.</p> + +<p>In December, Chateaubriand used in the House of Peers the words which +Mr. Gallatin had said to him, 'that England could not take Cuba without +making war on the United States, and that she knew it.' Mr. Gallatin so +informed Adams, and added, that France would no doubt agree, as +Chateaubriand would have agreed, to a tripartite instrument if England +were of the same opinion.</p> + +<p>In March, 1827, Adams warned Gallatin that the sudden and unexpected +determination of Great Britain to break off all negotiation concerning +the colonial trade, and the contemporaneous interdiction of the vessels +of the United States from all British ports in the West Indies, had put +a new face on matters. A renewal of the convention of 1818 would +probably be agreed to by the Senate, but no concession in the form of a +treaty would be acceptable. His words were emphatic. “One inch of ground +yielded on the northwest coast,—one step backward from the claim to the +navigation of the St. Lawrence,—one hair's breadth of compromise upon +the article of impressment would be certain to meet the reprobation of +the Senate.” In this temper of parties, Adams added, "All we can hope to +accomplish will be to adjourn contro<span class='pagenum'><a name="Page_347" id="Page_347">[Pg 347]</a></span>versies which we cannot adjust, and +say to Britain as the Abbé Bernis said to Cardinal Fleuri: 'Monseigneur, +j'attendrai.'”</p> + +<p>But changes now occurred in the British ministry: Lord Liverpool died in +February, 1827—Mr. Canning in the following August. Lord Goderich +became prime minister. The new administration returned from Canning's +eccentric course to the old and quiet path. The commercial convention of +1815 was renewed indefinitely, each party being at liberty to abrogate +it at twelve months' notice. The joint occupancy of the Oregon +Territory, agreed to in 1818, was continued in a similar manner. On +September 29 a convention was signed, referring the northeast boundary +to the arbitration of a friendly sovereign. Mr. Gallatin believed that, +had Canning lived, he would have opened a negotiation on the subject of +impressment. Huskisson considered that 'the right, even if well founded, +was one the exercise of which was intolerable, but that this was not the +time to take up the subject.' The new British administration did not +dare to encounter the clamor of the navy, the opposition of the Tories, +and the pride of the nation on this question.</p> + +<p>Having accomplished all that was practicable, completed all the current +business, and leaving the British government in a better temper than he +found it, Mr. Gallatin returned to the United States, reaching New York +on November 29, 1827. Nothing remained in foreign relations in<span class='pagenum'><a name="Page_348" id="Page_348">[Pg 348]</a></span> respect +to which Mr. Gallatin felt that he could be of much use except the +northeast boundary. In a letter of congratulation to Mr. Gallatin on his +arrival, President Adams made ample amends for all his harsh judgments, +expressed or withheld. The three conventions were entirely satisfactory +to him. Of the negotiation he said, in words as graceful as warm, “I +shall feel most sensibly the loss of your presence at London, and can +form no more earnest wish than that your successor may acquire the same +influence of reason and good temper which you did exercise, and that it +may be applied with as salutary effect to the future discussions between +the two governments.” During his visit to London Mr. Gallatin was +overwhelmed with civilities. Canning was courteous to a degree, and +rarely a day passed that the American ambassador had not to choose +between half a dozen invitations to dinner. At the house of the Russian +minister, the Count de Lieven, he was always welcome, and the Countess +de Lieven, the autocrat of foreign society in London, without whose pass +no stranger could cross the sacred threshold of Almack's, was his fast +friend. To each circle he carried that which each most prized. Whether +the conversation turned upon government or science, the dry figures of +finance, or the more genial topic of diplomatic intrigue, Mr. Gallatin +was its easy master, and his words never fell on inattentive ears.<span class='pagenum'><a name="Page_349" id="Page_349">[Pg 349]</a></span></p> + +<p>With this mission to London Mr. Gallatin's diplomatic service closed. He +would have accepted the French mission in 1834, and so informed Van +Buren, but General Jackson, who was President, had his own plans, and +'ran his machine' without consulting other than his own prejudices or +whims. But although Mr. Gallatin was no longer in the field of +diplomacy, his counsels were eagerly sought. The northeastern boundary +was a troublesome question, indeed in the new phases of American +politics an imminent danger. The extension of the commercial relations +of Great Britain and the United States rendered it imperative that no +point of dispute should remain which could be determined. For two years +after his return from England, Mr. Gallatin was employed in the +preparation of an argument to be laid before the king of the +Netherlands, who had been selected as the arbiter between the United +States and Great Britain on the boundary. The king undertook to press a +conventional line, which the United States, not being bound to accept, +refused. In 1839 Mr. Gallatin prepared, and put before the world, a +statement of the facts in the case. This, revised, together with the +speech of Mr. Webster, a copy of the Jay treaty, and eight maps, he +published at his own expense in 1840.</p> + +<p>At this time conflicts on the Maine frontier brought the subject up in a +manner not to be ignored. Popular feeling was at high pitch. In this +condition of affairs Alexander Baring, who<span class='pagenum'><a name="Page_350" id="Page_350">[Pg 350]</a></span> had been raised to the +peerage as Lord Ashburton, was sent to America on a mission of +friendship and peace. As a young man he had listened to the debate on +Jay's treaty in 1795. He was now to be received by Webster in Washington +in the same spirit in which Grenville received Jay in London, when it +was mutually understood that they should discuss the matter as friends +and not as diplomatists, and leave their articles as records of +agreement, not as compromises of discord. Gallatin eagerly awaited the +arrival of his old friend, and was grievously disappointed when contrary +winds blew the frigate which carried him to Annapolis. Letters were +immediately exchanged; Lord Ashburton engaging before he left the +country to find Gallatin out, and, as he said, to “<i>draw a little wisdom +from the best well</i>.” After the treaty was signed, Lord Ashburton went +from Washington to New York, and the old friends met once more: Mr. +Gallatin was in his 82d year, but in the full possession of his +faculties; Lord Ashburton in his 68th year: a memorable meeting of two +great men, whose lives had much in common; the one the foremost banker +of England, the other the matchless financier of America; and to this +sufficient honor was added for each the singular merit of having +negotiated for his country the most important treaty in its relation to +the other since the separation of 1783,—Mr. Gallatin, the Treaty of +Ghent, which gave peace to America; Lord Ashburton, that treaty which +is<span class='pagenum'><a name="Page_351" id="Page_351">[Pg 351]</a></span> known by his name and which secured peace to Great Britain.</p> + +<p>In 1846 Mr. Gallatin rendered his last diplomatic service by the +publication of a pamphlet on the Oregon question, which was then as +threatening as that of the northeastern boundary had been. This +admirable exposition, which put before the people as well as the +negotiators the precise merits of the controversy, powerfully +contributed to the ultimate peaceful settlement.</p> + +<p>Still once more Mr. Gallatin threw his authoritative words into the +scale of justice. His last appearance in public had been when he +presided on April 24, 1844, at a meeting in New York city to protest +against the annexation of Texas. He then held that the resolution of the +House declaring the treaty of annexation between the United States of +America and the Republic of Texas to be the fundamental law of union +between them, without and against the consent of the Senate, was a +direct and undisguised usurpation of power and a violation of the +Constitution. In the storm of opposition he lifted his feeble voice in +condemnation of the violation of treaties, and the disregard of the +sacred obligations of mankind. “I am highly gratified,” were his final +words, "I am highly gratified that the last public act of a long life +should have been that of bearing testimony against this outrageous +attempt. It is indeed a consolation that my almost extinguished voice +has been on this occasion raised in defense of liberty,<span class='pagenum'><a name="Page_352" id="Page_352">[Pg 352]</a></span> of justice, and +of our country." Of the war with Mexico, he was wont to say, “that it +was the only blot upon the escutcheon of the United States.” Aged as he +was, he would not rest until he had made his last appeal for peace with +Mexico. He also prepared supplementary essays on war expenses: the first +of these was published in 1847, the second in 1848. For months all his +faculties, all his feelings were absorbed in this one subject. These +pamphlets were widely circulated by the friends of peace. The venerable +sage had the comfort of knowing that his words were not in vain. Peace +with Mexico was signed on February 2, 1848.</p> + +<hr style='width: 45%;' /> + +<p>Mr. Gallatin was no believer in the doctrine of 'manifest destiny,'—the +policy of bringing all North America into the occupation of a race +speaking the same language, and under a single government. On February +16, 1848, before news of the signature of the treaty at Guadalupe +Hidalgo, by Mr. Trist, the American negotiator, was known in New York, +Mr. Gallatin condemned this idea in a remarkable passage, in a letter to +Garrett Davis:—</p> + +<div class="blockquot"><p>“What shall be said of the notion of an empire extending from the +Atlantic to the Pacific and from the North Pole to the Equator? Of +the destiny of the Anglo-Saxon race, of its universal monarchy over +the whole of North America? Now, I will ask, which is the portion +of the globe that has attained the highest<span class='pagenum'><a name="Page_353" id="Page_353">[Pg 353]</a></span> degree of civilization +and even of power—Asia, with its vast empires of Turkey, India, +and China, or Europe divided into near twenty independent +sovereignties? Other powerful causes have undoubtedly largely +contributed to that result; but this, the great division into ten +or twelve distinct languages, must not be neglected. But all these +allegations of superiority of race and destiny neither require nor +deserve any answer. They are but pretences under which to disguise +ambition, cupidity, or silly vanity.”</p></div> + +<p>The justice of these reflections was assuredly borne out by the +experience of history, but manifest destiny takes no account of past +lessons.</p> + +<p>Before these lines of Mr. Gallatin were penned, on January 19, 1848, +gold was discovered in California. The announcement startled the world +and opened a new era, not only to Europe, but to mankind. Extending the +metallic basis, which no man better than Mr. Gallatin recognized and +held to be the true solvent of money transactions, it postponed for a +half century the inevitable conflict between capital and labor, the +first outbreaks of which in Europe had been with difficulty suppressed, +when the news of good tidings gave promise of unexpected relief. Credit +revived, new enterprises of colossal magnitude were undertaken, and the +demand for labor quickly exceeded the supply. Emigration to America rose +to incredible proportions. Had Mr. Gallatin lived, he would have found +new elements to be weighed in his nice balance of probabilities. He +would no longer, as<span class='pagenum'><a name="Page_354" id="Page_354">[Pg 354]</a></span> in 1839, have been compelled to say that “specie is +a foreign product,” but would have given to us inestimable advice as to +the proper use to be made of the vast sums taken out from our own soil. +He would have been also brought to face the ethnologic problem of a +continent inhabited by a single race, not Anglo-Saxon, nor Teutonic, nor +yet Latin, but a composite race in which all these will be merged and +blended; a new American race which, springing from a broader surface, +shall rise to higher summits of intellectual power and, with a greater +variety of natural qualities, achieve excellence in more numerous ways. +This vision was denied to Mr. Gallatin. He died at the threshold of the +new era—of the golden age. A half century has not passed since his +death, and the United States has taken from her soil a value of over +three thousand millions of dollars, in gold and silver (gold two +thousand millions, silver one thousand millions), more than two thirds +of the total amount estimated by Mr. Gallatin as the store of Europe in +1839; and has also added to her population, by immigration alone, ten +millions of people, of whom but a small proportion are of the +Anglo-Saxon race.<span class='pagenum'><a name="Page_355" id="Page_355">[Pg 355]</a></span></p> + +<div class="footnotes"><h3>FOOTNOTES:</h3> + +<div class="footnote"><p><a name="Footnote_19_19" id="Footnote_19_19"></a><a href="#FNanchor_19_19"><span class="label">[19]</span></a> <i>Life of Albert Gallatin</i>, p. 546.</p></div> + +<div class="footnote"><p><a name="Footnote_20_20" id="Footnote_20_20"></a><a href="#FNanchor_20_20"><span class="label">[20]</span></a> The frigate Chesapeake was captured by the British +man-of-war Leopard in June, 1807.</p></div> + +<div class="footnote"><p><a name="Footnote_21_21" id="Footnote_21_21"></a><a href="#FNanchor_21_21"><span class="label">[21]</span></a> A translation of this work, <i>Economie Politique</i>, was +published under Jefferson's supervision in 1818.</p></div> +</div> + +<hr style="width: 65%;" /> +<h2><a name="CHAPTER_IX" id="CHAPTER_IX"></a>CHAPTER IX<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>CANDIDATE FOR THE VICE-PRESIDENCY</h3> + +<p>During the twelve years that Mr. Gallatin was in the Treasury he was +continually looking for some man who could take his place in that +office, and aid in the direction of national politics; to use his own +words, “who could replace Mr. Jefferson, Mr. Madison, and himself.” +Breckenridge of Kentucky only appeared and died. The eccentricities of +John Randolph unfitted him for leadership. William H. Crawford of +Georgia, Monroe's secretary of the treasury, alone filled Gallatin's +expectations. To a powerful mind Crawford “united a most correct +judgment and an inflexible integrity. Unfortunately he was neither +indulgent nor civil, and, consequently, was unpopular.” Andrew Jackson, +Gallatin said, “was an honest man, and the idol of the worshipers of +military glory, but from incapacity, military habits, and habitual +disregard of laws and constitutional provisions, entirely unfit for the +office of president.” John C. Calhoun he looked upon as “a smart fellow, +one of the first amongst second-rate men, but of lax political +principles and an inordinate ambition, not over-delicate in the means of +satisfying itself.”<span class='pagenum'><a name="Page_356" id="Page_356">[Pg 356]</a></span> Clay he considered to be a man of splendid talents +and a generous mind; John Quincy Adams to be 'wanting to a deplorable +degree in that most essential quality, a sound and correct judgment.'</p> + +<p>The contest lay between Adams and Crawford. Crawford was the choice of +Jefferson and Madison as well as of Gallatin. The principles of the +Republican party had so changed that Nathaniel Macon could say in 1824, +in reply to a request from Mr. Gallatin to take part in a caucus for the +purpose of forwarding Mr. Crawford's nomination, that there were “not +five members of Congress who entertained the opinions which those did +who brought Mr. Jefferson into power.” But Macon was of the Brutus stamp +of politicians; of that stern cast of mind which does not 'alter when it +alteration finds or bend with the remover to remove,' and held yielding +to the compulsion of circumstances to be an abandonment of principle.</p> + +<p>Jefferson still held the consolidation of power to be the chief danger +of the country, and the barrier of state rights, great and small, to be +its only protection even against the Supreme Court. Gallatin took +broader ground, and found encouragement in the excellent working of +universal suffrage in the choice of representatives to legislative +bodies. But he was opposed to the extension of the principle to +municipal officers having the application of the proceeds of taxes, +forgetting that universal suffrage is the lever by which capital is +moved to educate labor and relieve it from the<span class='pagenum'><a name="Page_357" id="Page_357">[Pg 357]</a></span> burdens of injury, +disease, and physical incapacity at the expense of the whole. Without +stopping to argue these debatable questions, Mr. Gallatin, with +practical statesmanship, determined to maintain in power the only agency +by which he could at all shape the political future, and he threw +himself into the canvass with zeal.</p> + +<p>Crawford had unfortunately been stricken with paralysis, and the choice +of a vice-president became a matter of grave concern. Mr. Gallatin was +selected to take this place on the ticket. To this tender he replied +that he did not want the office, but would dislike to be proposed and +not elected, and he honestly felt that as a foreigner and a residuary +legatee of Federal hatred his name could not be of much service to the +cause. Still, he followed the only course by which any party can be held +together, and surrendered his prejudices and fears to the wishes of his +friends. The Republican caucus met on February 14, 1824, in the chamber +of the House of Representatives. Of the 216 members of the party only 66 +attended. Martin Van Buren, then senator from New York, managed this, +the last congressional caucus for the selection of candidates.</p> + +<p>The solemnity given to the congressional nominations, and the publicity +of the answers of candidates, Mr. Gallatin held to be political +blunders. In fact the plan was adroitly denounced as an attempt to +dictate to the people.</p> + +<p>Crawford was nominated for president by 64<span class='pagenum'><a name="Page_358" id="Page_358">[Pg 358]</a></span> votes, Gallatin for +vice-president by 57. This nomination Mr. Gallatin accepted in a note to +Mr. Ruggles, United States senator, on May 10, 1824. But there were +elements of which party leaders of the old school had not taken +sufficient account. Macon was right when he said that “every generation, +like a single person, has opinions of its own, as much so in politics as +anything else,” and that 'the opinions of Jefferson and those who were +with him were forgotten.' And Jefferson himself, in his complacent +reflection that even the name of Federalist was “extinguished by the +battle of New Orleans,” did not see that the Republican party of the old +school had been snuffed out by the same event. The new democracy, whose +claims to rule were based, not on the policy of peace or restricted +powers, but on the seductive glitter of military glory, was in the +ascendant, and General Jackson was the favorite of the hour. New +combinations became necessary, and Mr. Gallatin was requested to +withdraw from the ticket, and make room for Mr. Clay, whose great +western influence it was hoped would save it from defeat. This he gladly +did in a declaration of October 2, addressed to Martin Van Buren, dated +at his Fayette home, and published in the “National Intelligencer.” The +result of the election was singular. Calhoun was elected vice-president +by the people. The presidential contest was decided in the House, Adams +being chosen over Jackson and Crawford, by the influence of Clay. Mr. +Gallatin<span class='pagenum'><a name="Page_359" id="Page_359">[Pg 359]</a></span> quickly discerned in the failure of the people to elect a +president the collapse of the Republican party. He considered it as +“fairly defunct.”</p> + +<p>Jackson had already announced the startling doctrine that no regard was +to be had to party in the selection of the great officers of government, +which Mr. Gallatin considered as tantamount to a declaration that +principles and opinions were of no importance in its administration. To +lose sight of this principle was to substitute men for measures. +Jackson's idea of party, however, was personal fealty. He engrafted the +<i>pouvoir personnel</i> on the Democratic party as thoroughly as Napoleon +could have done in his place. Moreover, Gallatin considered Jackson's +assumption of power in his collisions with the judiciary at New Orleans +and Pensacola, and his orders to take St. Augustine without the +authority of Congress, as dangerous assaults upon the Constitution of +the country and the liberties of the people, and he dreaded the +substitution of the worship of a military chieftain for the maintenance +of that liberty, the last hope of man. Ten years later he uttered the +same opinion in a conversation with Miss Martineau, and he expressed a +preference for an annual president, a cipher, so that all would be done +by the ministry. But in the impossibility of this plan, he would have +preferred a four years' term without renewal or an extension of six +years; an idea adopted by Davis in his plan of disintegration by +secession. The presidency, Mr. Gal<span class='pagenum'><a name="Page_360" id="Page_360">[Pg 360]</a></span>latin thought, was “too much power +for one man; therefore it fills all men's thoughts to the detriment of +better things.”</p> + +<p>When Mr. Gallatin visited Washington in 1829, he found a state of +society, political and social, widely at variance with his own +experience. The ways of Federalist and Republican cabinets were +traditions of an irrevocable past. Jackson was political dictator, and +took counsel only from his prejudices. The old simplicity had given way +to elegance and luxury of adornment. The east room of the presidential +mansion was covered with Brussels carpeting. There were silk curtains at +the windows, French mirrors of unusual size, and three splendid English +crystal chandeliers. In the dining-room were a hundred candles and +lamps, and silver plate of every description, and presiding over this +magnificence the strange successors of Washington and his stately dame, +of Madison and his no less elegant wife,—the Tennessee backwoodsman and +Peggy O'Neil.</p> + +<p>When, it is not too soon to ask, in the general reform of civil service, +shall the possibility of such anomalies be entirely removed by +restricting the executive mansion to an executive bureau, and entirely +separating social ceremony from official state, to the final suppression +of back stairs influence and kitchen cabinets?<span class='pagenum'><a name="Page_361" id="Page_361">[Pg 361]</a></span></p> + +<h2><a name="CHAPTER_X" id="CHAPTER_X"></a>CHAPTER X<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>SOCIETY—LITERATURE—SCIENCE</h3> + +<p>Mr. Gallatin's land speculations were not profitable. His plan of Swiss +colonization did not result in any pecuniary advantage to himself. His +little patrimony, received in 1786, he invested in a plantation of about +five hundred acres on the Monongahela. Twelve years later, in 1798, he +was neither richer nor poorer than at the time of his investment. The +entire amount of claims which he held with Savary he sold in 1794, +without warranty of title, to Robert Morris, then the great speculator +in western lands, for four thousand dollars, Pennsylvania currency. This +sum, his little farm, and five or six hundred pounds cash were then his +entire fortune. In 1794, the revolution in Switzerland having driven out +numbers of his compatriots, he formed a plan of association consisting +of one hundred and fifty shares of eight hundred dollars each, of which +the Genevans in Philadelphia, Odier, Fazzi, the two Cazenove, Cheriot, +Bourdillon, Duby, Couronne, Badollet, and himself took twenty-five each. +Twenty-five were offered to Americans, which were nearly all taken up, +and one hundred were sent to Geneva,<span class='pagenum'><a name="Page_362" id="Page_362">[Pg 362]</a></span> Switzerland, to D'Yvernois and his +friends. The project was to purchase land, and Mr. Gallatin had decided +upon a location in the northeast part of Pennsylvania, or in New York, +on the border. In the summer Gallatin made a journey through New York to +examine lands with the idea of occupation. In July, 1795, he made a +settlement with Mr. Morris, taking his notes for three thousand five +hundred dollars. Balancing his accounts, Mr. Gallatin then found himself +worth seven thousand dollars, in addition to which he had about +twenty-five thousand acres of waste lands and the notes of Mr. Morris. +In 1798 Mr. Morris failed, and, under the harsh operations of the old +law, was sent to jail. Mr. Gallatin never recovered the three thousand +dollars owed to him in the final balance of his real estate operations.</p> + +<p>After Mr. Gallatin left the Treasury he located patents for seventeen +hundred acres of Virginia military lands in the State of Ohio, on +warrants purchased in 1784. In 1815 he valued his entire estate, +exclusive of his farm on the Monongahela, at less than twelve thousand +dollars. Forty years later he complained of his investment as a +troublesome and unproductive property, which had plagued him all his +life. Besides the purchase of lands, Mr. Gallatin invested part of his +little capital in building houses on his farm, and in the country store +which Badollet managed. The one yielded no return, and the sum put in +the other was lost through the incompetency of his honest<span class='pagenum'><a name="Page_363" id="Page_363">[Pg 363]</a></span> but +inexperienced friend. His wife brought him a small property, but at no +time in his life was he possessed of more than a modest competency. But +he had never any discontent with his fortune nor any desire to be rich.</p> + +<p>Mrs. Gallatin, who had always until her marriage lived in cities, was +entirely unfit for frontier life. In these days of railroads it is not +easy to measure the isolation of their country home. Pittsburgh was +nearly five days' journey from Philadelphia, and the crossing of the +Alleghanies took a day and a half more. Before his marriage Mr. Gallatin +had seen very little of society. Though in early manhood he felt no +embarrassment among men, he said 'that he never yet was able to divest +himself of an anti-Chesterfieldian awkwardness in mixed companies.' He +did not take advantage of his residence in Philadelphia to accustom +himself to the ways of the world. There he lived in lodgings and met the +leading public characters of both parties. But when he took his seat in +the cabinet, he found it necessary to enter upon housekeeping and to +take a prominent part in society, for which his wife was admirably +suited, both by temperament and education. Washington Irving wrote of +her in November, 1812, that she was 'the most stylish woman in the +drawing-room that session, and that she dressed with more splendor than +any other of the noblesse;' and again the same year compared her with +the wife of the President, whose courtly manners and consummate tact<span class='pagenum'><a name="Page_364" id="Page_364">[Pg 364]</a></span> +and grace are a tradition of the republican court. “Tell your good +lady,” mother Irving wrote to James Renwick, “that Mrs. Madison has been +much indisposed, and at last Wednesday's evening drawing-room Mrs. +Gallatin presided in her place. I was not present, but those who were +assure me that she filled Mrs. Madison's chair to a miracle.” This is in +the sense of dignity, for Mrs. Gallatin was of small stature.</p> + +<p>Mr. Gallatin's house shared the fate of the public buildings and was +burned by the British when Washington was captured in 1814. He was then +abroad on the peace mission. On his return from France Mr. Gallatin made +one more attempt to realize his early idea of a country home, and with +his family went in the summer of 1823 to Friendship Hill. Here an Irish +carpenter built for him a house which he humorously described as being +in the 'Hyberno-teutonic style,—the outside, with its port-hole-looking +windows, having the appearance of Irish barracks, while the inside +ornaments were similar to those of a Dutch tavern, and in singular +contrast to the French marble chimney-pieces, paper, mirrors, and +billiard-table.' In the summer Friendship Hill was an agreeable +residence, but Mr. Gallatin found it in winter too isolated even for his +taste.</p> + +<p>One exciting circumstance enlivened the spring of 1825. This was the +passage of Lafayette, the guest of the nation, through western +Pennsylvania on his famous tour. Mr. Gallatin welcomed him<span class='pagenum'><a name="Page_365" id="Page_365">[Pg 365]</a></span> in an +address before the court-house of Uniontown, the capital of Fayette +County, on May 26. In his speech Mr. Gallatin reviewed the condition of +the liberal cause in Europe, and the emancipation of Greece, then +agitating both continents. In this all scholars as well as all liberals +were of one mind and heart. After the proceedings Lafayette drove with +Mr. Gallatin to Friendship Hill, where he passed the night; crowds of +people pouring down the valley from the mountain roads to see the +adopted son of the United States, the friend of Washington, the +liberator of France. The intimacy between these two great men, who had +alike devoted the flower of their youth to the interests of civilization +and the foundation of the new republic, was never broken.</p> + +<p>Mr. Gallatin passed only one winter at New Geneva. On his return from +his last mission to England he settled permanently in New York, and in +1828 took a house at No. 113 Bleecker Street, then in the suburbs of the +city. He wrote to Badollet in March, 1829, that "it was an ill-contrived +plan to think that the banks of the Monongahela, where he was perfectly +satisfied to live and die in retirement, could be borne by the female +part of his family, or by children brought up at Washington and Paris." +The population of New York has always been migratory, and Mr. Gallatin +was no exception to the rule. In the ten years which followed his first +location he changed his residence on four May days, finally settling at<span class='pagenum'><a name="Page_366" id="Page_366">[Pg 366]</a></span> +No. 57 Bleecker Street, nearly opposite to Crosby Street. His life in +New York is a complete period in his intellectual as in his physical +existence, and the most interesting of his career. His last twenty years +were in great measure devoted to scientific studies.</p> + +<p>The National Bank, over which he presided for the first ten years, took +but a small part of his time. The remainder was given up to study and +conversation, an art in which he had no superior in this country and +probably none abroad. Soon after his arrival in New York, Mr. Gallatin +was chosen a member of “The Club,” an association famous in its day. As +no correct account of this social organization has ever appeared, the +letter of invitation to Mr. Gallatin is of some interest. It was written +by Dr. John Augustine Smith, on November 2, 1829. An extract gives the +origin of the club.</p> + +<div class="blockquot"><p>“Nearly two years ago some of the literary gentlemen of the city, +feeling severely the almost total want of intercourse among +themselves, determined to establish an association which should +bring them more frequently into contact. Accordingly they founded +the 'Club' as it is commonly called, and which I believe I +mentioned to you when I had the pleasure of seeing you in Bond +Street. Into this 'Club' twelve persons only are admitted, and +there are at present three gentlemen of the Bar, Chancellor Kent, +Messrs. Johnston and Jay, three professors of Columbia College, +Messrs. McVickar, Moore, and Renwick, the Rev. Drs. Wain<span class='pagenum'><a name="Page_367" id="Page_367">[Pg 367]</a></span>wright and +Mathews, the former of the Episcopal Church, the latter of the +Presbyterian Church, two merchants, Messrs. Brevoort and Goodhue, +and I have the honor to represent the medical faculty. Our twelfth +associate was Mr. Morse, of the National Academy of Design, of +which he was president, and his departure for Europe has caused a +vacancy. For agreeableness of conversation there is nothing in New +York at all comparable to our institution. We meet once a week; no +officers, no formalities; invitations, when in case of intelligent +and distinguished strangers, and after a plain and light repast, +retire about eleven o'clock.”</p></div> + +<p>At this club Mr. Gallatin, with his wonderful conversational powers, +became at once the centre of interest. The club met at the houses of +members in the winter evenings. There was always a supper, but the rule +was absolute that there should be only one hot dish served, a regulation +which the ladies endeavored to evade when the turn of their husbands +arrived to supply the feast. Among the later members were Professor +Anderson, John A. Stevens, Mr. Gallatin's countryman De Rham, John +Wells, Samuel Ward, Gulian C. Verplanck, and Charles King. No literary +symposium in America was ever more delightful, more instructive, than +these meetings. On these occasions Mr. Gallatin led the conversation, +which usually covered a wide field. His memory was marvelous, and his +personal acquaintance with the great men who were developed by the +French Revolution, emperors and princes, heroes, states<span class='pagenum'><a name="Page_368" id="Page_368">[Pg 368]</a></span>men, and men of +science, gave to the easy flow of his speech the zest of anecdote and +the spice of epigram. Once heard he was never forgotten. And this rare +faculty he preserved undiminished to the close of his life. Washington +Irving, himself the most genial of men, and the most graceful of +talkers, wrote of him, after meeting him at dinner, in 1841: “Mr. +Gallatin was in fine spirits and full of conversation. He is upwards of +eighty, yet has all the activity and clearness of mind and gayety of +spirits of a young man. How delightful it is to see such intellectual +and joyous old age: to see life running out clear and sparkling to the +last drop! With such a blessed temperament one would be content to +linger and spin out the last thread of existence.”</p> + +<p>At the close of the year 1829 Mr. Gallatin attempted to carry out his +old and favorite plan of the “establishment of a general system of +rational and practical education fitted for all, and gratuitously open +to all.” The want of an institution for education, combining the +advantages of a European university with the recent improvements in +instruction, was seriously felt. New York, already a great city, and +rapidly growing, offered the most promising field for the national +university on a broad and liberal foundation correspondent to the spirit +of the age. The difficulty of obtaining competent teachers of even the +lower branches of knowledge in the public schools, the system of which +was in its infancy, was great. Persons<span class='pagenum'><a name="Page_369" id="Page_369">[Pg 369]</a></span> could be found with learning +enough, but they were generally deficient in the art of teaching. +Governor Throop noticed this deficiency in his message of January, 1830, +without, however, the recommendation of any remedy by legislation. The +existing colleges could not supply the want. At this period religious +prejudice controlled the actions of men in every walk of life; for the +old colonial jealousies of Episcopalian and Presbyterian survived the +Revolution. The religious distrust of scientific investigation was also +at its height. Columbia College, the successor of old King's College, +was governed in the Episcopalian interest. Private zeal could alone be +relied upon to establish the new enterprise on a foundation free from +the influence of clergy; an indispensable condition of success. These +were the views of Mr. Jefferson in 1807. These were the views of Mr. +Gallatin. In response to his request abundant subscriptions in money and +material were at once forthcoming.</p> + +<p>The project of a national university at New York was received by the +literary institutions of the United States with great enthusiasm. In +October, 1830, a convention of more than a hundred literary and +scientific gentlemen, delegates from different parts of the country, and +of the highest distinction, was held in the common-council chamber. The +outcome of their deliberations was the foundation of the New York +University. Mr. Gallatin was the president of the first council, but<span class='pagenum'><a name="Page_370" id="Page_370">[Pg 370]</a></span> +his connection with the institution was of short continuance. The +reasons for his withdrawal were set forth in a letter to his old friend, +John Badollet, written February 7, 1833. Beginning with an expression of +his desire to devote what remained of his life “to the establishment in +this immense and growing city (New York) of a general system of rational +and practical education fitted for all and gratuitously opened to all,” +he said, “but finding that the object was no longer the same, that a +certain portion of the clergy had obtained the control, and that their +object, though laudable, was special and quite distinct from mine, I +resigned at the end of one year rather than to struggle, probably in +vain for what was nearly unattainable.” The history of the university +through its precarious existence of half a century amply justifies Mr. +Gallatin's previsions and retirement. Instead of an American Sorbonne, +of which he dreamed, it has never been more than a local institution, +struggling to hold a place in a crowded field.</p> + +<p>Mr. Gallatin followed the evolutions of French politics with interest. +His friend Lafayette, who, during the Empire, lived in almost enforced +retirement at his estate of La Grange, was a voluntary exile from the +court of Charles X., whose autocratic principles and aggressive course +were rapidly driving France into fresh revolution. In July, 1830, the +crisis was precipitated by the royal decrees published in the +“Moniteur.” Lafayette,<span class='pagenum'><a name="Page_371" id="Page_371">[Pg 371]</a></span> who was on his estate, hurried instantly to +Paris, where he became a rallying point, and himself signed the note to +the king, announcing that he had ceased to reign. In September following +it fell to him to write to Mr. Gallatin on the occasion of the marriage +of Gallatin's daughter. In this union Lafayette had a triple interest. +Besides his personal attachment for Mr. Gallatin, each of the young +couple was descended from one of his old companions-in-arms. The groom, +Mr. Byam Kerby Stevens, was a son of Colonel Ebenezer Stevens, of the +continental service, who was Lafayette's chief of artillery in his +expedition against Arnold in Virginia, in the spring of 1781; the bride, +Frances Gallatin, was, on the mother's side, the granddaughter of +Commodore James Nicholson, who commanded the gunboats which, improvised +by Colonel Stevens, drove out the British vessels from Annapolis Bay and +opened the route to the blockaded American flotilla.<a name="FNanchor_22_22" id="FNanchor_22_22"></a><a href="#Footnote_22_22" class="fnanchor">[22]</a></p> + +<div class="blockquot"><p>“<span class="smcap">Paris</span>, <i>September</i> 8, 1830.</p> + +<p>“<span class="smcap">My Dear Friend</span>:—A long time has elapsed since I had the pleasure +to hear from you. I need not, I hope, add, that my affectionate +feelings have been continually with you, especially in what related +to my young friend whose change of name has more deeply interested +every member, and in a very particular manner, the younger part of +the family. Let me hear of you all, and receive my tender regards +and wishes, with those of my children and grandchildren. + <span class="smcap">Lafayette</span>.”<span class='pagenum'><a name="Page_372" id="Page_372">[Pg 372]</a></span></p></div> + +<p>Both of the young people had the honor of Lafayette's acquaintance,—Mr. +Stevens during a visit to Paris, and Miss Gallatin during her father's +residence there as minister, when she was much admired, and was, in the +words of Madame Bonaparte (Miss Patterson), 'a beauty.' In this letter +Lafayette gives a picturesque account of the three days' fighting at the +barricades, and of the departure of the ex-king and the royal army, +accompanied by “some twenty thousand Parisians, in coaches, hacks, and +omnibus.... The royal party, after returning the jewels of the crown, +went slowly to Cherbourg with their own escort, under the protection of +three commissioners, and were there permitted quietly to embark for +England.”</p> + +<p>In 1834 Mr. Gallatin's sympathies were greatly excited by the arrival at +New York of a number of Poles, many of them educated men, and among them +Etsko, a nephew of Kosciusko. A public committee was raised, called the +Polish committee, of which Mr. Gallatin was chosen chairman. Besides +superintending the collection of funds, he arranged and carried out in +the minutest details a plan to quarter the exiles upon the inhabitants. +A list of names ending in <i>ski</i> still remains among his papers; to each +was assigned a number, and they were allotted by streets and +numbers,—number 182, one Szelesegynski, was taken by Mr. Gallatin +himself, to look after horses. These unfortunate men were then +distributed through the<span class='pagenum'><a name="Page_373" id="Page_373">[Pg 373]</a></span> country, as occupations could be found. In +October Mr. Gallatin's notes show that all had been provided for except +fourteen boys, for whom a subscription was taken up. A tract of land in +Illinois was assigned by Congress to these political exiles.</p> + +<p>Mr. Gallatin's first acquaintance with the American Indian was made at +Machias. In the neighborhood of this frontier town, across the Canadian +border, there were still remnants of the Abenaki and Etchemin tribes. +They were French in sympathy, and all converts to the Roman Catholic +faith. Mr. Lesdernier, with whom Gallatin lodged, had influence over +them from the trade he established with them in furs, and as their +religious purveyor. He had paid a visit to Boston at the time the French +fleet was there in 1781, and brought home a Capuchin priest for their +service. To the young Genevan, brought up in the restrictions of +European civilization, the history of the savage was a favorite study. +In the winter evenings, in the quiet of the log hut, with the aid of one +familiar with the customs and traditions of the race, the foundations +were laid of a permanent interest in this almost untrodden branch of +human science. The Canadian Indians, however, hemmed in by French and +English settlements, were semi-civilized. The Miamis and Shawnees, who +ranged the valley of the Ohio, were the tribes nearest to Gallatin's +home on the Monongahela. These, though for a long time under the +influence of the<span class='pagenum'><a name="Page_374" id="Page_374">[Pg 374]</a></span> French, retained their original wildness, and were, +during the first years of his residence, the dread of the frontier.</p> + +<p>The interest aroused in the mind of Mr. Gallatin by personal observation +was quickened by his intimacy with Jefferson, whose “Notes on Virginia,” +published in 1801, contained the first attempt at a classification and +enumeration of American tribes. The earlier work of Colden was confined +to the Five Nations of the Iroquois Confederacy. The arrangement of the +Louisiana territory, ceded by France, brought Mr. Gallatin into contact +with Pierre Louis Chouteau, and an intimacy formed with John Jacob +Astor, who was largely concerned in the fur trade of the Northwest, +widened the field of interest, which included the geography of the +interior and the customs of its inhabitants. Mr. Gallatin's examination +of the subject was general, however, and did not take a practical +scientific turn until the year 1823, when, at the request of Baron +Alexander von Humboldt, he set forth the results of his studies in the +form of a Synopsis of the Indian tribes. This essay, communicated by +Humboldt to the Italian geographer Balbi, then engaged upon his "Atlas +Ethnographique du Globe,"—a classification by languages of ancient and +modern peoples,—was quoted by him in his volume introductory to that +remarkable work published in 1826, in a manner to attract the attention +of the scientific world. Vater, in his “Mithridates,” first at<span class='pagenum'><a name="Page_375" id="Page_375">[Pg 375]</a></span>tempted a +classification of the languages of the globe, but the work of Mr. +Gallatin, though confined in subject, was original in its conception and +treatment. In the winter of 1825-26 a large gathering of southern +Indians at Washington enabled him to obtain good vocabularies of several +of the tribes. Uniting these to those already acquired, he published a +table of all the existing tribes, and at the same time, at his instance, +the War Department circulated through its posts a vocabulary containing +six hundred words of verbal forms and of selected sentences, and a +series of grammatical queries, to which answers were invited. He also +opened an elaborate correspondence with such persons as were best +acquainted with the Indian tribes in different sections of the +country.<a name="FNanchor_23_23" id="FNanchor_23_23"></a><a href="#Footnote_23_23" class="fnanchor">[23]</a> The replies<span class='pagenum'><a name="Page_376" id="Page_376">[Pg 376]</a></span> to these various queries were few in number, +but the practical plan, adhered to in substance, has resulted in the +collection by the Smithsonian Institution of a very large number of +Indian vocabularies.<a name="FNanchor_24_24" id="FNanchor_24_24"></a><a href="#Footnote_24_24" class="fnanchor">[24]</a></p> + +<p>This class of investigation, in its ample scope for original research +and the ascertainment of principles by analysis and analogic expression, +was peculiarly agreeable to Mr. Gallatin. His friend, du Ponceau,<a name="FNanchor_25_25" id="FNanchor_25_25"></a><a href="#Footnote_25_25" class="fnanchor">[25]</a> +who served in the American war as the secretary of Steuben, and was now +<span class='pagenum'><a name="Page_377" id="Page_377">[Pg 377]</a></span>established in Philadelphia, was likewise deeply engaged in philologic +studies; in 1819 he had published a memoir of the construction of the +languages of the North American Indians, which he followed later with +other papers of a similar nature, among which were a “Grammar of the +Languages of the Lenni Lenape or Delaware Indians,” and a memoir on the +grammatical system of the languages of the Indian tribes of North +America, a learned and highly instructive paper, which took the Volney +prize at Paris.</p> + +<p>In 1836 Mr. Gallatin's original paper, contributed to Balbi, amplified +by subsequent acquisitions, was published by the American Antiquarian +Society of Worcester, in the first volume of its Transactions. It was +entitled “A Synopsis of the Indian Tribes, within the United States east +of the Rocky Mountains, and in the British and Russian Possessions in +North America.” This elaborate inquiry, the foundation of the science in +America, was intended originally to embrace all the tribes north of the +Mexican semi-civilized nations. From the want of material, however, it +was confined at the southward to the territory of the United States, and +eastward of the Rocky Mountains. It included eighty-one tribes, divided +into twenty-eight families, and was accompanied by a colored map, with +tribal indications. The result of the investigation Mr. Gallatin held to +be proof that all the languages, not only of our own Indian tribes, but +of the nations inhabiting America from the Arctic<span class='pagenum'><a name="Page_378" id="Page_378">[Pg 378]</a></span> Ocean to Cape Horn, +have a distinct character common to all. This paper attracted great +attention in Europe. It was reviewed by the Count de Circourt, whose +interest in the subject was heightened by personal acquaintance with the +author. John C. Calhoun, acknowledging receipt of a copy of the +Synopsis, said in striking phrase 'that he had long thought that the +analogy of languages is destined to recover much of the lost history of +nations just as geology has of the globe we inhabit.'</p> + +<p>In 1838, Congress having accepted the trust of John Smithson of +£100,000, and pledged the faith of the United States for its purposes, +Mr. Forsyth, the secretary of state, addressed Mr. Gallatin, at the +request of the President, requesting his views as to its proper +employment; but Mr. Gallatin does not appear to have answered the +communication. The programme of the Smithsonian Institution, inclosed to +the board of regents in its first report, stated its object to be the +increase and diffusion of knowledge, and bears marks of the general +views which Mr. Gallatin had for many years urged on public attention. +The first of the Smithsonian “Contributions to Knowledge” was the memoir +of Ancient Monuments of the Mississippi Valley, by Squier and Davis. +Before its publication was undertaken, however, it was submitted to the +Ethnological Society. Mr. Gallatin returned it, with the approval of the +society, and some words of commendation of his own addressed<span class='pagenum'><a name="Page_379" id="Page_379">[Pg 379]</a></span> to +Professor Henry, the learned superintendent of the Smithsonian +Institution.</p> + +<p>The period of temporary political repose, which followed the peace of +Vienna and the establishment of the balance of power by the allied +sovereigns, was an era in human knowledge. Science made rapid progress, +and in its turn showed the broad and liberal influence of the great +revolution. In 1842 societies were founded in Paris and London to +promote the study of ethnology. Mr. Gallatin would not be behindhand in +this important work for which America offered a virgin field. Drawing +about him a number of gentlemen of similar tastes with his own, he +founded in New York, in 1842, the American Ethnological Society. Among +his associates were Dr. Robinson, the famous explorer of Palestine, +Schoolcraft, Bartlett, and Professor Turner, noted for their researches +in the history and languages of the Indian races. Messrs. Atwater, +Bradford, Hawks, Gibbs, Mayer, Dr. Morton, Pickering, Stephens, Ewbank, +and Squier were also, either in the beginning or soon after, members of +this select and learned institution, of which Mr. Gallatin was the +central figure. One of its members said in 1871, 'Mr. Gallatin's house +was the true seat of the society, and Mr. Gallatin himself its +controlling spirit. His name gave it character, and from his purse +mainly was defrayed the cost of the two volumes of the “Transactions” +which constitute about the only claim the society possesses to the +respect of the scientific world.'<span class='pagenum'><a name="Page_380" id="Page_380">[Pg 380]</a></span> To the first of these volumes, +published in 1845, Mr. Gallatin contributed an “Essay on the +semi-civilized nations of Mexico and Central America, embracing +elaborate notes on their languages, numeration, calendars, history, and +chronology, and an inquiry into the probable origin of their +semi-civilization.” In this he included all existing certain knowledge +of the languages, history, astronomy, and progress in art of these +peoples. A copy of this work he sent to General Scott, then in the city +of Mexico after his triumphant campaign, inclosing a memorandum which he +urged the general to hand to civilians attached to the army. This was a +request to purchase books, copies of documents, printed grammars, and +vocabularies of the Mexican languages, and he authorized the general to +spend four hundred dollars in this purpose on his account. In the second +volume, published in 1848, he printed the result of his continued +investigations on the subject which first interested him, as an +introduction to a republication of a work by Mr. Hale on the “Indians of +Northwest America.” This consisted of geographical notices, an account +of Indian means of subsistence, the ancient semi-civilization of the +Northwest, Indian philology, and analogic comparisons with the Chinese +and Polynesian languages. These papers Mr. Gallatin modestly described +to Chevalier as the 'fruits of his leisure,' and to Sismondi he wrote +that he had not the requisite talent for success in literature or +science. They nevertheless entitle him to the hon<span class='pagenum'><a name="Page_381" id="Page_381">[Pg 381]</a></span>orable name of the +Father of American Ethnography.</p> + +<p>In 1837 Mr. Wheaton, the American minister at Berlin, requested Mr. +Gallatin to put the Baron von Humboldt in possession of authentic data +concerning the production of gold in the United States. Humboldt had +visited the Oural and Siberian regions in 1829, at the request of the +Emperor of Russia, to make investigations as to their production of the +precious metals. Mr. Gallatin was the only authority in the United +States on the subject. Later von Humboldt wrote to Mr. Gallatin of the +interest felt abroad, and by himself, in the gold of the mountains of +Virginia and Tennessee, a country which rivaled on a small scale the +Dorado of Siberia. The treasures of the Pacific coast were not yet +dreamed of.</p> + +<p>Mr. Gallatin perfectly understood the range of his own powers. He said +of himself:—</p> + +<div class="blockquot"><p>“If I have met with any success, either in public bodies, as an +executive officer, or in foreign negotiations, it has been +exclusively through a patient and most thorough investigation of +all the attainable facts, and a cautious application of these to +the questions under discussion.... Long habit has given me great +facility in collating, digesting, and extracting complex documents, +but I am not hasty in drawing inferences; the arrangement of the +facts and arguments is always to me a considerable labor, and +though aiming at nothing more than perspicuity and brevity, I am a +very slow writer.”</p></div> + +<p>Mr. Gallatin's manuscripts and drafts show long<span class='pagenum'><a name="Page_382" id="Page_382">[Pg 382]</a></span> and minute labor in +their well considered and abundant alterations. Referring on one +occasion to his habit of reasoning, Mr. Gallatin remarked, that of all +processes that of analogy is the most dangerous, yet that which he +habitually used; that it required the greatest possible number of facts. +This is the foundation of philology, and his understanding of its method +and its dangers is the reason of his success in this branch of science.</p> + +<p>The difficulty experienced in establishing any literary or scientific +institutions in New York was very great. An effort made in 1830, which +Mr. Gallatin favored, to establish a literary periodical failed, not on +account of the pecuniary difficulties, but from the impossibility of +uniting a sufficient number of able coöperators. But Mr. Gallatin's +interest in literature was not as great as in science.<a name="FNanchor_26_26" id="FNanchor_26_26"></a><a href="#Footnote_26_26" class="fnanchor">[26]</a></p> + +<p>In 1841 a national institution for the promotion of science was +organized at Washington. The coöperation of Mr. Gallatin was invited, +but the society had a short existence. In 1843 Mr. Gallatin was chosen +president of the New York Historical Society. His inaugural address is +an epitome of political wisdom. Pronounced at any crisis of our history, +it would have become a text for the student. In this sketch he analyzed +the causes which contributed to form our national<span class='pagenum'><a name="Page_383" id="Page_383">[Pg 383]</a></span> character and to +establish a government founded on justice and on equal rights. He showed +how, united by a common and imminent danger, the thirteen States +succeeded in asserting and obtaining independence without the aid of a +central and efficient government, and the difficulties which were +encountered when a voluntary surrender of a part of their immense +sovereignty became necessary as a condition of national existence. He +said that the doctrine that all powers should emanate from the people is +not a question of expediency.</p> + +<p>In this address he summed up the reasons why Washington exercised such a +beneficial influence upon the destinies of his country. In a +confidential letter to his wife in 1797, he expressed an opinion that +the father of his country was not a good-natured and amiable man, but +time had mellowed these recollections and softened the asperity of this +judgment. Washington had not, he said (in 1843), 'an extraordinary +amount of acquired knowledge; he was neither a classical scholar nor a +man of science, nor was he endowed with the powers of eloquence, nor +with other qualities more strong than solid, which might be mentioned; +but he had a profound and almost innate sense of justice, on all public +occasions a perfect control of his strong passions,<a name="FNanchor_27_27" id="FNanchor_27_27"></a><a href="#Footnote_27_27" class="fnanchor">[27]</a> above all a most +complete<span class='pagenum'><a name="Page_384" id="Page_384">[Pg 384]</a></span> and extraordinary self-abnegation. Personal consequences and +considerations were not even thought of, they never crossed his mind, +they were altogether obliterated.' Mr. Gallatin held that “the Americans +had a right to be proud of Washington, because he was selected and +maintained during his whole career by the people—never could he have +been thus chosen and constantly supported had he not been the type and +representative of the American people.”</p> + +<p>The commemoration of the fortieth anniversary of the foundation of the +New York Historical Society, November, 1844, was an occasion of unusual +interest. John Romeyn Brodhead, who had just returned from the Hague +with the treasures of New Netherland history gathered during his +mission, was the orator of the day. The venerable John Quincy Adams, Mr. +Gallatin's old associate at Ghent, was present. After the address, which +was delivered at the Church of the Messiah on Broadway, the society and +its guests crossed the street to the New York Hotel, where a banquet +awaited them. Mr. Gallatin retired early, leaving the chair to the first +vice-president, Mr. Wm. Beach Lawrence. After he had left the room, Mr. +Adams, speaking to a toast to the archæologists of America, said: “Mr. +Gallatin, in sending to me the invitations of the society, added the +expression of his desire 'to shake hands with me once more in this +world.'” Mr. Adams could not but respond to his request. In his remarks +he said:<span class='pagenum'><a name="Page_385" id="Page_385">[Pg 385]</a></span></p> + +<div class="blockquot"><p>“I have lived long, sir, in this world, and I have been connected +with all sorts of men, of all sects and descriptions. I have been +in the public service for a great part of my life, and filled +various offices of trust, in conjunction with that venerable +gentleman, Albert Gallatin. I have known him half a century. In +many things we differed; on many questions of public interest and +policy we were divided, and in the history of parties in this +country there is no man from whom I have so widely differed as from +him. But in other things we have harmonized; and now there is no +man with whom I more thoroughly agree on all points than I do with +him. But one word more let me say, before I leave you and him, +birds of passage as we are, bound to a warmer and more congenial +clime,—that among all public men with whom I have been associated +in the course of my political life, whether agreeing or differing +in opinion from him, I have always found him to be an honest and +honorable man.”</p></div> + +<p>In the road to harmony Mr. Adams had to do the traveling. Mr. Gallatin +never changed his political opinions. The political career of the two +men offered this singular contrast: Adams, dissatisfied with his party, +passed into opposition; Gallatin, though at variance with the policy of +the administration of which he made a part, held his fealty, and +confined himself to the operations of his own bureau.</p> + +<p>For a period far beyond the allotted years of man Mr. Gallatin retained +the elasticity of his physical nature as well as his mental +perspicacity. In middle age he was slight of figure, his height<span class='pagenum'><a name="Page_386" id="Page_386">[Pg 386]</a></span> about +five feet ten inches, his form compact and of nervous vigor. His +complexion was Italian;<a name="FNanchor_28_28" id="FNanchor_28_28"></a><a href="#Footnote_28_28" class="fnanchor">[28]</a> his expression keen; his nose long, +prominent; his mouth small, fine cut, and mobile; his eyes hazel, and +penetrative; his skull a model for the sculptor. Thus he appears in the +portrait painted by Gilbert Stuart about the time that he took charge of +the Treasury Department; he was then about forty years of age. In the +fine portrait by William H. Powell, taken from life in 1843, and +preserved in the gallery of the New York Historical Society, these +characteristics appear in stronger outline. Monsieur de Bacourt,<a name="FNanchor_29_29" id="FNanchor_29_29"></a><a href="#Footnote_29_29" class="fnanchor">[29]</a> the +literary executor of Talleyrand, who was the French Ambassador to the +United States in 1840, paid a visit to Mr. Gallatin in that year, and +describes him as a “beau vieillard de quatre-vingt ans,” who has fully +preserved his faculties. Bacourt alludes to his remarkable face, with +its clear, fine cut features, and his “physiognomie pleine de finesse;” +and dwells also upon the ease and charm of his conversation.</p> + +<p>As his life slowly drew to its close, one after another of the few of +his old friends who remained dropped from the road. Early in 1848 Adams +fell in harness, on the floor of the House of Representatives; Lord +Ashburton died in May. Finally, nearest, dearest of all, the companion +of<span class='pagenum'><a name="Page_387" id="Page_387">[Pg 387]</a></span> his triumphs and disappointments, the sharer of his honors and his +joys, his wife, was taken from him by the relentless hand. The summer of +1849 found him crushed by this last affliction, and awaiting his own +summons of release. He was taken to Mount Bonaparte, the country-seat of +his son-in-law, at Astoria on Long Island, where he died in his +daughter's arms on Sunday, August 12, 1849. The funeral services were +held in Trinity Church on the Tuesday following, and his body was laid +to rest in the Nicholson vault,<a name="FNanchor_30_30" id="FNanchor_30_30"></a><a href="#Footnote_30_30" class="fnanchor">[30]</a> in the old graveyard adjoining. The +elegant monument erected during his lifetime is one of the attractive +features of this venerable cemetery, in whose dust mingle the remains of +the temple of no more elevated spirit than his own. The season was a +terrible one—the cholera was raging, the city was deserted. In the +general calamity private sorrow disappeared, or the occasion would have +been marked by a demonstration of public grief and of public honor. As +the tidings went from city to city, and country to country, the friends +of science, of that universal wisdom which knows neither language nor +race, paused in their investigations to pay respectful homage to his +character, his intellect, and to that without which either or both in +combination are inadequate to success—his labor in the field.</p> + +<p>On October 2, 1849, at the first meeting of the<span class='pagenum'><a name="Page_388" id="Page_388">[Pg 388]</a></span> Historical Society +after the death of Mr. Gallatin, Mr. Luther Bradish, the presiding +officer, spoke of him in impressive words, as the last link connecting +the present with the past. He dwelt upon the peculiar pleasure with +which the presence of Mr. Gallatin was always hailed, and the peculiar +interest it gave to the proceedings of the society, and many an eye was +dimmed, as he recalled the venerable form, the beautifully classic head, +the countenance ever beaming with intelligence, and summed up the long +and useful career of the departed sage in these impressive words:—</p> + +<div class="blockquot"><p>“The name of Albert Gallatin is emphatically a name of history. Few +men have lived in any age whose biographies have been so intimately +connected with the history of their country. Living in one of the +most interesting periods of the world, a period of great events, of +the discussion of great principles and the settlement of great +interests, almost the whole of his long and active life was passed +in public service amidst those events and in those discussions.... +For nearly half a century he was almost constantly employed in the +public service; almost every department of that service has +received the benefit of his extraordinary talents and his varied +and extensive and accurate knowledge. Whether in legislation, in +finance, or in diplomacy, he has been equally distinguished in all. +In all or in either he has had few equals and still fewer +superiors.”</p></div> + +<p>To Jeremy Bentham Mr. Gallatin acknowledged himself indebted, as his +master in the art of legislation; but from whatever ground he drew his<span class='pagenum'><a name="Page_389" id="Page_389">[Pg 389]</a></span> +maxims of government, they were reduced to harmony in the crucible of +his own intelligence by the processes of that brain which Spurzheim +pronounced capital,<a name="FNanchor_31_31" id="FNanchor_31_31"></a><a href="#Footnote_31_31" class="fnanchor">[31]</a> and Dumont held to be the best head in America. +In that massive and profound structure lay faculties of organization and +administration which mark the Latin and Italian mind in its highest form +of intellectual development.</p> + +<p>His moral excellence was no less conspicuous than his intellectual +power. He had a profound sense of justice, a love of liberty, and an +unfaltering belief in the capacity of the human race for self-rule. +Versed in the learning of centuries, and familiar with every experiment +of government, he was full of the liberal spirit of his age. To a higher +degree than any American, native or foreign born, unless Franklin, with +whose broad nature he had many traits in common, Albert Gallatin +deserves the proud title, aimed at by many, reached by few, of Citizen +of the World.<span class='pagenum'><a name="Page_391" id="Page_391">[Pg 391]</a></span><span class='pagenum'><a name="Page_390" id="Page_390">[Pg 390]</a></span></p> + +<div class="footnotes"><h3>FOOTNOTES:</h3> + +<div class="footnote"><p><a name="Footnote_22_22" id="Footnote_22_22"></a><a href="#FNanchor_22_22"><span class="label">[22]</span></a> An account of this expedition may be found in the +publications of the Maryland Historical Society.</p></div> + +<div class="footnote"><p><a name="Footnote_23_23" id="Footnote_23_23"></a><a href="#FNanchor_23_23"><span class="label">[23]</span></a> +</p> +<br /> +<p><span class="smcap">Washington</span>, 29<i>th May</i>, 1826.<br /> +</p> +<p> +<span class="smcap">Sir</span>,—Mr. Stewart communicated to me your answer of 4th April last to +the letter which, at my request, he had addressed to you; and I return +you my thanks for your kind offer to forward the object in view,—one +which is not, however, of a private nature but connected with what is +intended to be a National work; and I have delayed writing in order to +be able to send at the same time the papers herewith transmitted. +</p><p> +It is at my suggestion that the Secretary of War has, with the +approbation of the President, taken measures to collect comparative +vocabularies of all the languages and dialects of the Indian tribes +still existing within the United States. The circular is addressed to +all the Indian superintendents and agents, and to the missionaries with +whom the Department corresponds. But they have no agent with the +Nottoways, and we are fortunate that you should have been disposed to +lend your aid on this occasion. +</p><p> +It is the intention of government that the result of these researches +should be published, giving due credit to every individual who shall +have assisted in a work that has been long expected from us, and which +will be equally honorable to the persons concerned and to the country. +It had been my intention to contribute my share in its further progress: +this my approaching departure for Europe forbids. The inclosed papers, +attending to the Notes and to the circular, are so full that I need not +add any further explanation, and have only to request that you will have +the goodness to transmit whatever vocabulary and other information you +may obtain to Colonel Tho. L. McKinney, Office of Indian Affairs, under +cover directed to the Secretary of War. Mr. McKinney will also be happy +to answer any queries on the subject you may have to propose. +</p> +<p><br /> +I have the honor to be respectfully, sir,<br /> +Your most obedient servant,<br /> +<span class="smcap">Albert Gallatin</span><br /> +</p> + +<br /> +Mr. James Rochelle,<br /> +Jerusalem, Southampton County, Virginia.<br /> +<i>Communicated by J. H. Rochelle, Jerusalem, Virginia.</i></div><br /> + +<div class="footnote"><p><a name="Footnote_24_24" id="Footnote_24_24"></a><a href="#FNanchor_24_24"><span class="label">[24]</span></a> Among the most distinguished of those who have followed +the pathway indicated by Mr. Gallatin was the late George Gibbs, an +indefatigable student and an admirable ethnologist. His Chinook jargon +was published by the Smithsonian Institution.</p></div> + +<div class="footnote"><p><a name="Footnote_25_25" id="Footnote_25_25"></a><a href="#FNanchor_25_25"><span class="label">[25]</span></a> Mr. du Ponceau became president of the learned societies +of Pennsylvania: the Historical Society and the American Philosophical +Society.</p></div> + +<div class="footnote"><p><a name="Footnote_26_26" id="Footnote_26_26"></a><a href="#FNanchor_26_26"><span class="label">[26]</span></a> His favorite novel was <i>The Antiquary</i>, which he read once +a year. Novels, he said, should be read, the last chapter first, in +order that appreciation of the style should not be lost in the interest +excited by the story.</p></div> + +<div class="footnote"><p><a name="Footnote_27_27" id="Footnote_27_27"></a><a href="#FNanchor_27_27"><span class="label">[27]</span></a> Mr. Gallatin's assertion, which corresponded with that of +Jefferson, that Washington had naturally strong passions, but had +attained complete mastery over them, is quoted by the Earl of Stanhope +(Lord Mahon) in his famous eulogy of Washington's attributes.</p></div> + +<div class="footnote"><p><a name="Footnote_28_28" id="Footnote_28_28"></a><a href="#FNanchor_28_28"><span class="label">[28]</span></a> The Gallatins claim to descend from one Callatinus, a +Roman Consul.</p></div> + +<div class="footnote"><p><a name="Footnote_29_29" id="Footnote_29_29"></a><a href="#FNanchor_29_29"><span class="label">[29]</span></a> <i>Souvenirs d'un Diplomate.</i> Paris, 1882.</p></div> + +<div class="footnote"><p><a name="Footnote_30_30" id="Footnote_30_30"></a><a href="#FNanchor_30_30"><span class="label">[30]</span></a> This was the vault of the Witter family, a daughter of +which Commodore Nicholson married.</p></div> + +<div class="footnote"><p><a name="Footnote_31_31" id="Footnote_31_31"></a><a href="#FNanchor_31_31"><span class="label">[31]</span></a> “In my youth the fashion was to decide in conformity +with Lavater's precepts; then came Camper's facial angle, which gave a +decided superiority to the white man and monkey; and both have been +superseded by the bumps of the skull. This criterion is that which suits +me best, for Spurzheim declared I had a <i>capital</i> head, which he might +without flattery say to everybody.” <i>Gallatin to Lewis T. Cist of +Cincinnati, November</i> 21, 1837.</p></div> +</div> + +<hr style="width: 65%;" /> +<h2><a name="INDEX" id="INDEX"></a>INDEX<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<ul class="IX"> +<li>Adams, Henry, calls treaty of Ghent the work of Gallatin, <a href="#Page_324">324</a></li> +<li>Adams, John, announces election of Gallatin as senator, <a href="#Page_60">60</a>; + <ul class="IX"> + <li>convenes Congress to consider relations with France, <a href="#Page_132">132</a></li> + <li>his message, <a href="#Page_133">133</a></li> + <li>replies coolly to resolution of House, <a href="#Page_136">136</a>, <a href="#Page_137">137</a></li> + <li>remarks of McClanachan to, <a href="#Page_138">138</a></li> + <li>his message in 1797, <a href="#Page_139">139</a></li> + <li>visited by House to present answer, <a href="#Page_140">140</a></li> + <li>wishes to establish new foreign missions, <a href="#Page_141">141</a></li> + <li>informs Congress of French outrages, <a href="#Page_147">147</a></li> + <li>and of preparations for war, <a href="#Page_147">147</a></li> + <li>sends in X Y Z dispatches, <a href="#Page_149">149</a></li> + <li>sends message on French relations, <a href="#Page_152">152</a>, <a href="#Page_153">153</a></li> + <li>urges preparation for war, <a href="#Page_155">155</a></li> + <li>thanks House for support, <a href="#Page_155">155</a></li> + <li>delighted with support of Congress in 1799, <a href="#Page_158">158</a></li> + <li>congratulates Congress on settlement at Washington, <a href="#Page_162">162</a></li> + <li>supported for President by New England, <a href="#Page_163">163</a></li> + <li>in election of 1800, <a href="#Page_165">165</a></li> + <li>attributes distresses of Confederation to financial ignorance, <a href="#Page_174">174</a></li> + <li>his breach with Hamilton, <a href="#Page_177">177</a></li> + </ul></li> +<li>Adams, John Quincy, on results of Gallatin's proposed appointment as secretary of state, <a href="#Page_295">295</a>; + <ul class="IX"> + <li>meets Gallatin and Bayard at St. Petersburg, <a href="#Page_302">302</a></li> + <li>his training, comparison with Gallatin, <a href="#Page_302">302</a>, <a href="#Page_303">303</a></li> + <li>given new commission, <a href="#Page_312">312</a></li> + <li>differs with Clay over fisheries and Mississippi navigation, <a href="#Page_323">323</a></li> + <li>appointed minister to England, <a href="#Page_326">326</a></li> + <li>advised by Gallatin concerning commercial treaty, <a href="#Page_333">333</a></li> + <li>appointed secretary of state, <a href="#Page_334">334</a></li> + <li>informed by Gallatin of disadvantages of a war with Spain, <a href="#Page_336">336</a>, <a href="#Page_337">337</a></li> + <li>his arguments in Apollon case disregarded by Gallatin, <a href="#Page_338">338</a></li> + <li>his indignation, <a href="#Page_338">338</a></li> + <li>writes opinion of Gallatin in his diary, <a href="#Page_333">333</a>, <a href="#Page_339">339</a></li> + <li>described by Gallatin to Badollet, <a href="#Page_339">339</a>, <a href="#Page_356">356</a></li> + <li>his pugnacity complained of by Crawford, <a href="#Page_339">339</a></li> + <li>negotiates treaty with De Neuville, <a href="#Page_340">340</a></li> + <li>comments of Gallatin upon, <a href="#Page_340">340</a></li> + <li>appoints Rush secretary of treasury, <a href="#Page_342">342</a></li> + <li>offers mission to England to Gallatin, <a href="#Page_342">342</a>, <a href="#Page_343">343</a></li> + <li>promises Gallatin _carte blanche_, but gives him full instructions, <a href="#Page_343">343</a></li> + <li>his instructions to Rush printed, <a href="#Page_345">345</a></li> + <li>warns Gallatin to yield nothing, <a href="#Page_346">346</a></li> + <li>congratulates Gallatin on his success, <a href="#Page_348">348</a></li> + <li>candidate for presidency, <a href="#Page_356">356</a></li> + <li>elected by House of Representatives, <a href="#Page_358">358</a></li> + <li>at meeting of New York Historical Society, <a href="#Page_384">384</a></li> + <li>Gallatin's friendly greeting to, <a href="#Page_384">384</a></li> + <li>eulogizes Gallatin, <a href="#Page_384">384</a>, <a href="#Page_385">385</a></li> + <li>his changing party compared with Gallatin's steadiness, <a href="#Page_385">385</a></li> + <li>death, <a href="#Page_386">386</a></li> + </ul></li> +<li>Adams, William, on English peace commission, <a href="#Page_316">316</a></li> +<li>Addington, Henry, on Clay's tone as diplomat, <a href="#Page_345">345</a></li> +<li>Adet, P. A., French minister, imperils sympathy for France by impudence to Washington, <a href="#Page_128">128</a>; + <ul class="IX"> + <li>condemned by Federalists, <a href="#Page_134">134</a></li> + <li>recommends tricolor, <a href="#Page_153">153</a></li> + </ul></li> +<li>Aix-la-Chapelle, Congress of, <a href="#Page_337">337</a></li> +<li>Alexander, Emperor of Russia, authorizes renewal of mediation, <a href="#Page_308">308</a>; + <ul class="IX"> + <li>fails to inform Romanzoff of Castlereagh's refusal, <a href="#Page_311">311</a>, <a href="#Page_312">312</a></li> + <li>vain efforts of Crawford to secure interview with, <a href="#Page_315">315</a></li> + <li>promises Lafayette to use influence in behalf of United States, <a href="#Page_315">315</a></li> + <li>has interview with Gallatin, <a href="#Page_315">315</a></li> + <li>informs Gallatin that he can do nothing more, <a href="#Page_316">316</a></li> + </ul></li> +<li>Algiers, treaty with, <a href="#Page_117">117</a>, <a href="#Page_118">118</a></li> +<li>Alien Bill, debate and passage in House, <a href="#Page_152">152</a>; + <ul class="IX"> + <li>petitions against, in Congress, <a href="#Page_157">157</a></li> + </ul></li> +<li>Allegheny County, its part in Whiskey Insurrection, <a href="#Page_49">49</a>, <a href="#Page_68">68</a> <a href="#Page_78">78</a>, <a href="#Page_96">96</a>; + <ul class="IX"> + <li>elects Gallatin to Congress, <a href="#Page_93">93</a>, <a href="#Page_127">127</a></li> + </ul></li> +<li>Allègre, Sophie, marries Gallatin, her character and death, <a href="#Page_30">30</a></li> +<li>Allègre, William, father-in-law of Gallatin, <a href="#Page_30">30</a></li> +<li>Allen, ----, in debate on French relations, <a href="#Page_136">136</a>; + <ul class="IX"> + <li>attacks Gallatin as a French agent, <a href="#Page_150">150</a></li> + </ul></li> +<li>Allston, Joseph W., at free trade convention, 1831, <a href="#Page_241">241</a></li> +<li>American Ethnological Society, founded by Gallatin, <a href="#Page_379">379</a>; + <ul class="IX"> + <li>its transactions, <a href="#Page_379">379</a>, <a href="#Page_380">380</a></li> + </ul></li> +<li>Ames, Fisher, leading orator of Federalists, <a href="#Page_99">99</a>; + <ul class="IX"> + <li>his speech on the Jay treaty, <a href="#Page_120">120</a>, <a href="#Page_121">121</a></li> + <li>reports answer to President's Message, <a href="#Page_128">128</a></li> + <li>defends it against Giles, <a href="#Page_129">129</a></li> + <li>leaves Congress, his oratory, <a href="#Page_133">133</a></li> + </ul></li> +<li>Anderson, Professor, member of “The Club,” <a href="#Page_367">367</a></li> +<li>Anti-Federalists, call convention to organize in favor of amending Constitution, <a href="#Page_37">37</a>; + <ul class="IX"> + <li>adopt resolutions to organize throughout the State, <a href="#Page_39">39</a>, <a href="#Page_40">40</a></li> + <li>recommend amendments by petition, <a href="#Page_40">40</a></li> + </ul></li> +<li>Apollon, seizure of, explained by Gallatin and Adams, <a href="#Page_338">338</a></li> +<li>Army, reduction of, advocated by Gallatin, <a href="#Page_108">108</a>, <a href="#Page_123">123></a><a href="#Page_129">129</a>, <a href="#Page_130">130</a> <a href="#Page_186">186</a>, <a href="#Page_188">188</a>; + <ul class="IX"> + <li>his course defended, <a href="#Page_216">216</a></li> + </ul></li> +<li>Arnold, Benedict, effect of his treason, <a href="#Page_12">12</a>; + <ul class="IX"> + <li>campaign of Lafayette against, <a href="#Page_371">371</a></li> + </ul></li> +<li>Ashburton, Lord. See Baring, Alexander.</li> +<li>Astor, John Jacob, assists Gallatin to float loan, <a href="#Page_214">214</a>; + <ul class="IX"> + <li>wishes destruction of United States Bank, <a href="#Page_259">259</a></li> + <li>subscribes capital of bank on condition that Gallatin manage its affairs, <a href="#Page_269">269</a></li> + <li>his fur enterprise, <a href="#Page_287">287</a></li> + <li>offered protection by Jefferson, <a href="#Page_288">288</a></li> + <li>his settlement at Astoria, <a href="#Page_288">288</a></li> + <li>unable to persuade Madison to support him, <a href="#Page_288">288</a></li> + </ul></li> +<li>Astoria, foundation and history of, <a href="#Page_288">288</a></li> +<li>Atwater, ----, member of Ethnological Society, <a href="#Page_379">379</a></li> +</ul> + +<ul class="IX"> +<li>Bache, Franklin, educated at Geneva, <a href="#Page_4">4</a>; + <ul class="IX"> + <li>attacks Washington as a defaulter, in “Aurora,” <a href="#Page_104">104</a></li> + </ul></li> +<li>Bache, Richard, letter to, furnished by Franklin to Gallatin, <a href="#Page_11">11</a></li> +<li>Bacourt, M. de, describes Gallatin in old age, <a href="#Page_386">386</a></li> +<li>Badollet, Jean, college friend of Gallatin, <a href="#Page_5">5</a>; + <ul class="IX"> + <li>Arcadian schemes of, <a href="#Page_9">9</a></li> + <li>letter of Gallatin to, <a href="#Page_9">9</a></li> + <li>letters of Serre to, on life in Maine, <a href="#Page_15">15</a>, <a href="#Page_25">25</a></li> + <li>informs Gallatin of troubles in Geneva, <a href="#Page_25">25</a></li> + <li>at Gallatin's invitation, joins him in America, <a href="#Page_25">25</a>, <a href="#Page_26">26</a></li> + <li>established at Greensburg, <a href="#Page_27">27</a></li> + <li>letter of Gallatin to, <a href="#Page_43">43</a></li> + <li>with Gallatin at anti-excise convention, <a href="#Page_52">52</a></li> + <li>advised by Gallatin to avoid United States marshal, <a href="#Page_55">55</a></li> + <li>letter of Gallatin to, on French Revolution, <a href="#Page_56">56</a></li> + <li>letter of Gallatin to, on his wife, <a href="#Page_59">59</a></li> + <li>instructed by Gallatin to secure reëlection of unseated members of legislature, <a href="#Page_95">95</a></li> + <li>given an office by Gallatin, <a href="#Page_287">287</a>, <a href="#Page_326">326</a></li> + <li>remark of Gallatin to, <a href="#Page_299">299</a></li> + <li>letter of Gallatin to, on J. Q. Adams, <a href="#Page_339">339</a></li> + <li>takes shares in Gallatin's land scheme, <a href="#Page_361">361</a></li> + <li>manages store for Gallatin, <a href="#Page_362">362</a></li> + <li>letters of Gallatin to, <a href="#Page_365">365</a>, <a href="#Page_370">370</a></li> + </ul></li> +<li>Balbi, quotes Gallatin in his Atlas, <a href="#Page_374">374</a></li> +<li>Baldwin, Abraham, on committee on finance, <a href="#Page_106">106</a></li> +<li>Bank of North America, established by Morris, <a href="#Page_172">172</a>, <a href="#Page_248">248</a>; + <ul class="IX"> + <li>its purpose, <a href="#Page_248">248</a></li> + <li>organization, <a href="#Page_248">248</a>, <a href="#Page_249">249</a></li> + <li>difficulties of starting, <a href="#Page_249">249</a>, <a href="#Page_260">260</a></li> + <li>its services, <a href="#Page_249">249</a></li> + <li>jealousy of Pennsylvania toward, <a href="#Page_250">250</a></li> + </ul></li> +<li>Bank of United States, established by Hamilton, <a href="#Page_175">175</a>, <a href="#Page_250">250</a>, <a href="#Page_251">251</a>; + <ul class="IX"> + <li>its organization, <a href="#Page_251">251</a>, <a href="#Page_252">252</a></li> + <li>borrowed from, by Gallatin, <a href="#Page_204">204</a></li> + <li>petitions for a re-charter, <a href="#Page_252">252</a></li> + <li>Gallatin's report in favor of, <a href="#Page_252">252</a>-<a href="#Page_254">254</a></li> + <li>a re-charter refused, <a href="#Page_231">231</a>, <a href="#Page_254">254</a></li> + <li>its value, <a href="#Page_255">255</a></li> + <li>opinion of Gallatin on, <a href="#Page_255">255</a></li> + <li>controls state banks, <a href="#Page_259">259</a></li> + <li>desire of Astor to crush, <a href="#Page_259">259</a></li> + <li>remits specie to foreign stockholders, <a href="#Page_260">260</a></li> + <li>its dissolution causes panic, <a href="#Page_262">262</a>, <a href="#Page_263">263</a></li> + <li>reincorporation proposed, <a href="#Page_265">265</a></li> + <li>vetoed, then approved, by Madison, <a href="#Page_265">265</a></li> + <li>its subsequent history, <a href="#Page_266">266</a></li> + <li>helps resumption of specie payments, <a href="#Page_267">267</a></li> + <li>presidency of, declined by Gallatin, <a href="#Page_268">268</a></li> + <li>deposits removed from, by Taney, <a href="#Page_269">269</a></li> + <li>accepts charter from Pennsylvania, <a href="#Page_271">271</a></li> + <li>its subsequent career, <a href="#Page_271">271</a></li> + <li>fails in 1839, <a href="#Page_276">276</a></li> + <li>weakness of Madison in 1812 in allowing its dissolution, <a href="#Page_296">296</a></li> + </ul></li> +<li>Bank, National, of New York, connection of Gallatin with, <a href="#Page_269">269</a>-<a href="#Page_277">277</a></li> +<li>Banks, state, difficulty of controlling their issues, <a href="#Page_256">256</a>; + <ul class="IX"> + <li>their evil effects, <a href="#Page_257">257</a></li> + <li>status in 1811, <a href="#Page_258">258</a></li> + <li>increase after termination of Bank of United States, <a href="#Page_261">261</a>, <a href="#Page_262">262</a></li> + <li>suspend payment in 1815, <a href="#Page_262">262</a></li> + <li>agree to resume, <a href="#Page_267">267</a></li> + <li>supported by second Bank of United States, <a href="#Page_267">267</a></li> + <li>Gallatin's “Considerations on,” etc., <a href="#Page_268">268</a></li> + <li>connection of Gallatin with, <a href="#Page_269">269</a>-<a href="#Page_277">277</a></li> + <li>speculation craze of, in 1836, <a href="#Page_271">271</a>, <a href="#Page_272">272</a></li> + <li>suspend payment in 1837, <a href="#Page_272">272</a></li> + <li>conventions of, to prepare for resumption, <a href="#Page_273">273</a>-<a href="#Page_275">275</a></li> + <li>aided by Treasury, <a href="#Page_275">275</a></li> + <li> “Suggestions” of Gallatin, <a href="#Page_277">277</a></li> + </ul></li> +<li>Barbour, Philip P., presides over free trade convention in 1831, <a href="#Page_241">241</a></li> +<li>Baring, Alexander, explains to Gallatin British reasons for refusing Russian mediation, <a href="#Page_306">306</a>, <a href="#Page_307">307</a>; + <ul class="IX"> + <li>reply of Gallatin, <a href="#Page_309">309</a></li> + <li>urges Gallatin to visit England, <a href="#Page_311">311</a></li> + <li>requested by Gallatin to send passports, <a href="#Page_313">313</a></li> + <li>his mission to America, <a href="#Page_349">349</a>, <a href="#Page_350">350</a></li> + <li>his manner of negotiation with Webster, <a href="#Page_350">350</a></li> + <li>visits Gallatin, <a href="#Page_350">350</a></li> + <li>comparison with Gallatin, <a href="#Page_350">350</a></li> + <li>his death, <a href="#Page_386">386</a></li> + </ul></li> +<li>Barings, connection with Louisiana purchase, <a href="#Page_193">193</a>, <a href="#Page_195">195</a>; + <ul class="IX"> + <li>competition of Bank of United States with, <a href="#Page_271">271</a></li> + <li>letter of Gallatin to, <a href="#Page_305">305</a></li> + </ul></li> +<li>Barras, Comte, encouraged by Napoleon's success to bold measures against United States, <a href="#Page_132">132</a></li> +<li>Bartlett, John Russell, gives anecdotes of Gallatin, <a href="#Page_13">13</a>, <a href="#Page_22">22</a></li> +<li>Bartlett, ----, member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Bathurst, Lord, promises to appoint peace commissioners, <a href="#Page_314">314</a>; + <ul class="IX"> + <li>reopens negotiations, <a href="#Page_319">319</a></li> + <li>insists on possession of part of Maine, <a href="#Page_321">321</a></li> + </ul></li> +<li>Bayard, James A., elected to Congress, <a href="#Page_132">132</a>; + <ul class="IX"> + <li>on legislative encroachments on executive, <a href="#Page_143">143</a></li> + <li>on resolution to furnish foreign correspondence, <a href="#Page_156">156</a></li> + <li>defends Sedition Law by a clever amendment, <a href="#Page_159">159</a></li> + <li>moves committee to arrange for balloting in 1800, <a href="#Page_166">166</a></li> + <li>accompanies Gallatin as peace commissioner, <a href="#Page_301">301</a>, <a href="#Page_302">302</a></li> + <li>willing to accept an informal renunciation of impressment, <a href="#Page_305">305</a></li> + <li>goes to Amsterdam, <a href="#Page_312">312</a></li> + <li>on new commission to treat directly, <a href="#Page_312">312</a></li> + <li>visits London, <a href="#Page_313">313</a></li> + <li>asks Monroe for authority to negotiate anywhere, <a href="#Page_314">314</a></li> + <li>appointed minister to Russia, <a href="#Page_326">326</a></li> + </ul></li> +<li>Baylies, ----, his report on Western territory complained of by England, <a href="#Page_345">345</a></li> +<li>Bentham, Jeremy, works translated by Dumont, <a href="#Page_5">5</a>; + <ul class="IX"> + <li>influences Gallatin, <a href="#Page_388">388</a></li> + </ul></li> +<li>Bentson, ----, on Astor's hostility to United States Bank, <a href="#Page_259">259</a></li> +<li>Berlin and Milan decrees, negotiations for compensation for seizures under, <a href="#Page_333">333</a></li> +<li>Biddle, C. C., at free trade convention in 1831, <a href="#Page_241">241</a></li> +<li>Biddle, Nicholas, in panic of 1837, <a href="#Page_275">275</a></li> +<li>Blount, William, on committee on finance, <a href="#Page_107">107</a>; + <ul class="IX"> + <li>impeached, <a href="#Page_138">138</a></li> + </ul></li> +<li>Bonaparte, Jerome, his flight to America, <a href="#Page_332">332</a></li> +<li>Bonaparte, Napoleon, his precocity compared to that of Gallatin, <a href="#Page_32">32</a>; + <ul class="IX"> + <li>effect of his Italian successes on French policy, <a href="#Page_132">132</a>, <a href="#Page_139">139</a></li> + <li>adopts conciliatory tone, <a href="#Page_160">160</a></li> + <li>issues Milan decree, <a href="#Page_229">229</a></li> + <li>seen by Gallatin during Hundred Days, <a href="#Page_326">326</a></li> + <li>American sympathy for, explained by Gallatin, <a href="#Page_331">331</a></li> + </ul></li> +<li>Boorman, James, at free trade convention in 1831, <a href="#Page_241">241</a></li> +<li>Borgo, Pozzo di, compared to Gallatin, <a href="#Page_32">32</a></li> +<li>Boston, visit of Gallatin to, <a href="#Page_12">12</a>-<a href="#Page_14">14</a>, <a href="#Page_17">17</a>; + <ul class="IX"> + <li>Puritanical society in, <a href="#Page_13">13</a></li> + <li>prejudice against French, <a href="#Page_13">13</a></li> + <li>Gallatin's opinion of, <a href="#Page_18">18</a></li> + <li>protests against Jay treaty, <a href="#Page_103">103</a></li> + </ul></li> +<li>Botts, John M., letter of Gallatin to, on bank, <a href="#Page_256">256</a></li> +<li>Boundary, northeast, in treaty of Ghent, <a href="#Page_321">321</a>, <a href="#Page_322">322</a>; + <ul class="IX"> + <li>discussed in 1826, <a href="#Page_343">343</a></li> + <li>referred to arbitration, <a href="#Page_347">347</a></li> + <li>argument concerning, prepared by Gallatin, <a href="#Page_349">349</a></li> + <li>decision of King of Netherlands rejected by United States, <a href="#Page_349">349</a></li> + <li>documents concerning, published by Gallatin, <a href="#Page_349">349</a></li> + <li>settled by Ashburton treaty, <a href="#Page_350">350</a></li> + </ul></li> +<li>Bourdillon, ----, takes share in Gallatin's land scheme, <a href="#Page_361">361</a></li> +<li>Bourne, Shearjashub, on committee on finance, <a href="#Page_106">106</a></li> +<li>Brackenridge, Judge H. H., on Gallatin's part in anti-excise agitation, <a href="#Page_50">50</a>; + <ul class="IX"> + <li>in Washington County, advises moderation, <a href="#Page_69">69</a></li> + <li>an authority for history of insurrection, <a href="#Page_71">71</a></li> + <li>his character and policy, <a href="#Page_71">71</a></li> + <li>leads Pittsburgh committee to urge moderation upon rioters, <a href="#Page_72">72</a></li> + <li>describes Bradford's behavior, <a href="#Page_72">72</a></li> + <li>his estimate of numbers under arms, <a href="#Page_72">72</a></li> + <li>compares excitement with that in 1765 and 1775, <a href="#Page_74">74</a></li> + <li>at Parkinson's Ferry meeting, <a href="#Page_78">78</a></li> + <li>supports Gallatin's efforts to prevent rebellion, <a href="#Page_80">80</a>, <a href="#Page_82">82</a></li> + <li>on committee to confer with United States commissioners, <a href="#Page_81">81</a></li> + <li>describes Gallatin's speech, <a href="#Page_82">82</a></li> + <li>claims credit for preventing civil war, <a href="#Page_84">84</a></li> + <li>on threats of secession, <a href="#Page_86">86</a></li> + <li>defeated by Gallatin for Congress, <a href="#Page_93">93</a></li> + </ul></li> +<li>Bradford, David, represents Washington County in anti-excise proceedings, <a href="#Page_51">51</a>; + <ul class="IX"> + <li>elected to legislature, <a href="#Page_54">54</a></li> + <li>low opinion of Gallatin concerning, <a href="#Page_54">54</a></li> + <li>tries to shirk responsibility, <a href="#Page_69">69</a></li> + <li>then determines on extreme measures, robs mail, <a href="#Page_69">69</a></li> + <li>calls for armed resistance, <a href="#Page_70">70</a></li> + <li>unable to countermand order, <a href="#Page_70">70</a></li> + <li>assumes office of major-general, <a href="#Page_72">72</a></li> + <li>his harangue to the insurgents, <a href="#Page_73">73</a></li> + <li>at meeting at Parkinson's Ferry, <a href="#Page_78">78</a></li> + <li>advocates armed resistance, <a href="#Page_79">79</a></li> + <li>on committee on resolutions, <a href="#Page_80">80</a></li> + <li>named to confer with United States commissioners, <a href="#Page_81">81</a></li> + <li>urges rejection of their terms, <a href="#Page_81">81</a>, <a href="#Page_82">82</a></li> + <li>excepted from amnesty, flies from the country, <a href="#Page_84">84</a>, <a href="#Page_85">85</a></li> + </ul></li> +<li>Bradford, James, in anti-excise convention, <a href="#Page_52">52</a></li> +<li>Bradford, ----, member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Bradish, Luther, his eulogy of Gallatin, <a href="#Page_388">388</a></li> +<li>Breading, Nicholas, in Pennsylvania ratifying convention, <a href="#Page_35">35</a></li> +<li>Breckenridge, John, his brief career, <a href="#Page_355">355</a></li> +<li>Brevoort, ----, member of “The Club,” <a href="#Page_367">367</a></li> +<li>Brodhead, John Romeyn, orator at fortieth anniversary of New York Historical Society, <a href="#Page_384">384</a></li> +<li>Buck, Daniel, on committee on finance, <a href="#Page_107">107</a></li> +<li>Burke, Edmund, on place of revenue in the state, <a href="#Page_218">218</a></li> +<li>Burr, Aaron, his connection with Dayton, <a href="#Page_104">104</a>; + <ul class="IX"> + <li>in presidential election of 1800, <a href="#Page_163">163</a>, <a href="#Page_164">164</a>, <a href="#Page_166">166</a>, <a href="#Page_167">167</a></li> + <li>alienated from Jefferson by refusal to appoint Davis, <a href="#Page_282">282</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Cabinet, its lack of financial coöperation under Jefferson, <a href="#Page_188">188</a>; + <ul class="IX"> + <li>criticises Jefferson's messages, <a href="#Page_283">283</a></li> + <li>weekly meetings of, suggested by Gallatin, <a href="#Page_283">283</a></li> + <li>absence of system in, <a href="#Page_284">284</a></li> + <li>dissensions and reorganization under Madison, <a href="#Page_296">296</a>, <a href="#Page_297">297</a></li> + </ul></li> +<li>Cabot, George, on committee to consider Gallatin's eligibility to senate, <a href="#Page_61">61</a></li> +<li>Calhoun, John C., reports plan for a national bank, <a href="#Page_265">265</a>; + <ul class="IX"> + <li>ascribes Gallatin's disregard of Adams's arguments in Apollon case to “pride,” <a href="#Page_338">338</a></li> + <li>Gallatin's opinion of, <a href="#Page_355">355</a></li> + <li>elected Vice-President, <a href="#Page_358">358</a></li> + <li>on Gallatin's ethnological studies, <a href="#Page_378">378</a></li> + </ul></li> +<li>California, discovery of gold in, <a href="#Page_353">353</a>, <a href="#Page_354">354</a></li> +<li>Campbell, George W., furnished with report by Gallatin on injuries of Great Britain, <a href="#Page_292">292</a>, <a href="#Page_303">303</a>; + <ul class="IX"> + <li>secretary of treasury, <a href="#Page_312">312</a></li> + </ul></li> +<li>Canning, George, his policy toward United States, <a href="#Page_225">225</a>, <a href="#Page_295">295</a>, <a href="#Page_344">344</a>; + <ul class="IX"> + <li>attitude of Gallatin toward, in negotiation, <a href="#Page_345">345</a></li> + <li>death, <a href="#Page_347">347</a></li> + </ul></li> +<li>Carnahan, Dr., describes entry of Whiskey Rebellion prisoners into Cannonsburg, <a href="#Page_91">91</a></li> +<li>Castlereagh, Lord, discourages offer of Russia to mediate, <a href="#Page_304">304</a>; + <ul class="IX"> + <li>gives assurance of safety to cartel-ship, <a href="#Page_307">307</a></li> + <li>refuses second offer of mediation, <a href="#Page_311">311</a></li> + <li>offers to deal directly, <a href="#Page_312">312</a></li> + <li>member of cabinet most favorable to America, <a href="#Page_314">314</a></li> + <li>advises English commissioners to moderate demands, <a href="#Page_319">319</a></li> + <li>approves treaty of Ghent, <a href="#Page_326">326</a></li> + <li>arranges commercial convention with Gallatin, <a href="#Page_326">326</a></li> + <li>expresses friendly feelings, <a href="#Page_335">335</a></li> + </ul></li> +<li>Cazenove, ----, takes shares in Gallatin's land scheme, <a href="#Page_361">361</a></li> +<li>Charles X., in Revolution of 1830, <a href="#Page_370">370</a>, <a href="#Page_372">372</a></li> +<li>Chase, Salmon P., negotiations with Treasury Note Committee, 196 and note; + <ul class="IX"> + <li>follows Gallatin's treasury-note plan, <a href="#Page_209">209</a></li> + <li>organizes national banking system, <a href="#Page_256">256</a></li> + </ul></li> +<li>Chateaubriand, succeeds Montmorenci, <a href="#Page_340">340</a>; + <ul class="IX"> + <li>negotiates unsuccessfully with Gallatin, <a href="#Page_341">341</a></li> + <li>quotes Gallatin's statement of Cuban question, <a href="#Page_346">346</a></li> + </ul></li> +<li>Cheriot, ----, takes share in Gallatin's land scheme, <a href="#Page_361">361</a></li> +<li>Chesapeake, captured by Leopard, <a href="#Page_224">224</a></li> +<li>Chevalier, Michel, his studies on money, <a href="#Page_278">278</a></li> +<li>Cheves, Langdon, at free trade convention in 1831, <a href="#Page_241">241</a></li> +<li>Chôteau, Pierre Louis, meets Gallatin, his influence over Indians, <a href="#Page_287">287</a>, <a href="#Page_374">374</a></li> +<li>Circourt, Count de, reviews Gallatin's “Synopsis of the Indian Tribes,” <a href="#Page_378">378</a></li> +<li>Civil service, monopolized by Federalists, <a href="#Page_280">280</a>; + <ul class="IX"> + <li>demands of Republicans for a share in, <a href="#Page_281">281</a></li> + <li>Gallatin's opinion of appointments to and conduct of, <a href="#Page_281">281</a></li> + <li>intention of Jefferson to give one half of, to Republicans, <a href="#Page_282">282</a></li> + </ul></li> +<li>Clare, Thomas, his house the headquarters of Gallatin in 1784, <a href="#Page_22">22</a>, <a href="#Page_24">24</a>; + <ul class="IX"> + <li>rents Gallatin a house, <a href="#Page_25">25</a></li> + </ul></li> +<li>Clay, Henry, denounces Gallatin for advocating free trade, <a href="#Page_242">242</a>; + <ul class="IX"> + <li>apologizes, <a href="#Page_242">242</a></li> + <li>on peace commission, <a href="#Page_312">312</a></li> + <li>arrives at Gottenburg, <a href="#Page_313">313</a></li> + <li>corresponds with Gallatin concerning place of negotiation, <a href="#Page_314">314</a></li> + <li>differs with Adams over Mississippi navigation and fisheries, <a href="#Page_323">323</a></li> + <li>joins Gallatin in England, <a href="#Page_326">326</a></li> + <li>urges Gallatin to accept mission to Panama Congress, <a href="#Page_342">342</a></li> + <li>letter of Gallatin to, on instructions as minister to England, <a href="#Page_343">343</a></li> + <li>tone of his diplomatic correspondence, <a href="#Page_345">345</a></li> + <li>Gallatin's opinion of, <a href="#Page_356">356</a></li> + <li>resignation of Gallatin in his favor, <a href="#Page_358">358</a></li> + <li>secures election of Adams, <a href="#Page_358">358</a></li> + </ul></li> +<li>Clinton, George, marriage of his daughter to Genet, <a href="#Page_102">102</a></li> +<li>“Club, The,” in New York, Gallatin's membership of, <a href="#Page_366">366</a>, <a href="#Page_367">367</a></li> +<li>Coast survey, established, <a href="#Page_290">290</a></li> +<li>Coinage, debate concerning, in Congress, <a href="#Page_140">140</a>; + <ul class="IX"> + <li>regulated by Morris, <a href="#Page_172">172</a></li> + </ul></li> +<li>Coles, Edward, letter of Gallatin to, <a href="#Page_284">284</a></li> +<li>Confederation, Articles of, political conditions under, <a href="#Page_33">33</a>, <a href="#Page_34">34</a></li> +<li>Congress, adopts amendments to Constitution suggested by New York and Virginia, <a href="#Page_40">40</a>; + <ul class="IX"> + <li>passes excise law, <a href="#Page_49">49</a></li> + <li>modifies it, <a href="#Page_52">52</a></li> + <li>gives state courts jurisdiction in excise cases, <a href="#Page_67">67</a></li> + <li>receives tricolor from France, <a href="#Page_130">130</a></li> + <li>complained of by Jefferson as weak, <a href="#Page_138">138</a></li> + <li>suspends commercial intercourse with France, <a href="#Page_151">151</a></li> + <li>passes acts authorizing naval defense, <a href="#Page_153">153</a></li> + <li>presence of Washington, Pinckney, and Hamilton at, in 1798, <a href="#Page_155">155</a></li> + <li>speech of Adams to, <a href="#Page_155">155</a></li> + <li>responsibility for war thrown upon, by Madison, <a href="#Page_205">205</a></li> + <li>authorizes loan in 1812, <a href="#Page_209">209</a>, <a href="#Page_212">212</a></li> + <li>damages Treasury by procrastination, <a href="#Page_212">212</a></li> + <li>supports Gallatin's policy of extinguishing debt, <a href="#Page_215">215</a></li> + <li>repeals internal revenue act, <a href="#Page_221">221</a></li> + <li>passes embargo, <a href="#Page_225">225</a></li> + <li>extends terms of credit on revenue bonds, <a href="#Page_226">226</a></li> + <li>refuses to recharter the bank, <a href="#Page_231">231</a>, <a href="#Page_254">254</a></li> + <li>declares war, imposes increased duties, <a href="#Page_234">234</a></li> + <li>reimposes internal taxes, <a href="#Page_236">236</a></li> + <li>adopts non-importation against England and France, <a href="#Page_292">292</a></li> + <li>orders out naval force, <a href="#Page_294">294</a></li> + <li>repeals embargo, <a href="#Page_294">294</a></li> + </ul></li> +<li>Constable, John, at free trade convention in 1831, <a href="#Page_241">241</a></li> +<li>Constellation, defeats La Vengeance, <a href="#Page_160">160</a></li> +<li>Constitution of Pennsylvania, convention called to revise, <a href="#Page_40">40</a>, <a href="#Page_41">41</a>; + <ul class="IX"> + <li>its membership and ability, <a href="#Page_42">42</a>, <a href="#Page_43">43</a></li> + </ul></li> +<li>Constitution of the United States, adopted, <a href="#Page_35">35</a>; + <ul class="IX"> + <li>struggle over ratification in Pennsylvania, <a href="#Page_35">35</a></li> + <li>movement in favor of new convention to amend, <a href="#Page_36">36</a>-<a href="#Page_40">40</a></li> + <li>amended, <a href="#Page_40">40</a></li> + <li>power of Representatives to appropriate, <a href="#Page_109">109</a></li> + <li>debate in Congress on relation of treaty power to House of Representatives, <a href="#Page_110">110</a>-<a href="#Page_115">115</a></li> + <li>argument of Washington on treaty power, <a href="#Page_114">114</a>, <a href="#Page_115">115</a></li> + <li>debate in House on relation of Executive to Congress, <a href="#Page_142">142</a>-<a href="#Page_147">147</a></li> + <li>power of Senate to require treasury reports, <a href="#Page_161">161</a></li> + <li>in relation to state bills of credit, <a href="#Page_257">257</a></li> + <li>question of power of United States to acquire territory, <a href="#Page_285">285</a></li> + <li>in relation to National University, <a href="#Page_291">291</a></li> + <li>to annexation of Texas, <a href="#Page_351">351</a></li> + </ul></li> +<li>Cook, Edward, presides over meeting of whiskey insurgents at Parkinson's Ferry, <a href="#Page_79">79</a>; + <ul class="IX"> + <li>indorses resolution to submit to terms of United States commissioners, <a href="#Page_83">83</a></li> + </ul></li> +<li>Cooper, Dr. Samuel, interested in Gallatin through Madame Pictet, <a href="#Page_17">17</a></li> +<li>Couronne, ----, takes shares in Gallatin's land scheme, <a href="#Page_361">361</a></li> +<li>Crawford, William H., follows Gallatin's treasury policy, <a href="#Page_215">215</a>; + <ul class="IX"> + <li>at Gallatin's suggestion, urges Emperor again to mediate, <a href="#Page_315">315</a></li> + <li>complains of Adams's pugnacity, <a href="#Page_339">339</a></li> + <li>wishes Gallatin to stand for Vice-President, <a href="#Page_341">341</a></li> + <li>looked upon by Gallatin as strongest leader after the triumvirate, <a href="#Page_355">355</a></li> + <li>supported by Gallatin, Jefferson, and Madison against Adams, <a href="#Page_356">356</a></li> + <li>stricken with paralysis, <a href="#Page_357">357</a></li> + <li>nominated for President by caucus, <a href="#Page_357">357</a></li> + <li>defeated by Adams, <a href="#Page_358">358</a></li> + </ul></li> +<li>Cuba, avowed intention of United States to prevent English seizure of, by war if necessary, <a href="#Page_346">346</a></li> +<li>Cumberland Road, reported to Congress in 1807, <a href="#Page_290">290</a></li> +</ul> + +<ul class="IX"> +<li>Dallas, Alexander J., his career compared to that of Gallatin, <a href="#Page_28">28</a>, <a href="#Page_58">58</a>; + <ul class="IX"> + <li>his parentage, <a href="#Page_58">58</a></li> + <li>secretary of state for Pennsylvania, <a href="#Page_58">58</a></li> + <li>friendship with Gallatin, <a href="#Page_58">58</a></li> + <li>excursion with Gallatin, <a href="#Page_58">58</a>, <a href="#Page_59">59</a></li> + <li>describes to Gallatin his experiences with militia in suppressing Whiskey Rebellion, <a href="#Page_92">92</a></li> + <li>follows Gallatin's loan policy, <a href="#Page_215">215</a></li> + <li>regrets absence of internal taxes, <a href="#Page_236">236</a></li> + <li>proposes a national bank, <a href="#Page_265">265</a></li> + <li>resigns, <a href="#Page_266">266</a></li> + </ul></li> +<li>Dallas, Mrs. A. J., on excursion with her husband and Gallatin, <a href="#Page_58">58</a>, <a href="#Page_59">59</a></li> +<li>Dallas, George M., accompanies Gallatin to Europe, <a href="#Page_301">301</a>; + <ul class="IX"> + <li>sent to London, his instructions, <a href="#Page_310">310</a></li> + <li>informs Gallatin of English offer to treat directly, <a href="#Page_311">311</a></li> + <li>takes dispatch to Monroe, <a href="#Page_318">318</a></li> + </ul></li> +<li>Davis, Garrett, letter of Gallatin to, on manifest destiny, <a href="#Page_352">352</a></li> +<li>Davis, Matthew L., quarrel between Jefferson and Burr over his appointment, <a href="#Page_282">282</a></li> +<li>Dawson, John, on Sedition Law, <a href="#Page_162">162</a></li> +<li>Dayton, Jonathan, elected speaker of House by Democrats, <a href="#Page_98">98</a>; + <ul class="IX"> + <li>anti-British in feeling, <a href="#Page_104">104</a></li> + <li>not influenced by connection with Burr, <a href="#Page_104">104</a></li> + <li>reëlected speaker, <a href="#Page_132">132</a></li> + <li>introduces resolution on Adams's message, <a href="#Page_134">134</a></li> + <li>joins Federalists after X Y Z affair, <a href="#Page_149">149</a></li> + <li>refuses to answer Gallatin, <a href="#Page_153">153</a></li> + <li>vote of thanks to, <a href="#Page_158">158</a></li> + </ul></li> +<li>Debt, public, payment by public lands urged by Gallatin, <a href="#Page_122">122</a>; + <ul class="IX"> + <li>its permanence condemned by Gallatin, <a href="#Page_126">126</a></li> + <li>controversy between Gallatin and Smith as to increase of, <a href="#Page_126">126</a></li> + <li>attempt of Continental Congress to investigate, <a href="#Page_171">171</a></li> + <li>attempts of Morris to secure its funding, <a href="#Page_172">172</a>, <a href="#Page_173">173</a></li> + <li>funded by Hamilton, <a href="#Page_174">174</a>, <a href="#Page_175">175</a></li> + <li>increased under Wolcott, <a href="#Page_178">178</a></li> + <li>creation of domestic loans, <a href="#Page_178">178</a></li> + <li>Gallatin's subdivision of, <a href="#Page_184">184</a>, <a href="#Page_185">185</a></li> + <li>its extinction Gallatin's main desire, <a href="#Page_186">186</a>, <a href="#Page_188">188</a> <a href="#Page_198">198</a>, <a href="#Page_203">203</a> <a href="#Page_208">208</a></li> + <li>stated by Gallatin in 1801-<a href="#Page_2">2</a>, <a href="#Page_191">191</a></li> + <li>plan for its discharging, <a href="#Page_191">191</a></li> + <li>actual reduction of, <a href="#Page_192">192</a></li> + <li>increased through Louisiana purchase, <a href="#Page_192">192</a>, <a href="#Page_193">193</a> <a href="#Page_195">195</a></li> + <li>new funds, <a href="#Page_195">195</a>, <a href="#Page_196">196</a></li> + <li>funding of debt in 1807, <a href="#Page_198">198</a></li> + <li>statement regarding, in 1808, <a href="#Page_202">202</a></li> + <li>its increase during war foreseen by Gallatin, <a href="#Page_203">203</a></li> + <li>reduction in 1812, <a href="#Page_205">205</a></li> + <li>loan of 1812, <a href="#Page_209">209</a></li> + <li>declines below par, <a href="#Page_210">210</a></li> + <li>revives, <a href="#Page_211">211</a></li> + <li>loan of twenty-one millions, <a href="#Page_212">212</a></li> + <li>increase in 1816, <a href="#Page_215">215</a></li> + <li>Gallatin's policy toward, continued by Dallas and Crawford, <a href="#Page_215">215</a></li> + <li>eventually extinguished, <a href="#Page_215">215</a>, <a href="#Page_269">269</a>, <a href="#Page_271">271</a></li> + <li>absence regretted by Woodbury, <a href="#Page_271">271</a></li> + </ul></li> +<li>De Fersen, his correspondence proves guilt of Louis XVI., <a href="#Page_57">57</a></li> +<li>De Lolme, ----, school companion of Gallatin, <a href="#Page_5">5</a></li> +<li>Democratic party. See Republican party especially, <a href="#Page_358">358</a>-<a href="#Page_360">360</a></li> +<li>De Neuville, Hyde, French minister, demands dismissal of insolent postmaster, <a href="#Page_333">333</a>; + <ul class="IX"> + <li>negotiates commercial convention with Adams, <a href="#Page_340">340</a></li> + </ul></li> +<li>De Rham, ----, member of “The Club,” <a href="#Page_367">367</a></li> +<li>Dexter, Samuel, succeeds Wolcott in Treasury Department, <a href="#Page_177">177</a>; + <ul class="IX"> + <li>consents to hold over until appointment of successor, <a href="#Page_181">181</a></li> + </ul></li> +<li>Diplomatic history, mission of Genet to United States, <a href="#Page_57">57</a>, <a href="#Page_102">102</a>; + <ul class="IX"> + <li>Jay's treaty with England, <a href="#Page_102">102</a>, <a href="#Page_103">103</a> <a href="#Page_117">117</a></li> + <li>Fauchet's dealings with Randolph, <a href="#Page_103">103</a></li> + <li>Wayne's treaty with Indians, <a href="#Page_117">117</a></li> + <li>Pinckney's treaty with Spain, <a href="#Page_117">117</a></li> + <li>expulsion of Pinckney from France, <a href="#Page_132">132</a></li> + <li>X Y Z affair and consequences, <a href="#Page_149">149</a>, <a href="#Page_152">152</a> <a href="#Page_153">153</a></li> + <li>events leading up to war of 1812, <a href="#Page_295">295</a></li> + <li>offer of Russia to mediate, <a href="#Page_299">299</a></li> + <li>mission of Gallatin, Bayard, and Adams to Russia, <a href="#Page_301">301</a>, <a href="#Page_303">303</a></li> + <li>correspondence of Gallatin with Baring, <a href="#Page_305">305</a>-<a href="#Page_307">307</a>, <a href="#Page_309">309</a></li> + <li>renewed offers by Russia, <a href="#Page_308">308</a></li> + <li>again refused by England, <a href="#Page_311">311</a></li> + <li>offer of England to treat directly, <a href="#Page_311">311</a></li> + <li>appointment of a new commission, <a href="#Page_312">312</a></li> + <li>place of negotiation, <a href="#Page_314">314</a></li> + <li>futile appeal of Lafayette to Emperor to mediate, <a href="#Page_315">315</a>, <a href="#Page_316">316</a></li> + <li>appointment of English commissioners, <a href="#Page_316">316</a></li> + <li>exorbitant English demands, <a href="#Page_317">317</a></li> + <li>suspension of negotiations, <a href="#Page_318">318</a></li> + <li>alteration of British tone, <a href="#Page_319">319</a></li> + <li>resumption of negotiations and refusal by Americans of English demands, <a href="#Page_319">319</a></li> + <li>further English demands for cession of territory refused, <a href="#Page_321">321</a></li> + <li>discussion over boundaries, fisheries, and Mississippi navigation, <a href="#Page_322">322</a>, <a href="#Page_323">323</a></li> + <li>these points abandoned, <a href="#Page_323">323</a></li> + <li>article against slave trade adopted, <a href="#Page_323">323</a></li> + <li>conclusion of treaty, <a href="#Page_324">324</a></li> + <li>part played by Gallatin, <a href="#Page_324">324</a>, <a href="#Page_325">325</a></li> + <li>commercial convention with England, <a href="#Page_326">326</a>, <a href="#Page_327">327</a></li> + <li>mission of Gallatin to France, <a href="#Page_330">330</a>-<a href="#Page_341">341</a></li> + <li>negotiations over French captures under Berlin and Milan decrees, <a href="#Page_332">332</a>, <a href="#Page_333">333</a></li> + <li>over an impudent postmaster, <a href="#Page_333">333</a></li> + <li>negotiations with Holland, <a href="#Page_334">334</a></li> + <li>commercial convention with England, <a href="#Page_334">334</a>, <a href="#Page_335">335</a></li> + <li>negotiations with France over Apollon case, <a href="#Page_338">338</a></li> + <li>commercial convention with France, <a href="#Page_340">340</a></li> + <li>failure to settle American claims, <a href="#Page_341">341</a></li> + <li>Gallatin's mission to England, <a href="#Page_343">343</a>-<a href="#Page_347">347</a></li> + <li>instructions, <a href="#Page_343">343</a></li> + <li>negotiations with Canning, <a href="#Page_345">345</a>, <a href="#Page_346">346</a></li> + <li>conclusion of convention with Goderich's ministry, <a href="#Page_347">347</a></li> + <li>Ashburton treaty negotiations, <a href="#Page_349">349</a>, <a href="#Page_350">350</a></li> + </ul></li> +<li>Disunion, threatened in 1795, <a href="#Page_116">116</a>; + <ul class="IX"> + <li>planned by New England in 1812, <a href="#Page_213">213</a></li> + </ul></li> +<li>Duane, William, intimate with Jefferson, <a href="#Page_286">286</a>; + <ul class="IX"> + <li>abuses Gallatin in “Aurora,” <a href="#Page_286">286</a> <a href="#Page_297">297</a></li> + <li>appointed adjutant-general by Madison, <a href="#Page_299">299</a></li> + </ul></li> +<li>Duby, ----, takes shares in Gallatin's land scheme, <a href="#Page_361">361</a></li> +<li>Dumont, Etienne, college friend of Gallatin, his subsequent career, <a href="#Page_5">5</a>; + <ul class="IX"> + <li>Gallatin's opinion of, <a href="#Page_5">5</a></li> + <li>invited by Gallatin to come to America, <a href="#Page_26">26</a></li> + <li>on shape of Gallatin's head, <a href="#Page_389">389</a></li> + </ul></li> +<li>Du Ponceau, Peter Stephen, friend of Gallatin, his philological studies upon Indians, <a href="#Page_376">376</a>, <a href="#Page_377">377</a></li> +<li>D'Yvernois, proposes to transport University of Geneva to United States, <a href="#Page_291">291</a>; + <ul class="IX"> + <li>receives shares in Gallatin's land scheme, <a href="#Page_362">362</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Edgar, James, on committee of whiskey insurgents to confer with United + <ul class="IX"> + <li>States commissioners, <a href="#Page_81">81</a></li> + <li>supports Gallatin, <a href="#Page_82">82</a></li> + <li>presides over last meeting at Parkinson's Ferry, <a href="#Page_89">89</a></li> + </ul></li> +<li>Elliott, ----, on controversy between Wolcott and Gallatin, as to surplus, <a href="#Page_190">190</a>, <a href="#Page_191">191</a></li> +<li>Ellsworth, Oliver, on committee to consider Gallatin's eligibility to Senate, <a href="#Page_61">61</a></li> +<li>Embargo, opposed by Gallatin, <a href="#Page_201">201</a>; + <ul class="IX"> + <li>its effect stated by him, <a href="#Page_201">201</a>, <a href="#Page_202">202</a></li> + <li>adopted as answer to Orders in Council, <a href="#Page_225">225</a></li> + <li>its enforcement or abandonment urged by Gallatin, <a href="#Page_228">228</a>, <a href="#Page_229">229</a> <a href="#Page_230">230</a>, <a href="#Page_291">291</a></li> + <li>enforced, <a href="#Page_292">292</a></li> + <li>repealed, <a href="#Page_294">294</a></li> + </ul></li> +<li>Emlen, George, at free trade convention in 1831, <a href="#Page_241">241</a></li> +<li>England, anger against, at time of Jay treaty, <a href="#Page_103">103</a>; + <ul class="IX"> + <li>renews provision order, <a href="#Page_103">103</a></li> + <li>danger of war with, <a href="#Page_116">116</a>, <a href="#Page_118">118</a>, <a href="#Page_120">120</a></li> + <li>hard pressed by France in 1797, <a href="#Page_139">139</a></li> + <li>its friendship more dangerous than France's enmity, <a href="#Page_163">163</a></li> + <li>adopts Orders in Council, <a href="#Page_201">201</a>, <a href="#Page_225">225</a></li> + <li>commercial policy toward United States, <a href="#Page_224">224</a>, <a href="#Page_225">225</a> <a href="#Page_295">295</a></li> + <li>danger of war with, <a href="#Page_224">224</a>, <a href="#Page_229">229</a></li> + <li>Madison's preference for, <a href="#Page_295">295</a></li> + <li>events leading up to war with, <a href="#Page_295">295</a>, <a href="#Page_296">296</a></li> + <li>mistaken view of Gallatin concerning its diplomacy, <a href="#Page_304">304</a></li> + <li>unwilling to tolerate Russian mediation, <a href="#Page_304">304</a>, <a href="#Page_306">306</a> <a href="#Page_311">311</a></li> + <li>its policy explained by Baring, <a href="#Page_306">306</a>, <a href="#Page_307">307</a></li> + <li>offers to treat directly, <a href="#Page_311">311</a></li> + <li>willing to push on war after fall of Napoleon, <a href="#Page_313">313</a>, <a href="#Page_316">316</a></li> + <li>hopes to divide United States, <a href="#Page_313">313</a></li> + <li>appoints commissioners, <a href="#Page_316">316</a></li> + <li>makes exorbitant demands, <a href="#Page_317">317</a></li> + <li>its policy modified by Castlereagh, <a href="#Page_319">319</a></li> + <li>demands cession of territory, <a href="#Page_321">321</a></li> + <li>loses interest in war, <a href="#Page_322">322</a></li> + <li>rejects article on impressment, <a href="#Page_322">322</a></li> + <li>negotiation of convention with, in 1815, <a href="#Page_334">334</a>, <a href="#Page_335">335</a></li> + <li>at Congress of Aix-la-Chapelle, <a href="#Page_337">337</a></li> + <li>mission of Gallatin to, <a href="#Page_343">343</a>-<a href="#Page_347">347</a></li> + <li>complains of tone of American diplomacy, <a href="#Page_344">344</a>, <a href="#Page_345">345</a></li> + <li>negotiations with, <a href="#Page_345">345</a>, <a href="#Page_346">346</a></li> + <li>agrees to renew commercial convention, <a href="#Page_347">347</a></li> + <li>refuses to negotiate on impressment, <a href="#Page_347">347</a></li> + <li>makes Ashburton treaty, <a href="#Page_349">349</a>, <a href="#Page_350">350</a></li> + </ul></li> +<li>Eppes, John W., letter of Gallatin to, on public lands, <a href="#Page_239">239</a></li> +<li>Erskine, D. M., his negotiations, <a href="#Page_295">295</a></li> +<li>Etsko, ----, Polish refugee, helped by Gallatin, <a href="#Page_372">372</a></li> +<li>Eustis, William, advised by Gallatin concerning treaty with Netherlands, <a href="#Page_333">333</a>, <a href="#Page_334">334</a></li> +<li>Ewbank, ----, member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Excise (see Whiskey Insurrection), recommended by Hamilton, <a href="#Page_175">175</a></li> +</ul> + +<ul class="IX"> +<li>Fauchet, his dealings with Randolph, <a href="#Page_103">103</a>; + <ul class="IX"> + <li>condemned by Federalists, <a href="#Page_134">134</a></li> + </ul></li> +<li>Fayette County, settlement of Gallatin, <a href="#Page_22">22</a>, <a href="#Page_26">26</a> <a href="#Page_27">27</a>; + <ul class="IX"> + <li>life in, <a href="#Page_28">28</a>, <a href="#Page_43">43</a>, <a href="#Page_67">67</a></li> + <li>elects Gallatin to legislature, <a href="#Page_44">44</a></li> + <li>in Whiskey Insurrection, <a href="#Page_49">49</a>, <a href="#Page_51">51</a> <a href="#Page_52">52</a>, <a href="#Page_68">68</a> <a href="#Page_78">78</a>, <a href="#Page_85">85</a> <a href="#Page_96">96</a></li> + <li>reëlects Gallatin, <a href="#Page_93">93</a>, <a href="#Page_95">95</a></li> + <li>visited by Lafayette, <a href="#Page_365">365</a></li> + </ul></li> +<li>Fazzi, ----, takes share in Gallatin's land scheme, <a href="#Page_361">361</a></li> +<li>Federalist party, its origin, <a href="#Page_57">57</a>; + <ul class="IX"> + <li>prejudiced against Gallatin by his resolution demanding information from Hamilton, <a href="#Page_64">64</a>, <a href="#Page_65">65</a></li> + <li>opposes his election to Congress, <a href="#Page_95">95</a></li> + <li>reconstructs cabinet, <a href="#Page_97">97</a>, <a href="#Page_98">98</a></li> + <li>its leaders in House, <a href="#Page_98">98</a>, <a href="#Page_99">99</a></li> + <li>attitude toward France and England, <a href="#Page_100">100</a>, <a href="#Page_101">101</a></li> + <li>charged with being bribed by England, <a href="#Page_103">103</a></li> + <li>in debate on appropriating power, <a href="#Page_108">108</a>, <a href="#Page_109">109</a></li> + <li>in debate on treaty power, <a href="#Page_111">111</a>-<a href="#Page_115">115</a></li> + <li>defends Jay treaty, <a href="#Page_118">118</a></li> + <li>strengthened in fourth Congress, <a href="#Page_128">128</a></li> + <li>retains nominal majority in fifth Congress, <a href="#Page_133">133</a></li> + <li>in debate on French relations, <a href="#Page_134">134</a>-<a href="#Page_136">136</a></li> + <li>in debate on checks on executive, <a href="#Page_143">143</a>-<a href="#Page_147">147</a></li> + <li>strengthened by X Y Z affair, <a href="#Page_149">149</a></li> + <li>commits mistakes, <a href="#Page_151">151</a>, <a href="#Page_152">152</a></li> + <li>its badge, <a href="#Page_153">153</a></li> + <li>controls sixth Congress, <a href="#Page_158">158</a></li> + <li>refuses to repeal Sedition Law, <a href="#Page_159">159</a></li> + <li>defeated in 1800, <a href="#Page_163">163</a></li> + <li>forced to choose between Burr and Jefferson, <a href="#Page_164">164</a></li> + <li>bargain with Jefferson, <a href="#Page_164">164</a></li> + <li>its possible plans for defeating any choice, <a href="#Page_165">165</a></li> + <li>and for nominating a president pro tempore, <a href="#Page_165">165</a></li> + <li>allows Jefferson's election, <a href="#Page_166">166</a>, <a href="#Page_167">167</a></li> + <li>its share in building country, <a href="#Page_169">169</a></li> + <li>breach in, <a href="#Page_177">177</a></li> + <li>enjoys Republican inconsistency, <a href="#Page_237">237</a></li> + <li>monopolizes offices, <a href="#Page_280">280</a></li> + <li>extinguished by battle of New Orleans, <a href="#Page_358">358</a></li> + </ul></li> +<li>Few, William, connected by marriage with Gallatin, <a href="#Page_59">59</a></li> +<li>Finances, efforts of Gallatin to secure minute supervision of by Congress, <a href="#Page_64">64</a>, <a href="#Page_106">106</a> <a href="#Page_107">107</a>; + <ul class="IX"> + <li>efforts to establish permanent appropriations, <a href="#Page_107">107</a></li> + <li>appropriations, power of Congress over, <a href="#Page_108">108</a>, <a href="#Page_109">109</a></li> + <li>their necessity to successful government, <a href="#Page_170">170</a></li> + <li>finances of the Revolution under Morris, <a href="#Page_170">170</a>-<a href="#Page_174">174</a></li> + <li>under treasury board, <a href="#Page_173">173</a>, <a href="#Page_174">174</a></li> + <li>under Hamilton, <a href="#Page_174">174</a>-<a href="#Page_176">176</a></li> + <li>under Wolcott, <a href="#Page_176">176</a>-<a href="#Page_178">178</a></li> + <li>under Gallatin, <a href="#Page_186">186</a>-<a href="#Page_215">215</a></li> + <li>sketch of, by Gallatin, <a href="#Page_184">184</a></li> + <li>“View of,” by Gallatin, <a href="#Page_185">185</a></li> + <li>preliminary sketch on Gallatin's assuming office, <a href="#Page_186">186</a></li> + <li>estimate of sources of wealth, <a href="#Page_187">187</a></li> + <li>estimate for 1801, <a href="#Page_190">190</a></li> + <li>denial of a surplus, <a href="#Page_190">190</a>, <a href="#Page_191">191</a></li> + <li>plan for discharging debt, <a href="#Page_191">191</a>, <a href="#Page_192">192</a></li> + <li>its execution, <a href="#Page_192">192</a>, <a href="#Page_194">194</a></li> + <li>report for 1803 on reduction of debt, <a href="#Page_195">195</a></li> + <li>Louisiana purchase, <a href="#Page_193">193</a>, <a href="#Page_195">195</a></li> + <li>place of payment of principal and interest, <a href="#Page_195">195</a>, <a href="#Page_196">196</a></li> + <li>addition to sinking fund, <a href="#Page_196">196</a></li> + <li>report for first four years, <a href="#Page_197">197</a></li> + <li>estimates of revenue for Jefferson's second term, <a href="#Page_198">198</a></li> + <li>conversion of debt, <a href="#Page_198">198</a></li> + <li>full treasury in 1807, <a href="#Page_198">198</a></li> + <li>Gallatin's consideration of military value of surplus, <a href="#Page_199">199</a></li> + <li>on war revenue, <a href="#Page_200">200</a>, <a href="#Page_201">201</a></li> + <li>effect of embargo, <a href="#Page_201">201</a></li> + <li>sources of revenue, <a href="#Page_204">204</a></li> + <li>deficiency in 1809, <a href="#Page_204">204</a></li> + <li>report of 1811, <a href="#Page_205">205</a></li> + <li>demand of Gallatin for internal revenue, <a href="#Page_206">206</a></li> + <li>war estimates, <a href="#Page_206">206</a>-<a href="#Page_209">209</a></li> + <li>including “treasury notes,” <a href="#Page_207">207</a> <a href="#Page_210">210</a></li> + <li>loan of 1812, <a href="#Page_209">209</a></li> + <li>estimates for 1812, <a href="#Page_210">210</a></li> + <li>report for 1812, <a href="#Page_211">211</a></li> + <li>success of loan, <a href="#Page_210">210</a>, <a href="#Page_211">211</a></li> + <li>report of loan of twenty-one millions, <a href="#Page_212">212</a></li> + <li>stock not taken by New England and Southern States, <a href="#Page_213">213</a></li> + <li>saved by Parish, Girard, and Astor, <a href="#Page_213">213</a>, <a href="#Page_214">214</a></li> + <li>review of Gallatin's influence, <a href="#Page_215">215</a>-<a href="#Page_216">216</a></li> + <li>table of revenue and expenditure, <a href="#Page_217">217</a></li> + <li>revenue established by Hamilton, <a href="#Page_217">217</a></li> + <li>its character, <a href="#Page_218">218</a></li> + <li>and amount, <a href="#Page_219">219</a></li> + <li>permanent estimate of, <a href="#Page_220">220</a></li> + <li>internal revenue retained by Gallatin, <a href="#Page_220">220</a></li> + <li>his proposed expenditures, <a href="#Page_220">220</a></li> + <li>repeal of internal revenue, <a href="#Page_221">221</a></li> + <li>increased income, <a href="#Page_221">221</a></li> + <li>establishment of Mediterranean fund, <a href="#Page_222">222</a></li> + <li>income during Jefferson's first term, <a href="#Page_223">223</a></li> + <li>increased estimates of Gallatin, <a href="#Page_223">223</a></li> + <li>internal improvements planned, <a href="#Page_224">224</a></li> + <li>doubling of duties recommended as a war measure, <a href="#Page_225">225</a></li> + <li>effect of embargo on revenue, <a href="#Page_225">225</a>, <a href="#Page_227">227</a></li> + <li>review of revenue during Jefferson's administrations, <a href="#Page_226">226</a>, <a href="#Page_227">227</a></li> + <li>surplus in 1808, <a href="#Page_226">226</a></li> + <li>internal improvements advocated by Jefferson, <a href="#Page_226">226</a>, <a href="#Page_227">227</a></li> + <li>estimates of receipts for 1809, <a href="#Page_228">228</a></li> + <li>report of Gallatin to Congress on need for new revenues, <a href="#Page_229">229</a></li> + <li>vagueness of Madison concerning, <a href="#Page_229">229</a>, <a href="#Page_230">230</a></li> + <li>report for 1809, <a href="#Page_230">230</a></li> + <li>refusal of Congress to re-charter bank, <a href="#Page_231">231</a></li> + <li>report for 1810, <a href="#Page_231">231</a></li> + <li>report of Gallatin in January, 1812, <a href="#Page_232">232</a></li> + <li>proposal to impose internal taxes, <a href="#Page_234">234</a></li> + <li>increased war duties, <a href="#Page_234">234</a></li> + <li>war budget for 1813, <a href="#Page_235">235</a></li> + <li>internal taxes, their history, <a href="#Page_235">235</a></li> + <li>reimposed by Congress, <a href="#Page_236">236</a></li> + <li>receipts from, <a href="#Page_237">237</a></li> + <li>public lands, receipts from, <a href="#Page_238">238</a>, <a href="#Page_239">239</a></li> + <li>administration of Treasury under Gallatin, <a href="#Page_244">244</a>-<a href="#Page_246">246</a></li> + <li>history of Bank of North America, <a href="#Page_248">248</a>-<a href="#Page_250">250</a></li> + <li>of Bank of United States, <a href="#Page_250">250</a>-<a href="#Page_255">255</a></li> + <li>panic of 1815, <a href="#Page_262">262</a>-<a href="#Page_264">264</a></li> + <li>second United States Bank, <a href="#Page_265">265</a>-<a href="#Page_268">268</a></li> + <li>resumption of specie payment, <a href="#Page_267">267</a></li> + <li>report of Gallatin on ratio of gold and silver, <a href="#Page_268">268</a></li> + <li>“Considerations on Currency and Banking,” <a href="#Page_268">268</a></li> + <li>diminution of debt in 1832, <a href="#Page_269">269</a></li> + <li>removal of deposits from Bank of United States, <a href="#Page_269">269</a>, <a href="#Page_270">270</a></li> + <li>extinction of debt by Woodbury, <a href="#Page_270">270</a>, <a href="#Page_271">271</a></li> + <li>distribution of surplus among States, <a href="#Page_271">271</a></li> + <li>inflation in 1836, <a href="#Page_272">272</a></li> + <li>panic of 1837, <a href="#Page_272">272</a>, <a href="#Page_273">273</a></li> + </ul></li> +<li>Findley, James, in Pennsylvania Constitutional Convention, <a href="#Page_43">43</a>; + <ul class="IX"> + <li>represents Fayette County in legislature, <a href="#Page_44">44</a></li> + </ul></li> +<li>Findley, William, describes Whiskey Insurrection, <a href="#Page_71">71</a>; + <ul class="IX"> + <li>at Parkinson's Ferry meeting, <a href="#Page_78">78</a></li> + <li>describes Gallatin's speech, <a href="#Page_83">83</a></li> + <li>on threats of secession, <a href="#Page_86">86</a></li> + <li>takes resolutions to Washington urging him to stop march of troops, <a href="#Page_89">89</a></li> + <li>describes seizure of prisoners, <a href="#Page_90">90</a></li> + </ul></li> +<li>Fish, Preserved, at free trade convention in 1831, <a href="#Page_241">241</a></li> +<li>Fisheries, discussed in treaty of Ghent, <a href="#Page_322">322</a>, <a href="#Page_323">323</a>; + <ul class="IX"> + <li>unfavorable settlement of question in 1818, <a href="#Page_335">335</a></li> + </ul></li> +<li>Florida, question of its annexation, <a href="#Page_285">285</a></li> +<li>Forsyth, John, asks Gallatin's advice as to Smithson's bequest, <a href="#Page_378">378</a></li> +<li>Fox, C. J., his precocity compared to Gallatin's, <a href="#Page_32">32</a></li> +<li>France, sympathy of Republicans for, <a href="#Page_116">116</a>; + <ul class="IX"> + <li>sends tricolor to Congress, <a href="#Page_130">130</a></li> + <li>its policy in Revolution, <a href="#Page_131">131</a></li> + <li>situation in 1796, <a href="#Page_131">131</a></li> + <li>endeavors to get aid of United States, <a href="#Page_131">131</a></li> + <li>determines to coerce it, <a href="#Page_132">132</a></li> + <li>refuses to receive Pinckney, <a href="#Page_132">132</a></li> + <li>policy of Adams toward, <a href="#Page_137">137</a></li> + <li>success in 1797, <a href="#Page_139">139</a></li> + <li>danger of war with, in 1798, <a href="#Page_147">147</a></li> + <li>question of war with, debated in Congress, <a href="#Page_148">148</a>-<a href="#Page_151">151</a></li> + <li>non-intercourse with, <a href="#Page_151">151</a>, <a href="#Page_159">159</a>, <a href="#Page_160">160</a></li> + <li>adopts conciliatory measures, <a href="#Page_160">160</a></li> + <li>commercial convention with, <a href="#Page_162">162</a></li> + <li>adopts Milan decree, <a href="#Page_229">229</a></li> + <li>mission of Gallatin to, <a href="#Page_331">331</a>-<a href="#Page_341">341</a></li> + <li>refuses to pay for seizures under Berlin and Milan decrees, <a href="#Page_333">333</a></li> + <li>urges peace with Spain, <a href="#Page_336">336</a></li> + <li>offers to mediate with United States between Spain and her colonies, <a href="#Page_336">336</a></li> + <li>conduct at Congress of Aix-la-Chapelle, <a href="#Page_337">337</a></li> + <li>Apollon case, <a href="#Page_338">338</a></li> + <li>commercial convention with, <a href="#Page_340">340</a></li> + <li>fails to settle claims, <a href="#Page_340">340</a>, <a href="#Page_341">341</a></li> + <li>Revolution of 1830 in, <a href="#Page_370">370</a>, <a href="#Page_371">371</a>, <a href="#Page_372">372</a></li> + </ul></li> +<li>Franklin, Benjamin, gives Gallatin letter to Richard Bache, <a href="#Page_11">11</a>; + <ul class="IX"> + <li>compared to Gallatin, <a href="#Page_389">389</a></li> + </ul></li> +<li>Frederick, Landgrave of Hesse-Cassel, friend of Madame Voltaire, <a href="#Page_7">7</a>; + <ul class="IX"> + <li>sends her a portrait, <a href="#Page_7">7</a></li> + <li>sells troops to England in American war, <a href="#Page_8">8</a></li> + <li>called a tyrant by Gallatin, <a href="#Page_8">8</a></li> + </ul></li> +<li>Free trade, advocated by Gallatin, <a href="#Page_240">240</a>; + <ul class="IX"> + <li>becomes a party question in 1832, <a href="#Page_240">240</a></li> + <li>convention in favor of, <a href="#Page_241">241</a></li> + <li>Gallatin's memorial in behalf of, <a href="#Page_241">241</a>, <a href="#Page_242">242</a></li> + <li>subsequent history of, <a href="#Page_242">242</a>, <a href="#Page_243">243</a></li> + </ul></li> +<li>French Revolution, premonitions of, in Europe, <a href="#Page_6">6</a>; + <ul class="IX"> + <li>Gallatin's opinion of, in 1794, <a href="#Page_56">56</a>, <a href="#Page_57">57</a></li> + <li>its reaction on America, <a href="#Page_57">57</a>, <a href="#Page_100">100</a></li> + <li>attitude of parties toward, <a href="#Page_101">101</a>, <a href="#Page_102">102</a></li> + <li>its effect described by Gallatin, <a href="#Page_327">327</a>, <a href="#Page_328">328</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Gallatin, Abraham, grandfather of Albert, <a href="#Page_2">2</a>; + <ul class="IX"> + <li>lives at Pregny, <a href="#Page_7">7</a></li> + <li>friend of Voltaire, <a href="#Page_7">7</a></li> + </ul></li> +<li>Gallatin, Albert, his place in United States history, <a href="#Page_1">1</a>; + <ul class="IX"> + <li>birth and ancestry, <a href="#Page_2">2</a></li> + <li>adopted by Mlle. Pictet, <a href="#Page_2">2</a></li> + <li>his schooling and home training, <a href="#Page_2">2</a>, <a href="#Page_3">3</a></li> + <li>benefits from cosmopolitan society of Geneva, <a href="#Page_4">4</a></li> + <li>academic friendships, <a href="#Page_4">4</a>, <a href="#Page_5">5</a></li> + <li>restless, although not ambitious, <a href="#Page_5">5</a></li> + <li>discontented with political conditions, <a href="#Page_6">6</a></li> + <li>visits Voltaire, <a href="#Page_7">7</a>, <a href="#Page_8">8</a></li> + <li>refuses offer of commission in Hessian service, <a href="#Page_8">8</a></li> + <li>quarrels with grandmother, <a href="#Page_8">8</a></li> + <li>plans to find freedom in America, <a href="#Page_9">9</a>, <a href="#Page_10">10</a></li> + <li>leaves Geneva secretly, <a href="#Page_9">9</a></li> + <li>plans to rise by land speculation and commerce, <a href="#Page_10">10</a></li> + <li>at Nantes receives letters from family, <a href="#Page_10">10</a>, <a href="#Page_11">11</a></li> + <li>relations with guardian, <a href="#Page_11">11</a></li> + <li>invests money in tea, <a href="#Page_12">12</a></li> + <li>voyage to Boston, <a href="#Page_12">12</a></li> + <li>finds difficulty in selling tea, <a href="#Page_12">12</a></li> + <li>finds Boston bigoted and unfriendly, <a href="#Page_13">13</a></li> + <li>his walk to Blue Hill, <a href="#Page_13">13</a></li> + <li>encounter with inquisitive landlord, <a href="#Page_13">13</a>, <a href="#Page_14">14</a></li> + <li>persuaded by Madame De Lesdernier, makes trading voyage to Machias, <a href="#Page_14">14</a></li> + <li>frontier life there, <a href="#Page_15">15</a>, <a href="#Page_16">16</a></li> + <li>commands earthwork at Passamaquoddy, <a href="#Page_16">16</a></li> + <li>meets La Pérouse, <a href="#Page_16">16</a></li> + <li>returns to Boston and teaches French, <a href="#Page_17">17</a></li> + <li>recommended by Mlle. Pictet to Dr. Cooper, <a href="#Page_17">17</a></li> + <li>teaches French successfully in Harvard College, <a href="#Page_17">17</a>, <a href="#Page_18">18</a></li> + <li>glad to leave Boston at conclusion of war, <a href="#Page_18">18</a></li> + <li>visits New York, <a href="#Page_18">18</a></li> + <li>meets Savary, <a href="#Page_19">19</a></li> + <li>dissolves partnership with Serre, <a href="#Page_19">19</a></li> + <li>meets Pelatiah Webster at Philadelphia, <a href="#Page_19">19</a></li> + <li>accompanies Savary to Richmond, <a href="#Page_19">19</a></li> + <li>decides definitely not to return to Geneva, <a href="#Page_20">20</a></li> + <li>joins Savary in land speculations in West Virginia, <a href="#Page_20">20</a>, <a href="#Page_21">21</a></li> + <li>his aversion to debt, <a href="#Page_21">21</a></li> + <li>returns to Philadelphia and leads exploring party down Ohio, <a href="#Page_21">21</a></li> + <li>at George's Creek builds log-house and opens store, <a href="#Page_22">22</a></li> + <li>encounters Washington, <a href="#Page_22">22</a></li> + <li>declines Washington's offer to become land agent, <a href="#Page_23">23</a></li> + <li>enjoys a winter in Richmond society, <a href="#Page_23">23</a></li> + <li>his gratitude for hospitality and kindness, <a href="#Page_24">24</a></li> + <li>commissioned by Henry, locates lands in Western Virginia, <a href="#Page_24">24</a></li> + <li>interrupted by Indian troubles, <a href="#Page_24">24</a></li> + <li>takes oath of allegiance to Virginia, <a href="#Page_25">25</a></li> + <li>invites Badollet to join him from Geneva, <a href="#Page_25">25</a>, <a href="#Page_26">26</a></li> + <li>purchases Friendship Hill, <a href="#Page_26">26</a></li> + <li>rumor of his death causes inquiries from Geneva, <a href="#Page_27">27</a></li> + <li>attains majority and calls for property, <a href="#Page_28">28</a></li> + <li>difficulties of his life on frontier, <a href="#Page_28">28</a></li> + <li>not to be blamed for his choice of location, <a href="#Page_28">28</a>, <a href="#Page_29">29</a></li> + <li>offered place in office by Marshall, <a href="#Page_29">29</a></li> + <li>advised by Patrick Henry to begin in West, <a href="#Page_29">29</a></li> + <li>visits Richmond and Philadelphia, <a href="#Page_29">29</a></li> + <li>journey to Maine, <a href="#Page_29">29</a>, <a href="#Page_30">30</a></li> + <li>kindness towards Lesdernier, <a href="#Page_30">30</a></li> + <li>marries Sophie Allègre, her sudden death, <a href="#Page_30">30</a></li> + <li>disheartened, wishes to abandon Western lands, <a href="#Page_30">30</a>, <a href="#Page_31">31</a></li> + <li>his maturity in political thought, <a href="#Page_32">32</a></li> + <li>early an advocate of democracy, <a href="#Page_32">32</a>, <a href="#Page_33">33</a></li> + <li>probably dislikes the Federal Constitution, <a href="#Page_34">34</a>, <a href="#Page_36">36</a></li> + <li>an opponent of centralization, <a href="#Page_34">34</a></li> + <li>influences arguments of Smilie in Pennsylvania ratifying convention, <a href="#Page_36">36</a></li> + <li>represents Fayette County at convention of anti-Federalists, <a href="#Page_37">37</a></li> + <li>friendship with Smilie, <a href="#Page_38">38</a></li> + <li>drafts resolutions providing for vigorous organization against Constitution, <a href="#Page_38">38</a>, <a href="#Page_39">39</a></li> + </ul></li> +<li><i>In Pennsylvania Constitutional Convention.</i> + <ul class="IX"> + <li>Elected a delegate from Fayette County, <a href="#Page_40">40</a></li> + <li>his opposition to alteration of form of government, <a href="#Page_41">41</a></li> + <li>advocates enlarged popular representation, manhood suffrage, easy naturalization, <a href="#Page_42">42</a></li> + <li>takes minor part in convention, his high opinion of its ability, <a href="#Page_42">42</a>, <a href="#Page_43">43</a></li> + <li>after convention, falls into melancholy, <a href="#Page_43">43</a></li> + <li>wishes to leave America, <a href="#Page_43">43</a></li> + <li>reproached by Genevese friends with indolence, <a href="#Page_43">43</a>, <a href="#Page_44">44</a></li> + </ul></li> +<li><i>In Pennsylvania Legislature.</i> + <ul class="IX"> + <li>Elected to represent Fayette County, <a href="#Page_44">44</a></li> + <li>describes his legislative career, <a href="#Page_45">45</a>-<a href="#Page_47">47</a></li> + <li>his influence and activity, <a href="#Page_45">45</a></li> + <li>advocates improved education, <a href="#Page_45">45</a></li> + <li>supports turnpike, <a href="#Page_45">45</a></li> + <li>gains reputation by report of Ways and Means Committee, <a href="#Page_46">46</a></li> + <li>advocates redemption of paper money and financial reform, <a href="#Page_46">46</a></li> + <li>reports a resolution for abolition of slavery, <a href="#Page_47">47</a></li> + <li>at first dislikes Philadelphia, later prefers it to New York for democracy, <a href="#Page_47">47</a>, <a href="#Page_48">48</a></li> + <li>drafts resolutions condemning Hamilton's excise bill, <a href="#Page_48">48</a></li> + <li>takes part in public meeting in Washington County against the bill, <a href="#Page_50">50</a></li> + <li>secretary of convention of western counties at Pittsburgh, <a href="#Page_52">52</a></li> + <li>signs resolutions advocating resistance, <a href="#Page_53">53</a></li> + <li>draws petition to Congress, <a href="#Page_53">53</a></li> + <li>returns to Philadelphia to find cause damaged by action of counties, <a href="#Page_54">54</a></li> + <li>advises evasion of federal writs to arrest, <a href="#Page_55">55</a></li> + <li>in legislature proposes a township veto on taxation and popular education, <a href="#Page_55">55</a></li> + <li>wishes to visit Geneva in 1793, <a href="#Page_56">56</a>, <a href="#Page_57">57</a></li> + <li>views on French Revolution, <a href="#Page_56">56</a>, <a href="#Page_57">57</a></li> + <li>elected senator in spite of insufficient residence, <a href="#Page_58">58</a></li> + <li>acquaintance with Dallas, <a href="#Page_58">58</a></li> + <li>on journey with him, meets Hannah Nicholson, <a href="#Page_59">59</a></li> + <li>marriage, <a href="#Page_59">59</a></li> + <li>his family connections by marriage, <a href="#Page_59">59</a></li> + <li>later business connections with brother-in-law, J. W. Nicholson, <a href="#Page_60">60</a></li> + <li>takes seat as United States senator, <a href="#Page_60">60</a></li> + <li>his election protested on ground of insufficient residence, <a href="#Page_60">60</a>, <a href="#Page_61">61</a></li> + <li>complains of membership of committee to consider case, <a href="#Page_61">61</a></li> + <li>his exact status, <a href="#Page_62">62</a></li> + <li>submits statement of facts to Senate, <a href="#Page_62">62</a></li> + <li>is declared disqualified by narrow majority, <a href="#Page_62">62</a>, <a href="#Page_63">63</a></li> + <li>his dignified conduct of case, <a href="#Page_63">63</a></li> + <li>pending the decision, introduces resolution calling upon Hamilton to make a minutely itemized report, <a href="#Page_64">64</a></li> + <li>probably causes his own expulsion by thus irritating Federalists, <a href="#Page_64">64</a>, <a href="#Page_65">65</a></li> + <li>later obliged to answer a similar demand from Federalists, <a href="#Page_65">65</a></li> + <li>not cast down by exclusion, <a href="#Page_65">65</a></li> + <li>gains increased popularity in Pennsylvania, <a href="#Page_65">65</a>, <a href="#Page_66">66</a></li> + </ul></li> +<li><i>In Whiskey Insurrection.</i> + <ul class="IX"> + <li>Takes wife to Fayette County, <a href="#Page_67">67</a></li> + <li>at outbreak of violence advises distillers to submit to law, <a href="#Page_69">69</a></li> + <li>his estimate of numbers of insurgents in arms, <a href="#Page_73">73</a></li> + <li>remains at first aloof from excitement, <a href="#Page_75">75</a></li> + <li>determines to take control of movement, <a href="#Page_75">75</a>, <a href="#Page_76">76</a></li> + <li>alarmed at probable excesses of mob and danger of repression, <a href="#Page_76">76</a></li> + <li>delegate to convention at Parkinson's Ferry, <a href="#Page_78">78</a></li> + <li>confers with Marshall, <a href="#Page_78">78</a></li> + <li>chosen secretary, <a href="#Page_79">79</a></li> + <li>opposes resolution to resist by force, and moves reference of resolutions to a committee, <a href="#Page_80">80</a></li> + <li>succeeds in modifying resolutions not to obey excise and trial laws, <a href="#Page_80">80</a></li> + <li>on committee on resolutions, <a href="#Page_80">80</a></li> + <li>on committee to confer with government commissioners, <a href="#Page_81">81</a></li> + <li>points out folly of resistance, <a href="#Page_81">81</a></li> + <li>counsels submission, <a href="#Page_81">81</a></li> + <li>his eloquent speech, <a href="#Page_82">82</a>, <a href="#Page_83">83</a></li> + <li>prevents anarchy, <a href="#Page_82">82</a></li> + <li>charged by J. C. Hamilton with cowardice, <a href="#Page_84">84</a></li> + <li>his real courage, <a href="#Page_84">84</a></li> + <li>hastens submission of Fayette County, <a href="#Page_85">85</a></li> + <li>secures adoption of declaration defending county's action, <a href="#Page_85">85</a></li> + <li>secretary of meeting at Parkinson's Ferry, which makes complete submission, <a href="#Page_89">89</a></li> + <li>considered by Federalists to be chief instigator of the insurrection, <a href="#Page_90">90</a></li> + <li>describes conversation with Dallas, <a href="#Page_92">92</a></li> + <li>again chosen to legislature and also to Congress, <a href="#Page_93">93</a></li> + <li>his election to Assembly contested and declared void, <a href="#Page_93">93</a>, <a href="#Page_94">94</a></li> + <li>in his speech during debate admits error of his course, <a href="#Page_94">94</a></li> + <li>urges Badollet to secure reëlection of all Western assemblymen, <a href="#Page_95">95</a></li> + <li>re-elected to legislature, <a href="#Page_95">95</a></li> + <li>witness before grand jury in trial of prisoners, <a href="#Page_96">96</a></li> + <li>draws petition to Washington for pardon of offenders, <a href="#Page_96">96</a></li> + <li>his loyalty to constituents, <a href="#Page_96">96</a></li> + </ul></li> +<li><i>Member of Congress.</i> + <ul class="IX"> + <li>Moves appointment of committee on finance to control Treasury, <a href="#Page_106">106</a></li> + <li>appointed upon it, <a href="#Page_106">106</a></li> + <li>wishes to put appropriations on permanent footing, <a href="#Page_107">107</a>, <a href="#Page_108">108</a></li> + <li>refuses to devote military funds to establishing Indian trading posts, <a href="#Page_108">108</a></li> + <li>opposes habit of appropriating without debate, even to objects already approved, <a href="#Page_109">109</a></li> + <li>supports resolutions calling for papers in Jay treaty, <a href="#Page_110">110</a></li> + <li>upholds power of House of Representatives, <a href="#Page_111">111</a>, <a href="#Page_112">112</a></li> + <li>denies that treaties override discretion of House, <a href="#Page_112">112</a>, <a href="#Page_113">113</a></li> + <li>appointed to carry call to Washington, <a href="#Page_114">114</a></li> + <li>claims right of House to participate in treaties, <a href="#Page_114">114</a></li> + <li>stands beside Madison as leader of debate, <a href="#Page_115">115</a></li> + <li>insists on separate consideration of treaties, <a href="#Page_118">118</a></li> + <li>objects to Federalists' threats of war with England, <a href="#Page_118">118</a>, <a href="#Page_119">119</a></li> + <li>complains of abandonment of “free ships” principle in Jay's treaty, <a href="#Page_119">119</a></li> + <li>low opinion of Indians, <a href="#Page_122">122</a></li> + <li>urges resistance to impressment, <a href="#Page_122">122</a></li> + <li>suggests plan for advantageous sale of public lands, <a href="#Page_122">122</a></li> + <li>and their use to pay debt, <a href="#Page_122">122</a></li> + <li>views on taxation, <a href="#Page_123">123</a></li> + <li>opposes military establishment and navy, <a href="#Page_123">123</a>, <a href="#Page_124">124</a></li> + <li>laments necessity of payment to United States Bank, <a href="#Page_124">124</a></li> + <li>attacked for participation in Whiskey Insurrection, <a href="#Page_124">124</a></li> + <li>makes no reply, <a href="#Page_125">125</a></li> + <li>criticises conduct of Treasury Department, <a href="#Page_125">125</a></li> + <li>opposes principle of a national debt, <a href="#Page_125">125</a></li> + <li>asserts a great increase in public debt, <a href="#Page_126">126</a></li> + <li>defends assertion against W. Smith, <a href="#Page_126">126</a></li> + <li>objects to adjournment to pay respects to Washington on birthday, <a href="#Page_126">126</a></li> + <li>recognized as leader of opposition by Federalists, <a href="#Page_127">127</a></li> + <li>does not expect or desire renomination, <a href="#Page_127">127</a></li> + <li>reëlected to Congress, <a href="#Page_127">127</a></li> + <li>becomes leader of Republicans in House, <a href="#Page_128">128</a></li> + <li>wishes House to compliment Washington personally on his retirement, but not his administration, <a href="#Page_129">129</a></li> + <li>describes Andrew Jackson's appearance, 129 n.;</li> + <li>insists on payment of indebtedness of States to government, <a href="#Page_129">129</a></li> + <li>chairman of conference committee, <a href="#Page_129">129</a></li> + <li>opposes army and navy expenditure, <a href="#Page_129">129</a>, <a href="#Page_130">130</a></li> + <li>secures passage of bill confining treasury expenditures, <a href="#Page_130">130</a></li> + <li>in sympathy and confidence of Jefferson, <a href="#Page_133">133</a></li> + <li>deprecates debating foreign relations, <a href="#Page_134">134</a></li> + <li>wishes to treat France like other nations, <a href="#Page_134">134</a></li> + <li>opposes threatening France, <a href="#Page_135">135</a></li> + <li>joins moderate Republicans in voting with Federalists for address to President, <a href="#Page_136">136</a></li> + <li>opposes appropriation for defense, <a href="#Page_137">137</a></li> + <li>objects to employment of frigates, <a href="#Page_137">137</a></li> + <li>favors defense of ports and harbors only, <a href="#Page_137">137</a></li> + <li>opposes salt duty, <a href="#Page_137">137</a></li> + <li>and excessive loans, <a href="#Page_137">137</a></li> + <li>points out method of impeachment in Blount case, <a href="#Page_138">138</a></li> + <li>describes his desire for moderation, <a href="#Page_138">138</a></li> + <li>calls Federalists aristocrats, <a href="#Page_139">139</a></li> + <li>votes against presenting answer to message in person, <a href="#Page_140">140</a></li> + <li>now acknowledged leader of Republicans, <a href="#Page_140">140</a></li> + <li>presents anti-slavery petitions from Pennsylvania, <a href="#Page_140">140</a></li> + <li>his opinion of use of foreign coins, <a href="#Page_140">140</a></li> + <li>estimate of specie in United States, <a href="#Page_141">141</a></li> + <li>opposes proposal to expel Lyon, <a href="#Page_141">141</a></li> + <li>on executive power of appointment, <a href="#Page_142">142</a></li> + <li>wishes to abandon foreign political intercourse, <a href="#Page_143">143</a></li> + <li>upholds power of House to check executive through appropriations, <a href="#Page_143">143</a></li> + <li>makes elaborate speech on checks of legislature on executive, <a href="#Page_144">144</a>-<a href="#Page_146">146</a></li> + <li>and on necessity of abstention from European politics, <a href="#Page_145">145</a></li> + <li>practical drawbacks to his theory, <a href="#Page_147">147</a></li> + <li>his speech circulated by party, <a href="#Page_147">147</a></li> + <li>opposes war measures against France, <a href="#Page_148">148</a></li> + <li>supports call for papers of envoys to France, <a href="#Page_148">148</a></li> + <li>presents petition against authorizing private citizens to arm vessels, <a href="#Page_149">149</a></li> + <li>opposes bill to authorize President to arm convoys, <a href="#Page_149">149</a></li> + <li>prefers submission to French outrages rather than war, <a href="#Page_150">150</a>, <a href="#Page_151">151</a></li> + <li>attacked by Allen of Connecticut, his reply, <a href="#Page_150">150</a>, <a href="#Page_151">151</a></li> + <li>opposes non-intercourse with France, <a href="#Page_151">151</a></li> + <li>declares Sedition Bill unconstitutional, <a href="#Page_152">152</a></li> + <li>high words with Harper over Alien Bill, <a href="#Page_152">152</a></li> + <li>taunted by Harper, <a href="#Page_152">152</a></li> + <li>opposes declaration of state of relations by Congress, <a href="#Page_153">153</a></li> + <li>votes against abrogating treaty with France, <a href="#Page_154">154</a></li> + <li>continues to harass Wolcott in the Treasury, <a href="#Page_154">154</a></li> + <li>his even temper, <a href="#Page_154">154</a></li> + <li>opposes bill to punish correspondence with foreign princes, <a href="#Page_155">155</a>, <a href="#Page_156">156</a></li> + <li>opposes bill to incite French West Indies to revolt, <a href="#Page_156">156</a>, <a href="#Page_157">157</a></li> + <li>opposes authorization of President to suspend commerce in certain cases, <a href="#Page_157">157</a></li> + <li>opposes building ships of the line, <a href="#Page_157">157</a></li> + <li>tries to defeat or ameliorate Alien and Sedition Laws, <a href="#Page_157">157</a>, <a href="#Page_158">158</a></li> + <li>aided in sixth Congress by Nicholas and Macon, <a href="#Page_159">159</a></li> + <li>votes with Federalists to suspend commercial intercourse with France, <a href="#Page_159">159</a></li> + <li>opposes proposal to amend Foreign Intercourse Act, <a href="#Page_160">160</a>, <a href="#Page_161">161</a></li> + <li>opposes bill requiring report from secretary of treasury, because originating in Senate, <a href="#Page_161">161</a></li> + <li>opposes continuance of non-intercourse, <a href="#Page_162">162</a></li> + <li>his position in presidential contest in 1800, <a href="#Page_164">164</a></li> + <li>irritated by influence of S. Smith over Jefferson and Madison, <a href="#Page_164">164</a></li> + <li>reasons that attempt of Federalists to defeat an election by the House is constitutional, <a href="#Page_164">164</a>, <a href="#Page_165">165</a></li> + <li>but any president pro tempore would be unconstitutional, <a href="#Page_165">165</a></li> + <li>suggests course of action for Republicans, <a href="#Page_165">165</a></li> + <li>probably expects to use violence against Federalists, <a href="#Page_166">166</a></li> + <li>review of his congressional career, <a href="#Page_167">167</a></li> + <li>leader of party, yet not a partisan, <a href="#Page_167">167</a>, <a href="#Page_168">168</a></li> + <li>one of Republican triumvirate, <a href="#Page_168">168</a></li> + <li>his departure leaves party without a legislative leader, <a href="#Page_168">168</a></li> + </ul></li> +<li><i>Secretary of the Treasury: Funding.</i> + <ul class="IX"> + <li>His place as financier in United States history, <a href="#Page_170">170</a></li> + <li>Jefferson's choice for secretary of treasury, <a href="#Page_178">178</a>, <a href="#Page_179">179</a></li> + <li>hated by Federalists in Senate, <a href="#Page_178">178</a></li> + <li>assigned to Treasury by public opinion, <a href="#Page_179">179</a></li> + <li>doubts his abilities and chances of confirmation by Senate, <a href="#Page_180">180</a></li> + <li>plans to move to New York, <a href="#Page_180">180</a></li> + <li>refuses to accept until confirmed by Senate, <a href="#Page_181">181</a></li> + <li>finally agrees to serve, <a href="#Page_181">181</a></li> + <li>brings family to Washington and enters on duties, <a href="#Page_181">181</a>, <a href="#Page_182">182</a></li> + <li>his thoroughness, <a href="#Page_182">182</a></li> + <li>exhausts himself by his energy, <a href="#Page_182">182</a></li> + <li>sketch of his financial career in Pennsylvania and in Congress, <a href="#Page_183">183</a>, <a href="#Page_184">184</a></li> + <li>his one principle the extinguishment of debt, <a href="#Page_184">184</a></li> + <li>publishes sketch of the finances in 1796, <a href="#Page_184">184</a></li> + <li>publishes in July, 1800, “Views of Public Debt,” etc., <a href="#Page_184">184</a>, <a href="#Page_185">185</a></li> + <li>ability of these essays, <a href="#Page_185">185</a></li> + <li>outlines policy of expenditures and receipts to Jefferson, <a href="#Page_186">186</a></li> + <li>endeavors to systematize treasury statements, <a href="#Page_186">186</a></li> + <li>points out economic reasons for increase of revenue, <a href="#Page_187">187</a></li> + <li>urges specific appropriations by Congress and absence of departmental discretion, <a href="#Page_187">187</a></li> + <li>urges reduction, both of debt and of taxes, <a href="#Page_188">188</a></li> + <li>unable to work with other departments because of Jefferson's habits, <a href="#Page_188">188</a></li> + <li>lack of elasticity in his plans, <a href="#Page_189">189</a></li> + <li>embarrassed by complications in department, <a href="#Page_189">189</a></li> + <li>his first report to Congress, <a href="#Page_190">190</a></li> + <li>denies existence of any surplus, <a href="#Page_190">190</a></li> + <li>explains plan for extinction of debt by 1817, <a href="#Page_191">191</a></li> + <li>given authority by Congress, <a href="#Page_192">192</a></li> + <li>table showing success of his measures, <a href="#Page_192">192</a></li> + <li>in spite of Louisiana purchase, reduces debt by one third, <a href="#Page_192">192</a>, <a href="#Page_194">194</a></li> + <li>dissatisfied with financial terms of Louisiana purchase, <a href="#Page_193">193</a></li> + <li>novelty of his distinction between place of payment of interest and principal, <a href="#Page_195">195</a></li> + <li>arranges that Louisiana debt shall not retard payment of old debt, <a href="#Page_196">196</a>, <a href="#Page_197">197</a></li> + <li>his report of 1805, <a href="#Page_107">107</a></li> + <li>proposes funding of outstanding obligations in 1807, <a href="#Page_198">198</a></li> + <li>reports a full Treasury on occasion of threatened war with England, <a href="#Page_198">198</a></li> + <li>discusses application of surplus to war expenses, <a href="#Page_199">199</a></li> + <li>suggests methods of war taxation, <a href="#Page_200">200</a></li> + <li>prefers war to embargo, <a href="#Page_201">201</a></li> + <li>draws the embargo bill, <a href="#Page_201">201</a></li> + <li>discusses its financial effect, <a href="#Page_201">201</a>, <a href="#Page_202">202</a></li> + <li>confident attitude as to war loans, <a href="#Page_202">202</a></li> + <li>his policy supported by Jefferson, <a href="#Page_203">203</a></li> + <li>realizes that war will prevent reduction of debt, <a href="#Page_203">203</a>, <a href="#Page_204">204</a></li> + <li>relies on customs, tonnage dues, and land sales for revenue, <a href="#Page_204">204</a></li> + <li>reports deficiency owing to embargo, <a href="#Page_204">204</a></li> + <li>forced to borrow, <a href="#Page_204">204</a></li> + <li>reviews situation in 1811 with satisfaction, <a href="#Page_205">205</a>, <a href="#Page_206">206</a></li> + <li>asks for increase of revenue in case of war, <a href="#Page_206">206</a></li> + <li>proposes war loans, <a href="#Page_207">207</a></li> + <li>and interest-bearing treasury notes, <a href="#Page_207">207</a></li> + <li>insists on actual increased receipts, not apparent measures, <a href="#Page_207">207</a>, <a href="#Page_208">208</a></li> + <li>on necessity of upholding credit, <a href="#Page_209">209</a></li> + <li>receives authority from Congress, <a href="#Page_209">209</a></li> + <li>submits war budget, <a href="#Page_209">209</a>, <a href="#Page_210">210</a></li> + <li>his last annual statement in 1812, <a href="#Page_211">211</a></li> + <li>reports need of new loans, <a href="#Page_212">212</a></li> + <li>his personal friends, Parish, Girard, and Astor, save government credit, <a href="#Page_213">213</a>, <a href="#Page_214">214</a></li> + <li>fails to negotiate loan at par, <a href="#Page_214">214</a></li> + <li>failure of his hopes to extinguish debt, <a href="#Page_215">215</a></li> + <li>his policy vindicated by successors, <a href="#Page_215">215</a></li> + <li>charged with sacrificing defenses of country to reduction of debt, <a href="#Page_216">216</a></li> + <li>attempted defense of his course by “Democratic Review,” <a href="#Page_216">216</a></li> + <li>his determination to follow financial principles and not a partisan course, <a href="#Page_216">216</a>, <a href="#Page_218">218</a></li> + <li>does not invent new sources of revenue, <a href="#Page_218">218</a></li> + <li>his estimates follow those of Hamilton, <a href="#Page_219">219</a></li> + <li>estimates permanent revenue, <a href="#Page_220">220</a></li> + <li>unable to abandon internal revenue, <a href="#Page_220">220</a></li> + <li>does not protest against its abolition by Congress, <a href="#Page_221">221</a></li> + <li>does not alter estimates in spite of increase of revenue, <a href="#Page_221">221</a></li> + <li>proposes additional tax to meet war with Tripoli, <a href="#Page_222">222</a></li> + <li>applies surplus as far as possible to Louisiana purchase, <a href="#Page_222">222</a></li> + <li>political effect of his success during Jefferson's first term, <a href="#Page_223">223</a></li> + <li>in 1805 raises estimate of permanent revenue, <a href="#Page_223">223</a></li> + <li>impresses economy upon other departments, <a href="#Page_223">223</a></li> + <li>prepares scheme of internal improvements, <a href="#Page_224">224</a></li> + <li>after Chesapeake affair recommends borrowing, <a href="#Page_224">224</a></li> + <li>and doubling duties in case of war, <a href="#Page_225">225</a></li> + <li>receipts during his second term, <a href="#Page_226">226</a></li> + <li>his warning of diminished resources in future ignored by Jefferson, <a href="#Page_226">226</a></li> + <li>estimates for 1809, <a href="#Page_228">228</a></li> + <li>points out necessity of submitting to war or loss of foreign trade, <a href="#Page_228">228</a>, <a href="#Page_229">229</a></li> + <li>promises not to use internal taxes, <a href="#Page_229">229</a></li> + <li>reports diminished income and deficiency in 1809, <a href="#Page_230">230</a></li> + <li>declares for a strict enforcement or abandonment of embargo, <a href="#Page_230">230</a></li> + <li>disgusted at refusal of Congress to recharter United States Bank, <a href="#Page_231">231</a></li> + <li>tenders resignation to Madison, <a href="#Page_231">231</a></li> + <li>obliged to remain for lack of possible successor, <a href="#Page_231">231</a></li> + <li>continues to advocate increased customs, <a href="#Page_232">232</a></li> + <li>points out that, had his recommendations been followed in 1809, there would have been a large surplus, <a href="#Page_232">232</a>, <a href="#Page_233">233</a></li> + <li>forces Congress to choose between a bank or internal taxes, <a href="#Page_233">233</a>, <a href="#Page_234">234</a></li> + <li>himself proposes internal taxes, <a href="#Page_234">234</a></li> + <li>his last report predicts deficiency and asks a loan, <a href="#Page_235">235</a></li> + <li>his recommendations of internal taxes disregarded, <a href="#Page_235">235</a></li> + <li>his previous use of Hamilton's internal taxes, <a href="#Page_235">235</a></li> + <li>his suggestions followed in 1813, <a href="#Page_236">236</a></li> + <li>connection with sale of public lands, <a href="#Page_238">238</a></li> + <li>unable fully to utilize this resource, <a href="#Page_239">239</a></li> + <li>earliest public advocate of free trade, <a href="#Page_240">240</a></li> + <li>later in career becomes leader of cause, <a href="#Page_241">241</a></li> + <li>his part in convention of 1831, <a href="#Page_241">241</a></li> + <li>draws memorial to Congress, <a href="#Page_242">242</a></li> + <li>his views followed in tariff of 1846, <a href="#Page_242">242</a></li> + <li>opposed to protection, <a href="#Page_242">242</a></li> + <li>violently attacked by Clay, who apologizes, <a href="#Page_242">242</a></li> + <li>introduces reforms in annual report, <a href="#Page_245">245</a></li> + <li>tries to induce Congress and departments to adopt scheme of minute appropriations, <a href="#Page_245">245</a>, <a href="#Page_246">246</a></li> + <li>carries system into his own household, <a href="#Page_246">246</a></li> + <li>effects of his methods, <a href="#Page_247">247</a></li> + <li>on Jefferson's dislike of banks, <a href="#Page_251">251</a></li> + <li>his report of 1809 on Hamilton's bank, <a href="#Page_252">252</a>, <a href="#Page_253">253</a></li> + <li>suggests its renewal, with modifications, <a href="#Page_253">253</a>, <a href="#Page_254">254</a></li> + <li>his testimony as to its value, <a href="#Page_255">255</a>, <a href="#Page_256">256</a></li> + <li>estimate as to state banks in 1811, <a href="#Page_258">258</a></li> + <li>describes hostility of Astor to bank, <a href="#Page_259">259</a></li> + <li>left, by failure to renew bank charter, at mercy of capitalists, <a href="#Page_260">260</a></li> + <li>his opinion that absence of bank caused suspension of specie payments in 1815, <a href="#Page_262">262</a></li> + <li>on Jefferson's proposal to issue paper money, <a href="#Page_264">264</a></li> + <li>his success a vindication of Federalist finance, <a href="#Page_266">266</a></li> + <li>opinion of services of second national bank, <a href="#Page_266">266</a></li> + <li>declines offer of secretaryship in 1816, <a href="#Page_266">266</a>, <a href="#Page_267">267</a></li> + <li>urges Madison to restore specie payment, <a href="#Page_267">267</a></li> + <li>declines position as president of Bank of United States in 1822, <a href="#Page_268">268</a></li> + <li>prepares statement of relative value of gold and silver, <a href="#Page_268">268</a></li> + <li>writes “Considerations on Currency and Banking,” <a href="#Page_268">268</a></li> + <li>advocates use of specie and limited use of paper money, <a href="#Page_268">268</a></li> + <li>accepts presidency of National Bank of New York, <a href="#Page_269">269</a></li> + <li>his opinion of Jackson, <a href="#Page_270">270</a></li> + <li>his bank involved in panic of 1837, <a href="#Page_272">272</a></li> + <li>conducts resumption, <a href="#Page_273">273</a></li> + <li>chairman of committee of banks, <a href="#Page_273">273</a></li> + <li>submits reports, <a href="#Page_275">275</a></li> + <li>declines presidency of Bank of Commerce, <a href="#Page_276">276</a></li> + <li>resigns presidency of National Bank, <a href="#Page_277">277</a></li> + <li>publishes “Suggestions on Banks and Currency,” <a href="#Page_277">277</a></li> + <li>condemns paper money, <a href="#Page_277">277</a></li> + <li>declines offer of Treasury Department from Tyler, <a href="#Page_278">278</a></li> + <li>in the cabinet, agrees with Republican leaders on all points except bank, <a href="#Page_279">279</a>, <a href="#Page_280">280</a></li> + <li>prepares circular announcing disregard of party in appointments, <a href="#Page_281">281</a></li> + <li>and condemning political influence of officials, <a href="#Page_281">281</a></li> + <li>his policy opposed by Jefferson, <a href="#Page_282">282</a></li> + <li>obliged to follow cabinet in policy of partisan appointments, <a href="#Page_282">282</a></li> + <li>advises early preparation for campaign of 1804, <a href="#Page_283">283</a></li> + <li>wishes States divided into election districts, <a href="#Page_283">283</a></li> + <li>criticises annual messages of Jefferson, <a href="#Page_283">283</a></li> + <li>his proposal to appoint a woman to office condemned by Jefferson, <a href="#Page_283">283</a></li> + <li>suggests in vain regular cabinet consultations, <a href="#Page_283">283</a>, <a href="#Page_284">284</a></li> + <li>urges payment of tribute to Tripoli rather than war, <a href="#Page_284">284</a></li> + <li>opinion asked on points of constitutional law, <a href="#Page_284">284</a></li> + <li>holds inherent right of United States to acquire territory, <a href="#Page_285">285</a></li> + <li>disapproves of Texas annexation, <a href="#Page_285">285</a></li> + <li>advises Jefferson concerning Louisiana treaty, <a href="#Page_285">285</a>, <a href="#Page_286">286</a></li> + <li>attacked by Duane, for not turning out Federalists, <a href="#Page_286">286</a></li> + <li>absence of favoritism in his appointments, <a href="#Page_286">286</a>, <a href="#Page_287">287</a></li> + <li>supervises sale of lands, <a href="#Page_287">287</a></li> + <li>acquaintance with Chôteau, <a href="#Page_278">278</a></li> + <li>drafts promise of protection for Astor's fur trade, <a href="#Page_288">288</a></li> + <li>opposes vainly Jefferson's gunboat scheme, <a href="#Page_289">289</a></li> + <li>submits plan of defense against England, <a href="#Page_289">289</a></li> + <li>urges moderate tone in message, <a href="#Page_290">290</a></li> + <li>devises scheme of internal improvements, <a href="#Page_290">290</a></li> + <li>doubts success of a National University, <a href="#Page_291">291</a></li> + <li>opposes a permanent embargo, <a href="#Page_291">291</a></li> + <li>prepares Campbell's report urging resistance, <a href="#Page_292">292</a></li> + <li>receives authority from Congress to enforce non-intercourse, <a href="#Page_293">293</a></li> + <li>favors war, <a href="#Page_293">293</a></li> + <li>submits “Notes on Political Situation,” <a href="#Page_294">294</a></li> + <li>opposes ordering out naval force in favor of letters of marque, <a href="#Page_294">294</a></li> + <li>his appointment as secretary of state prevented by Republican opponents in Senate, <a href="#Page_294">294</a>, <a href="#Page_295">295</a></li> + <li>continues to advise Madison, <a href="#Page_295">295</a></li> + <li>his measures meet opposition in Senate, <a href="#Page_295">295</a></li> + <li>deserted by Madison in his attempt to secure re-chartering of bank, <a href="#Page_296">296</a></li> + <li>tenders resignation, <a href="#Page_296">296</a></li> + <li>bitterly attacked in “Aurora,” <a href="#Page_297">297</a></li> + <li>accused of dominating Madison and of corruption, <a href="#Page_297">297</a>, <a href="#Page_298">298</a></li> + <li>considered by Jefferson ablest man in administration except Madison, <a href="#Page_298">298</a></li> + <li>unable to command support in Congress, submits to war policy, <a href="#Page_298">298</a>, <a href="#Page_299">299</a></li> + <li>asks leave of absence and appointment as minister to Russia, <a href="#Page_299">299</a></li> + <li>attempts made to alienate him from Jefferson and Madison, <a href="#Page_299">299</a></li> + <li>his high regard for Jefferson, <a href="#Page_300">300</a></li> + <li>continued good terms with Madison, <a href="#Page_300">300</a></li> + </ul></li> +<li><i>Minister to Russia; Treaty of Ghent.</i> + <ul class="IX"> + <li>His voyage with Bayard, <a href="#Page_301">301</a></li> + <li>visits Gottenburg and Copenhagen, <a href="#Page_301">301</a></li> + <li>at St. Petersburg meets J. Q. Adams, <a href="#Page_302">302</a></li> + <li>his knowledge of history, <a href="#Page_302">302</a></li> + <li>lack of diplomatic experience as compared with Adams, <a href="#Page_302">302</a></li> + <li>contrast in character with Adams, <a href="#Page_303">303</a></li> + <li>considers peace necessary because of inefficiency in conduct of war, <a href="#Page_303">303</a></li> + <li>abandons his former opposition to a navy, <a href="#Page_303">303</a></li> + <li>low opinion of English diplomacy, <a href="#Page_304">304</a></li> + <li>view of necessity of an English renunciation of impressment, <a href="#Page_305">305</a></li> + <li>writes to Barings, <a href="#Page_305">305</a></li> + <li>receives Baring's reply, <a href="#Page_306">306</a>, <a href="#Page_307">307</a></li> + <li>explains case to Romanzoff, <a href="#Page_307">307</a></li> + <li>assured by Moreau of imperial sympathy, <a href="#Page_308">308</a></li> + <li>warned by him of England's purposes, <a href="#Page_308">308</a></li> + <li>writes to Monroe asking instructions, <a href="#Page_308">308</a>, <a href="#Page_309">309</a></li> + <li>informs Baring of inability to negotiate except through Russia, <a href="#Page_309">309</a></li> + <li>writes to Moreau, <a href="#Page_309">309</a>, <a href="#Page_310">310</a></li> + <li>instructs Dallas as to duties in London, <a href="#Page_310">310</a></li> + <li>receives news of refusal of Senate to confirm his nomination, <a href="#Page_310">310</a></li> + <li>contemplates visit to London, <a href="#Page_311">311</a></li> + <li>hears that British government proposes to treat directly, <a href="#Page_311">311</a></li> + <li>unable to return home, <a href="#Page_312">312</a></li> + <li>journey to Amsterdam, <a href="#Page_312">312</a></li> + <li>not at first included in second commission, but later added, <a href="#Page_312">312</a></li> + <li>visits London, <a href="#Page_313">313</a></li> + <li>learns of arrival of Clay and Russell, <a href="#Page_313">313</a></li> + <li>urges Lafayette to mediate, <a href="#Page_313">313</a></li> + <li>wishes to change place of negotiation from Gottenburg, <a href="#Page_314">314</a></li> + <li>urges Crawford to secure interposition of emperor, <a href="#Page_315">315</a></li> + <li>receives letter from Lafayette through Humboldt, promising aid, <a href="#Page_315">315</a></li> + <li>makes official appeal to emperor, <a href="#Page_315">315</a></li> + <li>learns of refusal of England to admit intervention, <a href="#Page_316">316</a></li> + <li>warns Monroe of English preparations, <a href="#Page_316">316</a></li> + <li>visits Paris, <a href="#Page_316">316</a></li> + <li>meets British commissioners at Ghent, <a href="#Page_316">316</a></li> + <li>notifies Monroe of determination of England to dismember United States and attack New Orleans, <a href="#Page_317">317</a>, <a href="#Page_318">318</a></li> + <li>despairs of peace, <a href="#Page_318">318</a></li> + <li>draws reply of commissioners rejecting British demands, <a href="#Page_319">319</a></li> + <li>explains reasons for willingness to discuss Indian article, <a href="#Page_319">319</a>, <a href="#Page_320">320</a></li> + <li>condemns burning of public buildings at Washington, <a href="#Page_320">320</a></li> + <li>expresses confidence in American securities, <a href="#Page_320">320</a></li> + <li>has difficulty in mediating between Clay and Adams on fisheries and Mississippi navigation, <a href="#Page_322">322</a>, <a href="#Page_323">323</a></li> + <li>proposes engagement to abandon use of savages in future war, <a href="#Page_323">323</a></li> + <li>the credit of treaty due to him, <a href="#Page_324">324</a></li> + <li>his diplomatic skill, <a href="#Page_324">324</a></li> + <li>wins European admiration, <a href="#Page_325">325</a></li> + <li>visits Geneva, <a href="#Page_325">325</a>, <a href="#Page_326">326</a></li> + <li>sees Napoleon during Hundred Days, <a href="#Page_326">326</a></li> + <li>appointed minister to France, <a href="#Page_326">326</a></li> + <li>with Clay and Adams negotiates commercial convention, <a href="#Page_326">326</a>, <a href="#Page_327">327</a></li> + <li>friendly attitude of Castlereagh toward, <a href="#Page_326">326</a></li> + <li>on value of abolition of discriminating duties, <a href="#Page_327">327</a></li> + <li>returns to New York, <a href="#Page_327">327</a></li> + <li>withholds acceptance of French mission, <a href="#Page_327">327</a></li> + <li>describes to Jefferson European opinion of United States, <a href="#Page_327">327</a></li> + <li>describes condition of France after Revolution, <a href="#Page_327">327</a>, <a href="#Page_328">328</a></li> + <li>does not consider republican form of government suitable everywhere, <a href="#Page_328">328</a></li> + <li>weary of politics, declines nomination to Congress, <a href="#Page_329">329</a></li> + <li>declines French mission on ground of poverty, <a href="#Page_329">329</a></li> + <li>finally yields to Monroe's requests, <a href="#Page_329">329</a></li> + <li>refuses offer of Treasury Department, his reasons, <a href="#Page_330">330</a></li> + <li>rejoicings of Jefferson over his appointment, <a href="#Page_331">331</a></li> + </ul></li> +<li><i>Minister to France.</i> + <ul class="IX"> + <li>Received by Richelieu, <a href="#Page_331">331</a></li> + <li>discusses American sympathy for Bonaparte, <a href="#Page_331">331</a>, <a href="#Page_332">332</a></li> + <li>received by Louis XVIII., <a href="#Page_332">332</a></li> + <li>familiar relations with royal family, <a href="#Page_332">332</a></li> + <li>negotiates for indemnity for seizures, <a href="#Page_332">332</a></li> + <li>annoyed by French demand for dismissal of a disrespectful American postmaster, <a href="#Page_333">333</a></li> + <li>advises Adams and Eustis in negotiations, <a href="#Page_333">333</a></li> + <li>returns to Paris, <a href="#Page_334">334</a></li> + <li>with Rush conducts negotiations with England, <a href="#Page_334">334</a>, <a href="#Page_335">335</a></li> + <li>tries to explain Jackson's occupation of Pensacola, <a href="#Page_336">336</a></li> + <li>refuses to mediate with France between Spain and revolted colonies, <a href="#Page_336">336</a></li> + <li>points out disadvantages of war with Spain, <a href="#Page_337">337</a></li> + <li>succeeds in pacifying French indignation at seizure of Apollon, <a href="#Page_338">338</a></li> + <li>does not adopt Adams's line of defense, <a href="#Page_338">338</a></li> + <li>Adams's opinion of, in diary, <a href="#Page_338">338</a>, <a href="#Page_339">339</a></li> + <li>his opinion of Adams, <a href="#Page_329">329</a></li> + <li>continues to negotiate with regard to commerce, <a href="#Page_340">340</a></li> + <li>loath to return without success, <a href="#Page_340">340</a></li> + <li>criticises Adams's terms of French treaty as unfavorable, but advises signing, <a href="#Page_340">340</a></li> + <li>fails to secure satisfaction and returns to America, <a href="#Page_341">341</a></li> + <li>settles at Friendship Hill, <a href="#Page_341">341</a></li> + <li>pressed by Monroe to return to France, <a href="#Page_341">341</a>, <a href="#Page_342">342</a></li> + <li>declines mission to Panama Congress, <a href="#Page_342">342</a></li> + </ul></li> +<li><i>Minister to England.</i> + <ul class="IX"> + <li>Appointed envoy and minister, with liberty to return on completion of negotiations, <a href="#Page_342">342</a>, <a href="#Page_343">343</a></li> + <li>secures modification of instructions, <a href="#Page_343">343</a></li> + <li>complains of peremptory character of instructions, <a href="#Page_344">344</a></li> + <li>his voyage, <a href="#Page_344">344</a></li> + <li>dislike of English and French diplomacy, <a href="#Page_344">344</a></li> + <li>learns of English resentment at tone of American ministers, <a href="#Page_344">344</a>, <a href="#Page_345">345</a></li> + <li>negotiates with Canning, <a href="#Page_345">345</a></li> + <li>asks for instructions as to renewal of convention of 1815, <a href="#Page_345">345</a></li> + <li>pleased with ability of Lawrence as _chargé d'affaires_, <a href="#Page_346">346</a></li> + <li>his threat of war quoted by Chateaubriand, <a href="#Page_346">346</a></li> + <li>warned by Adams to yield nothing, <a href="#Page_346">346</a></li> + <li>concludes negotiation with Goderich, <a href="#Page_347">347</a></li> + <li>thinks Canning meant to discuss impressment, <a href="#Page_247">247</a></li> + <li>returns to America, congratulated by Adams, <a href="#Page_348">348</a></li> + <li>his social life in London, <a href="#Page_348">348</a></li> + <li>ready to accept French mission in 1834, <a href="#Page_349">349</a></li> + <li>prepares argument in Northeastern boundary arbitration, <a href="#Page_349">349</a></li> + <li>publishes an account of facts in the case, <a href="#Page_349">349</a></li> + <li>visited by Ashburton, <a href="#Page_350">350</a></li> + <li>publishes pamphlet on Oregon question, <a href="#Page_351">351</a></li> + <li>presides at meeting to protest against annexation of Texas, <a href="#Page_351">351</a></li> + <li>condemns Mexican war, <a href="#Page_352">352</a></li> + <li>publishes pamphlet concerning it, <a href="#Page_352">352</a></li> + <li>condemns “manifest destiny” talk, <a href="#Page_352">352</a>, <a href="#Page_353">353</a></li> + </ul></li> +<li><i>Republican Leader.</i> + <ul class="IX"> + <li>His opinion of contemporary political leaders, <a href="#Page_355">355</a>, <a href="#Page_356">356</a></li> + <li>prefers Crawford to Adams, <a href="#Page_356">356</a></li> + <li>requests Macon to take</li> + <li>part in caucus for Crawford, <a href="#Page_356">356</a></li> + <li>thinks universal suffrage compensates for dangers of consolidation, <a href="#Page_356">356</a></li> + <li>accepts reluctantly nomination for vice-president, <a href="#Page_357">357</a></li> + <li>dislikes formality of nomination, <a href="#Page_357">357</a></li> + <li>withdraws to help ticket, <a href="#Page_358">358</a></li> + <li>considers the election to prove decease of Republican party, <a href="#Page_359">359</a></li> + <li>condemns Jackson's violations of law, <a href="#Page_359">359</a></li> + <li>favors an insignificant or weak executive, <a href="#Page_359">359</a></li> + <li>visits Washington in 1829, notes disappearance of old régime, <a href="#Page_330">330</a></li> + </ul></li> +<li><i>Society, Literature, Science.</i> + <ul class="IX"> + <li>His land speculations not profitable, <a href="#Page_351">351</a></li> + <li>plans Genevese Colonization Association, <a href="#Page_361">361</a></li> + <li>loses money through Morris's failure, <a href="#Page_362">362</a></li> + <li>speculates in Virginia military lands, <a href="#Page_362">362</a></li> + <li>estimates value of estates, <a href="#Page_362">362</a>, <a href="#Page_363">363</a></li> + <li>ill at ease in general society, <a href="#Page_363">363</a></li> + <li>his establishment at Washington described by Irving, <a href="#Page_363">363</a></li> + <li>house burned by British, <a href="#Page_364">364</a></li> + <li>builds at Friendship Hill, finds it lonely in winter, <a href="#Page_364">364</a></li> + <li>visited by Lafayette in 1825, <a href="#Page_364">364</a>, <a href="#Page_365">365</a></li> + <li>settles permanently in New York, <a href="#Page_365">365</a></li> + <li>frequent changes of residence, <a href="#Page_365">365</a></li> + <li>devotes last years to scientific studies, <a href="#Page_366">366</a></li> + <li>conversational ability, <a href="#Page_366">366</a></li> + <li>chosen member of “The Club,” <a href="#Page_366">366</a> <a href="#Page_367">367</a></li> + <li>leads conversation, <a href="#Page_367">367</a></li> + <li>described by Irving, <a href="#Page_368">368</a></li> + <li>wishes to establish free university in New York, <a href="#Page_368">368</a></li> + <li>presides over council of New York University, <a href="#Page_369">369</a></li> + <li>resigns, owing to clerical opposition, <a href="#Page_370">370</a></li> + <li>continued interest in French politics, <a href="#Page_370">370</a></li> + <li>letter of Lafayette to, on marriage of his daughter, <a href="#Page_371">371</a></li> + <li>assists Polish refugees, <a href="#Page_372">372</a></li> + <li>interested in Indian customs, <a href="#Page_373">373</a>, <a href="#Page_374">374</a></li> + <li>writes for Humboldt a synopsis of Indian tribes, <a href="#Page_374">374</a></li> + <li>publishes Indian vocabularies, <a href="#Page_375">375</a></li> + <li>issues circulars inviting information, <a href="#Page_375">375</a></li> + <li>correspondence with individuals, <a href="#Page_375">375</a>, <a href="#Page_376">376</a></li> + <li>republishes Synopsis, <a href="#Page_377">377</a></li> + <li>scientific character of his results, <a href="#Page_377">377</a>, <a href="#Page_378">378</a></li> + <li>his advice requested concerning Smithson's bequest, <a href="#Page_378">378</a></li> + <li>its publications submitted to him, <a href="#Page_378">378</a>, <a href="#Page_379">379</a></li> + <li>founds American Ethnological Society, <a href="#Page_379">379</a></li> + <li>defrays cost of publishing its transactions, <a href="#Page_379">379</a></li> + <li>essay on nations of Mexico and Central America, <a href="#Page_380">380</a></li> + <li>authorizes General Scott to purchase documents in Mexico, <a href="#Page_380">380</a></li> + <li>writes introduction to Hale's “Indians of Northwest America,” <a href="#Page_380">380</a></li> + <li>gathers information regarding gold in America for Humboldt, <a href="#Page_381">381</a></li> + <li>describes his reasons for success, <a href="#Page_381">381</a></li> + <li>his caution in reasoning, <a href="#Page_382">382</a></li> + <li>fails to establish a literary periodical, <a href="#Page_382">382</a></li> + <li>chosen president of New York Historical Society, <a href="#Page_382">382</a></li> + <li>his inaugural address on course of United States History, <a href="#Page_382">382</a>-<a href="#Page_384">384</a></li> + <li>opinion of Washington, <a href="#Page_383">383</a>, <a href="#Page_384">384</a></li> + <li>friendly greeting to Adams in 1844, <a href="#Page_384">384</a></li> + <li>eulogized by Adams, <a href="#Page_384">384</a>, <a href="#Page_385">385</a></li> + <li>his party career contrasted with that of Adams, <a href="#Page_385">385</a></li> + <li>personal appearance and portraits, <a href="#Page_385">385</a>, <a href="#Page_386">386</a></li> + <li>crushed by loss of wife, <a href="#Page_387">387</a></li> + <li>death, <a href="#Page_387">387</a></li> + <li>eulogized by Bradish before Historical Society, <a href="#Page_388">388</a></li> + <li>acknowledges indebtedness to Bentham, <a href="#Page_388">388</a></li> + <li>his brain, <a href="#Page_389">389</a></li> + <li>summary of character and services, <a href="#Page_389">389</a></li> + </ul></li> +<li><i>Characteristics.</i> + <ul class="IX"> + <li>General estimates, <a href="#Page_1">1</a>, <a href="#Page_388">388</a> <a href="#Page_389">389</a></li> + <li>unfriendly views of, <a href="#Page_90">90</a>, <a href="#Page_297">297</a> <a href="#Page_338">338</a></li> + <li>his own estimate, <a href="#Page_381">381</a></li> + <li>ambition, <a href="#Page_5">5</a>, <a href="#Page_10">10</a> <a href="#Page_58">58</a>, <a href="#Page_127">127</a> <a href="#Page_180">180</a>, <a href="#Page_328">328</a></li> + <li>business ability, <a href="#Page_28">28</a>, <a href="#Page_60">60</a> <a href="#Page_361">361</a>, <a href="#Page_362">362</a></li> + <li>cosmopolitanism, <a href="#Page_7">7</a>, <a href="#Page_389">389</a></li> + <li>courage, <a href="#Page_75">75</a>, <a href="#Page_76">76</a> <a href="#Page_84">84</a></li> + <li>debt, aversion to, <a href="#Page_21">21</a></li> + <li>diplomatic ability, <a href="#Page_303">303</a>, <a href="#Page_324">324</a> <a href="#Page_325">325</a>, <a href="#Page_330">330</a> <a href="#Page_345">345</a></li> + <li>financial ability, <a href="#Page_45">45</a>, <a href="#Page_179">179</a> <a href="#Page_185">185</a>, <a href="#Page_215">215</a></li> + <li>friendliness, <a href="#Page_24">24</a>, <a href="#Page_30">30</a> <a href="#Page_300">300</a>, <a href="#Page_372">372</a></li> + <li>geography, love of, <a href="#Page_16">16</a></li> + <li>history, love of, <a href="#Page_3">3</a>, <a href="#Page_302">302</a></li> + <li>indolence, <a href="#Page_43">43</a></li> + <li>leadership, <a href="#Page_128">128</a>, <a href="#Page_133">133</a> <a href="#Page_159">159</a>, <a href="#Page_167">167</a> <a href="#Page_357">357</a></li> + <li>literary interest, <a href="#Page_382">382</a></li> + <li>maturity, early, <a href="#Page_31">31</a></li> + <li>partisanship, <a href="#Page_140">140</a>, <a href="#Page_147">147</a> <a href="#Page_167">167</a></li> + <li>personal appearance, <a href="#Page_385">385</a>, <a href="#Page_386">386</a> <a href="#Page_389">389</a></li> + <li>political shrewdness, <a href="#Page_76">76</a>, <a href="#Page_95">95</a> <a href="#Page_128">128</a>, <a href="#Page_357">357</a></li> + <li>social habits, <a href="#Page_44">44</a>, <a href="#Page_348">348</a>, <a href="#Page_363">363</a>, <a href="#Page_367">367</a>, <a href="#Page_368">368</a></li> + <li>temper, evenness of, <a href="#Page_65">65</a>, <a href="#Page_152">152</a>, <a href="#Page_154">154</a>, <a href="#Page_303">303</a>, <a href="#Page_324">324</a></li> + <li>thoroughness, <a href="#Page_182">182</a>, <a href="#Page_381">381</a></li> + </ul></li> +<li><i>Political Opinions.</i> + <ul class="IX"> + <li>Alien Bill, <a href="#Page_152">152</a>, <a href="#Page_158">158</a></li> + <li>appointments to office, <a href="#Page_281">281</a>, <a href="#Page_282">282</a>, <a href="#Page_286">286</a>, <a href="#Page_359">359</a></li> + <li>army, <a href="#Page_108">108</a>, <a href="#Page_123">123</a>, <a href="#Page_129">129</a>, <a href="#Page_180">180</a>, <a href="#Page_303">303</a></li> + <li>Bank of United States, <a href="#Page_231">231</a>, <a href="#Page_252">252</a>-<a href="#Page_256">256</a>, <a href="#Page_262">262</a>, <a href="#Page_266">266</a>, <a href="#Page_296">296</a></li> + <li>banking, <a href="#Page_256">256</a>, <a href="#Page_268">268</a>, <a href="#Page_273">273</a>, <a href="#Page_277">277</a></li> + <li>cabinet, <a href="#Page_188">188</a>, <a href="#Page_222">222</a>, <a href="#Page_245">245</a>, <a href="#Page_283">283</a></li> + <li>coinage, <a href="#Page_140">140</a>, <a href="#Page_268">268</a></li> + <li>Congress, powers of, <a href="#Page_109">109</a>, <a href="#Page_110">110</a>, <a href="#Page_112">112</a>, <a href="#Page_143">143</a>, <a href="#Page_144">144</a>, <a href="#Page_153">153</a>, <a href="#Page_161">161</a></li> + <li>constitution of Pennsylvania, <a href="#Page_41">41</a>, <a href="#Page_42">42</a></li> + <li>debt, public, <a href="#Page_45">45</a>, <a href="#Page_125">125</a>, <a href="#Page_126">126</a>, <a href="#Page_191">191</a>, <a href="#Page_203">203</a>, <a href="#Page_205">205</a>, <a href="#Page_208">208</a>, <a href="#Page_222">222</a>, <a href="#Page_269">269</a></li> + <li>democracy, <a href="#Page_6">6</a>, <a href="#Page_8">8</a>, <a href="#Page_10">10</a>, <a href="#Page_33">33</a>, <a href="#Page_34">34</a>, <a href="#Page_42">42</a>, <a href="#Page_48">48</a>, <a href="#Page_55">55</a>, <a href="#Page_126">126</a>, <a href="#Page_389">389</a></li> + <li>education, <a href="#Page_45">45</a>, <a href="#Page_291">291</a>, <a href="#Page_368">368</a>-<a href="#Page_370">370</a></li> + <li>election of 1800, <a href="#Page_164">164</a>-<a href="#Page_166">166</a></li> + <li>embargo, <a href="#Page_201">201</a>, <a href="#Page_206">206</a>, <a href="#Page_230">230</a>, <a href="#Page_291">291</a></li> + <li>England, diplomacy of, <a href="#Page_304">304</a>, <a href="#Page_344">344</a></li> + <li>England, policy toward, <a href="#Page_228">228</a>, <a href="#Page_292">292</a>, <a href="#Page_310">310</a>, <a href="#Page_327">327</a>, <a href="#Page_337">337</a>, <a href="#Page_343">343</a>-<a href="#Page_347">347</a></li> + <li>ethnology, <a href="#Page_373">373</a>-<a href="#Page_381">381</a></li> + <li>excise, <a href="#Page_53">53</a>, <a href="#Page_80">80</a></li> + <li>executive, <a href="#Page_144">144</a>-<a href="#Page_146">146</a>, <a href="#Page_359">359</a></li> + <li>Federalist party, <a href="#Page_119">119</a>, <a href="#Page_129">129</a>, <a href="#Page_139">139</a>, <a href="#Page_140">140</a>, <a href="#Page_164">164</a>, <a href="#Page_179">179</a></li> + <li>financial measures of Hamilton, <a href="#Page_184">184</a>, <a href="#Page_185">185</a></li> + <li>foreign correspondence bill, <a href="#Page_155">155</a></li> + <li>foreign ministers, <a href="#Page_142">142</a>, <a href="#Page_143">143</a>, <a href="#Page_145">145</a>, <a href="#Page_147">147</a></li> + <li>France, diplomacy of, <a href="#Page_304">304</a>, <a href="#Page_344">344</a></li> + <li>France, policy toward, <a href="#Page_134">134</a>, <a href="#Page_135">135</a>, <a href="#Page_148">148</a>, <a href="#Page_149">149</a>, <a href="#Page_157">157</a>, <a href="#Page_159">159</a>, <a href="#Page_167">167</a>, <a href="#Page_310">310</a>, <a href="#Page_332">332</a>, <a href="#Page_333">333</a>, <a href="#Page_338">338</a>, <a href="#Page_340">340</a></li> + <li>free trade, <a href="#Page_240">240</a>-<a href="#Page_243">243</a></li> + <li>French Revolution, <a href="#Page_56">56</a>, <a href="#Page_76">76</a>, <a href="#Page_139">139</a>, <a href="#Page_328">328</a></li> + <li>gunboat scheme, <a href="#Page_289">289</a></li> + <li>impeachment, <a href="#Page_138">138</a></li> + <li>Indians, <a href="#Page_108">108</a>, <a href="#Page_122">122</a>, <a href="#Page_320">320</a>, <a href="#Page_323">323</a>, <a href="#Page_373">373</a>-<a href="#Page_381">381</a></li> + <li>internal improvements, <a href="#Page_45">45</a>, <a href="#Page_224">224</a>, <a href="#Page_290">290</a></li> + <li>Jacksonian democracy, <a href="#Page_359">359</a></li> + <li>Jay treaty, <a href="#Page_119">119</a>, <a href="#Page_136">136</a></li> + <li>manifest destiny, <a href="#Page_352">352</a></li> + <li>Mexican war, <a href="#Page_352">352</a></li> + <li>military matters, <a href="#Page_137">137</a>, <a href="#Page_289">289</a></li> + <li>money, relation to wealth, <a href="#Page_260">260</a></li> + <li>navy, <a href="#Page_123">123</a>, <a href="#Page_124">124</a>, <a href="#Page_130">130</a>, <a href="#Page_137">137</a>, <a href="#Page_186">186</a>, <a href="#Page_303">303</a></li> + <li>northeastern boundary, <a href="#Page_347">347</a>-<a href="#Page_349">349</a></li> + <li>northwest boundary, <a href="#Page_343">343</a>, <a href="#Page_347">347</a>, <a href="#Page_351">351</a></li> + <li>panic of 1815, <a href="#Page_262">262</a></li> + <li>paper money, <a href="#Page_46">46</a>, <a href="#Page_207">207</a>, <a href="#Page_264">264</a>, <a href="#Page_267">267</a>, <a href="#Page_268">268</a></li> + <li>party management, <a href="#Page_38">38</a>, <a href="#Page_41">41</a>, <a href="#Page_95">95</a>, <a href="#Page_128">128</a>, <a href="#Page_164">164</a>, <a href="#Page_359">359</a></li> + <li>peace, <a href="#Page_149">149</a>, <a href="#Page_150">150</a>, <a href="#Page_167">167</a>, <a href="#Page_284">284</a></li> + <li>public lands, <a href="#Page_46">46</a>, <a href="#Page_122">122</a>, <a href="#Page_238">238</a>, <a href="#Page_239">239</a></li> + <li>Republican party, <a href="#Page_355">355</a>, <a href="#Page_359">359</a></li> + <li>revenue, internal, <a href="#Page_221">221</a>, <a href="#Page_233">233</a>, <a href="#Page_234">234</a></li> + <li>revenue, sources of, <a href="#Page_187">187</a>, <a href="#Page_223">223</a>, <a href="#Page_232">232</a></li> + <li>Sedition Act, <a href="#Page_152">152</a>, <a href="#Page_158">158</a>, <a href="#Page_159">159</a></li> + <li>slavery, <a href="#Page_47">47</a>, <a href="#Page_140">140</a></li> + <li>Spain, policy toward, <a href="#Page_336">336</a>, <a href="#Page_337">337</a></li> + <li>suffrage, <a href="#Page_42">42</a></li> + <li>surplus, use of, <a href="#Page_206">206</a>, <a href="#Page_216">216</a></li> + <li>taxation, <a href="#Page_123">123</a>, <a href="#Page_199">199</a>, <a href="#Page_200">200</a></li> + <li>Texas annexation, <a href="#Page_351">351</a></li> + <li>territory, constitutional power to acquire, <a href="#Page_285">285</a></li> + <li>Treasury, administration of, <a href="#Page_64">64</a>, <a href="#Page_106">106</a>-<a href="#Page_108">108</a>, <a href="#Page_125">125</a>, <a href="#Page_130">130</a>, <a href="#Page_154">154</a>, <a href="#Page_189">189</a>, <a href="#Page_205">205</a>, <a href="#Page_208">208</a>, <a href="#Page_217">217</a>, <a href="#Page_245">245</a>-<a href="#Page_247">247</a></li> + <li>treaty of Ghent, <a href="#Page_317">317</a>, <a href="#Page_318">318</a>, <a href="#Page_319">319</a>, <a href="#Page_323">323</a></li> + <li>treaty power, <a href="#Page_114">114</a></li> + <li>United States, history of, <a href="#Page_382">382</a>, <a href="#Page_383">383</a></li> + <li>war of 1812, <a href="#Page_320">320</a></li> + <li>war finances, <a href="#Page_190">190</a>, <a href="#Page_200">200</a>, <a href="#Page_203">203</a>, <a href="#Page_207">207</a>, <a href="#Page_208">208</a>, <a href="#Page_222">222</a>, <a href="#Page_224">224</a>, <a href="#Page_229">229</a>, <a href="#Page_232">232</a>, <a href="#Page_234">234</a>, <a href="#Page_298">298</a></li> + <li>Whiskey Insurrection, <a href="#Page_94">94</a></li> + </ul></li> +<li>Gallatin family, <a href="#Page_2">2</a>; + <ul class="IX"> + <li>prominence in Geneva, <a href="#Page_2">2</a></li> + <li>military reputation, <a href="#Page_2">2</a></li> + <li>interest in all its members, <a href="#Page_8">8</a></li> + <li>on oligarchic side in Genevese politics, <a href="#Page_10">10</a></li> + <li>alarmed at report of Gallatin's death, <a href="#Page_27">27</a></li> + <li>visited by Gallatin in 1814, <a href="#Page_326">326</a></li> + <li>claims Roman descent, 386 n.</li> + </ul></li> +<li>Gallatin, Frances, marries B. K. Stevens, <a href="#Page_371">371</a>; + <ul class="IX"> + <li>Lafayette's letter of congratulation to, <a href="#Page_371">371</a></li> + <li>considered “a beauty” at French court, <a href="#Page_372">372</a></li> + </ul></li> +<li>Gallatin, James, accompanies his father to Europe, <a href="#Page_301">301</a></li> +<li>Gallatin, Jean, father of Albert Gallatin, <a href="#Page_2">2</a>; + <ul class="IX"> + <li>his death, <a href="#Page_2">2</a></li> + </ul></li> +<li>Gallatin, P. M., guardian of Albert, <a href="#Page_10">10</a>; + <ul class="IX"> + <li>his kindness on Gallatin's departure for America, <a href="#Page_11">11</a></li> + <li>promises to aid him, and forwards letters of recommendation, <a href="#Page_11">11</a></li> + </ul></li> +<li>Gallatin, Susanne Vaudenet, grandmother of Gallatin, her character, <a href="#Page_7">7</a>; + <ul class="IX"> + <li>friend of Frederick of Hesse-Cassel and of Voltaire, <a href="#Page_7">7</a></li> + <li>controlling spirit of family, <a href="#Page_8">8</a></li> + <li>quarrels with Albert over his refusal of a Hessian commission, <a href="#Page_8">8</a></li> + </ul></li> +<li>Gambier, Lord, on English peace commission, <a href="#Page_316">316</a></li> +<li>Gardner, John L., at free-trade convention, <a href="#Page_241">241</a></li> +<li>Genet, Edmond C., effect of his intemperance on parties, <a href="#Page_57">57</a>; + <ul class="IX"> + <li>marries daughter of George Clinton, <a href="#Page_102">102</a></li> + <li>aids Democratic societies, <a href="#Page_102">102</a></li> + <li>condemned by Federalists, <a href="#Page_134">134</a></li> + </ul></li> +<li>Geneva, place of Gallatin family in, <a href="#Page_2">2</a>; + <ul class="IX"> + <li>education in, <a href="#Page_2">2</a>, <a href="#Page_3">3</a></li> + <li>religious spirit of, <a href="#Page_3">3</a></li> + <li>a resort of foreigners, <a href="#Page_4">4</a></li> + <li>political situation in, <a href="#Page_6">6</a>, <a href="#Page_7">7</a>, <a href="#Page_10">10</a></li> + <li>parties in, <a href="#Page_10">10</a></li> + <li>revolutions in, <a href="#Page_20">20</a>, <a href="#Page_361">361</a></li> + <li>government of, <a href="#Page_33">33</a></li> + <li>visited by Gallatin, <a href="#Page_325">325</a>, <a href="#Page_326">326</a></li> + <li>colonization from, planned by Gallatin, <a href="#Page_361">361</a></li> + </ul></li> +<li>Geneva Academy, studies of Gallati in, <a href="#Page_2">2</a>, <a href="#Page_3">3</a>; + <ul class="IX"> + <li>his friends at, <a href="#Page_4">4</a>, <a href="#Page_5">5</a></li> + </ul></li> +<li>Germans, in Pennsylvania, oppose improvement of education, <a href="#Page_45">45</a></li> +<li>Gerry, Elbridge, on French mission, <a href="#Page_139">139</a>; + <ul class="IX"> + <li>remains to negotiate loan, <a href="#Page_152">152</a></li> + </ul></li> +<li>Gibbs, ----, member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Gilbert, Ezekiel, on Committee on Finance, <a href="#Page_107">107</a></li> +<li>Giles, William B., Republican leader in debate, his character, <a href="#Page_100">100</a>, <a href="#Page_133">133</a>; + <ul class="IX"> + <li>bitterly opposes address to Washington, <a href="#Page_128">128</a>, <a href="#Page_129">129</a></li> + <li>in debate on relations with France, <a href="#Page_135">135</a></li> + <li>loses leadership to Gallatin, <a href="#Page_140">140</a></li> + </ul></li> +<li>Gilman, Nicholas, on Committee on Finance, <a href="#Page_106">106</a></li> +<li>Girard, Stephen, assists Gallatin to float loan, <a href="#Page_213">213</a>, <a href="#Page_214">214</a>; + <ul class="IX"> + <li>his reasons, <a href="#Page_259">259</a></li> + </ul></li> +<li>Goderich, Lord, renews convention of 1815 with Gallatin, <a href="#Page_347">347</a></li> +<li>Goldberg, ----, Dutch commissioner to make commercial treaty, <a href="#Page_334">334</a></li> +<li>Goodhue, Jonathan, at free-trade convention of 1831, <a href="#Page_241">241</a></li> +<li>Goodhue, ----, member of “The Club,” <a href="#Page_367">367</a></li> +<li>Goodrich, Chauncy, in Congress, <a href="#Page_99">99</a>; + <ul class="IX"> + <li>in debate on foreign relations, <a href="#Page_143">143</a></li> + <li>on resolution to punish foreign correspondence, <a href="#Page_156">156</a></li> + </ul></li> +<li>Goulburn, Henry, on English peace commission, <a href="#Page_316">316</a>; + <ul class="IX"> + <li>informed of American request for instructions, <a href="#Page_318">318</a></li> + <li>told by Castlereagh and Liverpool to moderate his demands, <a href="#Page_319">319</a></li> + <li>protests against acceptance of Indian article, <a href="#Page_321">321</a></li> + </ul></li> +<li>Grenville, Lord, sends Fauchet letter to Washington, <a href="#Page_103">103</a>; + <ul class="IX"> + <li>connection with Jay treaty, <a href="#Page_117">117</a>, <a href="#Page_350">350</a></li> + <li>his proposition to Pinckney, <a href="#Page_134">134</a></li> + </ul></li> +<li>Griswold, Roger, attacks Gallatin's account of sinking fund, <a href="#Page_65">65</a>; + <ul class="IX"> + <li>leader of Federalists in House, <a href="#Page_98">98</a>, <a href="#Page_133">133</a></li> + <li>replies to Gallatin in debate on treaty power, <a href="#Page_113">113</a></li> + <li>his collision with Lyon, <a href="#Page_141">141</a></li> + <li>on doctrine of checks, <a href="#Page_143">143</a></li> + <li>on bill to punish foreign correspondence, <a href="#Page_156">156</a></li> + <li>on Senate bill to require annual financial reports, <a href="#Page_161">161</a></li> + </ul></li> +<li>Gunboats, Jefferson's scheme for, <a href="#Page_288">288</a>; + <ul class="IX"> + <li>origin of his idea, <a href="#Page_288">288</a></li> + <li>opposed by Gallatin, <a href="#Page_289">289</a></li> + </ul></li> +<li>Gurney, ----, in Pennsylvania legislature, <a href="#Page_183">183</a></li> +</ul> + +<ul class="IX"> +<li>Hale, ----, introduction to his work on Indians written by Gallatin, <a href="#Page_380">380</a></li> +<li>Hamilton, Alexander, his career compared to that of Gallatin, <a href="#Page_28">28</a>, <a href="#Page_32">32</a>; + <ul class="IX"> + <li>amends excise law, <a href="#Page_52">52</a></li> + <li>demands punishment of Pittsburgh leaders of opposition, <a href="#Page_53">53</a>, <a href="#Page_54">54</a></li> + <li>drafts proclamation against them, <a href="#Page_54">54</a></li> + <li>attacked by Gallatin in Senate, <a href="#Page_64">64</a></li> + <li>deprecates demand for minute information, <a href="#Page_64">64</a>, <a href="#Page_65">65</a></li> + <li>submits plan for crushing insurgents, <a href="#Page_76">76</a>, <a href="#Page_77">77</a></li> + <li>impatient at delay, writes as “Tully” advocating punishment, <a href="#Page_87">87</a></li> + <li>accompanies army to Pittsburgh, <a href="#Page_88">88</a></li> + <li>investigates insurrection, <a href="#Page_90">90</a></li> + <li>fails to find indictment against Gallatin, <a href="#Page_90">90</a></li> + <li>dissuades troops from violence, <a href="#Page_92">92</a></li> + <li>resigns from Treasury, <a href="#Page_97">97</a></li> + <li>continues to lead party, <a href="#Page_99">99</a></li> + <li>stoned in defending Jay treaty, <a href="#Page_103">103</a></li> + <li>letters of Wolcott to, complaining of Republican opposition, <a href="#Page_126">126</a>, <a href="#Page_154">154</a></li> + <li>attends Congress as general, <a href="#Page_155">155</a></li> + <li>his influence on government, <a href="#Page_168">168</a>, <a href="#Page_169">169</a></li> + <li>review of his career in the Treasury, <a href="#Page_174">174</a>-<a href="#Page_176">176</a></li> + <li>his place in history, <a href="#Page_176">176</a></li> + <li>his enmity to Gallatin, <a href="#Page_179">179</a></li> + <li>attacks of Gallatin upon his system, <a href="#Page_184">184</a>, <a href="#Page_185">185</a></li> + <li>his revenue system maintained by Gallatin, <a href="#Page_218">218</a>, <a href="#Page_234">234</a></li> + <li>and reënacted by Democrats in 1813, <a href="#Page_235">235</a></li> + <li>his report on public lands, <a href="#Page_237">237</a>, <a href="#Page_238">238</a></li> + <li>his organization of Treasury Department, <a href="#Page_243">243</a></li> + <li>his financial reports, <a href="#Page_245">245</a></li> + <li>on Bank of North America, <a href="#Page_249">249</a></li> + <li>his report on national bank, <a href="#Page_250">250</a>, <a href="#Page_251">251</a></li> + </ul></li> +<li>Hamilton, J. C., accuses Gallatin of cowardice in Whiskey Rebellion, <a href="#Page_84">84</a></li> +<li>Harper, Robert Goodloe, leader of Federalists in House, <a href="#Page_98">98</a>, <a href="#Page_133">133</a>; + <ul class="IX"> + <li>denounces call for Jay treaty papers as unconstitutional, <a href="#Page_111">111</a>, <a href="#Page_112">112</a></li> + <li>closes argument on Federalist side, <a href="#Page_114">114</a></li> + <li>recognizes Gallatin as leader of Republicans, <a href="#Page_115">115</a></li> + <li>in debate on relations with France, <a href="#Page_134">134</a>, <a href="#Page_135">135</a></li> + <li>called a “bungler” by Gallatin, <a href="#Page_140">140</a></li> + <li>moves appropriation for foreign intercourse, <a href="#Page_141">141</a></li> + <li>his share in debate, <a href="#Page_142">142</a>, <a href="#Page_146">146</a></li> + <li>introduces bill to suspend intercourse with France, <a href="#Page_151">151</a></li> + <li>altercation with Gallatin over Alien Bill, <a href="#Page_152">152</a></li> + <li>on resolution to furnish foreign correspondence, <a href="#Page_156">156</a></li> + <li>on Senate bill to require annual financial reports, <a href="#Page_161">161</a></li> + </ul></li> +<li>Harvard College, gives Gallatin permission to teach French, <a href="#Page_17">17</a>; + <ul class="IX"> + <li>his connection with, <a href="#Page_18">18</a></li> + <li>gives Gallatin certificate, <a href="#Page_18">18</a></li> + </ul></li> +<li>Hassler, Ferdinand Rudolph, superintendent of coast survey, <a href="#Page_290">290</a></li> +<li>Hawks, ----, member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Henry, Patrick, recommends Gallatin to county surveyor and commissions him to locate lands, <a href="#Page_24">24</a>; + <ul class="IX"> + <li>advises Gallatin to go West, predicts success, <a href="#Page_29">29</a></li> + </ul></li> +<li>Henry, Prof. Joseph, letter of Gallatin to, on Squier and Davis's “Ancient Monuments,” <a href="#Page_379">379</a></li> +<li>Hillhouse, James, Federalist in Congress, <a href="#Page_99">99</a>; + <ul class="IX"> + <li>on committee on finance, <a href="#Page_107">107</a></li> + </ul></li> +<li>Holland, vain attempt to sign commercial treaty with, <a href="#Page_334">334</a>; + <ul class="IX"> + <li>arbitrates northeast boundary, <a href="#Page_347">347</a>, <a href="#Page_349">349</a></li> + <li>its decision rejected, <a href="#Page_349">349</a></li> + </ul></li> +<li>House of Representatives, leaders of, in 1795, <a href="#Page_98">98</a>-<a href="#Page_100">100</a>; + <ul class="IX"> + <li>debate in, over conduct of Washington's administration, <a href="#Page_104">104</a>-<a href="#Page_106">106</a></li> + <li>appoints Committee on Finance, <a href="#Page_106">106</a>, <a href="#Page_107">107</a></li> + <li>debate in, on principle of appropriations, <a href="#Page_108">108</a>, <a href="#Page_109">109</a></li> + <li>motion of Livingston to call for papers in Jay treaty brings on debate on treaty power, <a href="#Page_109">109</a>-<a href="#Page_114">114</a></li> + <li>asserts right to withhold appropriations, <a href="#Page_115">115</a></li> + <li>considers foreign treaties separately, <a href="#Page_118">118</a></li> + <li>debates Jay treaty, <a href="#Page_118">118</a>-<a href="#Page_121">121</a></li> + <li>votes to carry treaty into effect, <a href="#Page_121">121</a></li> + <li>but condemns it, <a href="#Page_121">121</a></li> + <li>refuses to adjourn on Washington's birthday, <a href="#Page_126">126</a></li> + <li>adopts address complimentary to Washington, <a href="#Page_129">129</a></li> + <li>new members in fifth Congress, <a href="#Page_132">132</a></li> + <li>debates President's message on relations with France, <a href="#Page_133">133</a>-<a href="#Page_136">136</a></li> + <li>votes to support administration, <a href="#Page_136">136</a></li> + <li>considers measures of defense, <a href="#Page_137">137</a></li> + <li>impeaches Blount, <a href="#Page_138">138</a></li> + <li>entertained by Adams, <a href="#Page_140">140</a></li> + <li>encounter in, between Lyon and Griswold, <a href="#Page_141">141</a></li> + <li>debate in, on foreign missions, <a href="#Page_141">141</a>, <a href="#Page_142">142</a></li> + <li>on relation of executive to Congress, <a href="#Page_142">142</a>-<a href="#Page_147">147</a></li> + <li>rejects amendment to abolish foreign missions, <a href="#Page_147">147</a></li> + <li>debates war with France, <a href="#Page_148">148</a></li> + <li>requests President to furnish correspondence of envoys to France, <a href="#Page_148">148</a></li> + <li>receives X Y Z dispatches, <a href="#Page_149">149</a></li> + <li>altercation in, between Gallatin and Allen, <a href="#Page_150">150</a></li> + <li>passes Alien Bill, <a href="#Page_152">152</a></li> + <li>message of Adams to, on resumption of diplomatic intercourse</li> + <li>with France, <a href="#Page_152">152</a></li> + <li>passes bill abrogating treaty with France, <a href="#Page_154">154</a></li> + <li>debates and passes bill to punish foreign correspondence, <a href="#Page_155">155</a>, <a href="#Page_156">156</a></li> + <li>debates and passes bills to favor French West Indies, and punish Spanish and Dutch ports, <a href="#Page_156">156</a>, <a href="#Page_157">157</a></li> + <li>refuses to repeal Sedition Act, <a href="#Page_157">157</a></li> + <li>new members in sixth Congress, <a href="#Page_158">158</a></li> + <li>replies to President's address, <a href="#Page_158">158</a></li> + <li>refuses to repeal Sedition Law, <a href="#Page_159">159</a></li> + <li>passes bill to suspend intercourse with France, <a href="#Page_159">159</a>, <a href="#Page_160">160</a></li> + <li>votes a medal to Truxton, <a href="#Page_160">160</a></li> + <li>refuses to amend Foreign Intercourse Act, <a href="#Page_160">160</a>, <a href="#Page_161">161</a></li> + <li>debates and passes Senate bill to require annual Treasury reports, <a href="#Page_161">161</a></li> + <li>refuses to continue non-intercourse, <a href="#Page_162">162</a></li> + <li>again rejects bill to amend Sedition Act, <a href="#Page_162">162</a></li> + <li>part played by Gallatin in, <a href="#Page_167">167</a>, <a href="#Page_168">168</a></li> + <li>investigates Wolcott's management of Treasury, <a href="#Page_177">177</a></li> + </ul></li> +<li>Howell, Richard, leads New Jersey militia against Whiskey Rebellion, <a href="#Page_88">88</a></li> +<li>Humboldt, Baron Alexander von, aided in study of precious metals in America by Gallatin, <a href="#Page_278">278</a>, <a href="#Page_374">374</a>, <a href="#Page_381">381</a>; + <ul class="IX"> + <li>brings Lafayette's letter to Gallatin, <a href="#Page_315">315</a></li> + <li>meets Gallatin in Washington, <a href="#Page_315">315</a></li> + <li>speaks of Gallatin's “glory,” <a href="#Page_325">325</a></li> + <li>letter to Gallatin, <a href="#Page_381">381</a></li> + </ul></li> +<li>Husbands, Herman, on committee on resolutions of Parkinson's Ferry meeting, <a href="#Page_80">80</a></li> +<li>Huskisson, William, on impressment, <a href="#Page_347">347</a></li> +</ul> + +<ul class="IX"> +<li>Impressment, Gallatin's opinion of, <a href="#Page_122">122</a>; + <ul class="IX"> + <li>its abandonment by England insisted on by Monroe, <a href="#Page_305">305</a></li> + <li>refused consideration by England, <a href="#Page_322">322</a>, <a href="#Page_327">327</a>, <a href="#Page_335">335</a>, <a href="#Page_347">347</a></li> + </ul></li> +<li>Indians, relations of Gallatin with, at Machias, <a href="#Page_15">15</a>; + <ul class="IX"> + <li>trading posts with, opposed by Gallatin, <a href="#Page_108">108</a></li> + <li>Wayne's treaty with, <a href="#Page_117">117</a>, <a href="#Page_118">118</a></li> + <li>danger of war with, in 1795, <a href="#Page_120">120</a>, <a href="#Page_121">121</a></li> + <li>Gallatin's opinion of, <a href="#Page_122">122</a></li> + <li>influence of Chôteau over, <a href="#Page_287">287</a></li> + <li>fur trade of Astor with, <a href="#Page_288">288</a></li> + <li>proposals of England concerning, in treaty of Ghent, <a href="#Page_317">317</a>, <a href="#Page_319">319</a>, <a href="#Page_321">321</a></li> + <li>studies of Gallatin concerning, <a href="#Page_373">373</a>-<a href="#Page_378">378</a></li> + <li>the Canadian Indians, <a href="#Page_373">373</a></li> + <li>tribes of, classified by Jefferson, <a href="#Page_374">374</a></li> + <li>“Synopsis of Indian Tribes” by Gallatin, <a href="#Page_374">374</a>;</li> + <li>vocabularies collected by Gallatin, <a href="#Page_375">375</a>, <a href="#Page_376">376</a></li> + <li>studies of Du Ponceau concerning, <a href="#Page_377">377</a></li> + <li>republication of Gallatin's “Synopsis,” <a href="#Page_377">377</a></li> + <li>his essay on Indian civilization, <a href="#Page_380">380</a></li> + <li>his introduction to Hale's work on, <a href="#Page_380">380</a></li> + </ul></li> +<li>Ingham, Samuel D., report of Gallatin to, on gold and silver, <a href="#Page_268">268</a></li> +<li>Internal improvements, Gallatin's scheme for, <a href="#Page_224">224</a>, <a href="#Page_290">290</a>; + <ul class="IX"> + <li>urged by Jefferson, <a href="#Page_226">226</a>, <a href="#Page_227">227</a>, <a href="#Page_290">290</a></li> + <li>inconsistency of Jefferson, <a href="#Page_227">227</a></li> + </ul></li> +<li>Irish, petition against Sedition Act, <a href="#Page_157">157</a></li> +<li>Irving, Washington, describes Mrs. Gallatin's manners and appearance, <a href="#Page_363">363</a>, <a href="#Page_364">364</a>; + <ul class="IX"> + <li>describes Gallatin in old age, <a href="#Page_368">368</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Jackson, Andrew, votes against complimentary address to Washington, <a href="#Page_129">129</a>; + <ul class="IX"> + <li>his appearance described by Gallatin, <a href="#Page_129">129</a> n.;</li> + <li>orders removal of deposits, <a href="#Page_270">270</a></li> + <li>Gallatin's opinion of, <a href="#Page_270">270</a>, <a href="#Page_355">355</a></li> + <li>occupies Pensacola, <a href="#Page_336">336</a></li> + <li>refuses to appoint Gallatin to French mission, <a href="#Page_349">349</a></li> + <li>candidate for president in 1824, <a href="#Page_358">358</a></li> + <li>defeated for president by Adams, <a href="#Page_358">358</a></li> + <li>his idea of party, <a href="#Page_359">359</a></li> + <li>Gallatin's opinion of, <a href="#Page_359">359</a></li> + <li>character of his presidency, <a href="#Page_360">360</a></li> + </ul></li> +<li>Jackson, F. J., his mission to United States, <a href="#Page_295">295</a></li> +<li>Jay, John, asked by Jefferson for information concerning Gallatin, <a href="#Page_27">27</a>; + <ul class="IX"> + <li>drafts letter for New York Convention calling for a new convention, <a href="#Page_37">37</a> n.;</li> + <li>burnt in effigy after his treaty, <a href="#Page_103">103</a></li> + <li>his purpose in making treaty, <a href="#Page_117">117</a></li> + <li>said by Sheffield to have duped Grenville, <a href="#Page_117">117</a></li> + <li>his warning remark to Randolph during negotiations, <a href="#Page_118">118</a></li> + <li>attacked by Gallatin, <a href="#Page_119">119</a></li> + </ul></li> +<li>Jay, William, member of “The Club,” <a href="#Page_366">366</a></li> +<li>Jay treaty, ratified, <a href="#Page_102">102</a>; + <ul class="IX"> + <li>made public by Mason, <a href="#Page_103">103</a></li> + <li>popular dissatisfaction with, <a href="#Page_103">103</a>, <a href="#Page_116">116</a></li> + <li>sent to House, <a href="#Page_109">109</a></li> + <li>condemned in England, <a href="#Page_117">117</a></li> + <li>debate over, <a href="#Page_118">118</a>-<a href="#Page_121">121</a></li> + </ul></li> +<li>Jefferson, Thomas, in behalf of Gallatin family writes to Jay for information concerning Albert Gallatin, <a href="#Page_27">27</a>; + <ul class="IX"> + <li>countersigns Washington's proclamation against excise rioters, <a href="#Page_54">54</a></li> + <li>retires from cabinet, <a href="#Page_97">97</a>, <a href="#Page_99">99</a></li> + <li>rupture with Hamilton, <a href="#Page_99">99</a></li> + <li>imbued with French principles, <a href="#Page_102">102</a></li> + <li>ridiculed as a sans-culotte, <a href="#Page_104">104</a></li> + <li>influence complained of by Wolcott, <a href="#Page_127">127</a></li> + <li>tries to moderate bitterness of Republicans, <a href="#Page_128">128</a></li> + <li>Gallatin known to be in his confidence, <a href="#Page_133">133</a></li> + <li>complains of weakness of Congress, <a href="#Page_138">138</a></li> + <li>unable to influence Senate, <a href="#Page_139">139</a></li> + <li>loses taste for French alliance, <a href="#Page_139">139</a></li> + <li>thinks Sedition Bill aimed at Gallatin, <a href="#Page_152">152</a></li> + <li>praises Gallatin's courage, <a href="#Page_158">158</a></li> + <li>receives tie vote with Burr, <a href="#Page_163">163</a></li> + <li>probably makes bargain with Federalists, <a href="#Page_164">164</a></li> + <li>his inexplicable submission to Smith, <a href="#Page_164">164</a></li> + <li>elected, <a href="#Page_167">167</a></li> + <li>in triumvirate with Madison and Gallatin, <a href="#Page_168">168</a></li> + <li>represents social equality, <a href="#Page_169">169</a></li> + <li>his suggestions on coinage, <a href="#Page_172">172</a></li> + <li>urges Gallatin to accept Treasury Department, <a href="#Page_178">178</a>-<a href="#Page_180">180</a></li> + <li>letter to Macon, <a href="#Page_182">182</a></li> + <li>suggestions of Gallatin to, on financial policy, <a href="#Page_186">186</a></li> + <li>not a practical statesman, <a href="#Page_188">188</a></li> + <li>does not consult cabinet as a whole, <a href="#Page_188">188</a></li> + <li>letters of Gallatin to, on finances, <a href="#Page_189">189</a>, <a href="#Page_193">193</a>, <a href="#Page_201">201</a>, <a href="#Page_203">203</a>, <a href="#Page_216">216</a></li> + <li>summons Congress to ratify Louisiana purchase, <a href="#Page_195">195</a></li> + <li>reëlection helped by finances and Louisiana treaty, <a href="#Page_197">197</a>, <a href="#Page_198">198</a>, <a href="#Page_223">223</a></li> + <li>urges Gallatin to retain post until extinction of debt, <a href="#Page_203">203</a></li> + <li>wishes reduction of army and navy, <a href="#Page_220">220</a></li> + <li>advocates application of surplus to internal improvement, <a href="#Page_226">226</a></li> + <li>in so doing abandons his principles, <a href="#Page_227">227</a></li> + <li>detests bank, <a href="#Page_233">233</a>, <a href="#Page_251">251</a>, <a href="#Page_280">280</a></li> + <li>proposes impracticable economies in Treasury Department, <a href="#Page_244">244</a></li> + <li>suggests issue of paper money, <a href="#Page_264">264</a></li> + <li>an abandonment of republican principles, <a href="#Page_266">266</a></li> + <li>introduces new principles of administration into government, <a href="#Page_279">279</a></li> + <li>opposes Gallatin's civil service circular, <a href="#Page_281">281</a></li> + <li>proposes to fill one half of offices with partisans, <a href="#Page_282">282</a></li> + <li>submits draft of annual message to cabinet, <a href="#Page_283">283</a></li> + <li>objects to appointing a woman to office, <a href="#Page_283">283</a></li> + <li>lack of system in his cabinet, <a href="#Page_284">284</a></li> + <li>does not consult Gallatin on military matters, <a href="#Page_284">284</a></li> + <li>agrees with Gallatin's view on acquisition of territory, <a href="#Page_285">285</a></li> + <li>advised by Gallatin concerning Louisiana treaty, <a href="#Page_285">285</a></li> + <li>unfortunate in choice of political methods, <a href="#Page_286">286</a></li> + <li>friendly with Duane, <a href="#Page_286">286</a></li> + <li>promises to protect Astor, <a href="#Page_288">288</a></li> + <li>his gunboat scheme, <a href="#Page_288">288</a>, <a href="#Page_289">289</a></li> + <li>origin of his views on gunboats, <a href="#Page_288">288</a></li> + <li>his plan of internal improvements, <a href="#Page_290">290</a></li> + <li>recommends national university, <a href="#Page_291">291</a></li> + <li>wishes amendments to Constitution, <a href="#Page_291">291</a></li> + <li>advised by Gallatin not to rely on “general welfare” clause of Constitution, <a href="#Page_291">291</a></li> + <li>shirks responsibility of decision with regard to English policy, <a href="#Page_291">291</a>, <a href="#Page_292">292</a></li> + <li>urged by Gallatin to enforce non-intercourse, <a href="#Page_293">293</a></li> + <li>calls Gallatin ablest man in administration except Madison, <a href="#Page_298">298</a></li> + <li>regard of Gallatin for, <a href="#Page_300">300</a></li> + <li>his love for Gallatin, <a href="#Page_300">300</a></li> + <li>letters of Gallatin to, on reputation of United States in Europe, <a href="#Page_327">327</a></li> + <li>on France, <a href="#Page_327">327</a>, <a href="#Page_328">328</a></li> + <li>letter of Gallatin to, on difficulty of withdrawal from public service, <a href="#Page_329">329</a></li> + <li>rejoices in Gallatin's acceptance of French mission, <a href="#Page_331">331</a></li> + <li>his opinion of Louis XVIII., <a href="#Page_331">331</a></li> + <li>relations with de Tracy, <a href="#Page_331">331</a></li> + <li>supports Crawford for presidency, <a href="#Page_356">356</a></li> + <li>favors state rights, <a href="#Page_356">356</a></li> + <li>does not appreciate decay of his party, <a href="#Page_358">358</a></li> + <li>on non-sectarian education, <a href="#Page_369">369</a></li> + <li>his remarks on Indians in “Notes on Virginia,” <a href="#Page_374"></a></li> + <li>on Washington's strong passions, <a href="#Page_383">383</a> n.</li> + </ul></li> +<li>Johannot, ----, educated at Geneva, <a href="#Page_4">4</a>, <a href="#Page_17">17</a></li> +<li>Johnston, ----, member of “The Club,” <a href="#Page_366">366</a></li> +<li>Jones, William, secretary of navy, <a href="#Page_312">312</a></li> +</ul> + +<ul class="IX"> +<li>Kent, Chancellor James, member of “The Club,” <a href="#Page_366">366</a></li> +<li>King, Charles, member of “The Club,” <a href="#Page_367">367</a></li> +<li>King, Rufus, resigns mission to England, <a href="#Page_342">342</a>; + <ul class="IX"> + <li>tone of his correspondence, <a href="#Page_345">345</a></li> + </ul></li> +<li>Kinloch, Francis, educated at Geneva, <a href="#Page_4">4</a>; + <ul class="IX"> + <li>letter to, given by Mlle. Pictet to Gallatin, <a href="#Page_11">11</a></li> + </ul></li> +<li>Kirkpatrick, Major, defends United States marshal in Whiskey Insurrection, <a href="#Page_68">68</a>; + <ul class="IX"> + <li>his farm burnt by rioters, <a href="#Page_73">73</a></li> + </ul></li> +<li>Kittera, Thomas, moves hostile amendment to pro-French resolution, <a href="#Page_135">135</a></li> +<li>Knox, Henry, resigns from War Department, <a href="#Page_97">97</a></li> +<li>Kosciusko, his nephew helped by Gallatin, <a href="#Page_372">372</a></li> +<li>Kramer brothers, in business with Gallatin, <a href="#Page_60">60</a></li> +</ul> + +<ul class="IX"> +<li>Lands, public, in Pennsylvania, <a href="#Page_46">46</a>; + <ul class="IX"> + <li>suggestions of Gallatin as to improved methods of sale, <a href="#Page_122">122</a>, <a href="#Page_123">123</a></li> + <li>how acquired, <a href="#Page_237">237</a></li> + <li>sales under Hamilton and successors, <a href="#Page_238">238</a></li> + <li>organization of sales by Gallatin, <a href="#Page_238">238</a>, <a href="#Page_239">239</a>, <a href="#Page_287">287</a></li> + </ul></li> +<li>Land speculation, in Virginia, <a href="#Page_20">20</a>, <a href="#Page_21">21</a>, <a href="#Page_24">24</a>, <a href="#Page_361">361</a>; + <ul class="IX"> + <li>in Ohio, <a href="#Page_362">362</a></li> + </ul></li> +<li>Lafayette, Marquis de, his motives for aiding colonies, <a href="#Page_9">9</a>; + <ul class="IX"> + <li>his imprisonment, <a href="#Page_102">102</a></li> + <li>saved by gunboats in 1781, <a href="#Page_288">288</a>, <a href="#Page_289">289</a>, <a href="#Page_371">371</a></li> + <li>urged by Gallatin to help mediate between England and United States, <a href="#Page_313">313</a></li> + <li>urges emperor of Russia to exert personal influence with England, <a href="#Page_315">315</a></li> + <li>sends letter to Gallatin, <a href="#Page_315">315</a></li> + <li>letter of Gallatin to, on French government, <a href="#Page_328">328</a></li> + <li>visits Pennsylvania, <a href="#Page_364">364</a></li> + <li>entertained by Lafayette at Friendship Hill, <a href="#Page_365">365</a></li> + <li>his part in Revolution of 1830, <a href="#Page_370">370</a>, <a href="#Page_371">371</a>, <a href="#Page_372">372</a></li> + <li>interested in marriage of Gallatin's daughter, <a href="#Page_371">371</a></li> + <li>letter to Gallatin, <a href="#Page_371">371</a>, <a href="#Page_372">372</a></li> + </ul></li> +<li>La Pérouse, meets Gallatin at Machias, <a href="#Page_16">16</a>; + <ul class="IX"> + <li>later meets him in Boston, <a href="#Page_16">16</a></li> + </ul></li> +<li>Laurens, John, educated at Geneva, <a href="#Page_4">4</a></li> +<li>La Vengeance, captured by Constellation, <a href="#Page_160">160</a></li> +<li>Lawrence, William B., gives anecdote of Washington and Gallatin, <a href="#Page_22">22</a>; + <ul class="IX"> + <li>accompanies Gallatin to England, <a href="#Page_344">344</a></li> + <li>his ability as secretary, <a href="#Page_346">346</a></li> + <li>presides at anniversary meeting of New York Historical Society, <a href="#Page_384">384</a></li> + </ul></li> +<li>Lee, Henry, commands militia against Whiskey Rebellion, <a href="#Page_88">88</a>; + <ul class="IX"> + <li>requires oath of allegiance, <a href="#Page_89">89</a></li> + <li>orders seizure of leaders, <a href="#Page_90">90</a></li> + </ul></li> +<li>Lee, Thomas, founder of Ohio company, <a href="#Page_20">20</a></li> +<li>Legislature of Pennsylvania, calls Constitutional Convention, <a href="#Page_40">40</a>; + <ul class="IX"> + <li>Gallatin's career in, <a href="#Page_45">45</a>-<a href="#Page_47">47</a>, <a href="#Page_55">55</a>, <a href="#Page_60">60</a></li> + <li>rejects bill to improve education, <a href="#Page_45">45</a></li> + <li>discharges paper money and other debt, <a href="#Page_46">46</a></li> + <li>elects Gallatin senator, <a href="#Page_47">47</a>, <a href="#Page_58">58</a></li> + <li>adopts resolutions condemning excise, <a href="#Page_48">48</a>, <a href="#Page_49">49</a></li> + <li>protests against authorizing vessels to arm, <a href="#Page_149">149</a></li> + <li>divides electoral vote between Adams and Jefferson, <a href="#Page_163">163</a></li> + <li>Gallatin's financial report to, <a href="#Page_183">183</a>, <a href="#Page_184">184</a></li> + <li>offers to take two millions of United States bonds, <a href="#Page_214">214</a></li> + <li>interferes to regulate Bank of North America, <a href="#Page_250">250</a></li> + <li>charters Bank of United States, <a href="#Page_271">271</a></li> + </ul></li> +<li>Leopard, captures Chesapeake, <a href="#Page_224">224</a></li> +<li>Lesdernier, M. de, flies from Nova Scotia to Machias, <a href="#Page_14">14</a>; + <ul class="IX"> + <li>welcomes Gallatin, <a href="#Page_14">14</a></li> + <li>on good terms with Indians, <a href="#Page_16">16</a></li> + <li>attempt of Gallatin to obtain a pension for, <a href="#Page_30">30</a></li> + <li>letter of Gallatin to, <a href="#Page_154">154</a></li> + <li>introduces Gallatin to Indians, <a href="#Page_373">373</a></li> + </ul></li> +<li>Lesdernier, Madame de, persuades Gallatin to visit Machias, <a href="#Page_14">14</a></li> +<li>Lieven, Count, Russian minister at London, <a href="#Page_308">308</a>; + <ul class="IX"> + <li>his friendship with Gallatin, <a href="#Page_348">348</a></li> + </ul></li> +<li>Lincoln, Levi, views on unconstitutionality of acquiring territory, <a href="#Page_285">285</a></li> +<li>Livermore, E. S., on committee to consider Gallatin's eligibility to Senate, <a href="#Page_61">61</a></li> +<li>Liverpool, Lord, advised by Castlereagh to moderate his demands, <a href="#Page_319">319</a>; + <ul class="IX"> + <li>does so for fear of healing American dissensions, <a href="#Page_319">319</a></li> + <li>accepts settlement of Indian question, <a href="#Page_321">321</a></li> + <li>resolves to prosecute war vigorously, <a href="#Page_321">321</a></li> + <li>abandons claim to territory and admits defeats, <a href="#Page_322">322</a></li> + <li>letter of Castlereagh to, <a href="#Page_326">326</a></li> + <li>death, <a href="#Page_347">347</a></li> + </ul></li> +<li>Livingston, Edward, prominent Republican in Congress, <a href="#Page_100">100</a>; + <ul class="IX"> + <li>his precocity, <a href="#Page_100">100</a></li> + <li>calls for instructions for Jay, <a href="#Page_109">109</a>, <a href="#Page_110">110</a></li> + <li>votes against complimentary address to Washington, <a href="#Page_129">129</a></li> + <li>attacks Adams's foreign policy, <a href="#Page_135">135</a>, <a href="#Page_136">136</a></li> + <li>presents petitions against Alien and Sedition Laws, <a href="#Page_157">157</a></li> + </ul></li> +<li>Livingston, Robert R., arranges terms of Louisiana purchase, <a href="#Page_193">193</a></li> +<li>Lorillard, Jacob, at free trade convention, 1831, <a href="#Page_241">241</a></li> +<li>Loring, Captain, takes Gallatin to America, <a href="#Page_11">11</a></li> +<li>Louis XVI., executed, <a href="#Page_56">56</a></li> +<li>Louis XVIII., Jefferson's opinion of, <a href="#Page_331">331</a>; + <ul class="IX"> + <li>gives audience to Gallatin, <a href="#Page_332">332</a></li> + <li>his intimacy with Gallatin and his sarcasm, <a href="#Page_332">332</a></li> + </ul></li> +<li>Louisiana, financial effect of its purchase, <a href="#Page_192">192</a>, <a href="#Page_193">193</a>, <a href="#Page_195">195</a>, <a href="#Page_196">196</a>, <a href="#Page_222">222</a>; + <ul class="IX"> + <li>effect of its acquisition on England, <a href="#Page_224">224</a></li> + <li>constitutional question involved, <a href="#Page_285">285</a>, <a href="#Page_286">286</a></li> + <li>occupation of, arranged by Gallatin, <a href="#Page_286">286</a>, <a href="#Page_287">287</a></li> + </ul></li> +<li>Lynn, Mary, keeps boarding-house in Philadelphia, <a href="#Page_19">19</a></li> +<li>Lyon, Matthew, his collision with Griswold, <a href="#Page_141">141</a>; + <ul class="IX"> + <li>defended by Gallatin, <a href="#Page_141">141</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Machias, expedition of Gallatin to, <a href="#Page_14">14</a>, <a href="#Page_15">15</a>; + <ul class="IX"> + <li>life at, <a href="#Page_15">15</a>, <a href="#Page_16">16</a>, <a href="#Page_17">17</a></li> + </ul></li> +<li>Macon, Nathanael, votes against complimentary address to Washington, <a href="#Page_129">129</a>; + <ul class="IX"> + <li>aids Gallatin in sixth Congress, <a href="#Page_159">159</a></li> + <li>moves repeal of Sedition Law, <a href="#Page_159">159</a></li> + <li>opposes non-intercourse with France, <a href="#Page_159">159</a>, <a href="#Page_160">160</a></li> + <li>letter of Jefferson to, <a href="#Page_182">182</a></li> + <li>letter to Nicholson, <a href="#Page_293">293</a></li> + <li>tries to pass Navigation Act against English and French decrees, <a href="#Page_296">296</a></li> + <li>on decay of democratic principles in 1824, <a href="#Page_356">356</a>, <a href="#Page_358">358</a></li> + </ul></li> +<li>Madison, James, secures adoption of ten amendments, <a href="#Page_40">40</a>; + <ul class="IX"> + <li>abandons Federalists through Jefferson's influence, <a href="#Page_99">99</a></li> + <li>leads Republicans in House, <a href="#Page_100">100</a></li> + <li>weakness in debate, <a href="#Page_100">100</a></li> + <li>drafts address to Washington, <a href="#Page_105">105</a></li> + <li>on Committee on Finance, <a href="#Page_106">106</a></li> + <li>advocates bill to establish trading posts with Indians, <a href="#Page_108">108</a></li> + <li>moves to amend call for Jay papers, <a href="#Page_111">111</a></li> + <li>interprets treaty power</li> + <li>in Constitution in Jay treaty debate, <a href="#Page_113">113</a>, <a href="#Page_115">115</a></li> + <li>attacks Jay treaty, <a href="#Page_118">118</a></li> + <li>influence complained of by Wolcott, <a href="#Page_127">127</a></li> + <li>not reëlected to Congress, <a href="#Page_133">133</a></li> + <li>his inexplicable submission to Smith, <a href="#Page_164">164</a></li> + <li>in triumvirate with Jefferson and Gallatin, <a href="#Page_168">168</a></li> + <li>his weakness as financier, <a href="#Page_179">179</a></li> + <li>summons Congress, <a href="#Page_205">205</a></li> + <li>anxious to evade responsibility for peace or war, <a href="#Page_205">205</a></li> + <li>communications on finance from Gallatin, <a href="#Page_212">212</a>, <a href="#Page_259">259</a></li> + <li>his indecision as to financial situation, <a href="#Page_230">230</a></li> + <li>does not accept Gallatin's resignation, <a href="#Page_231">231</a></li> + <li>realizes indispensableness of Gallatin to him, <a href="#Page_231">231</a></li> + <li>agrees with Gallatin as to minute appropriations, <a href="#Page_245">245</a></li> + <li>vetoes bill to incorporate national bank, <a href="#Page_265">265</a></li> + <li>signs a second bill, <a href="#Page_265">265</a></li> + <li>his inconsistency, <a href="#Page_266">266</a></li> + <li>urged by Gallatin to restore specie payment, <a href="#Page_267">267</a></li> + <li>opposes Gallatin's civil service circular, <a href="#Page_281">281</a></li> + <li>not superior on constitutional points to Gallatin, <a href="#Page_284">284</a></li> + <li>refuses to support Astor's plans, <a href="#Page_288">288</a></li> + <li>consults with Gallatin on inaugural address, <a href="#Page_294">294</a></li> + <li>forced by senators to abandon plan to make Gallatin secretary of state, <a href="#Page_294">294</a>, <a href="#Page_295">295</a></li> + <li>unable to control party, <a href="#Page_295">295</a></li> + <li>favors England as against France, <a href="#Page_295">295</a></li> + <li>fails to support Gallatin, his inexcusable weakness, <a href="#Page_296">296</a></li> + <li>compelled to choose between Smith and Gallatin, <a href="#Page_297">297</a></li> + <li>efforts of Duane to poison his mind against Gallatin, <a href="#Page_297">297</a></li> + <li>not qualified to be a war president, <a href="#Page_298">298</a>, <a href="#Page_299">299</a></li> + <li>sends Gallatin on Russian mission with leave of absence, <a href="#Page_299">299</a></li> + <li>appoints Duane adjutant-general, <a href="#Page_299">299</a></li> + <li>continues on good terms with Gallatin, <a href="#Page_300">300</a></li> + <li>accepts English offer of direct negotiation, <a href="#Page_312">312</a></li> + <li>appoints a new commission, <a href="#Page_312">312</a></li> + <li>intends Gallatin for head of commission, <a href="#Page_312">312</a></li> + <li>names Gallatin minister to France, <a href="#Page_326">326</a></li> + <li>thanked by Gallatin, <a href="#Page_327">327</a></li> + <li>leaves him at liberty to decide, <a href="#Page_329">329</a></li> + <li>offers Gallatin secretaryship of treasury, <a href="#Page_330">330</a></li> + <li>favors Crawford for presidency, <a href="#Page_356">356</a></li> + </ul></li> +<li>Malesherbes, C. G. de L. de, his courage compared to that of Gallatin, <a href="#Page_84">84</a></li> +<li>“Manifest Destiny,” Gallatin's opinion of, <a href="#Page_352">352</a>, <a href="#Page_353">353</a></li> +<li>Marie Antoinette, executed, <a href="#Page_56">56</a></li> +<li>Marshall, James, represents Fayette County in anti-excise proceedings, <a href="#Page_51">51</a>, <a href="#Page_52">52</a>, <a href="#Page_69">69</a>; + <ul class="IX"> + <li>joins Bradford in calling out militia, <a href="#Page_70">70</a></li> + <li>his resolutions at Parkinson's Ferry meeting disapproved by Gallatin, <a href="#Page_78">78</a>, <a href="#Page_79">79</a></li> + <li>withdraws them, <a href="#Page_80">80</a></li> + <li>on committee to confer with United States commissioners, <a href="#Page_81">81</a></li> + </ul></li> +<li>Marshall, John, offers Gallatin a place in his office, <a href="#Page_29">29</a>; + <ul class="IX"> + <li>on French mission, <a href="#Page_139">139</a>, <a href="#Page_152">152</a></li> + <li>elected to Congress, <a href="#Page_158">158</a></li> + <li>announces death of Washington, <a href="#Page_158">158</a></li> + <li>draws reply to Adams's address, <a href="#Page_158">158</a></li> + </ul></li> +<li>Mason, S. T., makes Jay treaty public, <a href="#Page_103">103</a></li> +<li>Mathews, Rev. Mr., member of “The Club,” <a href="#Page_367">367</a></li> +<li>Mayer, member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>McClanachan, Blair, chairman of anti-Federalist Conference, <a href="#Page_38">38</a>; + <ul class="IX"> + <li>his ultra-democratic remarks to Adams, <a href="#Page_138">138</a></li> + </ul></li> +<li>McDuffie, George, estimates profits of bankers on state bank circulation, <a href="#Page_263">263</a></li> +<li>McKean, Thomas, in Pennsylvania Constitutional Convention, <a href="#Page_43">43</a>; + <ul class="IX"> + <li>suggests sending a commission to confer with Whiskey insurgents, <a href="#Page_77">77</a></li> + <li>asked to prevent civil war in 1800, <a href="#Page_166">166</a></li> + </ul></li> +<li>McLane, Louis, reports extinction of national debt, <a href="#Page_269">269</a></li> +<li>McVickar, ----, member of “The Club,” <a href="#Page_366">366</a></li> +<li>Mexico, war with, Gallatin's opinion of, <a href="#Page_352">352</a></li> +<li>Middleton, Henry, at free trade convention of 1831, <a href="#Page_241">241</a></li> +<li>Mifflin, Thomas, in Pennsylvania Constitutional Convention, <a href="#Page_43">43</a>; + <ul class="IX"> + <li>deprecates use of force against Whiskey Rebellion, <a href="#Page_77">77</a></li> + <li>summons legislature and obtains authority to employ militia, <a href="#Page_88">88</a></li> + <li>succeeds by personal influence in filling ranks, <a href="#Page_88">88</a></li> + </ul></li> +<li>Mirabeau, Vicomte de, friend of Dumont, <a href="#Page_5">5</a></li> +<li>Mississippi navigation, discussed in treaty of Ghent, <a href="#Page_322">322</a>, <a href="#Page_323">323</a>; + <ul class="IX"> + <li>in 1818, <a href="#Page_335">335</a></li> + </ul></li> +<li>Mitchell, S. L., on committee to consider Gallatin's eligibility to Senate, <a href="#Page_61">61</a></li> +<li>Monroe, James, presents flag to French Convention, <a href="#Page_132">132</a>; + <ul class="IX"> + <li>arranges terms of Louisiana purchase, <a href="#Page_193">193</a></li> + <li>supplants Smith as secretary of state, <a href="#Page_296">296</a>, <a href="#Page_298">298</a></li> + <li>on necessity of renunciation of impressment in treaty of peace, <a href="#Page_305">305</a></li> + <li>asked by Gallatin for further instructions, <a href="#Page_308">308</a></li> + <li>receives proposals from England for direct negotiation, <a href="#Page_311">311</a></li> + <li>asked by commissioners for authority to treat in any place, <a href="#Page_314">314</a></li> + <li>warned by Gallatin of English war plans, <a href="#Page_316">316</a>, <a href="#Page_317">317</a>, <a href="#Page_318">318</a></li> + <li>communications of Gallatin to, during negotiations, <a href="#Page_319">319</a></li> + <li>urges Gallatin not to withdraw from public service, <a href="#Page_329">329</a></li> + <li>appoints Adams secretary of state, <a href="#Page_334">334</a></li> + <li>gives Gallatin leave of absence, <a href="#Page_341">341</a></li> + <li>urges him to return to France, <a href="#Page_341">341</a></li> + </ul></li> +<li>Montgomery, John, connected by marriage with Gallatin, <a href="#Page_59">59</a>, <a href="#Page_60">60</a></li> +<li>Montmorenci, Vicomte, negotiates with Gallatin, <a href="#Page_340">340</a>; + <ul class="IX"> + <li>succeeded by Chateaubriand, <a href="#Page_340">340</a></li> + </ul></li> +<li>Moore, ----, member of “The Club,” <a href="#Page_366">366</a></li> +<li>Moreau, General Jean Victor, career in America and France, <a href="#Page_308">308</a>; + <ul class="IX"> + <li>assures Gallatin of emperor's friendliness and warns him of British obstinacy, <a href="#Page_308">308</a></li> + <li>reply of Gallatin, <a href="#Page_309">309</a></li> + <li>his death, <a href="#Page_310">310</a>, <a href="#Page_311">311</a></li> + </ul></li> +<li>Morgan, Daniel, leads militia against Whiskey Rebellion, <a href="#Page_88">88</a>, <a href="#Page_93">93</a></li> +<li>Morris, Gouverneur, snubbed by Washington for familiarity, <a href="#Page_23">23</a>; + <ul class="IX"> + <li>his precocity compared to Gallatin's, <a href="#Page_32">32</a></li> + <li>suggests decimal system, <a href="#Page_172">172</a></li> + </ul></li> +<li>Morris, Robert, receives drafts for Gallatin, <a href="#Page_28">28</a>; + <ul class="IX"> + <li>in United States Senate announces intention of neutrality on question of Gallatin's eligibility, <a href="#Page_61">61</a></li> + <li>but votes against it, 63 n.;</li> + <li>his rank as financier, <a href="#Page_170">170</a>-<a href="#Page_173">173</a></li> + <li>plans Bank of North America, <a href="#Page_248">248</a>, <a href="#Page_249">249</a></li> + <li>buys land of Gallatin, <a href="#Page_361">361</a></li> + <li>settles with Gallatin, <a href="#Page_362">362</a></li> + <li>fails and is imprisoned, <a href="#Page_362">362</a></li> + </ul></li> +<li>Morse, ----, member of “The Club,” <a href="#Page_367">367</a></li> +<li>Morton, Dr., member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Muhlenberg, Frederick A., defeated for speaker by Dayton, <a href="#Page_98">98</a>; + <ul class="IX"> + <li>gives casting vote in favor of Jay treaty appropriations, <a href="#Page_121">121</a></li> + </ul></li> +<li>Müller, Johann von, teaches Gallatin history, <a href="#Page_3">3</a></li> +<li>Murray, William Vans, prominent Federalist in House, <a href="#Page_99">99</a>; + <ul class="IX"> + <li>on finance committee, <a href="#Page_106">106</a></li> + <li>denies discretionary power of House over Jay treaty, <a href="#Page_110">110</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Navy, opposed by Gallatin, <a href="#Page_123">123</a>, <a href="#Page_124">124</a>, <a href="#Page_130">130</a>, <a href="#Page_137">137</a>, <a href="#Page_157">157</a>, <a href="#Page_186">186</a>, <a href="#Page_188">188</a>; + <ul class="IX"> + <li>his course defended, <a href="#Page_216">216</a></li> + <li>gunboat scheme, <a href="#Page_288">288</a>, <a href="#Page_289">289</a></li> + </ul></li> +<li>Nesselrode, Count, leaves Russian foreign affairs in charge of Romanzoff, <a href="#Page_304">304</a>; + <ul class="IX"> + <li>inability of Crawford to secure audience with, <a href="#Page_315">315</a></li> + </ul></li> +<li>New England, supports Adams in 1800, <a href="#Page_163">163</a>; + <ul class="IX"> + <li>refuses to support popular loan, <a href="#Page_212">212</a>, <a href="#Page_213">213</a></li> + <li>plans disunion, <a href="#Page_213">213</a></li> + <li>hoards specie, <a href="#Page_260">260</a>, <a href="#Page_261">261</a></li> + <li>opposes embargo, <a href="#Page_293">293</a></li> + <li>its secession hoped for by England, <a href="#Page_313">313</a></li> + </ul></li> +<li>New York, calls for a second Federal Convention, <a href="#Page_36">36</a>, <a href="#Page_37">37</a>; + <ul class="IX"> + <li>Republican in 1800, <a href="#Page_163">163</a></li> + </ul></li> +<li>New York city, first visit of Gallatin to, <a href="#Page_18">18</a>; + <ul class="IX"> + <li>abandoned by Congress for Philadelphia, <a href="#Page_47">47</a></li> + <li>protests against Jay treaty, <a href="#Page_103">103</a></li> + <li>settlement of Gallatin in, <a href="#Page_365">365</a>, <a href="#Page_366">366</a></li> + <li>social life in, <a href="#Page_366">366</a>-<a href="#Page_368">368</a></li> + <li>attempt of Gallatin to establish a university in, <a href="#Page_368">368</a>, <a href="#Page_369">369</a></li> + </ul></li> +<li>New York Historical Society, presidency of Gallatin, <a href="#Page_382">382</a>; + <ul class="IX"> + <li>his inaugural address to, <a href="#Page_382">382</a>-<a href="#Page_384">384</a></li> + <li>celebration of its fortieth anniversary, <a href="#Page_384">384</a></li> + <li>honors Gallatin's memory, <a href="#Page_388">388</a></li> + </ul></li> +<li>Nicholas, John, Republican leader in House, <a href="#Page_100">100</a>; + <ul class="IX"> + <li>on treaty power, <a href="#Page_111">111</a></li> + <li>supports Gallatin in advocating specific appropriations, <a href="#Page_130">130</a></li> + <li>moves amendment to Adams's message, <a href="#Page_134">134</a></li> + <li>in debate on French relations, <a href="#Page_135">135</a></li> + <li>desires to limit executive through power over appropriations, <a href="#Page_143">143</a></li> + <li>aids Gallatin in sixth Congress, <a href="#Page_159">159</a></li> + <li>opposes non-intercourse with France, <a href="#Page_159">159</a></li> + <li>resists supposed encroachment of Senate on House, <a href="#Page_161">161</a></li> + <li>confers with Jefferson and Gallatin on election of 1800, <a href="#Page_164">164</a></li> + </ul></li> +<li>Nicholson family, connected by marriage with Gallatin, <a href="#Page_59">59</a></li> +<li>Nicholson, Hannah, marries Gallatin, <a href="#Page_59">59</a>; + <ul class="IX"> + <li>described by him, <a href="#Page_59">59</a></li> + <li>her relations to her husband, <a href="#Page_59">59</a></li> + <li>letters of Gallatin to, <a href="#Page_138">138</a>, <a href="#Page_180">180</a></li> + <li>unhappy in Fayette County, <a href="#Page_180">180</a></li> + <li>her property, <a href="#Page_363">363</a></li> + <li>unfit for frontier life, <a href="#Page_363">363</a></li> + <li>her success in Washington society, <a href="#Page_363">363</a>, <a href="#Page_364">364</a></li> + <li>her death, <a href="#Page_386">386</a>, <a href="#Page_387">387</a></li> + </ul></li> +<li>Nicholson, Commodore James, father-in-law of Gallatin, his family, <a href="#Page_59">59</a>; + <ul class="IX"> + <li>visited by Gallatin after marriage, <a href="#Page_60">60</a></li> + <li>on Gallatin's political moderation, <a href="#Page_138">138</a></li> + <li>commands gunboats in Lafayette's campaign of 1781, <a href="#Page_371">371</a></li> + </ul></li> +<li>Nicholson, James Witter, in business with Gallatin, <a href="#Page_60">60</a></li> +<li>Nicholson, Joseph H., letter of Gallatin to, on war revenue, <a href="#Page_224">224</a>; + <ul class="IX"> + <li>furnished by Gallatin with questions to ask himself, <a href="#Page_246">246</a></li> + <li>letter of Macon to, <a href="#Page_293">293</a></li> + </ul></li> +<li>Non-importation, difficulty of enforcement in 1774, <a href="#Page_293">293</a>; + <ul class="IX"> + <li>enforced by Gallatin in 1808, <a href="#Page_293">293</a></li> + </ul></li> +<li>Norris, Isaac W., at free trade convention, <a href="#Page_241">241</a></li> +</ul> + +<ul class="IX"> +<li>Odier, ----, takes shares in Gallatin's land scheme, <a href="#Page_361">361</a></li> +<li>Ohio Company, its formation and lands, <a href="#Page_20">20</a></li> +<li>Oregon question, discussion over, in 1818, <a href="#Page_335">335</a>; + <ul class="IX"> + <li>discussed in 1826, <a href="#Page_343">343</a></li> + <li>determination of Adams not to give way in, <a href="#Page_346">346</a></li> + <li>joint occupation of, continued, <a href="#Page_347">347</a></li> + <li>views of Gallatin on, <a href="#Page_351">351</a></li> + </ul></li> +<li>Otis, Harrison Gray, elected to Congress, <a href="#Page_132">132</a>; + <ul class="IX"> + <li>denounces Gallatin for attacking Federalist administration, <a href="#Page_136">136</a></li> + <li>on resolution to punish foreign correspondence, <a href="#Page_156">156</a></li> + <li>reports investigation of Wolcott's management of Treasury, <a href="#Page_177">177</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Panama Congress, its importance, <a href="#Page_342">342</a>; + <ul class="IX"> + <li>mission to, declined by Gallatin, <a href="#Page_342">342</a></li> + </ul></li> +<li>Paper money, its issue suggested by Jefferson, <a href="#Page_264">264</a>; + <ul class="IX"> + <li>Gallatin's opinion of, <a href="#Page_268">268</a>, <a href="#Page_277">277</a></li> + </ul></li> +<li>Parish, David, assists Gallatin to float loan, <a href="#Page_213">213</a>, <a href="#Page_214">214</a>; + <ul class="IX"> + <li>his reasons, <a href="#Page_259">259</a>, <a href="#Page_260">260</a></li> + </ul></li> +<li>Parker, Josiah, amends resolution to punish foreign correspondence, <a href="#Page_156">156</a>; + <ul class="IX"> + <li>offers resolution to amend non-intercourse, <a href="#Page_160">160</a></li> + </ul></li> +<li>Pasquier, M., negotiates with Gallatin, <a href="#Page_337">337</a>; + <ul class="IX"> + <li>pacified by Gallatin after seizure of Apollon, <a href="#Page_338">338</a></li> + </ul></li> +<li>Patton, John, on Committee on Finance, <a href="#Page_107">107</a></li> +<li>Peabody, George, at free trade convention of 1831, <a href="#Page_241">241</a></li> +<li>Pendleton Society of Virginia, adopts secession resolutions, <a href="#Page_116">116</a></li> +<li>Penn, John, letter to, given Gallatin by Lady Penn, <a href="#Page_11">11</a></li> +<li>Penn, Lady Juliana, gives Gallatin letter to John Penn, <a href="#Page_11">11</a></li> +<li>Penns, proprietors of Pennsylvania, educated at Geneva, <a href="#Page_4">4</a></li> +<li>Pennsylvania, ratifies federal Constitution, <a href="#Page_35">35</a>; + <ul class="IX"> + <li>movement in, to call a second convention, <a href="#Page_37">37</a>-<a href="#Page_40">40</a></li> + <li>education in, efforts of Gallatin to improve, <a href="#Page_45">45</a></li> + <li>opposition to excise in, <a href="#Page_48">48</a>-<a href="#Page_55">55</a></li> + <li>Whiskey Rebellion in, <a href="#Page_67">67</a>-<a href="#Page_96">96</a></li> + <li>popularity of Gallatin in, <a href="#Page_65">65</a></li> + <li>its law regarding slavery, <a href="#Page_140">140</a></li> + <li>petitions against Alien and Sedition Acts, <a href="#Page_157">157</a></li> + </ul></li> +<li>Pensacola, its seizure by Jackson, <a href="#Page_336">336</a></li> +<li>Philadelphia, visit of Gallatin to, <a href="#Page_19">19</a>, <a href="#Page_21">21</a>; + <ul class="IX"> + <li>removal of Congress to, <a href="#Page_47">47</a></li> + <li>society in, <a href="#Page_47">47</a>, <a href="#Page_48">48</a></li> + <li>angry feeling in, against Whiskey Insurrection, <a href="#Page_92">92</a></li> + <li>protests against Jay treaty, <a href="#Page_103">103</a></li> + <li>petitions legislature to repeal charter of Bank of North America, <a href="#Page_250">250</a></li> + <li>nominates Gallatin for Congress, <a href="#Page_329">329</a></li> + </ul></li> +<li>Pickering, Timothy, in Pennsylvania Constitutional Convention, <a href="#Page_43">43</a>; + <ul class="IX"> + <li>secretary of war and postmaster-general under Washington, <a href="#Page_97">97</a></li> + </ul></li> +<li>Pickering, ---- member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Pictet, Mademoiselle, adopts Gallatin, her kindness, <a href="#Page_2">2</a>; + <ul class="IX"> + <li>her nephew taught by Gallatin, <a href="#Page_5">5</a></li> + <li>regard of Gallatin for, <a href="#Page_9">9</a></li> + <li>pained at Gallatin's departure, <a href="#Page_11">11</a></li> + <li>gives him letter to Kinloch, <a href="#Page_11">11</a></li> + <li>sends him money and secures interest of Dr. Cooper, <a href="#Page_17">17</a></li> + <li>his ingratitude toward, regretted by Gallatin, <a href="#Page_20">20</a></li> + <li>supposes his failure to write due to misfortune, <a href="#Page_27">27</a></li> + <li>accuses Gallatin of indolence and ennui, <a href="#Page_43">43</a>, <a href="#Page_44">44</a></li> + </ul></li> +<li>Pictet, ----, naturalist, relative of Gallatin, <a href="#Page_5">5</a></li> +<li>Pinckney, Charles C., refused reception as minister by France, <a href="#Page_132">132</a>; + <ul class="IX"> + <li>on second mission, <a href="#Page_139">139</a></li> + <li>returns, <a href="#Page_152">152</a></li> + <li>attends Congress as general, <a href="#Page_155">155</a></li> + </ul></li> +<li>Pinckney, Thomas, makes treaty with Spain, <a href="#Page_117">117</a></li> +<li>Pitt, William, his precocity compared to Gallatin's, <a href="#Page_32">32</a></li> +<li>Poles, in New York, befriended by Gallatin, <a href="#Page_372">372</a></li> +<li>Powell, William H., his portrait of Gallatin, <a href="#Page_386">386</a></li> +<li>Preston, William C., at free trade convention in 1831, <a href="#Page_241">241</a></li> +</ul> + +<ul class="IX"> +<li>Quakers, in Pennsylvania, oppose general education, <a href="#Page_45">45</a>; + <ul class="IX"> + <li>petition against seizure of fugitive slaves, <a href="#Page_140">140</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Randolph, Edmund, deprecates force against Whiskey Rebellion, on ground that only Washington's influence prevents civil war, <a href="#Page_77">77</a>; + <ul class="IX"> + <li>retires from cabinet, <a href="#Page_97">97</a></li> + <li>damages reputation by dealings with Fauchet, <a href="#Page_103">103</a></li> + <li>remark of Jay to, during negotiations with England, <a href="#Page_118">118</a></li> + </ul></li> +<li>Randolph, John, elected to Congress, <a href="#Page_158">158</a>; + <ul class="IX"> + <li>opposes non-intercourse with France, <a href="#Page_159">159</a></li> + <li>opposes giving a gold medal to Truxton, <a href="#Page_160">160</a></li> + <li>advocates abolition of internal duties, <a href="#Page_221">221</a></li> + <li>complains of want of system in Jefferson's cabinet, <a href="#Page_284">284</a></li> + <li>on Madison's weakness, <a href="#Page_295">295</a></li> + <li>unfitted to lead a party, <a href="#Page_355">355</a></li> + </ul></li> +<li>Renwick, James, letter of Mrs. Irving to, on Mrs. Gallatin, <a href="#Page_364">364</a>; + <ul class="IX"> + <li>member of “The Club,” <a href="#Page_366">366</a></li> + </ul></li> +<li>Republican party, its origin, <a href="#Page_57">57</a>; + <ul class="IX"> + <li>its leaders in House of Representatives in 1795, <a href="#Page_99">99</a>, <a href="#Page_100">100</a></li> + <li>its attitude toward France and Revolution, <a href="#Page_101">101</a>, <a href="#Page_102">102</a></li> + <li>imitates Jacobins, <a href="#Page_102">102</a></li> + <li>opposes resolution complimenting Washington's administration, <a href="#Page_104">104</a>-<a href="#Page_106">106</a></li> + <li>attacks administration of Treasury, <a href="#Page_106">106</a></li> + <li>asserts right of House to share in treaty power, <a href="#Page_110">110</a>-<a href="#Page_114">114</a></li> + <li>leadership of Gallatin in, <a href="#Page_115">115</a>, <a href="#Page_128">128</a>, <a href="#Page_133">133</a>, <a href="#Page_159">159</a></li> + <li>attacks Jay treaty, <a href="#Page_118">118</a>-<a href="#Page_121">121</a></li> + <li>objects to adjournment on Washington's birthday, <a href="#Page_126">126</a></li> + <li>attacks Washington, <a href="#Page_128">128</a></li> + <li>reluctant to affront France, <a href="#Page_133">133</a>-<a href="#Page_136">136</a></li> + <li>opposes increase of foreign missions, <a href="#Page_141">141</a>-<a href="#Page_147">147</a></li> + <li>attacks Alien and Sedition Laws, <a href="#Page_159">159</a></li> + <li>profits by popular dislike of England and of Alien and Sedition Laws, <a href="#Page_163">163</a></li> + <li>gives equal vote to Jefferson and Burr, <a href="#Page_163">163</a></li> + <li>its policy to resist any Federalist usurpation by force, <a href="#Page_166">166</a></li> + <li>success due to Gallatin's leadership, <a href="#Page_167">167</a>, <a href="#Page_168">168</a></li> + <li>its share in building country, <a href="#Page_169">169</a></li> + <li>opposes internal revenue, <a href="#Page_221">221</a></li> + <li>its principles violated by Jefferson in suggesting internal improvements, <a href="#Page_227">227</a></li> + <li>refuses to renew charter of bank, <a href="#Page_231">231</a>, <a href="#Page_254">254</a></li> + <li>violates principles in chartering second bank, <a href="#Page_265">265</a></li> + <li>introduces new principles of administration into government, <a href="#Page_279">279</a></li> + <li>demands share of offices, <a href="#Page_281">281</a>, <a href="#Page_282">282</a></li> + <li>refuses to confirm Gallatin for secretary of state, <a href="#Page_294">294</a></li> + <li>factions in, under Madison, <a href="#Page_295">295</a></li> + <li>incompetent to manage war, <a href="#Page_298">298</a></li> + <li>lacks leaders after Gallatin, <a href="#Page_355">355</a></li> + <li>its condition in 1824, <a href="#Page_356">356</a></li> + <li>its caucus nominates Crawford and Gallatin, <a href="#Page_357">357</a>, <a href="#Page_358">358</a></li> + <li>new developments of, under Jackson, <a href="#Page_358">358</a>, <a href="#Page_359">359</a>, <a href="#Page_360">360</a></li> + </ul></li> +<li>Revenue, <a href="#Page_218">218</a>-<a href="#Page_238">238</a> See Finances.</li> +<li>Richelieu, Duc de, seeks explanation from Gallatin of American sympathy for Bonaparte, <a href="#Page_331">331</a>; + <ul class="IX"> + <li>declares impossibility of making full compensation for captures under Berlin and Milan decrees, <a href="#Page_332">332</a></li> + <li>angered at American refusal to dismiss an impudent postmaster, <a href="#Page_333">333</a></li> + <li>on Jackson's seizure of Pensacola, <a href="#Page_336">336</a></li> + <li>urges peace with Spain, <a href="#Page_336">336</a></li> + </ul></li> +<li>Richmond, society in, <a href="#Page_23">23</a>, <a href="#Page_24">24</a></li> +<li>Robinson, Dr., associate of Gallatin in founding American Ethnological Society, <a href="#Page_379">379</a></li> +<li>Rochefoucauld, D'Enville, Duc de, obtains letters for Gallatin from Franklin, <a href="#Page_11">11</a></li> +<li>Rollaz, Sophie Albertine, mother of Gallatin, <a href="#Page_2">2</a>; + <ul class="IX"> + <li>assumes husband's share in business, <a href="#Page_2">2</a></li> + <li>death, <a href="#Page_2">2</a></li> + </ul></li> +<li>Romanzoff, Count, originates plan of Russian mediation, <a href="#Page_304">304</a>; + <ul class="IX"> + <li>dealings of Gallatin with, <a href="#Page_307">307</a></li> + <li>renews offer of mediation, <a href="#Page_308">308</a></li> + <li>gives Dallas letter to Count Lieven, <a href="#Page_310">310</a></li> + <li>thanked by Gallatin, <a href="#Page_312">312</a></li> + </ul></li> +<li>Ross, James, appeals to Whiskey insurgents not to use violence, <a href="#Page_70">70</a>; + <ul class="IX"> + <li>on commission to confer with insurgents, <a href="#Page_85">85</a></li> + </ul></li> +<li>Rousseau, J. J., Gallatin's opinion of, <a href="#Page_6">6</a></li> +<li>Ruggles, Benjamin, letter of Gallatin to, accepting nomination for vice-president, <a href="#Page_358">358</a></li> +<li>Rush, Richard, introduced to public life by Gallatin, <a href="#Page_334">334</a>; + <ul class="IX"> + <li>named minister to England, <a href="#Page_334">334</a></li> + <li>joined with Gallatin to negotiate concerning convention of 1815, <a href="#Page_334">334</a>, <a href="#Page_335">335</a></li> + <li>secretary of Treasury, <a href="#Page_342">342</a></li> + <li>tone of his correspondence, <a href="#Page_345">345</a></li> + </ul></li> +<li>Russell, Jonathan, on peace commission, <a href="#Page_312">312</a>; + <ul class="IX"> + <li>arrives at Gottenburg, <a href="#Page_313">313</a></li> + </ul></li> +<li>Russia, offers to mediate between England and United States, <a href="#Page_299">299</a>; + <ul class="IX"> + <li>mission of Gallatin and Bayard to, <a href="#Page_299">299</a>, <a href="#Page_301">301</a>-<a href="#Page_312">312</a></li> + <li>refusal of England to accept its mediation, <a href="#Page_306">306</a>, <a href="#Page_307">307</a></li> + <li>dealings of Gallatin with Romanzoff, <a href="#Page_307">307</a>, <a href="#Page_308">308</a></li> + <li>renews its offer, <a href="#Page_308">308</a>, <a href="#Page_315">315</a></li> + <li>displeased with recognition of Spanish colonies, <a href="#Page_337">337</a></li> + </ul></li> +<li>Rutherford, John, on committee to consider Gallatin's eligibility to Senate, <a href="#Page_61">61</a></li> +<li>Rutledge, John, Jr., elected to Congress, <a href="#Page_133">133</a></li> +</ul> + +<ul class="IX"> +<li>Savary de Valcoulon, has claims against Virginia, <a href="#Page_19">19</a>; + <ul class="IX"> + <li>meets Gallatin at Philadelphia and uses him as interpreter, <a href="#Page_19">19</a></li> + <li>goes with Gallatin to Richmond, <a href="#Page_19">19</a></li> + <li>interests him in land speculation, <a href="#Page_21">21</a></li> + <li>joins Gallatin in locating claims, <a href="#Page_24">24</a></li> + </ul></li> +<li>Schoolcraft, Henry R., member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Scott, General Winfield, requested by Gallatin to aid in collecting ethnological data in Mexico, <a href="#Page_380">380</a></li> +<li>Scott, Thomas, appeals to Whiskey insurgents, <a href="#Page_70">70</a></li> +<li>Sedgwick, Theodore, leader of Federalists in House, <a href="#Page_98">98</a>; + <ul class="IX"> + <li>on committee to draft address to Washington, <a href="#Page_105">105</a></li> + <li>on Committee on Finance, <a href="#Page_106">106</a></li> + <li>offers resolution to execute four treaties, <a href="#Page_118">118</a></li> + <li>taunts Gallatin with instigating Whiskey Rebellion, <a href="#Page_124">124</a></li> + <li>elected speaker, <a href="#Page_158">158</a></li> + <li>at free trade convention of 1831, <a href="#Page_241">241</a></li> + </ul></li> +<li>Sedition Law, condemned by Gallatin, <a href="#Page_152">152</a>; + <ul class="IX"> + <li>petitions against, <a href="#Page_157">157</a></li> + </ul></li> +<li>Senate of United States, election of Gallatin to, <a href="#Page_58">58</a>; + <ul class="IX"> + <li>appoints committees to consider his eligibility, <a href="#Page_61">61</a>, <a href="#Page_62">62</a></li> + <li>votes to exclude him, <a href="#Page_62">62</a>, <a href="#Page_63">63</a></li> + <li>prejudiced against him by his actions, <a href="#Page_64">64</a>, <a href="#Page_65">65</a></li> + <li>ratifies Jay treaty, <a href="#Page_102">102</a>, <a href="#Page_103">103</a></li> + <li>yields to House regarding specific appropriations, <a href="#Page_130">130</a></li> + <li>controlled by Federalists, <a href="#Page_139">139</a></li> + <li>passes bill authorizing convoys, <a href="#Page_149">149</a></li> + <li>passes bill abrogating treaty with France, <a href="#Page_154">154</a></li> + <li>amends House Bill to suspend intercourse with France, <a href="#Page_160">160</a></li> + <li>debate over its bill to require annual treasury reports, <a href="#Page_161">161</a></li> + <li>ratifies commercial convention with France, <a href="#Page_162">162</a></li> + <li>still controlled by Federalists, <a href="#Page_178">178</a></li> + <li>its hostility to Gallatin, <a href="#Page_181">181</a></li> + <li>refuses to confirm his appointment as peace commissioner, <a href="#Page_310">310</a></li> + </ul></li> +<li>Seney, Joshua, connected by marriage with Gallatin, <a href="#Page_59">59</a></li> +<li>Serre, Henri, friendship with Gallatin, <a href="#Page_5">5</a>; + <ul class="IX"> + <li>sails with him for America, <a href="#Page_9">9</a></li> + <li>doings in Boston with Gallatin, <a href="#Page_12">12</a>-<a href="#Page_14">14</a></li> + <li>at Machias, <a href="#Page_14">14</a></li> + <li>enjoys life in wilderness, <a href="#Page_15">15</a>, <a href="#Page_17">17</a></li> + <li>returns to Boston, <a href="#Page_17">17</a></li> + <li>teaches there, <a href="#Page_19">19</a></li> + <li>joins Gallatin and dissolves partnership, <a href="#Page_19">19</a></li> + <li>goes to Jamaica and dies, <a href="#Page_19">19</a></li> + <li>his debt subsequently paid, <a href="#Page_19">19</a></li> + <li>his letters to Badollet, <a href="#Page_25">25</a></li> + </ul></li> +<li>Sewall, Samuel, elected to Congress, <a href="#Page_132">132</a></li> +<li>Shays's Rebellion, an argument for Federalist party, <a href="#Page_101">101</a></li> +<li>Sheffield, Lord, says Jay duped Grenville, <a href="#Page_117">117</a></li> +<li>Sherman, John, on accounting in Treasury Department, <a href="#Page_247">247</a></li> +<li>Sismondi, J. C. L. Simonde de, on paper money, <a href="#Page_277">277</a>; + <ul class="IX"> + <li>praises Gallatin, <a href="#Page_325">325</a></li> + <li>letter of Gallatin to, <a href="#Page_380">380</a></li> + </ul></li> +<li>Sitgreaves, Samuel, Federalist in Congress, <a href="#Page_99">99</a>; + <ul class="IX"> + <li>on committee to draft address to Washington, <a href="#Page_105">105</a></li> + </ul></li> +<li>Slavery, resolutions concerning, in Pennsylvania legislature, <a href="#Page_47">47</a>; + <ul class="IX"> + <li>petitions concerning, in Congress, <a href="#Page_140">140</a></li> + <li>negotiations concerning slave trade in treaty of Ghent, <a href="#Page_323">323</a></li> + <li>at Congress of Aix la Chapelle, <a href="#Page_337">337</a></li> + </ul></li> +<li>Smilie, John, represents Fayette County in Pennsylvania ratification convention, <a href="#Page_35">35</a>; + <ul class="IX"> + <li>leads opposition to Constitution, <a href="#Page_36">36</a></li> + <li>in anti-Federalist convention, <a href="#Page_37">37</a></li> + <li>his career and friendship with Gallatin, <a href="#Page_37">37</a>, <a href="#Page_38">38</a></li> + <li>in Pennsylvania Constitutional Convention, <a href="#Page_43">43</a></li> + <li>member of state Senate, <a href="#Page_44">44</a>, <a href="#Page_54">54</a></li> + <li>at anti-excise convention, <a href="#Page_52">52</a></li> + <li>advises submission to law, <a href="#Page_69">69</a></li> + </ul></li> +<li>Smith, Isaac, on Committee on Finance, <a href="#Page_107">107</a></li> +<li>Smith, John Augustine, invites Gallatin to join “The Club,” <a href="#Page_366">366</a></li> +<li>Smith, Robert, head of faction of “invisibles,” <a href="#Page_295">295</a> + <ul class="IX"> + <li>leaves cabinet, <a href="#Page_296">296</a>, <a href="#Page_297">297</a></li> + </ul></li> +<li>Smith, Samuel, leads Maryland troops against Whiskey Insurrection, <a href="#Page_88">88</a>; + <ul class="IX"> + <li>moves to continue non-intercourse, <a href="#Page_162">162</a></li> + <li>probably makes bargain to secure election of Jefferson, <a href="#Page_164">164</a></li> + <li>his inexplicable power over Jefferson and Madison, <a href="#Page_164">164</a></li> + </ul></li> +<li>Smith, William, educated at Geneva, <a href="#Page_4">4</a>; + <ul class="IX"> + <li>Federalist in Congress, <a href="#Page_99">99</a></li> + <li>on Committee on Finance, <a href="#Page_106">106</a></li> + <li>controversy with Gallatin over increase of public debt, <a href="#Page_126">126</a></li> + </ul></li> +<li>Smithson, John, his bequest to United States, <a href="#Page_378">378</a></li> +<li>Smithsonian Institution, connection of Gallatin with, <a href="#Page_378">378</a>, <a href="#Page_379">379</a></li> +<li>Southern States, Republican in 1800, <a href="#Page_163">163</a>; + <ul class="IX"> + <li>refuse to support loan of 1813, <a href="#Page_213">213</a></li> + </ul></li> +<li>Spain, Pinckney's treaty with, <a href="#Page_117">117</a>; + <ul class="IX"> + <li>danger of war with, <a href="#Page_335">335</a></li> + <li>peace with, urged by France, <a href="#Page_336">336</a></li> + <li>negotiations over its revolted colonies, <a href="#Page_336">336</a>, <a href="#Page_337">337</a></li> + <li>rupture with France in 1823, <a href="#Page_341">341</a></li> + </ul></li> +<li>Spurzheim, on Gallatin's brain, <a href="#Page_389">389</a></li> +<li>Squier, E. G., member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Staël, Madame de, interview of Lafayette with emperor at her house, <a href="#Page_315">315</a>; + <ul class="IX"> + <li>letter of Gallatin to, <a href="#Page_320">320</a></li> + <li>expresses admiration for Gallatin, <a href="#Page_325">325</a></li> + </ul></li> +<li>Stephens, ----, member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Stevens, Byam Kerby, marries Frances Gallatin, <a href="#Page_371">371</a>; + <ul class="IX"> + <li>interest of Lafayette in, <a href="#Page_371">371</a></li> + <li>meets Lafayette, <a href="#Page_372">372</a></li> + </ul></li> +<li>Stevens, Colonel Ebenezer, Lafayette's chief of staff, <a href="#Page_371">371</a></li> +<li>Stevens, John A., at free trade convention of 1831, <a href="#Page_241">241</a>; + <ul class="IX"> + <li>member of “The Club,” <a href="#Page_367">367</a></li> + </ul></li> +<li>Stokely, ----, appeals to Whiskey insurgents, <a href="#Page_70">70</a></li> +<li>Stuart, Gilbert, his portrait of Gallatin, <a href="#Page_386">386</a></li> +<li>Swanwick, John, on Jay treaty debate, <a href="#Page_111">111</a></li> +<li>Szelesegynski, ----, Polish refugee, helped by Gallatin, <a href="#Page_372">372</a></li> +</ul> + +<ul class="IX"> +<li>Tahon, ----, keeps French café in Boston, <a href="#Page_12">12</a></li> +<li>Talleyrand, Prince, demands bribe in X Y Z affair, <a href="#Page_149">149</a>; + <ul class="IX"> + <li>makes overtures for reconciliation, <a href="#Page_152">152</a>, <a href="#Page_153">153</a></li> + </ul></li> +<li>Taney, Roger B., removes deposits from bank, <a href="#Page_269">269</a>, <a href="#Page_270">270</a>; + <ul class="IX"> + <li>appointed chief justice, <a href="#Page_270">270</a></li> + <li>his reasons for the removal, <a href="#Page_270">270</a></li> + </ul></li> +<li>Texas, annexation of, protested against by Gallatin, <a href="#Page_351">351</a></li> +<li>Throop, Governor, recommends University for training teachers, <a href="#Page_369">369</a></li> +<li>Tracy, Destutt, his “Economie Politique” translated by Jefferson, <a href="#Page_331">331</a></li> +<li>Tracy, Uriah, leader of Federalists in House, <a href="#Page_98">98</a>; + <ul class="IX"> + <li>taunts Gallatin with connection with Whiskey Rebellion, <a href="#Page_119">119</a></li> + <li>obliged to apologize, <a href="#Page_120">120</a></li> + </ul></li> +<li>Treasury Department, Hamilton's management of, attacked by Gallatin, <a href="#Page_64">64</a>; + <ul class="IX"> + <li>resigned by Hamilton, taken by Wolcott, <a href="#Page_97">97</a></li> + <li>management of, supervised by Committee of Finance, <a href="#Page_106">106</a>-<a href="#Page_108">108</a>, <a href="#Page_130">130</a></li> + <li>condition of, deplored by Gallatin, <a href="#Page_125">125</a></li> + <li>charged with arbitrary action, <a href="#Page_130">130</a>, <a href="#Page_154">154</a></li> + <li>annual reports from, required by Congress, <a href="#Page_161">161</a></li> + <li>Morris's connection with, <a href="#Page_171">171</a>-<a href="#Page_173">173</a></li> + <li>organization under Hamilton, <a href="#Page_174">174</a>, <a href="#Page_243">243</a></li> + <li>management by Wolcott, <a href="#Page_176">176</a>-<a href="#Page_178">178</a></li> + <li>appointment of Gallatin to, <a href="#Page_179">179</a>, <a href="#Page_181">181</a></li> + <li>exalted idea of, held by Gallatin, <a href="#Page_189">189</a></li> + <li>difficulty of learning management of, <a href="#Page_189">189</a>, <a href="#Page_190">190</a></li> + <li>relieved of responsibility for other departments' expenditure, <a href="#Page_223">223</a></li> + <li>administration of, by Gallatin, <a href="#Page_244">244</a>-<a href="#Page_246">246</a></li> + <li>reports from, <a href="#Page_245">245</a></li> + <li>efforts of Gallatin to secure precision in, <a href="#Page_245">245</a>, <a href="#Page_246">246</a></li> + <li>subsequent management of, <a href="#Page_247">247</a></li> + <li>damaged by failure to re-charter bank, <a href="#Page_259">259</a></li> + <li>in panic of 1815, <a href="#Page_263">263</a></li> + <li>declined by Gallatin in 1816, <a href="#Page_266">266</a>, <a href="#Page_330">330</a></li> + <li>in panic of 1837, <a href="#Page_272">272</a>-<a href="#Page_276">276</a></li> + <li>sub-treasury system invented, <a href="#Page_273">273</a></li> + <li>aids resumption, <a href="#Page_276">276</a></li> + <li>declined by Gallatin in 1843, <a href="#Page_278">278</a></li> + <li>absence of partisanship in Gallatin's appointments to, <a href="#Page_281">281</a>, <a href="#Page_282">282</a>, <a href="#Page_286">286</a>, <a href="#Page_287">287</a></li> + </ul></li> +<li>Treaty of Ghent, <a href="#Page_316">316</a>-<a href="#Page_325">325</a> See Diplomatic History.</li> +<li>Tripoli, war with, <a href="#Page_222">222</a>; + <ul class="IX"> + <li>tribute to, preferred by Gallatin to war with, <a href="#Page_284">284</a></li> + </ul></li> +<li>Trist, N. P., negotiates treaty of Guadalupe Hidalgo, <a href="#Page_352">352</a></li> +<li>Truxton, Captain, voted a medal by Congress, <a href="#Page_160">160</a></li> +<li>Turner, Professor, member of Ethnological Society, <a href="#Page_379">379</a></li> +<li>Tyler, John, as president, offers Treasury portfolio to Gallatin, <a href="#Page_278">278</a></li> +</ul> + +<ul class="IX"> +<li>University, National, proposed by Jefferson, <a href="#Page_291">291</a>; + <ul class="IX"> + <li>attempt to start one in New York, <a href="#Page_368">368</a>, <a href="#Page_369">369</a></li> + <li>success prevented by clerical influence, <a href="#Page_370">370</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Van Buren, Martin, told by Gallatin of willingness to accept French + <ul class="IX"> + <li>mission, <a href="#Page_349">349</a></li> + <li>manages caucus of Republican Congresssmen, <a href="#Page_357">357</a></li> + <li>letter of Gallatin to, withdrawing from nomination, <a href="#Page_358">358</a></li> + </ul></li> +<li>Van der Kemp, ----, Dutch commissioner to make commercial treaty, <a href="#Page_334">334</a></li> +<li>Verplanck, Gulian C., member of “The Club,” <a href="#Page_367">367</a></li> +<li>Virginia, claims of Savary against, <a href="#Page_19">19</a>; + <ul class="IX"> + <li>Gallatin's opinion of society in, <a href="#Page_24">24</a></li> + <li>movement in, to secure amendment of Constitution, <a href="#Page_36">36</a></li> + <li>disunion threats in, <a href="#Page_116">116</a></li> + <li>ready to attack Federalists by force in 1801, <a href="#Page_166">166</a></li> + </ul></li> +<li>Voltaire, friendship with Gallatin family, <a href="#Page_7">7</a>; + <ul class="IX"> + <li>writes verses for Madame Gallatin, <a href="#Page_7">7</a></li> + <li>influence over Albert Gallatin, <a href="#Page_7">7</a>, <a href="#Page_8">8</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>Wainwright, Rev. Dr., member of “The Club,” <a href="#Page_367">367</a></li> +<li>War of 1812, estimates of Gallatin as to cost of operations in, <a href="#Page_289">289</a>, <a href="#Page_290">290</a>; + <ul class="IX"> + <li>preparation for, advocated by Gallatin, <a href="#Page_292">292</a></li> + <li>events leading to, <a href="#Page_295">295</a></li> + <li>questions at issue in, <a href="#Page_305">305</a></li> + <li>English hopes in, <a href="#Page_313">313</a>, <a href="#Page_316">316</a></li> + <li>sack of Washington, <a href="#Page_320">320</a></li> + </ul></li> +<li>Ward, Samuel, member of “The Club,” <a href="#Page_367">367</a></li> +<li>Washington, Augustine, founder of Ohio Company, <a href="#Page_20">20</a></li> +<li>Washington, George, his military inactivity in 1780, <a href="#Page_12">12</a>; + <ul class="IX"> + <li>meets Gallatin in 1784, <a href="#Page_22">22</a></li> + <li>snubs him for forwardness, <a href="#Page_23">23</a></li> + <li>later wishes him to be his land agent, <a href="#Page_23">23</a></li> + <li>his election as president disconcerts anti-Federalists, <a href="#Page_40">40</a></li> + <li>unwilling to go to extremes against Whiskey Rebellion, <a href="#Page_54">54</a></li> + <li>issues proclamation, <a href="#Page_54">54</a></li> + <li>Randolph's opinion of his influence, <a href="#Page_77">77</a></li> + <li>combines conciliation with force, <a href="#Page_77">77</a></li> + <li>issues proclamation, calls out militia, and appoints commission to confer, <a href="#Page_77">77</a>, <a href="#Page_78">78</a></li> + <li>accompanies army as far as Bedford, <a href="#Page_88">88</a></li> + <li>refuses to stop march of troops, <a href="#Page_89">89</a></li> + <li>dissuades troops from violence, <a href="#Page_92">92</a></li> + <li>pardons convicted offenders, <a href="#Page_96">96</a></li> + <li>reconstructs his cabinet, <a href="#Page_97">97</a>, <a href="#Page_98">98</a>; his influence, <a href="#Page_102">102</a></li> + <li>convenes Senate to ratify Jay treaty, <a href="#Page_102">102</a></li> + <li>attacked by Bache, <a href="#Page_104">104</a></li> + <li>addresses Congress, <a href="#Page_104">104</a></li> + <li>his administration criticised in debate over reply in House, <a href="#Page_104">104</a>-<a href="#Page_106">106</a></li> + <li>refuses call of House for Jay treaty papers, <a href="#Page_114">114</a></li> + <li>refusal of House to adjourn on his birthday, <a href="#Page_126">126</a></li> + <li>obtains surrender of Western posts, <a href="#Page_128">128</a></li> + <li>issues Farewell Address, <a href="#Page_128">128</a></li> + <li>attacked by Giles, <a href="#Page_128">128</a></li> + <li>proposal of Gallatin concerning reply to his message, <a href="#Page_129">129</a></li> + <li>sends tricolor to Congress, <a href="#Page_130">130</a>, <a href="#Page_132">132</a></li> + <li>attends Congress as lieutenant-general, <a href="#Page_155">155</a></li> + <li>his death announced by Marshall, <a href="#Page_158">158</a></li> + <li>invites Wolcott to succeed Hamilton, <a href="#Page_176">176</a></li> + <li>Gallatin's opinion of his character, <a href="#Page_383">383</a>, <a href="#Page_384">384</a></li> + <li>and of his strong passions, 383 n.</li> + </ul></li> +<li>Washington, Lawrence, founder of Ohio Company, <a href="#Page_20">20</a></li> +<li>Washington city, removal of Congress to, <a href="#Page_161">161</a>, <a href="#Page_162">162</a>; + <ul class="IX"> + <li>sack of, by English, <a href="#Page_320">320</a></li> + </ul></li> +<li>Washington County, Pennsylvania, in Whiskey Insurrection, <a href="#Page_49">49</a>, <a href="#Page_50">50</a>, <a href="#Page_51">51</a>, <a href="#Page_70">70</a>, <a href="#Page_71">71</a>, <a href="#Page_78">78</a>, <a href="#Page_94">94</a>, <a href="#Page_96">96</a>; + <ul class="IX"> + <li>elects Gallatin to Congress, <a href="#Page_93">93</a>, <a href="#Page_127">127</a></li> + </ul></li> +<li>Wayne, Anthony, makes treaty with Indians, <a href="#Page_117">117</a></li> +<li>Webster, Daniel, his speech on northeastern boundary published by Gallatin, <a href="#Page_349">349</a>; + <ul class="IX"> + <li>his manner of negotiating with Ashburton, <a href="#Page_350">350</a></li> + </ul></li> +<li>Webster, Pelatiah, describes Gallatin at Philadelphia in 1783, <a href="#Page_19">19</a></li> +<li>Wellington, Lord, asked by cabinet to conquer a peace, <a href="#Page_322">322</a>; + <ul class="IX"> + <li>advises cabinet not to insist on cession of territory, <a href="#Page_322">322</a></li> + <li>expresses friendly feelings, <a href="#Page_335">335</a></li> + </ul></li> +<li>Wells, John, member of “The Club,” <a href="#Page_367">367</a></li> +<li>Westmoreland County, in Whiskey Insurrection, <a href="#Page_49">49</a>, <a href="#Page_51">51</a>, <a href="#Page_74">74</a>, <a href="#Page_78">78</a>, <a href="#Page_96">96</a></li> +<li>Wheaton, Henry, requests Gallatin to furnish Humboldt with data on gold in United States, <a href="#Page_381">381</a></li> +<li>Whiskey Insurrection, opposition to excise in Pennsylvania, <a href="#Page_48">48</a>, <a href="#Page_49">49</a>; + <ul class="IX"> + <li>reasons for opposition, <a href="#Page_49">49</a>, <a href="#Page_50">50</a></li> + <li>first meetings against excise in Washington County, <a href="#Page_50">50</a>, <a href="#Page_51">51</a></li> + <li>combined meeting of four counties at Pittsburgh, <a href="#Page_51">51</a></li> + <li>violence against inspectors, <a href="#Page_51">51</a></li> + <li>modification of law, <a href="#Page_52">52</a></li> + <li>second convention at Pittsburgh, <a href="#Page_52">52</a></li> + <li>resolutions against collectors, <a href="#Page_52">52</a>, <a href="#Page_53">53</a></li> + <li>petition to Congress, <a href="#Page_53">53</a></li> + <li>proclamation issued by Washington and cabinet, <a href="#Page_54">54</a></li> + <li>arrests and riots, <a href="#Page_55">55</a></li> + <li>attempts to serve writs, <a href="#Page_67">67</a>, <a href="#Page_68">68</a></li> + <li>rioting, burning of Marshall's house, <a href="#Page_68">68</a>, <a href="#Page_69">69</a></li> + <li>flight of officers, <a href="#Page_68">68</a></li> + <li>meetings of distillers, <a href="#Page_69">69</a></li> + <li>efforts of Gallatin and others to prevent violence, <a href="#Page_69">69</a>, <a href="#Page_70">70</a></li> + <li>stoppage of mails, <a href="#Page_69">69</a></li> + <li>call for meeting of militia, <a href="#Page_70">70</a></li> + <li>leaders of, <a href="#Page_70">70</a>, <a href="#Page_71">71</a></li> + <li>meeting of militia at Parkinson's Ferry, <a href="#Page_72">72</a>, <a href="#Page_73">73</a></li> + <li>estimates of numbers, <a href="#Page_72">72</a></li> + <li>violence of feeling, <a href="#Page_73">73</a>, <a href="#Page_74">74</a></li> + <li>renewed outrages, <a href="#Page_74">74</a></li> + <li>use of liberty poles, <a href="#Page_74">74</a></li> + <li>attitude of Gallatin toward, <a href="#Page_75">75</a>, <a href="#Page_76">76</a></li> + <li>plans of Washington and Hamilton to suppress, <a href="#Page_77">77</a></li> + <li>proclamation against carrying arms, <a href="#Page_77">77</a></li> + <li>commissioners appointed, <a href="#Page_77">77</a></li> + <li>convention of distillers at Parkinson's Ferry, <a href="#Page_78">78</a>, <a href="#Page_79">79</a></li> + <li>proposals to raise troops, <a href="#Page_79">79</a></li> + <li>efforts of moderates, <a href="#Page_80">80</a>, <a href="#Page_81">81</a></li> + <li>committee of sixty appointed, <a href="#Page_80">80</a></li> + <li>arrival of commissioners, their offer, <a href="#Page_81">81</a></li> + <li>conference of committee at Red Stone Old Fort, <a href="#Page_81">81</a>, <a href="#Page_82">82</a></li> + <li>vote to accept terms, <a href="#Page_83">83</a></li> + <li>influence of Gallatin, <a href="#Page_84">84</a></li> + <li>meetings for submission in counties, <a href="#Page_85">85</a></li> + <li>apparent failure of terms of amnesty, <a href="#Page_86">86</a></li> + <li>threats of secession, <a href="#Page_86">86</a></li> + <li>Hamilton writes “Tully” letter, <a href="#Page_87">87</a></li> + <li>report of commissioners, <a href="#Page_87">87</a></li> + <li>proclamation calls out troops, <a href="#Page_87">87</a></li> + <li>march of militia, <a href="#Page_88">88</a></li> + <li>committee of sixty passes conciliatory resolutions, <a href="#Page_88">88</a>, <a href="#Page_89">89</a></li> + <li>refusal of Washington to turn back, <a href="#Page_89">89</a></li> + <li>final meeting at Parkinson's Ferry votes entire submission, <a href="#Page_89">89</a></li> + <li>occupation of western counties by troops, <a href="#Page_89">89</a>, <a href="#Page_90">90</a></li> + <li>arrest of rebels, <a href="#Page_90">90</a>, <a href="#Page_91">91</a></li> + <li>journey of prisoners to Philadelphia, <a href="#Page_91">91</a>, <a href="#Page_92">92</a></li> + <li>end of disturbances, <a href="#Page_93">93</a></li> + <li>return of army, <a href="#Page_93">93</a></li> + <li>confession of Gallatin, <a href="#Page_94">94</a></li> + <li>trial of prisoners, <a href="#Page_96">96</a></li> + <li>its effect on Federalist party, <a href="#Page_101">101</a></li> + <li>Gallatin taunted with participation in, <a href="#Page_119">119</a>, <a href="#Page_124">124</a></li> + </ul></li> +<li>Wirt, William, letter of Jefferson to, <a href="#Page_298">298</a></li> +<li>Wolcott, Oliver, succeeds Hamilton in Treasury Department, <a href="#Page_97">97</a>; + <ul class="IX"> + <li>his situation deplored by Gallatin, <a href="#Page_125">125</a></li> + <li>complains to Hamilton of Republican opposition, <a href="#Page_126">126</a></li> + <li>complains of Gallatin's purpose to break down department, <a href="#Page_154">154</a></li> + <li>his career as Hamilton's successor, <a href="#Page_176">176</a>-<a href="#Page_178">178</a></li> + <li>his statement of a surplus denied by Gallatin, <a href="#Page_190">190</a>, <a href="#Page_191">191</a></li> + </ul></li> +<li>Woodbury, Levi, reports extinction of debt, <a href="#Page_270">270</a>, <a href="#Page_271">271</a>; + <ul class="IX"> + <li>then deplores its absence, <a href="#Page_271">271</a></li> + <li>alarmed at increase of circulation in 1836, <a href="#Page_272">272</a></li> + <li>begins sub-treasury system, <a href="#Page_273">273</a></li> + <li>promises to support resumption of payment by banks, <a href="#Page_275">275</a></li> + </ul></li> +</ul> + +<ul class="IX"> +<li>X Y Z dispatches, <a href="#Page_149">149</a></li> +</ul> + +<hr style="width: 65%;" /> + +<p style="text-align: center; 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You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: Albert Gallatin + American Statesmen Series, Vol. XIII + +Author: John Austin Stevens + +Release Date: March 22, 2007 [EBook #20873] + +Language: English + +Character set encoding: ASCII + +*** START OF THIS PROJECT GUTENBERG EBOOK ALBERT GALLATIN *** + + + + +Produced by Thomas Strong and the Online Distributed +Proofreading Team at https://www.pgdp.net (This file was +produced from images generously made available by The +Internet Archive/American Libraries.) + + + + + + +Standard Library Edition + +AMERICAN STATESMEN + +EDITED BY + +JOHN T. MORSE, JR. + +IN THIRTY-TWO VOLUMES VOL. XIII. + +THE JEFFERSONIAN DEMOCRACY + +ALBERT GALLATIN + +[Illustration: Albert Gallatin] + +American Statesmen + +STANDARD LIBRARY EDITION + +[Illustration: The Home of Albert Gallatin] + +HOUGHTON, MIFFLIN & CO. + +American Statesmen + +ALBERT GALLATIN + +BY + +JOHN AUSTIN STEVENS + +BOSTON AND NEW YORK +HOUGHTON, MIFFLIN AND COMPANY +The Riverside Press, Cambridge + +Copyright, 1883 and 1898, +BY HOUGHTON, MIFFLIN & CO. + +_All rights reserved._ + +PREFACE + + +Every generation demands that history shall be rewritten. This is not +alone because it requires that the work should be adapted to its own +point of view, but because it is instinctively seeking those lines which +connect the problems and lessons of the past with its own questions and +circumstances. If it were not for the existence of lines of this kind, +history might be entertaining, but would have little real value. The +more numerous they are between the present and any earlier period, the +more valuable is, for us, the history of that period. Such +considerations establish an especial interest just at present in the +life of Gallatin. + +The Monroe Doctrine has recently been the pivot of American +statesmanship. With that doctrine Mr. Gallatin had much to do, both as +minister to France and envoy to Great Britain. Indeed, in 1818, some +years before the declaration of that doctrine, when the Spanish colonies +of South America were in revolt, he declared that the United States +would not even aid France in a mediation. Later, in May, 1823, six +months before the famous message of President Monroe, Mr. Gallatin had +already uttered its idea; when about leaving Paris, on his return from +the French mission, he said to Chateaubriand, the French minister of +foreign affairs (May 13, 1823): "The United States would undoubtedly +preserve their neutrality, provided it were respected, and avoid any +interference with the politics of Europe.... On the other hand, they +would not suffer others to interfere against the emancipation of +America." With characteristic vanity Canning said that it was he himself +who "called the new world into existence to redress the balance of the +old." Yet precisely this had already for a long while been a cardinal +point of the policy of the United States. So early as 1808, Jefferson, +alluding to the disturbed condition of the Spanish colonies, said: "We +consider their interest and ours as the same, and that the object of +both must be to exclude all European influence in this hemisphere." + +Matters of equal interest are involved in the study of Mr. Gallatin's +actions and opinions in matters of finance. Every one knows that he +ranks among the distinguished financiers of the world, and problems +which he had to consider are still agitating the present generation. He +was opposed alike to a national debt and to paper money. Had the +metallic basis of the United States been adequate, he would have +accepted no other circulating medium, and would have consented to the +use of paper money only for purposes of exchange and remittance. In 1830 +he urged the restriction of paper money to notes of one hundred dollars +each, which were to be issued by the government. Obviously these must be +used chiefly for transmitting funds, and would be of little use for the +daily transactions of the people. Yet even this concession was due to +the fact that the United States was then a debtor country, and so late +as 1839, as Mr. Gallatin said, "specie was a foreign product." For +subsidiary money he favored silver coins at eighty-five per cent. of the +dollar value, a sufficient alloy to hold them in the country. Silver was +then the circulating medium of the world, the people's pocket money, and +gold was the basis and the solvent of foreign exchanges. + +Great interest attaches to the application of some other of Gallatin's +financial principles to more modern problems; and a careful study of his +papers may fairly enable us to form a few conclusions. It may be safely +said that he would not have favored a national bank currency based on +government bonds. This, however, would not have been because of any +objection to the currency itself, but because the scheme would insure +the continuance of a national debt. He was too practical, also, not to +see that the ultimate security is the faith of the government, and that +no filtering of that responsibility through private banks could do +otherwise than injure it. Further, it is reasonably safe to say that he +would favor the withdrawal both of national bank notes and of United +States notes, the greenbacks so-called; and that he would consent to the +use of paper only in the form of certificates directly representing the +precious metals, gold and silver; also that he would limit the use of +silver to its actual handling by the people in daily transactions. He +would feel safe to disregard the fluctuations of the intrinsic value of +silver, when used in this limited way as a subordinate currency, on the +ground that the stamp of the United States was sufficient for conferring +the needed value, when the obligation was only to maintain the parity, +not of the silver, but of the coin, with gold. He understood that, in +the case of a currency which is merely subordinate, parity arises from +the guaranty of the government, and not from the quality of the coin; +and that only such excess of any subordinate currency as is not needed +for use in daily affairs can be presented for redemption. This +principle, well understood by him, is recognized in European systems, +wherein the minimum of circulation is recognized as a maximum limit of +uncovered issues of paper. The circulation of silver, or of +certificates based upon it, comes within the same rule. + +At the time of the publication of this volume objection was taken to the +author's statement that, until the publication of Gallatin's writings, +his fame as a statesman and political leader was a mere tradition. Yet +in point of fact, not only is his name hardly mentioned by the early +biographers of Jefferson, Madison, and J. Q. Adams, but even by the +later writers in this very Series, his work, varied and important as it +was, has been given but scant notice. The historians of the United +States, and those who have made a specialty of the study of political +parties, have been alike indifferent or derelict in their investigations +to such a degree that it required months of original research in the +annals of Congress to ascertain Gallatin's actual relations towards the +Federalist party which he helped to overthrow, and towards the +Republican party which he did so much to found, and of which he became +the ablest champion, in Congress by debate, and in the cabinet by +administration. + +Invited by the publishers of the Statesmen Series to bring this study +"up to date," the author has found no important changes to make in his +work as he first prepared it. In the original investigation every source +of information was carefully explored, and no new sources have since +then been discovered. Mr. Gallatin's writings, carefully preserved in +originals and copies, and well arranged, supplied the details; while the +family traditions, with which the author was familiar, indicated the +objects to be obtained. But so wide was the general field of Mr. +Gallatin's career, so varied were his interests in all that pertained to +humanity, philanthropy, and science, and so extensive were his relations +with the leaders of European and American thought and action, that the +subject could only be treated on the broadest basis. With this apology +this study of one of the most interesting characters of American life is +again commended to the indulgence of the American people. + +NEWPORT, April, 1898. + +CONTENTS + +CHAP. PAGE + + I. EARLY LIFE 1 + + II. PENNSYLVANIA Legislature 32 + + III. UNITED STATES SENATE 56 + + IV. THE WHISKEY INSURRECTION 67 + + V. MEMBER OF CONGRESS 97 + + VI. SECRETARY OF THE TREASURY 170 + + VII. IN THE CABINET 279 + +VIII. IN DIPLOMACY 301 + + IX. CANDIDATE FOR THE VICE-PRESIDENCY 355 + + X. SOCIETY--LITERATURE--SCIENCE 361 + +INDEX 391 + + +ILLUSTRATIONS + +ALBERT GALLATIN _Frontispiece_ + +From the original painting by Gilbert Stuart, in the +possession of Frederic W. Stevens, Esq., New York, N. Y. + +Autograph from the Chamberlain collection, Boston +Public Library. + +The vignette of "Friendship Hill," Mr. Gallatin's +home at New Geneva, Pa., is from a photograph. + + Page + +ROBERT GOODLOE HARPER _facing_ 98 + +From a painting by St. Memin, in the possession of +Harper's granddaughter, Mrs. William C. Pennington, +Baltimore, Md. + +Autograph from a MS. in the New York Public +Library, Lenox Building. + +ALEXANDER J. DALLAS _facing_ 236 + +From the original painting by Gilbert Stuart, in the +possession of Mrs. W. H. Emory, Washington, D. C. + +Autograph from the Chamberlain collection, Boston +Public Library. + +JAMES A. BAYARD _facing_ 312 + +From a painting by Wertmueller, owned by the late +Thomas F. Bayard, Wilmington, Del. + +Autograph from the Chamberlain collection, Boston +Public Library. + +ALBERT GALLATIN + + + + +CHAPTER I + +EARLY LIFE + + +Of all European-born citizens who have risen to fame in the political +service of the United States, Albert Gallatin is the most distinguished. +His merit in legislation, administration, and diplomacy is generally +recognized, and he is venerated by men of science on both continents. +Not, however, until the publication of his writings was the extent of +his influence upon the political life and growth of the country other +than a vague tradition. Independence and nationality were achieved by +the Revolution, in which he bore a slight and unimportant part; his +place in history is not, therefore, among the founders of the Republic, +but foremost in the rank of those early American statesmen, to whom it +fell to interpret and administer the organic laws which the founders +declared and the people ratified in the Constitution of the United +States. A study of his life shows that, from the time of the peace until +his death, his influence, either by direct action or indirect counsel, +may be traced through the history of the country. + +The son of Jean Gallatin and his wife, Sophie Albertine Rollaz, he was +born in the city of Geneva on January 29, 1761, and was baptized by the +name of Abraham Alfonse Albert Gallatin. The name Abraham he received +from his grandfather, but it was early dropped, and he was always known +by his matronymic Albert. The Gallatin family held great influence in +the Swiss Republic, and from the organization of the State contributed +numerous members to its magistracy; others adopted the military +profession, and served after the manner of their country in the Swiss +contingents of foreign armies. The immediate relatives of Albert +Gallatin were concerned in trade. Abraham, his grandfather, and Jean, +his father, were partners. The latter dying in 1765, his widow assumed +his share in the business. She died in March, 1770, leaving two +children,--Albert, then nine years of age, and an invalid daughter who +died a few years later. The loss to the orphan boy was lessened, if not +compensated, by the care of a maiden lady--Mademoiselle Pictet--who had +taken him into her charge at his father's death. This lady, whose +affection never failed him, was the intimate friend of his mother as +well as a distant relative of his father. Young Gallatin remained in +this kind care until January, 1773, when he was sent to a +boarding-school, and in August, 1775, to the academy of Geneva, from +which he was graduated in May, 1779. The expenses of his education were +in great part met by the trustees of the Bourse Gallatin,--a sum left in +1699 by a member of the family, of which the income was to be applied to +its necessities. The course of study at the academy was confined to +Latin and Greek. These were taught, to use the words of Mr. Gallatin, +"Latin thoroughly, Greek much neglected." Fortunately his preliminary +home training had been careful, and he left the academy the first in his +class in mathematics, natural philosophy, and Latin translation. French, +a language in general use at Geneva, was of course familiar to him. +English he also studied. He is not credited with special proficiency in +history, but his teacher in this branch was Muller, the distinguished +historian, and the groundwork of his information was solid. No American +statesman has shown more accurate knowledge of the facts of history, or +a more profound insight into its philosophy, than Mr. Gallatin. + +Education, however, is not confined to instruction, nor is the influence +of an academy to be measured by the extent of its curriculum, or the +proficiency of its students, but rather by its general tone, moral and +intellectual. The Calvinism of Geneva, narrow in its religious sense, +was friendly to the spread of knowledge; and had this not been the case, +the side influences of Roman Catholicism on the one hand, and the +liberal spirit of the age on the other, would have tempered its +exclusive tendency. + +While the academy seems to have sent out few men of extraordinary +eminence, its influence upon society was happy. Geneva was the resort of +distinguished foreigners. Princes and nobles from Germany and the north +of Europe, lords and gentlemen from England, and numerous Americans went +thither to finish their education. Of these Mr. Gallatin has left +mention of Francis Kinloch and William Smith, who later represented +South Carolina in the Congress of the United States; Smith was +afterwards minister to Portugal; Colonel Laurens, son of the president +of Congress, and special envoy to France during the war of the American +Revolution; the two Penns, proprietors of Pennsylvania; Franklin Bache, +grandson of Dr. Franklin; and young Johannot, grandson of Dr. Cooper of +Boston. Yet no one of these followed the academic course. To use again +the words of Mr. Gallatin, "It was the Geneva society which they +cultivated, aided by private teachers in every branch, with whom Geneva +was abundantly supplied." "By that influence," he says, he was himself +"surrounded, and derived more benefit from that source than from +attendance on academical lectures." Considered in its broader sense, +education is quite as much a matter of association as of scholarly +acquirement. The influence of the companion is as strong and enduring as +that of the master. Of this truth the career of young Gallatin is a +notable example. During his academic course he formed ties of intimate +friendship with three of his associates. These were Henri Serre, Jean +Badollet, and Etienne Dumont. This attachment was maintained unimpaired +throughout their lives, notwithstanding the widely different stations +which they subsequently filled. Serre and Badollet are only remembered +from their connection with Gallatin. Dumont was of different mould. He +was the friend of Mirabeau, the disciple and translator of Bentham,--a +man of elegant acquirement, but, in the judgment of Gallatin, "without +original genius." De Lolme was in the class above Gallatin. He had such +facility in the acquisition of languages that he was able to write his +famous work on the English Constitution after the residence of a single +year in England. Pictet, Gallatin's relative, afterwards celebrated as a +naturalist, excelled all his fellows in physical science. + +During his last year at the academy Gallatin was engaged in the tuition +of a nephew of Mademoiselle Pictet, but the time soon arrived when he +felt called upon to choose a career. His state was one of comparative +dependence, and the small patrimony which he inherited would not pass to +his control until he should reach his twenty-fifth year,--the period +assigned for his majority. It would be hardly just to say that he was +ambitious. Personal distinction was never an active motor in his life. +Even his later honors, thick and fast though they fell, were rather +thrust upon than sought by him. But his nature was proud and sensitive, +and he chafed under personal control. The age was restless. The spirit +of philosophic inquiry, no longer confined within scholastic limits, was +spreading far and wide. From the banks of the Neva to the shores of the +Mediterranean, the people of Europe were uneasy and expectant. Men +everywhere felt that the social system was threatened with a cataclysm. +What would emerge from the general deluge none could foresee. Certainly, +the last remains of the old feudality would be engulfed forever. Nowhere +was this more thoroughly believed than at the home of Rousseau. Under +the shadow of the Alps, every breeze from which was free, the Genevese +philosopher had written his "Contrat social," and invited the rulers and +the ruled to a reorganization of their relations to each other and to +the world. But nowhere, also, was the conservative opposition to the new +theories more intense than here. + +The mind of young Gallatin was essentially philosophic. The studies in +which he excelled in early life were in this direction, and at no time +in his career did he display any emotional enthusiasm on subjects of +general concern. But, on the other hand, he was unflinching in his +adherence to abstract principle. Though not carried away by the +extravagance of Rousseau, he was thoroughly discontented with the +political state of Geneva. He was by early conviction a Democrat in the +broadest sense of the term. Indeed, it would be difficult to find a more +perfect example of what it was then the fashion to call a _citoyen du +monde_. His family seem, on the contrary, to have been always +conservative, and attached to the aristocratic and oligarchic system to +which they had, for centuries, owed their position and advancement. + +Abraham Gallatin, his grandfather, lived at Pregny on the northern shore +of the lake, in close neighborhood to Ferney, the retreat of Voltaire. +Susanne Vaudenet Gallatin, his grandmother, was a woman of the world, a +lady of strong character, and the period was one when the influence of +women was paramount in the affairs of men; among her friends she counted +Voltaire, with whom her husband and herself were on intimate relations, +and Frederick, Landgrave of Hesse-Cassel, with whom she corresponded. So +sincere was this latter attachment that the sovereign sent his portrait +to her in 1776, an honor which, at her instance, Voltaire acknowledged +in a verse characteristic of himself and of the time:-- + + "J'ai baise ce portrait charmant, + Je vous l'avourai sans mystere, + Mes filles en out fait autant, + Mais c'est un secret qu'il faut taire. + Vous trouverez bon qu'une mere + Vous parle un peu plus hardiment, + Et vous verrez qu'egalement, + En tous les temps vous savez plaire." + +At Pregny young Gallatin was the constant guest of his nearest relatives +on his father's side, and he was a frequent visitor at Ferney. Those +whose fortune it has been to sit at the feet of Mr. Gallatin himself, +in the serene atmosphere of his study, after his retirement from active +participation in public concerns, may well imagine the influence which +the rays of the prismatic character of Voltaire must have had upon the +philosophic and receptive mind of the young student. + +There was and still is a solidarity in European families which can +scarcely be said to have ever had a counterpart in those of England, and +of which hardly a vestige remains in American social life. The fate of +each member was a matter of interest to all, and the honor of the name +was of common concern. Among the Gallatins, the grandmother, Madame +Gallatin-Vaudenet, as she was called, appears to have been the +controlling spirit. To her the profession of the youthful scion of the +stock was a matter of family consequence, and she had already marked out +his future course. The Gallatins, as has been already stated, had +acquired honor in the military service of foreign princes. Her friend, +the Landgrave of Hesse, was engaged in supporting the uncertain fortunes +of the British army in America with a large military contingent, and she +had only to ask to obtain for her grandson the high commission of +lieutenant-colonel of one of the regiments of Hessian mercenaries. To +the offer made to young Gallatin, and urged with due authority, he +replied, that "he would never serve a tyrant;" a want of respect which +was answered by a cuff on the ear. This incident determined his career. +Whether it crystallized long-cherished fancies into sudden action, or +whether it was of itself the initial cause of his resolve, is now mere +matter of conjecture; probably the former. The three friends, Gallatin, +Badollet, and Serre seem to have amused their leisure in planning an +ideal existence in some wilderness. America offered a boundless field +for the realization of such dreams, and the spice of adventure could be +had for the seeking. Here was the forest primeval in its original +grandeur. Here the Indian roamed undisputed master; not the tutored +Huron of Voltaire's tale, but the savage of torch and tomahawk. The +continent was as yet unexplored. In uncertainty as to motives for man's +action the French magistrate always searches for the woman,--"cherchez +la femme!" One single allusion in a letter written to Badollet, in 1783, +shows that there was a woman in Gallatin's horoscope. Who she was, what +her relation to him, or what influence she had upon his actions, nowhere +appears. He only says that besides Mademoiselle Pictet there was one +friend, "une amie," at Geneva, from whom a permanent separation would be +hard. + +Confiding his purpose to his friend Serre, Gallatin easily persuaded +this ardent youth to join him in his venturesome journey, and on April +1, 1780, the two secretly left Geneva. It certainly was no burning +desire to aid the Americans in their struggle for independence, such as +had stirred the generous soul of Lafayette, that prompted this act. In +later life he repeatedly disclaimed any such motive. It was rather a +longing for personal independence, for freedom from the trammels of a +society in which he had little faith or interest. Nor were his political +opinions at this time matured. He had a just pride in the Swiss Republic +as a free State (Etat libre), and his personal bias was towards the +"Negatif" party, as those were called who maintained the authority of +the Upper Council (Petit Conseil) to reject the demands of the people. +To this oligarchic party his family belonged. In a letter written three +years later, he confesses that he was "Negatif" when he abandoned his +home, and conveys the idea that his emigration was an experiment, a +search for a system of government in accordance with his abstract +notions of natural justice and political right. To use his own words, he +came to America to "drink in a love for independence in the freest +country of the universe." But there was some method in this madness. The +rash scheme of emigration had a practical side; land speculation and +commerce were to be the foundation and support of the settlement in the +wilderness where they would realize their political Utopia. + +From Geneva the young adventurers hurried to Nantes, on the coast of +France, where Gallatin soon received letters from his family, who seem +to have neglected nothing that could contribute to their comfort or +advantage. Monsieur P. M. Gallatin, the guardian of Albert, a distant +relative in an elder branch of the family, addressed him a letter +which, in its moderation, dignity, and kindness, is a model of +well-tempered severity and reproach. It expressed the pain Mademoiselle +Pictet had felt at his unceremonious departure, and his own affliction +at the ingratitude of one to whom he had never refused a request. +Finally, as the trustee of his estate till his majority, the guardian +assures the errant youth that he will aid him with pecuniary resources +as far as possible, without infringing upon the capital, and within the +sworn obligation of his trust. Letters of recommendation to +distinguished Americans were also forwarded, and in these it is found, +to the high credit of the family, that no distinction was made between +the two young men, although Serre seems to have been considered as the +originator of the bold move. The intervention of the Duke de la +Rochefoucauld d'Enville was solicited, and a letter was obtained by him +from Benjamin Franklin--then American minister at the Court of +Versailles--to his son-in-law, Richard Bache. Lady Juliana Penn wrote in +their behalf to John Penn at Philadelphia, and Mademoiselle Pictet to +Colonel Kinloch, member of the Continental Congress from South Carolina. +Thus supported in their undertaking the youthful travelers sailed from +L'Orient on May 27, in an American vessel, the Kattie, Captain Loring. +Of the sum which Gallatin, who supplied the capital for the expedition, +brought from Geneva, one half had been expended in their land journey +and the payment of the passages to Boston; one half, eighty louis +d'or--the equivalent of four hundred silver dollars--remained, part of +which they invested in tea. Reaching the American coast in a fog, or bad +weather, they were landed at Cape Ann on July 14. From Gloucester they +rode the next day to Boston on horseback, a distance of thirty miles. +Here they put up at a French cafe, "The Sign of the Alliance," in Fore +Street, kept by one Tahon, and began to consider what step they should +next take in the new world. + +The prospects were not encouraging; the military fortunes of the +struggling nation were never at a lower ebb than during the summer which +intervened between the disaster of Camden and the discovery of Arnold's +treason. Washington's army lay at New Windsor in enforced inactivity; +enlistments were few, and the currency was almost worthless. Such was +the stagnation in trade, that the young strangers found it extremely +difficult to dispose of their little venture in tea. Two months were +passed at the cafe, in waiting for an opportunity to go to Philadelphia, +where Congress was in session, and where they expected to find the +influential persons to whom they were accredited; also letters from +Geneva. But this journey was no easy matter. The usual routes of travel +were interrupted. New York was the fortified headquarters of the British +army, and the Middle States were only to be reached by a detour through +the American lines above the Highlands and behind the Jersey Hills. + +The homesick youths found little to amuse or interest them in Boston, +and grew very weary of its monotonous life and Puritanic tone. They +missed the public amusements to which they were accustomed in their own +country, and complained of the superstitious observance of Sunday, when +"singing, fiddling, card-playing and bowling were forbidden." Foreigners +were not welcome guests in this town of prejudice. The sailors of the +French fleet had already been the cause of one riot. Gallatin's letters +show that this aversion was fully reciprocated by him. + +The neighboring country had some points of interest. No Swiss ever saw a +hill without an intense desire to get to its top. They soon felt the +magnetic attraction of the Blue Hills of Milton, and, descrying from +their summit the distant mountains north of Worcester, made a pedestrian +excursion thither the following day. Mr. Gallatin was wont to relate +with glee an incident of this trip, which Mr. John Russell Bartlett +repeats in his "Reminiscences." + + "The tavern at which he stopped on his journey was kept by a man + who partook in a considerable degree of the curiosity even + now-a-days manifested by some landlords in the back parts of New + England to know the whole history of their guests. Noticing Mr. + Gallatin's French accent he said, 'Just from France, eh! You are a + Frenchman, I suppose.' 'No!' said Mr. Gallatin, 'I am not from + France.' 'You can't be from England, I am sure?' 'No!' was the + reply. 'From Spain?' 'No!' 'From Germany?' 'No!' 'Well, where on + earth are you from then, or what are you?' eagerly asked the + inquisitive landlord. 'I am a Swiss,' replied Mr. Gallatin. 'Swiss, + Swiss, Swiss!' exclaimed the landlord, in astonishment. 'Which of + the ten tribes are the Swiss?'" + +Nor was this an unnatural remark. At this time Mr. Gallatin did not +speak English with facility, and indeed was never free from a foreign +accent. + +At the little cafe they met a Swiss woman, the wife of a Genevan, one De +Lesdernier, who had been for thirty years established in Nova Scotia, +but, becoming compromised in the attempt to revolutionize the colony, +was compelled to fly to New England, and had settled at Machias, on the +northeastern extremity of the Maine frontier. Tempted by her account of +this region, and perhaps making a virtue of necessity, Gallatin and +Serre bartered their tea for rum, sugar, and tobacco, and, investing the +remainder of their petty capital in similar merchandise, they embarked +October 1, 1780, upon a small coasting vessel, which, after a long and +somewhat perilous passage, reached the mouth of the Machias River on the +15th of the same month. Machias was then a little settlement five miles +from the mouth of the stream of the same name. It consisted of about +twenty houses and a small fortification, mounting seven guns and +garrisoned by fifteen or twenty men. The young travelers were warmly +received by the son of Lesdernier, and made their home under his roof. +This seems to have been one of the four or five log houses in a large +clearing near the fort. Gallatin attempted to settle a lot of land, and +the meadow where he cut the hay with his own hands is still pointed out. +This is Frost's meadow in Perry, not far from the site of the Indian +village. A single cow was the beginning of a farm, but the main +occupation of the young men was woodcutting. No record remains of the +result of the merchandise venture. The trade of Machias was wholly in +fish, lumber, and furs, which, there being no money, the settlers were +ready enough to barter for West India goods. But the outlet for the +product of the country was, in its unsettled condition, uncertain and +precarious, and the young traders were no better off than before. One +transaction only is remembered, the advance by Gallatin to the garrison +of supplies to the value of four hundred dollars; for this he took a +draft on the state treasury of Massachusetts, which, there being no +funds for its payment, he sold at one fourth of its face value. + +The life, rude as it was, was not without its charms. Serre seems to +have abandoned himself to its fascination without a regret. His +descriptive letters to Badollet read like the "Idylls of a Faun." Those +of Gallatin, though more tempered in tone, reveal quiet content with the +simple life and a thorough enjoyment of nature in its original wildness. +In the summer they followed the tracks of the moose and deer through the +primitive forests, and explored the streams and lakes in the light +birch canoe, with a woodsman or savage for their guide. In the winter +they made long journeys over land and water on snowshoes or on skates, +occasionally visiting the villages of the Indians, with whom the +Lesderniers were on the best of terms, studying their habits and +witnessing their feasts. Occasional expeditions of a different nature +gave zest and excitement to this rustic life. These occurred when alarms +of English invasion reached the settlement, and volunteers marched to +the defence of the frontier. Twice Gallatin accompanied such parties to +Passamaquoddy, and once, in November, 1780, was left for a time in +command of a small earthwork and a temporary garrison of whites and +Indians at that place. At Machias Gallatin made one acquaintance which +greatly interested him, that of La Perouse, the famous navigator. He was +then in command of the Amazone frigate, one of the French squadron on +the American coast, and had in convoy a fleet of fishing vessels on +their way to the Newfoundland banks. Gallatin had an intense fondness +for geography, and was delighted with La Perouse's narrative of his +visit to Hudson's Bay, and of his discovery there (at Fort Albany, which +he captured) of the manuscript journal of Samuel Hearne, who some years +before had made a voyage to the Arctic regions in search of a northwest +passage. Gallatin and La Perouse met subsequently in Boston. + +The winter of 1780-81 was passed in the cabin of the Lesderniers. The +excessive cold does not seem to have chilled Serre's enthusiasm. Like +the faun of Hawthorne's mythical tale, he loved Nature in all her moods; +but Gallatin appears to have wearied of the confinement and of his +uncongenial companions. The trading experiment was abandoned in the +autumn, and with some experience, but a reduced purse, the friends +returned in October to Boston, where Gallatin set to work to support +himself by giving lessons in the French language. What success he met +with at first is not known, though the visits of the French fleet and +the presence of its officers may have awakened some interest in their +language. However this may be, in December Gallatin wrote to his good +friend, Mademoiselle Pictet, a frank account of his embarrassments. +Before it reached her, she had already, with her wonted forethought, +anticipated his difficulties by providing for a payment of money to him +wherever he might be, and had also secured for him the interest of Dr. +Samuel Cooper, whose grandson, young Johannot, was then at school in +Geneva. Dr. Cooper was one of the most distinguished of the patriots in +Boston, and no better influence could have been invoked than his. In +July, 1782, by a formal vote of the President and Fellows of Harvard +College, Mr. Gallatin was permitted to teach the French language. About +seventy of the students availed themselves of the privilege. Mr. +Gallatin received about three hundred dollars in compensation. In this +occupation he remained at Cambridge for about a year, at the expiration +of which he took advantage of the close of the academic course to +withdraw from his charge, receiving at his departure a certificate from +the Faculty that he had acquitted himself in his department with great +reputation. + +The war was over, the army of the United States was disbanded, and the +country was preparing for the new order which the peace would introduce +into the habits and occupations of the people. The long-sought +opportunity at last presented itself, and Mr. Gallatin at once embraced +it. He left Boston without regret. He had done his duty faithfully, and +secured the approbation and esteem of all with whom he had come in +contact, but there is no evidence that he cared for or sought social +relations either in the city or at the college. Journeying southward he +passed through Providence, where he took sail for New York. Stopping for +an hour at Newport for dinner, he reached New York on July 21, 1783. The +same day the frigate Mercury arrived from England with news of the +signature of the definitive treaty of peace. He was delighted with the +beauty of the country-seats above the city, the vast port with its +abundant shipping, and with the prospect of a theatrical entertainment. +The British soldiers and sailors, who were still in possession, he found +rude and insolent, but the returning refugees civil and honest people. +At Boston Gallatin made the acquaintance of a French gentleman, one +Savary de Valcoulon, who had crossed the Atlantic to prosecute in person +certain claims against the State of Virginia for advances made by his +house in Lyons during the war. He accompanied Gallatin to New York, and +together they traveled to Philadelphia; Savary, who spoke no English, +gladly attaching to himself as his companion a young man of the ability +and character of Gallatin. + +At Philadelphia Gallatin was soon after joined by Serre, who had +remained behind, engaged also in giving instruction. The meeting at +Philadelphia seems to have been the occasion for the dissolution of a +partnership in which Gallatin had placed his money, and Serre his +enthusiasm and personal charm. A settlement was made; Serre giving his +note to Gallatin for the sum of six hundred dollars,--one half of their +joint expenses for three years,--an obligation which was repaid more +than half a century later by his sister. Serre then joined a +fellow-countryman and went to Jamaica, where he died in 1784. At +Philadelphia Gallatin and Savary lodged in a house kept by one Mary +Lynn. Pelatiah Webster, the political economist, who owned the house, +was also a boarder. Later he said of his fellow-lodgers that "they were +well-bred gentlemen who passed their time conversing in French." +Gallatin, at the end of his resources, gladly acceded to Savary's +request to accompany him to Richmond. + +Whatever hesitation Gallatin may have entertained as to his definitive +expatriation was entirely set at rest by the news of strife between the +rival factions in Geneva and the interposition of armed force by the +neighboring governments. This interference turned the scale against the +liberal party. Mademoiselle Pictet was the only link which bound him to +his family. For his ingratitude to her he constantly reproached himself. +He still styled himself a citizen of Geneva, but this was only as a +matter of convenience and security to his correspondence. His +determination to make America his home was now fixed. The lands on the +banks of the Ohio were then considered the most fertile in America,--the +best for farming purposes, the cultivation of grain, and the raising of +cattle. The first settlement in this region was made by the Ohio +Company, an association formed in Virginia and London, about the middle +of the century, by Thomas Lee, together with Lawrence and Augustine, +brothers of George Washington. The lands lay on the south side of the +Ohio, between the Monongahela and Kanawha rivers. These lands were known +as "Washington's bottom lands." In this neighborhood Gallatin determined +to purchase two or three thousand acres, and prepare for that ideal +country home which had been the dream of his college days. Land here was +worth from thirty cents to four dollars an acre. His first purchase was +about one thousand acres, for which he paid one hundred pounds, +Virginia currency. Land speculation was the fever of the time. Savary +was early affected by it, and before the new friends left Philadelphia +for Richmond he bought warrants for one hundred and twenty thousand +acres in Virginia, in Monongalia County, between the Great and Little +Kanawha rivers, and interested Gallatin to the extent of one quarter in +the purchase. Soon after the completion of this transaction the sale of +some small portions reimbursed them for three fourths of the original +cost. This was the first time when, and Savary was the first person to +whom, Gallatin was willing to incur a pecuniary obligation. Throughout +his life he had an aversion to debt; small or large, private or public. +It was arranged that Gallatin's part of the purchase money was not to be +paid until his majority,--January 29, 1786,--but in the meanwhile he +was, in lieu of interest money, to give his services in personal +superintendence. Later Savary increased Gallatin's interest to one half. +Soon after these plans were completed, Savary and Gallatin moved to +Richmond, where they made their residence. + +In February, 1784, Gallatin returned to Philadelphia, perfected the +arrangements for his expedition, and in March crossed the mountains, +and, with his exploring party, passed down the Ohio River to Monongalia +County in Virginia. The superior advantages of the country north of the +Virginia line determined him to establish his headquarters there. He +selected the farm of Thomas Clare, at the junction of the Monongahela +River and George's Creek. This was in Fayette County, Pennsylvania, +about four miles north of the Virginia line. Here he built a log hut, +opened a country store, and remained till the close of the year. It was +while thus engaged at George's Creek, in September of the year 1784, +that Gallatin first met General Washington, who was examining the +country, in which he had large landed interests, to select a route for a +road across the Alleghanies. The story of the interview was first made +public by Mr. John Russell Bartlett, who had it from the lips of Mr. +Gallatin. The version of the late Hon. William Beach Lawrence, in a +paper prepared for the New York Historical Society, differs slightly in +immaterial points. Mr. Lawrence says:-- + + "Among the incidents connected with his (Mr. Gallatin's) earliest + explorations was an interview with General Washington, which he + repeatedly recounted to me. He had previously observed that of all + the inaccessible men he had ever seen, General Washington was the + most so. And this remark he made late in life, after having been + conversant with most of the sovereigns of Europe and their prime + ministers. He said, in connection with his office, he had a cot-bed + in the office of the surveyor of the district when Washington, who + had lands in the neighborhood, and was desirous of effecting + communication between the rivers, came there. Mr. Gallatin's bed + was given up to him,--Gallatin lying on the floor, immediately + below the table at which Washington was writing. Washington was + endeavoring to reduce to paper the calculations of the day. + Gallatin, hearing the statement, came at once to the conclusion, + and, after waiting some time, he himself gave the answer, which + drew from Washington such a look as he never experienced before or + since. On arriving by a slow process at his conclusion, Washington + turned to Gallatin and said, 'You are right, young man.'" + +The points of difference between the two accounts of this interview are +of little importance. The look which Washington is said to have given +Mr. Gallatin has its counterpart in that with which he is also said to +have turned upon Gouverneur Morris, when accosted by him familiarly with +a touch on the shoulder. Bartlett, in his recollection of the anecdote, +adds that Washington, about this period, inquired after the forward +young man, and urged him to become his land agent,--an offer which +Gallatin declined. + +The winter of 1784-85 was passed in Richmond, in the society of which +town Mr. Gallatin began to find a relief and pleasure he had not yet +experienced in America. At this period the Virginia capital was the +gayest city in the Union, and famous for its abundant hospitality, +rather facile manners, and the liberal tendency of its religious +thought. Gallatin brought no prudishness and no orthodoxy in his +Genevese baggage. One of the last acts of his life was to recognize in +graceful and touching words the kindness he then met with:-- + + "I was received with that old proverbial Virginia hospitality to + which I know no parallel anywhere within the circle of my travels. + It was not hospitality only that was shown to me. I do not know how + it came to pass, but every one with whom I became acquainted + appeared to take an interest in the young stranger. I was only the + interpreter of a gentleman, the agent of a foreign house, that had + a large claim for advances to the State, and this made me known to + all the officers of government, and some of the most prominent + members of the Legislature. It gave me the first opportunity of + showing some symptoms of talent, even as a speaker, of which I was + not myself aware. Every one encouraged me, and was disposed to + promote my success in life. To name all those from whom I received + offers of service would be to name all the most distinguished + residents at that time in Richmond." + +In the spring of 1785, fortified with a certificate from Governor +Patrick Henry, commending him to the county surveyor, and intrusted by +Henry with the duty of locating two thousand acres of lands in the +western country for a third party, he set out from Richmond, on March +31, alone, on horseback. Following the course of the James River he +crossed the Blue Ridge at the Peaks of Otter, and reached Greenbrier +Court House on April 18. On the 29th he arrived at Clare's, on George's +Creek, where he was joined by Savary. Their surveying operations were +soon begun, each taking a separate course. An Indian rising broke up the +operations of Savary, and both parties returned to Clare's. Gallatin +appeared before the court of Monongalia County, at its October term, and +took the "oath of allegiance and fidelity to the Commonwealth of +Virginia." Clare's, his actual residence, was north of the Virginia +line, but his affections were with the old Dominion. In November the +partners hired from Clare a house at George's Creek, in Springfield +township, and established their residence, after which they returned to +Richmond by way of Cumberland and the Potomac. In February, 1786, +Gallatin made his permanent abode at his new home. + +Mention has been made of the intimacy of the young emigrants with Jean +Badollet, a college companion. When they left Geneva he was engaged in +the study of theology, and was now a teacher. He was included in the +original plan of emigration, and the first letters of both Gallatin and +Serre, who had for him an equal attachment, were to him, and year by +year, through all the vicissitudes of their fortune, they kept him +carefully informed of their movements and projects. For two years after +their departure no word was received from him. At last, spurred by the +sharp reproaches of Serre, he broke silence. In a letter written in +March, 1783, informing Gallatin of the troubles in Switzerland, he +excused himself on the plea that their common friend, Dumont, retained +him at Geneva. In answer, Gallatin opened his plans of western +settlement, which included the employment of his fortune in the +establishment of a number of families upon his lands. He suggested to +Badollet to bring with him the little money he had, to which enough +would be added to establish him independently. Dumont was invited to +accompany him. But with a prudence which shows that his previous +experience had not been thrown away upon him, Gallatin recommends his +friend not to start at once, but to hold himself ready for the next, or, +at the latest, the year succeeding, at the same time suggesting the idea +of a general emigration of such Swiss malcontents as were small +capitalists and farmers; that of manufacturers and workmen he +discouraged. It was not, however, until the spring of 1785, on the eve +of leaving Richmond with some families which he had engaged to establish +on his lands, that he felt justified in asking his old friend to cross +the seas and share his lot. This invitation was accepted, and Badollet +joined him at George's Creek. + +The settlement beginning to spread, Gallatin bought another farm higher +up the river, to which he gave the name of Friendship Hill. Here he +later made his home. + +The western part of Pennsylvania, embracing the area which stretches +from the Alleghany Mountains to Lake Erie, is celebrated for the wild, +picturesque beauty of its scenery. Among its wooded hills the head +waters of the Ohio have their source. At Fort Duquesne, or Pittsburgh, +where the river takes a sudden northerly bend before finally settling in +swelling volume on its southwesterly course to the Mississippi, the +Monongahela adds its mountain current, which separates in its entire +course from the Virginia line the two counties of Fayette and +Washington. The Monongahela takes its rise in Monongalia County, +Virginia, and flows to the northward. Friendship Hill is one of the +bluffs on the right bank of the river, and faces the Laurel Ridge to the +eastward. Braddock's Road, now the National Road, crosses the mountains, +passing through Uniontown and Red Stone Old Fort (Brownsville), on its +course to Pittsburgh. The county seat of Fayette is the borough of Union +or Uniontown. Gallatin's log cabin, the beginning of New Geneva, was on +the right bank of the Monongahela, about twelve miles to the westward of +the county seat. Opposite, on the other side of the river, in Washington +County, was Greensburg, where his friend Badollet was later established. + +Again for a long period Gallatin left his family without any word +whatever. His most indulgent friend, Mademoiselle Pictet, could hardly +excuse his silence, and did not hesitate to charge that it was due to +misfortunes which his pride prompted him to conceal. In the early days +of 1786 a rumor of his death reached Geneva, and greatly alarmed his +family. Mr. Jefferson, then minister at Paris, wrote to Mr. Jay for +information. This was Jefferson's first knowledge of the existence of +the young man who was to become his political associate, his philosophic +companion, and his truest friend. Meanwhile Gallatin had attained his +twenty-fifth year and his majority. His family were no longer left in +doubt as to his existence, and in response to his letters drafts were at +once remitted to him for the sum of five thousand dollars, through the +banking-house of Robert Morris. This was, of course, immediately applied +to his western experiment. The business of the partnership now called +for his constant attention. It required the exercise of a great variety +of mental powers, a cool and discriminating judgment, combined with an +incessant attention to details. Nature, under such circumstances, is not +so attractive as she appears in youthful dreams; admirable in her +original garb, she is annoying and obstinate when disturbed. The view of +country which Friendship Hill commands is said to rival Switzerland in +its picturesque beauty, but years later, when the romance of the +Monongahela hills had faded in the actualities of life, Gallatin wrote +of it that "he did not know in the United States any spot which afforded +less means to earn a bare subsistence for those who could not live by +manual labor." + +Gallatin has been blamed for "taking life awry and throwing away the +advantages of education, social position, and natural intelligence," by +his removal to the frontier, and his career compared with that of +Hamilton and Dallas, who, like him, foreign born, rose to eminence in +politics, and became secretaries of the treasury of the United States. +But both of these were of English-speaking races. No foreigner of any +other race ever obtained such distinction in American politics as Mr. +Gallatin, and he only because he was the choice of a constituency, to +every member of which he was personally known. It is questionable +whether in any other condition of society he could have secured +advancement by election--the true source of political power in all +democracies. John Marshall, afterwards Chief Justice, recognized +Gallatin's talent soon after his arrival in Richmond, offered him a +place in his office without a fee, and assured him of future distinction +in the profession of the law; but Patrick Henry was the more sagacious +counselor; he advised Gallatin to go to the West, and predicted his +success as a statesman. Modest as the beginning seemed in the country he +had chosen, it was nevertheless a start in the right direction, as the +future showed. It was in no sense a mistake. + +Neither did the affairs of the wilderness wholly debar intercourse with +the civilized world. Visiting Richmond every winter, he gradually +extended the circle of his acquaintance, and increased his personal +influence; he also occasionally passed a few weeks at Philadelphia. Two +visits to Maine are recorded in his diary, but whether they were of +pleasure merely does not appear. One was in 1788, in midwinter, by stage +and sleigh. On this excursion he descended the Androscoggin and crossed +Merrymeeting Bay on the ice, returning by the same route in a snowstorm, +which concealed the banks on either side of the river, so that he +governed his course by the direction of the wind. With the intellect of +a prime minister he had the constitution of a pioneer. On one of these +occasions he intended to visit his old friends and hosts, the +Lesderniers, but the difficulty of finding a conveyance, and the rumor +that the old gentleman was away from home, interfered with his purpose. +He remembered their kindness, and later attempted to obtain pensions for +them from the United States government. + +But the time now arrived when the current of his domestic life was +permanently diverted, and set in other channels. In May, 1789, he +married Sophie Allegre, the daughter of William Allegre of a French +Protestant family living at Richmond. The father was dead, and the +mother took lodgers, of whom Gallatin was one. For more than a year he +had addressed her and secured her affections. Her mother now refused her +consent, and no choice was left to the young lovers but to marry without +it. Little is known of this short but touching episode in Mr. Gallatin's +life. The young lady was warmly attached to him, and the letter written +to her mother asking forgiveness for her marriage is charmingly +expressed and full of feeling. They passed a few happy months at +Friendship Hill, when suddenly she died. From this time Mr. Gallatin +lost all heart in the western venture, and his most earnest wish was to +turn his back forever upon Fayette County. In his suffering he would +have returned to Geneva to Mademoiselle Pictet, could he have sold his +Virginia lands. But this had become impossible at any price, and he had +no other pecuniary resource but the generosity of his family. + +Meanwhile the revolution had broken out in France. The rights of man had +been proclaimed on the Champ de Mars. All Europe was uneasy and alarmed, +and nowhere offered a propitious field for peaceful labor. But Gallatin +did not long need other distraction than he was to find at home. + + + + +CHAPTER II + +PENNSYLVANIA LEGISLATURE + + +Political revolutions are the opportunity of youth. In England, Pitt and +Fox; in America, Hamilton and Gouverneur Morris; in Europe, Napoleon and +Pozzo di Borgo, before they reached their thirtieth year, helped to +shape the political destiny of nations. The early maturity of Gallatin +was no less remarkable. In his voluminous correspondence there is no +trace of youth. At nineteen his habits of thought were already formed, +and his moral and intellectual tendencies were clearly marked in his +character, and understood by himself. His tastes also were already +developed. His life, thereafter, was in every sense a growth. The germs +of every excellence, which came to full fruition in his subsequent +career, may be traced in the preferences of his academic days. From +youth to age he was consistent with himself. His mind was of that rare +and original order which, reasoning out its own conclusions, seldom has +cause to change. + +His political opinions were early formed. A letter written by him in +October, 1783, before he had completed his twenty-third year, shows the +maturity of his intellect, and his analytic habit of thought. An extract +gives the nature of the reasons which finally determined him to make his +home in America:-- + + "This is what by degrees greatly influenced my judgment. After my + arrival in this country I was early convinced, upon a comparison of + American governments with that of Geneva, that the latter is + founded on false principles; that the judicial power, in civil as + well as criminal cases, the executive power wholly, and two thirds + of the legislative power being lodged in two bodies which are + almost self-made, and the members of which are chosen for life,--it + is hardly possible but that this formidable aristocracy should, + sooner or later, destroy the equilibrium which it was supposed + could be maintained at Geneva." + +The period from the peace of 1783 to the adoption of the federal +Constitution in 1787 was one of political excitement. The utter failure +of the old Confederation to serve the purposes of national defense and +safety for which it was framed had been painfully felt during the war. +Independence had been achieved under it rather than by it, the patriotic +action of some of the States supplying the deficiencies of others less +able or less willing. By the radical inefficiency of the Confederation +the war had been protracted, its success repeatedly imperiled, and, at +its close, the results gained by it were constantly menaced. The more +perfect union which was the outcome of the deliberations of the federal +convention was therefore joyfully accepted by the people at large. +Indeed, it was popular pressure, and not the arguments of its advocates, +that finally overcame the formidable opposition in and out of the +convention to the Constitution. No written record remains of Mr. +Gallatin's course during the sessions of the federal convention. He was +not a member of the body, nor is his name connected with any public act +having any bearing upon its deliberations. Of the direction of his +influence, however, there can be no doubt. He had an abiding distrust of +strong government,--a dread of the ambitions of men. Precisely what form +he would have substituted for the legislative and executive system +adopted nowhere appears in his writings, but certainly neither president +nor senate would have been included. They bore too close a resemblance +to king and lords to win his approval, no matter how restricted their +powers. He would evidently have leaned to a single house, with a +temporary executive directly appointed by itself; or, if elected by the +people, then for a short term of office, without renewal; and he would +have reduced its legislative powers to the narrowest possible limit. The +best government he held to be that which governs least; and many of the +ablest of that incomparable body of men who welded this Union held these +views. But the yearning of the people was in the other direction. They +felt the need of government. They wanted the protection of a strong arm. +It must not be forgotten that the thirteen colonies which declared +their independence in 1776 were all seaboard communities, each with its +port. They were all trading communities. The East, with its fisheries +and timber; the Middle States, with their agricultural products and +peltries; the South, with its tobacco; each saw, in that freedom from +the restrictions of the English navigation laws which the treaty of +peace secured, the promise of a boundless commerce. To protect commerce +there must be a national power somewhere. Since the peace the government +had gained neither the affection of its own citizens nor the respect of +foreign powers. + +The federal Constitution was adopted September 17, 1787. The first State +to summon a convention of ratification was Pennsylvania. No one of the +thirteen original States was more directly interested than herself. The +centre of population lay somewhere in her limits, and there was +reasonable ground for hope that Philadelphia would become once more the +seat of government. The delegates met at Philadelphia on November 2. An +opposition declared itself at the beginning of the proceedings. +Regardless of the popular impatience, the majority allowed full scope to +adverse argument, and it was not until December 12 that the final vote +was taken and the Constitution ratified, without recommendations, by a +majority of two to one. In this body Fayette County was represented by +Nicholas Breading and John Smilie. The latter gentleman, of Scotch-Irish +birth, an adroit debater, led the opposition. In the course of his +criticisms he enunciated the doctrines which were soon to become a party +cry; the danger of the Constitution "in inviting rather than guarding +against the approaches of tyranny;" "its tendency to a consolidation, +not a confederation, of the States." Mr. Gallatin does not appear to +have sought to be a delegate to this body, but his hand may be traced +through the speeches of Smilie in the precision with which the +principles of the opposition were formulated and declared; and his +subsequent course plainly indicates that his influence was exerted in +the interest of the dissatisfied minority. The ratification was received +by the people with intense satisfaction, but the delay in debate lost +the State the honor of precedence in the honorable vote of +acquiescence,--the Delaware convention having taken the lead by a +unanimous vote. For the moment the Pennsylvania Anti-Federalists clung +to the hope that the Constitution might yet fail to receive the assent +of the required number of States, but as one after another fell into +line, this hope vanished. + +One bold expedient remained. The ratification of some of the States was +coupled with the recommendation of certain amendments. Massachusetts led +the way in this, Virginia followed, and New York, which, in the language +of the day, became the eleventh pillar of the federal edifice, on July +26, 1788, accompanied her ratification with a circular letter to the +governors of all the States, recommending that a general convention be +called.[1] + +The argument taken in this letter was the only one which had any chance +of commending itself to popular favor. It was in these words: "that the +apprehension and discontents which the articles occasion cannot be +removed or allayed unless an act to provide for the calling of a new +convention be among the first that shall be passed by the next +Congress." This document, made public at once, encouraged the +Pennsylvania Anti-Federalists to a last effort to bring about a new +convention, to undo or radically alter the work of the old. A conference +held at Harrisburg, on September 3, 1788, was participated in by +thirty-three gentlemen, from various sections of the State, who +assembled in response to the call of a circular letter which originated +in the county of Cumberland in the month of August. The city of +Philadelphia and thirteen counties were represented; six of the +dissenting members of the late convention were present, among whom was +Smilie. He and Gallatin represented the county of Fayette. + +Smilie, Gallatin's earliest political friend, was born in 1742, and was +therefore about twenty years his senior. He came to the United States in +youth, and had grown up in the section he now represented. His +popularity is shown by his service in the state legislature, and during +twelve years in Congress as representative or as senator. In any +estimate of Mr. Gallatin, this early influence must be taken into +account. The friendship thus formed continued until Smilie's death in +1816. From the adviser he became the ardent supporter of Mr. Gallatin. + +Blair McClanachan, of Philadelphia County, was elected chairman of the +conference. The result of this deliberation was a report in the form of +a series of resolutions, of which two drafts, both in Mr. Gallatin's +handwriting, are among his papers now in the keeping of the New York +Historical Society. The original resolutions were broad in scope, and +suggested a plan of action of a dual nature; the one of which failing, +resort could be had to the other without compromising the movement by +delay. In a word, it proposed an opposition by a party organization. The +first resolution was adroitly framed to avoid the censure with which the +people at large, whose satisfaction with the new Constitution had grown +with the fresh adhesions of State after State to positive enthusiasm, +would surely condemn any attempt to dissolve the Union formed under its +provisions. This resolution declared that it was in order to _prevent_ a +dissolution of the Union and to secure liberty, that a revision was +necessary. The second expressed the opinion of the conference to be, +that the safest manner to obtain such revision was to conform to the +request of the State of New York, and to urge the calling of a new +convention, and recommended that the Pennsylvania legislature be +petitioned to apply for that purpose to the new Congress. These were +declaratory. The third and fourth provided, first, for an organization +of committees in the several counties to correspond with each other and +with similar committees in other States; secondly, invited the friends +to amendments in the several States to meet in conference at a fixed +time and place. This plan of committees of correspondence and of a +meeting of delegates was simply a revival of the methods of the Sons of +Liberty, from whose action sprung the first Continental Congress of +1774. + +The formation of such an organization would surely have led to +disturbance, perhaps to civil war. During the progress of the New York +convention swords and bayonets had been drawn, and blood had been shed +in the streets of Albany, where the Anti-Federalists excited popular +rage by burning the new Constitution. But the thirty-three gentlemen who +met at Harrisburg wisely tempered these resolutions to a moderate tone. +Thus modified, they recommended, first, that the people of the State +should acquiesce in the organization of the government, while holding in +view the necessity of very considerable amendments and alterations +essential to preserve the peace and harmony of the Union. Secondly, that +a revision by general convention was necessary. Thirdly, that the +legislature should be requested to apply to Congress for that purpose. +The petition recommended twelve amendments, selected from those already +proposed by other States. These were of course restrictive. The report +was made public in the "Pennsylvania Packet" of September 15. With this +the agitation appears to have ceased. On September 13 Congress notified +the States by resolution to appoint electors under the provisions of the +Constitution. The unanimous choice of Washington as president hushed all +opposition, and for a time the Anti-Federalists sunk into +insignificance. + +The persistent labors of the friends of revision were not without +result. The amendments proposed by Virginia and New York were laid +before the House of Representatives. Seventeen received the two thirds +vote of the House. After conference with the Senate, in which Mr. +Madison appeared as manager for the House, these, reduced in number to +twelve by elimination and compression, were adopted by the requisite two +thirds vote, and transmitted to the legislatures of the States for +approval. Ratified by a sufficient number of States, they became a part +of the Constitution. They were general, and declaratory of personal +rights, and in no instance restrictive of the power of the general +government. + +In 1789, the Assembly of Pennsylvania calling a convention to revise the +Constitution of the State, Mr. Gallatin was sent as a delegate from +Fayette County. To the purposes of this convention he was opposed, as a +dangerous precedent. He had endeavored to organize an opposition to it +in the western counties, by correspondence with his political friends. +His objections were the dangers of alterations in government, and the +absurdity of the idea that the Constitution ever contemplated a change +by the will of a mere majority. Such a doctrine, once admitted, would +enable not only the legislature, but a majority of the more popular +house, were two established, to make another appeal to the people on the +first occasion, and, instead of establishing on solid foundations a new +government, would open the door to perpetual change, and destroy that +stability which is essential to the welfare of a nation; since no +constitution acquires the permanent affection of the people, save in +proportion to its duration and age. Finally, such changes would sooner +or later conclude in an appeal to arms,--the true meaning of the popular +and dangerous words, "an appeal to the people." The opposition was begun +too late, however, to admit of combined effort, and was not persisted +in; and Mr. Gallatin himself, with practical good sense, consented to +serve as a delegate. Throughout his political course the pride of +mastery never controlled his actions. When debarred from leadership he +did not sulk in his tent, but threw his weight in the direction of his +principles. The convention met at Philadelphia on November 24, 1789, and +closed its labors on September 2, 1790. This was Gallatin's +apprenticeship in the public service. Among his papers are a number of +memoranda, some of them indicating much elaboration of speeches made, or +intended to be made, in this body. One is an argument in favor of +enlarging the representation in the House; another is against a plan of +choosing senators by electors; another concerns the liberty of the +press. There is, further, a memorandum of his motion in regard to the +right of suffrage, by virtue of which "every freeman who has attained +the age of twenty-one years, and been a resident and inhabitant during +one year next before the day of election, every naturalized freeholder, +every naturalized citizen who had been assessed for state or county +taxes for two years before election day, or who had resided ten years +successively in the State, should be entitled to the suffrage, paupers +and vagabonds only being excluded." Certainly, in his conservative +limitations upon suffrage, he did not consult his own interest as a +large landholder inviting settlement, nor pander to the natural desires +of his constituency. + +In an account of this convention, written at a later period, Mr. +Gallatin said that it was the first public body to which he was elected, +and that he took but a subordinate share in the debates; that it was one +of the ablest bodies of which he was ever a member, and with which he +was acquainted, and, excepting Madison and Marshall, that it embraced as +much talent and knowledge as any Congress from 1795 to 1812, beyond +which his personal knowledge did not extend. Among its members were +Thomas McKean, signer of the Declaration of Independence and president +of the Continental Congress, Thomas Mifflin and Timothy Pickering, of +the Revolutionary army, and Smilie and Findley, Gallatin's political +friends. General Mifflin was its president. + +But mental distraction brought Mr. Gallatin no peace of heart at this +period, and when the excitement of the winter was over he fell into a +state of almost morbid melancholy. To his friend Badollet he wrote from +Philadelphia, early in March, that life in Fayette County had no more +charms for him, and that he would gladly leave America. But his lands +were unsalable at any price, and he saw no means of support at Geneva. +Some one has said, with a profound knowledge of human nature, that no +man is sure of happiness who has not the capacity for continuous labor +of a disagreeable kind. The occasional glimpses into Mr. Gallatin's +inner nature, which his correspondence affords, show that up to this +period he was not supposed by his friends or by himself to have this +capacity. In the letter which his guardian wrote to him after his flight +from home, he was reproached with his "natural indolence." His good +friend, Mademoiselle Pictet, accused him of being hard to please, and +disposed to _ennui_; and again, as late as 1787, repeats to him, in a +tone of sorrow, the reports brought to her of his "continuance in his +old habit of indolence," his indifference to society, his neglect of +his dress, and general indifference to everything but study and reading, +tastes which, she added, he might as well have cultivated at Geneva as +in the new world; and he himself, in the letter to Badollet just +mentioned, considers that his habits and his laziness would prove +insuperable bars to his success in any profession in Europe. In +estimation of this self-condemnation, it must be borne in mind that the +Genevans were intellectual Spartans. Gallatin must be measured by that +high standard. But if the charge of indolence could have ever justly +lain against Gallatin,--a charge which his intellectual vigor at +twenty-seven seems to challenge,--it certainly could never have been +sustained after he fairly entered on his political and public career. In +October, 1790, he was elected by a two thirds majority to represent +Fayette County in the legislature of the State of Pennsylvania; James +Findley was his colleague, John Smilie being advanced to the state +Senate. Mr. Gallatin was reelected to the Assembly in 1791 and 1792, +without opposition. + +Among his papers there is a memorandum of his legislative service during +these three years, and a manuscript volume of extracts from the Journals +of the House, from January 14, 1791, to December 17, 1794. They form +part of the extensive mass of documents and letters which were collected +and partially arranged by himself, with a view to posthumous +publication. Here is an extract from the memorandum:-- + + "I acquired an extraordinary influence in that body [the + Pennsylvania House of Representatives]; the more remarkable as I + was always in a party minority. I was indebted for it to my great + industry and to the facility with which I could understand and + carry on the current business. The laboring oar was left almost + exclusively to me. In the session of 1791-1792, I was put on + thirty-five committees, prepared all their reports, and drew all + their bills. Absorbed by those details, my attention was turned + exclusively to administrative laws, and not to legislation properly + so called.... I failed, though the bill I had introduced passed the + House, in my efforts to lay the foundation for a better system of + education. Primary education was almost universal in Pennsylvania, + but very bad, and the bulk of schoolmasters incompetent, miserably + paid, and held in no consideration. It appeared to me that in order + to create a sufficient number of competent teachers, and to raise + the standard of general education, intermediate academical + education was an indispensable preliminary step, and the object of + the bill was to establish in each county an academy, allowing to + each out of the treasury a sum equal to that raised by taxation in + the county for its support. But there was at that time in + Pennsylvania a Quaker and a German opposition to every plan of + general education. + + "The spirit of internal improvements had not yet been awakened. + Still, the first turnpike-road in the United States was that from + Philadelphia to Lancaster, which met with considerable opposition. + This, as well as every temporary improvement in our communications + (roads and rivers) and preliminary surveys, met, of course, with my + warm support. But it was in the fiscal department that I was + particularly employed, and the circumstances of the times favored + the restoration of the finances of the State. + + "The report of the Committee of Ways and Means of the session + 1790-91 was entirely prepared by me, known to be so, and laid the + foundation of my reputation. I was quite astonished at the general + encomiums bestowed upon it, and was not at all aware that I had + done so well. It was perspicuous and comprehensive; but I am + confident that its true merit, and that which gained me the general + confidence, was its being founded in strict justice, without the + slightest regard to party feelings or popular prejudices. The + principles assumed, and which were carried into effect, were the + immediate reimbursement and extinction of the state paper-money, + the immediate payment in specie of all the current expenses, or + warrants on the treasury (the postponement and uncertainty of which + had given rise to shameful and corrupt speculations), and provision + for discharging without defalcation every debt and engagement + previously recognized by the State. In conformity with this, the + State paid to its creditors the difference between the nominal + amount of the state debt assumed by the United States and the rate + at which it was funded by the act of Congress. + + "The proceeds of the public lands, together with the arrears, were + the fund which not only discharged all the public debts, but left a + large surplus. The apprehension that this would be squandered by + the legislature was the principal inducement for chartering the + Bank of Pennsylvania, with a capital of two millions of dollars, of + which the State subscribed one half. This, and similar subsequent + investments, enabled Pennsylvania to defray, out of the dividends, + all the expenses of government without any direct tax during the + forty ensuing years, and till the adoption of the system of + internal improvement, which required new resources. + + "It was my constant assiduity to business, and the assistance + derived from it by many members, which enabled the Republican party + in the legislature, then a minority on a joint ballot, to elect me, + and no other but me of that party, senator of the United States." + +Among the reports enumerated by Mr. Gallatin, as those of which he was +the author, is one made by a committee on March 22, 1793, that they ... +are of opinion slavery is inconsistent with every principle of humanity, +justice, and right, and repugnant to the spirit and express letter of +the Constitution of the Commonwealth. Added to this was a resolution for +its abolition in the Commonwealth. + +The seat of government was changed from New York to Philadelphia in +1790, and the first Congress assembled there in the early days of +December for its final session. Philadelphia was in glee over the +transfer of the departments. The convention which framed the new state +Constitution met here in the fall, and the legislature was also holding +its sessions. The atmosphere was political. The national and local +representatives met each other at all times and in all places, and the +public affairs were the chief topic in and out of doors. In this busy +whirl Gallatin made many friends, but Philadelphia was no more to his +taste as a residence than Boston. He was disgusted with the +ostentatious display of wealth, the result not of industry but of +speculation, and not in the hands of the most deserving members of the +community. Later he became more reconciled to the tone of Pennsylvania +society, comparing it with that of New York; he was especially pleased +with its democratic spirit, and the absence of _family influence_. "In +Pennsylvania," he says, "not only we have neither Livingstons, nor +Rensselaers, but from the suburbs of Philadelphia to the banks of the +Ohio I do not know a single family that has any extensive influence. An +equal distribution of property has rendered every individual +independent, and there is amongst us true and real equality. In a word, +as I am lazy, I like a country where living is cheap; and as I am poor, +I like a country where no person is very rich." + +Hamilton's excise bill was a bone of contention in the national and +state legislatures throughout the winter. Direct taxation upon anything +was unpopular, that on distilled spirits the most distasteful to +Pennsylvania, where whiskey stills were numerous in the Alleghanies. To +the bill introduced into Congress a reply was immediately made January +14, 1791, by the Pennsylvania Assembly in a series of resolutions which +are supposed to have been drafted by Mr. Gallatin, and to have been the +first legislative paper from his pen. They distinctly charged that the +obnoxious bill was "subversive of the peace, liberty, and rights of the +citizen." + +Tax by excise has always been offensive to the American people, as it +was to their ancestors across the sea. It was characterized by the first +Continental Congress of 1774 as "the horror of all free States." +Notwithstanding their warmth, these resolutions passed the Assembly by a +vote of 40 to 16. The course of this excitement must be followed; as it +swept Mr. Gallatin in its mad current, and but for his self-control, +courage, and adroitness would have wrecked him on the breakers at the +outset of his political voyage. The excise law passed Congress on March +3, 1791. On June 22 the state legislature, by a vote of 36 to 11, +requested their senators and representatives in Congress to oppose every +part of the bill which "shall militate against the rights and liberties +of the people." + +The western counties of Pennsylvania--Westmoreland, Fayette, Washington, +and Allegheny--lie around the head-waters of the Ohio in a radius of +more than a hundred miles. At this time they contained a population of +about seventy thousand souls. Pittsburgh, the seat of justice, had about +twelve hundred inhabitants. The Alleghany Mountains separate this wild +region from the eastern section of the State. There were few roads of +any kind, and these lay through woods. The mountain passes could be +traveled only on foot or horseback. The only trade with the East was by +pack-horses, while communication with the South was cut off by hostile +Indian tribes who held the banks of the Ohio. This isolation from the +older, denser, and more civilized settlements bred in the people a +spirit of self-reliance and independence. They were in great part +Scotch-Irish Presbyterians, a religious and warlike race to whom the +hatred of an exciseman was a tradition of their forefathers. Having no +market for their grain, they were compelled to preserve it by converting +it into whiskey. The still was the necessary appendage of every farm. +The tax was light, but payable in money, of which there was little or +none. Its imposition, therefore, coupled with the declaration of its +oppressive nature by the Pennsylvania legislature, excited a spirit of +determined opposition near akin to revolution. + +Unpopular in all the western part of the State, Hamilton's bill was +especially odious to the people of Washington County. The first meeting +in opposition to it was held at Red Stone Old Fort or Brownsville, the +site of one of those ancient remains of the mound-builders which abound +in the western valleys. It was easily reached by Braddock's Road, the +chief highway of the country. Here gathered on July 27, 1791, a number +of persons opposed to the law, when it was agreed that county committees +should be convened in the four counties at the respective seats of +justice. Brackenridge, in his "Incidents of the Western Insurrection," +says that Albert Gallatin was clerk of the meeting. One of these +committees met in the town of Washington on August 23, when violent +resolutions were adopted. Gallatin, engaged at Philadelphia, was not +present at this assemblage, three of whose members were deputed to meet +delegates from the counties of Westmoreland, Fayette, and Allegheny, at +Pittsburgh, on the first Tuesday in September following, to agree upon +an address to the legislature on the subject of excise and other +grievances. At the Pittsburgh meeting eleven delegates appeared for the +four counties. The resolutions adopted by them, general in character, +read more like a declaration of grievances as a basis for revolution +than a petition for special redress. No wonder that the secretary of the +treasury stigmatized them as "intemperate." They charge that in the laws +of the late Congress hasty strides had been made to all that was unjust +and oppressive. They complain of the increase in the salaries of +officials, of the unreasonable interest of the national debt, of the +non-discrimination between original holders and transferees of the +public securities, of the National Bank as a base offspring of the +funding system; finally, in detail, of the excise law of March 3, 1791. +At this meeting James Marshall and David Bradford represented Washington +County. + +In August government offices of inspection were opened. The spirit of +resistance was now fully aroused, and in the early days of September the +collectors for Washington, Westmoreland, and Fayette were treated with +violence. Unwilling to proceed to excessive measures, and no doubt +swayed by the attitude of the Pennsylvania legislature, Congress in +October referred the law back to Hamilton for revision. He reported an +amended act on March 6, 1792, which was immediately passed, and became a +law March 8. It was to take effect on the last day of June succeeding. +By it the rate of duty was reduced, a privilege of time as to the +running of licenses of stills granted, and the tax ordered only for such +time as they were actually used. + +But these modifications did not satisfy the malcontents of the four +western counties, and they met again on August 21, 1792, at Pittsburgh. +Of this second Pittsburgh meeting Albert Gallatin was chosen secretary. +Badollet went up with Gallatin. John Smilie, James Marshall, and James +Bradford of Washington County were present. Bradford, Marshall, +Gallatin, and others were appointed to draw up a remonstrance to +Congress. In order to carry out with regularity and concert the measures +agreed upon, a committee of correspondence was appointed, and the +meeting closed with the adoption of the violent resolutions passed at +the Washington meeting of 1791:-- + + "Whereas, some men may be found among us so far lost to every sense + of virtue and feeling for the distresses of this country as to + accept offices for the collection of the duty. + + "Resolved, therefore, that in future we will consider such persons + as unworthy of our friendship; have no intercourse or dealings with + them; withdraw from them every assistance, and withhold all the + comforts of life which depend upon those duties that as men and + fellow citizens we owe to each other; and upon all occasions treat + them with that contempt they deserve; and that it be, and it is + hereby, most earnestly recommended to the people at large, to + follow the same line of conduct towards them." + +If such an excommunication were to be meted out to an offending +neighbor, what measure would the excise man receive if he came from +abroad on his unwelcome errand? + +These resolutions were signed by Mr. Gallatin as clerk, and made public +through the press. Resolutions of this character, if not criminal, reach +the utmost limit of indiscretion, and political indiscretion is quite as +dangerous as crime. The petition to Congress, subscribed by the +inhabitants of western Pennsylvania, was drawn by Gallatin; while +explicit in terms, it was moderate in tone. It represented the unequal +operation of the act. "A duty laid on the common drink of a nation, +instead of taxing the citizens in proportion to their property, falls as +heavy on the poorest class as on the rich;" and it ingeniously pointed +out that the distance of the inhabitants of the western counties from +market prevented their bringing the produce of their lands to sale, +either in grain or meal. "We are therefore distillers through necessity, +not choice; that we may comprehend the greatest value in the smallest +size and weight." + +Hamilton, indignant, reported the proceedings to the President on +September 9, 1792, and demanded instant punishment. Washington, who was +at Mount Vernon, was unwilling to go to extremes, but consented to issue +a proclamation, which, drafted by Hamilton, and countersigned by +Jefferson, was published September 15, 1792. It earnestly admonished all +persons to desist from unlawful combinations to obstruct the operations +of the laws, and charged all courts, magistrates, and officers with +their enforcement. There was no mistaking Hamilton's intention to +enforce the law. Prosecutions in the Circuit Court, held at Yorktown in +October, were ordered against the Pittsburgh offenders, but no proof +could be had to sustain an indictment. + +The President's proclamation startled the western people, and some +uneasiness was felt as to how such of their representatives as had taken +part in the Pittsburgh meeting would be received when they should go up +to the legislature in the winter. Bradford and Smilie accompanied +Gallatin; Smilie to take his seat in the state Senate, and Bradford to +represent Washington County in the House, where he "cut a poor figure." +Gallatin despised him, and characterized him as a "tenth-rate lawyer and +an empty drum." Gallatin found, however, that although the Pittsburgh +meeting had hurt the general interest of his party throughout the State, +and "rather defeated" the repeal of the excise law, his eastern friends +did not turn the cold shoulder to him. He said to every one whom he +knew that the resolutions were perhaps too violent and undoubtedly +highly impolitic, but, in his opinion, contained nothing illegal. +Meanwhile federal officers proceeded to enforce the law in Washington +County. A riot ensued, and the office was forcibly closed. Bills were +found against two of the offenders in the federal court, and warrants to +arrest and bring them to Philadelphia for trial were issued. Gallatin +believed the men innocent, and did not hesitate to advise Badollet to +keep them out of the way when the marshal should go to serve the writs, +but deprecated any insult to the officer. He thought "the precedent a +very dangerous one to drag people such a distance in order to be tried +on governmental prosecutions." Here the matter rested for a season. + +At this session of the legislature Gallatin introduced a new system of +county taxation, proposed a clause providing for "trustees yearly +elected, one to each township, without whose consent no tax is to be +raised, nor any above one per cent. on the value of lands," which he +hoped would "tend to crush the aristocracy of every town in the State." +Also he proposed a plan to establish a school and library in each +county, with a sufficient immediate sum in money, and a yearly allowance +for a teacher in the English language. + +FOOTNOTES: + +[Footnote 1: The drafting of this letter was, notwithstanding his +protest, intrusted to John Jay, one of the strongest of the Federal +leaders, and a warm supporter of the Constitution as it stood.] + + + + +CHAPTER III + +UNITED STATES SENATE + + +The death of the grandfather of Mr. Gallatin, and soon after of his +aunt, strongly tempted him to make a journey to Geneva in the summer of +1793. The political condition of Europe at that time was of thrilling +interest. On January 21 the head of Louis XVI. fell under the +guillotine, to which Marie Antoinette soon followed him. The armies of +the coalition were closing in upon France. Of the political necessity +for these state executions there has always been and will always be +different judgments. That of Mr. Gallatin is of peculiar value. It is +found expressed in intimate frankness in a letter to his friend +Badollet, written at Philadelphia, February 1, 1794. + + "France at present offers a spectacle unheard of at any other + period. Enthusiasm there produces an energy equally terrible and + sublime. All those virtues which depend upon social or family + affections, all those amiable weaknesses, which our natural + feelings teach us to love or respect, have disappeared before the + stronger, the only, at present, powerful passion, the _Amor + Patriae_. I must confess my soul is not enough steeled, not + sometimes to shrink at the dreadful executions which have restored + at least apparent internal tranquillity to that republic. Yet upon + the whole, as long as the combined despots press upon every + frontier, and employ every engine to destroy and distress the + interior parts, I think they, and they alone, are answerable for + every act of severity or injustice, for every excess, nay for every + crime, which either of the contending parties in France may have + committed." + +Within a few years the publication of the correspondence of De Fersen, +the agent of the king and queen, has supplied the proof of the charge +that they were in secret correspondence with the allied sovereigns to +introduce foreign troops upon the soil of France,--a crime which no +people has ever condoned. + +The French Revolution, which from its beginning in 1789 reacted upon the +United States with fully the force that the American Revolution exerted +upon France, had become an important factor in American politics. The +intemperance of Genet, the minister of the French Convention to the +United States on the one hand, and the breaches of neutrality by England +on the other, were dividing the American people into English and French +parties. The Federalists sympathized with the English, the late enemies, +and the Republicans with the French, the late allies, of the United +States. + +Mr. Gallatin had about made up his mind to visit Europe, when an +unexpected political honor changed his plans. The Pennsylvania +legislature elected him a senator of the United States on joint ballot, +a distinction the more singular in that the legislature was Federalist +and Mr. Gallatin was a representative of a Republican district, and +strong in that faith. Moreover, he was not a candidate either of his own +motion or by that of his friends, but, on the contrary, had doubts as to +his eligibility because of insufficient residence. This objection, which +he himself stated in caucus, was disregarded, and on February 28, 1793, +by a vote of 45 to 37, he was chosen senator. Mr. Gallatin had just +completed his thirty-second year, and now a happy marriage came +opportunely to stimulate his ambition and smooth his path to other +honors. + +Among the friends made at Philadelphia was Alexander J. Dallas, a +gentleman two years Gallatin's senior, whose career, in some respects, +resembled his own. He was born in Jamaica, of Scotch parents; had been +thoroughly educated at Edinburgh and Westminster, and, coming to the +United States in 1783, had settled in Philadelphia. He now held the post +of secretary of state for Pennsylvania. Mr. Gallatin's constant +committee service brought him into close relations with the secretary, +and the foundation was laid of a lasting political friendship and social +intimacy. In the recess of the legislature, Mr. Gallatin joined Mr. +Dallas and his wife in an excursion to the northward. Mr. Gallatin's +health had suffered from close confinement and too strict attention to +business, and he needed recreation and diversion. In the course of the +journey the party was joined by some ladies, friends of Mrs. Dallas, +among whom was Miss Hannah Nicholson. The excursion lasted nearly four +weeks. The result was that Mr. Gallatin returned to Philadelphia the +accepted suitor of this young lady. He describes her in a letter to +Badollet as "a girl about twenty-five years old, who is neither handsome +nor rich, but sensible, well-informed, good-natured, and belonging to a +respectable and very amiable family." Nor was he mistaken in his +choice,--a more charming nature, a more perfect, well-rounded character +than hers is rarely found. They were married on November 11, 1793. She +was his faithful companion throughout his long and honorable career, and +death separated them but by a few months. This alliance greatly widened +his political connection. + +Commodore James Nicholson, his wife's father, famous in the naval annals +of the United States as the captain of the Trumbull, the first of +American frigates, at the time resided in New York, and was one of the +acknowledged leaders of the Republican party in the city. His two +brothers--Samuel and John--were captains in the naval service. His two +elder daughters were married to influential gentlemen;--Catharine to +Colonel Few, senator from Georgia; Frances, to Joshua Seney, member of +Congress from Maryland; Maria later (1809) married John Montgomery, who +had been member of Congress from Maryland, and was afterwards mayor of +Baltimore. A son, James Witter Nicholson, then a youth of twenty-one, +was, in 1795, associated with Mr. Gallatin in his Western Company, and, +removing to Fayette, made his home in what was later and is now known as +New Geneva. Here, in connection with Mr. Gallatin and the brothers +Kramer, Germans, he established extensive glass works, which proved +profitable. + + * * * * * + +Mr. Gallatin's election to the United States Senate did not disqualify +him for his unfinished legislative term, and, on his return to +Philadelphia, he was again plunged in his manifold duties. The few days +which intervened between his marriage and the meeting of Congress--a +short honeymoon--were spent under the roof of Commodore Nicholson in New +York. + +On February 28, 1793, the Vice-President laid before the Senate a +certificate from the legislature of the Commonwealth of Pennsylvania to +the election of Albert Gallatin as senator of the United States. Mr. +Gallatin took his seat December 2, 1793. The business of the session was +opened by the presentation of a petition signed by nineteen individuals +of Yorktown, Pennsylvania, stating that Mr. Gallatin had not been nine +years a citizen of the United States. This petition had been handed to +Robert Morris, Mr. Gallatin's colleague for Pennsylvania, by a member of +the legislature for the county of York, but he had declined to present +it, and declared to Mr. Gallatin his intention to be perfectly neutral +on the occasion--at least so Mr. Gallatin wrote to his wife the next +day; but Morris did not hold fast to this resolution, as the votes in +the sequel show. The petition was ordered to lie upon the table. On +December 11 Messrs. Rutherford, Cabot, Ellsworth, Livermore, and +Mitchell were appointed a committee to consider the petition. These +gentlemen, Gallatin wrote, were undoubtedly "the worst for him that +could have been chosen, and did not seem to him to be favorably +disposed." He himself considered the legal point involved as a nice and +difficult one, and likely to be decided by a party vote. The fourth +article of the Constitution of the first Confederation of the United +States reads as follows:-- + + "The better to secure and perpetuate mutual friendship and + intercourse among the people of the different States in this Union, + the free inhabitants of each of these States, paupers, vagabonds, + and fugitives from justice excepted, shall be entitled to all + privileges and immunities of free citizens in the several States." + +Article 1, section 3, of the new Constitution declares:-- + + "No person shall be a senator who shall not have attained to the + age of thirty years, and been nine years a citizen of the United + States, and who shall not, when elected, be an inhabitant of that + State for which he shall be chosen." + +Mr. Gallatin landed in Massachusetts in July, 1780, while still a minor. +His residence, therefore, which had been uninterrupted, extended over +thirteen years. He took the oath of citizenship and allegiance to +Virginia in October, 1785, since which, until his election in 1793, nine +years, the period called for by the United States Constitution, had not +elapsed. On the one hand, his actual residence exceeded the required +period of citizenship; on the other, his legal and technical residence +as a citizen was insufficient. In point of fact, his intention to become +a citizen dated from the summer of 1783. + +To take from the case the air of party proscription, which it was +beginning to assume, the Senate discharged its special committee, and +raised a general committee on elections to consider this and other +cases. On February 10, 1794, the report of this committee was submitted, +and a day was set for a hearing by the Senate, with open doors. On that +day Mr. Gallatin exhibited a written statement of facts, agreed to +between himself and the petitioners, and the case was left to the Senate +on its merits. On the 28th a test vote was taken upon a motion to the +effect that "Albert Gallatin, returned to this House as a member for the +State of Pennsylvania, is duly qualified for and elected to a seat in +the Senate of the United States," and it was decided in the +negative--yeas, 12; nays, 14.[2] + +Motion being made that the election of Albert Gallatin to be a senator +of the United States was void,--he not having been a citizen of the +United States for the term of years required as a qualification to be a +senator of the United States,--it was further moved to divide the +question at the word "void;" and the question being then taken on the +first paragraph, it passed in the affirmative--yeas, 14; nays, 12. The +yeas and nays were required, and the Senate divided as before. The +resolution was then put and adopted by the same vote. Thus Mr. Gallatin, +thirteen years a resident of the country, a large land-holder in +Virginia, and for several terms a member of the Pennsylvania +legislature, was excluded from a seat in the Senate of the United +States. + +Mr. Gallatin conducted his case with great dignity. On being asked +whether he had any testimony to produce, he replied, in writing, that +there was not sufficient matter charged in the petition and proved by +the testimony to vacate his seat, and declined to go to the expense of +collecting evidence until that preliminary question was settled. + +Short as the period was during which Mr. Gallatin held his seat, it was +long enough for him seriously to annoy the Federal leaders. Indeed, it +is questionable whether, if he had delayed his embarrassing motion, a +majority of the Senate could have been secured against him. Certain it +is that the Committee on Elections, appointed on December 11, did not +send in its report until the day after Mr. Gallatin moved his +resolution, calling upon the secretary of the treasury for an elaborate +statement of the debt on January 1, 1794, under distinct heads, +including the balances to creditor States, a statement of loans, +domestic and foreign, contracted from the beginning of the government, +statements of exports and imports; finally for a summary statement of +the receipts and expenditures to the last day of December, 1790, +_distinguishing the moneys received under each branch of the revenue and +the moneys expended under each of the appropriations, and stating the +balances of each branch of the revenue remaining unexpended on that +day_, and also calling for similar and separate statements for the years +1791, 1792, 1793. This resolution, introduced on January 8, was laid +over. On the 20th it was adopted. It was not until February 10 that a +reply from the secretary of the treasury was received by the Senate, and +on the 11th submitted to Gallatin, Ellsworth, and Taylor for +consideration and report. In this letter (February 6, 1794) Hamilton +stated the difficulty of supplying the precise information called for, +with the clerical forces of the department, the interruption it would +cause in the daily routine of the service, and deprecated the practice +of such unexpected demands. + +With this response of the secretary the inquiry fell to the ground, but +it was neither forgotten nor forgiven by his adherents, and Mr. Gallatin +paid the penalty on at least one occasion. This was years later, when he +himself was secretary of the treasury. On March 2, 1803, the day before +the adjournment of Congress, Mr. Griswold, Federalist from Connecticut, +attacked the correctness of the accounts of the sinking fund, and +demanded an answer to a resolution of the House on the management of +this bureau. Had such been his desire, Mr. Gallatin was foreclosed from +Hamilton's excuse. On the night of the 3d he sent in an elaborate +statement which set accusation at rest and criticism at defiance. + +Mr. Gallatin's short stay in the Senate revealed to the Federalists the +character of the man, who, disdaining the lesser flight, checked only at +the highest game. He accepted his exclusion with perfect philosophy. +Soon after the session opened he said, "My feelings cannot be much hurt +by an unfavorable decision, since having been elected is an equal proof +of the confidence the legislature of Pennsylvania reposed in me, and not +being qualified, if it is so decided, cannot be imputed to me as a +fault." His exclusion was by no means a disadvantage to him. It made +common cause of the honor of Pennsylvania and his own; it endeared him +to the Republicans of his State as a martyr to their principles. It +"secured him," to use his own words, "many staunch" friends throughout +the Union, and extended his reputation, hitherto local and confined, +over the entire land; more than all, it led him to the true field of +political contest--the House of Representatives of the people of the +United States. + +FOOTNOTES: + +[Footnote 2: The yeas and nays being required by one fifth of the +senators present, there were: _Affirmative_.--Bradley, Brown, Burr, +Butler, Edwards, Gunn, Jackson, Langdon, Martin, Monroe, Robinson, +Taylor; 12. + +_Negative_.--Bradford, Cabot, Ellsworth, Foster, Frelinghuysen, Hawkins, +Izard, King, Livermore, Mitchell, Morris, Potts, Strong, Vining; 14.] + + + + +CHAPTER IV + +THE WHISKEY INSURRECTION + + +Mr. Gallatin was now out of public life. For eighteen months since he +came up to the legislature with his friends of the Pittsburgh +convention, he had not returned to Fayette. His private concerns were +suffering in his absence. Neither his barn, his meadow, nor his house +was finished at the close of 1793. In May, 1794, he took his wife to his +country home. Their hopes of a summer of recreation and domestic comfort +in the wild beauties of the Monongahela were not to be realized. Before +the end of June the peaceful country was in a state of mad agitation. + +The seeds of political discontent, sown at Pittsburgh in 1792, had +ripened to an abundant harvest. An act passed by Congress June 5, 1794, +giving to the state courts concurrent jurisdiction in excise cases, +removed the grievance of which Gallatin complained, the dragging of +accused persons to Philadelphia for trial, but was not construed to be +retroactive in its operation. The marshal, accordingly, found it to be +his duty to serve the writs of May 31 against those who had fallen under +their penalties. These writs were returnable in Philadelphia. They were +served without trouble in Fayette County. Not so in Allegheny. Here on +July 15, 1794, the marshal had completed his service, when, while still +in the execution of his office, and in company with the inspector, he +was followed and fired upon. The next day a body of men went to the +house of the marshal and demanded that he should deliver up his +commission. They were fired upon and dispersed, six were wounded, and +the leader killed. A general rising followed. The marshal's house, +though defended by Major Kirkpatrick, with a squad from the Pittsburgh +garrison, was set on fire, with the adjacent buildings, and burned. On +July 18 the insurgents sent a deputation of two or three to Pittsburgh, +to require of the marshal a surrender of the processes in his +possession, and of the inspector the resignation of his office. These +demands were, of course, rejected; but the officers, alarmed for their +personal safety, left the town, and, descending the Ohio by boat to +Marietta, proceeded by a circuitous route to Philadelphia, and made +their report to the United States authorities. + +This was the outbreak of the Western or Whiskey Insurrection. The +excitement spread rapidly through the western counties. Fayette County +was not exempt from it. The collector's house was broken into, and his +commission taken from him by armed men; the sheriff refused to serve the +writs against the rioters of the spring. Since these disturbances there +had been no trouble in this county. But the malcontents elsewhere rose +in arms, riots ensued, and the safety of the whole community was +compromised. The news reaching Fayette, the distillers held a meeting at +Uniontown, the county seat, on July 20. Both Gallatin and Smilie were +present, and by their advice it was agreed to submit to the laws. The +neighboring counties were less fortunate. On July 21 the Washington +County committee was summoned to meet at Mingo Creek Meeting-house. On +the 23d there was a large assemblage of people, including a number of +those who had been concerned in burning the house of the Pittsburgh +inspector. James Marshall, the same who opposed the ratification of the +federal Constitution, David Bradford, the "empty drum," and Judge +Brackenridge of Pittsburgh, attended this meeting. Bradford, the most +unscrupulous of the leaders, sought to shirk his responsibility, but was +intimidated by threats, and thereafter did not dare to turn back. +Brackenridge was present to counsel the insurgents to moderation. In +spite of his efforts the meeting ended in an invitation, which the +officers had not the boldness to sign, to the townships of the four +western counties of Pennsylvania and the adjoining counties of Virginia +to send representatives to a general meeting on August 14, at +Parkinson's Ferry on the Monongahela, in Washington County. Bradford, +determined to aggravate the disturbance, stopped the mail at Greensburg, +on the road between Pittsburgh and Philadelphia, and robbed it of the +Washington and Pittsburgh letters, some of which he published, to the +alarm of their authors. + +On July 28 a circular signed by Bradford, Marshall, and others was sent +out from Cannonsburg to the militia of the county, whom it summoned for +personal service, and likewise called for volunteers to rendezvous the +following Wednesday, July 30, at their respective places of meeting, +thence to march to Braddock's Field, on the Monongahela, the usual +rendezvous of the militia, about eight miles south of Pittsburgh, by two +o'clock of Friday, August 1. It closed in these words, "Here is an +expedition proposed in which you will have an opportunity for displaying +your military talents and of rendering service to your country." Nothing +less was contemplated by the more extreme of these men than an attack +upon Fort Pitt and the sack of Pittsburgh. Thoroughly aroused at last, +the moderate men of Washington determined to breast the storm. A meeting +was held; James Ross of the United States Senate made an earnest appeal, +and was supported by Scott of the House of Representatives and Stokely +of the Senate of Pennsylvania. Marshall and Bradford yielded, and +consented to countermand the order of rendezvous. But the excited +population poured into the town from all quarters, and Bradford, who +found that he had gone too far to retreat, again took the lead of the +movement, already beyond restraint. + +There are accounts of this formidable insurrection by H. H. Brackenridge +and William Findley, eye-witnesses. These supply abundant details. +Findley says that he knew that the movement would not stop at the limit +apparently set for it. "The opposing one law would lead to oppose +another; they would finally oppose all, and demand a new modeling of the +Constitution, and there would be a revolution." There was great alarm in +Pittsburgh. A meeting was held there Thursday evening, July 31, at which +a message from the Washington County insurgents was read, violent +resolutions adopted, and the 9th of August appointed as the day for a +town meeting for election of delegates to a general convention of the +counties at Parkinson's Ferry; Judge Brackenridge of Pittsburgh, a man +of education, influence, and infinite jest and humor, was present at +this meeting. Of Scotch-Irish birth himself, his sympathies of race were +with his countrymen, but in political sentiments he was not in harmony +with their leaders. They were nearly all Republicans, while he had sided +with the Federalists in the convention which adopted the new +Constitution of the United States. He was a man of peace, and of too +much sagacity not to foresee the inevitable ruin upon which they were +rushing. At Mingo Creek he had thwarted the plans of immediate +revolution. The evident policy of moderate men was to prevent any +violence before the convention at Parkinson's Ferry should meet, and to +bend all their energies to control the deliberations of that body. The +people of Pittsburgh were intensely excited by the armed gathering +almost at their doors. + +Brackenridge felt that the only safe issue from the situation was to +take part in and shape the action of that gathering. Under his lead a +committee from the Pittsburgh meeting, followed by a large body of the +citizens, went out to the rendezvous. Here they found a motley +assemblage, arrayed in the picturesque campaign costume which the +mountaineers wore when they equipped themselves to meet the +Indians,--yellow hunting-shirts, handkerchiefs tied about their heads, +and rifles on the shoulder; the militia were on foot, and the light +horse of the counties were in military dress. Conspicuous about the +field, "haughty and pompous," as Gallatin described him in the +legislature, was David Bradford, who had assumed the office of +major-general. Brackenridge draws a lifelike picture of him as, mounted +on a superb horse in splendid trappings, arrayed in full uniform, with +plume floating in the air and sword drawn, he rode over the ground, gave +orders to the military, and harangued the multitude. On the historic +ground where Washington plucked his first military laurels were gathered +about seven thousand men, of whom two thousand militia were armed and +accoutred as for a campaign,--a formidable and remarkable assemblage, +when it is considered that the entire male population of sixteen years +of age and upwards of the four counties did not exceed sixteen +thousand, and was scattered over a wide and unsettled country. This is +Brackenridge's estimate of the numbers. Later, Gallatin, on comparison +of the best attainable information, estimated the whole body at from +fifteen hundred to two thousand men. Whatever violence Bradford may have +intended, none was accomplished. That he read aloud the Pittsburgh +letters, taken from the mail, shows his purpose to inflame the people to +vindictive violence. He was accused by contemporary authorities of +imitation of the methods of the French Jacobins, which were fresh +examples of revolutionary vigor. But the mass was not persuaded. After +desultory conversation and discussion, the angry turn of which was at +times threatening to the moderate leaders, the meeting broke up on +August 2; about one third dispersed for their homes, and the remainder, +marching to Pittsburgh, paraded through the streets, and finally +crossing the river in their turn scattered. They did no damage to the +town beyond the burning of a farm belonging to Major Kirkpatrick of the +garrison. The taverns were all closed, but the citizens brought whiskey +to their doors. Judge Brackenridge reports that his sacrifice to peace +on this occasion cost him four barrels of his best old rye. + +This moderation was no augury of permanent quiet. Brackenridge, who was +a keen observer of men, says of the temper of the western population at +this period: "I had seen the spirit which prevailed at the Stamp Act, +and at the commencement of the revolution from the government of Great +Britain, but it was by no means so general and so vigorous amongst the +common people as the spirit which now existed in the country." Nor did +the armed bands all return peaceably to their homes. The house of the +collector for Fayette and Washington counties was burned, and warnings +were given to those who were disposed to submit to the law. The +disaffected were called "Tom the tinker" men, from the signature affixed +to the threatening notices. From a passage in one of Gallatin's letters +it appears that there was a person of that name, a New England man, who +had been concerned in Shays's insurrection. Liberty poles, with the +device, "An equal tax and no excise law," were raised, and the trees +placarded with the old revolutionary motto, "United we stand, divided we +fall," with a divided snake as an emblem. Mr. Gallatin's neighborhood +was not represented at Braddock's Field, and not more than a dozen were +present from the entire county. But now the flame spread there also, and +liberty poles were raised. Mr. Gallatin himself, inquiring as to their +significance and expressing to the men engaged the hope that they would +not behave like a mob, was asked, in return, if he was not aware of the +Westmoreland resolution that any one calling the people a mob should be +tarred and feathered,--an amusing example of that mob logic which +proves the affirmative of the proposition it denies. + +Mr. Gallatin did not attend the meeting at Braddock's Field. Somewhat +isolated at his residence at the southerly border of the county, engaged +in the care of his long neglected farm, and in the full enjoyment of +release from the bustle and excitement of public life, he had paid +little attention to passing events. He was preparing definitively to +abandon political pursuits and to follow some kind of mercantile +business, or take up some land speculation and study law in his +intervals of leisure. It was not a year since he had given hostages to +fortune. He was now in the full tide of domestic happiness, which was +always to him the dearest and most coveted. He might well have hesitated +before again engaging upon the dangerous and uncertain task of +controlling an excited and aggrieved population. But he did not +hesitate. + +The people among whom he had made his home, and whose confidence had +never failed him, were his people. By them he would stand in their +extremity, and if hurt or ruin befell them, it should not be for want of +the interposition of his counsel. He knew his powers, and he determined +to bring them into full play. He knew the danger also, but it only +nerved him to confront and master it. He knew his duty, and did not +swerve one hair from the line it prompted. In no part of his long, +varied, and useful political life does he appear to better advantage +than in this exciting episode of the Whiskey Insurrection. His +self-possession, his cool judgment, swayed neither by timidity nor +rashness, never for a moment failed him. Here he displayed that +remarkable combination of persuasion and control,--the indispensable +equipment of a political chief,--which, in later days, gave him the +leadership of the Republican party. With intuitive perception of the +political situation he saw that the only path to safety, beset with +difficulty and danger though it were, was through the convention at +Parkinson's Ferry. He did not believe that any revolutionary proceedings +had yet been taken, or that the convention was an illegal body, but he +was determined to separate the wheat from the chaff, and disengage the +moderate and the law-abiding from the disorderly. By the light of his +own experience he had learned wisdom. He also had drawn a lesson from +the French Revolution, and knew the uncontrollable nature of large +popular assemblages. The news from Philadelphia, the seat of government, +was of a kind to increase his alarm. Washington was not the man to +overlook such an insult to authority as the resistance to the marshal +and inspector; nor was it probable that Hamilton would let pass such an +occasion for showing the strength and vigor of the government. + +Before the meeting at Braddock's Field, the secretary's plans for a +suppression of the insurrection were matured. On August 2 he laid +before the President an estimate of the probable armed force of the +insurgents, and of that with which he proposed to reduce them to +submission. When the question of the use of force came before the +cabinet, Edmund Randolph, who was secretary of state, opposed it in a +written opinion, one phrase of which deserves repetition:-- + + "It is a fact well known that the parties in the United States are + highly inflamed against each other, and that there is but one + character which keeps both in awe. As soon as the sword shall be + drawn, who shall be able to retain them." + +Mifflin, the governor of Pennsylvania, deprecated immediate resort to +force; the venerable Chief Justice McKean suggested the sending of +commissioners on the part of the federal and state governments. +Washington, with perfect judgment, combined these plans, and happily +allied conciliation with force. A proclamation was issued on August 7 +summoning all persons involved in the disturbance to lay down their arms +and repair to their homes by September 1. Requisitions were made upon +the governors of Pennsylvania, Maryland, Virginia, and New Jersey for +fifteen thousand men in all, and a joint commission of five was +raised,--three of whom on the part of the United States were appointed +by the President, and two on the part of the State of Pennsylvania. This +news was soon known at Pittsburgh, and rapidly spread through the +adjacent country; and it was clear that in the proceedings to be taken +at Parkinson's Ferry the question of resistance or submission must be +definitively settled. On August 14, 1794, the convention assembled; two +hundred and twenty-six delegates in all, of whom ninety-three were from +Washington, forty-nine from Westmoreland, forty-three from Allegheny, +thirty-three from Fayette, two from Bedford, five from Ohio County in +Virginia, with spectators to about the same number. + +Parkinson's Ferry, later called Williamsport, and now Monongahela City, +is on the left bank of the Monongahela, about half way between +Pittsburgh and Red Stone Old Fort or Brownsville. Brackenridge pictures +the scene with his usual local color: "Our hall was a grove, and we +might well be called 'the Mountain' (an allusion to the radical left of +the French convention), for we were on a very lofty ground overlooking +the river. We had a gallery of lying timber and stumps, and there were +more people collected there than there was of the committee." In full +view of the meeting stood a liberty pole, raised in the morning by the +men who signed the Braddock's Field circular order, and it bore the +significant motto, "Liberty and no excise and no asylum for cowards." +Among the delegates, or the committee, to use their own term, were +Bradford, Marshall, Brackenridge, Findley, and Gallatin. Before the +meeting was organized, Marshall came to Gallatin and showed him the +resolutions which he intended to move, intimating at the same time that +he wished Mr. Gallatin to act as secretary. Mr. Gallatin told him that +he highly disapproved the resolutions, and had come to oppose both him +and Bradford, and therefore did not wish to serve. Marshall seemed to +waver; but soon the people met, and Edward Cook of Fayette, who had +presided at Braddock's Field, was chosen chairman, with Gallatin for +secretary. Bradford opened the proceedings with a summary sketch of the +action previously taken, declared the purpose of the committee to be to +determine on a course of action, and his own views to be the appointment +of committees to raise money, purchase arms, enlist volunteers, or draft +the militia: in a word, though he did not use it, to levy war. + +At this point in the proceedings the arrival of the commissioners from +the President was announced, but the progress of the meeting was not +interrupted. The commissioners were at a house near the meeting, but +there were serious objections against holding a conference at this +place. + +Marshall then moved his resolutions. The first, declaratory of the +grievance of carrying citizens great distances for trial, was +unanimously agreed to. The second called for a committee of public +safety "to call forth the resources of the western country to repel any +hostile attempts that may be made against the rights of the citizens, or +of the body of the people." Had this resolution been adopted, the people +were definitively committed to overt rebellion. This brought Mr. +Gallatin at once to his feet. He denied that any hostile attempts +against the rights of the people were threatened, and drew an adroit +distinction between the regular army, which had not been called out, and +the militia, who were a part of the people themselves; and to gain time +he moved a reference of the resolutions to a committee who should be +instructed to wait the action of the government. In the course of his +speech Gallatin denied the assertion that resistance to the excise law +was legal, or that coercion by the government was necessarily hostile. +He was neither supported by his own friends nor opposed by those of +Bradford. He stood alone. + +But Marshall withdrew his resolution, and a committee of sixty was +appointed, with power to summon the people. The only other objectionable +resolution was that which pledged the people to the support of the laws, +except the excise law and the taking of citizens out of their counties +for trial,--an exception which Gallatin succeeded in having stricken +out. He then urged the adoption of the resolution, without the +exception, as necessary "to the establishment of the laws and the +conservation of the peace," and here he was supported by Brackenridge. +The entire resolutions were finally referred to a committee of +four,--Gallatin, Bradford, Husbands, and Brackenridge. The meeting then +adjourned. The next morning a standing committee of sixty was chosen, +one from each township. From these a committee of twelve was selected +to confer with the government commissioners. Upon this committee were +Cook, the chairman, Bradford, Marshall, Gallatin, Brackenridge, and +Edgar. The meeting then adjourned. + +Upon this representative body there seems to have been no outside +pressure. The proclamation of the President, which arrived while it was +in session, showed the determination, while the appointment of the +commission showed the moderation, of the government. Gallatin availed of +each circumstance with consummate adroitness, pointing out to the +desperate the folly of resistance, and to the moderate an issue for +honorable retreat. + +Meanwhile, the commissioners reached Pittsburgh, where on August 20 the +committee of conference was received by them, and an informal +understanding arrived at, which was put in writing. The laws were to be +enforced with as little inconvenience to the people as possible. All +criminal suits for indictable offenses were to be dropped, but civil +suits were to take their course. Notice was given that a definitive +submission must be made by September 1 following. On the 22d the +conference committee answered that they must consult with the committee +of sixty. Thursday the 28th was appointed for a meeting at Red Stone Old +Fort, the very spot where the original resolutions of opposition were +passed in 1791. In the report drawn up every member of the twelve, +except Bradford, favored submission. + +The hour was critical, the deliberations were in the open air, and under +the eyes of a threatening party of seventy riflemen accidentally present +from Washington County across the stream. Bradford, who instinctively +felt that he had placed himself beyond the pale of pardon, and to whom +there was no alternative to revolution but flight, pressed an instant +decision and rejection of the written terms of the commissioners. In the +presence of personal danger, the conferrees only dared to move that part +of their report which advised acceptance of the proffered terms. The +question of submission they left untouched. An adjournment was obtained. +The next day, to quote the words of Brackenridge, "the committee having +convened, Gallatin addressed the chair in a speech of some hours. It was +a piece of perfect eloquence, and was heard with attention and without +disturbance." Never was there a more striking instance of intellectual +control over a popular assemblage. He saved the western counties of +Pennsylvania from anarchy and civil war. He was followed by +Brackenridge, who, warned by the example of his companion, or encouraged +by the quiet of the assemblage, supported him with vigor. Bradford, on +the other hand, faced the issue with directness and savage vehemence. He +repelled the idea of submission, and insisted upon an independent +government and a declaration of war. Edgar of Washington rejoined in +support of the report. Gallatin now demanded a vote, but the twelve +conferrees alone supported him. He then proposed an informal vote, but +without result. Finally a secret ballot was proposed by a member. A hat +was passed, and when the slips of paper were taken out, there were +thirty-four yeas and twenty-three nays. The report was declared to be +adopted, and amid the scowls of the armed witnesses the meeting +adjourned; not, however, before a new committee of conference had been +appointed. On this new committee not one of the old leaders was named. +They evidently knew the folly of further delay, or of attempting to +secure better terms. As his final act Colonel Cook, the chairman of the +standing committee of sixty, indorsed the resolution adopted. It +declared it to be "to the interest of the people of the country to +accede to the proposals made by the commissioners on the part of the +United States." This was duly forwarded, with request for a further +conference. The commissioners consented, but declined to postpone the +time of taking the sense of the people beyond September 11. + +William Findley said of the famous and critical debate at Red Stone: "I +had never heard speeches that I more ardently desired to see in print +than those delivered on this occasion. They would not only be valuable +on account of the oratory and information displayed in all the three, +and especially in Gallatin's, who opened the way, but they would also +have been the best history of the spirit and the mistakes which then +actuated men's minds." Findley, in his allotment of the honors of the +day, considers that "the verbal alterations made by Gallatin saved the +question." Brackenridge thought that his own seeming to coincide with +Bradford prevented the declaration of war; and he has been credited with +having saved the western counties from the horrors of civil war, +Pittsburgh from destruction, and the Federal Union from imminent danger. + +Historians have agreed in according to Gallatin the honor of this field +day. It was left to John C. Hamilton, half a century later, to charge a +want of courage upon Gallatin,--a baseless charge.[3] Not Malesherbes, +the noble advocate defending the accused monarch before the angry French +convention, with the certainty of the guillotine as the reward of his +generosity, is more worthy of admiration than Gallatin boldly pleading +the cause of order within rifle range of an excited band of lawless +frontiersmen. If, as he confessed later, in his part in the Pittsburgh +resolutions he was guilty of "a political sin," he nobly atoned for it +under circumstances that would have tried the courage of men bred to +danger and to arms. Sin it was, and its consequences were not yet summed +up. For although the back of the insurrection was broken at Red Stone +Old Fort, there was much yet to be done before submission could be +completed. + +Bradford attempted to sign, but found that his course at Red Stone Old +Fort had placed him outside the amnesty. Well might the moderate men say +in their familiar manner of Scripture allusion, "Dagon is fallen." He +fled down the Ohio and Mississippi to Louisiana, then foreign soil. The +commissioners waited at Pittsburgh for the signatures of adhesion on +September 10, which was the last day allowed by the terms of amnesty. +They required that meetings should be held on this day in the several +townships; the presiding officers to report the result to commissioner +Ross at Uniontown the 16th of the same month, on which day he would set +out for Philadelphia. The time was inadequate, but there was no help. +Gallatin hastened the submission of Fayette, and a meeting of committees +from the several townships met at the county seat, Uniontown, on +September 10, 1794, when a declaration drawn by Mr. Gallatin was +unanimously adopted. A passage in this admirable paper shows the +comparative order which prevailed in Fayette County during this period +of trouble. It is an appeal to the people of the neighboring counties, +who, under the influence of their passions and resentment, might blame +those of Fayette for their moderation. + + "The only reflection we mean to suggest to them is the + disinterestedness of our conduct upon this occasion. The indictable + offences to be buried in oblivion were committed amongst them, and + almost every civil suit that has been instituted under the revenue + law, in the federal court, was commenced against citizens of this + county. By the terms proposed, the criminal prosecutions are to be + dropped, but no condition could be obtained for the civil suits. We + have been instrumental in obtaining an amnesty, from which those + alone who had a share in the riots derive a benefit, and the other + inhabitants of the western country have gained nothing for + themselves." + +This declaration was forwarded on September 17 to Governor Mifflin, with +reasons for the delay, and advice that signatures were fast being +obtained, not only in the neighboring counties, but even in Fayette, +where this formality had not been thought necessary. It closes with a +forcible appeal to delay the sending of troops until every conciliatory +measure should have proved abortive. + +But the commissioners, unfortunately, were not favorably impressed with +the reception they met with or the scenes they witnessed on their +western mission. They had heard of Bradford's threat to establish an +independent government west of the mountains, and they had seen a +liberty pole raised upon which the people with the greatest difficulty +had been dissuaded from hoisting a flag with six stripes--emblematic of +the six counties represented in the committee. The flag was made, but +set aside for the fifteen stripes with reluctance. This is Findley's +recollection, but Brackenridge says that it was a flag of seven stars +for the four western counties, Bedford, and the two counties of +Virginia. This, he adds, was the first and only manifestation among any +class of a desire to separate from the Union. But here his memory +failed him. + +Hamilton had long been impatient. Again, as in old days, he presented +his arguments directly to the people. Under the heading, "Tully to the +people of the United States," he printed a letter on August 26, of which +the following is a passage:-- + + "Your representatives in Congress, pursuant to the commission + derived from you, and with a full knowledge of the public + exigencies, have laid an excise. At three succeeding sessions they + have revised that act ... and _you_ have actually paid more than a + million of dollars on account of it. But the four western counties + of Pennsylvania undertake to rejudge and reverse your decrees. + _You_ have said, 'The Congress _shall have power_ to lay + _excises_.' They say, 'The Congress shall _not have_ this power;' + or, what is equivalent, they shall not exercise it, for a _power_ + that may not be exercised is a nullity. Your representatives have + said, and four times repeated it, 'An excise on distilled spirits + _shall_ be collected;' they say, 'It _shall not_ be collected. We + will punish, expel, and banish the officers who shall attempt the + collection.'" + +The peace commissioners returned to Philadelphia and made their report +on September 24. The next day, September 25, Washington issued a +proclamation calling out the troops. In it he again warned the +insurgents. The militia, already armed, accoutred, and equipped, and +awaiting marching orders, moved at once. Governor Mifflin at first +hesitated about his power to call out the militia, but when the +President's requisition was made, he summoned the legislature in special +session, and obtained from it a hearty support, with authority to accept +volunteers and offer a bounty. Thus fortified, he made a tour through +the lower counties of the State, and by his extraordinary popular +eloquence soon filled up the ranks. The old soldier led his troops in +person. Those of New Jersey were commanded by their governor, Richard +Howell of Revolutionary fame. These formed the right wing and marched to +rendezvous at Bedford to cross the mountains by the northern and +Pennsylvania route. The left wing, composed of the Virginia troops, +under the veteran Morgan, and those of Maryland, under Samuel Smith, a +brigadier-general in the army of the Revolution, assembled at Cumberland +to cross the mountains by Braddock's Road. The chief command was +confided to Governor Henry Lee of Virginia. Washington accompanied the +army as far as Bedford. Hamilton continued with it to Pittsburgh, which +was reached in the last days of October and the first of November, after +a wearisome march across the mountains in heavy weather. Arrived in the +western counties, the army found no opposition. + +Meanwhile, on October 2, the standing committee met again at Parkinson's +Ferry, and unanimously adopted resolutions declaring the general +submission, and explaining the reasons why signatures to the amnesty had +not been general. Findley and Redick were appointed to take these +resolutions to the President, and to urge him to stop the march of the +troops. They met the left wing at Carlisle. Washington received them +courteously, but did not consent to countermand the march. They hurried +back for more unequivocal assurances, which they hoped to be able to +carry to meet Washington on his way to review the right wing. On October +14, the day of the autumn elections, general submissions were +universally signed, and finally, on October 24, a third and last meeting +was held at Parkinson's Ferry, at which a thousand people attended, +when, with James Edgar, chairman, and Albert Gallatin, secretary, it was +resolved, first, that the civil authority was fully competent to punish +both past and future breaches of the law; secondly, that surrender +should be made of all persons charged with offenses, in default of which +the committee would aid in bringing them to justice; thirdly, that +offices of inspection might be opened, and that the distillers were +willing and ready to enter their stills. + +These resolutions were published in the "Pittsburgh Gazette." Findley +carried them to Bedford, but before he reached the army the President +had returned to Philadelphia. The march of the army was not stopped. The +two wings made a junction at Uniontown. Companies of horse were +scattered through the country. New submissions were made, and the oath +of allegiance, required by General Lee, was generally taken. + +Hamilton now investigated the whole matter of the insurrection, and it +was charged against him, and the charge is supported by Findley, with +names of persons, that he spared no effort to secure evidence to bring +Gallatin within the pale of an indictment. Of course he failed in this +purpose, if indeed it were ever seriously entertained. But the belief +that Gallatin was the arch-fiend, who instigated the Whiskey +Insurrection, had already become a settled article in the Federalist +creed, and for a quarter of a century, long after the Federalist party +had become a tradition of the past, the Genevan was held up to scorn and +hatred, as an incarnation of deviltry--an enemy of mankind. + +On the 8th of November, Hamilton, who remained with the army, wrote to +the President that General Lee had concluded to take hold of all who are +worth the trouble by the military arm, and then to deliver them over to +the disposition of the judiciary. In the mean time, he adds, "all +possible means are using to obtain evidence, and accomplices will be +turned against the others." + +The night of November 13, 1794, was appointed for the arrests; a +dreadful night Findley describes it to have been. The night was frosty; +at eight o'clock the horse sallied forth, and before daylight arrested +in their beds about two hundred men. The New Jersey horse made the +seizures in the Mingo Creek settlement, the hot-bed of the insurrection +and the scene of the early excesses. The prisoners were taken to +Pittsburgh, and thence, mounted on horses, and guarded by the +Philadelphia Gentlemen Corps, to the capital. Their entrance into +Cannonsburg is graphically described by Dr. Carnahan, president of +Princeton College, in his account of the insurrection. + + "The contrast between the Philadelphia horsemen and the prisoners + was the most striking that can be imagined. The Philadelphians were + some of the most wealthy and respectable men of that city. Their + uniform was blue, of the finest broadcloth. Their horses were large + and beautiful, all of a bay color, so nearly alike that it seemed + that every two of them would make a good span of coach horses. + Their trappings were superb. Their bridles, stirrups, and + martingales glittered with silver. Their swords, which were drawn, + and held elevated in the right hand, gleamed in the rays of the + setting sun. The prisoners were also mounted on horses of all + shapes, sizes, and colors; some large, some small, some long tails, + some short, some fat, some lean, some every color and form that can + be named. Some had saddles, some blankets, some bridles, some + halters, some with stirrups, some with none. The riders also were + various and grotesque in their appearance. Some were old, some + young, some hale, respectable looking men; others were pale, + meagre, and shabbily dressed. Some had great coats,--others had + blankets on their shoulders. The countenance of some was downcast, + melancholy, dejected; that of others, stern, indignant, manifesting + that they thought themselves undeserving such treatment. Two + Philadelphia horsemen rode in front and then two prisoners, and two + horsemen and two prisoners, actually throughout a line extending + perhaps half a mile.... If these men had been the ones chiefly + guilty of the disturbance, it would have been no more than they + deserved. But the guilty had signed the amnesty, or had left the + county before the army approached." + +Dallas, the secretary of state, Gallatin's friend, was one of this +troop. Gallatin saw him soon after his return. In a letter to his wife +of December 3, Gallatin relates the experience of the trooper who had +little stomach for the work he had to do. + + "I saw Dallas yesterday. Poor fellow had a most disagreeable + campaign of it. He says the spirits, I call it the madness, of the + Philadelphia Gentlemen's Corps was beyond conception before the + arrival of the President. He saw a list (handed about through the + army by officers, nay, by a general officer) of the names of those + persons who were to be destroyed at all events, and you may easily + guess my own was one of the most conspicuous. Being one day at + table with sundry officers, and having expressed his opinion that, + if the army were going only to support the civil authority, and not + to do any military execution, one of them (Dallas did not tell me + his name, but I am told it was one Ross of Lancaster, aide-de-camp + to Mifflin) half drew a dagger he wore instead of a sword, and + swore any man who uttered such sentiments ought to be dagged. The + President, however, on his arrival, and afterwards Hamilton, took + uncommon pains to change the sentiments, and at last it became + fashionable to adopt, or at least to express, sentiments similar to + those inculcated by them." + +Randolph was, perhaps, not far out of the way in his fear of a civil war +should blood be drawn, and in his conviction that the influence of +Washington was the only sedative for the fevered political pulse. On +November 17 general orders were issued for the return of the army, a +detachment of twenty-five hundred men only remaining in the West, under +command of General Morgan. There were no further disturbances. The army +expenses gave a circulating medium, and the farmers, having now the +means to pay their taxes, made no further complaints of the excise law. +The total expense of the insurrection to the government was $800,000. + +Mr. Gallatin returned with his wife from his western home early in +November. He had been again chosen at the October elections to represent +Fayette in the Pennsylvania Assembly. Moreover, at the same time, he was +elected to represent the congressional district of Washington and +Allegheny in the House of Representatives of the United States. Of four +candidates Gallatin led the poll. Judge Brackenridge was next in order. +No better proof is needed of the firm hold Gallatin had in the esteem +and affection of the people. No doubt, either, that they understood his +principles, and relied upon his sincere attachment to the country he had +made his home. + +When he appeared to take his seat in the Assembly he found that his +election was contested. A petition was presented from thirty-four +persons calling themselves peaceable citizens of Washington County, +which stated that their votes had not been cast, because of the +disturbed condition of the country, and requested the Assembly to +declare the district to have been in a state of insurrection at the time +of the election, and to vacate the same. Mr. Gallatin knew the person +who procured the signatures, and also that the business originated in +the army. It was couched in terms insulting to all the members elect +from that district. After a protracted debate the election was declared +void on January 9, 1795. It was during this debate that Mr. Gallatin +made the celebrated speech called "The speech on the western elections," +in which occurs the confession already alluded to. Speaking of the +Pittsburgh resolutions of 1792, he said:-- + + "I might say that those resolutions did not originate at + Pittsburgh, as they were almost a transcript of the resolutions + adopted at Washington the preceding year; and I might even add that + they were not introduced by me at the meeting. But I wish not to + exculpate myself where I feel I have been to blame. The sentiments + thus expressed were not illegal or criminal; yet I will freely + acknowledge that they were violent, intemperate, and reprehensible. + For, by attempting to render the office contemptible, they tended + to diminish that respect for the execution of the laws which is + essential to the maintenance of a free government; but whilst I + feel regret at the remembrance, though no hesitation in this open + confession of that _my only political sin_, let me add that the + blame ought to fall where it is deserved." + +This was the first speech of Gallatin that appeared in print--simple, +lucid, convincing. The result of the new Assembly election would +naturally determine the right of the representatives of the contested +district to their seats in Congress. Word had gone forth from the +Treasury Department that Gallatin must not take his seat in Congress, +and the whippers-in took heed of the desire of their chief. A line of +instruction to Badollet, who lived at Greensburg in Washington County, +across the river from Gallatin's residence, determined the matter. +Gallatin warned him against the attempt that would be made to disaffect +that district because none of the representatives whose seats had been +vacated were residents of it. "Fall not into the snare," he wrote; "take +up nobody from your own district; reelect unanimously the same members, +whether they be your favorites or not. It is necessary for the sake of +our general character." Here is an instance of that true political +instinct which made of him "the ideal party leader." His advice was +followed, and all the members were reelected but one, who declined. Mr. +Gallatin returned to his seat in the Assembly on February 14, and +retained it until March 12, when he asked and obtained leave of absence. +He does not appear to have taken further part in the session. The +subjects, personal to himself, which occupied his attention during the +summer will be touched upon elsewhere. + +The pitiful business of the trial of the western prisoners needs only +brief mention. In May Gallatin was summoned before the grand jury as a +witness on the part of the government. The inquiry was finished May 12, +and twenty-two bills were found for treason. Against Fayette two bills +were found; one for misdemeanor in raising the liberty pole in +Uniontown. The petit jury was composed of twelve men from each of the +counties of Fayette, Washington, Allegheny, and Northumberland, but none +from Westmoreland. One man, a German from Westmoreland, who was +concerned in a riot in Fayette, was found guilty and condemned to death. +Mr. Gallatin, at the request of the jury, drew a petition to the +President, who granted a pardon. Washington extended mercy to the only +other offender who incurred the same penalty. + +To the close of this national episode, which, in its various phases of +incident and character, is of dramatic interest, Gallatin, through good +repute and ill repute, stood manfully by his constituents and friends. + +FOOTNOTES: + +[Footnote 3: Hamilton's _History of the Republic_, vi. 96.] + + + + +CHAPTER V + +MEMBER OF CONGRESS + + +The first session of the fourth Congress began at Philadelphia on +Monday, December 7, 1795. Washington was president, John Adams +vice-president. No one of Washington's original constitutional advisers +remained in his cabinet. Jefferson retired from the State Department at +the beginning of the first session of the third Congress. Edmund +Randolph, appointed in his place, resigned in a cloud of obloquy on +August 19, 1795, and the portfolio was temporarily in charge of Timothy +Pickering, secretary of war. Hamilton resigned the department of the +Treasury on January 31, 1795, and Oliver Wolcott, Jr., succeeded him in +that most important of the early offices of the government. General +Henry Knox, the first secretary of war, pressed by his own private +affairs and the interests of a large family, withdrew on December 28, +1794, and Timothy Pickering, the postmaster-general, had been appointed +in his stead January 2, 1795. The Navy Department was not as yet +established (the act creating it was passed April 30, 1798), but the +affairs which concerned this branch of the public service were under +the direction of the secretary of war. The administration of Washington +was drawing to a close. In the lately reconstructed cabinet, honest, +patriotic, and thorough in administration, there was no man of shining +mark. The Senate was still in the hands of the Federal party. The bare +majority which rejected Gallatin in the previous Congress had increased +to a sufficient strength for party purposes, but neither in the ranks of +the administration nor the opposition was there in this august +assemblage one commanding figure. + +The House was nearly equally divided. The post of speaker was warmly +contested. Frederick A. Muhlenberg of Pennsylvania, who had presided +over the House at the sessions of the first Congress, 1789-1791, and +again over the third, 1793-1795, was the candidate of the Federalists, +but was defeated by Jonathan Dayton of New Jersey, whose views in the +last session had drifted him into sympathy with the Republican +opposition. The House, when full, numbered one hundred and five members, +among whom were the ablest men in the country, veterans of debate versed +in parliamentary law and skilled in the niceties of party fence. In the +Federal ranks, active, conscious of their power, and proud of the great +party which gloried in Washington as their chief, were Robert Goodloe +Harper of South Carolina, Theodore Sedgwick of Massachusetts, Roger +Griswold and Uriah Tracy of Connecticut, who led the front and held the +wings of debate; while in reserve, broken in health but still in the +prime of life, the pride of his party and of the House, was Fisher Ames, +the orator of his day, whose magic tones held friend and foe in rapt +attention, while he mastered the reason or touched the heart. Upon these +men the Federal party relied for the vindication of their principles and +the maintenance of their power. Supporting them were William Vans Murray +of Maryland, Goodrich and Hillhouse of Connecticut, William Smith of +South Carolina, Sitgreaves of Pennsylvania, and in the ranks a +well-trained party. Opposed to this formidable array of Federal talent +was the Republican party, young, vigorous, and in majority, bold in +their ideas but as yet hesitating in purpose under the controlling if +not overruling influence of the name and popularity of Washington. + +[Illustration: Rob. G. Harper] + +Hamilton watched the shifting fortunes of his party from a distance, and +found time in the pressure of a large legal practice to aid each branch +of administration in turn with his advice. But though he still inspired +its councils, he no longer directed its course. In his Monticello home +Jefferson waited till the fruit was ripe for falling, occasionally +impatient that his followers did not more roughly shake the tree. + +The open rupture of Jefferson with Hamilton was the first great break in +the Federal administration; the lukewarmness of Madison, whose leanings +were always towards Jefferson, followed. + +At the head of the Republican opposition was Madison. Wise in council, +convincing in argument, an able and even adroit debater, he was an +admirable leader, but his tactics were rather of the closet than the +field. He was wanting in the personal vigor which, scorning defense, +delights in bold attack upon the central position of the enemy, and +carries opposition to the last limit of parliamentary aggression. With +this mildness of character, though recognized as the leader of his +party, he, as a habit, waived his control upon the floor of the House, +and, reserving his interference for occasions when questions of +constitutional interpretation arose, left the general direction of +debate to William B. Giles of Virginia, a skillful tactician and a ready +debater, keen, bold, and troubled by no scruples of modesty, respect, or +reverence for friend or foe. Of equal vigor, but of more reserve, was +John Nicholas of Virginia--a man of strong intellect, reliable temper, +and with the dignity of the old school. To these were now added Albert +Gallatin and Edward Livingston. Edward Livingston, from New York, was +young, and as yet inexperienced in debate, but of remarkable powers. He +was another example of that early intellectual maturity which was a +characteristic of the time. + +When Congress met, the all-disturbing question was the foreign policy of +the United States. The influence of the French Revolution upon American +politics was great. The Federalists, conservative in their views, held +the new democratic doctrines in abhorrence, and used the terrible +excesses of the French Revolution with telling force against their +Republican adversaries. The need of a strong government was held up as +the only alternative to anarchy. In the struggle which now united Europe +against the French republic, the sympathies of the Federalists were with +England. Hence they were accused of a desire to establish a monarchy in +the United States, and were ignominiously called the British party. +Shays's Rebellion in Massachusetts and the Whiskey Insurrection in +Pennsylvania gave point to their arguments. + +On the other side was the large and powerful party which, throughout the +war in the Continental Congress, under the confederation in the national +convention which framed and in the state conventions which ratified the +Constitution, had opposed the tendency to centralization, but had been +defeated by the yearning of the body of the plain people for a +government strong enough at least to secure them peace at home and +protection abroad. This natural craving being satisfied, the old +aversion to class distinctions returned. The dread of an aristocracy, +which did not exist even in name, threw many of the supporters of the +Constitution into the ranks of its opponents, who were democrats in name +and in fact. The proclamation of the rights of man awoke this latent +sentiment, and aroused an intense sympathy for the people of France. +This again was strengthened by the memory, still warm, of the services +of France in the cause of independence. Lafayette, who represented the +true French republican spirit, and held a place in the affections of the +American people second only to that of Washington, was languishing, a +prisoner to the coalition of sovereigns, in an Austrian dungeon. + +Jefferson returned from France deeply imbued with the spirit of the +French Revolution. His views were warmly received by his political +friends, and the principles of the new school of politics were rapidly +spread by an eager band of acolytes, whose ranks were recruited until +the feeble opposition became a powerful party. Democratic societies, +organized on the plan of the French Jacobin clubs, extended French +influence, and no doubt were aided in a practical way by Genet, whose +recent marriage with the daughter of George Clinton, the head of the +Republican party in New York, was an additional link in the bond of +alliance. + +During the second session of the third Congress Madison had led the +opposition in a mild manner; party lines were not yet strongly defined, +and the influence of Washington was paramount. In the interim between +its expiration and the meeting of the fourth Congress in December, the +country was wildly agitated by the Jay treaty. This document not +reaching America until after the adjournment of Congress in March, +Washington convened the Senate in extra and secret session on June 1, +and the treaty was ratified by barely two thirds majority. Imprudently +withheld for a time, it was at last made public by Senator Mason of +Virginia, one of the ten who voted against its ratification. It +disappointed the people, and was denounced as a weak and ignominious +surrender of American rights. The merchants of Boston, New York, +Philadelphia, and Charleston protested against it in public meetings. It +was burned, and the English flag was trailed in the dust before the +British minister's house at the capital. Jay was hung in effigy, and +Hamilton, who ventured to defend the treaty at a public meeting, was +stoned. To add to the popular indignation that the impressment of +American seamen had been ignored in the instrument, came the alarming +news that the British ministry had renewed their order to seize vessels +carrying provisions to France, whither a large part of the American +grain crop was destined. On the other hand, Randolph, the secretary of +state, had compromised the dignity of his official position in his +intercourse with Fauchet, the late French ambassador, whose +correspondence with his government, thrown overboard from a French +packet, had been fished up by a British man-of-war, and forwarded to +Grenville, by whom it was returned to America. Thus petard answered +petard, and the charge by the Republicans upon the Federalists of taking +British gold was returned with interest, and the accusation of receiving +bribe money was brought close home to Randolph, if not proved. + +Hard names were not wanting either; Jefferson was ridiculed as a +_sans-culotte_ and red-legged Democrat. Nor was Washington spared. He +was charged with an assumption of royal airs, with political hypocrisy, +and even with being a public defaulter; a charge which no one dared to +father, and which was instantly shown to be false and malicious. It was +made by Bache in "The Aurora," a contemptible sheet after the fashion of +"L'Ami du Peuple," Marat's Paris organ. + +Such was the temper of the people when the House of Representatives met +on December 7, 1795. The speaker, Dayton, was strongly anti-British in +feeling. He was a family connection of Burr, but there is no reason to +suppose that he was under the personal influence of that adroit and +unscrupulous partisan. On the 8th President Washington, according to his +custom, addressed both houses of Congress. This day for the first time +the gallery was thrown open to the public. When the reply of the Senate +came up for consideration, the purpose of the Republicans was at once +manifest. They would not consent to the approbation it expressed of the +conduct of the administration. They would not admit that the causes of +external discord had been extinguished "on terms consistent with our +national honor and safety," or indeed extinguished at all, and they +would not acknowledge that the efforts of the President to establish the +peace, freedom, and prosperity of the country had been "enlightened and +firm." Nevertheless the address was agreed to by a vote of 14 to 8. + +In the House a resolution was moved that a respectful address ought to +be presented. The opposition immediately declared itself. Objection was +made to an address, and in its stead the appointment of a committee to +wait personally on the President was moved. The covert intent was +apparent through the thin veil of expediency, but the Republicans as a +body were unwilling to go this length in discourtesy, and did not +support the motion. Only eighteen members voted for it. Messrs. Madison, +Sedgwick, and Sitgreaves, the committee to report an address, brought in +a draft on the 14th which was ordered to be printed for the use of the +members. The next day the work of dissection was begun by an objection +to the words "probably unequaled spectacle of national happiness" +applied to the country, and the words "undiminished confidence" applied +to the President. The words "probably unequaled" were stricken out +without decided opposition by a vote of forty-three to thirty-nine. +Opinions were divided on that subject even in the ranks of the +Federalists. The cause of dissatisfaction was the Jay treaty. The +address was recommitted without a division. The next day Madison brought +in the address with a modification of the clause objected to. In its new +form the "very great share" of Washington's zealous and faithful +services in securing the national happiness was acknowledged. The +address thus amended was unanimously adopted. In this encounter nothing +was gained by the Republicans. The people would not have endured an open +declaration of want of confidence in Washington. But the entering wedge +of the new policy was driven. The treaty was to be assailed. It was, +however, the pretext, not the cause of the struggle, the real object of +which was to extend the powers of the House, and subordinate the +executive to its will. Before beginning the main attack the Republicans +developed their general plan in their treatment of secondary issues; of +these the principal was a tightening of the control of the House over +the Treasury Department. + +In this Mr. Gallatin took the lead. His first measure was the +appointment of a standing Committee of Finance to superintend the +general operations of this nature,--an efficient aid to the Treasury +when there is accord between the administration and the House, an +annoying censor when the latter is in opposition. This was the beginning +of the Ways and Means Committee, which soon became and has since +continued to be the most important committee of the House. To it were to +be referred all reports from the Treasury Department, all propositions +relating to revenue, and it was to report on the state of the public +debt, revenue, and expenditures. The committee was appointed without +opposition. It consisted of fourteen members, William Smith, Sedgwick, +Madison, Baldwin, Gallatin, Bourne, Gilman, Murray, Buck, Gilbert, +Isaac Smith, Blount, Patten, and Hillhouse, and represented the strength +of both political parties. To this committee the estimates of +appropriations for the support of the government for the coming year +were referred. The next step was to bring to the knowledge of the House +the precise condition of the Treasury. To this end the secretary was +called upon to furnish comparative views of the commerce and tonnage of +the country for every year from the formation of the department in 1789, +with tables of the exports and imports, foreign and domestic, separately +stated, and with a division of the nationality of the carrying vessels. +Later, comparative views were demanded of the receipts and expenditures +for each year; the receipts under the heads of Loans, Revenue in its +various forms, and others in their several divisions; the expenditures, +also, to be classified under the heads of Civil List, Foreign +Intercourse, Military Establishment, Indian Department, Naval, etc. +Finally a call was made for a statement of the annual appropriations and +the applications of them by the Treasury. The object of Mr. Gallatin was +to establish the expenses of the government in each department of +service on a permanent footing for which annual appropriations should be +made, and for any extraordinary expenditure to insist on a special +appropriation for the stated object and none other. By keeping +constantly before the House this distinction between the permanent fund +and temporary exigencies, he accustomed it to take a practical business +view of its legislative duties, and the people to understand the +principles he endeavored to apply. + +In a debate at the beginning of the session, on a bill for establishing +trading houses with the Indians, Mr. Gallatin showed his hand by +declaring that he would not consent to appropriate any part of the war +funds for the scheme; nor, in view of the need of additional permanent +funds for the discharge of the public debt, would he vote for the bill +at all, unless there was to be a reduction in the expense of the +military establishment; and he would not be diverted from his purpose +although Mr. Madison advocated the bill because of its extremely +benevolent object. The Federal leaders saw clearly to what this doctrine +would bring them, and met it in the beginning. The first struggle +occurred when the appropriations for the service of 1796 were brought +before the House. Beginning with a discussion upon the salaries of the +officers of the mint, the debate at once passed to the principle of +appropriations. The Federalists insisted that a discussion of the merits +of establishments was not in order when the appropriations were under +consideration; that the House ought not, by withholding appropriations, +to destroy establishments formed by the whole legislature, that is, by +the Senate and House; that the House should vote for the appropriations +agreeably to the laws already made. This view was sanctioned by +practice. Mr. Gallatin immediately opposed this as an alarming and +dangerous principle. He insisted that there was a certain discretionary +power in the House to appropriate or not to appropriate for any object +whatever, whether that object were authorized or not. It was a power +vested in the House for the purpose of checking the other branches of +government whenever necessary. He claimed that this power was shown in +the making of yearly instead of permanent appropriations for the civil +list and military establishments, yet when the House desired to +strengthen public credit it had rendered the appropriation for those +objects permanent and not yearly. It was, therefore, "contradictory to +suppose that the House was bound to do a certain act at the same time +that they were exercising the discretionary power of voting upon it." +The debate determined nothing, but it is of interest as the first +declaration in Congress of the supremacy of the House of +Representatives. + +The great debate which, from the principles involved in it as well as +the argument and oratory with which they were discussed, made this +session of the House famous, was on the treaty with Great Britain. This +was the first foreign treaty made since the establishment of the +Constitution. The treaty was sent in to the House "for the information +of Congress," by the President, on March 1, with notice of its +ratification at London in October. The next day Mr. Edward Livingston +moved that the President be requested to send in a copy of the +instructions to the minister of the United States who negotiated the +treaty, together with the correspondence and other documents. A few days +later he amended his resolution by adding an exception of such of said +papers as any existing negotiations rendered improper to disclose. The +Senate in its ratification of the treaty suspended the operation of the +clause regulating the trade with the West Indies, on which Great Britain +still imposed the old colonial restriction, and recommended the +President to open negotiations on this subject; and in fact such +negotiations were in progress. The discussion was opened on the Federal +side by a request to the gentlemen in favor of the call to give their +reasons. Mr. Gallatin supported the resolution, and expressed surprise +at any objection, considering that the exception of the mover rendered +the resolution of itself unexceptionable. The President had not informed +the House of the reasons upon which the treaty was based. If he did not +think proper to give the information sought for, he would say so to +them. A question might arise whether the House should get at those +secrets even if the President refused the request, but that was not the +present question. In reply to Mr. Murray, who asserted that the treaty +was the supreme law of the land, and that there was no discretionary +power in the House except on the question of its constitutionality, Mr. +Gallatin said that Congress possessed the power of regulating +trade,--perhaps the treaty-making power clashed with that,--and +concluded by observing that the House was the grand inquest of the +nation, and that it had the right to call for papers on which to ground +an impeachment. At present he did not contemplate an exercise of that +right. Mr. Madison said it was now to be decided whether the general +power of making treaties supersedes the powers of the House of +Representatives, particularly specified in the Constitution, so as to +give to the executive all deliberative will and leave the House only an +executive and ministerial instrumental agency; and he proposed to amend +the resolution so as to read, "except so much of said papers as in his +(the President's) judgment it may be inconsistent with the interest of +the United States at this time to disclose." But his motion was defeated +by a vote of 47 nays to 37 yeas. + +The discussion being resumed in committee of the whole, the expressions +of opinion were free on both sides, but so moderate that one of the +members made comment on the calmness and temper of the discussion. +Nicholas said that, if the treaty were not the law of the land, the +President should be impeached. But the parts of the treaty into which +the President had not the right to enter, he could not make law by +proclamation. Swanwick supported the call as one exercised by the House +of Commons. On the Federal side, Harper said that the papers were not +necessary, and, being unnecessary, the demand was an improper and +unconstitutional interference with the executive department. If he +thought them necessary, he would change the milk and water style of the +resolutions. In that case the House had a right to them and he had no +idea of requesting as a favor what should be demanded as a right. +Gallatin, he said, had declared that it was a request, but that in case +of refusal it might be considered whether demand should not be made, and +he charged that when, at the time the motion was made, the question had +been asked, what use was to be made of the papers, Gallatin did not and +could not reply. Mr. Gallatin answered that whether the House had a +discretionary power, or whether it was bound by the instrument, there +was no impropriety in calling for the papers. He hoped to have avoided +the constitutional question in the motion, but as the gentlemen had come +forward on that ground, he had no objection to rest the decision of the +constitutional power of Congress on the fate of the present question. He +would therefore state that the House had a right to ask for the papers. + +The constitutional question being thus squarely introduced, Mr. Gallatin +made an elaborate speech, which, from its conciseness in statement, +strength of argument, and wealth of citations of authority, was, to say +the least, inferior to no other of those drawn out in this memorable +struggle. In its course he compared the opinion of those who had opposed +the resolution to the saying of an English bishop, that the people had +nothing to do with the law but to obey it, and likened their conduct to +the servile obedience of a Parliament of Paris under the old order of +things. He concluded with the hope that the dangerous doctrine, that the +representatives of the people have not the right to consult their +discretion when about exercising powers delegated by the Constitution, +would receive its death-blow. Griswold replied in what by common consent +was the strongest argument on the Federal side. The call, at first view +simple, had, he said, become a grave matter. The gist of his objection +to it was that the people in their Constitution had made the treaty +power paramount to the legislative, and had deposited that power with +the President and Senate. + +Mr. Madison once more rose to the constitutional question. He said that, +if the passages of the Constitution be taken literally, they must clash. +The word _supreme_, as applied to treaties, meant as over the state +Constitutions, and not over the Constitution and laws of the United +States. He supported Mr. Gallatin's view of the congressional power as +cooeperative with the treaty power. A construction which made the treaty +power omnipotent he thought utterly inadmissible in a constitution +marked throughout with limitations and checks. + +Mr. Gallatin again claimed the attention of the House, as the original +question of a call for papers had resolved itself into a discussion on +the treaty-making power. In the treaty of peace of 1783 there were +three articles which might be supposed to interfere with the legislative +powers of the several States: 1st, that which related to the payment of +debts; 2d, the provision for no future confiscations; 3d, the +restitution of estates already confiscated. The first could not be +denied. "Those," he said, "might be branded with the epithet of +disorganizers, who threatened a dissolution of the Union in case the +measures they dictated were not obeyed; and he knew, although he did not +ascribe it to any member of the House, that men high in office and +reputation had industriously spread an alarm that the Union would be +dissolved if the present motion was carried." He took the ground that a +treaty is not valid, and does not bind the nation as such, till it has +received the sanction of the House of Representatives. Mr. Harper closed +the argument on the Federal side. On March 24 the resolution calling for +the papers was carried by a vote of yeas 62, nays 37, absent 5, the +speaker 1 (105). Livingston and Gallatin were appointed to present the +request to the President. + +On March 30 the President returned answer to the effect that he +considered it a dangerous precedent to admit this right in the House; +that the assent of the House was not necessary to the validity of a +treaty; and he absolutely refused compliance with the request. The +letter of instructions to Jay would bear the closest examination, but +the cabinet scorned to take shelter behind it, and it was on their +recommendation that the President's refusal was explicit. This message, +in spite of the opposition of the Federalists, was referred, by a vote +of 55 yeas to 37 nays, to the committee of the whole. This reference +involved debate. In his opposition to this motion, Mr. Harper said that +the motives of the friends of the resolution had been avowed by the +"gentleman who led the business, from Pennsylvania;" whereby it appears +that Mr. Gallatin led the Republicans in the first debate. During this +his first session he shared this distinction with Mr. Madison. At the +next he became the acknowledged leader of the Republican party. + +On April 3 the debate was resumed. This second debate was led by Mr. +Madison, who considered two points: 1st, the application for papers; 2d, +the constitutional rights of Congress. His argument was of course calm +and dispassionate after his usual manner. The contest ended on April 7, +with the adoption of two resolutions: 1st, that the power of making +treaties is exclusively with the President and Senate, and the House do +not claim an agency in making them, or ratifying them when made; 2d, +that when made a treaty must depend for the execution of its +stipulations on a law or laws to be passed by Congress; and the House +have a right to deliberate and determine the expediency or inexpediency +of carrying treaties into effect. These resolutions were carried by a +vote of 63 to 27. + +There was now a truce of a few days. In the meanwhile the country was +agitated to an extent which, if words mean anything, really threatened +an attempt at dissolution of the Union, if not civil war itself. The +objections on the part of the Republicans were to the treaty as a whole. +Their sympathies were with France in her struggle for liberty and +democratic institutions and against England, and their real and proper +ground of antipathy to the instrument lay in its concession of the right +of capture of French property in American vessels, whilst the treaty +with France forbade her to seize British property in American vessels. +The objections in detail had been formulated at the Boston public +meeting the year before. The commercial cities were disturbed by the +interference with the carrying trade; the entire coast, by the search of +vessels and the impressment of seamen; the agricultural regions, by the +closing of the outlet for their surplus product; the upland districts, +by the stoppage of the export of timber. But the country was without a +navy, was ill prepared for war, and the security of the frontier was +involved in the restoration of the posts still held by the British. + +The political situation was uncertain if not absolutely menacing. The +threats of disunion were by no means vague. The Pendleton Society in +Virginia had passed secession resolutions, and a similar disposition +appeared in other States. While the treaty was condemned in the United +States, British statesmen were not of one opinion as to the advantages +they had gained by Grenville's diplomacy. Jay's desire, expressed to +Randolph, "to manage so that in case of wars our people should be united +and those of England divided," was not wholly disappointed. And there is +on record the expression of Lord Sheffield, when he heard of the rupture +in 1812, "We have now a complete opportunity of getting rid of that most +impolitic treaty of 1794, when Lord Grenville was so perfectly duped by +Jay."[4] Washington's ratification of the treaty went far to correct the +hasty judgment of the people, and to reconcile them to it as a choice of +evils. Supported by this modified tone of public opinion, the +Federalists determined to press the necessary appropriation bills for +carrying the treaties into effect. Besides the Jay treaty there were +also before the House the Wayne treaty with the Indians, the Pinckney +treaty with Spain, and the treaty with Algiers. With these three the +House was entirely content, and the country was impatient for their +immediate operation. Wayne's treaty satisfied the inhabitants on the +frontier. The settlers along the Ohio, among whom was Gallatin's +constituency, were eager to avail themselves of the privileges granted +by that of Pinckney, which was a triumph of diplomacy; and all America, +while ready to beard the British lion, seems to have been in terror of +the Dey of Algiers. Mr. Sedgwick offered a resolution providing for the +execution of the four treaties. Mr. Gallatin insisted on and received a +separate consideration of each. That with Great Britain was reserved +till the rest were disposed of. It was taken up on April 14. Mr. Madison +opened the debate. He objected to the treaty as wanting in real +reciprocity; 2d, in insufficiency of its provisions as to the rights of +neutrals; 3d, because of its commercial restrictions. Other Republican +leaders followed, making strong points of the position in which the +treaty placed the United States with regard to France, to whom it was +bound by a treaty of commercial alliance, which was a part of the +contract of aid in the Revolutionary War; and also of the possible +injustice which would befall American claimants in the British courts of +admiralty. + +The Federalists clung to their ground, defended the treaty as the best +attainable, and held up as the alternative a war, for which the refusal +of the Republicans to support the military establishment and build up a +navy left the country unprepared. In justice to Jay, his significant +words to Randolph, while doubtful of success in his negotiation, should +be remembered: "Let us hope for the best and prepare for the worst." To +the red flag which the Federalists held up, Mr. Gallatin replied, +accepting the consequences of war if it should come, and gave voice to +the extreme dissatisfaction of the Virginia radicals with Jay and the +negotiation. He charged that the cry of war and threats of a +dissolution of the government were designed for an impression on the +timidity of the House. "It was through the fear of being involved in a +war that the negotiation with Great Britain had originated; under the +impression of fear the treaty had been negotiated and signed; a fear of +the same danger, that of war, had promoted its ratification; and now +every imaginary mischief which could alarm our fears was conjured up in +order to deprive us of that discretion which this House thought they had +a right to exercise, and in order to force us to carry the treaty into +effect." He insisted on the important principle that 'free ships make +free goods,' and complained of its abandonment by the negotiators. + +In a reply to this attack upon Jay, whose whole life was a refutation of +the charge of personal or moral timidity, Mr. Tracy passed the limits of +parliamentary courtesy. "The people," he said, "where he was most +acquainted, whatever might be the character of other parts of the Union, +were not of the stamp to cry hosannah to-day and crucify to-morrow; they +will not dance around a whiskey pole to-day and curse their government, +and upon hearing of a military force sneak into a swamp. No," said he, +"my immediate constituents, whom I very well know, understand their +rights and will defend them, and if they find the government will not +protect them, they will attempt at least to protect themselves;" and he +concluded, "I cannot be thankful to that gentleman for coming all the +way from Geneva to give Americans a character for pusillanimity." He +held it madness to suppose that if the treaty were defeated war could be +avoided. Called to order, he said that he might have been too personal, +and asked pardon of the gentleman and of the House. + +The brilliant crown of the debate was the impassioned speech of Fisher +Ames, the impression of which upon the House and the crowded gallery is +one of the traditions of American oratory. The scene, as it has been +handed down to us, resembles, in all save its close, that which +Parliament presented when Chatham made his last and dying appeal. Like +the great earl, Ames rose pale and trembling from illness to address a +House angry and divided. Defending himself and the Federal party against +the charge of being in English interest, he said, "Britain has no +influence, and can have none. She has enough--and God forbid she ever +should have more. France, possessed of popular enthusiasm, of party +attachments, has had and still has _too much influence_ on our +politics,--any foreign influence is too much and ought to be destroyed. +I detest the man and disdain the spirit that can ever bend to a mean +subserviency to the views of any nation. It is enough to be American. +That character comprehends our duties and ought to engross our +attachments." Considering the probable influence on the Indian tribes of +the rejection of the treaty, he said, "By rejecting the Posts we light +the savage fires, we bind the victims.... I can fancy that I listen to +the yells of savage vengeance and shrieks of torture. Already they seem +to sigh in the west wind,--already they mingle with every echo from the +mountains." His closing words again bring Chatham to mind. "Yet I have +perhaps as little personal interest in the event as any one here. There +is, I believe, no member who will not think his chance to be a witness +of the consequences greater than mine. If, however, the vote should pass +to reject, and a spirit should rise, as rise it will, with the public +disorders to make confusion worse confounded, even I, slender and almost +broken as my hold upon life is, may outlive the government and +Constitution of my country." This appeal, supported by the petitions and +letters which poured in upon the House, left no doubt of the result. An +adjournment was carried, but the speech was decisive. The next day, +April 29, it was resolved to be expedient to make the necessary +appropriations to carry the treaty into effect. The vote stood 49 ayes +to 49 nays, and was decided in the affirmative by Muhlenberg, who was in +the chair. But the House would not be satisfied without an expression of +condemnation of the instrument. On April 30 it was resolved that in the +opinion of the House the treaty was objectionable. + +While Mr. Gallatin in this debate rose to the highest rank of +statesmanship, he showed an equal mastery of other important subjects +which engaged the attention of the House during the session. He was +earnest for the protection of the frontier, but had no good opinion of +the Indians. "Twelve years had passed," he said, "since the peace of +1783; ever since that time he had lived on the frontier of Pennsylvania. +Not a year of this period had passed, whether at war or peace, that some +murders had not been committed by the Indians, and yet not an act of +invasion or provocation by the inhabitants." In the matter of +impressment of American seamen, he urged the lodging of sufficient power +in the executive. Men had been impressed, and he held it to be the duty +of the House to take notice of it by war or negotiation. In the +establishment of land offices for the sale of the western lands he +brought to bear upon legislation his practical experience. He urged that +the tracts for sale be divided, and distinctions be made between large +purchasers and actual settlers--proposing that the large tracts be +sold at the seat of government, and the small on the territory itself. +He instanced the fact that in 1792 all the land west of the Ohio was +disposed of at 1_s_. 6_d_. the acre, and a week afterwards was resold at +$1.50, so that the money which should have gone into the treasury went +to the pockets of speculators. He also suggested that the proceeds of +the sales should be a fund to pay the public debt, and that the public +stock should always be received at its value in payment for land; a plan +by which the land would be brought directly to the payment of the debt, +as foreigners would gladly exchange the money obligations of the +government for land. On the question of taxation he declared himself in +favor of direct taxes, and held that a tax on houses and lands could be +levied without difficulty. He would satisfy the people that it was to +pay off the public debt, which he held to be a public curse. He +supported the excise duty on stills under regulations which would avoid +the watching of persons and houses and inspection by officers, and +proposed that licenses be granted for the time applied for. + +The military establishment he opposed in every way, attacked the +principle on which it was based, and fought every appropriation in +detail, from the pay of a major-general to the cost of uniforms for the +private soldiers. He was not afraid of the army, he said, but did not +think that it was necessary for the support of the government or +dangerous to the liberties of the people; moreover, it cost six hundred +thousand dollars a year, which was a sum of consequence in the condition +of the finances. + +The navy found no more favor in his eyes. He denied that fleets were +necessary to protect commerce. He challenged its friends to show, from +the history of any nation in Europe as from our own, that commerce and +the navy had gone hand in hand. There was no nation except Great +Britain, he said, whose navy had any connection with commerce. Navies +were instruments of power more calculated to annoy the trade of other +nations than to protect that of the nations to which they belonged. The +price England had paid for her navy was a debt of three hundred millions +of pounds sterling. He opposed appropriations even for the three +frigates, United States, Constitution, and Constellation,--the +construction of which had been ordered,--the germs of that navy which +was later to set his theory at naught, redeem the honor of the flag, +protect our commerce, and release the country and the civilized world +from ignominious tribute to the Mediterranean pirates, who were +propitiated in this very session only at the cost of a million of +dollars to the Treasury of the United States, and by the gift of a +frigate. + +In the debate over the payment of the sum of five millions, which the +United States Bank had demanded from the government, the greatest part +of which had been advanced on account of appropriations, he lamented the +necessity, but urged the liquidation. This was the occasion of another +personal encounter. In reply to a charge of Gallatin that the +Federalists were in favor of debt, Sedgwick alluded to Gallatin's part +in the Whiskey Insurrection, and said that none of those gentlemen whom +Gallatin had charged with "an object to perpetuate and increase the +public debt" had been known to have combined "in every measure which +might obstruct the operation of law," nor had declared to the world +"that the men who would accept of the offices to perform the necessary +functions of government were lost to every sense of virtue;" "that from +them was to be withheld every comfort of life which depended on those +duties which as men and fellow-citizens we owe to each other. If," he +said, "the gentlemen had been guilty of such nefarious practices, there +would have been a sound foundation for the charge brought against them." +Gallatin made no reply. This was the one political sin he had +acknowledged. His silence was his expiation. + +The Treasury Department and its control, past and present, was the +object of his unceasing criticism. In April, 1796, he said, "The +situation of the gentleman at the head of the department [Wolcott] was +doubtless delicate and unpleasant; it was the more so when compared with +that of his predecessor [Hamilton]. Both indeed had the same power to +borrow money when necessary; but that power, which was efficient in the +hands of the late secretary and liberally enough used by him, was become +useless at present. He wished the present secretary to be extricated +from his present difficulty. Nothing could be more painful than to be at +the head of that department with an empty treasury, a revenue inadequate +to the expenses, and no means to borrow." Nevertheless he feared that if +it were declared that the payment of the debt incurred by themselves +were to be postponed till the present generation were over, it might +well be expected that the principle thus adopted by them would be +cherished, that succeeding legislatures and administrations would follow +in their steps, and that they were laying the foundations of that +national curse,--a growing and perpetual debt. + +On the last day of the session W. Smith had challenged the correctness +of Gallatin's charge that there had been an increase of the public debt +by five millions under the present administration, and claimed that +there were errors in Gallatin's statement of more than four and a half +millions. Gallatin defended his figures. At this day it is impossible to +determine the merits of this dispute. + +One incident of this session deserves mention as showing the distaste of +Gallatin for anything like personal compliment, stimulated in this +instance, perhaps, by his sense of Washington's dislike to himself. It +had been the habit of the House since the commencement of the government +to adjourn for a time on February 22, Washington's birthday, that +members might pay their respects to the President. When the motion was +made that the House adjourn for _half an hour_, the Republicans +objected, and Gallatin, nothing loath to "bell the cat," moved that the +words "half an hour" be struck out. His amendment was lost without a +division. The motion to adjourn was then put and lost by a vote of 50 +nays to 38 ayes. The House waited on the President at the close of the +business of the day. On June 1 closed this long and memorable session, +in which the assaults of the Republicans upon the administration were so +persistent and embarrassing as to justify Wolcott's private note to +Hamilton, April 29, 1796, that "unless a radical change of opinion can +be effected in the Southern States, the existing establishments will not +last eighteen months. The influence of Messrs. Gallatin, Madison, and +Jefferson must be diminished, or the public affairs will be brought to a +stand." Here is found an early recognition of the political +"triumvirate," and Gallatin is the first named. + +Gallatin seems to have had some doubts as to his reelection to Congress. +As he did not reside in the Washington and Allegheny district, his name +was not mentioned as a candidate, and, to use his own words, he expected +to "be gently dropped without the parade of a resignation." In his +distaste at separation from his wife, the desire to abandon public life +grew upon him. But personal abuse of him in the newspapers exasperating +his friends, he was taken up again in October, and he arrived on the +scene, he says, too late to prevent it. He had no hope, however, of +success, and was resolved to resign a seat to which he was in every way +indifferent. "Ambition, love of power," he wrote to his wife on October +16, he had never felt, and he added, if vanity ever made one of the +ingredients which impelled him to take an active part in public life, it +had for many years altogether vanished away. He was nevertheless +reelected by the district he had represented. + + * * * * * + +The second session of the fourth Congress began on December 5, 1796. At +the beginning of this session Mr. Gallatin took the reins of the +Republican party, and held them till its close. The position of the +Federalists had been strengthened before the country by the energy of +Washington, who, impatient of the delays which Great Britain opposed to +the evacuation of the posts, marched troops to the frontier and obtained +their surrender. Adet, the new French minister, had dashed the feeling +of attachment for France by his impudent notice to the President that +the dissatisfaction of France would last until the executive of the +United States should return to sentiments and measures more conformable +to the interests and friendships of the two nations. In September +Washington issued his Farewell Address, in which he gave the famous +warning against foreign complications, which, approved by the country, +has since remained its policy; but neither the prospect of his final +withdrawal from the political and official field, nor the advice of +Jefferson to moderate their zeal, availed to calm the bitterness of the +ultra Republicans in the House. + +The struggle over the answer to the President's message, which Fisher +Ames on this occasion reported, was again renewed. An effort was made to +strike out the passages complimentary to Washington and expressing +regret at his approaching retirement. Giles, who made the motion, went +so far as to say that he 'wished him to retire, and that this was the +moment for his retirement, that the government could do very well +without him, and that he would enjoy more happiness in his retirement +than he possibly could in his present situation.' For his part he did +not consider Washington's administration either "wise or firm," as the +address said. Gallatin made a distinction between the administration and +the legislature, and in lieu of the words, wise, firm, and patriotic +administration, proposed to address the compliment directly to the +wisdom, firmness, and patriotism of Washington. But Ames defended his +report, and it was adopted by a vote of 67 to 12. Gallatin voted with +the majority, but Livingston, Giles, and Macon held out with the small +band of disaffected, among whom it is amusing also to find Andrew +Jackson, who took his seat at this Congress to represent Tennessee, +which had been admitted as a State at the last session.[5] + +The indebtedness of the States to the general government, in the old +balance sheet, on the payment of which Gallatin insisted, was a subject +of difference between the Senate and the House. Gallatin was appointed +chairman of the committee of conference on the part of the House. The +reduction of the military establishment, which he wished to bring down +to the footing of 1792, was again insisted upon. Gallatin here +ingeniously argued against the necessity for the number of men +proposed, that it was a mere matter of opinion, and if it was a matter +of opinion, it was not strictly necessary, because if necessary it was +no longer a matter of opinion. Naval appropriations were also opposed, +on the ground that a navy was prejudicial to commerce. Taxation, direct +and indirect, and compensation to public officers were also subjects of +debate at this session. On the subject of appropriations, general or +special, he was uncompromising. He charged upon the Treasury Department +that notwithstanding the distribution of the appropriations they thought +themselves at liberty to take money from an item where there was a +surplus and apply it to another where it was wanted. To check such +irregularity, he secured the passage of a resolution ordering that "the +several sums shall be solely applied to the objects for which they are +respectively appropriated," and tacked it to the appropriation bill. The +Senate added an amendment removing the restriction, but Gallatin and +Nicholas insisting on its retention, the House supported them by a vote +of 52 to 36, and the Senate receded. + +Notwithstanding the apparent enthusiasm of the House in the early part +of the session, when the tricolor of France, a present from the French +government to the United States, was sent by Washington to Congress, to +be deposited with the archives of the nation, French influence was on +the wane. The common sense of the country got the better of its +passion. In the reaction the Federalists regained the popular favor for +a season. + +Whatever latent sympathy the French people may have had for America as +the nation which set the example of resistance to arbitrary rule, the +French government certainly was moved by no enthusiasm for abstract +rights. Its only object was to check the power of their ancient enemy, +and deprive it of its empire beyond the seas. Nevertheless, France did +contribute materially to American success. The American government and +people acknowledged the value of her assistance, and, in spite of the +prejudices of race, there was a strong bond of sympathy between the two +nations; and when, in her turn, France, in 1789, threw off the feudal +yoke, she expected and she received the sympathy of America. Beyond this +the government and the people of the United States could not and would +not go. The position of France in the winter of 1796-97 was peculiar. +She was at war with the two most formidable powers of Europe,--Austria +and England, the one the mistress of Central Europe, the other supreme +ruler of the seas. The United States was the only maritime power which +could be opposed to Great Britain. The French government determined to +secure American aid by persuasion, if possible, otherwise by threat. The +Directory indiscreetly appealed from the American government to the +American people, forgetting that in representative governments these are +one. Nor was the precedent cited in defense of this unusual +proceeding--namely, the appeal of the American colonists to the people +of England, Ireland, and Canada to take part in the struggle against the +British government--pertinent; for that was an appeal to sufferers under +a common yoke. + +The enthusiasm awakened in France by the dramatic reception of the +American flag, presented by Monroe to the French Convention, was +somewhat dampened by the cooler manner with which Congress received the +tricolor, and was entirely dashed by the moderation of the reply of the +House to Washington's message. The consent of the House to the +appropriations to carry out the Jay Treaty decided the French Directory +to suspend diplomatic relations with the United States. The marvelous +successes of Bonaparte in Italy over the Austrian army encouraged Barras +to bolder measures. The Directory not only refused to receive Charles C. +Pinckney, the new American minister, but gave him formal notice to +retire from French territory, and even threatened him with subjection to +police jurisdiction. In view of this alarming situation, President Adams +convened Congress. + +The first session of the fifth Congress began at Philadelphia on Monday, +May 15, 1797. Jonathan Dayton was reelected speaker of the House. Some +new men now appeared on the field of national debate: Samuel Sewall and +Harrison Gray Otis from Massachusetts, James A. Bayard from Delaware, +and John Rutledge, Jr., from South Carolina. Madison and Fisher Ames did +not return, and their loss was serious to their respective parties. +Madison was incontestably the finest reasoning power, and Ames, as an +orator, had no equal in our history until Webster appeared to dwarf all +other fame beside his matchless eloquence. Parties were nicely balanced, +the nominal majority being on the Federal side. Harper and Griswold +retained the lead of the administration party. Giles still led the +Republican opposition, but Gallatin was its main stay, always ready, +always informed, and already known to be in the confidence of Jefferson, +its moving spirit. The President's message was, as usual, the touchstone +of party. The debate upon it unmasked opinions. It was to all intents a +war message, since it asked provision for war. The action of France left +no alternative. The Republicans recognized this as well as the +Federalists. They must either respond heartily to the appeal of the +executive to maintain the national honor, or come under the charge they +had brought against the Federalists of sympathy with an enemy. At first +they sought a middle ground. Admitting that the rejection of our +minister and the manner of it, if followed by a refusal of all +negotiation on the subject of mutual complaints, would put an end to +every friendly relation between the two countries, they still hoped that +it was only a suspension of diplomatic intercourse. Hence, in response +to the assurance in the message that an attempt at negotiation would +first be made, Nicholas moved an amendment in this vein. The Federalists +opposed all interference with the executive, but the Republicans took +advantage of the debate to clear themselves of any taint of unpatriotic +motives in their semi-opposition. The Federalists, repudiating the +charge of British influence, held up Genet to condemnation, as making an +appeal to the people, Fauchet as fomenting an insurrection, and Adet as +insulting the government. The Republicans retorted upon them Grenville's +proposition to Mr. Pinckney, to support the American government against +the dangerous Jacobin factions which sought to overturn it. Gallatin +deprecated bringing the conduct of foreign relations into debate, and +hoped that the majority would resist the rashness which would drive the +country into war; he claimed that a disposition should be shown to put +France on an equal footing with other nations. He would offer an +ultimatum to France. Harper closed the debate in a powerful and +brilliant speech, opposing the amendment because he was for peace, and +because peace could only be maintained by showing France that we were +preparing for war. So the rival leaders based their opposite action on a +common ground. Dayton, the speaker, now embodied Gallatin's idea in +another form, and introduced a paragraph to the effect that "the House +receive with the utmost satisfaction the information of the President +that a fresh attempt at negotiation will be instituted, and cherish the +hope that a mutual spirit of conciliation and a disposition on the part +of the United States to place France on grounds as favorable as other +countries will produce an accommodation compatible with the engagements, +rights, and honor of our nation." + +Kittera, who was one of the committee on the address, then moved to add +after "mutual spirit of conciliation" the clause, "to compensate for any +injury done to our neutral rights," etc. This both Harper and Gallatin +opposed. Gallatin objected to being forced to this choice. To vote in +its favor was a threat, if compensation were refused; to vote against it +was an abandonment of the claim. But he should oppose it, if forced to a +choice. The Federal leaders insisted; the previous question was ordered, +51 to 48. Here Mr. Gallatin showed himself the leader of his party. He +stated that, the majority having determined the question, it was now a +choice of evils, and he should vote for the amendment, and it was +adopted, 78 ayes to 21 nays. Among the nays were Harper, the Federalist +leader, Giles, the nominal chief of the Republicans, and Nicholas, high +in rank in that party. But the last word was not yet said. Edward +Livingston, who day by day asserted himself more positively, denied that +the conduct of the executive had been "just and impartial to foreign +nations," and moved to strike out the statement; Gallatin was more +moderate. Though he did not believe that in every instance the +government had been just and impartial, yet, generally speaking, it had +been so. He did not approve the British treaty, though he attributed no +bad motives to its makers; but he did not think that the laws respecting +the subordinate departments of the executive and judiciary had been +fairly executed. He therefore would not consent to the sentence in the +answer to the address, that the House did not hesitate to declare that +"they would give their most cordial support to principles so +deliberately and uprightly established." + +What, he asked, were these principles? Otis denounced this as an artful +attempt to cast a censure, not only on the executive, but on all the +departments of government, and Allen of Connecticut declared "that there +was American blood enough in the House to approve this clause and +American accent enough to pronounce it." The rough prejudice of the +Saxon against the Latin race showed itself in this language, and +expressed the antagonism which Mr. Gallatin found to increase with his +political progress. Both the resolution and the amendment were defeated, +53 nays to 45 yeas. But when the final vote came upon the address, Mr. +Gallatin, with that practical sense which made him the sheet anchor of +his party in boisterous weather, voted with the Federalists and carried +the moderate Republicans with him. The vote was 62 to 36. Among the +irreconcilables the name of Edward Livingston is recorded. + +The answer of the President was a model of good sense. "No event can +afford me so much cordial satisfaction as to conduct a negotiation with +the French Republic to a removal of prejudices, a correction of errors, +a dissipation of umbrages, an accommodation of all differences, and a +restoration of harmony and affection to the mutual satisfaction of both +nations." + +This was the leading debate of the session. The situation was too grave +for trifling. On June 5, two days after the President's reply, +resolutions were introduced to put the country in a state of defense. +Gallatin struggled hard to keep down the appropriations, and opposed the +employment of the three frigates, which as yet had not been equipped or +manned. If they got to sea, the President would have no option except to +enforce the disputed articles of the French treaty. Gallatin laid down +also the law of search in accordance with the law of nations, and +pointed out that resistance to search or capture by merchantmen would +not only lead to war, but was war. In the remaining acts of the session +he was in favor of the defense of ports and harbors, with no preference +as to fortification on government territory; in favor of a prohibition +of the export of arms; against raising an additional corps of artillery; +against expatriation of persons who took service under foreign +governments. He opposed the duty on salt as unequal and unnecessary, and +sought to have the loan, which became necessary, cut down to the exact +sum of the deficiency in the appropriations; and finally, on the +impeachment of William Blount, Senator of the United States, charged +with having conspired with the British government to attack the +Spaniards of St. Augustine, he pointed out the true method of procedure +in the preparation of the bill of impeachment and the arraignment of the +offender. + +The House adjourned on July 10. Jefferson complained of the weakness and +wavering of this Congress, the majority of which shifted with the breeze +of "panic or prowess." This was, however, a very narrow view; for at +this session the House fairly represented the prevailing sentiment of +the country, which was friendly to France as a nation, but indignant +with the insolence of her rulers. Gallatin, in the middle of the +session, wrote to his wife that the Republicans "were beating and beaten +by turns." He supposed that her father, Commodore Nicholson, 'thought +him too moderate and about to trim,' and then declared, 'Moderation and +firmness hath ever been, and ever will be, my motto.' Gallatin tells a +story of his colleague from Pennsylvania, the old Anti-Federalist, Blair +McClanachan, which shows the warmth of party feeling. They were both +dining with President Adams, who entertained the members of Congress in +turn. "McClanachan told the President that, by God, he would rather see +the world annihilated than this country united with Great Britain; that +there would not remain a single king in Europe within six months, etc., +all in the loudest and most decisive tone." + +Jefferson, who, as vice-president, presided over the debates in the +Senate, had no cause to complain of any hesitation in that body, in +which the Federalists had regained a clear working majority, giving him +no chance of a deciding vote. + + * * * * * + +The second session of the fifth Congress began on November 13, 1797. The +words of the President's address, "We are met together at a most +interesting period, the situation of the powers of Europe is singular +and portentous," was not an idle phrase. The star of Bonaparte already +dominated the political firmament. Europe lay prostrate at the feet of +the armies of the Directory. England, who was supposed to be the next +object of attack, was staggering under the load of debt; and the sailors +of her channel fleet had risen in mutiny. Even the Federalists, the +aristocrats as Mr. Gallatin delighted to call them, believed that she +was gone beyond recovery. But the admirers of France were no better +satisfied with the threatening attitude of the Directory towards +America, and eagerly waited news of the reception given to the envoys +extraordinary, Gerry, Pinckney, and Marshall, whom Adams with the +consent of the Senate dispatched to Paris in the summer. Even Jefferson +lost his taste for a French alliance, and almost wished there were "an +ocean of fire between the new and the old world." + +The tone of the President's address was considered wise on all sides, +and it was agreed that the answer should be general and not a subject +of contention. One of the members asked to be excused from going with +the House to the President, but Gallatin showed that, as there was no +power to compel attendance, no formal excuse was necessary. When the +motion was put as to whether they should go in a body as usual to +present their answer, Mr. Gallatin voted in the negative. He +nevertheless accompanied the members, who were received pleasantly by +President Adams and "treated to cake and wine." + +Harper was made the chairman of the Ways and Means Committee. Though of +high talents and a fine speaker, Gallatin found him a "great bungler" in +the business of the House, a large share of which fell upon his own +shoulders as well as the direction of the Republicans, of whom, +notwithstanding the jealousy of Giles, he now was the acknowledged +leader. As a member for Pennsylvania, Mr. Gallatin presented a memorial +from the Quakers with regard to the arrest of fugitive slaves on her +soil; the law of Pennsylvania declaring all men to be free who set foot +in that State except only servants of members of Congress. There was +already an opposition to hearing any petition with regard to slaves, but +Gallatin insisted on the memorial taking the usual course of reference +to a committee. He directed the House also in the correct path in its +legislation as to foreign coins. It was proposed to take from them the +quality of legal tender; but he showed that it was policy not to +discriminate against such coins until the mint could supply a +sufficiency for the use of the country. In this argument he estimated +the entire amount of specie in the United States at eight millions of +dollars. At this early period in his political career he was acquiring +that precise knowledge of the facts of American finance which later +served to establish the principles upon which it is based. + +This session was noteworthy by reason of the first personal encounter on +the floor of the House. It was between two Northern members, Lyon of +Vermont and Griswold of Connecticut. Gallatin stood by Lyon, who was of +his party, and showed that the House could not expel him, since it was +not at the time in organized session. As the Federalists would not +consent to censure Griswold, both offenders escaped even a formal +reproof. The general bitterness of feeling which marked the summer +session was greatly modified in the expectant state of foreign politics; +but the occasion for display of political divergence was not long +delayed. + +On January 18, 1798, Mr. Harper, who led the business of the House, +moved the appropriation for foreign intercourse. This was seized upon by +the opposition to advance still further their line of attack by a +limitation of the constitutional prerogative of the President. In +addition to the usual salaries of the envoys to Great Britain and +France, appropriations were asked for the posts at Madrid, Lisbon, and +Berlin, which last Mr. Adams had designated as a first-class mission. +The discussion on the powers of the President, and the extent to which +they might be controlled by paring down the appropriations, lifted the +debate from the narrow ground of economy in administration to the +higher plane of constitutional powers. Nicholas opened on the +Republican side by announcing that it was seasonable to bring back the +establishment of the diplomatic corps to the footing it had been on +until the year 1796. In all governments like our own he declared that +there was a tendency to a union and consolidation of all its parts into +the executive, and the limitation and annexion of the parts with each +other as settled by the Constitution would be destroyed by this +influence unless there were a constant attention on the part of the +legislature to resist it. The appointment of a minister plenipotentiary +to Prussia, with which we had little or no commercial intercourse, +offered an opportunity to determine this limitation. Harper said that +this was a renewal of the old charge that foreign intercourse was +unnecessary, and the old suggestion that our commerce ought to be given +up or left to shift for itself. Mr. Gallatin laid down extreme theories +which have never yet found practical application. He took the question +at once from party or personal ground by admitting that the government +was essentially pure, its patronage not extensive, or its effect upon +the legislative or any other branch of the government as yet material. +The Constitution had placed the patronage in the executive. There he +thought it was wisely placed. The legislature would be more corrupt +than the executive were it placed with them. While not willing at once +to give up political foreign intercourse, he thought that it should by +degrees be altogether declined. To it he ascribed the critical situation +of the country. Commercial intercourse could be protected by the +consular system. He then argued that the power to provide for expenses +was the check intended by the Constitution. To this Griswold answered +that this doctrine of checks contained more mischief than Pandora's box; +Bayard, that the checks were all directed to the executive, and that +they would check and counter-check until they _stopped the wheels of +government_.[6] When the President was manacled and at the mercy of the +House they would be satisfied. He held the executive to be the weakest +branch of the government, because its powers are defined; but the limits +of the House are undefined. + +As the debate advanced, Nicholas declared that the purpose of the +Republicans was to define the executive power and to put an end to its +extension through their power over appropriations. Later he would bring +in a motion to do away with all foreign intercourse. Goodrich answered +that the office of foreign minister was created by the Constitution +itself, and the power of appointment was placed in the President. The +House might speculate upon the propriety of doing away with all +intercourse with foreign powers, but could not decide on it, for +political intercourse did not depend on the sending of ministers abroad. +Foreign ministers would come here and the Constitution required their +reception. The idea that we should have no foreign intercourse was taken +from Washington's Farewell Address, but his words applied only to +alliances offensive and defensive. If ministers were abandoned, envoys +extraordinary must be sent, a much more dangerous practice; the only +choice was between ministers and spies. In conclusion he accused the +Republicans of making one continuous attack upon the administration, and +charged that the opposition to the appropriation bill was not a single +measure, but connected with others, and intended to clog the wheels of +government. + +The purpose of the Republicans being thus declared by Nicholas and +squarely met by the friends of the administration, Mr. Gallatin, March +1, 1798, summed up the opposition arguments in an elaborate speech three +hours and a quarter in length. He denied the novel doctrine that each +department had checks within itself, but none upon others; he claimed +that the principle of checks is admitted in all mixed governments. +Commercial intercourse, he said, is regulated by the law of nations, by +the municipal law of respective countries and by treaties of commerce, +the application of which is the province of consuls. What advantages, he +asked, had our commercial treaties given us, either that with France or +that with England? He excepted that part of the treaty with Great +Britain which arranged our difference with that power, as foreign to the +discussion. He claimed that the restriction which we had laid upon +ourselves by our commercial treaties had been attended with political +consequences fatal to our tranquillity. Washington had advised a +separation of our political from our commercial relations. The message +of President Adams intimated a different policy and alluded to the +balance of power in Europe as not to be forgotten or neglected. +Interesting as that balance may be to Europe, how does it concern us? We +shall never throw our weight into the scale. Passing from this to the +danger of the absorption of powers by the executive, he cited the +examples of the Cortes of Spain, the Etats Generaux of France, the Diets +of Denmark. In all these countries the executive is in possession of +legislative, of absolute powers. The fate of the European republics was +similar. Venice, Switzerland, and Holland had shown the legislative +powers merging into the executive. The object of the Constitution of the +United States is to divide and distribute the powers of government. With +uncontrolled command over the purse of the people the executive tends to +prodigality, to taxes, and to wars. He closed with a hope that a fixed +determination to prevent the increase of the national expenditure, and +to detach the country from any connection with European politics, would +tend to reconcile parties, promote the happiness of America, and +conciliate the affection of every part of the Union. No such admirable +exposition of the true American doctrine of non-interference with +European politics had at that time been heard in Congress. + +In reply, Harper insisted on the admission that the purpose of the +amendment of Nicholas was to restrain the President; that it was a +question of power, not of money. Mr. Gallatin admitted the right of +appointment, but denied that the House was bound to appropriate. Harper +rejoined that the offices did not originate with the President but with +the Constitution, and that they could not be destroyed by the action of +the House, and, leaving the general ground of debate, made a brilliant +attack upon the Republicans as revolutionists, whom he divided into +three classes: the philosophers, the Jacobins, and the _sans-culottes_. +The philosophers are most to be dreaded. "They declaim with warmth on +the miseries of mankind, the abuses of government, and the vices of +rulers; all which they engage to remove, providing their theories should +once be adopted. They talk of the perfectibility of man and of the +dignity of his nature; and, entirely forgetting what he is, declaim +perpetually about what he should be." Of Jacobins there are plenty. They +profit by the labors of others; tyrants in power, demagogues when not. +Fortunately for America there are few or no _sans-culottes_ among her +inhabitants. Jefferson, he said, returned from France a missionary to +convert Americans to the new faith, and he charged that the system of +French alliance and war with Great Britain by the United States was a +part of the scheme of the French revolutionists, and was imported into +this country. Gallatin and his friends he regarded in the light of an +enemy who has commenced a siege against the fortress of the +Constitution. + +The restricting amendment was lost, and the bill passed by a vote of 52 +yeas to 43 nays. Nor is it easy to see how the theory of Mr. Gallatin +with regard to diplomatic relations could have been applied successfully +with the existing channels of intercourse. Now that the ocean cable +brings governments into direct relation with each other, there is a +tendency to restrict the authority of ambassadors, for whom there is no +longer need, and the entire system will no doubt soon disappear. Mr. +Gallatin's speech was the delight of his party and his friends. He was +called upon to write it out, and two thousand copies of it were +circulated as the best exposition of Republican doctrine. + +Early in February the President informed Congress of certain captures +and outrages committed by a French privateer within the limits of the +United States, including the burning of an English merchantman in the +harbor of Charleston. On March 19, in a further special message, he +communicated dispatches from the American envoys in France, and also +informed Congress that he should withdraw his order forbidding merchant +vessels to sail in an armed condition. A collision might, therefore, +occur at any moment. + +On March 27, 1798, a resolution was introduced that it is not now +expedient for the United States to resort to war against the French +Republic; a second, to restrict the arming of merchant vessels; and a +third, to provide for the protection of the seacoast and the internal +defense of the country. Speaking to the first resolution, Mr. Gallatin +said that the United States had arrived at a crisis at which a stand +must be made, when the House must say whether it will resort to war or +preserve peace. If to war, the expense and its evils must be met; if +peace continue, then the country must submit: in either case American +vessels would be taken. It was a mere matter of calculation which course +would best serve the interest and happiness of the country. If he could +separate defensive from offensive war, he should be in favor of it; but +he could not make the distinction, and therefore he should be in favor +of measures of peace. The act of the President was a war measure. +Members of the House so designated it in letters to their constituents. + +On April 2 the President was requested to communicate the instructions +and dispatches from the envoys extraordinary, mention of which he had +made in his message of March 19. Gallatin supported the call. He said +that the President was not afraid of communicating information, as he +had shown in the preceding session, and that to withhold it would +endanger the safety of our commerce, or prevent the happy issue of +negotiation. On April 3 Mr. Gallatin presented a petition against +hazarding the neutrality and peace of the nation by authorizing private +citizens to arm and equip vessels. This was signed by forty members of +the Pennsylvania legislature. Protests of a similar character were +presented from other parts of the country. On the same day the President +sent in the famous X Y Z dispatches, in confidence. These letters +represented the names of Hottinguer, Bellamy, and Hauteval, the agents +of Talleyrand, the foreign minister of the First Consul, which were +withheld by the President. The mysterious negotiations contained a +distinct demand by Talleyrand of a douceur of 1,200,000 livres to the +French officials as a condition of peace. The effect was immediately to +strengthen the administration, Dayton, the speaker, passing to the ranks +of the Federalists. + +On the 18th the Senate sent down a bill authorizing the President to +procure sixteen armed vessels to act as convoys. Gallatin still held +firm. He admitted that from the beginning of the European contest the +belligerent powers had disregarded the law of nations and the +stipulations of treaties, but he still opposed the granting of armed +convoys, which would lead to a collision. Let us not, he said, act on +speculative grounds; if our present situation is better than war, let us +keep it. Better even, he said, suffer the French to go on with their +depredations than to take any step which may lead to war. + +Allen of Connecticut read a passage from the dispatches which envenomed +the debate. By it one of the French agents appears to have warned the +American envoys that they were mistaken in supposing that an exposition +of the unreasonable demands of France would unite the people of the +United States. He said, "You should know that the _diplomatic skill_ of +France and the _means_ she possesses in your country are sufficient to +enable her, with the _French party_ in America, to throw the blame which +will attend the rupture of the negotiations on the _Federalists_, as you +term yourselves, but on the _British party_, as France terms you, and +you may assure yourselves this will be done." Allen then charged upon +Gallatin that his language was that of a foreign agent. Gallatin replied +that the representatives of the French Republic in this country had +shown themselves to be the worst diplomatists that had ever been sent to +it, and he asked why the gentlemen who did not come forward with a +declaration of war (though they were willing to go to war without the +declaration) charge their adversaries with meaning to submit to France. +France might declare war or give an order to seize American vessels, but +as long as she did not, some hope remained that the state of peace might +not be broken; and he said in conclusion "that, notwithstanding all the +violent charges and personal abuse which had been made against him, it +would produce no difference in his manner of acting, neither prevent him +from speaking against every measure which he thought injurious to the +public interest, nor, on the other hand, inflame his mind so as to +induce him to oppose measures which he might heretofore have thought +proper." + +The war feeling ran high in the country; "Millions for defense, but not +one cent for tribute,"[7] was the popular cry. On May 28 Mr. Harper +introduced a bill to suspend commercial intercourse with France. +Gallatin thought this a doubtful measure. Its avowed purpose was to +distress France in the West Indies, but he said that in six months that +entire trade would be by neutral vessels. In the discussion on the bill +to regulate the arming of merchant vessels, he showed that it was the +practice of neutral European nations to allow such vessels to arm, but +not to regulate their conduct. Bonds are required in cases of letter of +marque, and the merchant who arms is bound not to break the laws of +nations or the agreements of treaties. Restriction was therefore +unnecessary. Government should not interfere. Commercial intercourse +with France was suspended June 13. + +In the pride of their new triumph and the intensity of their personal +feeling the Federalists overleaped their mark, and began a series of +measures which ultimately cost them the possession of the government +and their political existence. The first of these was the Sedition Bill, +which Jefferson believed to be aimed at Gallatin in person. Mr. Gallatin +met it at its inception with a statement of the constitutional +objections, viz., 1st, that there was no power to make such a law, and +2d, the special provision in the Constitution that the writ of _habeas +corpus_ shall not be suspended except in cases of rebellion and +invasion. There was neither. The second, the Alien Bill, gave the +President power to expel from the country all aliens. Over this measure +Gallatin and Harper had hot words. Gallatin charged upon Harper not only +a misrepresentation of the arguments of his opponents, but an +arraignment of the motives of others, while claiming all purity for his +own. Harper answered in words which show that Gallatin, for once, had +met warmth with warmth, and anger with anger. When, Harper said, a +gentleman, who is usually so cool, all at once assumes such a tone of +passion as to forget all decorum of language, it would seem as if the +observation had been properly applied. On the vote to strike out the +obnoxious sections, the Federalists defeated their antagonists, and on +June 21 the bill itself was passed with all its odious features by 46 to +40. + +On June 21 President Adams sent in a message with letters from Gerry, +who had remained at Paris after the return of Marshall and Pinckney, on +the subject of a loan. They contained an intimation from Talleyrand that +he was ready to resume negotiations. In this message Adams said, "I +will never send another minister to France without assurances that he +will be received, respected, and honored as the representative of a +great, free, powerful, and independent nation." On the 25th an act was +passed authorizing the commanders of merchant vessels to defend +themselves against search and seizure under regulations by the +President. On June 30 a further act authorized the purchase and +equipment of twelve vessels as an addition to the naval armament. To all +intents and purposes a state of war between the two countries already +existed. + +The 4th of July (1798) was celebrated with unusual enthusiasm all over +the United States, and the black cockade was generally worn. This was +the distinctive badge of the Federalists, and a response to the tricolor +which Adet had recommended all French citizens to wear in 1794. + +On July 5 a resolution was moved to appoint a committee to consider the +expediency of declaring, by legislative act, the state of relations +between the United States and the French Republic. Mr. Gallatin asked if +a declaration of war could not be moved as an amendment, but the +speaker, Mr. Dayton, made no reply. Mr. Gallatin objected that Congress +could not declare a state of facts by a legislative act. But this view, +if tenable then, has long since been abandoned. In witness of which it +is only necessary to name the celebrated resolution of the Congress of +1865 with regard to the recognition of a monarchy in Mexico. July 6 the +House went into committee of the whole on the state of the Union to +consider a bill sent down by the Senate abrogating the treaty with +France. The bill was passed on the 16th by a vote of 47 ayes to 37 nays, +Gallatin voting in the negative. The House adjourned the same day. + +While thus engaged in debates which called into exercise his varied +information and displayed not only the extent of his learning but his +remarkable powers of reasoning and statement, Mr. Gallatin never lost +sight of reform in the administration of the finances of the government. +To the success of his efforts to hold the Treasury Department to a +strict conformity with his theory of administration, Mr. Wolcott, the +secretary, gave ample if unwilling testimony. To Hamilton he wrote on +April 5, 1798, "The management of the Treasury becomes more and more +difficult. The legislature will not pass laws in gross; their +appropriations are minute. Gallatin, to whom they yield, is evidently +intending to break down this department by charging it with an +impracticable detail." + +During these warm discussions Gallatin rarely lost his self-control. +Writing to his old friend Lesdernier at this period, he said, "You may +remember I am blessed with a very even temper; it has not been altered +by time or politics." + + * * * * * + +The third session of the fifth Congress opened on December 3, 1798. On +the 8th, when the President was expected, Lieutenant-General Washington +and Generals Pinckney and Hamilton entered the hall and took their +places on the right of the speaker's chair. They had been recently +appointed to command the army of defense. + +The President's speech announced no change in the situation. "Nothing," +he said, "is discoverable in the conduct of France which ought to change +or relax our measures for defense. On the contrary, to extend and +invigorate them is our true policy. An efficient preparation for war can +alone insure peace. It must be left to France, if she is indeed desirous +of accommodation, to take the requisite steps. The United States will +steadily observe the maxims by which they have hitherto been governed." +The reply to this patriotic sentiment was unanimously agreed to, and was +most grateful to Adams, who thanked the House for it as "consonant to +the characters of representatives of a great and free people." + +On December 27 a peculiar resolution was introduced to punish the +usurpation of the executive authority of the government of the United +States in carrying on correspondence with the government of any foreign +prince or state. Gallatin thought this resolution covered too much +ground. The criminality of such acts did not lie in their being +usurpations, but in the nature of the crime committed. There was no +authority in the Constitution for a grant of such a power to the +President. To afford aid and comfort to the enemy was treason, but +there was no war, and therefore no enemy. He claimed the right to +himself and others to do all in his power to secure a peace, even by +correspondence abroad, and he would not admit that the ground taken by +the friends of the measure was a proper foundation for a general law. A +committee was, however, appointed, in spite of this remonstrance, to +consider the propriety of including in the general act all persons who +should commence or carry on a correspondence, by a vote of 65 to 23. A +bill was reported on January 9, when Gallatin endeavored to attach a +proviso that the law should not operate upon persons seeking justice or +redress from foreign governments; but his motion was defeated by a vote +of 48 to 37. Later, however, a resolution of Mr. Parker, that nothing in +the act should be construed to abridge the rights of any citizen to +apply for such redress, was adopted by a vote of 69 yeas to 27 nays. On +this vote Harper voted yea. Griswold, Otis, Bayard, and Goodrich were +found among the nays. Gallatin succeeded in carrying an amendment +defining the bill, after which it was passed by a vote of 58 to 36. + +Towards the close of January, 1799, a bill was brought in authorizing +the President to discontinue the restraints of the act suspending +intercourse with the French West India Islands, whenever any persons in +authority or command should so request. This was to invite a secession +of the French colonies from the mother country. Gallatin deprecated any +action which might induce rebellion against authority, or lead to +self-government among the people of the islands who were unfit for it. +Moreover, such action would remove still further every expectation of an +accommodation with France. The bill was passed by a vote of 55 to 37. He +objected to the bill to authorize the President to suspend intercourse +with Spanish and Dutch ports which should harbor French privateers, as +placing an unlimited power to interdict commerce in the hands of the +executive. The bill was carried by 55 to 37. On the question of the +augmentation of the navy he opposed the building of the seventy-fours. + +In February Edward Livingston presented a petition from aliens, natives +of Ireland, against the Alien and Sedition laws. Numerous similar +petitions followed; one was signed by 18,000 persons in Pennsylvania +alone. To postpone consideration of the subject, the Federalists sent +these papers to a select committee, against the protests of Livingston +and Gallatin. This course was the more peculiar because of the reference +of petitions of a similar character in the month previous to the +committee of the whole. The Federalists were abusing their majority, and +precipitating their unexpected but certain ruin. One more effort was +made to repeal the offensive penal act; the constitutional objection was +again pleaded, but the repeal was defeated by a vote of 52 in the +affirmative. Mr. Gallatin opposed these laws in all their stages, but, +failing in this, persistently endeavored to make them as good as +possible before they passed. Jefferson later said that nothing could +obliterate from the recollection of those who were witnesses of it the +courage of Gallatin in the "Days of Terror."[8] The vote of thanks to +Mr. Dayton, the speaker, was carried by a vote of 40 to 22. On March 3, +1800, this Congress adjourned. + + * * * * * + +The sixth Congress met at Philadelphia on December 2, 1799. The +Federalists were returned in full majority. Among the new members of the +House, John Marshall and John Randolph appeared for Virginia. Theodore +Sedgwick was chosen speaker. President Adams came down to the House on +the 3d and made the usual speech. The address in reply, reported by a +committee of which Marshall was chairman, was agreed to without +amendment. Adams was again delighted with the very respectful terms +adopted at the "first assembly after a fresh election, under the strong +impression of the public opinion and national sense at this interesting +and singular crisis." At this session it was the sad privilege of +Marshall to announce the death of Washington, "the Hero, the Sage, and +the Patriot of America." In the shadow of this great grief, party +passion was hushed for a while. + +Gallatin again led the Republican opposition; Nicholas and Macon were +his able lieutenants. The line of attack of the Republicans was clear. +If war could be avoided, the growing unpopularity of the Alien and +Sedition laws would surely bring them to power. The foreign-born voter +was already a factor in American politics. In January the law providing +for an addition to the army was suspended. Macon then moved the repeal +of the Sedition Law. He took the ground that it was a measure of +defense. Bayard adroitly proposed as an amendment that "the offenses +therein specified shall remain punishable as at common law, provided +that upon any prosecution it shall be lawful for the defendant to give +as his defense the truth of the matter charged as a libel." Gallatin +called upon the chair to declare the amendment out of order, as intended +to destroy the resolution, but the speaker declined, and the amendment +was carried by a vote of 51 to 47. The resolution thus amended was then +defeated by a vote of 87 to 1. The Republicans preferred the odious act +in its original form rather than accept the Federal interpretation of +it. + +On February 11, 1800, a bill was introduced into Congress further to +suspend commercial intercourse with France. It passed the House after a +short debate by a vote of 68 yeas to 28 nays. On this bill the +Republican leaders were divided. Nicholas, Macon, and Randolph opposed +it; but Gallatin, separating from his friends, carried enough of his +party with him to secure its passage. Returned by the Senate with +amendments, it was again objected to by Macon as fatal to the interests +of the Southern States, but the House resolved to concur by a vote of 50 +to 36. + +In March the country was greatly excited by the news of an engagement on +the 1st of February, off Guadaloupe, between the United States frigate +Constellation, thirty-eight guns, and a French national frigate, La +Vengeance, fifty-four guns. The House of Representatives called on the +secretary of the navy for information, and, by 84 yeas to 4 nays, voted +a gold medal to Captain Truxton, who commanded the American ship. John +Randolph's name is recorded in the negative. + +Notwithstanding this collision, the relations of the United States and +France were gradually assuming a kindlier phase. The Directory had +sought to drive the American government into active measures against +England. Bonaparte, chosen First Consul, at once adopted a conciliatory +tone. Preparing for a great continental struggle, he was concentrating +the energies and the powers of France. In May Mr. Parker called the +attention of the House to this change of conduct in the French +government and offered a resolution instructing the Committee on +Commerce to inquire if any amendments to the Foreign Intercourse Act +were necessary. Macon moved to amend so that the inquiry should be +whether it were not expedient to repeal the act. Gallatin opposed the +resolution on the ground that it was highly improper to take any +measures at the present time which would change the defensive system of +the country. The resolution was negatived,--43 nays to 40 yeas. + +One singular opposition of Gallatin is recorded towards the close of the +session; the Committee on the Treasury Department reported an amendment +to the act of establishment, providing that the secretary of the +treasury shall lay before Congress, at the commencement of every +session, a report on finance with plans for the support of credit, etc. +Gallatin and Nicholas opposed this bill, because it came down from the +Senate, which had no constitutional right to originate a money bill; but +Griswold and Harper at once took the correct ground that it was not a +bill, but a report on the state of the finances, in which the Senate had +an equal share with the House. The bill was passed by a vote of 43 to +39. It is worthy of note that the first report on the state of the +finances communicated under this act was by Mr. Gallatin himself the +next year, and that it was sent in to the Senate. The House adjourned on +May 14, 1800. + + * * * * * + +The second session of the sixth Congress was held at the city of +Washington, to which the seat of government had been removed in the +summer interval. After two southerly migrations they were now +definitively established at a national capital. The session opened on +November 17, 1800. On the 22d President Adams congratulated Congress on +"the prospect of a residence not to be changed." The address of the +House in reply was adopted by a close vote. + +The situation of foreign relations was changed. The First Consul +received the American envoys cordially, and a commercial convention was +made but secured ratification by the Senate only after the elimination +of an article and a limitation of its duration to eight years. While the +bill was pending in the Senate, Mr. Samuel Smith moved to continue the +act to suspend commercial intercourse with France. Mr. Gallatin opposed +this motion; at the last session he had voted for this bill because +there was only the appearance of a treaty. Now that the precise state of +negotiation was known, why should the House longer leave this matter to +the discretion of the President? The House decided to reject the +indiscreet bill by a vote of 59 to 37. An effort was also made to repeal +a part of the Sedition Law, and continue the rest in force, but the +House refused to order the engrossing of the bill, taking wise counsel +of Dawson, who said that, supported by the justice and policy of their +measures, the approaching administration would not need the aid of +either the alien, sedition, or common law. The opponents of the bill +would not consent to any modification. The last scenes of the session +were of exciting interest. + +Freed from the menace of immediate war, the people of plain common sense +recognized that the friendship of Great Britain was more dangerous than +the enmity of France. They dreaded the fixed power of an organized +aristocracy far more than the ephemeral anarchy of an ill-ordered +democracy; they were more averse to class distinctions protected by law +than even to military despotism which destroyed all distinctions, and +they preferred, as man always has preferred and always will prefer, +personal to political equality. The Alien and Sedition laws had borne +their legitimate fruit. The foreign-born population held the balance of +power; a general vote would have shown a large Republican or, it is more +correct to say, anti-Federalist majority. But the popular will could not +be thus expressed. Under the old system each elector in the electoral +college cast his ballot for president and vice-president without +designation of his preference as to who should fill the first place. New +England was solid for Adams, who, however, had little strength beyond +the limits of this Federal stronghold. New York and the Southern States +with inconsiderable exceptions were Republican. Pennsylvania was so +divided in the legislature that her entire vote would have been lost but +for a compromise which gave to the Republicans one vote more than to the +Federalists. Adams being out of the question, the election to the first +place lay between Jefferson and Burr, both Republicans. The Federalists, +therefore, had their option between the two Republican candidates, and +the result was within the reach of that most detestable of combinations, +a political bargain. Mr. Gallatin's position in this condition of +affairs was controlling. His loyalty to Jefferson was unquestioned, +while Burr was the favorite of the large Republican party in New York +whose leaders were Mr. Gallatin's immediate friends and warm supporters. +Both Jefferson and Burr were accused of bargaining to secure enough of +the Federalist vote to turn the scale. That Mr. Jefferson did make some +sacrifice of his independence is now believed. Whether Mr. Gallatin was +aware of any such compromise is uncertain. If such bargain were made, +General Samuel Smith was the channel of arrangement, and in view of the +inexplicable and ignominious deference of Jefferson and Madison to his +political demands, there is little doubt that he held a secret power +which they dared not resist. Gallatin felt it, suffered from it, +protested against it, but submitted to it. + +The fear was that Congress might adjourn without a conclusion. To meet +this emergency Mr. Gallatin devised a plan of balloting in the House, +which he communicated to Mr. Jefferson and Mr. Nicholas. It stated the +objects of the Federalists to be, 1st, to elect Burr; 2d, to defeat the +present election and order a new one; 3d, to assume _executive_ power +during the interregnum. These he considers, and suggests alternative +action in case of submission or resistance on the part of the +Republicans. The Federalists, holding three branches of government, +viz., the presidency, a majority in the Senate, and a majority in the +House, might pass a law declaring that one of the great officers +designated by the Constitution should act as president pro tempore, +which would be constitutional. But while Mr. Gallatin in this paragraph +admitted such a law to be constitutional, in the next he argued that the +act of the person designated by law, or of the president pro tempore, +assuming the power is clearly "unconstitutional." By this ingenious +process of reasoning, to which the strict constructionists have always +been partial, it might be unconstitutional to carry out constitutional +law. The assumption of such power was therefore, Mr. Gallatin held, +usurpation, to be resisted in one of two ways; by declaring the interval +till the next session of Congress an interregnum, allowing all laws not +immediately connected with presidential powers to take their course, and +opposing a silent resistance to all others; or by the Republicans +assuming the executive power by a joint act of the two candidates, or by +the relinquishment of all claims by one of them. On the other hand, the +proposed outlines of Republican conduct were, 1st, to persevere in +voting for Mr. Jefferson; 2d, to use every endeavor to defeat any law on +the subject; 3d, to try to persuade Mr. Adams to refuse his consent to +any such law and not to call the Senate on any account if there should +be no choice by the House. + +In a letter written in 1848 Mr. Gallatin said that a provision by law, +that if there should be no election the executive power be placed in the +hands of some public officer, was a revolutionary act of usurpation +which would have been put down by force if necessary. It was threatened +that, if any man should be thus appointed President he should instantly +be put to death, and bodies of men were said to be organized, in +Maryland and Virginia, ready to march to Washington on March 4 for that +purpose. The fears of violence were so great that to Governor McKean of +Pennsylvania was submitted the propriety of having a body of militia in +readiness to reach the capital in time to prevent civil war. From this +letter of Mr. Gallatin, then the last surviving witness of the election, +only one conclusion can be drawn: that the Republicans would have +preferred violent resistance to temporary submission, even though the +officer exercising executive powers was appointed in accordance with +law. Fortunately for the young country there was enough good sense and +patriotism in the ranks of the Federalists to avert the danger. + +On the suggestion of Mr. Bayard it was agreed by a committee of sixteen +members, one from each State, that if it should appear that the two +persons highest on the list, Jefferson and Burr, had an equal number of +votes, the House should immediately proceed in their own chamber to +choose the president by ballot, and should not adjourn until an +election should have been made. On the first ballot there was a tie +between Jefferson and Burr; the deadlock continued until February 17, +when the Federalists abandoned the contest, and Mr. Jefferson received +the requisite number of votes. Burr, having the second number, became +vice-president. + +Mr. Gallatin's third congressional term closed with this Congress. In +his first term he asserted his power and took his place in the councils +of the party. In his second, he became its acknowledged chief. In the +third, he led its forces to final victory. But for his opposition, war +would have been declared against France, and the Republican party would +have disappeared in the political chasm. But for his admirable +management, Mr. Jefferson would have been relegated to the study of +theoretical government on his Monticello farm, or to play second fiddle +at the Capitol to the music of Aaron Burr. + +In the foregoing analysis of the debates and resolutions of Congress, +and the recital of the part taken in them by Mr. Gallatin, attention has +only been paid to such of the proceedings as concerned the +interpretation of the Constitution or the forms of administration with +which Mr. Gallatin interested himself. From the day of his first +appearance he commanded the attention and the respect of his fellows. +The leadership of his party fell to him as of course. It was not grasped +by him. He was never a partisan. He never waived his entire +independence of judgment. His ingenuity and adroitness never tempted him +to untenable positions. Hence his party followed him with implicit +confidence. Yet while the debates of Congress, imperfectly reported as +they seem to be in its annals, show the deference paid to him by the +Republican leaders, and display the great share he took in the +definition of powers and of administration as now understood, his name +is hardly mentioned in history. Jefferson and Madison became presidents +of the United States. They, with Gallatin, formed the triumvirate which +ruled the country for sixteen years. Gallatin was the youngest of the +three.[9] To this political combination Gallatin brought a knowledge of +constitutional law equal to their own, a knowledge of international law +superior to that of either, and a habit of practical administration of +which they had no conception. The Republican party lost its chief when +Gallatin left the House; from that day it floundered to its close. + +In the balance of opinion there are no certain weights and measures. The +preponderance of causes cannot be precisely ascertained. The freedom +which the people of the United States enjoy to-day is not the work of +any one party. Those who are descended from its original stock, and +those whom its free institutions have since invited to full membership, +owe that freedom to two causes: the one, formulated by Hamilton, a +strong, central power, which, deriving its force from the people, +maintains its authority at home and secures respect abroad; the other, +the spirit of liberty which found expression in the famous declaration +of the rights of man. This influence Jefferson represented. It taught +the equality of man; not equality before the law alone, nor yet +political equality, but that absolute freedom from class distinction +which is true social equality; in a word, mutual respect. But for +Hamilton we might be a handful of petty States, in discordant +confederation or perpetual war; but for Jefferson, a prey to the class +jealousy which unsettles the social relations and threatens the +political existence of European States. + +FOOTNOTES: + +[Footnote 4: Lord Sheffield to Mr. Abbott, November 6, 1812. +_Correspondence of Lord Colchester_, ii. 409.] + +[Footnote 5: Gallatin later described Jackson as he first saw him in his +seat in the House: "A tall, lank, uncouth looking individual, with long +locks of hair hanging over his brows and face, while a queue hung down +his back tied in an eelskin. The dress of this individual was singular, +his manners and deportment that of a backwoodsman." Bartlett's +_Reminiscences of Gallatin_.] + +[Footnote 6: The phrase "stop the wheels of government" originated with +"Peter Porcupine" (William Cobbett) and was on every tongue.] + +[Footnote 7: Charles C. Pinckney, when ambassador to France, 1796.] + +[Footnote 8: Jefferson to William Duane, March 28, 1811. Jefferson's +_Works_, vol. v. p. 574.] + +[Footnote 9: Jefferson was born in 1743, Madison in 1751, Gallatin in +1761.] + + + + +CHAPTER VI + +SECRETARY OF THE TREASURY + +_Funding_ + + +The material comfort of every people depends more immediately upon the +correct management of its finances than upon any other branch of +government. _Haute finance_, to use a French expression for which there +is no English equivalent, demands in its application the faculties of +organization and administration in their highest degree. The relations +of money to currency and credit, and their relations to industry and +agriculture, or in modern phrase of capital to labor, fall within its +scope. The history of France, the nation which has best understood and +applied true principles of finance, supplies striking examples of the +benefits a finance minister of the first order renders to his country, +and the dangers of false theories. The marvelous restoration of its +prosperity by the genius of Colbert, the ruin caused by the malign +sciolism of Law, are familiar to all students of political economy. Nor +has the United States been less favored. The names of Morris, Hamilton, +Gallatin, and Chase shine with equal lustre. + +Morris, the Financier of the Revolution, was called to the +administration of the money department of the United States government +when there was no money to administer. Before his appointment as +"Financier" the expenses of the government, military and civil, had been +met by expedients; by foreign loans, lotteries, and loan office +certificates; finally by continental money, or, more properly speaking, +bills of credit emitted by authority of Congress and made legal tender +by joint action of Congress and the several States. The relation of coin +to paper in this motley currency appears in the appendix to the "Journal +of Congress" for the year 1778, when the government paid out in fourteen +issues of paper currency, $62,154,842; in specie, $78,666; in French +livres, $28,525.[10] The power of taxation was jealously withheld by the +States, and Congress could not go beyond recommending to them to levy +taxes for the withdrawal of the bills emitted by it for their quotas, +_pari passu_ with their issue. When the entire scheme of paper money +failed, the necessary supplies for the army were levied in kind. In the +spring of 1781 the affairs of the Treasury Department were investigated +by a committee of Congress, and an attempt was made to ascertain the +precise condition of the public debt. The amount of foreign debt was +approximately reached, but the record of the domestic debt was +inextricably involved, and never definitely discovered. Morris soon +brought order out of this chaos. His plan was to liquidate the public +indebtedness in specie, and fund it in interest-bearing bonds. The Bank +of North America was established, the notes of which were soon preferred +to specie as a medium of exchange. Silver, then in general use as the +measure of value, was adopted as the single standard. The weight and +pureness of the dollar were fixed by law. The dollar was made the unit +of account and payment, and subdivisions were made in a decimal ratio. +This was the dollar of our fathers. Gouverneur Morris, the assistant of +the Financier, suggested the decimal computation, and Jefferson the +dollar as the unit of account and payment. The board of treasury, which +for five years had administered the finances in a bungling way, was +dissolved by Congress in the fall of 1781, and Morris was left in sole +control. Semi-annual statements of the public indebtedness were now +begun. The expenses of the government were steadily and inflexibly cut +down to meet the diminishing income. A loan was negotiated in Holland, +and, with the aid of Franklin, the amount of indebtedness to France was +established. + +The public debt on January 1, 1783, was $42,000,375, of which $7,885,088 +was foreign, bearing four and five per cent. interest; and $34,115,290 +was held at home at six per cent. The total amount of interest was +$2,415,956. No means were provided for the payment of either principal +or interest. In July of the previous year Morris urged the wisdom of +funding the public debt, in a masterly letter to the president of +Congress. On December 16 a sinking fund was provided for by a +resolution, which, though inadequate to the purpose, was at least a +declaration of principle. In February, 1784, Morris notified Congress of +his intended retirement from office. He may justly be termed the father +of the American system of finance. In his administration he inflexibly +maintained the determination, with which he assumed the office, to apply +the public funds to the purpose to which they were appropriated. He +declared that he would "neither pay the interest of our debts out of the +moneys which are called for to carry on the war, nor pay the expenses of +the war from the funds which are called for to pay the interest of our +debts." One new feature of Morris's administration was the beginning of +the sale of public lands. + +On the retirement of Mr. Morris, November, 1784, a new board of treasury +was charged with the administration of the finances, and continued in +control until September 30, 1788, when a committee, raised to examine +into the affairs of the department, rendered a pitiful report of +mismanagement for which the board had not the excuse of their +predecessors during the war. They had only to observe the precepts which +Morris had enunciated, and to follow the methods he had prescribed, with +the aid of the assistants he had trained. But the taxes collected had +not been covered into the Treasury by the receivers. Large sums +advanced for secret service were not accounted for; and the entire +system of responsibility had been disregarded. John Adams attributed all +the distresses at this period to "a downright ignorance of the nature of +coin, credit and circulation;" an ignorance not yet dispelled. More +truly could he have said that our distresses arose from willful neglect +of the principle of accountability in the public service. + +The first Congress under the new Constitution met at New York on March +4, 1789, but it was not until the autumn that the executive +administration of the government was organized by the creation of the +three departments: State, Treasury, and War. + +The bill establishing the Treasury Department passed Congress on +September 2, 1789. Hamilton was appointed secretary by Washington on +September 11. On September 21 the House directed the secretary to +examine into and report a financial plan. On the assembling of Congress, +June 14, 1790, Hamilton communicated to the House his first report, +known as that on public credit. The boldness of Hamilton's plan startled +and divided the country. Funding resolutions were introduced into the +House. The first, relating to the foreign debt, passed unanimously; the +second, providing for the liquidation of the domestic obligations, was +sharply debated, but in the end Hamilton's scheme was adopted. The +resolutions providing for the assumption of the state debts, which he +embodied in his report, aroused an opposition still more formidable, and +it was not until August 4 that by political machinery this part of his +plan received the assent of Congress. To provide for the interest on the +debt and the expenses of the government, the import and navigation +duties were raised to yield the utmost revenue available; but, in the +temper of Congress, the excise law was not pressed at this session. The +secretary had securely laid the foundations of his policy. Time and +sheer necessity would compel the completion of his work in essential +accord with his original design. The President's message at the opening +of the winter session added greatly to the prestige of Hamilton's policy +by calling attention to the great prosperity of the country and the +remarkable rise in public credit. The excise law, modified to apply to +distilled spirits, passed the House in January. The principle of a +direct tax was admitted. On December 14, 1790, in obedience to an order +of the House requiring the secretary to report further provision for the +public credit, Hamilton communicated his plans for a national bank. Next +in order came the establishment of a national mint. Thus in two sessions +of Congress, and in the space of little more than a year from the time +when he took charge of the Treasury, Hamilton conceived and carried to +successful conclusion an entire scheme of finance. + +One more measure in the comprehensive system of public credit crowned +the solid structure of which the funding of the debt was the +cornerstone. This was the establishment of the sinking fund for the +redemption of the debt. Hamilton conformed his plan to the maxim, which, +to use his words, "has been supposed capable of giving immortality to +credit, namely, that with the creation of debts should be incorporated +the means of extinguishment, which are twofold. 1st. The establishing, +at the time of contracting a debt, funds for the reimbursement of the +principal, as well as for the payment of interest within a determinate +period. 2d. The making it a part of the contract, that the fund so +established shall be inviolably applied to the object." The ingenuity +and skill with which this master of financial science managed the +Treasury Department for more than five years need no word of comment. +Nor do they fall within the scope of this outline of the features of his +policy. His reports are the textbook of American political economy. +Whoever would grasp its principles must seek them in this limpid source, +and study the methods he applied to revenue and loans. Well might +Webster say of him in lofty praise, "He smote the rock of national +resources, and abundant streams of revenue gushed forth; he touched the +dead corpse of Public Credit, and it sprung upon its feet." + +On the resignation of Hamilton, January 31, 1795, Washington invited +Wolcott, who was familiar with the views of Hamilton and on such +intimate terms with him that he could always have his advice in any +difficult emergency, to take the post. Wolcott had been connected with +the department from its organization, first as auditor, afterwards as +comptroller of the Treasury. He held the Treasury until nearly the end +of Adams's administration. On November 8, 1800, upon the open breach +between Mr. Adams and the Hamilton wing of the Federal party, Wolcott, +whose sympathies were wholly with his old chief, tendered his +resignation, to take effect at the close of the year. On December 31 Mr. +Samuel Dexter was appointed to administer the department. But the days +of the Federal party were now numbered: it fell of its own dissensions, +"wounded in the house of its friends." + +There is little in the administration of the finances by Wolcott to +attract comment. He managed the details of the department with integrity +and skill. On his retirement a committee of the House on the condition +of the Treasury was appointed. No similar examination had been made +since May 22, 1794. On January 28, 1801, Mr. Otis, chairman of the +committee, submitted the results of the investigation in an unanimous +report that the business of the Treasury Department had been conducted +with regularity, fidelity, and a regard to economy; that the +disbursements of money had always been made pursuant to law, and +generally that the financial concerns of the country had been left by +the late secretary in a state of good order and prosperity. During his +six years of administration of the finances Wolcott negotiated six +loans, amounting in all to $2,820,000. The emergencies were +extraordinary,--the expenses of the suppression of the Whiskey +Insurrection in 1794, and the sum required to effect a treaty of peace +with Algiers in 1795. To fund these sums Mr. Wolcott had recourse to an +expedient which marked an era in American finance. This was the creation +of _new stock_, subscribed for at home. No loan had been previously +placed by the government among its own citizens. Between 1795 and 1798, +four and a half, five, and six per cent. stocks were created. In 1798 +the condition of the country was embarrassing. There was a threatening +prospect of war. Foreign loans were precarious and improvident; the +market rate of interest was eight per cent. Under these circumstances an +eight per cent. stock was created, not redeemable until 1809. An Act of +March 3, 1795, provided for vesting in the sinking fund the surplus +revenues of each year. + +In the formation of the first Republican cabinet Mr. Gallatin was +obviously Mr. Jefferson's first choice for the Treasury. The appointment +was nevertheless attended with some difficulties of a political and +party nature. The paramount importance of the department was a legacy of +Hamilton's genius. Its possession was the Federalist stronghold, and the +Senate, which held the confirming power, was still controlled by a +Federalist majority. To them Mr. Gallatin was more obnoxious than any +other of the Republican leaders. In the few days that he held a seat in +the Senate (1793) he offended Hamilton, and aroused the hostility of the +friends of the secretary by a call for information as to the condition +of the Treasury. As member of Congress in 1796 he questioned Hamilton's +policy, and during Adams's entire administration was a perpetual thorn +in the sides of Hamilton's successors in the department. The day after +his election, February 18, 1801, Mr. Jefferson communicated to Mr. +Gallatin the names of the gentlemen he had already determined upon for +his cabinet, and tendered him the Treasury. The only alternative was +Madison; but he, with all his reputation as a statesman and party +leader, was without skill as a financier, and in the debate on the +Funding Bill in 1790 had shown his ignorance in the impracticability of +his plans. If Jefferson ever entertained the thought of nominating +Madison to the Treasury, political necessity absolutely forbade it. That +necessity Mr. Gallatin, by his persistent assaults on the financial +policy of the Federalists, had himself created, and he alone of the +Republican leaders was competent to carry out the reforms in the +administration of the government, and to contrive the consequent +reduction in revenue and taxation, which were cardinal points of +Republican policy. Public opinion had assigned Gallatin to the post, and +the newspapers announced his nomination before Mr. Jefferson was +elected, and before he had given any indication of his purpose. To his +wife Mr. Gallatin expressed some doubt whether his abilities were equal +to the office, and whether the Senate would confirm him, and said, +certainly with sincerity, 'that he would not be sorry nor hurt in his +feelings if his nomination should be rejected, for exclusively of the +immense responsibility, labor, etc., attached to the intended office, +another plan which would be much more agreeable to him and to her had +been suggested, not by his political friends, but by his New York +friends.' He was by no means comfortable in his finances, and he had +already formed a plan of studying law and removing to New York. He had +made up his mind to leave the western country, which would necessarily +end his congressional career. His wife was forlorn in his absence, and +suffered so many hardships in her isolated residence that he felt no +reluctance to the change. To one of his wife's family he wrote at this +time:-- + + "As a political situation, the place of secretary of the treasury + is doubtless more eligible and congenial to my habits; but it is + more laborious and responsible than any other, and the same + industry which will be necessary to fulfill its duties, applied to + another object, would at the end of two years have left me in the + possession of a profession which I might have exercised either in + Philadelphia or New York. But our plans are all liable to + uncertainty, and I must now cheerfully undertake that which had + never been the object of my ambition or wishes." + +Well might he hesitate as he witnessed the distress which had overtaken +the great party which for twelve years had held the posts of political +honor. Fortunately, perhaps for himself and certainly for his party and +the country, the proposition came at a time when he had definitively +determined upon a change of career. His situation was difficult. The +hostility of the Federal senators, and the great exertions which were +being made to defeat the appointment, led him to the opinion that, if +presented on March 4, it would be rejected. There was the alternative of +delay until after that date, which would involve a postponement of the +confirmation until the meeting of Congress in December, but there was no +certainty that it would then be ratified. Meanwhile he would be +compelled to remove to Washington at some sacrifice and expense. He +therefore at first positively refused "to come in on any terms but a +confirmation by the Senate first given." He was finally induced to +comply with the general wish of his political friends. The appointment +was withheld by the President that the feeling in the Senate might be +judged from its action on the rest of the nominations submitted. They +were all approved, and Mr. Dexter consented to hold over until his +successor should be appointed. Thus Mr. Gallatin's convenience was +entirely consulted. He remained in Washington a few days to confer with +the President as to the general conduct of the administration, and on +March 14 set out for Fayette to put his affairs in order and to bring +his wife and family to Washington. On May 14 Jefferson wrote to Macon, +"The arrival of Mr. Gallatin yesterday completed the organization of our +administration." + +Mr. Gallatin soon realized the magnitude of his task. He did nothing by +halves. To whatever work he had to do, he brought the best of his +faculty. No man ever better deserved the epithet of "thorough." He +searched till he found the principle of every measure with which he had +concern and understood every detail of its application. This perfect +knowledge of every subject which he investigated was the secret of his +political success. As a committee man, he was incomparable. No one could +be better equipped for the direction of the Treasury Department than he, +but he was not satisfied with direction; he would manage also; and he +went to the work with untiring energy. A quarter of a century later he +said of it, in a letter to his son, "To fill that office in the manner I +did, and as it ought to be filled, is a most laborious task and labor of +the most tedious kind. To fit myself for it, to be able to understand +thoroughly, to embrace and control all its details, took from me, during +the two first years I held it, every hour of the day and many of the +night and had nearly brought on a pulmonary complaint. I filled the +office twelve years and was fairly worn out." + +Mr. Gallatin first drew public attention to his knowledge of finance in +the Pennsylvania legislature. An extract from his memorandum of his +three years' service gives the best account of this incident. In it +appear the carefully matured convictions which he inflexibly maintained. + + "The report of the Committee of Ways and Means of the session + 1790-1791 (presented by Gurney, chairman) was entirely prepared by + me, known to be so, and laid the foundation of my reputation. I was + quite astonished at the general encomiums bestowed upon it, and was + not at all aware that I had done so well. It was perspicuous and + comprehensive; but I am confident that its true merit, and that + which gained me the general confidence, was its being founded in + strict justice without the slightest regard to party feelings or + popular prejudices. The principles assumed, and which were carried + into effect, were the immediate reimbursement and extinction of the + state paper money, the immediate payment in specie of all the + current expenses or warrants on the Treasury (the postponement and + uncertainty of which had given rise to shameful and corrupt + speculations), and provision for discharging, without defalcation, + every debt and engagement previously recognized by the State. In + conformity with this, the State paid to its creditors the + difference between the nominal amount of the state debt assumed by + the United States and the rate at which it was funded by the act of + Congress. + + "The proceeds of the public lands, together with the arrears, were + the fund which not only discharged all the public debts, but left a + large surplus. The apprehension that this would be squandered by + the Legislature was the principal inducement for chartering the + Bank of Pennsylvania with a capital of two millions of dollars, of + which the State subscribed one half. This and similar subsequent + investments enabled Pennsylvania to defray out of the dividends all + the expenses of government without any direct tax during the forty + ensuing years, and till the adoption of the system of internal + improvement, which required new resources." + +This report was printed in the Journal of the House, February 8, 1791. +The next year he made a report on the same subject which was printed +February 22, 1792. + +But his equal grasp of larger subjects was shown in his sketch of the +finances of the United States, which he published in November, 1796. It +presents under three sections the revenues, the expenses, and the debts +of the United States, each subdivided into special heads. The arguments +are supported by elaborate tabular statements. No such exhaustive +examination had been made of the state of the American finances. The one +cardinal principle which he laid down was the extinguishment of debt. He +severely criticised Hamilton's methods of funding, and outlined those +which he himself later applied. He charged upon Hamilton direct +violations of law in the application of money, borrowed as principal, to +the payment of interest on that principal. The public funds he regarded +as three in number: 1st, the sinking fund; 2d, the surplus fund; 3d, the +general fund. + +In July, 1800, Mr. Gallatin published a second pamphlet, "Views of the +Public Debt, Receipts, and Expenditures of the United States," the +object of the inquiry being to ascertain the result of the fiscal +operations of the government under the Constitution. The entire field of +American finance is examined from its beginning. He severely condemns +the mode of assumption of the state debts in Hamilton's original plan, +and no doubt his strictures are technically correct. The debts assumed +for debtor States were not due by the United States, nor was there any +moral reason for their assumption. But the assumption was sound +financial policy, and all the cost to the nation was amply repaid by the +order which their assumption drew out of chaos, and the vigor given to +the general credit by the strengthening of that of its parts. The course +of the Federalists and Republicans on this question shows that the +former had at heart the welfare of all the States, while the latter +confined their interest to their own body politic. + +Had Mr. Gallatin never penned another line on finance, these two +remarkable papers would place him in the first rank of economists and +statisticians. There are no errors in his figures, no flaws in his +reasoning, no faults in his deductions. In construction and detail, as +parts of a complete financial system of administration, they are beyond +criticism. Opinions may differ as to the ends sought, but not as to the +means to those ends. + +For a long period Mr. Gallatin found no more time for essays; he was +now to apply his methods. These may be traced in his printed treasury +reports, which are lucid and instructive. He was appointed to the +Treasury on May 14, 1801, as appears by the official record in the State +Department. Before he entered on the duties of the office he submitted +to Mr. Jefferson, March 14, 1801, some rough sketches of the financial +situation, and suggested the general outlines of his policy. He insisted +upon a curtailment in the appropriations for the naval and military +establishments, the only saving adequate to the repeal of all internal +duties; and upon the discharge of the foreign debt within the period of +its obligation. He estimated that the probable receipts and expenditures +for the year 1801 would leave a surplus of more than two millions of +dollars applicable to the redemption of the debt. + +On taking personal charge of the Treasury Department, his first business +was to get rid of the arrears of current business which had accumulated +since the retirement of Wolcott; his next, to perfect the internal +revenue system, so far as it could be remedied without new legislation. +The entire summer of 1801 was passed in "arranging, or rather procuring +correct statements amongst the Treasury documents," a task of such +difficulty that he was unwilling, on November 15, to arrive at an +estimate of the revenue within half a million, or to commit himself to +any opinion as to the feasibility of abolishing the internal revenues. +In his "notes" submitted to Jefferson upon the draft of his first +message, there are several passages of interest which show Mr. +Gallatin's logical habit of searching out economic causes. Under the +head of finances, he remarks, "The revenue has increased more than in +the same ratio with population: 1st, because our wealth has increased in +a greater ratio than population; 2d, because the seaports and towns, +which consume imported articles much more than the country, have +increased in a greater proportion." The final paragraph in these "notes" +is a synopsis of his entire scheme of administration. + + "There is but one subject not mentioned in the message which I feel + extremely anxious to see recommended. It is generally that Congress + should adopt such measures as will effectually guard against + misapplications of public moneys, by making specific appropriations + whenever practicable; by providing against the application of + moneys drawn from the Treasury under an appropriation to any other + object or to any greater amount than that for which they have been + drawn; by limiting discretionary power in the application of that + money; whether by heads of department or by any other agents; and + by rendering every person who receives public moneys from the + Treasury as immediately, promptly, and effectually accountable to + the accounting officer (the comptroller) as practicable. The great + characteristic, the flagrant vice, of the late administration has + been total disregard of laws, and application of public moneys by + the Department to objects for which they were not appropriate." + +Outlines for a system of specific appropriations were inclosed. + +That the mission of Jefferson's administration was the reduction of the +debt, Gallatin set forth in his next letter of November 16, 1801. "I am +firmly of opinion that if the present administration and Congress do not +take the most effective measures for that object, the debt will be +entailed on us and the ensuing generations, together with all the +systems which support it, and which it supports." On the other hand he +says, "If this administration shall not reduce taxes, they never will be +permanently reduced." To reduce both the debt and the taxes was as much +a political as a financial problem. To solve it required the reduction +to a minimum of the departments of War and Marine. But Mr. Jefferson was +not a practical statesman. His individuality was too strong for much +surrender of opinion. He stated the case very mildly when he wrote in +his retirement that he sometimes differed in opinion from some of his +friends, from those whose views were as "pure and as sound as his own." +It was not his habit to consult his entire cabinet except on general +measures. The heads of each department set their views before him +separately. Under this system Mr. Gallatin was never able to realize +that harmonious interdependence of departments and subordination of ways +to means which were his ideal of cabinet administration. + +The successful application of Mr. Gallatin's plan would have +subordinated all the executive departments to the Treasury. The theory +was perfect, but it took no account of the greed of office, the +jealousies of friends, the opposition of enemies, and the unknown factor +of foreign relations. A speck on the horizon would cloud the peaceful +prospect, a hostile threat derange the intricate machinery by which the +delicate financial balance was maintained. Mr. Gallatin was fast +realizing the magnitude of his undertaking, in which he was greatly +embarrassed by the difficulty of finding faithful examining clerks, on +whose correctness and fidelity a just settlement of all accounts +depends. The number of independent offices attached to the Treasury made +the task still more arduous. He wrote to Jefferson at this time, "It +will take me twelve months before I can thoroughly understand every +detail of all these several offices. Current business and the more +general and important duties of the office do not permit me to learn the +lesser details, but incidentally and by degrees. Until I know them all I +dare not touch the machine." One of the acquirements which he considered +indispensable for a secretary of the treasury was a "thorough knowledge +of book-keeping." The recollection of his persistent demands for +information from Hamilton and Wolcott during his congressional career +would have stung the conscience of an ordinary man. But Gallatin was not +an ordinary man. He asked nothing of others which he himself was not +willing to perform. His ideal was high, but he reached its summit. It +seems almost as if, in his persistent demand that money accountability +should be imposed by law upon the Treasury Department, he sought to set +the measure of his own duty, while in the requirement that it should be +extended to the other departments, he pledged himself to the perfect +accomplishment of that duty in his own. + +In his first report to Congress,[11] made December 18, 1801, Mr. +Gallatin submitted his financial estimate for the year 1802. + +REVENUE. EXPENDITURES. + +Imposts $9,500,000 Int. on debts. $7,100,000 +Lands } 450,000 Civil List 980,000 +Postages } Army 1,420,000 +Internal Rev. 650,000 Navy 1,100,000 + ---------- ---------- + $10,600,000 $10,600,000 + +Mr. Wolcott, in his last report to the Commissioners of the Sinking +Fund, stated the amount in the Treasury to its credit at $500,718. Mr. +Gallatin denied that there was any such surplus, but said that instead +of a credit balance the treasury books showed a deficiency of $930,128 +on the aggregate revenue from the establishment of the government to the +close of the year 1799. Elliott, in his "Funding System," said +concerning this once vexed controversy, that it was difficult to +reconcile such a diversity of opinion on so intricate a subject; and +concerning the official statements of Hamilton and Wolcott, that it was +hardly to be credited that they were so superficial or imperfect. Mr. +Gallatin himself furnishes the apology that the difference might arise +from "entries made or omitted on erroneous principles." To the Federal +financiers the palliation was as offensive as the charge, and rankled +long and sore. If it were not possible, when Elliott made an +examination, to arrive at the precise facts, it is certainly now a +secret as secure from discovery as the lost sibylline leaves. + +Mr. Gallatin stated the debt of the United States-- + +On January 1, 1801, at $80,161,207.60 +On January 1, 1802, at 77,881,890.29 + --------------- +Reduction $2,279,317.31 + +This difference was the amount of principal paid during the year 1801, +the result of the management of his predecessors. On December 18, 1801, +Mr. Gallatin entered upon an examination of the time in which the total +debt might be discharged, and showed that, by the annual application of +$7,300,000 to the principal and interest the debt would in eight years, +_i. e._ on January 1, 1810, be reduced (by the payment of $32,289,000 of +the principal) to $45,592,739, and that the same annual sum of +$7,300,000 would discharge the whole debt by the year 1817. The revenues +of the Union he found sufficient to defray all the current expenses. In +his report to Congress at the beginning of the session he designated +this sum of $7,300,000 to be set aside from the revenues, and Congress +gave the requisite authority. An extract from a tabular statement +submitted to the House of Representatives, April 16, 1810, will show how +nearly Mr. Gallatin approached the result at which he aimed, and the +nature of the embarrassment he encountered on the path. + +------+--------------+--------------+---------------+-------------+ + | Amount of | Payments | Debt | Annual | +Years.| Public Debt | on | Contracted. | Increase. | + | January 1st. | Principal. | | | +------+--------------+--------------+---------------+-------------+ +1802 |$80,712,632.25| $3,657,945.95| - | - | +1803 | 77,054,686.30| 5,627,565.42| $15,000,000* |$9,372,434.58| +1804 | 86,427,120.88| 4,114,970.38| - | - | +1805 | 82,312,150.50| 6,588,879.84| - | - | +1806 | 75,723,270.66| 6,504,872.02| - | - | +1807 | 69,218,398.64| 4,022,080.67| - | - | +1808 | 65,196,317.97| 8,173,125.88| - | - | +1809 | 57,023,192.09| 3,850,889.77| - | - | +1810 | 53,172,302.32| - | - | - | +------+--------------+--------------+---------------+-------------+ +----------------- + Annual + Decrease. +----------------- + $3,657,948.95 + - + 4,114,970.38 + 6,588,879.84 + 6,504,872.02 + 4,022,080.67 + 8,173,125.88 + 3,850,889.77 + - +----------------- + * Louisiana purchase. + +1802 $80,712,632.25 Decrease $36,912,764.51 +1810 53,172,302.32 Increase 9,372,434.58 + -------------- -------------- + $27,540,329.93 Decrease in 8 yrs. $27,540,329.93 + +From this it appears that, notwithstanding the extraordinary increase of +the principal by the amount of the Louisiana purchase, Mr. Gallatin +contrived a reduction of $27,540,329. But if to this be added the true +reduction for the year 1803, namely, the difference between the +Louisiana debt, $15,000,000, and the increase for that year, by reason +of that purchase, $9,372,434, say $6,627,565, the reduction is found to +be, and but for that disturbing cause would have reached, $34,167,895, +a sum exceeding by $1,878,895 that estimated by Mr. Gallatin in his +report of 1801 as the amount of eight years' reduction, namely, +$32,289,000. + +The ways and means of this remarkable example of financial management +appear in the following extracts from Elliott's synoptical statement +(table given on page 194). + +The purchase of Louisiana was the extraordinary financial measure of +Jefferson's first presidential term. Though the new obligation for the +consideration money, fifteen millions of dollars, was a large sum in +proportion to the total existing debt of the United States, it did not +in the least derange Gallatin's plan of funding and reduction, but was +brought without friction within his general scheme. With the terms of +the contract Gallatin had nothing to do. They were arranged by +Livingston and Monroe, the American commissioners; the intervention of +the houses of Hope and the Barings being a part of the understanding +between the commissioners and the French government. These bankers +engaged to make the money payments and take six per cent. stock of the +United States at seventy-eight and one half cents on the dollar. With +this price Mr. Gallatin does not seem to have been satisfied, though of +course he interposed no objection to the terms; but to Jefferson he +wrote, August 31, 1803, that the low price at which that stock had been +sold, was "not ascribable to the state of public credit nor to any act +of your administration, and particularly of the Treasury Department;" +and he adds in a postscript, "at that period our threes were in England +worth one per cent. more at market than the English." + + +RECEIPTS. + +------------------+----------------+---------------+-------------+ +Four years | Customs. | Internal | Direct | +ending | | Revenue. | Taxes. | +December 31. | | | | +------------------+----------------+---------------+-------------+ +Adams, 1800 | $30,347,093.62 | $2,808,382.37 | $734,223.97 | + +--------------- +-------------- +------------ + +Jefferson, 1804 | 44,766,997.61 | 1,936,053.30 | 862,986.46 | + 1808 | 59,813,257.40 | 63,110.73 | 131,539.54 | + +--------------- +-------------- +------------ + + | 104,580,255.01 | 1,999,146.03 | 994,526.00 | +------------------+----------------+---------------+-------------+ + +------------------+-------------+--------------+---------------+ +Four years | Postage. | Public | Loans and | +ending | | Lands. | Treasury | +December 31. | | | Notes. | +------------------+-------------+--------------+---------------+ +Adams, 1800 | $223,000.00 | $95,947.46 | $7,055,791.25 | + +-------------+--------------+---------------+ +Jefferson, 1804 | 157,427.26 | 1,009,556.56 | 25,255.00 | + 1808 | 60,074.90 | 2,419,541.86 | 179,534.81 | + +-------------+--------------+---------------+ + | 217,502.10 | 3,429,098.42 | 205,089.81 | +------------------+-------------+--------------+---------------+ + +------------------+--------------+----------------+---------------- +Four years | Dividends | Miscellaneous. | Total. +ending | and sales of | | +December 31. | Bank Stock. | | +------------------+--------------+-------------- -+---------------- +Adams, 1800 | $607,220.00 | $168,971.76 | $42,040,630.45 + +--------------+----------------+---------------- +Jefferson, 1804 | 1,416,360.00 | 672,148.72 | 50,846,784.91 + 1808 | -- | 85,782.03 | 62,758,841.27 + +--------------+----------------+---------------- + | 1,416,360.00 | 757,930.75 | 113,605,626.18 +------------------+--------------+----------------+---------------- + + +EXPENDITURES. + + +------------------+---------------+---------------+--------------+ +Four years | Civil List. | Foreign |Miscellaneous.| +ending | | Intercourse | | +December 31. | | including | | + | | Awards. | | +------------------+---------------+---------------+--------------+ +Adams, 1800 | $2,329,433.08 | $1,793,879.57 | $621,633.37 | + +---------------+---------------+--------------+ +Jefferson, 1804 | 2,297,648.17 | 3,144,093.00 | 1,169,601.87 | + 1808 | 2,616,772.77 | 5,441,669.24 | 1,721,876.87 | + +---------------+---------------+--------------+ + | 4,914,420.94 | 8,585,762.24 | 2,891,478.74 | +------------------+---------------+---------------+--------------+ + +------------------+---------------+-------------+--------------+ +Four years | Military | Pensions. | Indian | +ending | Forts, etc. | | Department. | +December 31. | | | | + | | | | +------------------+---------------+-------------+--------------+ +Adams, 1800 | $8,076,750.71 | $356,677.06 | $99,299.88 | + +---------------+-------------+--------------+ +Jefferson, 1804 | 4,549,572.11 | 301,968.66 | 279,500.00 | + 1808 | 6,126,656.97 | 316,806.16 | 849,700.00 | + +---------------+-------------+--------------+ + | 10,676,229.08 | 618,774.82 | 1,129,200.00 | +------------------+---------------+-------------+--------------+ + +------------------+----------------+----------------+---------------- +Four years | Naval | Public Debt. | Total. +ending | Establishment. | | +December 31. | | | + | | | +------------------+----------------+----------------+---------------- +Adams, 1800 | $8,070,777.52 | $18,957,962.69 | $40,306,413.88 + +----------------+----------------+---------------- +Jefferson, 1804 | 5,432,049.15 | 32,258,658.68 | 49,433,091.64 + 1808 | 6,853,673.79 | 32,927,739.85 | 56,854,985.65 + +----------------+----------------+---------------- + | 12,285,722.94 | 65,186,398.53 | 106,288,077.29 +------------------+----------------+----------------+---------------- + +Adams--Receipts $42,040,630.45 +Adams--Expenditures 40,306,413.88 + -------------- +Under Wolcott, Secretary 1,734,216.57 + +Jefferson--Receipts $113,605,626.18 +Jefferson--Expenditures 106,288,077.29 + -------------- +Under Gallatin, Secretary 7,317,584.89[12] + +[**Transcriber's Note: Some of the numbers in the above tables do not +add up, but reflect the actual numbers given in the original document.] + +The arrangements being completed, Jefferson called Congress together in +October, 1803, for a ratification of the treaty; the commissioners, by +virtue of the authority granted them, had already guaranteed the advance +by the Barings of ten million livres ($2,000,000). On October 25, 1803, +Gallatin made a report to Congress on the state of the finances. It +showed a reduction of the public debt in the two and one half years of +his management, April 1, 1801, to September 30, 1803, of $12,702,404. +The only question to be considered was whether any additional revenues +were wanted to provide for the _new debt_ which would result from the +purchase of Louisiana. + +The sum called for by treaty, fifteen millions, consisted of two items: +1st, $11,250,000 payable to the government of France in a stock bearing +an interest of six per cent. payable in Europe, and the principal to be +discharged at the Treasury of the United States; 2d, a sum which could +not exceed, but might fall short of, $3,750,000, payable in specie at +the Treasury of the United States to American citizens having claims of +a certain description upon the government of France. + +It is interesting here to note Mr. Gallatin's distinction between the +place of payment of interest and of principal as a new departure in +American finance. The principal and interest of foreign loans had up to +that period been paid abroad. But a United States stock was an +obligation of a different character and properly payable at home. In the +large negotiations which Secretary Chase had in 1862 with the Treasury +Note Committee of the Associated Banks,[13] this policy was matter of +grave debate. The determined American pride of Mr. Chase prevailed, and +both the principal _and interest_ of the loans created were made payable +at the Treasury of the United States. These may be small matters in +their financial result, but are grave points in national policy. + +The only financial legislation necessary to carry out the Louisiana +purchase was a provision that $700,000 of the duties on merchandise and +tonnage, a sum sufficient to pay the interest on the new debt, be added +to the annual permanent appropriation for the sinking fund, making a sum +of $8,000,000 in all. + +The new debt would, Gallatin said, neither impede nor retard the payment +of the principal of the old debt; and the fund would be sufficient, +besides paying the interest on both, to discharge the principal of the +old debt before the year 1818, and of the new, within one year and a +half after that year. In this expectation he relied solely on the +maintenance of the revenue at the amount of the year 1802, and in no way +depended on its probable increase as a result of neutrality in the +European war; nor on any augmentation by reason of increase of +population or wealth, nor the effect which the opening of the +Mississippi to free navigation might be expected to have on the sales of +public lands and the general resources of the country. + +In his report of December 9, 1805, Mr. Gallatin reviewed the results of +his first four years of service, April 1, 1801, to March 31, 1805. + + RECEIPTS. + +Duties on tonnage and importation of +foreign merchandise $45,174,837.22 + +From all other sources 5,492,629.82 + -------------- + $50,667,467.04 + ============== + + EXPENDITURES. + +Civil list and miscellaneous $3,786,094.79 + +Intercourse with foreign nations 1,071,437.84 + +Military establishment and Indian department 4,405,192.26 + +Naval establishment 4,842,635.15 + +Interest on foreign debt 16,278,700.95 + +Reimbursement of debt from surplus +revenue 19,281,446.57 + -------------- + $49,665,507.56 + +The Louisiana purchase and the admirable manner of its financial +arrangement were important factors in Jefferson's reelection. Mr. +Gallatin was now sure of four years, at least, for the prosecution of +his plan of redemption of the public debt. Estimating that with the +increase of population at the rate of thirty-five per cent. in ten +years, and the corresponding growth of the revenue, he could count upon +a net annual surplus of $5,500,000, he now proposed to convert the +several outstanding obligations into a six per cent. stock amounting, +January 1, 1809, to less than _forty millions of dollars_, which the +continued annual appropriation of $8,000,000 would, besides paying the +interest on the Louisiana debt, reimburse within a period of less than +seven years, or before the end of the year 1815. After that year no +other incumbrance would remain on the revenue than the interest and +reimbursement of the Louisiana stock, the last payment of which in the +year 1821 would complete the final extinguishment of the public debt. +The conversion act was passed February 1, 1807, and books were opened on +July 1 following. On February 27, 1807, Mr. Gallatin made a special +report on the state of the debt from 1801 to 1807, showing a diminution, +notwithstanding the Louisiana purchase, of $14,260,000. + +In the summer of 1807 war with England seemed inevitable. Gallatin had +the satisfaction to report a full treasury,--the amount of specie +October 7, 1807, reaching over eight and one half millions,--and an +annual unappropriated surplus, which could be confidently relied upon, +of at least three millions of dollars. On this subject his remarks in +the light of subsequent history are of extreme interest. While +refraining from any recommendations as to the application of this +surplus, either to "measures of security and defense," or to "internal +improvements which, while increasing and diffusing the national wealth, +will strengthen the bonds of union," as "subjects which do not fall +within the province of the Treasury Department," he proceeds to consider +the advantage of an accumulation in the Treasury. In this report he +rises with easy flight far above the purely financial atmosphere into +the higher plane of political economy. + + "A previous accumulation of treasure in time of peace might in a + great degree defray the extraordinary expenses of war and diminish + the necessity of either loans or additional taxes. It would provide + during periods of prosperity for those adverse events to which + every nation is exposed, instead of increasing the burthens of the + people at a time when they are least able to bear them, or of + impairing, by anticipations, the resources of ensuing + generations.... + + "That the revenue of the United States will in subsequent years be + considerably impaired by a war neither can nor ought to be + concealed. It is, on the contrary, necessary, in order to be + prepared for the crisis, to take an early view of the subject, and + to examine the resources which should be selected for supplying the + deficiency and defraying the extraordinary expenses.... + + "Whether taxes should be raised to a greater amount or loans be + altogether relied on for defraying the expenses of the war, is the + next subject of consideration. + + "Taxes are paid by the great mass of the citizens, and immediately + affect almost every individual of the community. Loans are supplied + by capital previously accumulated by a few individuals. In a + country where the resources of individuals are not generally and + materially affected by the war, it is practicable and wise to raise + by taxes the greater part at least of the annual supplies. The + credit of the nation may also from various circumstances be at + times so far impaired as to have no resource but taxation. In both + respects the situation of the United States is totally + dissimilar.... + + "An addition to the debt is doubtless an evil, but experience + having now shown with what rapid progress the revenue of the Union + increases in time of peace, with what facility the debt, formerly + contracted, has in a few years been reduced, a hope may confidently + be entertained that all the evils of the war will be temporary and + easily repaired, and that the return of peace will, without any + effort, afford ample resources for reimbursing whatever may have + been borrowed during the war." + +He then enumerates the several branches of revenue which might be +selected to provide for the interest of war loans and to cover +deficiencies. First, a considerable increase of the duties on +importations; and here he says:-- + + "Without resorting to the example of other nations, experience has + proven that this source of revenue is in the United States the most + productive, the easiest to collect, and the least burthensome to + the great mass of the people. 2d. Indirect taxes, however + ineligible, will doubtless be cheerfully paid as _war taxes_, if + necessary. 3d. Direct taxes are liable to a particular objection + arising from unavoidable inequality produced by the general rule + of the Constitution. Whatever differences may exist between the + relative wealth and consequent ability of paying of the several + States, still the tax must necessarily be raised in proportion to + their relative population." + +The Orders in Council of November 11, 1807, avowedly adopted to compel +all nations to give up their maritime trade or accept it through Great +Britain, reached Washington on December 18, 1807, and were immediately +replied to by the United States by an embargo act on December 22. The +history of the political effect of this measure is beyond the limits of +this economic study, and will be touched upon in a later chapter, but +the result of its application upon the Treasury falls within this +analysis of the methods of Mr. Gallatin's administration. + +On December 18 Gallatin wrote Jefferson that "in every point of view, +privations, sufferings, revenue, effect on the enemy, politics at home, +etc.," he preferred "war to a permanent embargo;" nevertheless he was +called upon to draft the bill. The correctness of Mr. Gallatin's +prevision was soon apparent. In his report of December 10, 1808, he +reviewed the general effect of the measure. "The embargo has brought +into and kept in the United States almost all the floating property of +the nation. And whilst the depreciated value of domestic product +increases the difficulty of raising a considerable revenue by internal +taxes, at no former time has there been so much specie, so much +redundant unemployed capital in the country." Again stating his opinion +that loans should be principally relied on in case of war, he closed +with the following words: "The high price of public stocks (and indeed +of all species of stocks), the reduction of the public debt, the +unimpaired credit of the general government, and the large amount of +existing bank stock in the United States [estimated by him at forty +millions of dollars], leave no doubt of the practicability of obtaining +the necessary loans on reasonable terms." + +The receipts into the Treasury during the +year ending September, 1808, the last of +Jefferson's administration, were $17,952,419.90 + +The disbursements during the same period +were 12,635,275.46 + ------------- +Excess of receipts $5,317,144.44 + +And the specie in Treasury, October 1, +1808 $13,846,717.82 + +From January 1, 1791, to January 1, 1808, the debt had fallen from +$75,169,974 to $57,023,192; during the first ten years it had increased +nearly seven millions of dollars, in the last eight it had been +diminished more than twenty millions and Louisiana had been purchased. +Thus closed the second term of Gallatin's service. Happen what might, +the credit of the country could not be in a better situation to meet the +exigencies of a war. A letter from Mr. Jefferson to Mr. Gallatin after +the close of this administration, and Gallatin's reply, show the entire +accord between them upon the one cardinal point of financial policy. Mr. +Jefferson, October 11, 1809, wrote from Monticello, "I consider the +fortunes of our republic as depending in an eminent degree on the +extinction of the public debt before we engage in any war; because, that +done, we shall have revenue enough to improve our country in peace and +defend it in war, without incurring either new taxes or new loans." And +urging Gallatin to retain his post, he closed with the striking words, +"I hope, then, you will abandon entirely the idea you expressed to me, +and that you will consider the eight years to come as essential to your +political career. I should certainly consider any earlier day of your +retirement as the most inauspicious day our new government has ever +seen." To which Gallatin replied from Washington, on November 10:-- + + "The reduction of the public debt was certainly the principal + object in bringing me into office, and our success in that respect + has been due both to the joint and continued efforts of the several + branches of government and to the prosperous situation of the + country. I am sensible that the work cannot progress under adverse + circumstances. If the United States shall be forced into a state of + actual war, all the resources of the country must be called forth + to make it efficient and new loans will undoubtedly be wanted. But + whilst peace is preserved, the revenue will, at all events, be + sufficient to pay the interest and to defray necessary expenses. I + do not ask that in the present situation of our foreign relations + the debt be reduced, but only that it shall not be increased so + long as we are not at war." + +In his eight years of service under Jefferson, Gallatin had not found +the Treasury Department a bed of roses. Under Madison there was an undue +proportion of thorns. + +It has been shown that the entire reliance of Gallatin for the expenses +of government was on customs, tonnage dues, and land sales. The effect +of the Embargo Act was soon felt in the falling off of importations, and +consequently in the revenue from this source. Mr. Gallatin felt the +strain in the spring of 1809; and on March 18, soon after Mr. Madison's +inauguration, he gave notice to the commissioners of the sinking fund of +a probable deficiency. In his annual report to Congress, December, 1809, +he announced the expenses of government, exclusive of the payments on +account of the principal of the debt, to have exceeded the actual +receipts into the Treasury by a sum of near $1,300,000. For this +deficiency, and the sum required for the sinking fund, Gallatin was +authorized in May to borrow from the Bank of the United States +$3,750,000 at six per cent., reimbursable on December 31, 1811. Of this +sum only $2,750,000 was taken, the expenses having proved less than Mr. +Gallatin had anticipated. + +Madison called Congress together on November 1, 1811. The political +tension was strong, and he was anxious to throw the responsibility of +peace or war upon Congress. On November 22, 1811, Mr. Gallatin made his +report on the finances and the public debt. It was, as usual, explicit +and in no manner despondent. The actual receipts arising from revenue +alone exceeded the current expenses, including the interest paid on the +debt, by a sum of more than five and one half millions of dollars. The +public debt on January 1, 1812, was $45,154,463. Since Gallatin took +charge of the department, the United States had in ten years and nine +months paid in full the purchase money of Louisiana, and increased its +revenue nearly two millions of dollars. For eight years eight millions +of dollars had been annually paid on account of the principal and +interest of the debt. And as though intending to leave as the legacy of +his service a lesson of financial policy, he said:-- + + "_The redemption of principal has been effected without the aid of + any internal taxes, either direct or indirect, without any addition + during the last seven years to the rate of duties on importations, + which on the contrary have been impaired by the repeal of the duty + on salt, and notwithstanding the great diminution of commerce + during the last four years._ It therefore proves decisively the + ability of the United States with their ordinary revenue to + discharge, in ten years of peace, a debt of forty-two millions of + dollars, a fact which considerably lessens the weight of the most + formidable objection to which that revenue, depending almost solely + on commerce, appears to be liable. In time of peace it is almost + sufficient to defray the expenses of a war; in time of war it is + hardly competent to support the expenses of a peace establishment. + Sinking at once, under adverse circumstances, from fifteen to six + or eight millions of dollars, it is only by a persevering + application of the surplus which it affords us in years of + prosperity, to the discharge of the debt, that a total change in + the system of taxation or a perpetual accumulation of debt can be + avoided. But if a similar application of such surplus be hereafter + strictly adhered to, forty millions of debt, contracted during five + or six years of war, may always, without any extraordinary + exertions, be reimbursed in ten years of peace. This view of the + subject at the present crisis appears necessary for the purpose of + distinctly pointing out one of the principal resources within reach + of the United States. But to be placed on a solid foundation, it + requires the aid of a revenue sufficient at least to defray the + ordinary expenses of government, and to pay the interest on the + public debt, including that on new loans which may be authorized." + +From this plain declaration, it was evident that the sum necessary to +pay interest on new loans, and provide for their redemption by the +operation of the sinking fund, could not be obtained from the ordinary +sources of revenue, and that resort must be had to extraordinary imposts +or direct taxation. On January 10, 1812, in response to an inquiry of +the Ways and Means Committee as to an increase of revenue in _the event +of a war_, Gallatin submitted a project for war loans of ten millions a +year, irredeemable for ten years. He pointed out that the government had +never since its organization obtained considerable loans at six per +cent. per annum, except from the Bank of the United States, and these, +on a capital of seven millions, never amounted to seven millions in the +whole. As the amount of prospective loans would naturally raise the +amount of interest, it seemed prudent not to limit the rate of interest +by law; ineligible as it seemed to leave that rate discretionary with +the executive, it was preferable to leaving the public service +unprovided for. For the same reason the loans should be made +irredeemable for a term not less than ten years. + +He then repeated a former suggestion, that "treasury notes," bearing +interest, might be issued, which would to that extent diminish the +amount to be directly borrowed and also provide a part of the +circulating medium, passing as bank notes; but their issue must be +strictly limited to that amount at which they would circulate without +depreciation. So long as the public credit is preserved and a sufficient +revenue provided, he entertained no doubts of the possibility of +procuring on loan the sums necessary to defray the extraordinary +expenses of a war. He warned the committee, and through it Congress, +that "no artificial provisions, no appropriations or investments of +particular funds in certain persons, _no nominal sinking fund_, however +constructed, will ever reduce a public debt unless the net annual +revenue shall exceed the aggregate of the annual expenses, including the +interest of the debt." He then submitted the following estimates:-- + + "The current or peace expenses have been estimated at nine millions + of dollars. Supposing the debt contracted during the war not to + exceed fifty millions and its annual interest to amount to three + millions, the aggregate of the peace expenditure would be no more + than twelve millions. And as the peace revenue of the United States + may at the existing rate of duties be fairly estimated at fifteen + millions, there would remain from the first outset a surplus of + three millions applicable to the redemption of the debt. So far, + therefore, as can be now foreseen, there is the strongest reason to + believe that the debt thus contracted will be discharged with + facility and as speedily as the terms of the loans will permit. Nor + does any other plan in that respect appear necessary than to extend + the application of the annual appropriation of eight millions (and + which is amply sufficient for that purpose) to the payment of + interest and reimbursement of the principal of the new debt.... If + the national revenue exceeds the national expenditure, a simple + appropriation for the payment of the principal of the debt and + coextensive with the object is sufficient and will infallibly + extinguish the debt. If the expense exceeds the revenue, the + appropriation of any specific sum and the investment of the + interest extinguished or of any other fund, will prove altogether + nugatory; and the national debt will, notwithstanding that + apparatus, be annually increased by an amount equal to the deficit + in the revenue.... What appears to be of vital importance is that + _the crisis_ should at once be met by the adoption of efficient + measures, which will with certainty provide means commensurate with + the expense, and, by _preserving unimpaired instead of abusing that + public credit on which the public resources so eminently depend, + will enable the United States to persevere in the contest until an + honorable peace shall have been obtained_." + +On March 14 Congress authorized a public loan of eleven millions of +dollars, leaving it optional with the banks who subscribed to take +stock, or to loan the money on special contract. The books were opened +May 1 and 2, and in the two days $6,118,900 were subscribed: $4,190,000 +by banks and $1,928,000 by individuals. The rate was six per cent. Mr. +Gallatin reported this result, and proposed the issue of treasury notes +for such amount as was desired within the limit of the loan to bear +interest at five and two fifths per cent. a year, equal to a cent and a +half per day on a hundred dollars' note; 2d, to be payable one year +after date of issue; 3d, to be in the meanwhile receivable in payment of +all duties, taxes, or debts due to the United States. The first of these +ingenious qualifications was adopted by Mr. Chase in his issue of the +seven-thirties. + +On June 18 war was declared. On the 28th Mr. Gallatin submitted his +estimate of receipts and expenditures for the year. + +EXPENDITURES IN ROUND NUMBERS. + +Civil and miscellaneous $1,560,000 +Military establishment, and Indian dept 12,800,000 +Naval establishment 3,940,000 +Public debt 8,000,000 + ---------- + $26,300,000 + ========== + +FUNDS PROVIDED. + +Balance in Treasury, January 1 $2,000,000 +Receipts from duties and sales of lands + as by estimate of November 22, 1811 8,200,000 +Loan authorized by law 11,000,000 +Treasury notes as authorized by House + of Representatives 5,000,000 + ---------- + $26,200,000 + +The issue of _treasury notes_ was a novel experiment in the United +States; but they were favorably received, and Mr. Gallatin calculated +that the full amount authorized by law, $5,000,000, could be put in +circulation during the year. The result of a loan seemed more doubtful. +The old six per cents. and deferred stock had already fallen two or +three per cent. below par. Mr. Gallatin again recommended the conversion +of these securities into a new six per cent. stock, which would +facilitate the new loan, and to prevent the necessity of applying, the +same years, the large sums required in reimbursement of and purchase of +the public debt. + +On December 1 Mr. Gallatin made his last annual statement. + +_Treasury Report for Fiscal Year ending September_ 30, 1812. + +RECEIPTS. + +Customs, sales of lands, etc. $10,934,946.20 +On account of loan of eleven millions, + act 14 March, 1812 5,847,212.50 + -------------- + $16,782,158.70 +Balance in Treasury October 1, 1811 3,947,818.36 + -------------- + $20,729,977.06 + ============== + +DISBURSEMENTS. + +Civil Department, foreign intercourse $1,823,069.35 +Army, militia, forts, etc. $7,770,300.00 +Navy Department 3,107,501.54 +Indian Department 230,975.00 + ------------- 11,108,776.54 +Interest on debt $2,498,013.19 +On account of principal 2,938,465.99 + ------------- 5,436,479.18 + -------------- + $18,368,325.07 +Leaving in Treasury 30 Sept., 1812 2,361,652.69 + -------------- + $20,729,977.76 + +The sums obtained or secured on loans during the year amounted to +$13,100,209, and the secretary had the satisfaction to state "that +notwithstanding the addition thus made to the public debt, and although +a considerable portion has been remitted from England and brought to +market in America, the public stocks (which had at first experienced a +slight depression) have been for the last three months, and continue to +be, at par." His last report to the commissioners of the sinking fund of +February 5, 1813, stated the usual application of $8,719,773 to the +principal and interest of the debt. + +In his report of December 1, 1812, Mr. Gallatin announced that a loan of +twenty-one millions was needed for the service of 1813. Congress +authorized a loan of $16,000,000, having six years to run, and an +additional issue of $5,000,000 of treasury notes. Congress adjourned on +March 4. Their procrastination and the pressing demands of the War +Department nearly beggared the Treasury before the loans could be +negotiated and covered into it. + +On April 17 Mr. Gallatin wrote to the secretaries of the army and of the +navy, and sent a copy of his letters to Mr. Madison with information +that the loan had been filled, and the probable receipts of the Treasury +from ordinary sources for the year ascertained. These he estimated at +$9,300,000. Deducting the annual appropriation for interest on the debt, +the sum expended to March 31, and the amount needed for the civil +service, there remained for the War and Navy Departments together the +sum of $18,720,000. + +The loan of $16,000,000 was obtained in the following places:-- + +States east of New York $486,700 +State of New York 5,720,000 +Philadelphia, Pa. 6,858,400 +Baltimore and District of Columbia 2,393,300 +State of Virginia 187,000 +Charleston, S. C. 354,000 + ----------- + $16,000,000 + +The history of this subscription is not without interest. The extremely +small subscriptions in New England and in the Southern States can hardly +be explained on any other theory than that of a belief in the collapse +of the finances of the United States and a dissolution of the Union, for +which the New England States had certainly been prepared by their +governing minds.[14] + +Books were opened on March 12 and 13, 1813, at Portsmouth, Salem, +Boston, Providence, New York, Albany, Philadelphia, Baltimore, +Washington, Richmond, and Charleston. In the two days the subscriptions +only reached the sum of $3,956,400. They were again opened on the 25th +of March at New York, Philadelphia, Baltimore, and Washington. The New +England and Southern States seem to have been disregarded because of +their indifference in the first instance. The books remained open from +March 25 to 31, during which time there were received $1,881,800, a +total of $5,838,200. + +The pressure fell on the Middle States. In these, fortunately for the +government, there were three great capitalists whose faith in the future +prosperity of the United States was unimpaired. All were foreigners: +David Parish and Stephen Girard in Philadelphia and John Jacob Astor in +New York. These now came forward, no doubt at the instance of Mr. +Gallatin, who was a personal friend of each. Parish and Girard offered +on April 5 to take eight millions of the loan at the rate of +eighty-eight dollars for a certificate of one hundred dollars bearing +interest at six per cent., redeemable before December 31, 1825, they to +receive one quarter of one per cent. commission on the amount accepted, +and in case of a further loan for the service of the year 1813, to be +placed on an equal footing with its takers. John Jacob Astor on the same +day and at the same place proposed to take for himself and his friends +the sum of two million and fifty-six thousand dollars of the loan on the +same conditions. These offers were accepted and the loan was complete. +An offer on behalf of the State of Pennsylvania to take one million of +the loan was received too late. Altogether the offers amounted to about +eighteen millions, or two millions more than the sum demanded. Mr. +Gallatin, clinging to his old plan, endeavored to negotiate this loan at +par, by offering a premium of a thirteen years' annuity of one per +cent., but found it impracticable. Indeed, the system of annuity, +general in England, has never found favor as an investment in the United +States. + +This was Mr. Gallatin's last financial transaction. A few weeks later, +at his own request, he severed his actual connection with the Treasury +Department and was on his way to St. Petersburg to secure the proffered +mediation of the emperor of Russia between the United States and Great +Britain. + +Thus ended Mr. Gallatin's administration of the national finances. The +hour for saving had passed. The imperious necessities of war take no +heed of economic principles. The work which the secretary had done +became as the rope of sand. It is not surprising that Gallatin wearied +of his post; that he watched with vain regret and unavailing sighs the +unavoidable increase of the national debt, and that he sought relief in +other services where success was not so evanescent as in the Treasury +Department. Before the close of Madison's administration, February 12, +1816, the public debt had run up to over one hundred and twenty-three +millions,[15] and a sum equal to the entire amount of Mr. Gallatin's +savings in two terms had been expended in one. But his work had not been +in vain. The war was the crucial test of the soundness of his financial +policy. The maxims which he announced, that debt can only be reduced by +a surplus of revenue over expenditure, and the accompaniment of every +loan by an appropriation for its extinguishment, became the fundamental +principle of American finance. Mr. Gallatin was uniformly supported in +it by Congress and public opinion. It was faithfully adhered to by his +distinguished successors, Dallas and Crawford, and the impulse thus +given continued through later administrations, until, in 1837, twenty +years after the peace, the entire debt had been extinguished. All this +without any other variation from Mr. Gallatin's original plan than an +increase of the annual appropriation, to the sinking fund for its +reimbursement, from eight to ten millions.[16] + +The only charge which has ever been made against Gallatin's +administration was, that he reduced the debt at the expense of the +defenses and security of the country; but, to quote the words of one of +his biographers:[17] "Mr. Gallatin had the sagacity to know that it [the +redemption of the debt] would make but little difference in the degree +of preparation of national defense and means of contest, for which it is +impossible ever to obtain a considerable appropriation before the near +approach of the danger that may render them necessary. He knew that the +money thus well and wisely devoted to the payment of the debt was only +rescued from a thousand purposes of extravagance and mal-application to +which all our legislative bodies are so prone whenever they have control +of surplus funds." In our own day the irresistible temptations of a full +treasury need no labored demonstration. Friend and foe drop political +differences over the abundant fleshpot. The very thought of catering to +such appetites disgusted Gallatin. To Jefferson he frankly said, in +1809, that while he did not pretend to step out of his own sphere and to +control the internal management of other departments, yet he could not +"consent to act the part of a mere financier, to become a contriver of +taxes, a dealer of loans, a seeker of resources for the purpose of +supporting useless baubles, of increasing the number of idle and +dissipated members of the community, of fattening contractors, pursers, +and agents, and of introducing in all its ramifications that system of +patronage, corruption, and rottenness which you justly execrate." + +RECEIPTS AND EXPENDITURES DURING MADISON'S ADMINISTRATION, FROM + ELLIOTT'S SYNOPTICAL EXHIBITS. + + RECEIPTS. + +------------+----------------+---------------+----------------+ +Four Years | Customs. | Internal | Direct Taxes. | +Ending | | Revenue. | | +Dec. 31. | | | | +------------+----------------+---------------+----------------+ +1812 | $38,151,330.15 | $18,674.03 | $28,491.87 | +1816 | 62,813,212.43 | 11,470,507.24 | 8,639,611.38 | + |----------------+---------------+----------------+ +Madison | 100,964,542.58 | 11,489,181.27 | 8,668,103.25 | +------------+----------------+---------------+----------------+ +----------------+----------------+-------------------+----------------+ + Postage. | Public Lands. | Loans and | Dividends | + | | Treasury Notes. | Sales of | + | | | Bank Stock. | +----------------+----------------+-------------------+----------------+ + $85,077.40 | $2,889,466.46 | $15,606,201.30 | - | + 364,787.84 | 4,977,570.54 | 94,321,103.73 | - | +----------------+----------------+-------------------+----------------+ + 449,865.24 | 7,867,037.00 | 109,927,305.03 | - | +----------------+----------------+-------------------+----------------+ + +----------------+---------------- + Miscellaneous. | Total. + | + | +----------------+---------------- + $209,309.34 | $56,988,550.55 + 630,248.16 | 183,217,041.32 +----------------+---------------- + 839,557.50 | 240,205,591.87 +----------------+---------------- + + EXPENDITURES. + +-----------+-----------------+---------------+----------------+ +Four Years | Civil List. | Foreign | Miscellaneous. | +Ending | | Intercourse. | | +Dec. 31. | | | | +-----------+-----------------+---------------+----------------+ +1812 | $2,887,197.98 | $860,281.28 | $1,619,849.12 | +1816 | 3,768,342.61 | 1,042,633.42 | 5,015,100.92 | + |-----------------+---------------+----------------+ +Madison | 6,655,540.59 | 1,902,914.70 | 6,634,950.04 | +-----------+-----------------+---------------+----------------+ + +----------------+----------------+-------------------+----------------+ + Military Dept. | Pensions. | Indian Dept. | Naval Dept. | + | | | | + | | | | +----------------+----------------+-------------------+----------------+ + $19,480,722.54 | $338,023.68 | $944,848.84 | $10,006,934.54 | + 70,809,210.90 | 435,614.48 | 1,140,015.30 | 26,326,169.25 | +----------------+----------------+-------------------+----------------+ + 90,289,933.44 | 773,638.16 | 2,084,864.14 | 36,333,103.79 | +----------------+----------------+-------------------+----------------+ + +----------------+---------------- + Public Debt. | Total. + | + | +----------------+---------------- + $26,920,285.12 | $63,058,143.10 + 56,508,652.66 | 165,045,739.54 +----------------+---------------- + 83,428,937.78 | 228,103,882.64 +----------------+---------------- + + * * * * * + +_Revenue_ + +_L'Etat c'est moi_ was the autocratic maxim of Louis Quatorze. An +adherence to it cost the Bourbons their throne. Burke was more +philosophical when he said, "The revenue of the State is the State." Its +imposition, its collection, and its application involve all the +principles and all the powers of government, constitutional or +extraordinary. It is the sole foundation of public credit, the sole +support of the body politic, its life-blood in peace, its nerve in war. +The "purse and the sword" are respectively the resource and defense of +government and peoples, and they are interdependent powers. With the +discovery of the sources of revenue, and the establishment of its +currents, Mr. Gallatin, in the first eight years of his administration +of the Treasury, had nothing to do. He had only to maintain those +systems which Hamilton had devised, and which, wisely adapted to the +growth of the country, proved amply adequate to the ordinary +expenditures of the government and to the gradual extinguishment of the +debt. The entire revenue included three distinct branches: imposts on +importations and tonnage, internal revenue, sales of public lands. The +duties on imports of foreign merchandise were alone sufficient to meet +the current expenses of the various departments of administration on a +peace establishment, and, increasing with the growth of the country, +would prove ample in future. The gross amount of imports in the four +years of Adams's administration, 1796-1800, was about three hundred and +fourteen millions of dollars, and the customs yielded about thirty +millions. + +Mr. Gallatin's first annual report, submitted to the House of +Representatives in December, 1801, exhibited his financial scheme. He +recapitulated the various sources of permanent revenue. They were those +of Hamilton's original tariff. + +The revenues for the year ended September 30, 1801, were the basis of +the estimates for future years. These were + +Duties on imports and tonnage $10,126,213.92 +Internal revenue 854,000.00 +Land sales 400,000.00 + -------------- + $11,380,213.92 + +But the close of the war in Europe sensibly diminished the enormous +carrying trade which fell to the United States as neutrals, and, as a +consequence, the revenue from that source; large quantities of goods +were brought into the United States and reexported to foreign ports +under a system of debenture. The revenue on what Mr. Gallatin calls +"this accidental commerce" was $1,200,000. He therefore _estimated the +permanent revenues at_ + +Customs duties $9,500,000 +Land sales 400,000 +Postage 50,000 +Internal revenue 650,000 + ----------- + $10,600,000 + +Or, without the internal revenue, say ten millions of permanent revenue, +as a basis for _the permanent expenditures_. + +To bring the expenditures within this sum, however, a reduction in the +army and navy establishments was necessary. This Gallatin soon found to +be too radical a measure for success, either in the cabinet or Congress, +however well it may have accorded with Jefferson's utopian views. In the +budget of 1802 the internal revenue, $650,000, was, therefore, a +necessary item. The expenditures proposed were + +Annual appropriation for interest and +principal of debt $7,100,000 +Civil list $780,000 +Foreign intercourse 200,000 +Military and Indian Dept 1,420,000 +Naval 1,100,000 + ----------- + $3,500,000 3,500,000 + ----------- + $10,600,000 + +In this budget the estimate for the military establishment was an +increase over that of Wolcott for 1801, which was $1,120,000. But the +Republicans in the House were not content with this arrangement. The +internal revenues were utterly distasteful to them. They had been laid +against their protest and collected under military menace. They were of +those Federal measures of which they would have none. John Randolph, +chairman of the Committee of Ways and Means, reported, March 2, 1802, +against the entire system of internal duties, in the old words of the +Pennsylvania radicals, as vexatious, oppressive, and peculiarly +obnoxious; as of the nature of an excise which is hostile to the genius +of a free people, and finally because of their tendency to multiply +offices and increase the patronage of the executive. The repeal was +imperative upon the Republican party. On April 6, 1802, the act was +repealed and the surplus of the budget stripped from it, without Mr. +Gallatin's consent, certainly, but also without protest from him. + +The prosperity of the country continued. The impost duties for the +fiscal year ending September 30, 1802, rose to $12,280,000, the sales of +the public lands to $326,000, and the postage to $50,500, a total of +$12,656,500, and left in the Treasury, September 30, 1802, the sum of +$4,539,675. This large increase in the Treasury did not in the least +change Mr. Gallatin's general plan, and his budget for 1803 was based on +his original scale of a permanent revenue of $10,000,000, to correspond +with which the estimates of the preceding year were reduced. The fiscal +year closed September 30, 1803, with a balance in the Treasury of +$5,860,000. This situation of the finances was fortunate in view of +secret negotiations which the President and Congress were initiating for +the purchase of Louisiana from France. + +The secretaries of war and of the navy had promised to reduce their +expenditures to a figure approximate to Mr. Gallatin's estimates; but +the breaking out of hostilities with Tripoli prevented the proposed +economy, and Mr. Gallatin was called upon to provide for an increased +expenditure with one certain source of revenue definitively closed. He +therefore proposed an additional tax of two and one half per cent. on +all importations which paid an _ad valorem_ duty. This additional +impost, laid by act of March 25, 1804, called the Mediterranean Fund, +remained in force long after the war closed and held its place on the +books of the Treasury under that name. + +The bulk of the cost of Louisiana was met by an issue of bonds; but Mr. +Gallatin, true to his principle, applied the moneys in the Treasury as +far as they would go. The budget for 1805 was on a different scale. The +increase in the debt demanded a proportionate increase in the revenue to +meet the additional sum required for interest and gradual annual +reimbursement. The Mediterranean Fund was sufficient to meet the +increased amounts required for the navy. In this manner he held up the +Navy Department to a strict accountability and made it responsible to +Congress and not to the cabinet for its administration, and he thus, +from his own point of view, relieved the Treasury Department from any +responsibility for extraordinary expenditure. + +Mr. Gallatin closed his four years of administration with flying colors. +The successful management of the finances was an important factor in the +election of 1804, which returned Mr. Jefferson to the presidential chair +and insured to the country the inestimable advantages of Mr. Gallatin's +practical mind. Order reigned in his department at least, and order +subordinate to the strictest requirements of law. In the four years, +1801-1804, Jefferson's first term, the imports aggregated $337,363,510 +and the customs yielded $45,000,000. + +The annual report, made December 9, 1805, announced an increasing +revenue, amounting in all to thirteen and one half millions of dollars, +chiefly from customs. Still Mr. Gallatin made but small addition to his +estimates for the coming year. The permanent revenue he raised to twelve +and one half millions and increased the appropriation for the payment of +the debt and interest to eight millions. Nothing occurred during the +next year to check the growth of the country; the revenue continued on a +rising scale, and reached close upon fifteen millions of dollars. + +So far Mr. Gallatin had met but inconsiderable obstacles in his course, +and these he used to his advantage to impress economy upon the Army and +Navy Departments, and enforce his principle of minute appropriations +for their government. All that he had already accomplished in the +establishment of a sound financial system and the support of the credit +of the United States was but the basis of a broader structure of +national economy. His extensive scheme of internal improvements was +hardly matured when the thunder broke in the clear sky. + +The acquisition of Louisiana, the large carrying trade which had passed +under the American flag, and the rapid prosperity of the financial and +industrial condition of the country aroused the jealousy of Great +Britain, and determined her to check the further progress of the United +States by war, if need be. The capture of the American frigate +Chesapeake by the man-of-war Leopard, June 22, 1807, was only the first +in a series of outrages which rendered the final collision, though long +delayed, inevitable. Mr. Gallatin at once recognized that the Treasury +could no longer be conducted on a peace basis. "Money," he wrote to +Joseph H. Nicholson, "we will want to carry on the war; our revenue will +be cut up; new and internal taxes will be slow and not sufficiently +productive; we must necessarily borrow. This is not pleasing to me, but +it must be done." Congress was called together for October 26, 1807, and +on November 5, Mr. Gallatin sent in his annual report. There was still +hope that Great Britain would make amends for the outrage, and Congress +was certainly peaceably disposed. In the condition of the Treasury +there was no reason as yet for recommending extraordinary measures. The +revenues for the year passed the sum of seventeen millions; the balance +in the Treasury reached eight and one half millions; the surplus on a +peace footing was twelve millions. Mr. Gallatin recommended that the +duties should be doubled in case war were threatened. He said, "Should +the revenue fall below seven millions of dollars, not only the duty on +salt and the Mediterranean duties could be immediately revived, but the +duties on importation generally be considerably increased, perhaps +double, with less inconvenience than would arise from any other mode of +taxation." Experience had proven that this source of revenue is in the +United States "the most productive, the easiest to collect, and least +burdensome to the great mass of the people." But still the war-cloud did +not break. Mr. Canning contented himself with war in disguise, and by +his Order in Council of November 11, 1807, shut the ports of Europe to +American trade, and wiped away the advantages of the United States as a +neutral power. The United States answered with the act of embargo on +December 22, 1807, completing, as far as it was possible for legislation +to effect it, the blockade of the Treasury Department as regarded +revenues from foreign imports. The immediate effect, however, of these +acts in Great Britain and America was an enormous temporary increase of +importations in the interim from the time of the passage of the act +until the date when it took effect. To aid merchants in this peculiar +condition of affairs an act was passed by Congress, on March 10, 1808, +extending the terms of credit on revenue bonds. + +Mr. Gallatin's report of December 16, 1808, closed the record of his +eight years of management of the Department. In the second term of +Jefferson's administration, 1805-1808, the gross amount of imports had +risen to $443,990,000, and the customs collected to nearly $60,000,000. +In the entire eight years, 1800-1808, the gross amount of importations +was $781,000,000, and the customs yielded $105,000,000. The entire +expenses of the government in the same period, including $65,000,000 of +debt, had been liquidated from customs alone. + +The specie in the Treasury on September 20, 1808, reached nearly +$14,000,000. Mr. Jefferson knew of the amount in the Treasury when he +wrote his last message, November 8, 1808, and he could not have been +ignorant of Mr. Gallatin's warning of the previous year that a +continuance of the embargo restriction would reduce the revenue below +the point of annual expenditures and require an additional impost; yet +he had the ignorance or the presumption to say in his message, "Shall it +(the surplus revenue) lie unproductive in the public vaults? Shall the +revenue be reduced? or shall it not rather be appropriated to the +improvement of roads, canals, rivers, education, and other great +foundations of prosperity and union under the powers which Congress may +already possess or such amendments of the Constitution as may be +approved by the States? While uncertain of the course of things, the +time may be advantageously employed in obtaining the powers necessary +for a system of improvement, should it be thought best." In these words +Jefferson surrendered the vital principle of the Republican party. In +his satisfaction at the only triumph of his administration, the +management of the finances and the purchase of a province without a +ripple on the even surface of national finance, he gave up the very +basis of the Republican theory, the reduction of the government to its +possible minimum, and actually proposed a system of administration +coextensive with the national domain, an increase of the functions of +government, and consequently of executive power. + +The annual report of the Treasury, presented December 16, 1808, showed +no diminution of resources. The total receipts for the fiscal year were +nearly eighteen millions. The total receipts for-- + +Customs reached $26,126,648 +On which debentures were allowed + on exportations 10,059,457 + ----------- +Actual receipts from customs $16,067,191 + +But this source of revenue was now definitively closed by the embargo, +while the expenditures of the government were increased. Mr. Gallatin +met the situation frankly and notified Congress of the resources of the +Treasury. + + RESOURCES FOR 1809 + +Cash in Treasury $13,846,717.52 +Back customs, net 2,154,000.00 + -------------- +Total resources $16,000,717.52 + +The receipts from importations and land sales would be offset by +deductions for bad debts and extensions of credit to importers. The +expenditures were set at $13,000,000, which would leave in the Treasury +for extraordinary expenditure $3,000,717. The disbursements had been far +beyond the estimates; those for the military and naval establishments +reaching together six millions. + +It is not to be supposed that Mr. Gallatin saw this depletion of the +Treasury, this rapid dissipation of the specie,--always desirable and +never more so than in periods of trouble,--without disappointment and +regret. His report to Congress was as outspoken politically as it was +financially, and from a foreign-born citizen to an American Congress +must have carried its sting. "Either America," he wrote, "must accept +the position of commerce allotted to her by the British edicts, and +abandon all that is forbidden,--and it is not material whether this is +done by legal provisions limiting the commerce of the United States to +the permitted places, or by acquiescing in the capture of vessels +stepping beyond the prescribed bounds. Or the nation must oppose force +to the execution of the orders of England; and this, however done, and +by whatever name called, will be war." He recalled to them his advice of +the preceding years in a vein of tempered bitterness: "Had the duties +been doubled on January 1, 1808, as was then suggested, in case of war +the receipts into the Treasury during that and the ensuing year would +have been increased nine or ten millions of dollars." He then proposed +to continue the Mediterranean Fund and to double all existing duties on +importations after January 1, 1809. He informed them that no internal +taxes, either direct or indirect, were contemplated by him even in the +case of hostilities against the two belligerent powers; France having +responded to the Orders in Council by Napoleon's Milan decree, December +17, 1807, which was quite as offensive to the United States as that of +Canning. With true statesmanship Mr. Gallatin nerved the country to +extraordinary exertion by reminding it that the geographical situation +of the United States and their history since the Revolution removed +every apprehension of frequent wars. + +During the year 1809 the country drifted along apparently without rudder +or compass, helmsman or course, and the treasury locker was being +rapidly reduced to remainder biscuit. Mr. Madison was inaugurated in +March. In his first message, May 23, 1809, he exposed the financial +situation with an indecision which was as marked a trait of his +character as optimism was of that of Jefferson. In his message of +November 29, 1809, he said "the sums which had been previously +accumulated in the Treasury, together with the receipts during the year +ending on September 30 last, and amounting to more than nine millions of +dollars, have enabled us to fulfill all our engagements and defray the +current expenses of government without recurring to any loan; but the +insecurity of our commerce and the consequent demands of the public +revenue will probably produce a deficiency in the receipts of the +ensuing year." Beyond this Madison did not venture; Gallatin was left +alone. + +The Treasury report of December 8, 1809, announced the beginning of +short rations. The expenses of government, exclusively of the payments +on account of the principal of the debt, had exceeded the actual +receipts into the Treasury by a sum of near $1,300,000. If the military +and naval establishments were to be continued at the figures of 1809, +when six millions were expended, there would result a deficiency of +$3,000,000, and a loan of $4,000,000 would be necessary. Otherwise the +Mediterranean Fund would suffice. The cash in the Treasury had fallen +from nearly fourteen millions on June 2, 1809, to less than six millions +on September 3, following. In this report Gallatin expressed his +opinion, that the system of restriction established by the embargo and +partly relaxed must be entirely reinstated or wholly abandoned. On May +1, 1810, an act of strict prohibition of importations from Great +Britain and her dependencies was passed. + +While from the incompetency of the administration the country was fast +approaching the real crisis of open war, the Republicans in Congress +were deliberately destroying and undermining the basis of national +credit, by which alone it could be carried on. In February the United +States Bank, by which, and its branches, the customs were collected +throughout the country, was destroyed by the refusal of Congress to +renew its charter. Mr. Gallatin in his combinations never contemplated +such a contingency as the total destruction of the fiscal agency on +which the government had relied for twenty years. Unwilling to struggle +longer against the mean personalities and factious opposition of his own +party in Congress, he tendered his resignation to Mr. Madison. But the +Republican party was a party of opposition, not of government. With the +exception of Mr. Gallatin, no competent administrative head had as yet +appeared. There was no one in the party or out of it to take his place. +Mr. Madison knew it. Mr. Gallatin felt it, and remained. Congress met in +November. On the 25th Mr. Gallatin sent in his annual report; the +receipts reached thirteen and a half million dollars. + +The budget for 1812 left a deficiency to be provided for of $1,200,000. +This was a small matter. The revenue Mr. Gallatin proposed to increase, +on the plan before recommended, by additions of fifty per cent, to the +imposts on foreign commerce. This he preferred to any internal tax. + +At the close of the year the country, chafed beyond endurance by the +indignities put upon it and the sufferings it encountered without +compensation to its pride, was eager for war. Congress was no way loath +to try the dangerous path out of its labyrinth of blunders. The near +contingency imposed the necessity of an immediate examination of the +sources of revenue. In January, 1812, Mr. Gallatin was requested by the +chairman of the Committee of Ways and Means to give his opinion as to +the probable amount of receipts from duties on tonnage and merchandise +in the event of war. This, in view of the vigorous restrictions laid by +France under her continental system of exclusion, Mr. Gallatin estimated +under existing rules as not to exceed $2,500,000. He then stated, +without hesitation, that it was practicable and advisable to double the +rate of duties, and to renew the old duty on salt. The sum acquired, +with this addition, he anticipated, would amount to $5,400,000. + +On the basis of annual loans of ten millions of dollars during the +continuance of the war (the sum assumed by the committee), the +deficiency for 1814 would amount, by Mr. Gallatin's estimate, to +$4,200,000. To produce a net revenue equal to this deficiency he stated +that the gross sum of taxes to be laid must be five millions of dollars. +He then reverted to his report of December 10, 1808, in which he had +stated that "no internal taxes, either direct or indirect, were +contemplated, even in the case of hostilities carried on against the two +great belligerent powers." The balance in the Treasury was then nearly +fourteen millions of dollars, but in view of the daily decrease of the +revenue he had recommended "that all the existing duties be doubled on +importations subsequent to the first day of January, 1809." As the +revenues of 1809, 1810, and 1811 had yielded $26,000,000, the sum on +hand, with the increase thus recommended, would have reached +$20,000,000, a sum greater than the net amount of the proposed internal +taxes in four years. + +At that time no symptoms had appeared from which the absolute +dissolution of the Bank of the United States without any substitute +could have been anticipated. If its charters had been renewed, on the +conditions suggested by Mr. Gallatin, the necessity for internal taxes +would have been avoided. The resources of the country, properly applied, +however, were amply sufficient to meet the emergency; but Mr. Gallatin +distinctly threw upon Congress, and by implication upon the Republican +majority, the responsibility for the state of the Treasury, and the +imperative necessity for a form of taxation which it detested as +oppressive, and which it was a party shibboleth to declare in and out of +season, to be unconstitutional. The choice of the administration was +between the Bank which Jefferson detested and Gallatin favored, and the +internal tax which Mr. Gallatin considered as the most repulsive in its +operation of any form of revenue. + +But necessity knows no law, and the prime mover, if not the original +author, of the opposition to Hamilton's system was driven to propose the +renewal of the measures, opposition to which had brought the Republican +party into power, and had placed himself at the head of the Treasury. He +now proposed to raise the five millions deficiency by internal +taxation--$3,000,000 by direct tax and $2,000,000 by indirect tax. + +Continuing his lucid and remarkable report with careful details of the +methods to be adopted, Gallatin closed with an urgent recommendation +that the crisis should at once be met by the adoption of efficient +measures to provide, with certainty, means commensurate with the +expense, and by preserving unimpaired, instead of abusing, that credit +on which the public resources eminently depend, to enable the United +States to persevere in the contest until an honorable peace should be +obtained. Thus he held the bitter cup to the lips of the Republican +Congress, which, however, was not yet to drain its full measure. War was +declared June 18, 1812. On July 1, 1812, an act was passed imposing an +additional duty of one hundred per cent. on all importations, an +additional ten per cent. on goods brought in foreign vessels, and also a +duty of $1.50 per ton on all foreign vessels. The duty was to remain +until the expiration of one year after peace should be made with Great +Britain. On December 5, 1812, Mr. Gallatin sent in his last report. The +balance in the treasury was $3,947,818. His estimate for the service of +the year 1813 was a war budget. Resources, $12,000,000; expenditures, +$31,926,000; promising a deficiency of $19,925,000. For this and other +contingencies Mr. Gallatin asked for a loan of twenty millions. The +authority was granted, but the recommendations of direct and indirect +taxes were disregarded. Here Mr. Gallatin's direct connection with the +customs system closed. + +The value of foreign importations during Madison's first term was +$275,230,000, and the customs derived from them thirty-eight millions of +dollars. + + * * * * * + +Congress adjourned March 4, 1813, but was called together again in May, +when the subject of internal taxes was again forced upon them. The +internal revenue was a part of Hamilton's general scheme. His original +bill was passed, and, after numerous amendments suggested by trial, its +grievances were tempered and the friction removed. In Adams's term it +yielded nearly three millions of dollars. In Jefferson's first term, +before the rise in customs revenue allowed of its abandonment, Mr. +Gallatin drew from this source nearly two millions of dollars, enough to +pay the interest and provide for the extinguishment of a six per cent. +loan of thirty millions; a war budget in itself. But it had been so +entirely set aside that in Jefferson's second term, 1808-1812, it had +fallen to a little over sixty-three thousand; in Madison's first term, +to a little under nineteen thousand dollars. Was it to this Mr. Dallas +referred in that passage of his report, made in 1815, on the financial +operations of the war, in which he expresses his regret "that there +existed no system by which the internal resources of the country could +be brought at once into action, when the resources of its external +commerce became incompetent to answer the exigencies of the time? The +existence of such a system would probably have invigorated the early +movements of the war, might have preserved the public credit unimpaired, +and would have rendered the pecuniary contributions of the people more +equal, as well as more effective." "It certainly," to use the words of +this Mr. Gallatin's oldest and best political friend, "furnishes a +lesson of practical policy." Disagreeable as the necessity was, it could +not be avoided, and Mr. Gallatin met it manfully. Nay more, he seems to +have had a grim satisfaction in proposing the measure to the Congress +which had thwarted him in his plans. In accordance with his suggestions, +Congress, in the extra session of May, 1813, laid a direct tax of +$3,000,000 upon the States, and specific duties upon refined sugar, +carriages, licenses to distillers of spirituous liquors, sales at +auction, licenses to retailers of wines, and upon notes of banks and +bankers. These duties, in the beginning temporary, were calculated to +yield $500,000, and with the direct tax to give a sum of $3,500,000. But +the increasing expenditures again requiring additional sums of revenue, +the duties were made permanent and additional taxes were laid; the +entire revenue for 1815 being raised so as to yield $12,400,000. In the +second term of Mr. Madison the internal revenue brought in nearly eleven +and a half millions. The Federalists, who as a party were opposed to the +war, enjoyed the situation; Mr. Gallatin was compelled to impose the +internal revenue tax which he detested, and Mr. Dallas was called upon +to enforce its application. + +[Illustration: A. J. Dallas] + + * * * * * + +The only remaining source of revenue was the sale of public lands. This +also was a part of Hamilton's original scheme. The public lands of the +United States were acquired in three different ways, namely, 1, by +cessions from the States of such lands as they claimed, or were entitled +to by their original grants or charters from the crown, while colonies; +2, by purchase from Indian tribes; 3, by treaties with foreign +nations,--those of 1783 and 1794 with Great Britain, of 1795 with Spain, +and of 1803 with France. The need of bringing this vast territory under +the control of the government and disposing of it for settlement was +early apparent. In July, 1791, Hamilton sent in to the House a report on +"A uniform system for the disposition of the lands, the property of the +United States." In March preceding, grants of the United States had +confirmed to the actual settlers in the Illinois country the possession +of their farms. But what with the Indian wars and the rebellion within +the United States, no action was taken by Congress to carry the +recommendations of the secretary into effect, until Mr. Gallatin, whose +residence on the frontier gave him direct interest in the subject, +brought up the matter at the very first session he attended. In 1796 a +bill was passed authorizing and regulating the sale of lands northwest +of the Ohio and above the mouth of the Kentucky River, and a +surveyor-general was appointed with directions to lay out these lands in +townships. The sales under Adams's administrations were trifling, the +total amount received from this source before the year 1800 being +slightly over one hundred thousand dollars. In May, 1800, sales of the +same lands were authorized at public vendue at not less than two dollars +per acre; four land offices were established in the territory; surveyors +were appointed, and a register of the land office was made a permanent +official. In March, 1803, an act was passed to regulate the sale of the +United States lands south of the Tennessee River, two land offices were +established and public sale provided for at the same price set in the +act of 1800. In March, 1804, the Indiana lands lying north of the Ohio +and east of the Mississippi were brought within similar regulations, and +an act was passed concerning the country acquired under Spanish and +British grants. In the same month Louisiana was erected into two +territories. The sums received from the sales during the first term of +Jefferson's administration amounted to little more than one million of +dollars. In January, 1805, the territory of Indiana was divided into two +separate governments; that one which was set off received the name of +Michigan, and in 1808, its territory was brought under the regulations +of the land office. + +The sums received from the sales in the second term of Jefferson's +administration reached nearly two and one half millions of dollars, and +in Madison's first term, nearly three millions of dollars. From first to +last Mr. Gallatin never lost sight of the subject, though occasion did +not serve for more than organization of the system which, in the four +years ending 1836, yielded nearly fifty million dollars, and paid more +than one third of the entire expenses of the government. To John W. +Eppes[18] Mr. Gallatin wrote in the crisis of 1813, "The public lands +constitute the only great national resource exclusive of loans and +taxes. They have already been mentioned as a fund for the ultimate +extinguishment of the public debt." The land offices were then in full +operation. + +In 1810 Mr. Gallatin prepared an "Introduction to the collection of +laws, treaties, and other documents respecting the public lands," which +was published pursuant to an act of Congress passed in April of that +year. + + +_Free Trade_ + +While Mr. Gallatin differed from his early Republican associates in many +of their theories of administration, he was a firm believer in the best +of their principles, namely, the wisdom of giving free scope to the +development of national resources with the least possible interference +on the part of government. One of his purposes in his persistent desire +for economy in expenditure was to reduce the tariff upon foreign +importations to the lowest practicable limit. He was the earliest public +advocate in America of the principles of free trade, and an experience +of sixty years confirmed him in his convictions. + +The extinguishment of the debt rendered a great reduction in the revenue +possible. On the other hand, it brought the friends of a low tariff face +to face with the problem of internal improvements. As the election of +1832 drew near, the advocates of the two systems ranged themselves in +two great parties precisely as to-day: the advocates of the protective +or American system with internal improvements as an outlet for +accumulations of revenue on the one side; on the other the advocates of +free trade. Between his desire for the advantages of the one with its +attendant disadvantages of government interference in its prosecution, +and the freedom of commerce from undue restrictions, Mr. Gallatin did +not hesitate. He threw the whole force of his experience and character +into the free trade cause, and became the leader of its friends. + +On September 30, 1831, a convention of the advocates of free trade, +without distinction of party, met at the Musical Fund Hall in +Philadelphia. Two hundred and twelve delegates appeared. Among them were +Theodore Sedgwick, George Peabody, and John L. Gardner from +Massachusetts; Preserved Fish, John Constable, John A. Stevens, Jonathan +Goodhue, James Boorman, Jacob Lorillard, and Albert Gallatin from New +York; C. C. Biddle, George Emlen, Isaac W. Norris from Pennsylvania; +Langdon Cheves, Henry Middleton, Joseph W. Allston, and William C. +Preston from South Carolina; and men of equal distinction, bankers, +merchants, statesmen, and political economists from other States. Of +this convention Mr. Gallatin was the soul. He opened its business by +stating the objects of the meeting, and nominated the Hon. Philip P. +Barbour of Virginia for president. A general committee of two from each +State was appointed, which recommended an address to the people of the +United States and a memorial to Congress. The address to the people +closed with a declaration that the near extinguishment of the national +debt, which would be discharged by the available funds of the government +on January 1, 1833, suggested that the moment was propitious for the +establishment of the principles of free trade. Thus the people of the +United States, who had successfully asserted the doctrines of free +government, might add to its claims upon the gratitude of the world by +being the first also to proclaim the theory of a free and unrestricted +commerce, the genuine "American system." Mr. Gallatin was the chairman +of the committee of fourteen, one from each State represented in the +convention, to prepare the memorial which was presented in their behalf +to Congress, the conclusions of which, presented with his consummate +ability, demonstrated with mathematical precision that a duty of +twenty-five per cent. was sufficient for all the legitimate purposes of +government. Here he found himself in direct opposition to Mr. Clay, +whose political existence was staked upon the opposite theory. Mr. Clay +answered in a great speech in the Senate in February, 1832, and forgot +himself in personal denunciation of Mr. Gallatin as a foreigner with +European interests at heart, and of utopian ideas; for this he expressed +his regret to Mr. Gallatin in an interview arranged by mutual friends at +a much later period. Mr. Gallatin's views were accepted as the policy of +the country, and after some shifting of parties, in which friends and +foes changed ground in subordination to other political exigencies, they +prevailed in the tariff of 1846, the best arranged and most reasonable +which the United States has yet seen. + +It is certain that Mr. Gallatin was opposed to "protective" revenue. His +preference was for an "even" duty on all imports. This is not the place +for an economic discussion. The true policy of the United States is +probably between the extremes of protection and free trade. The nature +of our population has been changed by the enormous immigration of the +last fifty years. Moreover, instead of an absolute freedom from debt the +nation has had to endure the legacy of debt left by the Civil War, to +meet which a development of all its resources of manufacture as well as +of agriculture is required. + + +_Administration_ + +To arrive at a correct estimate of Mr. Gallatin's administration of the +Treasury Department, a cursory review of the establishment as he +received it from the hands of Mr. Wolcott is necessary. This review is +confined to administration in its limited sense, namely, the direction +of its clerical management under the provisions of statute law. The +organization of the department as originated by Hamilton and established +by the act of September 2, 1789, provided for a secretary of the +treasury as head of the department, whose general duty should be to +supervise the fiscal affairs of the country, and particularly to suggest +and prepare plans for the improvement and support of the public credit; +and, under his direction and supervision, a comptroller to adjust and +preserve accounts; an auditor to receive, examine, and rectify accounts; +a treasurer to receive, keep, and disburse moneys on warrants signed and +countersigned; a register to keep the accounts of receipts and +expenditures; and an assistant to the secretary of the treasury to fill +any vacancy from absence or other temporary cause. In addition to the +departments of State, Treasury, and War, a fourth, that of the Navy, was +established April 30, 1798. The three departments were brought into +relation with that of the Treasury by an act passed July 16, 1798, +supplementary to that organizing the Treasury, and which provided, 1st, +for the appointment of an accountant in each department, who was +required to report to the accounting officer of the Treasury; 2d, that +the Treasurer of the United States should only disburse by warrants on +the Treasury, countersigned by the accountant of the Treasury; 3d, that +all purchases for supplies for military or naval service should be +subject to the inspection and revision of the officers of the Treasury. +Mr. Jefferson, after his usual fashion of economy in the wrong +direction, proposed to Mr. Gallatin "to amalgamate the comptroller and +auditor into one, and reduce the register to a clerk of accounts: so +that the organization should consist, as it should at first, of a keeper +of money, a keeper of accounts, and the head of the department." But in +the Treasury Department there was no extravagance during Gallatin's +administration, and the shifting of responsibility would bring no saving +of salaries. + +In May, 1800, an act was passed making it "the duty of the secretary of +the treasury to digest, prepare, and lay before Congress at the +commencement of every session a report on the subject of finances, +containing estimates of the public revenue and expenditures, and plans +for improving and increasing the revenue from time to time, for the +purpose of giving information to Congress in adopting modes for raising +the money requisite to meet the expenditures." Hamilton had never sent +in any other than a statement of expenditure for the past fiscal year, +together with the estimate of the accountant of the Treasury for the +proximate wants of the departments of government. Mr. Gallatin +incorporated in his annual report a balance sheet in accordance with the +ordinary forms of book-keeping familiar to every accountant and +indispensable in every business establishment, and such as is presented +to the public in the monthly and annual statements of the Treasury +Department at this day. + +The statutes show no legislation during Mr. Gallatin's period of +administration, and to its close he was in continual struggle to force +upon Congress and the departments an accord with his pet plan of minute +specific appropriation of the sums estimated for and expended by each. +Mr. Madison heartily agreed with Mr. Gallatin on this subject, and on +taking office placed the relations of the State Department upon the +desired footing. But the heads of the Army and Navy were never willing +to consent to the strict limitation which Mr. Gallatin would have +imposed on their expenditures. In his notes to Jefferson for the draft +of his first message in 1801, Mr. Gallatin said that the most important +reform he could suggest was that of 'specific appropriations,' and he +inclosed an outline of a form to be enforced in detail. In January, +1802, he sent to Joseph H. Nicholson a series of inquiries to be +addressed to himself by a special committee on the subject, with regard +to the mode by which money was drawn from the Treasury and the situation +of accounts between that department and those of the Army and Navy. To +these questions he sent in to the House an elaborate reply, which he +intended to be the basis of legislation. Strict appropriation was the +ideal at which he aimed, and this word was so often on his tongue or in +his messages that it could not be mentioned without a suggestion of his +personality. He carried the same nicety of detail into his domestic +life. He managed his own household expenses, and at a time when +bountiful stores were the fashion in every household he insisted on a +rigid observance of the more precise French system. He made an +appropriation of a certain sum each day for his expenses, and required +from his purveyor a strict daily account of disbursements. An amusing +story is told of him at his own table. On an occasion when entertaining +a company at dinner, he was dissatisfied with the menu and expressed his +disapprobation to his maitre d'hotel, a Frenchman, who replied to him +in broken English, that it was not his fault, but that of the +"mal-appropriations." + +The example set by Mr. Gallatin in this particular was never forgotten, +and from his day to this strict accountability has been the tradition of +the Treasury Department, now greatly increased in detail, but in +structure essentially as it was originally organized. Of its management +Mr. Sherman was able to say in his report of December 1, 1879, "The +organization of the several bureaus is such, and the system of +accounting so perfect, that the financial transactions of the government +during the past two years, aggregating $3,354,345,040, have been +adjusted without question with the exception of a few small balances, +now in the process of collection, of which it is believed that the +government will eventually lose less than $13,000, or less than four +mills for each $1000 of the amount involved;" and in 1880 he said with +entire truth, "The department is a well organized and well conducted +business office, depending mainly for its success upon the integrity and +fidelity of the heads of bureaus and chiefs of divisions." + + +_Banking_ + +There is no more instructive chapter in the history of finance than that +upon the banking system of the United States. It has its distinct eras +of radical change, each of which presents a series of tentative +experiments. The outcome, by a process of development, in which +political expediency has been as effective an agency as financial +necessity, is the present national banking system. Though the term +"government," or "national," bank is constantly used in reference to the +great banking institutions of England, France, and the United States, no +one of these is in the true sense of the word a national bank. The Bank +of England is a chartered corporation, the Bank of France an association +instituted by law. The Bank of North America, and the Bank of the United +States which followed it, were founded on the same principle. Both were +corporations of individuals intimately connected with the government, +enjoying certain privileges accorded and being under certain +restrictions, but otherwise independent of government control. + +The Bank of North America, the first bank established in the United +States, was also the first which had any direct relation to the +government. It was the conception of the comprehensive and original mind +of Robert Morris, the financier or superintendent of the public finances +of the United States. Its purpose was not the convenience or profit of +individuals, but to draw together the scattered financial resources of +the country and found a public credit. He submitted his plan to +Congress, which adopted a resolution of approval May 26, 1781. The +original plan contemplated a capital of ten millions of dollars; but the +collection of such a sum in gold and silver in one depository was beyond +the range of possibility at that period, and the capital was finally +fixed at four hundred thousand dollars, in one thousand shares of four +hundred dollars each. Subscription books were immediately opened, but +not more than $70,000 was entered during the summer months. The arrival +at Boston of a French war frigate with a remittance of $470,000 in +specie, which was brought to Philadelphia and deposited in the vaults of +the bank, enabled Mr. Morris to mature his plans. He designed to retain +this sum in the bank as a specie basis; but the necessities of the +country were so urgent during the critical season of the Yorktown +campaign, that nearly one half of it was exhausted before an +organization could be effected. In December Congress passed an ordinance +of incorporation. Mr. Morris then subscribed the specie remaining in the +Treasury, about $254,000, for shares for account of the United States, +which became thereby the principal stockholder. The limit assigned by +the ordinance remained, however, at ten millions of dollars. There was +nothing in the acts of Congress which implied any exclusive right of the +United States government in the bank except during the war of the +Revolution. A local charter was obtained from the legislature of +Pennsylvania, and the bank was opened in Philadelphia for the +transaction of business in January, 1782. Its services to the government +during the period of the war were inestimable. In the words of Hamilton, +"American independence owes much to it." But after the war such were +the local jealousies, the fears of oppression, and the dread of foreign +influence, that, on the petition of the inhabitants of Philadelphia and +some of the neighboring counties, the legislature of Pennsylvania +repealed its charter on September 13, 1785. The bank continued its +operations, however, under the charter from Congress. On March 17, 1787, +the legislature of Pennsylvania renewed the charter for fourteen years +and limited the capital to two millions of dollars. The charter was +extended for a similar term of fourteen years on March 26, 1799. Thus in +the beginning of the American banking system are found that distrust and +jealousy of money power which seem inherent in democracies. The exercise +of state jurisdiction over the existence of the Bank of North America +suggested possible embarrassments, which could not escape the +discernment of Hamilton, whose policy, as it was also that of the +Federal party, was to strengthen the powers of the government in every +vital branch of administration. + + * * * * * + +In his comprehensive plan of government Hamilton included a financial +institution to develop the national resources, strengthen the public +credit, aid the Treasury Department in its administration, and provide a +secure and sound circulating medium for the people. On December 13, +1790, he sent in to Congress a report on the subject of a national bank. +The Republican party, then in the minority, opposed the plan as +unconstitutional, on the ground that the power of creating banks or any +corporate body had not been expressly delegated to Congress, and was +therefore not possessed by it. Washington's cabinet was divided; +Jefferson opposing the measure as not within the implied powers, because +it was an expediency and not a paramount necessity. Later he used +stronger language, and denounced the institution as "one of the most +deadly hostility existing against the principles and form of our +Constitution," nor did he ever abandon these views. There is the +authority of Mr. Gallatin for saying that Jefferson "died a decided +enemy to our banking system generally, and specially to a bank of the +United States." But Hamilton's views prevailed. Washington, who in the +weary years of war had seen the imperative necessity of some national +organization of the finances, after mature deliberation approved the +plan, and on February 25, 1791, the Bank of the United States was +incorporated. The capital stock was limited to twenty-five thousand +shares of four hundred dollars each, or ten millions of dollars, payable +one fourth in gold and silver, and three fourths in public securities +bearing an interest of six and three per cent. The stock was immediately +subscribed for, the government taking five thousand shares, two millions +of dollars, under the right reserved in the charter. The subscription of +the United States was paid in ten equal annual installments. A large +proportion of the stock was held abroad, and the shares soon rose above +par. By an act of March 2, 1791, the funded three per cents. were also +made receivable in payment of subscriptions to the bank, whence it has +been said that out of the funding system sprung the bank, as three +fourths of its capital consisted of public stocks. Authority was given +the bank to establish offices of discount and deposit within the United +States. The chief bank was placed in Philadelphia, and branches were +established in eight cities, with capitals in proportion to their +commercial importance. + +In 1809 the stockholders of the Bank of the United States memorialized +the government for a renewal of their charter, which would expire on +March 4, 1811; and on March 9, 1809, Mr. Gallatin sent in a report in +which he reviewed the operations of the bank from its organization. Of +the government shares, five million dollars at par, two thousand four +hundred and ninety-three shares were sold in 1796 and 1797 at an advance +of 25 per cent., two hundred and eighty-seven in 1797 at an advance of +20 per cent., and the remaining 2220 shares in 1802, at an advance of 45 +per cent., making together, exclusive of the dividends, a profit of +$671,680 to the United States. Eighteen thousand shares of the bank +stock were held abroad, and seven thousand shares, or a little more than +one fourth part of the capital, in the United States. A table of all the +dividends made by the bank showed that they had on the average been at +the rate of 8-3/8 (precisely 8-13/34) per cent. a year, which proved +that the bank had not in any considerable degree used the public +deposits for the purpose of extending its discounts. From a general view +of the debits and credits, as presented, it appeared that the affairs of +the Bank of the United States, considered as a moneyed institution, had +been wisely and skillfully managed. The advantages derived by the +government Mr. Gallatin stated to be, 1, safekeeping of the public +moneys; 2, transmission of the public moneys; 3, collection of the +revenue; 4, loans. The strongest objection to the renewal of the charter +lay in the great portion of the bank stock held by foreigners. Not on +account of any influence over the institution, since they had no vote; +but because of the high rate of interest payable by America to foreign +countries. If the charter were not renewed the principal of that +portion, amounting to $7,200,000, must at once be remitted abroad; but +if the charter were renewed, dividends equal to an interest of about +8-1/2 per cent. per annum must be remitted. Mr. Gallatin's report closed +with the following suggestions:-- + +I. That the bank should pay an interest to the United States on the +public deposits above a certain sum. + +II. That it should be bound to lend the United States a sum not +exceeding three fifths of its capital. + +III. That the capital stock of the bank should be increased to thirty +millions of dollars, to be subscribed for, 1, five millions by citizens +of the United States; 2, fifteen millions by the States; a branch to be +established in each subscribing State; 3, payments by either individuals +or States to be in specie or public stock of the United States at rates +to be fixed by law; the subscribing States to pay in ten annual +installments. + +IV. That some share should be given in the direction to the general and +state governments by appointment of directors in the general direction +and branches. + +The result of this plan would be, 1st, that the United States might, +from the interest on the public deposits, accumulate during years of +peace and prosperity a treasure sufficient to meet periods of war and +calamity; 2d, that they might rely on a loan of eighteen millions of +dollars in any sudden emergency; 3d, that by the payment in ten +installments the increase in capital would be in proportion to the +progressive state of the country; 4th, that the bank itself would form +an additional bond of common interest and union amongst the several +States. But these arguments availed not against the blind and ignorant +jealousy of the Republican majority in the House. The days of the bank +were numbered. Congress refused to prolong its existence, and the +institution was dissolved. Fortunately for the country, it wound up its +affairs with such deliberation and prudence as to allow of the +interposition of other bank credits in lieu of those withdrawn, and +thus prevented a serious shock to the interests of the community. In the +twenty years of its existence from 1791 to 1811 its management was +irreproachable. Its annual dividends from 1791 to 1809 were 8-2/3 per +cent., and its stock, always above par, from 1805 to 1809 ranged from 20 +to 40 per cent. premium. + +In its numerous and varied relations to the government it had been a +useful and faithful servant, and its directors had never assumed the +attitude of money kings, of which the Jeffersonian democracy pretended +to stand in hourly dread. To the general and important nature of its +financial service Mr. Gallatin gave his testimony in 1830; after his own +direct participation in public affairs had ended. + + "Experience, however, has since confirmed the great utility and + importance of a bank of the United States in its connection with + the Treasury. The first great advantage derived from it consists in + the safekeeping of the public moneys, securing in the first + instance the immediate payment of those received by the principal + collectors, and affording a constant check on all their + transactions; and afterwards rendering a defalcation in the moneys + once paid, and whilst nominally in the treasury, absolutely + impossible. The next, and not less important, benefit is to be + found in the perfect facility with which all the public payments + are made by checks or treasury drafts, payable at any place where + the bank has an office; all those who have demands against + government are paid in the place most convenient to them; and the + public moneys are transferred through our extensive territory at a + moment's warning without any risk or expense, to the places most + remote from those of collection, and wherever public exigencies may + require." + +Late in life, in a letter to John M. Botts, June 14, 1841, Mr. Gallatin +expressed the same opinions with regard to the usefulness of a +government bank as an aid to the Treasury Department, but limited his +approval to that use. "Except in its character of fiscal agent to the +general government I attach much less importance to a national bank than +several of those who are in favor of it." "Did I believe," he adds in +the same letter, "that a bank of the United States would effectually +secure us a sound currency, I would think it a duty at all hazards to +promote the object." + +The reason for his doubts in 1841 is easily seen in the impossibility of +annihilating or controlling the three hundred distinct currencies of as +many banks, each nominally convertible into specie at its point of +issue; a financial puzzle which Mr. Chase solved in the device and +organization of the present national banking system, which, without +involving the government in banking operations, affords to the people a +homogeneous currency of uniform value, and secures its convertibility by +reasonable but absolute restrictions, upon conformity to which the +existence of the banks depends. The exigencies of war compelled an +acquiescence in the plans of Mr. Chase, which, at the time when Mr. +Gallatin expressed his doubts, could not have been had in any system +whatever which involved the subordination of the banks. + +The wide spread of the state bank system, with its irresponsible and +unlimited issues, occurring subsequent to Mr. Gallatin's withdrawal from +the Treasury, was a consequence of the failure to renew the charter of +the Bank of the United States; and if ever there were a system by which +the inhabitants of States whose floating capital was small were placed +at the mercy of moneyed corporations of the States where it was +abundant, it was the state bank system. The experience of the old +confederation had not taught this lesson. The colonial system was +continued by the several States, and bills of credit were issued on +their faith. The continental system was a compound of the main features +of this plan. The bills were issued by the Congress, but the States were +relied upon for their ultimate redemption. + +The collapse of the entire fabric of finance led to the establishment of +the Bank of North America, the notes of which were redeemable and +redeemed at the bank counters. The article in the Constitution of 1787, +prohibiting the issue of bills of credit by the States, was evidently +intended to secure a uniform currency to the people of the United +States, and it has been by a strange perversion of this manifest +intention that the power has been conceded to the States to charter +corporations to do that which was forbidden to themselves in their +sovereign capacity; namely, to issue bills of credit, which bank-notes +are. It is idle to say that, because such bills were not a "legal +tender," they were therefore not of the character which the Constitution +forbade. Necessity knows no law, and in the absence of any other +currency the people were perforce compelled to take what they could get. +Experience later showed that large amounts of paper money manufactured +in one State were easily put in circulation in far distant communities, +and considerable sums, through the operations of wear and tear and the +vicissitudes incident to its fragile nature, never returned to plague +the inventor. + +At the time of the organization of the National Bank by Hamilton, there +were but three banks in the United States: the Bank of North America, +the Bank of New York, and the Bank of Massachusetts. Their added capital +amounted to two millions of dollars, and their issues were +inconsiderable. + +Mr. Gallatin estimated that in January, 1811, just before the expiration +of the bank charter, there were in the United States eighty-eight state +banks with a capital of $42,612,000. + +--------------------------+-------------+---------------+------------ + | | Notes in | + | Capital. | Circulation. | Specie. +--------------------------+-------------+---------------+------------ +Bank of the United States | $10,000,000 | $5,400,000 | $5,800,000 +Eighty-eight State Banks | 42,610,601 | 22,700,000 | 9,600,000 +--------------------------+-------------+---------------+------------ + | $52,610,601 | $28,100,000 | $15,400,000 +--------------------------+-------------+---------------+------------ + +Over the local institutions the Bank of the United States always +exercised a salutary control, checking any disposition to overtrade by +restraining their issues and holding them to a proper specie reserve; +and this by no other interference except its countenance or ill favor, +as such banks severally observed or disregarded the ordinary rules of +financial prudence. The immediate effect of the refusal of Congress to +recharter the Bank of the United States was to bring the Treasury to the +verge of bankruptcy. The interference of Parish, Girard, and Astor alone +saved the credit of the government, and this interference was no doubt +prompted by self-interest. That Mr. Astor was hostile to the bank is +certain. Gallatin wrote to Madison in January, 1811, that Mr. Astor had +sent him a verbal message, "that in case of non-renewal of the charter +of the Bank of the United States, all his funds and those of his +friends, to the amount of two millions of dollars, would be at the +command of government, either in importing specie, circulating +government paper, or in any other way best calculated to prevent any +injury arising from the dissolution of the bank," and he added that Mr. +Bentson, Mr. Astor's son-in-law, in communicating this message said, +"that in this instance profit was not Mr. Astor's object, and that he +would go great lengths, partly from pride and partly from wish, to see +the bank down." In 1813, when the bank was "down," Mr. Gallatin was no +longer master of the situation. He offered to treat directly with +Parish, Girard, and Astor for ten millions of dollars, but finding some +hesitation, he opened the loan for subscription. When the subscription +failed, he was at the mercy of the capitalists. + +Another immediate effect of the dissolution of the bank was the +withdrawal from the country of the foreign capital invested in the bank, +more than seven millions of dollars. This amount was remitted, in the +twelve months preceding the war, in specie. Specie was at that time a +product foreign to the United States, and by no means easy to obtain. +Specie, as Mr. Gallatin profoundly observed, does not precede, but +follows wealth. The want of it nearly destroyed Morris's original plan +for the Bank of North America, and was only made up by the fortunate +receipt of the French remittances. In 1808 the specie in the vaults of +the treasury reached fourteen millions of dollars, but during the +operation of the Embargo Act, the banks of New England had gradually +accumulated a specie reserve, and that of Richmond, Virginia, pursued +the same policy. Together they held one third of the entire specie +reserve of the banks. The amount of specie in the Bank of the United +States, January 1, 1811, had fallen to $5,800,000, which soon found its +way abroad. + +The notes of the Bank of the United States, payable on demand in gold +and silver at the counters of the bank, or any of its branches, were, +by its charter, receivable in all payments to the United States; but +this quality was also stripped from them on March 19, 1812, by a repeal +of the act according it. To these disturbances of the financial +equilibrium of the country was added the necessary withdrawal of fifteen +millions of bank credit and its transfer to other institutions. This +gave an extraordinary impulse to the establishment of local banks, each +eager for a share of the profits. The capital of the country, instead of +being concentrated, was dissipated. Between January 1, 1811, and 1815, +one hundred and twenty new banks were chartered, and forty millions of +dollars were added to the banking capital. To realize profits, the +issues of paper were pushed to the extreme of possible circulation. +Meanwhile New England kept aloof from the nation. The specie in the +vaults of the banks of Massachusetts rose from $1,706,000 on June 1, +1811, to $7,326,000 on June 1, 1814. This was a consequence of the New +England policy of opposition. Mr. Gallatin estimated that the proceeds +of loans, exclusive of treasury notes and temporary loans, paid into the +treasury from the commencement of the war to the end of the year 1814 +were $41,010,000: of which sum the Eastern States lent $2,900,000; the +Middle States, $35,790,000; Southwestern States, $2,320,000. + +The floating debt of the United States, consisting of treasury notes +and temporary loans unpaid, amounted, January 1, 1815, to $11,250,000, +of which nearly four fifths were loaned by the cities of New York, +Philadelphia, and Baltimore, and the District of Columbia. The +suspension of the banks was precipitated by the capture of Washington. +It began in Baltimore, which was threatened by the British, and was at +once followed in Philadelphia and New York. Before the end of September +all the banks south and west of New England had suspended specie +payment. In his "Considerations on the Currency," Mr. Gallatin expressed +his-- + + "deliberate opinion that the suspension might have been prevented + at the time when it took place, had the Bank of the United States + been in existence. The exaggerated increase of state banks, + occasioned by the dissolution of that institution, would not have + occurred. That bank would _as before_ have restrained them within + proper bounds and checked their issues, and through the means of + its offices it would have been in possession of the earliest + symptoms of the approaching danger. It would have put the Treasury + Department on its guard; both, acting in concert, would certainly + have been able, at least, to retard the event; and as the treaty of + peace was ratified within less than six months after the suspension + took place, that catastrophe would have been avoided." + +But within fifteen months the bank issues increased from forty-five and +a half to sixty millions. + +----------------------+-------------+--------------+------------ + | Capital. | Circulation. | Specie. +----------------------+-------------+--------------+------------ +Banks of New England. | $15,690,000 | $5,320,000 | $8,200,000 +Other Banks | 66,930,000 | 44,730,000 | 8,600,000 +----------------------+-------------+--------------+------------ +1815. 208 State Banks.| $82,620,000 | $50,050,000 | $16,800,000 +1816. 246 State Banks.| 89,822,422 | 68,000,000 | 19,000,000 +----------------------+-------------+--------------+------------ + +The depression of the local currencies ranged from seven to twenty-five +per cent. In New York and Charleston it was seven to ten per cent. below +the par of coin. At Philadelphia from seventeen to eighteen per cent. At +Washington and Baltimore from twenty to twenty-two, and at Pittsburgh +and on the frontier, twenty-five per cent. below par. The circulating +medium, or measure of values, being doubled, the price of commodities +was doubled. The agiotage, of course, was the profit of the bankers and +brokers; a sum estimated at six millions of dollars a year, or ten per +cent. on the exchanges of the country, which McDuffie, in his celebrated +report, estimated at sixty millions annually. + +In November the Treasury Department found itself involved in the common +disaster. The refusal of the banks, in which the public moneys were +deposited, to pay their notes or the drafts upon them in specie deprived +the government of its gold and silver; and their refusal, likewise, of +credit and circulation to the issues of banks in other States deprived +the government also of the only means it possessed for transferring its +funds to pay the dividends on the debt and discharge the treasury notes. +Mr. Dallas found himself compelled to appeal to the banks by circular to +subscribe for sufficient treasury notes to secure them such advances as +might be asked of them for the discharge of the public obligations. + +"In the latter end of the year 1814," says Mr. Gallatin, "Mr. Jefferson +suggested the propriety of a gradual issue by government of two hundred +millions of dollars in paper;" commenting upon which Mr. Gallatin +remarks that Mr. Jefferson, from the imperfect data in his possession, +"greatly overrated the amount of paper currency which could be sustained +at par; and he had, on the other hand, underrated the great expenses of +the war;" but at "all events," he adds, "the issue of government paper +ought to be kept in reserve for extraordinary circumstances." But here +it may be remarked that the evolution of the systems of American finance +seems to lead slowly but surely to an entire divorce of banking from +currency, and the day is not far distant when the circulating medium of +the United States will consist of gold and silver, and of government +issues restricted, according to the English principle, to the minimum of +circulation, and kept equivalent to coin by a specie reserve in the +treasury; while the banks, their circulation withdrawn and the +institutions freed from any tax, will be confined to their legitimate +business of receiving deposits and making loans and discounts. + +On October 14, 1814, Alexander J. Dallas, Mr. Gallatin's old friend, who +had been appointed secretary of the treasury on the 6th of the same +month, in a report of a plan to support the public credit, proposed the +incorporation of a national bank. A bill was passed by Congress, but +returned to it by Madison with his veto on January 15, 1815. In this +peculiar document Madison "waived the question of the constitutional +authority of the legislature to establish an incorporated bank, as being +precluded, in his judgment, by repeated recognitions, under varied +circumstances, of the validity of such an institution in acts of the +legislative, executive, and judicial branches of the government." But he +objected for reasons of detail. Mr. Dallas again, as a last resort, +insisted on a bank as the only means by which the currency of the +country could be restored to a sound condition. In December, 1815, +Dallas reported to the committee of the House of Representatives on the +national currency, of which John C. Calhoun was chairman, a plan for a +national bank, and on March 3, 1816, the second Bank of the United +States was chartered by Congress. The capital was thirty-five millions, +of which the government held seven millions in seventy thousand shares +of one hundred dollars each. Mr. Madison approved the bill. This +completed the abandonment of every shred of principle claimed by the +Republican party as their rule of action. They struggled through the +rest of their existence without a political conviction. The national +bank, and the system of internal taxation which had been scorned by +Jefferson and Madison as unconstitutional, were accepted actually under +Madison's administration. Gallatin's success, owing to the development +and application of Hamilton's plans, was a complete vindication of the +theory and practice of the Federalists which they abhorred; Jefferson's +plan of a government issue of paper money was a higher flight into the +upper atmosphere of implied powers than Hamilton ever dreamed of. + +The second national bank of the United States was also located at +Philadelphia, and chartered for twenty years. The manner in which it +performed its financial service is admirably set forth in Mr. Gallatin's +"Considerations on the Currency," already mentioned. It acted as a +regulator upon the state banks, checked excessive issues on their part, +and brought the paper currency of the country down from sixty-six to +less than forty millions, before the year 1820. + +In April, 1816, Mr. Dallas having signified his intention to resign the +Treasury, Mr. Madison wrote to Gallatin, offering him his choice between +the mission to France and the Treasury Department. Mr. Gallatin's reply +was characteristic. He declined the Treasury, but with reluctance, since +he thought he would be more useful at home than abroad, and because he +preferred to be in America rather than in Europe. One of his +preponderating reasons was that, although he felt himself competent to +the higher duties of the office, there was, for what he conceived "a +proper management of the Treasury, a necessity for a mass of mechanical +labor connected with details, forms, calculating, etc., which having +lost sight of the thread and routine, he could not think of again +learning and going through." He was aware that there was "much confusion +due to the changes of office and the state of the currency, and thought +that an active young man could alone reinstate and direct properly that +department." + +In June of the same year, while waiting for the Peacock, which was to +carry him across the sea, Gallatin wrote Mr. Madison an urgent letter, +impressing upon him the necessity of restoring specie payment, and his +perfect conviction that nothing but the will of the government was +wanted to reinstate the country in its moral character in that respect. +He dreaded the "paper taint," which he found spreading as he journeyed +northward. + +In January 1817, delegates from the banks of New York, Philadelphia, +Baltimore and Virginia met in Philadelphia and agreed to a general and +simultaneous resumption of specie payments. The Bank of the United +States proposed a compact which was accepted by the state banks and +ratified by the secretary of the treasury. That institution engaged, to +a reasonable extent, to support any bank menaced. This engagement and +the importation of seven millions of specie from abroad by the Bank of +the United States secured a general restoration of specie payment. In +1822 Mr. Gallatin was tendered and declined the office of president of +the Bank of the United States. + +In 1829 he prepared for Mr. Ingham, then secretary of the treasury, a +masterly statement of the relative value of gold and silver. In 1830 Mr. +Gallatin wrote for the "American Quarterly Review" his essay, +"Considerations on the Currency and Banking System of the United +States." Appearing at the time when the renewal of the charter of the +Bank of the United States was an absorbing question, this essay was +equally sought for by both the friends and opponents of the bank. It is +not confined, however, to this subject, but covers the entire field of +American finance. His treatment of the currency question was novel. He +analyzed the systems of Europe, compared them with those which prevailed +in the United States, and reached the conclusion, the general +correctness of which has been justified by the experience of all other +nations, and sooner or later will be accepted by our own; namely, the +necessity of a currency strong in the precious metals, and the +restriction of paper money to notes of one hundred dollars to be issued +by the government. This limit is higher than that adopted in France and +England, but the general principle that a circulating medium is sound +only as it is strong in gold and silver, and that gold and silver can +only be retained permanently by making a place for them in the +circulating medium by a restriction of paper issues, will yet find +favor even in this paper-loving country. + +In 1832 Mr. Gallatin accepted the presidency of a bank in New York, the +subscription to the stock of which, $750,000, was completed by Mr. John +Jacob Astor on condition that Mr. Gallatin should manage its affairs. +The direction of its concerns, without absorbing his time, kept him in +the financial current. The bank was called the National Bank of New +York. But not in this modest post was he to find the financial path +smooth. It is true he had lived in the flesh to see the financial +millennium. The rapid growth of the country and the faithful adherence +of his successors in the Treasury Department to the funding principle +had at last realized his dream. The national debt was extinguished. The +last dollar was paid. Louis McLane, secretary of the treasury, on +December 5, 1832, in his report on the finances, said that the dividends +derived from the bank shares held by the United States were more than +was required to pay the interest, and that the _debt_ might therefore be +considered as substantially extinguished after January 1, 1833. + +On December 3, 1833, Roger B. Taney, secretary of the treasury, reported +to Congress that he had directed the removal of the deposits of the +government from the Bank of the United States and placed them in banks +of his own selection. He gave a number of reasons for this extraordinary +exercise of the power which he obtained by his appointment on September +23, 1833. He received his reward in June, 1834, being then transferred +by President Jackson to the seat of chief justice of the Supreme Court. +In his annual report Taney named, among his elaborate reasons for the +removal, that the bank had used its money for electioneering purposes, +and that he "had always regarded the result of the last election of +President of the United States as the declaration of a majority of the +people that the charter ought not to be renewed." He further expressed +the opinion "that a corporation of that description was not necessary +either for the fiscal operations of the government or the general +convenience of the people." It mattered little to him that Mr. Gallatin +had only recently pointed out that from the year 1791 the operations of +the Treasury had, without interruption, been carried on through the +medium of banks; during the years 1811 to 1814, by the state banks, with +a result which no one had as yet forgotten; before and since that brief +interval through the Bank of the United States. Enough for Taney, that +it was the will of his imperious master, 'the pugnacious animal,' as +Gallatin aptly termed him. + +In October, 1834, Taney's successor in the Treasury, Levi Woodbury, gave +notice that the remaining debt, unredeemed after January 1, 1835, would +cease to bear interest and be promptly paid on application to the +commissioners of loans in the several States. On December 8, 1835, Mr. +Woodbury reported "an unprecedented spectacle presented to the world of +a government virtually without any debts and without any direct +taxation." The surplus revenues, about thirty-seven and a half millions +of dollars, had by an act of the previous session been distributed among +the several States. But the secretary and the country soon found that +they were on dangerous ground. In December, 1837, the same secretary, +alarmed at his responsibility, said to Congress, in warning words, "We +are without any national debt to absorb and regulate surpluses, or any +adequate supply of banking institutions which provide a sound currency +for general purposes by paying specie on demand, or which are in a +situation fully to command confidence for keeping, disbursing, and +transferring the public funds in a satisfactory manner." + +The Bank of the United States, on the expiration of its charter in +March, 1836, accepted a charter from the State of Pennsylvania; but, +though its influence continued to be as great, its direction was no +longer the same. Abandoning its legitimate business, it speculated in +merchandise, and even kept an agent in New Orleans to compete with the +Barings in purchases of the cotton crop as a basis for exchange. +Precisely as in 1811, after the withdrawal of the control of the Bank of +the United States, the state banks ran a wild career of speculation. +From 1830 to 1837 three hundred new banks sprang up with an additional +capital of one hundred and forty-five millions, doubling, as twenty +years before, the banking capital of the country. This volume the +deposits of the Treasury continued to swell. Mr. Woodbury was the first +to take alarm. In December, 1836, he reported the specie in the country +to have increased from thirty millions in 1833 to seventy-three millions +at the date of his report, and the paper circulation, in the same +period, to have advanced, since the removal of the deposits from the +Bank of the United States, from eighty millions to one hundred and +twenty millions, or forty millions in eighteen months; and the bank +capital, in the same period, to have increased from two hundred to three +hundred millions. Importation augmented; the balance of trade suddenly +turned against the United States to the extent of one hundred and fifty +millions, and coin began to flow abroad to liquidate the account. There +was no debt to attract foreign investment and arrest the export of +specie. Added to this was the withdrawal of the government deposits from +the pet banks, which compelled an immediate contraction. The result was +inevitable. On May 10, 1837, the New York banks suspended, Mr. +Gallatin's institution being of course dragged down with the rest. It is +idle to suppose that any single bank can hold out against a general +suspension. It may liquidate or become a bank of deposits, but it cannot +maintain its relations with its sister institutions except on a basis of +common accord. + +A general suspension followed. Mr. Woodbury proved himself equal to the +emergency, and recommended a plan of "keeping the public money under new +legislative provisions without using banks at all as fiscal agents." +This was the beginning of the sub-treasury system, a new departure in +treasury management, and a further evolution in American finance. It +still remains, and will no doubt be permanent. Its establishment was +necessary because of the absence of a national bank. + +Mr. Gallatin at once turned his attention to bring about first a +liquidation and then a resumption. It was a favorite maxim with him, +that "the agonies of resumption are far harder to endure than those of +suspension," as it is easier to refrain from lapse of virtue than to +restore moral integrity once impaired. But in resumption the suffering +falls where it belongs, on the careless, the improvident, and the +over-trader. + +On August 15, 1837, the officers of the banks of New York city, in a +general meeting, appointed a committee of three to call a convention of +the principal banks to agree upon a time for a resumption of specie +payments. This committee, of which Mr. Gallatin was chairman, on August +18 addressed a circular to the principal banks in the United States, +inviting the expression of their wishes as to the time and place for a +convention, suggesting New York as the place, and October, 1837, as the +time. They said, in addition, that the banks of New York city, in view +of the law of the State dissolving them as legal corporations in case +of suspension for one year, must resume at some time between January 1 +and March 15, 1838. The circular committed the New York banks to no +definite action, but expressed the opinion that the fall in the rate of +exchanges indicated an early return of specie to par, when resumption +could be effected without danger. The banks of Philadelphia held a +meeting on August 29, and adopted resolutions declaring it inexpedient +to appoint delegates to the proposed convention. Aware of the reasons +for this action, the chief of which was the extended and perhaps +insolvent condition of the United States Bank of Pennsylvania, the New +York committee invited the banks in the several States to appoint +delegates to meet on November 27, 1837, in New York. Delegates from +banks of seventeen States and the District of Columbia appeared. On the +30th resolutions were brought in recommending a general resumption on +July 1, without precluding an earlier resumption on the part of such +banks as might find it necessary. The Pennsylvania banks opposed this +action with resolutions condemning the idea of immediate resumption as +impracticable, and also, in the absence of delegates from the banks of +Louisiana, Mississippi, Alabama, and Tennessee, as unwise. The +convention met again on December 2, when an adjournment was carried to +April 11, 1838, when delegates from the banks not represented were +invited to attend. Mr. Gallatin saw that the combination of the +Philadelphia and Boston banks, under the lead of Mr. Biddle, would +certainly force a further postponement. Exchange on London, which had +been as high as 121, the true par being about 109-1/2, nominal, had +fallen to 111-1/2, which, considering that the city bank paper was at a +discount of five per cent., was at the rate of 2-1/2 per cent. below +specie par. The exportation of specie had entirely ceased. + +On December 15 Mr. Gallatin and his committee appointed at the general +convention submitted a report which he had drafted, which, though +addressed to the New York banks, covered the whole ground. Meanwhile the +highest authority in Pennsylvania had given it as his opinion "that the +banks of Pennsylvania were in a much sounder state than before the +suspension, and that the resumption of specie payments, so far as it +depends on their situation and resources, may take place at any time." + +On February 28, 1838, Mr. Gallatin's committee made a further report +showing that the liabilities of the New York banks had been reduced more +than twelve millions and a half, or fifty per cent., and asserting that +with the support of the community and the state authorities they could +resume on an equal footing on May 10. This declaration was welcomed with +great satisfaction by a general meeting of the citizens of New York. On +April 11 the general convention again met in New York. The Philadelphia +banks declined to attend. A letter from Mr. Woodbury promised the +support of the Treasury Department. A committee of one from each State +was appointed, which recommended the first Monday in October as the +earliest day for a general resumption. The convention could not, +however, be brought to fix upon so early a day, but finally fixed upon +January 1, 1839, and adjourned. The New York banks would have accepted +July 1, 1838, but this being refused they resumed alone on May 10, and +the force of public opinion compelled resumption by nearly all the banks +of the country on July 1. + +The terrible contraction was fatal to the United States Bank of +Pennsylvania, which after a vain struggle closed its doors in October, +1839, and carried with it the entire banking system of the Southern and +Southwestern States. Although in no way similar to the semi-governmental +institutions which preceded it, yet, from its similarity of name and +identity of location, its disastrous failure added to the blind popular +distrust of its predecessors, which narrow-minded politicians had +fostered for their own selfish purposes. Fortunately the sub-treasury +plan of Mr. Woodbury supplied the need of a safe place of deposit which, +since the refusal of Congress to renew the charter of the old bank, had +been sorely felt. + +In 1838, on the foundation of the Bank of Commerce under the free +banking law of the State of New York, the presidency of it was first +tendered to Mr. Gallatin. The directors of this bank were among the most +distinguished financiers of the city, and its object was to provide a +conservative institution with sufficient power and capital to act as a +regulator upon the New York banks. Profit to the stockholders was +secondary to the reserve power for general advantage. + +In June, 1839, Mr. Gallatin resigned his post as president of the +National Bank of New York. In 1841 he published a financial essay, which +he entitled "Suggestions on the Banks and Currency of the United +States," a paper full of information, but from the nature of the subject +not to be compared in general interest with his earlier paper, which is +as fresh to-day as when it was written. Mr. Gallatin condemned paper +currency as an artificial stimulus, and the ultimate object of his +essays was to annihilate what he termed the "dangerous instrument." He +admitted its utility and convenience, when used with great sobriety, but +he deprecated its tendency to degenerate into a depreciated and +irredeemable currency. This tendency the present national banking law +arrests, but the law rather invites than prohibits the stimulus of +increased issues. The last word has not yet been said on national +currency, which, though the basis of all commercial transactions, has +necessarily no other relation to banks than that which it holds to any +individual in the community. + +Economic questions have interested the highest order of mind on the two +continents. Sismondi published a paper on commercial wealth in 1803, and +in 1810 a memoir on paper money, which he prepared to show how it might +be suppressed in the Austrian dominions; Humboldt made a special study +of the sources and quantity of the precious metals in the world, in +which Mr. Gallatin aided him by investigation in America. Michel +Chevalier was interested in the same subjects; surviving his two masters +in the art and witnessing the marvelous effects of the additions made by +America to the store of precious metals, he continued the study in the +spirit of his predecessors, and favored the world with instructive +papers. Mr. Gallatin's contributions to this science are remarkable for +minute research and careful deductions. + +In 1843 President Tyler tendered the Treasury portfolio to Mr. Gallatin. +The venerable financier looked upon the offer as an act of folly to +which a serious answer seemed hardly necessary. Yet as silence might be +misconstrued, he replied that he wanted no office, and to accept at his +age that of secretary of the treasury would "be an act of insanity." He +was then in his eighty-third year. The offer of the post was but an +ill-considered caprice of Mr. Tyler. + +FOOTNOTES: + +[Footnote 10: Cents are omitted as confusing figures.] + +[Footnote 11: The first Annual Report of the Secretary of the Treasury. +This was under the Supplementary Treasury Act.] + +[Footnote 12: Excess of receipts, notwithstanding the purchase of +Louisiana and payments on account of principal and interest of the +debt.] + +[Footnote 13: These were the banks of New York, Boston, Philadelphia, +and Baltimore. Seven presidents formed the committee. John A. Stevens of +New York was chairman, by request of the Secretary of the Treasury. The +other members were named by him. The sum advanced to the government was +one hundred and fifty millions of dollars in coin.] + +[Footnote 14: At Portland, $120,000; Salem, $183,600; Boston, $75,300; +Providence, $67,800; Richmond, $49,000; Norfolk, $103,000; Charleston, +$354,000.] + +[Footnote 15: Report of Secretary Dallas, September 20, 1816.] + +[Footnote 16: Act of March 3, 1817.] + +[Footnote 17: _Democratic Review_, xii. 641.] + +[Footnote 18: Chairman of the Committee of Ways and Means.] + + + + +CHAPTER VII + +IN THE CABINET + + +The general principles which Mr. Jefferson proposed to apply in his +conduct of the government were not principles of organization but of +administration. The establishments devised by Hamilton, in accordance +with or in development of the provisions of the Constitution, were +organic. The new policy was essentially restrictive and economic. The +military and naval establishments were to be kept at their lowest +possible limit. The Treasury Department was to be conducted on strictly +business principles. The debt was to be reduced and finally paid by a +fixed annual appropriation. The revenue was to be raised by imposts on +importation and tonnage, and by direct taxation, if necessary. The +public land system was to be developed. A scheme of internal +improvements by land and water highways was to be devised. All these +purposes except the last had been declared by the opposition during the +last part of Washington's second term and during Adams's presidency, and +had been lucidly expounded by Madison, Gallatin, Giles, Nicholas, and +others of the Republican leaders. On all these subjects Mr. Gallatin +was in accord with his chief. Only upon the bank question were they at +issue. Mr. Jefferson detested or feared the aristocracy of money, while +Gallatin, with a clearer insight into commercial and financial +questions, recognized that in a young country where capital was limited, +and specie in still greater disproportion to the increasing demands of +trade, a well-ordered, well-managed money institution was an enormous +advantage, if not an imperative necessity to the government and the +people. + +Peace was necessary to the success of this general policy of internal +progress, but peace was not to be had for the asking. It was not till +half a century later that the power of the western continent as a +food-producing country was fully felt by Europe, and peace with the +United States became almost a condition of existence to millions in the +old world, while this country became independent, in fact as in name, to +the fullest meaning of the word. Peace was not menaced during +Jefferson's first administration, for the Federalists had left no legacy +of diplomatic discord to embarrass their successors. The divisions of +opinion were on home affairs. The Republican party was the first +opposition which had reached power since the formation of the +government. The Federalists had not hesitated to confine the patronage +of the executive to men of their own way of thinking. The Republicans +had attacked that principle. There were men even in the ranks of +Jefferson's administration who scouted the idea that the President of +the United States could become "the President of a party." But practice +and principle are not always in accord, even in administrations of +sentimental purity, and the pressure for office was as great in 1800 as +it has ever since been on the arrival of a new party to power. Beyond +all other departments of government, the Treasury depends for its proper +service upon business capacity and a knowledge of the principles of +accounting and office routine. Mr. Gallatin was well aware of the +difficulties his predecessors had encountered in finding and retaining +competent examining and auditing clerks. As there was no reason to +suppose that all this talent was to be found in the ranks of the +Republican party, and his common sense pointed out the folly of limiting +the market of supply, he early (July 25, 1801) prepared a circular to +collectors, in which he informed them "that the door of office was no +longer to be shut against any man because of his political opinions, but +that integrity and capacity suitable to the station were to be the only +qualifications required; and further, the President, considering freedom +of opinion or freedom of suffrage at public elections imprescriptible +rights of citizens, would regard any exercise of official influence to +sustain or control the same rights in others as injurious to the public +administration and practically destructive of the fundamental principles +of a republican Constitution." But Mr. Jefferson and Mr. Madison +opposed this simple declaration of a principle which has since been the +base of every attempt at reform in the civil service. Mr. Jefferson +answered that after one half of the subordinates were exchanged, talents +and worth might alone be inquired into in the case of new vacancies. +This was a miserable shuffling policy which defeated itself. For a +Federalist to retain office when such a discrimination was applied was +of itself a degradation. Mr. Jefferson here threw away and forever lost +the power to establish the true system, and fixed the curse of patronage +upon American administration. The true principle may be stated in the +form of an axiom. Administrations should rely for continuation upon +measures, not on patronage. Gallatin yielded with reluctance to the +spirit of persecution which he did not hesitate to say disgraced the +Republican cause, and sank them to a level with their predecessors. +Notwithstanding his aversion, he was compelled to follow the policy of +the cabinet. Its first result was to divide the Republican party, and to +alienate Burr, whose recommendation of Matthew L. Davis for the naval +office at New York was disregarded. Had the new administration declined +to make removals except for cause, such a dispute would have been +avoided. As it was, the friends of Burr considered the refusal as a +declaration of war. Appointments became immediately a part of the +machinery of Republican administration, as it had been part of that of +their predecessors, and each was carefully weighed and considered in +its reference to party quite as much as to public service. + +Already looking forward to the next presidential election, Gallatin was +anxious for an agreement upon Jefferson's successor, and even before the +meeting of the first Congress of his term he advised the President on +this point, and he also proposed the division of every State into +election districts by a general constitutional provision. + +Jefferson submitted the draft of his annual messages to the head of each +department, and invited their comments. Gallatin was minute in his +observations, and it is interesting to note the peculiar precision and +caution of his character in the nice criticisms of language and style, +sometimes declaratory, sometimes non-committal, but always and obviously +reasonable, and often presenting a brief argument for the change +proposed. In these days of woman's rights it is curious to read "Th. J. +to Mr. Gallatin. The appointment of a woman to office is an innovation +for which the public is not prepared, nor am I." + +Gallatin suggested a weekly general conference of the President and the +secretaries at what is now styled a cabinet meeting, and private +conferences of the President with each of the secretaries once or twice +a week on certain days and at fixed hours. The business to come before +the House was also to be considered, and the policy to be pursued +determined upon. Unfortunately in this case again Jeffersonian theory +did not accord with Jeffersonian practice. Even erratic Randolph +complained of the want of system at these cabinet meetings, where each +was at liberty to do and say as he chose; a severe trial, this, to +Gallatin. In 1845 Mr. Gallatin wrote to Edward Coles that it was "quite +unusual to submit to the cabinet the manner in which the land or naval +forces authorized by Congress, and for which appropriations had been +made, should be employed," and added that on no occasion, in or out of +cabinet, was he ever consulted on those subjects prior to the year 1812. + +In the difficulty which arose with the Barbary powers Mr. Gallatin +earnestly urged the payment of an annuity to Tripoli, if necessary for +peace. He considered it a mere matter of calculation whether the +purchase of peace was not cheaper than the expense of a war. This policy +was to be continued for eight years, at the end of which he hoped that a +different tone might be assumed. In a note on the message of 1802, +Gallatin expressed the hope to Jefferson that his administration would +"afford but few materials for historians." He would never sacrifice +permanent prosperity to temporary glitter. + +Mr. Gallatin's counsel was sought, and his opinion deferred to, on +subjects which did not fall directly within the scope of administration. +Even on questions of fundamental constitutional law his judgment was not +inferior to that of Madison himself. In one notable instance he differed +from Mr. Lincoln, the attorney-general, whom he held in high esteem as +a good lawyer, a fine scholar, "a man of great discretion and sound +judgment." This was in 1803, when the acquisition of East Louisiana and +West Florida was a cabinet question. Mr. Lincoln considered that there +was a difference between a power to acquire territory for the United +States and the power to extend by treaty the territory of the United +States, and held that the first was unconstitutional. Mr. Gallatin held +that the United States as a nation have an inherent right to acquire +territory, and that, when acquisition is by treaty, the same constituted +authorities in whom the treaty power is vested have a constitutional +right to sanction the acquisition, and that when the territory has been +acquired Congress has the power either of admitting into the Union as a +new State or of annexing to a State, with the consent of that State, or +of making regulations for the government of the territory. Mr. Jefferson +concurred in this opinion, while at the same time he thought it safer +not to permit the enlargement of the Union except by amendment of the +Constitution. Mr. Gallatin's view was practically applied in the cases +named, and later in the annexation of Texas, although he disapproved of +the latter as contrary to good faith and the law of nations. He advised +Jefferson, also, not to lay the treaty by which Louisiana was acquired +before the House until after its ratification by the Senate, taking the +ground that until then it was not a treaty, and urging that great care +should be taken to do nothing which might be represented as containing +any idea of encroachment on the rights of the Senate. He personally +interested himself in the arrangements for taking possession of New +Orleans, and, considering the expense as trifling compared with the +object, urged the dispatch of an imposing force of not less than fifteen +thousand men, which would add to the opinion entertained abroad of our +power, resources, and energy; five thousand of these to be active +troops; ten thousand an enrolled reserve. The acquisition of Louisiana +was the grand popular feature of the foreign policy of the first term of +Jefferson's administration. The internal management left much to be +desired. + +While his general views were exalted, and his principles would stand the +nicest examination in their application, Mr. Jefferson was not fortunate +in his choice of methods or men. It is not enough for an administration +to be pure; it should be above suspicion. This his was not. Time has not +washed out the stain of his intimacy with William Duane, the editor of +the infamous "Aurora." Citizen Duane, as he styled himself in the first +days of the administration, quarreled with Gallatin because he would not +apply the official guillotine, and thereafter pursued him with +uncompromising hostility. Of favoritism in appointments Mr. Gallatin +could not be accused. During his twelve years in the Treasury he +procured places for but two friends; one was given an obscure clerkship +in the department; the other, John Badollet, was made register in the +land office at Vincennes, against whom Gallatin said in the application +for appointment which he reluctantly made, there was but one objection, +"that of being his personal and college friend." + +The dispositions for the sale of lands in the western territory, the +extinguishment of titles, and the surveys fell under Mr. Gallatin's +general supervision, and were the objects of his particular care. So +also was the establishment of the authority of the United States in the +Louisiana territory. In the course of these arrangements he was brought +into contact with Mr. Pierre Choteau of St. Louis, who controlled the +Indian trade of a vast territory. The foundation of an intimate +acquaintance was then laid. The influence of this remarkable man over +the Western Indians and the extent of his trading operations with them +was great, and has never since been equaled. About this period Mr. John +Jacob Astor informed the government that he had an opportunity, of which +he intended to take advantage, to purchase one half of the interest of +the Canadian Fur Company, which, notwithstanding the treaty of 1794, +engrossed the trade by way of Michilimackinac with our own Indians. +Before that period this lucrative traffic had been exclusively in +British hands, and the hostility of the Indian tribes rendered any +interference in it by Americans dangerous to life and property, and +their participation since had been merely nominal. Jefferson's cabinet +received the proposal with satisfaction, but, in their strict +interpretation of the Constitution, could find no way of giving any aid +to the scheme beyond the _official_ promise of protection, which it fell +to Mr. Gallatin to draft. Mr. Jefferson wrote to Mr. Astor a letter to +the same effect. Mr. Astor, however, was not deterred from his +enterprise, but, under the charter of the American Fur Company granted +by the State of New York, extended his project to the Indians west of +the Rocky Mountains, and made of it an immense business, employing +several vessels at the mouth of the Columbia River and a large land +party beyond the Rocky Mountains. He finally founded the establishment +of Astoria. This settlement fell into the hands of the British during +the war of 1812. Mr. Astor sought to persuade the American government to +permit him to renew the establishment at its close, only asking a flag +and a lieutenant's command, but Mr. Madison would not commit himself to +the plan. + +Among Mr. Jefferson's pet schemes was that of a substitution of gunboats +for fortifications, and for supporting the authority of the laws within +harbors. The mind of Mr. Jefferson had no doubt been favorably disposed +to this mode of offensive defense by the experience of Lafayette at +Annapolis, in his southern expedition in the spring of 1781, when his +entire flotilla, ammunition of war, and even the city of Annapolis, +were saved from destruction by two improvised gunboats, which, armed +with mortars and hot shot, drove the British blockading vessels out of +the harbor. Jefferson first suggested the scheme in his annual message +of 1804, and Gallatin did not interfere; but when, in 1807, the +President insisted, in a special message, on the building of two hundred +vessels of this class, Mr. Gallatin objected, because of the expense in +construction and maintenance, and secondly, of their infallible decay. +Mr. Jefferson persisted, and Mr. Gallatin's judgment was vindicated by +the result. Two years later, of one hundred and seventy-six gunboats +constructed, only twenty-four were in actual service. In his letter of +criticism, Mr. Gallatin gave as his opinion, that "it would be an +economical measure for every naval nation to burn their navy at the end +of a war and to build a new one when again at war, if it was not that +time was necessary to build ships of war." The principle was the same as +to gunboats, and the objection of time necessary for building did not +exist. + +This year he also laid before the President a memorandum of preparatory +measures for defense against Great Britain, from whom an attack was +expected by land and sea, and a second plan for offensive operations on +the northern frontier, which is complete in its geographical and +topographical information, and its estimate of resources in men, +material, and money. At the same time he urged upon Mr. Jefferson to +moderate the tone of his message, so as not to widen the breach by +hurting the pride of Great Britain. + +In connection with the land system, Mr. Jefferson favored, and Mr. +Gallatin devised, an extensive plan of internal improvements. The route +of the Cumberland road from the Potomac to the Ohio was reported to +Congress in 1807; a coast survey was ordered in the same year. The first +superintendent was Hassler, a Swiss, whom Mr. Gallatin brought to the +notice of Mr. Jefferson. In 1808 a general plan of improvement was +submitted to the Senate. This included canals parallel with the +seacoast, making a continuous line of inland navigation from the Hudson +to Cape Fear; a great turnpike from Maine to Georgia; the improvement of +the Susquehanna, Potomac, James, and Santee rivers to serve the slope +from the Alleghanies to the Atlantic; of the Alleghany, Monongahela, and +Kanawha, to serve the country westward to the Mississippi, the head +waters of these rivers to be connected by four roads across the +Appalachian range; a canal at the falls of the Ohio; a connection of the +Hudson with Lake Champlain, and of the same river with Lake Ontario at +Oswego; and a canal around Niagara Falls. The entire expense he +estimated at $20,000,000, to be met by an appropriation of $2,000,000 a +year for ten years; the stock created for turnpikes and canals to be a +permanent fund for repairs and improvements. + +A national university for education in the higher sciences was also +recommended by Jefferson in his message of 1806, but Mr. Gallatin had +little faith in the popularity of this scheme. After the convulsion of +1794 in Geneva, Gallatin's old college mate, D'Yvernois, conceived the +plan of transporting the entire University of Geneva to the United +States, and wrote on the subject to Jefferson and Adams; but his idea +was based on the supposition that fifteen thousand dollars' income could +be had from the United States in support of the institution, which was, +of course, at the time impracticable. Jefferson believed that these +plans of national improvement could be carried into effect only by an +amendment to the Constitution; but Mr. Gallatin, as in the bank +question, was disturbed by no such scruples, and he recommended Mr. +Jefferson to strike from his message the words "general welfare," as +questionable in their nature, and because the proposition seemed to +acknowledge that the words are susceptible of a very dangerous meaning. + +To a permanent embargo act Mr. Gallatin was from the beginning opposed. +He recognized the mischief of government prohibitions, and thought that +statesmen might well hesitate before they took the hazard of regulating +the concerns of individuals. The sequel proved the correctness of this +judgment. But Mr. Jefferson could not bring his mind to any more +decisive measure, indeed, it may justly be said, to any measure +whatever. Taking advantage of Mr. Madison's election to the presidency, +he simply withdrew from the triumvirate, and, passing over the subject +in silence in his last message, he ignominiously left to Mr. Madison and +Mr. Gallatin the entire responsibility which the threatening state of +the foreign relations of the country imposed on the Republican party. + +The question was now between the enforcement of the Embargo Act and war. +To take off the embargo seemed a declaration of weakness. To add to it a +non-importation clause was the only alternative. In November, 1808, Mr. +Gallatin prepared for George W. Campbell, chairman of the Committee on +Foreign Relations of the House, the declaration known as Campbell's +report, which recited, in clear, compact form, the injuries done to the +United States by Great Britain, and closed with resolutions to the +effect that the United States could not submit to the edicts of Great +Britain and France, and with a recommendation of non-intercourse and for +placing of the country in a state of defense. After long debate the +resolutions were adopted by large majorities, and the policy of +resistance was finally determined upon--resistance, not war. Thus the +United States resorted, as the colonies had resorted in 1774, to a +policy of non-importation. But the condition of the States was not that +of the colonies. Then all the colonies were commercial, and the entire +population was on the seaboard; the prohibition fell with equal weight +upon all. Now there were large interior communities whom restrictions +upon commerce would rather benefit than injure. Yet neither the Sons of +Liberty nor the non-importation associations had been able to enforce +their voluntary agreements either before or after the Congress of 1774. +If this were to be the mode of resistance, stringent measures must be +adopted to make it effective. Mr. Gallatin accordingly called upon +Congress for the necessary powers. They at once responded with the +Enforcement Act, which Mr. Gallatin proceeded to apply with +characteristic administrative vigor, and summoned Jefferson to authorize +the collectors of revenue to call the military force of the United +States to support them in the exercise of their restrictive authority. +There was to be no evasion under the systems which Hamilton devised and +Gallatin knew so well how to administer. + +His annual report made to Congress on December 10 had clearly set forth +the situation, and, without recommending war, had pointed out how it +might be carried on. Macon wrote of him on December 4 to their mutual +friend, Joseph H. Nicholson, "Gallatin is decidedly for war." After his +report was sent in the situation became still more perplexing. Rumors +came of an intention to call a convention of the five New England +States, with New York, if possible, to take ground against the embargo. +As these indications of dissatisfaction became manifest, and the +contingency of the employment of force at home presented itself, +Gallatin made a careful balance of the advantages and inconveniences of +embargo, non-intercourse, and letters of marque. This paper, dated +February, 1809, and entitled, "Notes on the Political Situation," no +doubt served as a brief for consultation with Madison upon his inaugural +message, it being then understood that Gallatin was to be secretary of +state. As he states one of the advantages of letters of marque to be "a +greater chance of unity at home," this measure he probably preferred. +The Senate had already, on January 4, passed a bill ordering out the +entire naval force of the country, and on the 10th the House adopted the +same bill by a vote of 64 to 59. Mr. Gallatin opposed this action +strenuously. On February 2 the House voted by a large majority to remove +the embargo on March 4. Non-intercourse with Great Britain and France +and trade everywhere else were now the conditions. This significant +expression of the feeling of Congress no doubt determined Mr. Gallatin +to suggest letters of marque. Whether he pressed them upon Mr. Madison +or not is uncertain. Meanwhile Mr. Gallatin suffered the odium of +opposition to the will of Congress, and Mr. Madison's power was broken +before he took his seat. A few Republican senators inaugurated an +opposition to their chief after the fashion of modern days, and Mr. +Madison was given to understand that Mr. Gallatin would not be confirmed +if nominated as secretary of state. Mr. Madison yielded to this +dictation, and from that day forward was, as he deserved to be, +perplexed and harassed by a petty oligarchy. Mr. John Quincy Adams, in a +note on this affair, says that, "had Mr. Gallatin been appointed +secretary of state, it is highly probable war with Great Britain would +not have taken place." But it is improbable that any step in foreign +intercourse was taken without Mr. Gallatin's knowledge and approbation. +Such are the traditions of the triumvirate. + +The first term of Madison's administration was not eventful. There was +discord in the cabinet. In the Senate the "invisibles," as the faction +which supported Robert Smith, the secretary of state, was aptly termed, +rejected Madison's nominations and opposed Gallatin's financial policy +as their interests or whims prompted. Randolph said of Madison at this +time, that he was "President _de jure_ only." Besides this domestic +strife, the cabinet was engaged in futile efforts to resist the +gradually tightening cordon of British aggression. Erskine's amateur +negotiations, quickly disavowed by the British government, and the short +and impertinent mission of Jackson, who succeeded him and was dismissed +from the United States, well served Canning's policy of delay. Madison, +whose prejudices were as strongly with Englishmen and English ways as +those of Jefferson were with the men and manners of France, averse to +war and withheld also by Gallatin's persistent objections, negotiated +and procrastinated until there was little left to argue about. In +December, 1809, Macon made an effort to pass a stringent navigation act +to meet the British Orders in Council and the French decrees. The bill +passed the House but was emasculated in the Senate, the Republican cabal +voting with the Federalists to strike out the effective clauses. The act +interdicting commercial intercourse with Great Britain and France +expired in May, 1810, and was not revived. A new act was passed, which +was a virtual surrender of every point in dispute. Resistance was +abandoned, and our ships and seamen were left to the mercy of both +belligerents. + +Mr. Gallatin's entire energies were bent upon strengthening the Treasury +and opposing reckless expenditures. His most grievous disappointment, +however, was in the refusal of Congress to renew the charter of the Bank +of the United States. He used every possible effort to save this +institution, which, in the condition of the country, was indispensable +to a sound currency and the maintenance of specie payment. But with the +dead weight of Mr. Madison's silence, if not indifference, the struggle +was unequal and the bank fell. The course of Mr. Madison can hardly be +excused. Political history records few examples of a more cruel +desertion of a cabinet minister by his chief. Mr. Gallatin felt it +deeply and tendered his resignation. The administration was going to +pieces by sheer incapacity. The leaders took alarm and the cabinet was +reconstructed, Monroe being called to the Department of State. But the +enemies of Mr. Gallatin still clung to his skirts, determined to drag +him to the dust. Duane attacked him in the most dangerous manner. +Probably no man in America has ever been abused, vilified, maligned with +such deliberate persistency as was Gallatin in the "Aurora" from the +beginning of 1811 until the cabinet crisis, when Mr. Madison was +compelled to choose between Smith and himself. Day after day leaders +were devoted to personal assault upon him and to indirect insinuations +of his superiority to Madison, by which the artful editor sought to +arouse the jealousy of the President. The "Atlas at the side of the +President," the "Great Treasury Law Giver," the "First Lord of the +Treasury," the "Dagon of the Philistines," were favorite epithets. He +was charged by turns with betraying cabinet secrets to Randolph, with +amateur negotiation with Erskine, and with subserviency to British gold +in the support of the Bank of the United States. Here is an instance of +Duane's style: "We can say with perfect conviction that, if Mr. Madison +suffer this man to lord it over him, Mr. Gallatin will drag him down, +for no honest man in the country can support an administration of which +he is a member with consistency or a pure conscience." It was charged +upon Gallatin that his friends considered him as the real, while Madison +was the nominal, president. More than this, he was accused of +embezzlement and enormous speculations in the public lands. Gallatin's +party pride must have been strong indeed to have induced him to stay an +hour in an administration which granted its favors to the author of such +assaults upon one of its chosen leaders. + +Jefferson wrote to Mr. Wirt in May following, that, because of the bank, +endeavors were made to drive from the administration (of Mr. Madison) +the ablest man, except the President, who ever was in it, and to beat +down the President himself because he was unwilling to part with such a +counselor. + +Monroe was appointed secretary of state in Smith's place in April, 1811. +Other changes followed in the cabinet, but brought little relief to Mr. +Gallatin. Financial affairs now occupied his entire attention; on the +one hand was a diminishing treasury; on the other an expenditure +reckless in itself and beyond the demands of the administration. Without +the sympathy of either the Senate or House, Mr. Gallatin's position +became daily more irksome, until at last he abandoned all attempt to +control the drift of party policy, took the war party at their word, and +sent in to the House a war budget. + +Unfortunately for the country, the Republican party knew neither how to +prepare for war, nor how to keep the peace. Mr. Madison had none of the +qualifications of a war President; neither executive ability, decision +of character, nor yet that more important faculty, knowledge of men. In +his attachment to Mr. Madison and in loyalty to what remained of the +once proud triumvirate of talent and power, Mr. Gallatin supplied the +deficiencies of his fellows as best he could, until an offer of +mediation between the United States and Great Britain on the part of the +emperor of Russia presented an opportunity for honorable withdrawal and +service in another and perhaps more congenial field. In March, 1813, the +Russian minister, in a note to the secretary of state, tendered this +offer. Mr. Gallatin had completed his financial arrangements for the +year, and requested Mr. Madison to send him abroad on this mission. +Unwilling to take the risk of new appointments, the President acceded to +this proposal, and gave him leave of absence from his post in the +Treasury. Mr. Gallatin did not anticipate a long absence, and felt, as +he said to his old friend Badollet, that he could nowhere be more +usefully employed than in this negotiation. Certainly he could have no +regret in leaving a cabinet which had so little regard to his own +feelings and so little political decency as to confer the appointment of +adjutant-general in the United States army on his malignant assailant, +William Duane of the "Aurora." + +Mr. Gallatin's mission, followed by the resignation of his post in the +cabinet, finally dissolved the political triumvirate, but not the +personal friendship of the men. Numerous attempts were made to alienate +both Jefferson and Madison from Gallatin while he held the portfolio of +the Treasury, but one and all they signally and ignominiously failed. +For Mr. Jefferson Mr. Gallatin had a regard near akin to reverence. A +portrait of the venerable sage was always on his study table. When about +setting out for France in 1816 he tendered his services to his old chief +and wrote to him that 'in every country and in all times he should never +cease to feel gratitude, respect, and attachment for him.' Jefferson +fully reciprocated this regard. From Monticello he wrote to Gallatin in +1823: "A visit from you to this place would indeed be a day of jubilee, +but your age and distance forbid the hope. Be this as it will, I shall +love you forever, and rejoice in your rejoicings and sympathize in your +ails. God bless and have you ever in His holy keeping." Nor does Mr. +Gallatin seem to have allowed any feeling of disappointment or +dissatisfaction at Mr. Madison's weakness to disturb their kindly +relations. Their letters close with the reciprocal assurance of +affection as well as of esteem. + + + + +CHAPTER VIII + +IN DIPLOMACY + +_The Treaty of Ghent_ + + +On May 9, 1813, the ship Neptune sailed from New Castle on the Delaware, +having on board Albert Gallatin and James A. Bayard, ministers of the +United States, with their four secretaries, of whom were Mr. Gallatin's +son James, and George M. Dallas, son of his old Pennsylvania friend. +They were accompanied to sea by a revenue cutter. Off Cape Henlopen they +were overhauled by the British frigate on the station, and their +passport was countersigned by the English captain. On June 20 they +reached the mouth of the river Gotha. Here the vessel lay at quarantine +for forty-eight hours, during which the gentlemen paid a flying visit to +Gottenburg. At dusk, on the 24th, the Neptune anchored in Copenhagen +inner roads, the scene of Nelson's attack in 1801. Mr. Gallatin's brief +memoranda of his voyage contain some crisp expressions. He found +"despotism and no oppression. Poverty and no discontent. Civility and no +servile obsequiousness amongst the people. Decency and sobriety." + +St. Petersburg was reached on July 21. Here Gallatin and Bayard found +John Quincy Adams, then minister to Russia. He was one of the three +commissioners appointed to treat for peace under the mediation which the +Emperor Alexander had offered to the United States. Bayard and Adams +were Federalists. To the moderate counsels of the former Jefferson owed +his peaceable election. Gallatin and Adams had the advantage of thorough +acquaintance with European politics. To Gallatin the study of history +was a passion. He was familiar with the facts and traditions of +diplomacy. He knew the purpose, the tenor, and the result of every +treaty made for centuries between the great powers; even their dates +were at ready command in his wonderful memory. But, excepting the few +Frenchmen of distinction who in the exile which political revulsions +imposed upon them had crossed the sea, he had no acquaintance with +Europeans of high position, and none whatever with the diplomatic +personnel of European courts. In this Adams was more fortunate. Educated +abroad, while his father was minister to the court of St. James, he was +from youth familiar with courts and their ways. To be the son of a +president of the United States was no small matter at that day. The +conjunction of these two men was rare. One of European birth and trained +to American politics, the other of American birth and brought up in the +atmosphere of European diplomacy. In their natural characteristics they +were the opposite of one another. Adams was impetuous, overbearing, +impatient of contradiction or opposition. Gallatin was calm, +self-controlled, persistent; not jealous of his opinions, but ready to +yield or abandon his own methods, if those of others promised better +success; never blinded by passion or prejudice, but holding the end +always in view. That end was peace; "peace at all times desirable," as +Mr. Gallatin said a few days before his departure on his mission, but +much more so, 'because of the incapacity shown in the conduct of the +war, its inefficiency when compared with its expense, and the open +hostility to it of a large number of the American people.' In the face +of the disasters which had befallen the country Mr. Gallatin must have +felt some qualms of conscience for his persistent opposition to the +military and naval establishments. Their reorganization had place in his +desire for peace. He said, May 5, 1813: "Taught by experience, we will +apply a part of our resources to such naval preparations and +organization of the public force as will, within less than five years, +place us in a commanding situation." With the particulars of the dispute +between the two countries he was perfectly familiar. His report prepared +in 1808 for Mr. Campbell, chairman of the Committee on Foreign +Relations, covered the whole ground of the American argument. + +At the outset there seemed good ground for hope of an early agreement. +European politics were at a critical point, and England naturally +wished to husband her resources for a sudden emergency. The mediation of +Russia Mr. Gallatin considered a salve to the pride of England. This +reasoning seemed sound enough, but it had not taken account of one +important element: the jealousy of England of any outside interference +between herself and her ancient dependencies. Mr. Gallatin did not hold +English diplomacy in very high regard. Late in life he said that the +history of the relations of England and France was a story of the +triumphs of English arms and of French diplomacy; that England was +always victorious, but France had as often negotiated her out of the +fruits of success. True as this remark was in general, it cannot be said +of the policy of England in American affairs. She pushed to the utmost +her exclusion of France from the American continent when the States were +colonies, and now that they were free and independent she would listen +to no foreign intervention. Neither in peace nor war should any third +government stand between the two nations. This was and ever has been the +true policy of Great Britain, and that it was not lost sight of in the +heat of war is to the credit of her diplomacy. The offer of Russia to +mediate was not welcome, and was set aside by Lord Castlereagh in a note +of discouragement. There was no ground for the commissioners to stand +upon; moreover the emperor and Count Nesselrode were absent from St. +Petersburg, Count Romanzoff being left in charge of the foreign +relations. The offer of mediation had originated with him. His policy +was to curb the maritime power of England, and to secure in the +negotiation a modification at least of the offensive practice of Great +Britain in her assumed police of the sea. + +The war was in fact a legacy of the necessarily incomplete diplomacy of +Washington's administration and the Jay treaty. The determining cause +was the enforcement of the right of search and the impressment of seamen +from American vessels; a practice at variance with the rights and the +law of nations. Monroe, Madison's secretary of state, urged the clear +and distinct forbearance of this British practice as the one object to +be obtained. An article in the treaty giving security in that respect +was by Gallatin, as well as by Monroe, considered a _sine qua non_ +condition; while Mr. Bayard viewed an informal arrangement as equally +efficient and more practicable than a solemn article. But there was no +doubt of Bayard's determination to reach the result prescribed in their +instructions. + +Mr. Gallatin's first act after setting foot on European shores was to +write to Baring Brothers & Co. at London. This he did from Gottenburg, +requesting a passport for the Neptune, which the commission proposed to +retain at St. Petersburg until their return. At the same time he +intimated that he wished the British government to be informed of the +object of the mission. For the expenses of the commission the +ambassadors had authority to draw on the Barings. The reply of Mr. +Alexander Baring must at once have opened Mr. Gallatin's eyes to the +futility of the errand of the commissioners. His words clearly state the +British grounds of objection: "The mediation of Russia was offered, not +sought,--it was fairly and frankly accepted,--I do not see how America +could with any consistency refuse it; but to the eyes of a European +politician it was clear that such an interference could produce no +practical benefit. The only question now seriously at issue between us +is one purely of a domestic nature in each country respectively; no +foreign government can fairly judge of it." Pointing out the difficulty +of establishing any distinction between the great masses of the +seafaring population of Great Britain and America, he finds that no +other country can judge of the various positions of great delicacy and +importance which spring from such a state of things; and says: "This is +not the way for Great Britain and America really to settle their +disputes; intelligent persons of the two countries might devise mutual +securities and concessions which perhaps neither country would offer in +the presence of a third party. It is a sort of family quarrel where +foreign interference can only do harm and irritate at any time, but more +especially in the present state of Europe, when attempts would be made +to make a tool of America." These, he said he had good reason to know, +were the sentiments of the British cabinet on the question of place of +negotiation and foreign mediation. He also informed Mr. Gallatin that +the mediation of Russia had been refused, and that the British +government would express its desire to treat separately and directly +either at London or Gottenburg. He warned Mr. Gallatin that an opinion +prevailed in the British public that the United States were engaged to +France by a secret political connection, which belief, though perhaps +not shared by the government, would lead it to consider the persevering +of the American commission upon bringing the insulated question before +the powers of the Continent as a touchstone of their sincerity. He hoped +that the American commissioners would come at once in contact with the +British ministers, and pointed out the hesitation that every minister +would feel at giving instructions on a matter so delicate as that +"involving the rights and duties of sovereign and subject." He then +declared that there was in England a strong desire for peace and for +ending a contest in which the "two countries could only tease and weaken +each other without any practical result," and at a time when England +desired to carry her resources into the "more important field of +European contest." He then gave Castlereagh's assurance, that the +cartel-ship, the Neptune, should be respected, and expressed his own +personal hope that he should ere long be gratified by seeing it bring, +with the commissioners, the hope of peace to the shores of England. + +Meanwhile Mr. Gallatin was engaged in explaining the American case to +Romanzoff by conversation and by a written statement of the facts in +the form of an unofficial note to the emperor. On August 10 word was +received from the Emperor Alexander authorizing the renewal of the offer +of mediation; and shortly after a letter from General Moreau, written to +Mr. Gallatin from the imperial headquarters at Hrushova, assured him of +his sympathy and assistance. His relations with Gallatin were of long +standing and of an intimate nature. Moreau, after a long residence in +America, to which he was warmly attached, had lately crossed the ocean +and tendered his able sword to the coalition against Bonaparte. He +informed Gallatin that one of the British ministers had said to him in +Germany that England would not treat of her maritime rights under any +mediation. He feared that American vanity would hardly consent to treat +directly with Great Britain, and foresaw that the political adversaries +of Madison and Gallatin would blame the precipitation of the United +States government in sending over the envoys before the adhesion of +England to the proposed arbitration was secured. He assured Gallatin of +the interest of the Emperor Alexander in the Americans. + +On August 24 Count Romanzoff read to the envoys his dispatch to Count +Lieven, the Russian minister at London, renewing the offer of mediation. +The commissioners considering their authority as limited to treating +under the mediation of Russia, Mr. Gallatin wrote to Monroe, inclosing +a copy of Baring's letter, which he looked upon as an informal +communication of the views of the British government, and asked for +contingent powers and instructions. These they could not expect to +receive before February. Gallatin replied to Mr. Baring that no +information of the refusal of Great Britain to the mediation had been +received, but, even if it had, the commission was not authorized to +negotiate in any other manner. They were, however, competent to treat of +commerce without mediation. He declined to discuss the objection of +Great Britain to the mediation of Russia, confining himself to an +expression of ignorance in America of any such feeling on the part of +the British ministry, and of the confidence placed in the personal +character of the emperor, which was considered a sufficient pledge of +impartiality; while the selection of a sovereign at war with France was +clear evidence that America neither had nor wished to have any political +connection with that power. That he himself believed an arrangement to +be practicable, he said to Mr. Baring, was evident from the fact that he +had given up his political existence, and separated himself from his +family. His opinion was, that while neither nation would be induced to +abandon its rights or pretensions in the matter of impressment, an +arrangement might be made by way of experiment which would reserve to +both their respective abstract rights, real or assumed. + +To Moreau he wrote stating his hope that, notwithstanding the first +objections of Great Britain, the mediation of the emperor would be +accepted, and he asked the general for his personal interposition to +this end. France and England he held to be equally at fault in the great +European contest; the one usurping and oppressing the land, the other +dominating and tyrannizing the sea. They alone, said he, have gained, if +not happiness, at least power. Russia, he was firmly persuaded, was the +only power at heart friendly to America. History has shown the sagacity +of this judgment. This letter was never answered. Moreau was at death's +door. + +Early in October Mr. Dallas was sent to London to open relations with +the British ministry. His presence there would save two months at least +in each correspondence which involved communication between Washington, +London, and St. Petersburg. Count Romanzoff gave the necessary letter of +introduction to Count Lieven. Gallatin's instructions to the young +secretary were explicit as to the caution he should exercise in a +country where he could consider himself as only on sufferance. Hardly +were these preliminaries concluded, and Dallas had not started on his +journey, when Mr. Gallatin received word from America that the Senate +had refused to confirm him in his position as commissioner. Mr. Gallatin +had not resigned his position of secretary of the treasury. The Senate +refused to sanction the cumulative appointment. + +Stripped of his official character, he now felt himself at liberty to +follow his own inclination. His first impulse was to go to London, where +he was sure that Baring's friendship would open to him a means of +usefulness in the matter on which he was engaged. The death of Moreau +cut off the medium of approach to the emperor. This event was of no +consequence, however, in the negotiation, as the emperor had been +positively informed in July that England would not countenance even the +appearance of foreign intervention in her dispute with America. But as +yet no official information of his rejection had been received by Mr. +Gallatin, nor did any reach him until March. Without it he could not +well leave St. Petersburg. Meanwhile a diplomatic imbroglio, caused by +the failure of the emperor to inform Romanzoff of Castlereagh's second +refusal to accept the offer of mediation, embarrassed the commission all +winter. Nor yet were they aware that the British minister, driven to the +wall by the second offer of the emperor, had made proposals to Monroe to +treat directly with the United States government. The British note with +this offer was written on November 4. Mr. Gallatin was apprised of it by +Mr. Dallas in January, 1814. Mr. Baring urged him, if he should return +to America during the winter, to take his way through England, as good +effects might result from even a passing visit. Gallatin was then, as he +expressed it, "chained for the winter to St. Petersburg," nor had he +any way of reaching home, except by a cartel from a British port. + +No word coming from the emperor, the envoys concluded to withdraw from +St. Petersburg. Before leaving, Mr. Gallatin addressed a letter of +thanks to Count Romanzoff, and requested him to communicate any +information he might receive from the emperor. It was supposed that the +offer of England to treat directly with America might be inclosed in +Castlereagh's letter of refusal to accept Russian mediation. On January +25, 1814, Mr. Gallatin and Mr. Bayard left St. Petersburg and traveled +by land to Amsterdam, which they reached after a tedious journey on +March 4. The captain of the Neptune was ordered to bring his vessel to a +port of Holland. At Amsterdam, where the envoys remained four weeks, +they learned that Mr. Madison had at once accepted Castlereagh's offer +and appointed a new commission, consisting of Messrs. Adams, Bayard, +Henry Clay, and Jonathan Russell. Mr. Gallatin was not included, as he +was supposed to be on his way home to resume his post in the Treasury +Department, the duties of which had been performed in his absence by Mr. +Jones, the secretary of the navy. When correct information did reach Mr. +Madison, on February 8, he immediately added Mr. Gallatin to the +commission, and appointed Mr. G. W. Campbell to be secretary of the +treasury. Thus it happened that Mr. Gallatin, whom Mr. Madison intended +for the head of the commission, was the last named of those who +conducted the negotiations. + +[Illustration: J. A. Bayard] + +On April 1, 1814, Mr. Gallatin concluded to pass through England on his +return, and leaving orders for the Neptune on its arrival to proceed to +Falmouth, he took the packet to Harwich, whither he requested Mr. Baring +to send him the requisite passports to enable him to reach London with +his suite without delay. + +In company with Mr. Bayard, Mr. Gallatin reached the English capital on +April 9, 1814. There they heard some days later of the arrival of +Messrs. Clay and Russell at Gottenburg. The situation of Great Britain +had greatly changed. Intoxicated with the success of their arms and the +abdication of Napoleon, the English people were quite ready to undertake +the punishment of the United States, while the release of a large body +of trained troops in France, Italy, Holland, and Portugal enabled the +ministry immediately to throw a large force into Canada for the summer +campaign. In the British cabinet a belief was said to be entertained +that a continuance of the war would bring about a separation of the +American Union, and perhaps a return of New England to the mother +country. In this emergency Gallatin availed himself of the opportunity +which presented itself of addressing Lafayette in sending to that +officer the patents for the Louisiana land granted to him by the +American government, and urged the use of his influence to promote an +accommodation between England and the United States. + +To Clay he wrote on April 22, proposing that the place of negotiation be +changed from "that corner" Gottenburg, either to London, or some neutral +place more accessible to the friendly interference of those among the +European powers upon which they must greatly rely. The Emperor Alexander +was expected in London, and Castlereagh, who had recently returned from +France where he had been in direct intercourse with him, was understood +to be of all the cabinet the best disposed to the United States. From +Clay Gallatin heard in reply that the British _charge d'affaires_ at +Stockholm had already asked the sanction of the Swedish government to +the negotiation at Gottenburg. While Clay was unwilling to go to London +he gave his consent to carry on the negotiations in Holland, if the +arrangement could be made in such a manner as to avoid any ill feeling +at the Swedish court by the change from Gottenburg. In May Gallatin and +Bayard asked of Monroe, who was then secretary of state, authority for +the commissioners to remove the negotiation to any place which their +judgment should prefer. In May, also, the British government was +officially notified by the American commissioners of their appointment. +Lord Bathurst answered with an assurance that commissioners would be +forthwith appointed for Great Britain, and with a proposal of Ghent as +the place for negotiation. This was at once acceded to. + +Meanwhile Mr. Crawford, the United States minister at Paris, was +endeavoring, at the instance of Mr. Gallatin, to secure the friendly +interposition of the Emperor Alexander, not as a mediator, but as a +common friend and in the interest of peace to the civilized world. +Crawford was unable to obtain an audience of the emperor, or even an +interview with Count Nesselrode, but Lafayette took up the cause with +his hearty zeal for everything that concerned the United States, and, in +a long interview with the emperor at the house of Madame de Stael, +submitted to him the view taken by the United States of the controversy, +and obtained from him his promise to exert his personal influence with +the British government on his arrival at London. Baron von Humboldt, the +Prussian minister at Paris, who had been influenced by British +misrepresentation, was also won over by Lafayette, and now tendered his +services to Mr. Gallatin in any way in which he might be made useful. +Lafayette's letter was brought by Humboldt in person. Gallatin and +Humboldt had met in 1804, when the great traveler passed through +Washington on his return from Peru and Mexico. + +The Treaty of Paris having been signed, Lord Castlereagh reached London +early in June, and the emperor arrived a few days later. Mr. Gallatin +had an audience of the emperor on June 17, and on the 19th submitted an +official statement of the American case and an appeal for the +interposition of his imperial majesty, "the liberator and pacifier of +Europe." From the interview Mr. Gallatin learned that the emperor had +made three attempts in the interest of peace, but that he had no hope +that his representations had been of any service. England would not +admit a third party to interfere, and he thought that, with respect to +the conditions of peace, the difficulty would be with England and not +with America. + +On June 13 Gallatin warned Monroe of the preparations England was making +which would enable her to land fifteen to twenty thousand men on the +Atlantic coast; that the capture of Washington and New York would most +gratify the British people, and that no help need be expected from the +countries of Europe, all which were profoundly desirous of peace. + +The ministry informing Mr. Gallatin that the British commissioners would +start for Ghent on July 1, he improved the interval by a visit to Paris. +He left London, where he had passed nearly three months in the uncertain +preliminaries of negotiation, and after a few days in the French capital +reached Ghent on July 6. The British commissioners only appeared on +August 6. They were Lord Gambier, Henry Goulburn, and William Adams, all +second-rate men, but for this reason suited to the part they had to +play. After the overturn of Napoleon the British cabinet had no desire +for peace, or at least not until they had secured by war some material +advantages in the United States, which a treaty would confirm. The +business of their representatives at Ghent was to make exorbitant +demands of the Americans and delay negotiations pending the military +operations in progress. + +In June Gallatin was satisfied of the general hostile spirit of Great +Britain and of its wish to inflict serious injury on the United States. +He notified Monroe of his opinion and warned him that the most favorable +terms to be expected were the _status ante bellum_, and not certainly +that, unless the American people were united and the country able to +stand the shock of the campaign. Mr. Madison's administration had +already humbled itself to an abandonment, or at least to an adjournment, +of the principle to establish which they had resorted to arms. But in +the first stages of the negotiation it was clear that the British +cabinet had more serious and dangerous objects in view, and looked +beyond aggression and temporary injury to permanent objects. At the +first meeting on August 8, the British commissioners demanded, as a +preliminary to any negotiation, that the United States should set apart +to the Indian tribes the entire territory of the Northwest to be held by +them forever in sovereignty under the guaranty of Great Britain. The +absurdity of such a demand is sufficient evidence that it was never +seriously entertained. There could have been no idea that the military +power of Great Britain was able to enforce, or that the United States +would abjectly submit to, such a mutilation of its territory and such a +limitation of its expansion. Behind this cover Mr. Gallatin +instinctively detected the real design of the cabinet to be the conquest +of New Orleans and the mouths of the Mississippi. If to the territory +thus acquired that of Florida should be added by cession from Spain, +which could hardly refuse any compensation asked of her by Great Britain +in return for the liberation of the Peninsula, a second British dominion +would be set up on the American continent. These views Gallatin +communicated to Monroe in a private dispatch of August 20, 1814, by the +hands of Mr. Dallas. To the _sine qua non_ of the British commissioners +no answer was made by the Americans. The negotiation was abruptly +suspended, and only by informal conversation was Mr. Goulburn given to +understand that reference had been had to America for instructions. Mr. +Gallatin was of opinion that the negotiations were at an end, and in his +despair of peace took consolation in the belief that the insolence of +the demand would unite America from Maine to Georgia in defense of her +rights, of her territory, and indeed of her independence. The American +commissioners made no secret of their belief that their mission was +closed. Two of the secretaries started from Ghent on a continental tour, +and notice was given to the landlord of the house where the +commissioners resided of their intention to quit it on October 1. On +August 2, while matters were still at this deadlock, Lord Castlereagh +passed through Ghent on his way to the Congress at Vienna. Goulburn was +ordered to change his tone and Lord Liverpool was advised to moderate +his demands; to use Castlereagh's words, to "a letting down of the +question." Lord Liverpool replied on September 2, that he had already +given Goulburn to understand that the commission had taken a very +erroneous view of British policy. In this communication he betrays the +hope, which the cabinet had entertained, of the outcome of American +dissensions, by his expression of the opinion that if the negotiation +had broken off on the notes already presented by the British commission, +or the answer that the Americans were disposed to make, the war would +have become popular in America. + +Lord Bathurst reopened the negotiations, but his modification was of +tone rather than of matter. The surrender of the control of the Lakes to +Great Britain, and of the Northwest Territory to the Indians, was still +adhered to. The reply of the American commissioners was drawn chiefly by +Mr. Gallatin. It absolutely rejected the proposals respecting the +boundary and the military flag on the Lakes, and refused even to refer +them to the American government, but offered to pursue the negotiation +on the other points. To Monroe Mr. Gallatin explained his reason for +assenting to discuss the Indian article, and therein his colleagues +concurred with him, to be: that they had little hope of peace, but +thought it desirable, if there were to be a breach, that it should be on +other grounds than that of Indian pacification. The reply of the +commission on this point, also drafted by Mr. Gallatin, was sent in on +September 26. It merely guaranteed the Indians in all their old rights, +privileges, and possessions. + +The destruction of the public buildings at Washington by the British +troops, known in London on October 1, caused a great sensation in +England. As Gallatin said in a letter to Madame de Stael, it was "an act +of vandalism to which no parallel could be found in the twenty years of +European war from the frontiers of Russia to Paris, and from those of +Denmark to Naples." "Was it (he asked), because, with the exception of a +few cathedrals, England had no public buildings comparable to them, or +was it to console the London mob for their disappointment that Paris was +neither pillaged nor burned?" It can hardly be doubted that the flames +which consumed the American capital lighted the way to peace. The +atrocity of war was again brought vividly to the view of nations whose +sole yearning was for peace. Far from discouraging the American +commissioners, it fortified their resolution. They knew that it would +unite the people of the States as one man. It in no way disturbed +Gallatin's confidence either in the present or future of his adopted +country. To those who asked his opinion of the securities of the United +States, he said: "If I have not wholly misunderstood America, its +resources and its political morality, I am not wrong in the belief that +its public funds are more secure than those of all European powers." + +In spite of the protests of Mr. Goulburn, who felt the ground on which +he stood daily less stable, and in his letters to his chief was +unsparing in his denunciations, Lord Liverpool accepted the proposed +settlement of the Indian question. Nothing remained but to incorporate +in a treaty form the points agreed upon. Lord Bathurst, who seems +throughout the negotiation to have forgotten the old adage, that "fine +words butter no parsnips," and with true British blindness never to have +appreciated how thoroughly he was overmatched by Mr. Gallatin, submitted +a preliminary notification that the British terms would be based on the +principle of _uti possidetis_, which involved a rectification of the +boundaries on the Canadian frontier. To this the Americans returned a +peremptory refusal. They would not go one step farther except on the +basis of the _status quo ante bellum_. Lord Liverpool considered this as +conclusive. A vigorous prosecution of the war was resolved upon by the +cabinet. Only for reasons of expediency was a show of negotiation still +kept up. + +But when the cabinet took a survey of the general field they felt little +complacency in the prospect of a struggle which sooner or later must +interest the maritime powers. France, compelled by the peace of Vienna +to withdraw from what even Lafayette considered as her natural frontier, +was restive, and there was a large party in Russia who would gladly see +the emperor take up the American cause. Moreover the chancellor of the +exchequer saw before him an inevitable addition of ten millions of +pounds sterling to his budget, the only avowable reason for which was +the rectification of the Canadian frontier. In their distress the +cabinet proposed to Wellington to go to the United States with the +olive-branch and the sword, to negotiate or conquer a peace. The desire +of the cabinet to bring the war to an honorable conclusion was avowed. +But Wellington, before accepting this proposal, gave Lord Liverpool a +very frank opinion of the mistake made in exacting territorial +concessions, since the British held no territory of the United States in +other than temporary possession, and had no right to make any such +demand. Lord Liverpool was not tenacious. He was never, he wrote Lord +Bathurst, much inclined to give way to the Americans, but the cabinet +felt itself compelled to withdraw from its extreme ground. He accepted +his defeat and acknowledged it. + +The Americans meanwhile arranged a draft of a treaty. The articles on +impressment and other maritime rights, absolutely rejected by the +British, were set aside. There only remained the question of the +boundaries, the fisheries, and the navigation of the Mississippi. Here +Mr. Gallatin had as much difficulty in maintaining harmony between Adams +and Clay as in obtaining a peace from Liverpool and Bathurst. Adams was +determined to save the fisheries; Clay would not hear of opening the +Mississippi to British vessels. A compromise was effected by which it +was agreed that no allusion should be made to either subject. Mr. +Gallatin terminated the dispute by adding a declaration that the +commissioners were willing to sign a treaty applying the principle of +the _status quo ante bellum_ to _all_ the subjects of difference. This +was in strict conformity with the instructions from the home government. +On November 10 the American draft was sent in. On the 25th the British +replied with a counter-draft which made no allusion to the fisheries, +but stipulated for the free navigation of the Mississippi. The Americans +replied that they would give up the navigation of the river for a +surrender of the fisheries. This proposal was at once refused by the +British. The matter was settled by an offer of the Americans to +negotiate under a distinct reservation of all American rights. All +stipulations on either subject were in the end omitted, the British +government on December 22 withdrawing the article referring to these +points. In the course of the negotiation Mr. Gallatin proposed that in +case of a future war both nations should engage never to employ the +savages as auxiliaries, but this article does not appear. To the credit +of civilization, however, the last article contained a mutual engagement +to put an end to the trade in slaves. An agreement entered into in +perfect faith, but which the jealousy of the exercise of search in any +form rendered nugatory for half a century. On Christmas day the treaty +was signed. Mr. Henry Adams[19] justly says, "Far more than +contemporaries ever supposed, or than is now imagined, the Treaty of +Ghent was the special work and the peculiar triumph of Mr. Gallatin." +His own correspondence shows how admirably he was constituted for the +nice work of diplomatic negotiation. In the self-poise which he +maintained in the most critical situations, the unerring sagacity with +which he penetrated the purposes of his adversaries, the address with +which he soothed the passions and guided the judgments of his +colleagues, it is impossible to find a single fault. If he had a fault, +says his biographer, it was that of using the razor when he would have +done better with the axe. But the axe is not a diplomatic weapon. The +simulation of temper may serve an occasional purpose, but temper itself +is a mistake; and to Mr. Gallatin's credit be it said, it was a mistake +never committed by him in the course of this long and sometimes painful +negotiation. Looking back upon its shifting scenes, it is clear that +even the pertinacity of Adams and the irascibility of Clay served to +advance the purpose of the mission. From the first to the last Mr. +Gallatin had his own way, not because it was his own way, but because it +was the best way and was so recognized by the majority of the commission +at every turn of difference. Fortunately for the interests of peace the +battle of New Orleans had not yet been fought. There seems a justice in +this final act of the war. The British attack upon the Chesapeake[20] +was committed before war had been declared. The battle of New Orleans +was fought a fortnight after the Treaty of Ghent was signed. The burning +of Washington was avenged by the most complete defeat which the British +had ever encountered in their long career of military prowess. + +By his political life Mr. Gallatin acquired an American reputation; by +his management of the finances of the United States he placed himself +among the first political economists of the day; but his masterly +conduct of the Treaty of Ghent showed him the equal of the best of +European statesmen on their own peculiar ground of diplomacy. No one of +American birth has ever rivaled him in this field. Europeans recognized +his pre-eminent genius. Sismondi praised him in a public discourse. +Humboldt addressed him as his illustrious friend. Madame de Stael +expressed to him her admiration for his mind and character. Alexander +Baring gave him more than admiration, his friendship. + + * * * * * + +Upon the separation of the commissioners, Mr. Gallatin paid a flying +visit to Geneva. His fame, or "glory," to use the words of Humboldt, +preceded him. Of his old intimates, Serre was under the sod in a West +Indian island; Badollet was leading a quiet life at Vincennes in the +Indiana Territory, where Gallatin had obtained for him an appointment in +the land office; Dumont was in England. Of Gallatin's family few +remained. But he received the honors due to him as a Genevan who had +shed a lustre on his native city. On his way to England, where he had +made an appointment with his colleagues to attempt a commercial treaty +with Great Britain, he stopped at Paris. Here he saw Napoleon, returned +from Elba, his star in full blaze before its final extinction. Here he +heard in April (1815) of his appointment by Madison as minister to +France. His colleagues also had been honored by similar advancements. +Adams was transferred from Russia to England. Bayard was named minister +to Russia, but illness prevented his taking possession of his post. + +In April, Mr. Gallatin and Mr. Clay opened negotiations with Lord +Castlereagh in London, where they were quickly joined by Adams. Lord +Castlereagh bore no malice against Mr. Gallatin for the treaty. On the +contrary, he wrote of it to Lord Liverpool as "a most auspicious and +seasonable event," and wished him joy at "being released from the +millstone of an American war." With Lord Castlereagh Mr. Gallatin +arranged in the course of the summer a convention regulating commercial +intercourse between the United States and Great Britain, the only truly +valuable part of which was that which abolished all discriminating +duties. Mr. Gallatin considered this concession as an evidence of +friendly disposition, and rightly judged that British antipathy and +prejudice were modified, and that in the future friendly relations would +be preserved and a rupture avoided. Beyond this, there was little +gained. The old irritating questions of impressment and blockade and the +exclusion of the United States from the West Indies trade remained. + +In July Mr. Gallatin parted from Mr. Baring and his London friends on +his homeward journey. From New York, on September 4, he wrote Madison, +thanking him for the appointment of minister to France as an "evidence +of undiminished attachment and of public satisfaction for his services;" +but he still held his acceptance in abeyance. To Jefferson, two days +later, he had also the satisfaction to say with justice, that the +character of the United States stood as "high as ever it did on the +European continents, and higher than ever it did in Great Britain;" and +that the United States was considered "as the nation designed to check +the naval despotism of England." To Jefferson he naturally spoke of that +France from which they had drawn some of their inspirations and their +doctrines. + +He thus describes the condition of the people:-- + + "The revolution (the political change of 1789) has not, however, + been altogether useless. There is a visible improvement in the + agriculture of the country and the situation of the peasantry. The + new generation belonging to that class, freed from the petty + despotism of nobles and priests, and made more easy in their + circumstances by the abolition of tithes, and the equalization of + taxes, have acquired an independent spirit, and are far superior to + their fathers in intellect and information; they are not + republicans and are still too much dazzled by military glory; but I + think that no monarch or ex-nobles can hereafter oppress them long + with impunity." + +And again, "Exhausted, degraded, and oppressed as France now is, I do +not despair of her ultimate success in establishing her independence and +a free form of government." But it was not till half a century later +that Gambetta, the Mirabeau of the Republic, led France to the full +possession of her material forces, and reestablished in their original +vigor the principles of 1789. That Gallatin was not blinded by +democratic prejudices appears in the letter he wrote to Lafayette after +Napoleon's abdication, in which he said: "My attachment to the form of +government under which I was born and have ever lived never made me +desirous that it should, by way of experiment, be applied to countries +which might be better fitted for a limited monarchy." + + +_Minister to France_ + +Strange as it appears, there is no doubt that Mr. Gallatin was at this +time heartily weary of political life, and seriously contemplated a +permanent retirement to the banks of the Monongahela. He naturally +enough declined a nomination to Congress, which was tendered him by the +Philadelphia district. His tastes were not for the violence and +turbulence of the popular house. + +Madison left him full time to decide whether he could arrange his +private affairs so as to accept the mission to Paris. In November he +positively declined. He considered the compensation as incompetent to +the support of a minister in the style in which he was expected to live. +His private income was at this time about twenty-five hundred dollars a +year. Monroe pressed him earnestly not to quit the public service, but +the year closed and Mr. Gallatin had not made up his mind. In the +situation of France, which he considered "would under her present +dynasty be for some years a vassal of her great rival," he did not +consider the mission important, and his private fortune was limited to a +narrow competence. "I do not wish," he wrote to Monroe, "to accumulate +any property. I will not do my family the injury of impairing the little +I have. My health is frail; they may soon lose me, and I will not leave +them dependent on the bounty of others." But being again earnestly +pressed, he on January 2, 1816, accepted the appointment. To Jefferson +he wrote that he would not conceal 'that he did not feel yet old enough +nor had philosophy enough to go into retirement and abstract himself +wholly from public affairs.' + +In April, Madison notified Mr. Gallatin of Dallas's probable retirement +from the Treasury, and offered him the post if he cared to return to it. +He was perfectly aware of his supreme fitness for the direction of the +Treasury, and he declined with reluctance, because he was disturbed by +the suspension of specie payments. Remembering Madison's weakness in +1812 on the subject of the renewal of the bank charter, which Gallatin +considered necessary in the situation of the finances, he could hardly +have felt a desire to return to the cabinet in that or indeed in any +other capacity. He was perfectly conscious that as leader of the House +of Representatives, as secretary of the treasury, and as negotiator of +the Ghent treaty, he had brought into the triumvirate all its practical +statesmanship. His short career abroad had opened to him a new source of +intellectual pleasure. He had earned a right to some hours of ease. +Diplomacy at that period, when communication was uncertain and +difficult, was perforce less restricted than in these latter days, when +ambassadors are little more than foreign clerks of the State Department +without even the freedom of a chief of bureau. Gallatin felt entirely at +home, and was happy in this peculiar sphere. There was no time in his +life when he would not have gladly surrendered all political power for +the enjoyment of intellectual ease, the pursuit of science, and the +atmosphere of society of the higher order of culture in whatever field. +And Paris was then, as it is still, the centre of intellectual and +social civilization. + +Jefferson rejoiced in Gallatin's appointment to France, and rightly +judged that he would be of great service there. Of Louis XVIII., +however, Jefferson had a poor opinion. He thought him 'a fool and a +bigot, but, bating a little duplicity, honest and meaning well.' +Jefferson could give Gallatin no letters. He had 'no acquaintances left +in France; some were guillotined, some fled, some died, some are exiled, +and he knew of nobody left but Lafayette.' With Destutt de Tracy, an +intimate friend of Lafayette, Jefferson was in correspondence. Indeed, +he was engaged on the translation of Tracy's work on political economy, +the best, in Jefferson's opinion, that had ever appeared.[21] + +Gallatin reached Paris with his family on July 9, 1816, and had an +interview with the Duc de Richelieu, the minister of Louis XVIII., two +days later. The conversation turned upon the sympathy for Bonaparte in +the United States, which Richelieu could not understand; but Gallatin +explained that it was not extended to him as the despot of France, but +as the most formidable enemy of England. Richelieu warned him of the +prejudices which might be aroused against the reigning family 'by +ex-kings and other emigrants of the same description' who had lately +removed to the United States. This was an allusion to Jerome, who had +fled from the throne of Westphalia to the banks of the Delaware. The +king gave Gallatin an audience on the 11th, when he presented his +credentials. His reception both by his majesty and the princes was, he +wrote to Monroe, "what is called gracious." Louis the Eighteenth was a +Bourbon to the ends of his fingers. He had the _bonhommie_ dashed with +malice which characterized the race. None could better appreciate than +he the vein of good-natured satire, the acquired tone of French society, +which was to Mr. Gallatin a natural gift. Mr. Gallatin was not only +kindly but familiarly received at court; and at the _petits soupers_, +which were the delight of the epicurean king, his majesty on more than +one occasion shelled the crawfish for the youthful daughter of the +republican ambassador. An anecdote is preserved of the king's courteous +malice. To a compliment paid Mr. Gallatin on his French, the king added, +"but I think my English is better than yours." + +Gallatin's first negotiations were to obtain indemnity for the captures +under the Berlin and Milan decrees; but although the Duc de Richelieu +never for a moment hinted that the government of the Restoration was not +responsible for the acts of Napoleon, yet he stated that the mass of +injuries for which compensation was demanded by other governments was so +great that indemnity must be limited to the most flagrant cases. They +would pay for vessels burnt at sea, but would go no farther. In spite of +Mr. Gallatin's persistency no advance was made in the negotiation. A +minor matter gave him some annoyance. On July 4, 1816, at a public +dinner, the postmaster at Baltimore proposed a toast which, by its +disrespect, gave umbrage to the king. Hyde de Neuville, the French +minister to the United States, demanded the dismissal of the offender. +If our institutions and habits as well as public opinion had not +forbidden compliance with this request, the dictatorial tone of De +Neuville was sufficient bar. Richelieu could not be made to understand +the reason for the refusal, and while disclaiming any idea of using +force, said that the government would show its dissatisfaction in its +own way. This seemed to intimate an indefinite postponement of a +consideration of American demands, and would have rendered Mr. +Gallatin's further residence useless as well as unpleasant; but French +dignity got the better of what Gallatin termed, "the sickly +sentimentality which existed on the subject of personal abuse of the +king," and the insignificant incident was not allowed to interfere with +friendly intercourse. + +In 1817 Mr. Gallatin was engaged not only in advising Mr. Adams at +London upon the points of a commercial treaty with Great Britain, but +also, together with Mr. William Eustis, minister to the Netherlands, in +a negotiation with that government. + +The commission met at the Hague, Mr. Goldberg and Mr. Van der Kemp +representing Holland. The subjects were the treaty of 1782 between the +States-general of the Netherlands and the United States, the repeal of +discriminating duties, and the participation of the United States in the +trade with the Dutch East Indies. The basis of a treaty could not be +agreed upon, and the whole matter was referred back to the two +governments, the American commissioners recommending to the President a +repeal of duties discriminating against vessels of the Netherlands, +which would no doubt prevent future exaction of extra tonnage duties +imposed on American vessels by that government. These negotiations +occupied the late summer months. At the end of September Mr. Gallatin +was again at his post in Paris. + +In June, 1818, Mr. Richard Rush, who owed his introduction into public +life to Mr. Gallatin, was appointed minister to England, Adams returning +to the United States to take the portfolio of State in President +Monroe's cabinet. Gallatin was joined to Rush, for the conduct of +negotiations with Great Britain, rendered necessary by the approaching +expiration of the commercial convention of July 3, 1815, which had been +limited to four years. The general field of disputed points was again +entered. It included the questions of impressment, the fisheries, the +boundaries, and indemnity for slaves. The commissioners were supported +by a temper of the American people different from that which prevailed +when Jay and Gallatin respectively undertook the delicate work of +negotiation in 1794 and 1814. A compromise was arrived at, which was +signed on October 20, 1818. The articles on maritime rights and +impressment were set aside. A convention was made for ten years in +regard to the fisheries, the northwest boundary, and other points, and +the commercial convention of 1815 was renewed. The English claim to the +navigation of the Mississippi was finally disposed of, and the article +concerning the West India trade was referred to the President. The +arrangement of the fishery question disturbed Mr. Gallatin, who found +himself compelled to sign an agreement which left the United States in a +worse situation in that respect than before the war of 1812. But as the +British courts would certainly uphold the construction by their +government of the treaty of 1783, our vessels, when seized, would be +condemned and a collision would immediately ensue. This, and the +critical condition of our Spanish relations, left no choice between +concession and war. A short time afterward Lord Castlereagh and the Duke +of Wellington expressed friendly dispositions, and the mooted points of +impressment and the West India trade were considered by them to be near +an arrangement. The right of British armed vessels to examine American +crews was abandoned in the convention itself. + +In July, 1818, the capture of Fort St. Mark and the occupation of +Pensacola in Florida by General Jackson made some stir in the quiet +waters of our foreign diplomacy. Uncertain as to whether the act would +be disavowed or justified by the American government, Mr. Gallatin +explained to the European ministers that the forcible occupation of the +Spanish province was an act of self-defence and protection against the +Indians, but Richelieu replied that the United States "had adopted the +game laws and pursued in foreign ground what was started in its own." +Yet, to the astonishment of Mr. Gallatin, Richelieu was moderate and +friendly in language, and urged a speedy amicable arrangement of +differences with Spain, in whose affairs France took an interest, and +who had asked her good offices. But Gallatin at once rejected any idea +that the United States would join France in any mediation between Spain +and her revolted colonies. It seems rather singular that, to the +suggestion that a Spanish prince might be sent over to America as an +independent monarch, Gallatin contented himself with expressing a doubt +as to the efficacy of such a course to preserve their independence. Mr. +Adams was informed that public recognition of the independence of the +insurgent colony of Buenos Ayres would shock the feelings and prejudices +of the French ministers, but that notwithstanding this displeasure, +France would not join Spain in a war on this account. England, however, +would see such a war without regret, and privateers under Spanish +commissions would instantly be fitted out, both in France and England. +Under the existing convention with Great Britain three hundred American +vessels arrived at Liverpool in the first nine months of 1818 from the +United States and only thirty English, an advantage to the United States +which war would at once destroy. Russia also was displeased with the +recognition of the independence of the Spanish colonies. At the Congress +of Aix la Chapelle various plans of mediation were proposed, but England +refusing to engage to break off all commercial relations with such of +the insurgent colonies as should reject the proposals agreed to, the +whole project was abandoned. An agreement between the five great powers +for the suppression of the slave trade was also proposed at this +Congress, but France declined to recognize the right to visit French +vessels in time of peace, and Russia making a similar declaration, this +plan also fell to the ground, and even an association against the +exactions of the Barbary powers was prevented by jealousy of the naval +preponderance of Great Britain. + +While Mr. Gallatin was still actively engaged in an endeavor to put our +commercial relations with France on a satisfactory basis, and +negotiating with M. Pasquier, the new French minister for foreign +affairs, both with regard to indemnities for captures and the new +Spanish relations involved in the cession of Florida to the United +States, a serious trouble arose in which Mr. Gallatin and Mr. Adams +were at direct difference. In the spring of 1821 a French vessel, the +Apollon, was seized on the St. Mary's River, on the Spanish side, and +condemned for violation of the United States navigation laws. Mr. Adams +sustained the seizure and Mr. Gallatin did his best to defend it, on the +ground that the place where the vessel was seized was embraced in the +occupation of the United States. To Adams he wrote that the doctrine +assumed by the State Department with respect to the non-ratified treaty +with Spain was not generally admitted in Europe, and that "he thought it +equally dangerous and inconsistent with our general principles to assert +that we had a right to seize a vessel for any cause short of piracy in a +place where we did not previously claim jurisdiction." Mr. Gallatin +succeeded in satisfying M. Pasquier that the seizure was not in +violation of the law of nations or an insult to the French flag, and the +captain having instituted a suit for redress against the seizing +officers, the French minister allowed the matter to rest. Adams, +however, was indignant at having his arguments set aside. He complained +of it to Calhoun, and asked what Mr. Gallatin meant. Calhoun answered +that perhaps it was "the pride of opinion." But when Adams got to his +diary, which was the safety-valve of his ill-temper, he set a black mark +against Mr. Gallatin's name in these words: "Gallatin is a man of +first-rate talents, conscious and vain of them, and mortified in his +ambition, checked as it has been, after attaining the last step to the +summit; timid in great perils, tortuous in his paths; born in Europe, +disguising and yet betraying a superstitious prejudice of European +superiority of intellect, and holding principles pliable to +circumstances, occasionally mistaking the left for the right handed +wisdom." Against this judgment, Gallatin's estimate of Adams may be here +set down. It was expressed to his intimate friend Badollet in 1824: +"John Q. Adams is a virtuous man, whose temper, which is not the best, +might be overlooked; he has very great and miscellaneous knowledge, and +he is with his pen a powerful debater; but he wants, to a deplorable +degree, that most essential quality, a sound and correct judgment. Of +this I have had in my official connection and intercourse with him +complete and repeated proofs; and although he may be useful when +controlled and checked by others, he ought never to be trusted with a +place where, unrestrained, his errors might be fatal to the country." +Crawford complained of the difficulty he encountered in the cabinet of +softening the asperities which invariably predominated in the official +notes of the State Department while under Adams's direction, and said +that, had they been allowed to remain as originally drafted, the +government would have been "unembarrassed by diplomatic relations with +more than one power." But it must be remembered that there was no love +lost between Adams and Crawford--political rivals and not personal +friends. + +The commercial negotiations, and the discussion of French pretensions +under the eighth article of the Louisiana treaty, opened with M. +Pasquier, were continued with the Vicomte de Montmorenci, who succeeded +him as minister of foreign affairs. In September, 1821, Mr. Gallatin had +communicated to Mr. Adams his intention of returning home in the spring; +but there appearing a chance of success in the negotiation of a treaty, +he wrote in February, 1822, to President Monroe that if no successor had +been appointed, he was desirous to remain some time longer. He was loath +to return without having succeeded in any one subject intrusted to his +care. Meanwhile Mr. Adams and M. de Neuville, the French minister, had +been busy in the United States. A commercial convention was signed at +Washington on June 24, 1822. Concerning this agreement Mr. Gallatin +wrote to Adams that the terms were much more favorable to France than he +had been led to presume would be acceded to, and more so than had been +hoped for by the French government. He nevertheless expressed the wish +that, as it had been signed, it should be ratified, in anticipation that +the superior activity of our ship-owners and seamen would enable America +to stand the competition. + +In January, 1823, Montmorenci resigned and was succeeded by M. de +Chateaubriand. The change of ministers made no change in the French +persistence in connecting the discussion of the American claims with +that of the eighth article of the Louisiana treaty, an arrangement to +which Mr. Gallatin would not consent. As a last resort he so informed M. +de Chateaubriand, but receiving an unsatisfactory answer he concluded +that there was at that time no disposition in France to do us justice; +and as his protracted stay could be of no service to the United States, +he determined to return home in the course of the spring. In April he +received leave of absence from the President. On May 13 he had a final +conference with Chateaubriand, in which he could get no promise of any +redress, but did obtain the explicit declaration that France would in no +manner interfere in American questions. + +Mr. Gallatin took passage at Havre, and arrived in New York on June 24, +1823. His political friends, especially Crawford, were eager for his +return. Crawford wished him to stand for vice-president in the coming +presidential campaign. After a short visit to Washington he went to his +home at New Geneva. The real value of perfect public service, or indeed +of any service, is only appreciated when it ceases, and friction takes +the place of smooth and noiseless order. Hardly was Mr. Gallatin settled +at Friendship Hill when a letter from President Monroe (October 15) +arrived, urging him to return to Paris, if only for the winter, or until +the crisis brought on by the rupture between France and Spain should be +over. Mr. Gallatin replied, that the deranged state of his private +affairs rendered his return to Europe extremely improbable. + +Goethe says in his "Elective Affinities" that we cannot escape the +atmosphere we breathe. The natural atmosphere of Mr. Gallatin was public +life. In November, 1825, Mr. Clay, Adams's secretary of state, offered, +and, meeting a refusal, pressed upon Mr. Gallatin the post of +representative of the United States at the proposed Congress of American +Republics at Panama. Mr. Clay was right in considering it the most +important mission ever sent from the United States, and had Mr. Gallatin +accepted it, relations with these interesting countries might have been +improved to an immeasurable degree of happiness to them, and of benefit +to both continents. But his family would not hear of his exposure in the +fatal climate of the American Isthmus. Moreover, he pleaded his +ignorance of the Spanish language as a sufficient excuse for declining +the mission,--an example which has not been followed in later days. + + +_Minister to England_ + +In the spring of 1826 Mr. Rufus King, who had taken the place of Mr. +Rush at London, that gentleman having been called to the Treasury by +President Adams, fell ill, and requested the assistance of an +extraordinary envoy. Mr. Gallatin accepted the mission. Before his +nomination reached the Senate Mr. King's resignation was received and +accepted. President Adams wishing to intrust Mr. Gallatin alone with +the pending negotiations, and unwilling to make the two nominations of +minister and envoy, proposed to Mr. Gallatin to take the post of +minister, with powers to negotiate, and liberty to return when the +negotiations should be finished. Personal expenses at London were so +great that the post of resident minister was ruinous. Mr. Adams promised +Mr. Gallatin _carte blanche_ as to his instructions. But instead of +latitude and discretionary power he received at New York voluminous +directions which he engaged faithfully to execute, while regretting that +they had not been made known to him sooner. Nevertheless, in the three +days which intervened before his sailing, he wrote to Mr. Clay a lucid +statement of the points in issue, and mentioned the modifications he +desired. The points were: 1. The northeastern boundary. Upon this he was +only authorized to obtain a reference of the subject to a direct +negotiation at Washington. He asked consent, in case it should be +desirable, to open a negotiation on this point at London. Should Great +Britain refuse to open a negotiation at either place, or to agree to a +joint statement, then he was not to be bound to propose an immediate +reference to a third power. 2. The boundary west of the Stony Mountains. +The instructions limited British continuance on settlements south of the +49th parallel to five years. Mr. Gallatin thought this insufficient, and +proposed fifteen years. 3. The St. Lawrence navigation, and the +intercourse with Canada, as to which he suggested alternate plans. 4. +Colonial trade, on which he asked precise instructions as to what was +desired. To the President he complained of his instructions as 'of the +most peremptory nature, leaving no discretion on unimportant points, and +making of him a mere machine,' and he requested that it be officially +announced to him 'that the instructions were intended to guide but not +absolutely to bind him.' He was not afraid of incurring responsibility +where discretion was allowed, but he would not do it in the face of +strict and positive injunctions. Mr. Gallatin sailed from New York with +his wife and daughter July 1, 1826. Mr. William Beach Lawrence, then a +youth, accompanied him as his secretary. They reached London on August +7. + +Canning was then at the head of the foreign office, and the temper of +the ministry was not that of Castlereagh and Wellington. Mr. Gallatin +did not like French diplomacy, nor did he admire that of England. He +wrote to his son: 'Some of the French statesmen occasionally say what is +not true; here (in London) they conceal the truth.' But while in +diplomacy he found strength and the opinion of that strength to be the +only weapons, he felt satisfaction that the country could support its +rights and pretensions by assuming a different attitude. In the course +of the negotiations Mr. Gallatin learned that one of the king's +ministers had complained of the tone of United States diplomacy towards +England, and had added, that it was time to show that it was felt and +resented. No such fault could attach to the correspondence of Mr. Rush +and Mr. King, or to that of Mr. Clay, which Mr. Addington had found +quite acceptable; but it was ascribed to Mr. Adams's instructions to Mr. +Rush, printed by order of the Senate. Mr. Gallatin later discovered that +the offensive remarks were in Baylies's report on the territory west of +the Stony Mountains. Mr. Gallatin explained the independence of the +House committees in the United States, but as a diplomatist he felt the +need of a concert between the executive and the committees of Congress +in all that concerns foreign relations. Government, after all, is a +complex science. + +The simple directness with which Mr. Gallatin dealt with Lord Liverpool +could not serve with a man of Canning's disposition. Mr. Gallatin did +not fail to bring to bear the pressure of a possible change in the +relations of the United States and Great Britain, which might arise from +the war which seemed imminent between that power and Spain. The new +questions of Cuba, and the old habit of impressment, might at once bring +the United States into collision with England. But the war did not take +place, and the close of the year found the negotiations not far +advanced. Only the convention of 1815 would no doubt be renewed. He +asked for further instructions on that subject, the joint occupancy of +western territory, and impressments, all of which he hoped to arrange +in the spring and summer, and return home. Mr. Lawrence he found to be a +secretary more capable in the current business of the legation than any +of his predecessors. Mr. Gallatin could safely leave him there as +_charge d'affaires_. + +In December, Chateaubriand used in the House of Peers the words which +Mr. Gallatin had said to him, 'that England could not take Cuba without +making war on the United States, and that she knew it.' Mr. Gallatin so +informed Adams, and added, that France would no doubt agree, as +Chateaubriand would have agreed, to a tripartite instrument if England +were of the same opinion. + +In March, 1827, Adams warned Gallatin that the sudden and unexpected +determination of Great Britain to break off all negotiation concerning +the colonial trade, and the contemporaneous interdiction of the vessels +of the United States from all British ports in the West Indies, had put +a new face on matters. A renewal of the convention of 1818 would +probably be agreed to by the Senate, but no concession in the form of a +treaty would be acceptable. His words were emphatic. "One inch of ground +yielded on the northwest coast,--one step backward from the claim to the +navigation of the St. Lawrence,--one hair's breadth of compromise upon +the article of impressment would be certain to meet the reprobation of +the Senate." In this temper of parties, Adams added, "All we can hope to +accomplish will be to adjourn controversies which we cannot adjust, and +say to Britain as the Abbe Bernis said to Cardinal Fleuri: 'Monseigneur, +j'attendrai.'" + +But changes now occurred in the British ministry: Lord Liverpool died in +February, 1827--Mr. Canning in the following August. Lord Goderich +became prime minister. The new administration returned from Canning's +eccentric course to the old and quiet path. The commercial convention of +1815 was renewed indefinitely, each party being at liberty to abrogate +it at twelve months' notice. The joint occupancy of the Oregon +Territory, agreed to in 1818, was continued in a similar manner. On +September 29 a convention was signed, referring the northeast boundary +to the arbitration of a friendly sovereign. Mr. Gallatin believed that, +had Canning lived, he would have opened a negotiation on the subject of +impressment. Huskisson considered that 'the right, even if well founded, +was one the exercise of which was intolerable, but that this was not the +time to take up the subject.' The new British administration did not +dare to encounter the clamor of the navy, the opposition of the Tories, +and the pride of the nation on this question. + +Having accomplished all that was practicable, completed all the current +business, and leaving the British government in a better temper than he +found it, Mr. Gallatin returned to the United States, reaching New York +on November 29, 1827. Nothing remained in foreign relations in respect +to which Mr. Gallatin felt that he could be of much use except the +northeast boundary. In a letter of congratulation to Mr. Gallatin on his +arrival, President Adams made ample amends for all his harsh judgments, +expressed or withheld. The three conventions were entirely satisfactory +to him. Of the negotiation he said, in words as graceful as warm, "I +shall feel most sensibly the loss of your presence at London, and can +form no more earnest wish than that your successor may acquire the same +influence of reason and good temper which you did exercise, and that it +may be applied with as salutary effect to the future discussions between +the two governments." During his visit to London Mr. Gallatin was +overwhelmed with civilities. Canning was courteous to a degree, and +rarely a day passed that the American ambassador had not to choose +between half a dozen invitations to dinner. At the house of the Russian +minister, the Count de Lieven, he was always welcome, and the Countess +de Lieven, the autocrat of foreign society in London, without whose pass +no stranger could cross the sacred threshold of Almack's, was his fast +friend. To each circle he carried that which each most prized. Whether +the conversation turned upon government or science, the dry figures of +finance, or the more genial topic of diplomatic intrigue, Mr. Gallatin +was its easy master, and his words never fell on inattentive ears. + +With this mission to London Mr. Gallatin's diplomatic service closed. He +would have accepted the French mission in 1834, and so informed Van +Buren, but General Jackson, who was President, had his own plans, and +'ran his machine' without consulting other than his own prejudices or +whims. But although Mr. Gallatin was no longer in the field of +diplomacy, his counsels were eagerly sought. The northeastern boundary +was a troublesome question, indeed in the new phases of American +politics an imminent danger. The extension of the commercial relations +of Great Britain and the United States rendered it imperative that no +point of dispute should remain which could be determined. For two years +after his return from England, Mr. Gallatin was employed in the +preparation of an argument to be laid before the king of the +Netherlands, who had been selected as the arbiter between the United +States and Great Britain on the boundary. The king undertook to press a +conventional line, which the United States, not being bound to accept, +refused. In 1839 Mr. Gallatin prepared, and put before the world, a +statement of the facts in the case. This, revised, together with the +speech of Mr. Webster, a copy of the Jay treaty, and eight maps, he +published at his own expense in 1840. + +At this time conflicts on the Maine frontier brought the subject up in a +manner not to be ignored. Popular feeling was at high pitch. In this +condition of affairs Alexander Baring, who had been raised to the +peerage as Lord Ashburton, was sent to America on a mission of +friendship and peace. As a young man he had listened to the debate on +Jay's treaty in 1795. He was now to be received by Webster in Washington +in the same spirit in which Grenville received Jay in London, when it +was mutually understood that they should discuss the matter as friends +and not as diplomatists, and leave their articles as records of +agreement, not as compromises of discord. Gallatin eagerly awaited the +arrival of his old friend, and was grievously disappointed when contrary +winds blew the frigate which carried him to Annapolis. Letters were +immediately exchanged; Lord Ashburton engaging before he left the +country to find Gallatin out, and, as he said, to "_draw a little wisdom +from the best well_." After the treaty was signed, Lord Ashburton went +from Washington to New York, and the old friends met once more: Mr. +Gallatin was in his 82d year, but in the full possession of his +faculties; Lord Ashburton in his 68th year: a memorable meeting of two +great men, whose lives had much in common; the one the foremost banker +of England, the other the matchless financier of America; and to this +sufficient honor was added for each the singular merit of having +negotiated for his country the most important treaty in its relation to +the other since the separation of 1783,--Mr. Gallatin, the Treaty of +Ghent, which gave peace to America; Lord Ashburton, that treaty which +is known by his name and which secured peace to Great Britain. + +In 1846 Mr. Gallatin rendered his last diplomatic service by the +publication of a pamphlet on the Oregon question, which was then as +threatening as that of the northeastern boundary had been. This +admirable exposition, which put before the people as well as the +negotiators the precise merits of the controversy, powerfully +contributed to the ultimate peaceful settlement. + +Still once more Mr. Gallatin threw his authoritative words into the +scale of justice. His last appearance in public had been when he +presided on April 24, 1844, at a meeting in New York city to protest +against the annexation of Texas. He then held that the resolution of the +House declaring the treaty of annexation between the United States of +America and the Republic of Texas to be the fundamental law of union +between them, without and against the consent of the Senate, was a +direct and undisguised usurpation of power and a violation of the +Constitution. In the storm of opposition he lifted his feeble voice in +condemnation of the violation of treaties, and the disregard of the +sacred obligations of mankind. "I am highly gratified," were his final +words, "I am highly gratified that the last public act of a long life +should have been that of bearing testimony against this outrageous +attempt. It is indeed a consolation that my almost extinguished voice +has been on this occasion raised in defense of liberty, of justice, and +of our country." Of the war with Mexico, he was wont to say, "that it +was the only blot upon the escutcheon of the United States." Aged as he +was, he would not rest until he had made his last appeal for peace with +Mexico. He also prepared supplementary essays on war expenses: the first +of these was published in 1847, the second in 1848. For months all his +faculties, all his feelings were absorbed in this one subject. These +pamphlets were widely circulated by the friends of peace. The venerable +sage had the comfort of knowing that his words were not in vain. Peace +with Mexico was signed on February 2, 1848. + + * * * * * + +Mr. Gallatin was no believer in the doctrine of 'manifest destiny,'--the +policy of bringing all North America into the occupation of a race +speaking the same language, and under a single government. On February +16, 1848, before news of the signature of the treaty at Guadalupe +Hidalgo, by Mr. Trist, the American negotiator, was known in New York, +Mr. Gallatin condemned this idea in a remarkable passage, in a letter to +Garrett Davis:-- + + "What shall be said of the notion of an empire extending from the + Atlantic to the Pacific and from the North Pole to the Equator? Of + the destiny of the Anglo-Saxon race, of its universal monarchy over + the whole of North America? Now, I will ask, which is the portion + of the globe that has attained the highest degree of civilization + and even of power--Asia, with its vast empires of Turkey, India, + and China, or Europe divided into near twenty independent + sovereignties? Other powerful causes have undoubtedly largely + contributed to that result; but this, the great division into ten + or twelve distinct languages, must not be neglected. But all these + allegations of superiority of race and destiny neither require nor + deserve any answer. They are but pretences under which to disguise + ambition, cupidity, or silly vanity." + +The justice of these reflections was assuredly borne out by the +experience of history, but manifest destiny takes no account of past +lessons. + +Before these lines of Mr. Gallatin were penned, on January 19, 1848, +gold was discovered in California. The announcement startled the world +and opened a new era, not only to Europe, but to mankind. Extending the +metallic basis, which no man better than Mr. Gallatin recognized and +held to be the true solvent of money transactions, it postponed for a +half century the inevitable conflict between capital and labor, the +first outbreaks of which in Europe had been with difficulty suppressed, +when the news of good tidings gave promise of unexpected relief. Credit +revived, new enterprises of colossal magnitude were undertaken, and the +demand for labor quickly exceeded the supply. Emigration to America rose +to incredible proportions. Had Mr. Gallatin lived, he would have found +new elements to be weighed in his nice balance of probabilities. He +would no longer, as in 1839, have been compelled to say that "specie is +a foreign product," but would have given to us inestimable advice as to +the proper use to be made of the vast sums taken out from our own soil. +He would have been also brought to face the ethnologic problem of a +continent inhabited by a single race, not Anglo-Saxon, nor Teutonic, nor +yet Latin, but a composite race in which all these will be merged and +blended; a new American race which, springing from a broader surface, +shall rise to higher summits of intellectual power and, with a greater +variety of natural qualities, achieve excellence in more numerous ways. +This vision was denied to Mr. Gallatin. He died at the threshold of the +new era--of the golden age. A half century has not passed since his +death, and the United States has taken from her soil a value of over +three thousand millions of dollars, in gold and silver (gold two +thousand millions, silver one thousand millions), more than two thirds +of the total amount estimated by Mr. Gallatin as the store of Europe in +1839; and has also added to her population, by immigration alone, ten +millions of people, of whom but a small proportion are of the +Anglo-Saxon race. + +FOOTNOTES: + +[Footnote 19: _Life of Albert Gallatin_, p. 546.] + +[Footnote 20: The frigate Chesapeake was captured by the British +man-of-war Leopard in June, 1807.] + +[Footnote 21: A translation of this work, _Economie Politique_, was +published under Jefferson's supervision in 1818.] + + + + +CHAPTER IX + +CANDIDATE FOR THE VICE-PRESIDENCY + + +During the twelve years that Mr. Gallatin was in the Treasury he was +continually looking for some man who could take his place in that +office, and aid in the direction of national politics; to use his own +words, "who could replace Mr. Jefferson, Mr. Madison, and himself." +Breckenridge of Kentucky only appeared and died. The eccentricities of +John Randolph unfitted him for leadership. William H. Crawford of +Georgia, Monroe's secretary of the treasury, alone filled Gallatin's +expectations. To a powerful mind Crawford "united a most correct +judgment and an inflexible integrity. Unfortunately he was neither +indulgent nor civil, and, consequently, was unpopular." Andrew Jackson, +Gallatin said, "was an honest man, and the idol of the worshipers of +military glory, but from incapacity, military habits, and habitual +disregard of laws and constitutional provisions, entirely unfit for the +office of president." John C. Calhoun he looked upon as "a smart fellow, +one of the first amongst second-rate men, but of lax political +principles and an inordinate ambition, not over-delicate in the means of +satisfying itself." Clay he considered to be a man of splendid talents +and a generous mind; John Quincy Adams to be 'wanting to a deplorable +degree in that most essential quality, a sound and correct judgment.' + +The contest lay between Adams and Crawford. Crawford was the choice of +Jefferson and Madison as well as of Gallatin. The principles of the +Republican party had so changed that Nathaniel Macon could say in 1824, +in reply to a request from Mr. Gallatin to take part in a caucus for the +purpose of forwarding Mr. Crawford's nomination, that there were "not +five members of Congress who entertained the opinions which those did +who brought Mr. Jefferson into power." But Macon was of the Brutus stamp +of politicians; of that stern cast of mind which does not 'alter when it +alteration finds or bend with the remover to remove,' and held yielding +to the compulsion of circumstances to be an abandonment of principle. + +Jefferson still held the consolidation of power to be the chief danger +of the country, and the barrier of state rights, great and small, to be +its only protection even against the Supreme Court. Gallatin took +broader ground, and found encouragement in the excellent working of +universal suffrage in the choice of representatives to legislative +bodies. But he was opposed to the extension of the principle to +municipal officers having the application of the proceeds of taxes, +forgetting that universal suffrage is the lever by which capital is +moved to educate labor and relieve it from the burdens of injury, +disease, and physical incapacity at the expense of the whole. Without +stopping to argue these debatable questions, Mr. Gallatin, with +practical statesmanship, determined to maintain in power the only agency +by which he could at all shape the political future, and he threw +himself into the canvass with zeal. + +Crawford had unfortunately been stricken with paralysis, and the choice +of a vice-president became a matter of grave concern. Mr. Gallatin was +selected to take this place on the ticket. To this tender he replied +that he did not want the office, but would dislike to be proposed and +not elected, and he honestly felt that as a foreigner and a residuary +legatee of Federal hatred his name could not be of much service to the +cause. Still, he followed the only course by which any party can be held +together, and surrendered his prejudices and fears to the wishes of his +friends. The Republican caucus met on February 14, 1824, in the chamber +of the House of Representatives. Of the 216 members of the party only 66 +attended. Martin Van Buren, then senator from New York, managed this, +the last congressional caucus for the selection of candidates. + +The solemnity given to the congressional nominations, and the publicity +of the answers of candidates, Mr. Gallatin held to be political +blunders. In fact the plan was adroitly denounced as an attempt to +dictate to the people. + +Crawford was nominated for president by 64 votes, Gallatin for +vice-president by 57. This nomination Mr. Gallatin accepted in a note to +Mr. Ruggles, United States senator, on May 10, 1824. But there were +elements of which party leaders of the old school had not taken +sufficient account. Macon was right when he said that "every generation, +like a single person, has opinions of its own, as much so in politics as +anything else," and that 'the opinions of Jefferson and those who were +with him were forgotten.' And Jefferson himself, in his complacent +reflection that even the name of Federalist was "extinguished by the +battle of New Orleans," did not see that the Republican party of the old +school had been snuffed out by the same event. The new democracy, whose +claims to rule were based, not on the policy of peace or restricted +powers, but on the seductive glitter of military glory, was in the +ascendant, and General Jackson was the favorite of the hour. New +combinations became necessary, and Mr. Gallatin was requested to +withdraw from the ticket, and make room for Mr. Clay, whose great +western influence it was hoped would save it from defeat. This he gladly +did in a declaration of October 2, addressed to Martin Van Buren, dated +at his Fayette home, and published in the "National Intelligencer." The +result of the election was singular. Calhoun was elected vice-president +by the people. The presidential contest was decided in the House, Adams +being chosen over Jackson and Crawford, by the influence of Clay. Mr. +Gallatin quickly discerned in the failure of the people to elect a +president the collapse of the Republican party. He considered it as +"fairly defunct." + +Jackson had already announced the startling doctrine that no regard was +to be had to party in the selection of the great officers of government, +which Mr. Gallatin considered as tantamount to a declaration that +principles and opinions were of no importance in its administration. To +lose sight of this principle was to substitute men for measures. +Jackson's idea of party, however, was personal fealty. He engrafted the +_pouvoir personnel_ on the Democratic party as thoroughly as Napoleon +could have done in his place. Moreover, Gallatin considered Jackson's +assumption of power in his collisions with the judiciary at New Orleans +and Pensacola, and his orders to take St. Augustine without the +authority of Congress, as dangerous assaults upon the Constitution of +the country and the liberties of the people, and he dreaded the +substitution of the worship of a military chieftain for the maintenance +of that liberty, the last hope of man. Ten years later he uttered the +same opinion in a conversation with Miss Martineau, and he expressed a +preference for an annual president, a cipher, so that all would be done +by the ministry. But in the impossibility of this plan, he would have +preferred a four years' term without renewal or an extension of six +years; an idea adopted by Davis in his plan of disintegration by +secession. The presidency, Mr. Gallatin thought, was "too much power +for one man; therefore it fills all men's thoughts to the detriment of +better things." + +When Mr. Gallatin visited Washington in 1829, he found a state of +society, political and social, widely at variance with his own +experience. The ways of Federalist and Republican cabinets were +traditions of an irrevocable past. Jackson was political dictator, and +took counsel only from his prejudices. The old simplicity had given way +to elegance and luxury of adornment. The east room of the presidential +mansion was covered with Brussels carpeting. There were silk curtains at +the windows, French mirrors of unusual size, and three splendid English +crystal chandeliers. In the dining-room were a hundred candles and +lamps, and silver plate of every description, and presiding over this +magnificence the strange successors of Washington and his stately dame, +of Madison and his no less elegant wife,--the Tennessee backwoodsman and +Peggy O'Neil. + +When, it is not too soon to ask, in the general reform of civil service, +shall the possibility of such anomalies be entirely removed by +restricting the executive mansion to an executive bureau, and entirely +separating social ceremony from official state, to the final suppression +of back stairs influence and kitchen cabinets? + + + + +CHAPTER X + +SOCIETY--LITERATURE--SCIENCE + + +Mr. Gallatin's land speculations were not profitable. His plan of Swiss +colonization did not result in any pecuniary advantage to himself. His +little patrimony, received in 1786, he invested in a plantation of about +five hundred acres on the Monongahela. Twelve years later, in 1798, he +was neither richer nor poorer than at the time of his investment. The +entire amount of claims which he held with Savary he sold in 1794, +without warranty of title, to Robert Morris, then the great speculator +in western lands, for four thousand dollars, Pennsylvania currency. This +sum, his little farm, and five or six hundred pounds cash were then his +entire fortune. In 1794, the revolution in Switzerland having driven out +numbers of his compatriots, he formed a plan of association consisting +of one hundred and fifty shares of eight hundred dollars each, of which +the Genevans in Philadelphia, Odier, Fazzi, the two Cazenove, Cheriot, +Bourdillon, Duby, Couronne, Badollet, and himself took twenty-five each. +Twenty-five were offered to Americans, which were nearly all taken up, +and one hundred were sent to Geneva, Switzerland, to D'Yvernois and his +friends. The project was to purchase land, and Mr. Gallatin had decided +upon a location in the northeast part of Pennsylvania, or in New York, +on the border. In the summer Gallatin made a journey through New York to +examine lands with the idea of occupation. In July, 1795, he made a +settlement with Mr. Morris, taking his notes for three thousand five +hundred dollars. Balancing his accounts, Mr. Gallatin then found himself +worth seven thousand dollars, in addition to which he had about +twenty-five thousand acres of waste lands and the notes of Mr. Morris. +In 1798 Mr. Morris failed, and, under the harsh operations of the old +law, was sent to jail. Mr. Gallatin never recovered the three thousand +dollars owed to him in the final balance of his real estate operations. + +After Mr. Gallatin left the Treasury he located patents for seventeen +hundred acres of Virginia military lands in the State of Ohio, on +warrants purchased in 1784. In 1815 he valued his entire estate, +exclusive of his farm on the Monongahela, at less than twelve thousand +dollars. Forty years later he complained of his investment as a +troublesome and unproductive property, which had plagued him all his +life. Besides the purchase of lands, Mr. Gallatin invested part of his +little capital in building houses on his farm, and in the country store +which Badollet managed. The one yielded no return, and the sum put in +the other was lost through the incompetency of his honest but +inexperienced friend. His wife brought him a small property, but at no +time in his life was he possessed of more than a modest competency. But +he had never any discontent with his fortune nor any desire to be rich. + +Mrs. Gallatin, who had always until her marriage lived in cities, was +entirely unfit for frontier life. In these days of railroads it is not +easy to measure the isolation of their country home. Pittsburgh was +nearly five days' journey from Philadelphia, and the crossing of the +Alleghanies took a day and a half more. Before his marriage Mr. Gallatin +had seen very little of society. Though in early manhood he felt no +embarrassment among men, he said 'that he never yet was able to divest +himself of an anti-Chesterfieldian awkwardness in mixed companies.' He +did not take advantage of his residence in Philadelphia to accustom +himself to the ways of the world. There he lived in lodgings and met the +leading public characters of both parties. But when he took his seat in +the cabinet, he found it necessary to enter upon housekeeping and to +take a prominent part in society, for which his wife was admirably +suited, both by temperament and education. Washington Irving wrote of +her in November, 1812, that she was 'the most stylish woman in the +drawing-room that session, and that she dressed with more splendor than +any other of the noblesse;' and again the same year compared her with +the wife of the President, whose courtly manners and consummate tact +and grace are a tradition of the republican court. "Tell your good +lady," mother Irving wrote to James Renwick, "that Mrs. Madison has been +much indisposed, and at last Wednesday's evening drawing-room Mrs. +Gallatin presided in her place. I was not present, but those who were +assure me that she filled Mrs. Madison's chair to a miracle." This is in +the sense of dignity, for Mrs. Gallatin was of small stature. + +Mr. Gallatin's house shared the fate of the public buildings and was +burned by the British when Washington was captured in 1814. He was then +abroad on the peace mission. On his return from France Mr. Gallatin made +one more attempt to realize his early idea of a country home, and with +his family went in the summer of 1823 to Friendship Hill. Here an Irish +carpenter built for him a house which he humorously described as being +in the 'Hyberno-teutonic style,--the outside, with its port-hole-looking +windows, having the appearance of Irish barracks, while the inside +ornaments were similar to those of a Dutch tavern, and in singular +contrast to the French marble chimney-pieces, paper, mirrors, and +billiard-table.' In the summer Friendship Hill was an agreeable +residence, but Mr. Gallatin found it in winter too isolated even for his +taste. + +One exciting circumstance enlivened the spring of 1825. This was the +passage of Lafayette, the guest of the nation, through western +Pennsylvania on his famous tour. Mr. Gallatin welcomed him in an +address before the court-house of Uniontown, the capital of Fayette +County, on May 26. In his speech Mr. Gallatin reviewed the condition of +the liberal cause in Europe, and the emancipation of Greece, then +agitating both continents. In this all scholars as well as all liberals +were of one mind and heart. After the proceedings Lafayette drove with +Mr. Gallatin to Friendship Hill, where he passed the night; crowds of +people pouring down the valley from the mountain roads to see the +adopted son of the United States, the friend of Washington, the +liberator of France. The intimacy between these two great men, who had +alike devoted the flower of their youth to the interests of civilization +and the foundation of the new republic, was never broken. + +Mr. Gallatin passed only one winter at New Geneva. On his return from +his last mission to England he settled permanently in New York, and in +1828 took a house at No. 113 Bleecker Street, then in the suburbs of the +city. He wrote to Badollet in March, 1829, that "it was an ill-contrived +plan to think that the banks of the Monongahela, where he was perfectly +satisfied to live and die in retirement, could be borne by the female +part of his family, or by children brought up at Washington and Paris." +The population of New York has always been migratory, and Mr. Gallatin +was no exception to the rule. In the ten years which followed his first +location he changed his residence on four May days, finally settling at +No. 57 Bleecker Street, nearly opposite to Crosby Street. His life in +New York is a complete period in his intellectual as in his physical +existence, and the most interesting of his career. His last twenty years +were in great measure devoted to scientific studies. + +The National Bank, over which he presided for the first ten years, took +but a small part of his time. The remainder was given up to study and +conversation, an art in which he had no superior in this country and +probably none abroad. Soon after his arrival in New York, Mr. Gallatin +was chosen a member of "The Club," an association famous in its day. As +no correct account of this social organization has ever appeared, the +letter of invitation to Mr. Gallatin is of some interest. It was written +by Dr. John Augustine Smith, on November 2, 1829. An extract gives the +origin of the club. + + "Nearly two years ago some of the literary gentlemen of the city, + feeling severely the almost total want of intercourse among + themselves, determined to establish an association which should + bring them more frequently into contact. Accordingly they founded + the 'Club' as it is commonly called, and which I believe I + mentioned to you when I had the pleasure of seeing you in Bond + Street. Into this 'Club' twelve persons only are admitted, and + there are at present three gentlemen of the Bar, Chancellor Kent, + Messrs. Johnston and Jay, three professors of Columbia College, + Messrs. McVickar, Moore, and Renwick, the Rev. Drs. Wainwright and + Mathews, the former of the Episcopal Church, the latter of the + Presbyterian Church, two merchants, Messrs. Brevoort and Goodhue, + and I have the honor to represent the medical faculty. Our twelfth + associate was Mr. Morse, of the National Academy of Design, of + which he was president, and his departure for Europe has caused a + vacancy. For agreeableness of conversation there is nothing in New + York at all comparable to our institution. We meet once a week; no + officers, no formalities; invitations, when in case of intelligent + and distinguished strangers, and after a plain and light repast, + retire about eleven o'clock." + +At this club Mr. Gallatin, with his wonderful conversational powers, +became at once the centre of interest. The club met at the houses of +members in the winter evenings. There was always a supper, but the rule +was absolute that there should be only one hot dish served, a regulation +which the ladies endeavored to evade when the turn of their husbands +arrived to supply the feast. Among the later members were Professor +Anderson, John A. Stevens, Mr. Gallatin's countryman De Rham, John +Wells, Samuel Ward, Gulian C. Verplanck, and Charles King. No literary +symposium in America was ever more delightful, more instructive, than +these meetings. On these occasions Mr. Gallatin led the conversation, +which usually covered a wide field. His memory was marvelous, and his +personal acquaintance with the great men who were developed by the +French Revolution, emperors and princes, heroes, statesmen, and men of +science, gave to the easy flow of his speech the zest of anecdote and +the spice of epigram. Once heard he was never forgotten. And this rare +faculty he preserved undiminished to the close of his life. Washington +Irving, himself the most genial of men, and the most graceful of +talkers, wrote of him, after meeting him at dinner, in 1841: "Mr. +Gallatin was in fine spirits and full of conversation. He is upwards of +eighty, yet has all the activity and clearness of mind and gayety of +spirits of a young man. How delightful it is to see such intellectual +and joyous old age: to see life running out clear and sparkling to the +last drop! With such a blessed temperament one would be content to +linger and spin out the last thread of existence." + +At the close of the year 1829 Mr. Gallatin attempted to carry out his +old and favorite plan of the "establishment of a general system of +rational and practical education fitted for all, and gratuitously open +to all." The want of an institution for education, combining the +advantages of a European university with the recent improvements in +instruction, was seriously felt. New York, already a great city, and +rapidly growing, offered the most promising field for the national +university on a broad and liberal foundation correspondent to the spirit +of the age. The difficulty of obtaining competent teachers of even the +lower branches of knowledge in the public schools, the system of which +was in its infancy, was great. Persons could be found with learning +enough, but they were generally deficient in the art of teaching. +Governor Throop noticed this deficiency in his message of January, 1830, +without, however, the recommendation of any remedy by legislation. The +existing colleges could not supply the want. At this period religious +prejudice controlled the actions of men in every walk of life; for the +old colonial jealousies of Episcopalian and Presbyterian survived the +Revolution. The religious distrust of scientific investigation was also +at its height. Columbia College, the successor of old King's College, +was governed in the Episcopalian interest. Private zeal could alone be +relied upon to establish the new enterprise on a foundation free from +the influence of clergy; an indispensable condition of success. These +were the views of Mr. Jefferson in 1807. These were the views of Mr. +Gallatin. In response to his request abundant subscriptions in money and +material were at once forthcoming. + +The project of a national university at New York was received by the +literary institutions of the United States with great enthusiasm. In +October, 1830, a convention of more than a hundred literary and +scientific gentlemen, delegates from different parts of the country, and +of the highest distinction, was held in the common-council chamber. The +outcome of their deliberations was the foundation of the New York +University. Mr. Gallatin was the president of the first council, but +his connection with the institution was of short continuance. The +reasons for his withdrawal were set forth in a letter to his old friend, +John Badollet, written February 7, 1833. Beginning with an expression of +his desire to devote what remained of his life "to the establishment in +this immense and growing city (New York) of a general system of rational +and practical education fitted for all and gratuitously opened to all," +he said, "but finding that the object was no longer the same, that a +certain portion of the clergy had obtained the control, and that their +object, though laudable, was special and quite distinct from mine, I +resigned at the end of one year rather than to struggle, probably in +vain for what was nearly unattainable." The history of the university +through its precarious existence of half a century amply justifies Mr. +Gallatin's previsions and retirement. Instead of an American Sorbonne, +of which he dreamed, it has never been more than a local institution, +struggling to hold a place in a crowded field. + +Mr. Gallatin followed the evolutions of French politics with interest. +His friend Lafayette, who, during the Empire, lived in almost enforced +retirement at his estate of La Grange, was a voluntary exile from the +court of Charles X., whose autocratic principles and aggressive course +were rapidly driving France into fresh revolution. In July, 1830, the +crisis was precipitated by the royal decrees published in the +"Moniteur." Lafayette, who was on his estate, hurried instantly to +Paris, where he became a rallying point, and himself signed the note to +the king, announcing that he had ceased to reign. In September following +it fell to him to write to Mr. Gallatin on the occasion of the marriage +of Gallatin's daughter. In this union Lafayette had a triple interest. +Besides his personal attachment for Mr. Gallatin, each of the young +couple was descended from one of his old companions-in-arms. The groom, +Mr. Byam Kerby Stevens, was a son of Colonel Ebenezer Stevens, of the +continental service, who was Lafayette's chief of artillery in his +expedition against Arnold in Virginia, in the spring of 1781; the bride, +Frances Gallatin, was, on the mother's side, the granddaughter of +Commodore James Nicholson, who commanded the gunboats which, improvised +by Colonel Stevens, drove out the British vessels from Annapolis Bay and +opened the route to the blockaded American flotilla.[22] + + "PARIS, _September_ 8, 1830. + + "MY DEAR FRIEND:--A long time has elapsed since I had the pleasure + to hear from you. I need not, I hope, add, that my affectionate + feelings have been continually with you, especially in what related + to my young friend whose change of name has more deeply interested + every member, and in a very particular manner, the younger part of + the family. Let me hear of you all, and receive my tender regards + and wishes, with those of my children and grandchildren. + LAFAYETTE." + +Both of the young people had the honor of Lafayette's acquaintance,--Mr. +Stevens during a visit to Paris, and Miss Gallatin during her father's +residence there as minister, when she was much admired, and was, in the +words of Madame Bonaparte (Miss Patterson), 'a beauty.' In this letter +Lafayette gives a picturesque account of the three days' fighting at the +barricades, and of the departure of the ex-king and the royal army, +accompanied by "some twenty thousand Parisians, in coaches, hacks, and +omnibus.... The royal party, after returning the jewels of the crown, +went slowly to Cherbourg with their own escort, under the protection of +three commissioners, and were there permitted quietly to embark for +England." + +In 1834 Mr. Gallatin's sympathies were greatly excited by the arrival at +New York of a number of Poles, many of them educated men, and among them +Etsko, a nephew of Kosciusko. A public committee was raised, called the +Polish committee, of which Mr. Gallatin was chosen chairman. Besides +superintending the collection of funds, he arranged and carried out in +the minutest details a plan to quarter the exiles upon the inhabitants. +A list of names ending in _ski_ still remains among his papers; to each +was assigned a number, and they were allotted by streets and +numbers,--number 182, one Szelesegynski, was taken by Mr. Gallatin +himself, to look after horses. These unfortunate men were then +distributed through the country, as occupations could be found. In +October Mr. Gallatin's notes show that all had been provided for except +fourteen boys, for whom a subscription was taken up. A tract of land in +Illinois was assigned by Congress to these political exiles. + +Mr. Gallatin's first acquaintance with the American Indian was made at +Machias. In the neighborhood of this frontier town, across the Canadian +border, there were still remnants of the Abenaki and Etchemin tribes. +They were French in sympathy, and all converts to the Roman Catholic +faith. Mr. Lesdernier, with whom Gallatin lodged, had influence over +them from the trade he established with them in furs, and as their +religious purveyor. He had paid a visit to Boston at the time the French +fleet was there in 1781, and brought home a Capuchin priest for their +service. To the young Genevan, brought up in the restrictions of +European civilization, the history of the savage was a favorite study. +In the winter evenings, in the quiet of the log hut, with the aid of one +familiar with the customs and traditions of the race, the foundations +were laid of a permanent interest in this almost untrodden branch of +human science. The Canadian Indians, however, hemmed in by French and +English settlements, were semi-civilized. The Miamis and Shawnees, who +ranged the valley of the Ohio, were the tribes nearest to Gallatin's +home on the Monongahela. These, though for a long time under the +influence of the French, retained their original wildness, and were, +during the first years of his residence, the dread of the frontier. + +The interest aroused in the mind of Mr. Gallatin by personal observation +was quickened by his intimacy with Jefferson, whose "Notes on Virginia," +published in 1801, contained the first attempt at a classification and +enumeration of American tribes. The earlier work of Colden was confined +to the Five Nations of the Iroquois Confederacy. The arrangement of the +Louisiana territory, ceded by France, brought Mr. Gallatin into contact +with Pierre Louis Chouteau, and an intimacy formed with John Jacob +Astor, who was largely concerned in the fur trade of the Northwest, +widened the field of interest, which included the geography of the +interior and the customs of its inhabitants. Mr. Gallatin's examination +of the subject was general, however, and did not take a practical +scientific turn until the year 1823, when, at the request of Baron +Alexander von Humboldt, he set forth the results of his studies in the +form of a Synopsis of the Indian tribes. This essay, communicated by +Humboldt to the Italian geographer Balbi, then engaged upon his "Atlas +Ethnographique du Globe,"--a classification by languages of ancient and +modern peoples,--was quoted by him in his volume introductory to that +remarkable work published in 1826, in a manner to attract the attention +of the scientific world. Vater, in his "Mithridates," first attempted a +classification of the languages of the globe, but the work of Mr. +Gallatin, though confined in subject, was original in its conception and +treatment. In the winter of 1825-26 a large gathering of southern +Indians at Washington enabled him to obtain good vocabularies of several +of the tribes. Uniting these to those already acquired, he published a +table of all the existing tribes, and at the same time, at his instance, +the War Department circulated through its posts a vocabulary containing +six hundred words of verbal forms and of selected sentences, and a +series of grammatical queries, to which answers were invited. He also +opened an elaborate correspondence with such persons as were best +acquainted with the Indian tribes in different sections of the +country.[23] The replies to these various queries were few in number, +but the practical plan, adhered to in substance, has resulted in the +collection by the Smithsonian Institution of a very large number of +Indian vocabularies.[24] + +This class of investigation, in its ample scope for original research +and the ascertainment of principles by analysis and analogic expression, +was peculiarly agreeable to Mr. Gallatin. His friend, du Ponceau,[25] +who served in the American war as the secretary of Steuben, and was now +established in Philadelphia, was likewise deeply engaged in philologic +studies; in 1819 he had published a memoir of the construction of the +languages of the North American Indians, which he followed later with +other papers of a similar nature, among which were a "Grammar of the +Languages of the Lenni Lenape or Delaware Indians," and a memoir on the +grammatical system of the languages of the Indian tribes of North +America, a learned and highly instructive paper, which took the Volney +prize at Paris. + +In 1836 Mr. Gallatin's original paper, contributed to Balbi, amplified +by subsequent acquisitions, was published by the American Antiquarian +Society of Worcester, in the first volume of its Transactions. It was +entitled "A Synopsis of the Indian Tribes, within the United States east +of the Rocky Mountains, and in the British and Russian Possessions in +North America." This elaborate inquiry, the foundation of the science in +America, was intended originally to embrace all the tribes north of the +Mexican semi-civilized nations. From the want of material, however, it +was confined at the southward to the territory of the United States, and +eastward of the Rocky Mountains. It included eighty-one tribes, divided +into twenty-eight families, and was accompanied by a colored map, with +tribal indications. The result of the investigation Mr. Gallatin held to +be proof that all the languages, not only of our own Indian tribes, but +of the nations inhabiting America from the Arctic Ocean to Cape Horn, +have a distinct character common to all. This paper attracted great +attention in Europe. It was reviewed by the Count de Circourt, whose +interest in the subject was heightened by personal acquaintance with the +author. John C. Calhoun, acknowledging receipt of a copy of the +Synopsis, said in striking phrase 'that he had long thought that the +analogy of languages is destined to recover much of the lost history of +nations just as geology has of the globe we inhabit.' + +In 1838, Congress having accepted the trust of John Smithson of +L100,000, and pledged the faith of the United States for its purposes, +Mr. Forsyth, the secretary of state, addressed Mr. Gallatin, at the +request of the President, requesting his views as to its proper +employment; but Mr. Gallatin does not appear to have answered the +communication. The programme of the Smithsonian Institution, inclosed to +the board of regents in its first report, stated its object to be the +increase and diffusion of knowledge, and bears marks of the general +views which Mr. Gallatin had for many years urged on public attention. +The first of the Smithsonian "Contributions to Knowledge" was the memoir +of Ancient Monuments of the Mississippi Valley, by Squier and Davis. +Before its publication was undertaken, however, it was submitted to the +Ethnological Society. Mr. Gallatin returned it, with the approval of the +society, and some words of commendation of his own addressed to +Professor Henry, the learned superintendent of the Smithsonian +Institution. + +The period of temporary political repose, which followed the peace of +Vienna and the establishment of the balance of power by the allied +sovereigns, was an era in human knowledge. Science made rapid progress, +and in its turn showed the broad and liberal influence of the great +revolution. In 1842 societies were founded in Paris and London to +promote the study of ethnology. Mr. Gallatin would not be behindhand in +this important work for which America offered a virgin field. Drawing +about him a number of gentlemen of similar tastes with his own, he +founded in New York, in 1842, the American Ethnological Society. Among +his associates were Dr. Robinson, the famous explorer of Palestine, +Schoolcraft, Bartlett, and Professor Turner, noted for their researches +in the history and languages of the Indian races. Messrs. Atwater, +Bradford, Hawks, Gibbs, Mayer, Dr. Morton, Pickering, Stephens, Ewbank, +and Squier were also, either in the beginning or soon after, members of +this select and learned institution, of which Mr. Gallatin was the +central figure. One of its members said in 1871, 'Mr. Gallatin's house +was the true seat of the society, and Mr. Gallatin himself its +controlling spirit. His name gave it character, and from his purse +mainly was defrayed the cost of the two volumes of the "Transactions" +which constitute about the only claim the society possesses to the +respect of the scientific world.' To the first of these volumes, +published in 1845, Mr. Gallatin contributed an "Essay on the +semi-civilized nations of Mexico and Central America, embracing +elaborate notes on their languages, numeration, calendars, history, and +chronology, and an inquiry into the probable origin of their +semi-civilization." In this he included all existing certain knowledge +of the languages, history, astronomy, and progress in art of these +peoples. A copy of this work he sent to General Scott, then in the city +of Mexico after his triumphant campaign, inclosing a memorandum which he +urged the general to hand to civilians attached to the army. This was a +request to purchase books, copies of documents, printed grammars, and +vocabularies of the Mexican languages, and he authorized the general to +spend four hundred dollars in this purpose on his account. In the second +volume, published in 1848, he printed the result of his continued +investigations on the subject which first interested him, as an +introduction to a republication of a work by Mr. Hale on the "Indians of +Northwest America." This consisted of geographical notices, an account +of Indian means of subsistence, the ancient semi-civilization of the +Northwest, Indian philology, and analogic comparisons with the Chinese +and Polynesian languages. These papers Mr. Gallatin modestly described +to Chevalier as the 'fruits of his leisure,' and to Sismondi he wrote +that he had not the requisite talent for success in literature or +science. They nevertheless entitle him to the honorable name of the +Father of American Ethnography. + +In 1837 Mr. Wheaton, the American minister at Berlin, requested Mr. +Gallatin to put the Baron von Humboldt in possession of authentic data +concerning the production of gold in the United States. Humboldt had +visited the Oural and Siberian regions in 1829, at the request of the +Emperor of Russia, to make investigations as to their production of the +precious metals. Mr. Gallatin was the only authority in the United +States on the subject. Later von Humboldt wrote to Mr. Gallatin of the +interest felt abroad, and by himself, in the gold of the mountains of +Virginia and Tennessee, a country which rivaled on a small scale the +Dorado of Siberia. The treasures of the Pacific coast were not yet +dreamed of. + +Mr. Gallatin perfectly understood the range of his own powers. He said +of himself:-- + + "If I have met with any success, either in public bodies, as an + executive officer, or in foreign negotiations, it has been + exclusively through a patient and most thorough investigation of + all the attainable facts, and a cautious application of these to + the questions under discussion.... Long habit has given me great + facility in collating, digesting, and extracting complex documents, + but I am not hasty in drawing inferences; the arrangement of the + facts and arguments is always to me a considerable labor, and + though aiming at nothing more than perspicuity and brevity, I am a + very slow writer." + +Mr. Gallatin's manuscripts and drafts show long and minute labor in +their well considered and abundant alterations. Referring on one +occasion to his habit of reasoning, Mr. Gallatin remarked, that of all +processes that of analogy is the most dangerous, yet that which he +habitually used; that it required the greatest possible number of facts. +This is the foundation of philology, and his understanding of its method +and its dangers is the reason of his success in this branch of science. + +The difficulty experienced in establishing any literary or scientific +institutions in New York was very great. An effort made in 1830, which +Mr. Gallatin favored, to establish a literary periodical failed, not on +account of the pecuniary difficulties, but from the impossibility of +uniting a sufficient number of able cooeperators. But Mr. Gallatin's +interest in literature was not as great as in science.[26] + +In 1841 a national institution for the promotion of science was +organized at Washington. The cooeperation of Mr. Gallatin was invited, +but the society had a short existence. In 1843 Mr. Gallatin was chosen +president of the New York Historical Society. His inaugural address is +an epitome of political wisdom. Pronounced at any crisis of our history, +it would have become a text for the student. In this sketch he analyzed +the causes which contributed to form our national character and to +establish a government founded on justice and on equal rights. He showed +how, united by a common and imminent danger, the thirteen States +succeeded in asserting and obtaining independence without the aid of a +central and efficient government, and the difficulties which were +encountered when a voluntary surrender of a part of their immense +sovereignty became necessary as a condition of national existence. He +said that the doctrine that all powers should emanate from the people is +not a question of expediency. + +In this address he summed up the reasons why Washington exercised such a +beneficial influence upon the destinies of his country. In a +confidential letter to his wife in 1797, he expressed an opinion that +the father of his country was not a good-natured and amiable man, but +time had mellowed these recollections and softened the asperity of this +judgment. Washington had not, he said (in 1843), 'an extraordinary +amount of acquired knowledge; he was neither a classical scholar nor a +man of science, nor was he endowed with the powers of eloquence, nor +with other qualities more strong than solid, which might be mentioned; +but he had a profound and almost innate sense of justice, on all public +occasions a perfect control of his strong passions,[27] above all a most +complete and extraordinary self-abnegation. Personal consequences and +considerations were not even thought of, they never crossed his mind, +they were altogether obliterated.' Mr. Gallatin held that "the Americans +had a right to be proud of Washington, because he was selected and +maintained during his whole career by the people--never could he have +been thus chosen and constantly supported had he not been the type and +representative of the American people." + +The commemoration of the fortieth anniversary of the foundation of the +New York Historical Society, November, 1844, was an occasion of unusual +interest. John Romeyn Brodhead, who had just returned from the Hague +with the treasures of New Netherland history gathered during his +mission, was the orator of the day. The venerable John Quincy Adams, Mr. +Gallatin's old associate at Ghent, was present. After the address, which +was delivered at the Church of the Messiah on Broadway, the society and +its guests crossed the street to the New York Hotel, where a banquet +awaited them. Mr. Gallatin retired early, leaving the chair to the first +vice-president, Mr. Wm. Beach Lawrence. After he had left the room, Mr. +Adams, speaking to a toast to the archaeologists of America, said: "Mr. +Gallatin, in sending to me the invitations of the society, added the +expression of his desire 'to shake hands with me once more in this +world.'" Mr. Adams could not but respond to his request. In his remarks +he said: + + "I have lived long, sir, in this world, and I have been connected + with all sorts of men, of all sects and descriptions. I have been + in the public service for a great part of my life, and filled + various offices of trust, in conjunction with that venerable + gentleman, Albert Gallatin. I have known him half a century. In + many things we differed; on many questions of public interest and + policy we were divided, and in the history of parties in this + country there is no man from whom I have so widely differed as from + him. But in other things we have harmonized; and now there is no + man with whom I more thoroughly agree on all points than I do with + him. But one word more let me say, before I leave you and him, + birds of passage as we are, bound to a warmer and more congenial + clime,--that among all public men with whom I have been associated + in the course of my political life, whether agreeing or differing + in opinion from him, I have always found him to be an honest and + honorable man." + +In the road to harmony Mr. Adams had to do the traveling. Mr. Gallatin +never changed his political opinions. The political career of the two +men offered this singular contrast: Adams, dissatisfied with his party, +passed into opposition; Gallatin, though at variance with the policy of +the administration of which he made a part, held his fealty, and +confined himself to the operations of his own bureau. + +For a period far beyond the allotted years of man Mr. Gallatin retained +the elasticity of his physical nature as well as his mental +perspicacity. In middle age he was slight of figure, his height about +five feet ten inches, his form compact and of nervous vigor. His +complexion was Italian;[28] his expression keen; his nose long, +prominent; his mouth small, fine cut, and mobile; his eyes hazel, and +penetrative; his skull a model for the sculptor. Thus he appears in the +portrait painted by Gilbert Stuart about the time that he took charge of +the Treasury Department; he was then about forty years of age. In the +fine portrait by William H. Powell, taken from life in 1843, and +preserved in the gallery of the New York Historical Society, these +characteristics appear in stronger outline. Monsieur de Bacourt,[29] the +literary executor of Talleyrand, who was the French Ambassador to the +United States in 1840, paid a visit to Mr. Gallatin in that year, and +describes him as a "beau vieillard de quatre-vingt ans," who has fully +preserved his faculties. Bacourt alludes to his remarkable face, with +its clear, fine cut features, and his "physiognomie pleine de finesse;" +and dwells also upon the ease and charm of his conversation. + +As his life slowly drew to its close, one after another of the few of +his old friends who remained dropped from the road. Early in 1848 Adams +fell in harness, on the floor of the House of Representatives; Lord +Ashburton died in May. Finally, nearest, dearest of all, the companion +of his triumphs and disappointments, the sharer of his honors and his +joys, his wife, was taken from him by the relentless hand. The summer of +1849 found him crushed by this last affliction, and awaiting his own +summons of release. He was taken to Mount Bonaparte, the country-seat of +his son-in-law, at Astoria on Long Island, where he died in his +daughter's arms on Sunday, August 12, 1849. The funeral services were +held in Trinity Church on the Tuesday following, and his body was laid +to rest in the Nicholson vault,[30] in the old graveyard adjoining. The +elegant monument erected during his lifetime is one of the attractive +features of this venerable cemetery, in whose dust mingle the remains of +the temple of no more elevated spirit than his own. The season was a +terrible one--the cholera was raging, the city was deserted. In the +general calamity private sorrow disappeared, or the occasion would have +been marked by a demonstration of public grief and of public honor. As +the tidings went from city to city, and country to country, the friends +of science, of that universal wisdom which knows neither language nor +race, paused in their investigations to pay respectful homage to his +character, his intellect, and to that without which either or both in +combination are inadequate to success--his labor in the field. + +On October 2, 1849, at the first meeting of the Historical Society +after the death of Mr. Gallatin, Mr. Luther Bradish, the presiding +officer, spoke of him in impressive words, as the last link connecting +the present with the past. He dwelt upon the peculiar pleasure with +which the presence of Mr. Gallatin was always hailed, and the peculiar +interest it gave to the proceedings of the society, and many an eye was +dimmed, as he recalled the venerable form, the beautifully classic head, +the countenance ever beaming with intelligence, and summed up the long +and useful career of the departed sage in these impressive words:-- + + "The name of Albert Gallatin is emphatically a name of history. Few + men have lived in any age whose biographies have been so intimately + connected with the history of their country. Living in one of the + most interesting periods of the world, a period of great events, of + the discussion of great principles and the settlement of great + interests, almost the whole of his long and active life was passed + in public service amidst those events and in those discussions.... + For nearly half a century he was almost constantly employed in the + public service; almost every department of that service has + received the benefit of his extraordinary talents and his varied + and extensive and accurate knowledge. Whether in legislation, in + finance, or in diplomacy, he has been equally distinguished in all. + In all or in either he has had few equals and still fewer + superiors." + +To Jeremy Bentham Mr. Gallatin acknowledged himself indebted, as his +master in the art of legislation; but from whatever ground he drew his +maxims of government, they were reduced to harmony in the crucible of +his own intelligence by the processes of that brain which Spurzheim +pronounced capital,[31] and Dumont held to be the best head in America. +In that massive and profound structure lay faculties of organization and +administration which mark the Latin and Italian mind in its highest form +of intellectual development. + +His moral excellence was no less conspicuous than his intellectual +power. He had a profound sense of justice, a love of liberty, and an +unfaltering belief in the capacity of the human race for self-rule. +Versed in the learning of centuries, and familiar with every experiment +of government, he was full of the liberal spirit of his age. To a higher +degree than any American, native or foreign born, unless Franklin, with +whose broad nature he had many traits in common, Albert Gallatin +deserves the proud title, aimed at by many, reached by few, of Citizen +of the World. + +FOOTNOTES: + +[Footnote 22: An account of this expedition may be found in the +publications of the Maryland Historical Society.] + +[Footnote 23: + +WASHINGTON, 29_th May_, 1826. + +SIR,--Mr. Stewart communicated to me your answer of 4th April last to +the letter which, at my request, he had addressed to you; and I return +you my thanks for your kind offer to forward the object in view,--one +which is not, however, of a private nature but connected with what is +intended to be a National work; and I have delayed writing in order to +be able to send at the same time the papers herewith transmitted. + +It is at my suggestion that the Secretary of War has, with the +approbation of the President, taken measures to collect comparative +vocabularies of all the languages and dialects of the Indian tribes +still existing within the United States. The circular is addressed to +all the Indian superintendents and agents, and to the missionaries with +whom the Department corresponds. But they have no agent with the +Nottoways, and we are fortunate that you should have been disposed to +lend your aid on this occasion. + +It is the intention of government that the result of these researches +should be published, giving due credit to every individual who shall +have assisted in a work that has been long expected from us, and which +will be equally honorable to the persons concerned and to the country. +It had been my intention to contribute my share in its further progress: +this my approaching departure for Europe forbids. The inclosed papers, +attending to the Notes and to the circular, are so full that I need not +add any further explanation, and have only to request that you will have +the goodness to transmit whatever vocabulary and other information you +may obtain to Colonel Tho. L. McKinney, Office of Indian Affairs, under +cover directed to the Secretary of War. Mr. McKinney will also be happy +to answer any queries on the subject you may have to propose. + +I have the honor to be respectfully, sir, +Your most obedient servant, +ALBERT GALLATIN + +Mr. James Rochelle, +Jerusalem, Southampton County, Virginia. +_Communicated by J. H. Rochelle, Jerusalem, Virginia._] + +[Footnote 24: Among the most distinguished of those who have followed +the pathway indicated by Mr. Gallatin was the late George Gibbs, an +indefatigable student and an admirable ethnologist. His Chinook jargon +was published by the Smithsonian Institution.] + +[Footnote 25: Mr. du Ponceau became president of the learned societies +of Pennsylvania: the Historical Society and the American Philosophical +Society.] + +[Footnote 26: His favorite novel was _The Antiquary_, which he read once +a year. Novels, he said, should be read, the last chapter first, in +order that appreciation of the style should not be lost in the interest +excited by the story.] + +[Footnote 27: Mr. Gallatin's assertion, which corresponded with that of +Jefferson, that Washington had naturally strong passions, but had +attained complete mastery over them, is quoted by the Earl of Stanhope +(Lord Mahon) in his famous eulogy of Washington's attributes.] + +[Footnote 28: The Gallatins claim to descend from one Callatinus, a +Roman Consul.] + +[Footnote 29: _Souvenirs d'un Diplomate._ Paris, 1882.] + +[Footnote 30: This was the vault of the Witter family, a daughter of +which Commodore Nicholson married.] + +[Footnote 31: "In my youth the fashion was to decide in conformity +with Lavater's precepts; then came Camper's facial angle, which gave a +decided superiority to the white man and monkey; and both have been +superseded by the bumps of the skull. This criterion is that which suits +me best, for Spurzheim declared I had a _capital_ head, which he might +without flattery say to everybody." _Gallatin to Lewis T. Cist of +Cincinnati, November_ 21, 1837.] + + + + +INDEX + + +Adams, Henry, calls treaty of Ghent the work of Gallatin, 324. + +Adams, John, announces election of Gallatin as senator, 60; + convenes Congress to consider relations with France, 132; + his message, 133; replies coolly to resolution of House, 136, 137; + remarks of McClanachan to, 138; + his message in 1797, 139; + visited by House to present answer, 140; + wishes to establish new foreign missions, 141; + informs Congress of French outrages, 147; + and of preparations for war, 147; + sends in X Y Z dispatches, 149; + sends message on French relations, 152, 153; + urges preparation for war, 155; + thanks House for support, 155; + delighted with support of Congress in 1799, 158; + congratulates Congress on settlement at Washington, 162; + supported for President by New England, 163; + in election of 1800, 165; + attributes distresses of Confederation to financial ignorance, 174; + his breach with Hamilton, 177. + +Adams, John Quincy, on results of Gallatin's proposed appointment as + secretary of state, 295; + meets Gallatin and Bayard at St. Petersburg, 302; + his training, comparison with Gallatin, 302, 303; + given new commission, 312; + differs with Clay over fisheries and Mississippi navigation, 323; + appointed minister to England, 326; + advised by Gallatin concerning commercial treaty, 333; + appointed secretary of state, 334; + informed by Gallatin of disadvantages of a war with Spain, 336, 337; + his arguments in Apollon case disregarded by Gallatin, 338; + his indignation, 338; + writes opinion of Gallatin in his diary, 333, 339; + described by Gallatin to Badollet, 339, 356; + his pugnacity complained of by Crawford, 339; + negotiates treaty with De Neuville, 340; + comments of Gallatin upon, 340; + appoints Rush secretary of treasury, 342; + offers mission to England to Gallatin, 342, 343; + promises Gallatin _carte blanche_, but gives him full instructions, 343; + his instructions to Rush printed, 345; + warns Gallatin to yield nothing, 346; + congratulates Gallatin on his success, 348; + candidate for presidency, 356; + elected by House of Representatives, 358; + at meeting of New York Historical Society, 384; + Gallatin's friendly greeting to, 384; + eulogizes Gallatin, 384, 385; + his changing party compared with Gallatin's steadiness, 385; + death, 386. + +Adams, William, on English peace commission, 316. + +Addington, Henry, on Clay's tone as diplomat, 345. + +Adet, P. A., French minister, imperils sympathy for France by impudence + to Washington, 128; + condemned by Federalists, 134; + recommends tricolor, 153. + +Aix-la-Chapelle, Congress of, 337. + +Alexander, Emperor of Russia, authorizes renewal of mediation, 308; + fails to inform Romanzoff of Castlereagh's refusal, 311, 312; + vain efforts of Crawford to secure interview with, 315; + promises Lafayette to use influence in behalf of United States, 315; + has interview with Gallatin, 315; + informs Gallatin that he can do nothing more, 316. + +Algiers, treaty with, 117, 118. + +Alien Bill, debate and passage in House, 152; + petitions against, in Congress, 157. + +Allegheny County, its part in Whiskey Insurrection, 49, 68, 78, 96; + elects Gallatin to Congress, 93, 127. + +Allegre, Sophie, marries Gallatin, her character and death, 30. + +Allegre, William, father-in-law of Gallatin, 30. + +Allen, ----, in debate on French relations, 136; + attacks Gallatin as a French agent, 150. + +Allston, Joseph W., at free trade convention, 1831, 241. + +American Ethnological Society, founded by Gallatin, 379; + its transactions, 379, 380. + +Ames, Fisher, leading orator of Federalists, 99; + his speech on the Jay treaty, 120, 121; + reports answer to President's Message, 128; + defends it against Giles, 129; + leaves Congress, his oratory, 133. + +Anderson, Professor, member of "The Club," 367. + +Anti-Federalists, call convention to organize in favor of amending + Constitution, 37; + adopt resolutions to organize throughout the State, 39, 40; + recommend amendments by petition, 40. + +Apollon, seizure of, explained by Gallatin and Adams, 338. + +Army, reduction of, advocated by Gallatin, 108, 123, 129, 130, 186, 188; + his course defended, 216. + +Arnold, Benedict, effect of his treason, 12; + campaign of Lafayette against, 371. + +Ashburton, Lord. See Baring, Alexander. + +Astor, John Jacob, assists Gallatin to float loan, 214; + wishes destruction of United States Bank, 259; + subscribes capital of bank on condition that Gallatin manage its + affairs, 269; + his fur enterprise, 287; + offered protection by Jefferson, 288; + his settlement at Astoria, 288; + unable to persuade Madison to support him, 288. + +Astoria, foundation and history of, 288. + +Atwater, ----, member of Ethnological Society, 379. + + +Bache, Franklin, educated at Geneva, 4; + attacks Washington as a defaulter, in "Aurora," 104. + +Bache, Richard, letter to, furnished by Franklin to Gallatin, 11. + +Bacourt, M. de, describes Gallatin in old age, 386. + +Badollet, Jean, college friend of Gallatin, 5; + Arcadian schemes of, 9; + letter of Gallatin to, 9; + letters of Serre to, on life in Maine, 15, 25; + informs Gallatin of troubles in Geneva, 25; + at Gallatin's invitation, joins him in America, 25, 26; + established at Greensburg, 27; + letter of Gallatin to, 43; + with Gallatin at anti-excise convention, 52; + advised by Gallatin to avoid United States marshal, 55; + letter of Gallatin to, on French Revolution, 56; + letter of Gallatin to, on his wife, 59; + instructed by Gallatin to secure reelection of unseated members of + legislature, 95; + given an office by Gallatin, 287, 326; + remark of Gallatin to, 299; + letter of Gallatin to, on J. Q. Adams, 339; + takes shares in Gallatin's land scheme, 361; + manages store for Gallatin, 362; + letters of Gallatin to, 365, 370. + +Balbi, quotes Gallatin in his Atlas, 374. + +Baldwin, Abraham, on committee on finance, 106. + +Bank of North America, established by Morris, 172, 248; + its purpose, 248; + organization, 248, 249; + difficulties of starting, 249, 260; + its services, 249; + jealousy of Pennsylvania toward, 250. + +Bank of United States, established by Hamilton, 175, 250, 251; + its organization, 251, 252; + borrowed from, by Gallatin, 204; + petitions for a re-charter, 252; + Gallatin's report in favor of, 252-254; + a re-charter refused, 231, 254; + its value, 255; + opinion of Gallatin on, 255; + controls state banks, 259; + desire of Astor to crush, 259; + remits specie to foreign stockholders, 260; + its dissolution causes panic, 262, 263; + reincorporation proposed, 265; + vetoed, then approved, by Madison, 265; + its subsequent history, 266; + helps resumption of specie payments, 267; + presidency of, declined by Gallatin, 268; + deposits removed from, by Taney, 269; + accepts charter from Pennsylvania, 271; + its subsequent career, 271; + fails in 1839, 276; + weakness of Madison in 1812 in allowing its dissolution, 296. + +Bank, National, of New York, connection of Gallatin with, 269-277. + +Banks, state, difficulty of controlling their issues, 256; + their evil effects, 257; + status in 1811, 258; + increase after termination of Bank of United States, 261, 262; + suspend payment in 1815, 262; + agree to resume, 267; + supported by second Bank of United States, 267; + Gallatin's "Considerations on," etc., 268; + connection of Gallatin with, 269-277; + speculation craze of, in 1836, 271, 272; + suspend payment in 1837, 272; + conventions of, to prepare for resumption, 273-275; + aided by Treasury, 275; "Suggestions" of Gallatin, 277. + +Barbour, Philip P., presides over free trade convention in 1831, 241. + +Baring, Alexander, explains to Gallatin British reasons for refusing + Russian mediation, 306, 307; + reply of Gallatin, 309; + urges Gallatin to visit England, 311; + requested by Gallatin to send passports, 313; + his mission to America, 349, 350; + his manner of negotiation with Webster, 350; + visits Gallatin, 350; + comparison with Gallatin, 350; + his death, 386. + +Barings, connection with Louisiana purchase, 193, 195; + competition of Bank of United States with, 271; + letter of Gallatin to, 305. + +Barras, Comte, encouraged by Napoleon's success to bold measures against + United States, 132. + +Bartlett, John Russell, gives anecdotes of Gallatin, 13, 22. + +Bartlett, ----, member of Ethnological Society, 379. + +Bathurst, Lord, promises to appoint peace commissioners, 314; + reopens negotiations, 319; + insists on possession of part of Maine, 321. + +Bayard, James A., elected to Congress, 132; + on legislative encroachments on executive, 143; + on resolution to furnish foreign correspondence, 156; + defends Sedition Law by a clever amendment, 159; + moves committee to arrange for balloting in 1800, 166; + accompanies Gallatin as peace commissioner, 301, 302; + willing to accept an informal renunciation of impressment, 305; + goes to Amsterdam, 312; + on new commission to treat directly, 312; + visits London, 313; + asks Monroe for authority to negotiate anywhere, 314; + appointed minister to Russia, 326. + +Baylies, ----, his report on Western territory complained of by England, + 345. + +Bentham, Jeremy, works translated by Dumont, 5; + influences Gallatin, 388. + +Bentson, ----, on Astor's hostility to United States Bank, 259. + +Berlin and Milan decrees, negotiations for compensation for seizures + under, 333. + +Biddle, C. C., at free trade convention in 1831, 241. + +Biddle, Nicholas, in panic of 1837, 275. + +Blount, William, on committee on finance, 107; + impeached, 138. + +Bonaparte, Jerome, his flight to America, 332. + +Bonaparte, Napoleon, his precocity compared to that of Gallatin, 32; + effect of his Italian successes on French policy, 132, 139; + adopts conciliatory tone, 160; + issues Milan decree, 229; + seen by Gallatin during Hundred Days, 326; + American sympathy for, explained by Gallatin, 331. + +Boorman, James, at free trade convention in 1831, 241. + +Borgo, Pozzo di, compared to Gallatin, 32. + +Boston, visit of Gallatin to, 12-14, 17; + Puritanical society in, 13; + prejudice against French, 13; + Gallatin's opinion of, 18; + protests against Jay treaty, 103. + +Botts, John M., letter of Gallatin to, on bank, 256. + +Boundary, northeast, in treaty of Ghent, 321, 322; + discussed in 1826, 343; + referred to arbitration, 347; + argument concerning, prepared by Gallatin, 349; + decision of King of Netherlands rejected by United States, 349; + documents concerning, published by Gallatin, 349; + settled by Ashburton treaty, 350. + +Bourdillon, ----, takes share in Gallatin's land scheme, 361. + +Bourne, Shearjashub, on committee on finance, 106. + +Brackenridge, Judge H. H., on Gallatin's part in anti-excise agitation, + 50; + in Washington County, advises moderation, 69; + an authority for history of insurrection, 71; + his character and policy, 71; + leads Pittsburgh committee to urge moderation upon rioters, 72; + describes Bradford's behavior, 72; + his estimate of numbers under arms, 72; + compares excitement with that in 1765 and 1775, 74; + at Parkinson's Ferry meeting, 78; + supports Gallatin's efforts to prevent rebellion, 80, 82; + on committee to confer with United States commissioners, 81; + describes Gallatin's speech, 82; + claims credit for preventing civil war, 84; + on threats of secession, 86; + defeated by Gallatin for Congress, 93. + +Bradford, David, represents Washington County in anti-excise + proceedings, 51; + elected to legislature, 54; + low opinion of Gallatin concerning, 54; + tries to shirk responsibility, 69; + then determines on extreme measures, robs mail, 69; + calls for armed resistance, 70; + unable to countermand order, 70; + assumes office of major-general, 72; + his harangue to the insurgents, 73; + at meeting at Parkinson's Ferry, 78; + advocates armed resistance, 79; + on committee on resolutions, 80; + named to confer with United States commissioners, 81; + urges rejection of their terms, 81, 82; + excepted from amnesty, flies from the country, 84, 85. + +Bradford, James, in anti-excise convention, 52. + +Bradford, ----, member of Ethnological Society, 379. + +Bradish, Luther, his eulogy of Gallatin, 388. + +Breading, Nicholas, in Pennsylvania ratifying convention, 35. + +Breckenridge, John, his brief career, 355. + +Brevoort, ----, member of "The Club," 367. + +Brodhead, John Romeyn, orator at fortieth anniversary of New York + Historical Society, 384. + +Buck, Daniel, on committee on finance, 107. + +Burke, Edmund, on place of revenue in the state, 218. + +Burr, Aaron, his connection with Dayton, 104; + in presidential election of 1800, 163, 164, 166, 167; + alienated from Jefferson by refusal to appoint Davis, 282. + + +Cabinet, its lack of financial cooeperation under Jefferson, 188; + criticises Jefferson's messages, 283; + weekly meetings of, suggested by Gallatin, 283; + absence of system in, 284; + dissensions and reorganization under Madison, 296, 297. + +Cabot, George, on committee to consider Gallatin's eligibility to + senate, 61. + +Calhoun, John C., reports plan for a national bank, 265; + ascribes Gallatin's disregard of Adams's arguments in Apollon case to + "pride," 338; + Gallatin's opinion of, 355; + elected Vice-President, 358; + on Gallatin's ethnological studies, 378. + +California, discovery of gold in, 353, 354. + +Campbell, George W., furnished with report by Gallatin on injuries of + Great Britain, 292, 303; + secretary of treasury, 312. + +Canning, George, his policy toward United States, 225, 295, 344; + attitude of Gallatin toward, in negotiation, 345; + death, 347. + +Carnahan, Dr., describes entry of Whiskey Rebellion prisoners into + Cannonsburg, 91. + +Castlereagh, Lord, discourages offer of Russia to mediate, 304; + gives assurance of safety to cartel-ship, 307; + refuses second offer of mediation, 311; + offers to deal directly, 312; + member of cabinet most favorable to America, 314; + advises English commissioners to moderate demands, 319; + approves treaty of Ghent, 326; + arranges commercial convention with Gallatin, 326; + expresses friendly feelings, 335. + +Cazenove, ----, takes shares in Gallatin's land scheme, 361. + +Charles X., in Revolution of 1830, 370, 372. + +Chase, Salmon P., negotiations with Treasury Note Committee, 196 and + note; + follows Gallatin's treasury-note plan, 209; + organizes national banking system, 256. + +Chateaubriand, succeeds Montmorenci, 340; + negotiates unsuccessfully with Gallatin, 341; + quotes Gallatin's statement of Cuban question, 346. + +Cheriot, ----, takes share in Gallatin's land scheme, 361. + +Chesapeake, captured by Leopard, 224. + +Chevalier, Michel, his studies on money, 278. + +Cheves, Langdon, at free trade convention in 1831, 241. + +Choteau, Pierre Louis, meets Gallatin, his influence over Indians, 287, + 374. + +Circourt, Count de, reviews Gallatin's "Synopsis of the Indian Tribes," + 378. + +Civil service, monopolized by Federalists, 280; + demands of Republicans for a share in, 281; + Gallatin's opinion of appointments to and conduct of, 281; + intention of Jefferson to give one half of, to Republicans, 282. + +Clare, Thomas, his house the headquarters of Gallatin in 1784, 22, 24; + rents Gallatin a house, 25. + +Clay, Henry, denounces Gallatin for advocating free trade, 242; + apologizes, 242; + on peace commission, 312; + arrives at Gottenburg, 313; + corresponds with Gallatin concerning place of negotiation, 314; + differs with Adams over Mississippi navigation and fisheries, 323; + joins Gallatin in England, 326; + urges Gallatin to accept mission to Panama Congress, 342; + letter of Gallatin to, on instructions as minister to England, 343; + tone of his diplomatic correspondence, 345; + Gallatin's opinion of, 356; + resignation of Gallatin in his favor, 358; + secures election of Adams, 358. + +Clinton, George, marriage of his daughter to Genet, 102. + +"Club, The," in New York, Gallatin's membership of, 366, 367. + +Coast survey, established, 290. + +Coinage, debate concerning, in Congress, 140; + regulated by Morris, 172. + +Coles, Edward, letter of Gallatin to, 284. + +Confederation, Articles of, political conditions under, 33, 34. + +Congress, adopts amendments to Constitution suggested by New York and + Virginia, 40; + passes excise law, 49; + modifies it, 52; + gives state courts jurisdiction in excise cases, 67; + receives tricolor from France, 130; + complained of by Jefferson as weak, 138; + suspends commercial intercourse with France, 151; + passes acts authorizing naval defense, 153; + presence of Washington, Pinckney, and Hamilton at, in 1798, 155; + speech of Adams to, 155; + responsibility for war thrown upon, by Madison, 205; + authorizes loan in 1812, 209, 212; + damages Treasury by procrastination, 212; + supports Gallatin's policy of extinguishing debt, 215; + repeals internal revenue act, 221; + passes embargo, 225; + extends terms of credit on revenue bonds, 226; + refuses to recharter the bank, 231, 254; + declares war, imposes increased duties, 234; + reimposes internal taxes, 236; + adopts non-importation against England and France, 292; + orders out naval force, 294; + repeals embargo, 294. + +Constable, John, at free trade convention in 1831, 241. + +Constellation, defeats La Vengeance, 160. + +Constitution of Pennsylvania, convention called to revise, 40, 41; + its membership and ability, 42, 43. + +Constitution of the United States, adopted, 35; + struggle over ratification in Pennsylvania, 35; + movement in favor of new convention to amend, 36-40; + amended, 40; + power of Representatives to appropriate, 109; + debate in Congress on relation of treaty power to House of + Representatives, 110-115; + argument of Washington on treaty power, 114, 115; + debate in House on relation of Executive to Congress, 142-147; + power of Senate to require treasury reports, 161; + in relation to state bills of credit, 257; + question of power of United States to acquire territory, 285; + in relation to National University, 291; + to annexation of Texas, 351. + +Cook, Edward, presides over meeting of whiskey insurgents at Parkinson's + Ferry, 79; + indorses resolution to submit to terms of United States commissioners, + 83. + +Cooper, Dr. Samuel, interested in Gallatin through Madame Pictet, 17. + +Couronne, ----, takes shares in Gallatin's land scheme, 361. + +Crawford, William H., follows Gallatin's treasury policy, 215; + at Gallatin's suggestion, urges Emperor + again to mediate, 315; + complains of Adams's pugnacity, 339; + wishes Gallatin to stand for Vice-President, 341; + looked upon by Gallatin as strongest leader after the triumvirate, + 355; + supported by Gallatin, Jefferson, and Madison against Adams, 356; + stricken with paralysis, 357; + nominated for President by caucus, 357; + defeated by Adams, 358. + +Cuba, avowed intention of United States to prevent English seizure of, + by war if necessary, 346. + +Cumberland Road, reported to Congress in 1807, 290. + + +Dallas, Alexander J., his career compared to that of Gallatin, 28, 58; + his parentage, 58; + secretary of state for Pennsylvania, 58; + friendship with Gallatin, 58; + excursion with Gallatin, 58, 59; + describes to Gallatin his experiences with militia in suppressing + Whiskey Rebellion, 92; + follows Gallatin's loan policy, 215; + regrets absence of internal taxes, 236; + proposes a national bank, 265; + resigns, 266. + +Dallas, Mrs. A. J., on excursion with her husband and Gallatin, 58, 59. + +Dallas, George M., accompanies Gallatin to Europe, 301; + sent to London, his instructions, 310; + informs Gallatin of English offer to treat directly, 311; + takes dispatch to Monroe, 318. + +Davis, Garrett, letter of Gallatin to, on manifest destiny, 352. + +Davis, Matthew L., quarrel between Jefferson and Burr over his + appointment, 282. + +Dawson, John, on Sedition Law, 162. + +Dayton, Jonathan, elected speaker of House by Democrats, 98; + anti-British in feeling, 104; + not influenced by connection with Burr, 104; + reelected speaker, 132; + introduces resolution on Adams's message, 134; + joins Federalists after X Y Z affair, 149; + refuses to answer Gallatin, 153; + vote of thanks to, 158. + +Debt, public, payment by public lands urged by Gallatin, 122; + its permanence condemned by Gallatin, 126; + controversy between Gallatin and Smith as to increase of, 126; + attempt of Continental Congress to investigate, 171; + attempts of Morris to secure its funding, 172, 173; + funded by Hamilton, 174, 175; + increased under Wolcott, 178; + creation of domestic loans, 178; + Gallatin's subdivision of, 184, 185; + its extinction Gallatin's main desire, 186, 188, 198, 203, 208; + stated by Gallatin in 1801-2, 191; + plan for its discharging, 191; + actual reduction of, 192; + increased through Louisiana purchase, 192, 193, 195; + new funds, 195, 196; + funding of debt in 1807, 198; + statement regarding, in 1808, 202; + its increase during war foreseen by Gallatin, 203; + reduction in 1812, 205; + loan of 1812, 209; + declines below par, 210; + revives, 211; + loan of twenty-one millions, 212; + increase in 1816, 215; + Gallatin's policy toward, continued by Dallas and Crawford, 215; + eventually extinguished, 215, 269, 271; + absence regretted by Woodbury, 271. + +De Fersen, his correspondence proves guilt of Louis XVI., 57. + +De Lolme, ----, school companion of Gallatin, 5. + +Democratic party. See Republican party especially, 358-360. + +De Neuville, Hyde, French minister, demands dismissal of insolent + postmaster, 333; + negotiates commercial convention with Adams, 340. + +De Rham, ----, member of "The Club," 367. + +Dexter, Samuel, succeeds Wolcott in Treasury Department, 177; + consents to hold over until appointment of successor, 181. + +Diplomatic history, mission of Genet to United States, 57, 102; + Jay's treaty with England, 102, 103, 117; + Fauchet's dealings with Randolph, 103; + Wayne's treaty with Indians, 117; + Pinckney's treaty with Spain, 117; + expulsion of Pinckney from France, 132; + X Y Z affair and consequences, 149, 152, 153; + events leading up to war of 1812, 295; + offer of Russia to mediate, 299; + mission of Gallatin, Bayard, and Adams to Russia, 301, 303; + correspondence of Gallatin with Baring, 305-307, 309; + renewed offers by Russia, 308; + again refused by England, 311; + offer of England to treat directly, 311; + appointment of a new commission, 312; + place of negotiation, 314; + futile appeal of Lafayette to Emperor to mediate, 315, 316; + appointment of English commissioners, 316; + exorbitant English demands, 317; + suspension of negotiations, 318; + alteration of British tone, 319; + resumption of negotiations and refusal by Americans of English demands, + 319; + further English demands for cession of territory refused, 321; + discussion over boundaries, fisheries, and Mississippi navigation, 322, + 323; + these points abandoned, 323; + article against slave trade adopted, 323; + conclusion of treaty, 324; + part played by Gallatin, 324, 325; + commercial convention with England, 326, 327; + mission of Gallatin to France, 330-341; + negotiations over French captures under Berlin and Milan decrees, 332, + 333; + over an impudent postmaster, 333; + negotiations with Holland, 334; + commercial convention with England, 334, 335; + negotiations with France over Apollon case, 338; + commercial convention with France, 340; + failure to settle American claims, 341; + Gallatin's mission to England, 343-347; + instructions, 343; + negotiations with Canning, 345, 346; + conclusion of convention with Goderich's ministry, 347; + Ashburton treaty negotiations, 349, 350. + +Disunion, threatened in 1795, 116; + planned by New England in 1812, 213. + +Duane, William, intimate with Jefferson, 286; + abuses Gallatin in "Aurora," 286, 297; + appointed adjutant-general by Madison, 299. + +Duby, ----, takes shares in Gallatin's land scheme, 361. + +Dumont, Etienne, college friend of Gallatin, his subsequent career, 5; + Gallatin's opinion of, 5; + invited by Gallatin to come to America, 26; + on shape of Gallatin's head, 389. + +Du Ponceau, Peter Stephen, friend of Gallatin, his philological studies + upon Indians, 376, 377. + +D'Yvernois, proposes to transport University of Geneva to United States, + 291; + receives shares in Gallatin's land scheme, 362. + + +Edgar, James, on committee of whiskey insurgents to confer with United + States commissioners, 81; + supports Gallatin, 82; + presides over last meeting at Parkinson's Ferry, 89. + +Elliott, ----, on controversy between Wolcott and Gallatin, as to + surplus, 190, 191. + +Ellsworth, Oliver, on committee to consider Gallatin's eligibility to + Senate, 61. + +Embargo, opposed by Gallatin, 201; + its effect stated by him, 201, 202; + adopted as answer to Orders in Council, 225; + its enforcement or abandonment urged by Gallatin, 228, 229, 230, 291; + enforced, 292; + repealed, 294. + +Emlen, George, at free trade convention in 1831, 241. + +England, anger against, at time of Jay treaty, 103; + renews provision order, 103; + danger of war with, 116, 118, 120; + hard pressed by France in 1797, 139; + its friendship more dangerous than France's enmity, 163; + adopts Orders in Council, 201, 225; + commercial policy toward United States, 224, 225, 295; + danger of war with, 224, 229; + Madison's preference for, 295; + events leading up to war with, 295, 296; + mistaken view of Gallatin concerning its diplomacy, 304; + unwilling to tolerate Russian mediation, 304, 306, 311; + its policy explained by Baring, 306, 307; + offers to treat directly, 311; + willing to push on war after fall of Napoleon, 313, 316; + hopes to divide United States, 313; + appoints commissioners, 316; + makes exorbitant demands, 317; + its policy modified by Castlereagh, 319; + demands cession of territory, 321; + loses interest in war, 322; + rejects article on impressment, 322; + negotiation of convention with, in 1815, 334, 335; + at Congress of Aix-la-Chapelle, 337; + mission of Gallatin to, 343-347; + complains of tone of American diplomacy, 344, 345; + negotiations with, 345, 346; + agrees to renew commercial convention, 347; + refuses to negotiate on impressment, 347; + makes Ashburton treaty, 349, 350. + +Eppes, John W., letter of Gallatin to, on public lands, 239. + +Erskine, D. M., his negotiations, 295. + +Etsko, ----, Polish refugee, helped by Gallatin, 372. + +Eustis, William, advised by Gallatin concerning treaty with Netherlands, + 333, 334. + +Ewbank, ----, member of Ethnological Society, 379. + +Excise (see Whiskey Insurrection), recommended by Hamilton, 175. + + +Fauchet, his dealings with Randolph, 103; + condemned by Federalists, 134. + +Fayette County, settlement of Gallatin, 22, 26, 27; + life in, 28, 43, 67; + elects Gallatin to legislature, 44; + in Whiskey Insurrection, 49, 51, 52, 68, 78, 85, 96; + reelects Gallatin, 93, 95; + visited by Lafayette, 365. + +Fazzi, ----, takes share in Gallatin's land scheme, 361. + +Federalist party, its origin, 57; + prejudiced against Gallatin by his resolution demanding information from + Hamilton, 64, 65; + opposes his election to Congress, 95; + reconstructs cabinet, 97, 98; + its leaders in House, 98, 99; + attitude toward France and England, 100, 101; + charged with being bribed by England, 103; + in debate on appropriating power, 108, 109; + in debate on treaty power, 111-115; + defends Jay treaty, 118; + strengthened in fourth Congress, 128; + retains nominal majority in fifth Congress, 133; + in debate on French relations, 134-136; + in debate on checks on executive, 143-147; + strengthened by X Y Z affair, 149; + commits mistakes, 151, 152; its badge, 153; + controls sixth Congress, 158; + refuses to repeal Sedition Law, 159; + defeated in 1800, 163; + forced to choose between Burr and Jefferson, 164; + bargain with Jefferson, 164; + its possible plans for defeating any choice, 165; + and for nominating a president pro tempore, 165; + allows Jefferson's election, 166, 167; + its share in building country, 169; + breach in, 177; + enjoys Republican inconsistency, 237; + monopolizes offices, 280; + extinguished by battle of New Orleans, 358. + +Few, William, connected by marriage with Gallatin, 59. + +Finances, efforts of Gallatin to secure minute supervision of by + Congress, 64, 106, 107; + efforts to establish permanent appropriations, 107; + appropriations, power of Congress over, 108, 109; + their necessity to successful government, 170; + finances of the Revolution under Morris, 170-174; + under treasury board, 173, 174; + under Hamilton, 174-176; + under Wolcott, 176-178; + under Gallatin, 186-215; + sketch of, by Gallatin, 184; + "View of," by Gallatin, 185; + preliminary sketch on Gallatin's assuming office, 186; + estimate of sources of wealth, 187; + estimate for 1801, 190; + denial of a surplus, 190, 191; + plan for discharging debt, 191, 192; + its execution, 192, 194; + report for 1803 on reduction of debt, 195; + Louisiana purchase, 193, 195; + place of payment of principal and interest, 195, 196; + addition to sinking fund, 196; + report for first four years, 197; + estimates of revenue for Jefferson's second term, 198; + conversion of debt, 198; + full treasury in 1807, 198; + Gallatin's consideration of military value of surplus, 199; + on war revenue, 200, 201; + effect of embargo, 201; + sources of revenue, 204; + deficiency in 1809, 204; + report of 1811, 205; + demand of Gallatin for internal revenue, 206; + war estimates, 206-209; + including "treasury notes," 207, 210; + loan of 1812, 209; + estimates for 1812, 210; + report for 1812, 211; + success of loan, 210, 211; + report of loan of twenty-one millions, 212; + stock not taken by New England and Southern States, 213; + saved by Parish, Girard, and Astor, 213, 214; + review of Gallatin's influence, 215-216; + table of revenue and expenditure, 217; + revenue established by Hamilton, 217; + its character, 218; + and amount, 219; + permanent estimate of, 220; + internal revenue retained by Gallatin, 220; + his proposed expenditures, 220; + repeal of internal revenue, 221; + increased income, 221; + establishment of Mediterranean fund, 222; + income during Jefferson's first term, 223; + increased estimates of Gallatin, 223; + internal improvements planned, 224; + doubling of duties recommended as a war measure, 225; + effect of embargo on revenue, 225, 227; + review of revenue during Jefferson's administrations, 226, 227; + surplus in 1808, 226; + internal improvements advocated by Jefferson, 226, 227; + estimates of receipts for 1809, 228; + report of Gallatin to Congress on need for new revenues, 229; + vagueness of Madison concerning, 229, 230; + report for 1809, 230; + refusal of Congress to re-charter bank, 231; + report for 1810, 231; + report of Gallatin in January, 1812, 232; + proposal to impose internal taxes, 234; + increased war duties, 234; + war budget for 1813, 235; + internal taxes, their history, 235; + reimposed by Congress, 236; + receipts from, 237; + public lands, receipts from, 238, 239; + administration of Treasury under + Gallatin, 244-246; + history of Bank of North America, 248-250; + of Bank of United States, 250-255; + panic of 1815, 262-264; + second United States Bank, 265-268; + resumption of specie payment, 267; + report of Gallatin on ratio of gold and silver, 268; + "Considerations on Currency and Banking," 268; + diminution of debt in 1832, 269; + removal of deposits from Bank of United States, 269, 270; + extinction of debt by Woodbury, 270, 271; + distribution of surplus among States, 271; + inflation in 1836, 272; + panic of 1837, 272, 273. + +Findley, James, in Pennsylvania Constitutional Convention, 43; + represents Fayette County in legislature, 44. + +Findley, William, describes Whiskey Insurrection, 71; + at Parkinson's Ferry meeting, 78; + describes Gallatin's speech, 83; + on threats of secession, 86; + takes resolutions to Washington urging him to stop march of troops, + 89; + describes seizure of prisoners, 90. + +Fish, Preserved, at free trade convention in 1831, 241. + +Fisheries, discussed in treaty of Ghent, 322, 323; + unfavorable settlement of question in 1818, 335. + +Florida, question of its annexation, 285. + +Forsyth, John, asks Gallatin's advice as to Smithson's bequest, 378. + +Fox, C. J., his precocity compared to Gallatin's, 32. + +France, sympathy of Republicans for, 116; + sends tricolor to Congress, 130; + its policy in Revolution, 131; + situation in 1796, 131; + endeavors to get aid of United States, 131; + determines to coerce it, 132; + refuses to receive Pinckney, 132; + policy of Adams toward, 137; + success in 1797, 139; + danger of war with, in 1798, 147; + question of war with, debated in Congress, 148-151; + non-intercourse with, 151, 159, 160; + adopts conciliatory measures, 160; + commercial convention with, 162; + adopts Milan decree, 229; + mission of Gallatin to, 331-341; + refuses to pay for seizures under Berlin and Milan decrees, 333; + urges peace with Spain, 336; + offers to mediate with United States between Spain and her colonies, + 336; + conduct at Congress of Aix-la-Chapelle, 337; + Apollon case, 338; + commercial convention with, 340; + fails to settle claims, 340, 341; + Revolution of 1830 in, 370, 371, 372. + +Franklin, Benjamin, gives Gallatin letter to Richard Bache, 11; + compared to Gallatin, 389. + +Frederick, Landgrave of Hesse-Cassel, friend of Madame Voltaire, 7; + sends her a portrait, 7; + sells troops to England in American war, 8; + called a tyrant by Gallatin, 8. + +Free trade, advocated by Gallatin, 240; + becomes a party question in 1832, 240; + convention in favor of, 241; + Gallatin's memorial in behalf of, 241, 242; + subsequent history of, 242, 243. + +French Revolution, premonitions of, in Europe, 6; + Gallatin's opinion of, in 1794, 56, 57; + its reaction on America, 57, 100; + attitude of parties toward, 101, 102; + its effect described by Gallatin, 327, 328. + + +Gallatin, Abraham, grandfather of Albert, 2; + lives at Pregny, 7; + friend of Voltaire, 7. + +Gallatin, Albert, his place in United States history, 1; + birth and ancestry, 2; + adopted by Mlle. Pictet, 2; + his schooling and home training, 2, 3; + benefits from cosmopolitan society of Geneva, 4; + academic friendships, 4, 5; + restless, although not ambitious, 5; + discontented with political conditions, 6; + visits Voltaire, 7, 8; + refuses offer of commission in Hessian service, 8; + quarrels with grandmother, 8; + plans to find freedom in America, 9, 10; + leaves Geneva secretly, 9; + plans to rise by land speculation and commerce, 10; + at Nantes receives letters from family, 10, 11; + relations with guardian, 11; + invests money in tea, 12; + voyage to Boston, 12; + finds difficulty in selling tea, 12; + finds Boston bigoted and unfriendly, 13; + his walk to Blue Hill, 13; + encounter with inquisitive landlord, 13, 14; + persuaded by Madame De Lesdernier, makes trading voyage to Machias, + 14; + frontier life there, 15, 16; + commands earthwork at Passamaquoddy, 16; + meets La Perouse, 16; + returns to Boston and teaches French, 17; + recommended by Mlle. Pictet to Dr. Cooper, 17; + teaches French successfully in Harvard College, 17, 18; + glad to leave Boston at conclusion of war, 18; + visits New York, 18; + meets Savary, 19; + dissolves partnership with Serre, 19; + meets Pelatiah Webster at Philadelphia, 19; + accompanies Savary to Richmond, 19; + decides definitely not to return to Geneva, 20; + joins Savary in land speculations in West Virginia, 20, 21; + his aversion to debt, 21; + returns to Philadelphia and leads exploring party down Ohio, 21; + at George's Creek builds log-house and opens store, 22; + encounters Washington, 22; + declines Washington's offer to become land agent, 23; + enjoys a winter in Richmond society, 23; + his gratitude for hospitality and kindness, 24; + commissioned by Henry, locates lands in Western Virginia, 24; + interrupted by Indian troubles, 24; + takes oath of allegiance to Virginia, 25; + invites Badollet to join him from Geneva, 25, 26; + purchases Friendship Hill, 26; + rumor of his death causes inquiries from Geneva, 27; + attains majority and calls for property, 28; + difficulties of his life on frontier, 28; + not to be blamed for his choice of location, 28, 29; + offered place in office by Marshall, 29; + advised by Patrick Henry to begin in West, 29; + visits Richmond and Philadelphia, 29; + journey to Maine, 29, 30; + kindness towards Lesdernier, 30; + marries Sophie Allegre, her sudden death, 30; + disheartened, wishes to abandon Western lands, 30, 31; + his maturity in political thought, 32; + early an advocate of democracy, 32, 33; + probably dislikes the Federal Constitution, 34, 36; + an opponent of centralization, 34; + influences arguments of Smilie in Pennsylvania ratifying convention, + 36; + represents Fayette County at convention of anti-Federalists, 37; + friendship with Smilie, 38; + drafts resolutions providing for vigorous organization against + Constitution, 38, 39. + +_In Pennsylvania Constitutional Convention._ + Elected a delegate from Fayette County, 40; + his opposition to alteration of form of government, 41; + advocates enlarged popular representation, manhood suffrage, easy + naturalization, 42; + takes minor part in convention, his high opinion of its ability, 42, + 43; + after convention, falls into melancholy, 43; + wishes to leave America, 43; + reproached by Genevese friends with indolence, 43, 44. + +_In Pennsylvania Legislature._ + Elected to represent Fayette County, 44; + describes his legislative career, 45-47; + his influence and activity, 45; + advocates improved education, 45; + supports turnpike, 45; + gains reputation by report of Ways and Means Committee, 46; + advocates redemption of paper money and financial reform, 46; + reports a resolution for abolition of slavery, 47; + at first dislikes Philadelphia, later prefers it to New York for + democracy, 47, 48; + drafts resolutions condemning Hamilton's excise bill, 48; + takes part in public meeting in Washington County against the bill, 50; + secretary of convention of western counties at Pittsburgh, 52; + signs resolutions advocating resistance, 53; + draws petition to Congress, 53; + returns to Philadelphia to find cause damaged by action of counties, + 54; + advises evasion of federal writs to arrest, 55; + in legislature proposes a township veto on taxation and popular + education, 55; + wishes to visit Geneva in 1793, 56, 57; + views on French Revolution, 56, 57; + elected senator in spite of insufficient residence, 58; + acquaintance with Dallas, 58; + on journey with him, meets Hannah Nicholson, 59; + marriage, 59; + his family connections by marriage, 59; + later business connections with brother-in-law, J. W. Nicholson, 60; + takes seat as United States senator, 60; + his election protested on ground of insufficient residence, 60, 61; + complains of membership of committee to consider case, 61; + his exact status, 62; + submits statement of facts to Senate, 62; + is declared disqualified by narrow majority, 62, 63; + his dignified conduct of case, 63; + pending the decision, introduces resolution calling upon Hamilton to + make a minutely itemized report, 64; + probably causes his own expulsion by thus irritating Federalists, 64, + 65; + later obliged to answer a similar demand from Federalists, 65; + not cast down by exclusion, 65; + gains increased popularity in Pennsylvania, 65, 66. + +_In Whiskey Insurrection._ + Takes wife to Fayette County, 67; + at outbreak of violence advises distillers to submit to law, 69; + his estimate of numbers of insurgents in arms, 73; + remains at first aloof from excitement, 75; + determines to take control of movement, 75, 76; + alarmed at probable excesses of mob and danger of repression, 76; + delegate to convention at Parkinson's Ferry, 78; + confers with Marshall, 78; + chosen secretary, 79; + opposes resolution to resist by force, and moves reference of + resolutions to a committee, 80; + succeeds in modifying resolutions not to obey excise and trial laws, + 80; + on committee on resolutions, 80; + on committee to confer with government commissioners, 81; + points out folly of resistance, 81; + counsels submission, 81; + his eloquent speech, 82, 83; + prevents anarchy, 82; + charged by J. C. Hamilton with cowardice, 84; + his real courage, 84; + hastens submission of Fayette County, 85; + secures adoption of declaration defending county's action, 85; + secretary of meeting at Parkinson's Ferry, which makes complete + submission, 89; + considered by Federalists to be chief instigator of the insurrection, + 90; + describes conversation with Dallas, 92; + again chosen to legislature and also to Congress, 93; + his election to Assembly contested and declared void, 93, 94; + in his speech during debate admits error of his course, 94; + urges Badollet to secure reelection of all Western assemblymen, 95; + re-elected to legislature, 95; + witness before grand jury in trial of prisoners, 96; + draws petition to Washington for pardon of offenders, 96; + his loyalty to constituents, 96. + +_Member of Congress._ + Moves appointment of committee on finance to control Treasury, 106; + appointed upon it, 106; + wishes to put appropriations on permanent footing, 107, 108; + refuses to devote military funds to establishing Indian trading posts, + 108; + opposes habit of appropriating without debate, even to objects already + approved, 109; + supports resolutions calling for papers in Jay treaty, 110; + upholds power of House of Representatives, 111, 112; + denies that treaties override discretion of House, 112, 113; + appointed to carry call to Washington, 114; + claims right of House to participate in treaties, 114; + stands beside Madison as leader of debate, 115; + insists on separate consideration of treaties, 118; + objects to Federalists' threats of war with England, 118, 119; + complains of abandonment of "free ships" principle in Jay's treaty, + 119; + low opinion of Indians, 122; + urges resistance to impressment, 122; + suggests plan for advantageous sale of public lands, 122; + and their use to pay debt, 122; + views on taxation, 123; + opposes military establishment and navy, 123, 124; + laments necessity of payment to United States Bank, 124; + attacked for participation in Whiskey Insurrection, 124; + makes no reply, 125; + criticises conduct of Treasury Department, 125; + opposes principle of a national debt, 125; + asserts a great increase in public debt, 126; + defends assertion against W. Smith, 126; + objects to adjournment to pay respects to Washington on birthday, 126; + recognized as leader of opposition by Federalists, 127; + does not expect or desire renomination, 127; + reelected to Congress, 127; + becomes leader of Republicans in House, 128; + wishes House to compliment Washington personally on his retirement, + but not his administration, 129; + describes Andrew Jackson's appearance, 129 n.; + insists on payment of indebtedness of States to government, 129; + chairman of conference committee, 129; + opposes army and navy expenditure, 129, 130; + secures passage of bill confining treasury expenditures, 130; + in sympathy and confidence of Jefferson, 133; + deprecates debating foreign relations, 134; + wishes to treat France like other nations, 134; + opposes threatening France, 135; + joins moderate Republicans in voting with Federalists for address to + President, 136; + opposes appropriation for defense, 137; + objects to employment of frigates, 137; + favors defense of ports and harbors only, 137; + opposes salt duty, 137; + and excessive loans, 137; + points out method of impeachment in Blount case, 138; + describes his desire for moderation, 138; + calls Federalists aristocrats, 139; + votes against presenting answer to message in person, 140; + now acknowledged leader of Republicans, 140; + presents anti-slavery petitions from Pennsylvania, 140; + his opinion of use of foreign coins, 140; + estimate of specie in United States, 141; + opposes proposal to expel Lyon, 141; + on executive power of appointment, 142; + wishes to abandon foreign political intercourse, 143; + upholds power of House to check executive through appropriations, 143; + makes elaborate speech on checks of legislature on executive, 144-146; + and on necessity of abstention from European politics, 145; + practical drawbacks to his theory, 147; + his speech circulated by party, 147; + opposes war measures against France, 148; + supports call for papers of envoys to France, 148; + presents petition against authorizing private citizens to arm vessels, + 149; + opposes bill to authorize President to arm convoys, 149; + prefers submission to French outrages rather than war, 150, 151; + attacked by Allen of Connecticut, his reply, 150, 151; + opposes non-intercourse with France, 151; + declares Sedition Bill unconstitutional, 152; + high words with Harper over Alien Bill, 152; + taunted by Harper, 152; + opposes declaration of state of relations by Congress, 153; + votes against abrogating treaty with France, 154; + continues to harass Wolcott in the Treasury, 154; + his even temper, 154; + opposes bill to punish correspondence with foreign princes, 155, 156; + opposes bill to incite French West Indies to revolt, 156, 157; + opposes authorization of President to suspend commerce in certain + cases, 157; + opposes building ships of the line, 157; + tries to defeat or ameliorate Alien and Sedition Laws, 157, 158; + aided in sixth Congress by Nicholas and Macon, 159; + votes with Federalists to suspend commercial intercourse with France, + 159; + opposes proposal to amend Foreign Intercourse Act, 160, 161; + opposes bill requiring report from secretary of treasury, because + originating in Senate, 161; + opposes continuance of non-intercourse, 162; + his position in presidential contest in 1800, 164; + irritated by influence of S. Smith over Jefferson and Madison, 164; + reasons that attempt of Federalists to defeat an election by the House + is constitutional, 164, 165; + but any president pro tempore would be unconstitutional, 165; + suggests course of action for Republicans, 165; + probably expects to use violence against Federalists, 166; + review of his congressional career, 167; + leader of party, yet not a partisan, 167, 168; + one of Republican triumvirate, 168; + his departure leaves party without a legislative leader, 168. + +_Secretary of the Treasury: Funding._ + His place as financier in United States history, 170; + Jefferson's choice for secretary of treasury, 178, 179; + hated by Federalists in Senate, 178; + assigned to Treasury by public opinion, 179; + doubts his abilities and chances of confirmation by Senate, 180; + plans to move to New York, 180; + refuses to accept until confirmed by Senate, 181; + finally agrees to serve, 181; + brings family to Washington and enters on duties, 181, 182; + his thoroughness, 182; + exhausts himself by his energy, 182; + sketch of his financial career in Pennsylvania and in Congress, 183, + 184; + his one principle the extinguishment of debt, 184; + publishes sketch of the finances in 1796, 184; + publishes in July, 1800, "Views of Public Debt," etc., 184, 185; + ability of these essays, 185; + outlines policy of expenditures and receipts to Jefferson, 186; + endeavors to systematize treasury statements, 186; + points out economic reasons for increase of revenue, 187; + urges specific appropriations by Congress and absence of departmental + discretion, 187; + urges reduction, both of debt and of taxes, 188; + unable to work with other departments because of Jefferson's habits, + 188; + lack of elasticity in his plans, 189; + embarrassed by complications in department, 189; + his first report to Congress, 190; + denies existence of any surplus, 190; + explains plan for extinction of debt by 1817, 191; + given authority by Congress, 192; + table showing success of his measures, 192; + in spite of Louisiana purchase, reduces debt by one third, 192, 194; + dissatisfied with financial terms of Louisiana purchase, 193; + novelty of his distinction between place of payment of interest and + principal, 195; + arranges that Louisiana debt shall not retard payment of old debt, 196, + 197; + his report of 1805, 107; + proposes funding of outstanding obligations in 1807, 198; + reports a full Treasury on occasion of threatened war with England, + 198; + discusses application of surplus to war expenses, 199; + suggests methods of war taxation, 200; + prefers war to embargo, 201; + draws the embargo bill, 201; + discusses its financial effect, 201, 202; + confident attitude as to war loans, 202; + his policy supported by Jefferson, 203; + realizes that war will prevent reduction of debt, 203, 204; + relies on customs, tonnage dues, and land sales for revenue, 204; + reports deficiency owing to embargo, 204; + forced to borrow, 204; + reviews situation in 1811 with satisfaction, 205, 206; + asks for increase of revenue in case of war, 206; + proposes war loans, 207; + and interest-bearing treasury notes, 207; + insists on actual increased receipts, not apparent measures, 207, 208; + on necessity of upholding credit, 209; + receives authority from Congress, 209; + submits war budget, 209, 210; + his last annual statement in 1812, 211; + reports need of new loans, 212; + his personal friends, Parish, Girard, and Astor, save government credit, + 213, 214; + fails to negotiate loan at par, 214; + failure of his hopes to extinguish debt, 215; + his policy vindicated by successors, 215; + charged with sacrificing defenses of country to reduction of debt, 216; + attempted defense of his course by "Democratic Review," 216; + his determination to follow financial principles and not a partisan + course, 216, 218; + does not invent new sources of revenue, 218; + his estimates follow those of Hamilton, 219; + estimates permanent revenue, 220; + unable to abandon internal revenue, 220; + does not protest against its abolition by Congress, 221; + does not alter estimates in spite of increase of revenue, 221; + proposes additional tax to meet war with Tripoli, 222; + applies surplus as far as possible to Louisiana purchase, 222; + political effect of his success during Jefferson's first term, 223; + in 1805 raises estimate of permanent revenue, 223; + impresses economy upon other departments, 223; + prepares scheme of internal improvements, 224; + after Chesapeake affair recommends borrowing, 224; + and doubling duties in case of war, 225; + receipts during his second term, 226; + his warning of diminished resources in future ignored by Jefferson, + 226; + estimates for 1809, 228; + points out necessity of submitting to war or loss of foreign trade, + 228, 229; + promises not to use internal taxes, 229; + reports diminished income and deficiency in 1809, 230; + declares for a strict enforcement or abandonment of embargo, 230; + disgusted at refusal of Congress to recharter United States Bank, 231; + tenders resignation to Madison, 231; + obliged to remain for lack of possible successor, 231; + continues to advocate increased customs, 232; + points out that, had his recommendations been followed in 1809, there + would have been a large surplus, 232, 233; + forces Congress to choose between a bank or internal taxes, 233, 234; + himself proposes internal taxes, 234; + his last report predicts deficiency and asks a loan, 235; + his recommendations of internal taxes disregarded, 235; + his previous use of Hamilton's internal taxes, 235; + his suggestions followed in 1813, 236; + connection with sale of public lands, 238; + unable fully to utilize this resource, 239; + earliest public advocate of free trade, 240; + later in career becomes leader of cause, 241; + his part in convention of 1831, 241; + draws memorial to Congress, 242; + his views followed in tariff of 1846, 242; + opposed to protection, 242; + violently attacked by Clay, who apologizes, 242; + introduces reforms in annual report, 245; + tries to induce Congress and departments to adopt scheme of minute + appropriations, 245, 246; + carries system into his own household, 246; + effects of his methods, 247; + on Jefferson's dislike of banks, 251; + his report of 1809 on Hamilton's bank, 252, 253; + suggests its renewal, with modifications, 253, 254; + his testimony as to its value, 255, 256; + estimate as to state banks in 1811, 258; + describes hostility of Astor to bank, 259; + left, by failure to renew bank charter, at mercy of capitalists, 260; + his opinion that absence of bank caused suspension of specie payments + in 1815, 262; + on Jefferson's proposal to issue paper money, 264; + his success a vindication of Federalist finance, 266; + opinion of services of second national bank, 266; + declines offer of secretaryship in 1816, 266, 267; + urges Madison to restore specie payment, 267; + declines position as president of Bank of United States in 1822, 268; + prepares statement of relative value of gold and silver, 268; + writes "Considerations on Currency and Banking," 268; + advocates use of specie and limited use of paper money, 268; + accepts presidency of National Bank of New York, 269; + his opinion of Jackson, 270; + his bank involved in panic of 1837, 272; + conducts resumption, 273; + chairman of committee of banks, 273; + submits reports, 275; + declines presidency of Bank of Commerce, 276; + resigns presidency of National Bank, 277; + publishes "Suggestions on Banks and Currency," 277; + condemns paper money, 277; + declines offer of Treasury Department from Tyler, 278; + in the cabinet, agrees with Republican leaders on all points except + bank, 279, 280; + prepares circular announcing disregard of party in appointments, 281; + and condemning political influence of officials, 281; + his policy opposed by Jefferson, 282; + obliged to follow cabinet in policy of partisan appointments, 282; + advises early preparation for campaign of 1804, 283; + wishes States divided into election districts, 283; + criticises annual messages of Jefferson, 283; + his proposal to appoint a woman to office condemned by Jefferson, 283; + suggests in vain regular cabinet consultations, 283, 284; + urges payment of tribute to Tripoli rather than war, 284; + opinion asked on points of constitutional law, 284; + holds inherent right of United States to acquire territory, 285; + disapproves of Texas annexation, 285; + advises Jefferson concerning Louisiana treaty, 285, 286; + attacked by Duane, for not turning out Federalists, 286; + absence of favoritism in his appointments, 286, 287; + supervises sale of lands, 287; + acquaintance with Choteau, 278; + drafts promise of protection for Astor's fur trade, 288; + opposes vainly Jefferson's gunboat scheme, 289; + submits plan of defense against England, 289; + urges moderate tone in message, 290; + devises scheme of internal improvements, 290; + doubts success of a National University, 291; + opposes a permanent embargo, 291; + prepares Campbell's report urging resistance, 292; + receives authority from Congress to enforce non-intercourse, 293; + favors war, 293; + submits "Notes on Political Situation," 294; + opposes ordering out naval force in favor of letters of marque, 294; + his appointment as secretary of state prevented by Republican + opponents in Senate, 294, 295; + continues to advise Madison, 295; + his measures meet opposition in Senate, 295; + deserted by Madison in his attempt to secure re-chartering of bank, + 296; + tenders resignation, 296; + bitterly attacked in "Aurora," 297; + accused of dominating Madison and of corruption, 297, 298; + considered by Jefferson ablest man in administration except Madison, + 298; + unable to command support in Congress, submits to war policy, 298, + 299; + asks leave of absence and appointment as minister to Russia, 299; + attempts made to alienate him from Jefferson and Madison, 299; + his high regard for Jefferson, 300; + continued good terms with Madison, 300. + +_Minister to Russia; Treaty of Ghent._ + His voyage with Bayard, 301; + visits Gottenburg and Copenhagen, 301; + at St. Petersburg meets J. Q. Adams, 302; + his knowledge of history, 302; + lack of diplomatic experience as compared with Adams, 302; + contrast in character with Adams, 303; + considers peace necessary because of inefficiency in conduct of war, + 303; + abandons his former opposition to a navy, 303; + low opinion of English diplomacy, 304; + view of necessity of an English renunciation of impressment, 305; + writes to Barings, 305; + receives Baring's reply, 306, 307; + explains case to Romanzoff, 307; + assured by Moreau of imperial sympathy, 308; + warned by him of England's purposes, 308; + writes to Monroe asking instructions, 308, 309; + informs Baring of inability to negotiate except through Russia, 309; + writes to Moreau, 309, 310; + instructs Dallas as to duties in London, 310; + receives news of refusal of Senate to confirm his nomination, 310; + contemplates visit to London, 311; + hears that British government proposes to treat directly, 311; + unable to return home, 312; + journey to Amsterdam, 312; + not at first included in second commission, but later added, 312; + visits London, 313; + learns of arrival of Clay and Russell, 313; + urges Lafayette to mediate, 313; + wishes to change place of negotiation from Gottenburg, 314; + urges Crawford to secure interposition of emperor, 315; + receives letter from Lafayette through Humboldt, promising aid, 315; + makes official appeal to emperor, 315; + learns of refusal of England to admit intervention, 316; + warns Monroe of English preparations, 316; + visits Paris, 316; + meets British commissioners at Ghent, 316; + notifies Monroe of determination of England to dismember United States + and attack New Orleans, 317, 318; + despairs of peace, 318; + draws reply of commissioners rejecting British demands, 319; + explains reasons for willingness to discuss Indian article, 319, 320; + condemns burning of public buildings at Washington, 320; + expresses confidence in American securities, 320; + has difficulty in mediating between Clay and Adams on fisheries and + Mississippi navigation, 322, 323; + proposes engagement to abandon use of savages in future war, 323; + the credit of treaty due to him, 324; + his diplomatic skill, 324; + wins European admiration, 325; + visits Geneva, 325, 326; + sees Napoleon during Hundred Days, 326; + appointed minister to France, 326; + with Clay and Adams negotiates commercial convention, 326, 327; + friendly attitude of Castlereagh toward, 326; + on value of abolition of discriminating duties, 327; + returns to New York, 327; + withholds acceptance of French mission, 327; + describes to Jefferson European opinion of United States, 327; + describes condition of France after Revolution, 327, 328; + does not consider republican form of government suitable everywhere, + 328; + weary of politics, declines nomination to Congress, 329; + declines French mission on ground of poverty, 329; + finally yields to Monroe's requests, 329; + refuses offer of Treasury Department, his reasons, 330; + rejoicings of Jefferson over his appointment, 331. + +_Minister to France._ + Received by Richelieu, 331; + discusses American sympathy for Bonaparte, 331, 332; + received by Louis XVIII., 332; + familiar relations with royal family, 332; + negotiates for indemnity for seizures, 332; + annoyed by French demand for dismissal of a disrespectful American + postmaster, 333; + advises Adams and Eustis in negotiations, 333; + returns to Paris, 334; + with Rush conducts negotiations with England, 334, 335; + tries to explain Jackson's occupation of Pensacola, 336; + refuses to mediate with France between Spain and revolted colonies, + 336; + points out disadvantages of war with Spain, 337; + succeeds in pacifying French indignation at seizure of Apollon, 338; + does not adopt Adams's line of defense, 338; + Adams's opinion of, in diary, 338, 339; + his opinion of Adams, 329; + continues to negotiate with regard to commerce, 340; + loath to return without success, 340; + criticises Adams's terms of French treaty as unfavorable, but advises + signing, 340; + fails to secure satisfaction and returns to America, 341; + settles at Friendship Hill, 341; + pressed by Monroe to return to France, 341, 342; + declines mission to Panama Congress, 342. + +_Minister to England._ + Appointed envoy and minister, with liberty to return on completion of + negotiations, 342, 343; + secures modification of instructions, 343; + complains of peremptory character of instructions, 344; + his voyage, 344; + dislike of English and French diplomacy, 344; + learns of English resentment at tone of American ministers, 344, 345; + negotiates with Canning, 345; + asks for instructions as to renewal of convention of 1815, 345; + pleased with ability of Lawrence as _charge d'affaires_, 346; + his threat of war quoted by Chateaubriand, 346; + warned by Adams to yield nothing, 346; + concludes negotiation with Goderich, 347; + thinks Canning meant to discuss impressment, 247; + returns to America, congratulated by Adams, 348; + his social life in London, 348; + ready to accept French mission in 1834, 349; + prepares argument in Northeastern boundary arbitration, 349; + publishes an account of facts in the case, 349; + visited by Ashburton, 350; + publishes pamphlet on Oregon question, 351; + presides at meeting to protest against annexation of Texas, 351; + condemns Mexican war, 352; + publishes pamphlet concerning it, 352; + condemns "manifest destiny" talk, 352, 353. + +_Republican Leader._ + His opinion of contemporary political leaders, 355, 356; + prefers Crawford to Adams, 356; + requests Macon to take + part in caucus for Crawford, 356; + thinks universal suffrage compensates for dangers of consolidation, 356; + accepts reluctantly nomination for vice-president, 357; + dislikes formality of nomination, 357; + withdraws to help ticket, 358; + considers the election to prove decease of Republican party, 359; + condemns Jackson's violations of law, 359; + favors an insignificant or weak executive, 359; + visits Washington in 1829, notes disappearance of old regime, 330. + +_Society, Literature, Science._ + His land speculations not profitable, 351; + plans Genevese Colonization Association, 361; + loses money through Morris's failure, 362; + speculates in Virginia military lands, 362; + estimates value of estates, 362, 363; + ill at ease in general society, 363; + his establishment at Washington described by Irving, 363; + house burned by British, 364; + builds at Friendship Hill, finds it lonely in winter, 364; + visited by Lafayette in 1825, 364, 365; + settles permanently in New York, 365; + frequent changes of residence, 365; + devotes last years to scientific studies, 366; + conversational ability, 366; + chosen member of "The Club," 366, 367; + leads conversation, 367; + described by Irving, 368; + wishes to establish free university in New York, 368; + presides over council of New York University, 369; + resigns, owing to clerical opposition, 370; + continued interest in French politics, 370; + letter of Lafayette to, on marriage of his daughter, 371; + assists Polish refugees, 372; + interested in Indian customs, 373, 374; + writes for Humboldt a synopsis of Indian tribes, 374; + publishes Indian vocabularies, 375; + issues circulars inviting information, 375; + correspondence with individuals, 375, 376; + republishes Synopsis, 377; + scientific character of his results, 377, 378; + his advice requested concerning Smithson's bequest, 378; + its publications submitted to him, 378, 379; + founds American Ethnological Society, 379; + defrays cost of publishing its transactions, 379; + essay on nations of Mexico and Central America, 380; + authorizes General Scott to purchase documents in Mexico, 380; + writes introduction to Hale's "Indians of Northwest America," 380; + gathers information regarding gold in America for Humboldt, 381; + describes his reasons for success, 381; + his caution in reasoning, 382; + fails to establish a literary periodical, 382; + chosen president of New York Historical Society, 382; + his inaugural address on course of United States History, 382-384; + opinion of Washington, 383, 384; + friendly greeting to Adams in 1844, 384; + eulogized by Adams, 384, 385; + his party career contrasted with that of Adams, 385; + personal appearance and portraits, 385, 386; + crushed by loss of wife, 387; + death, 387; + eulogized by Bradish before Historical Society, 388; + acknowledges indebtedness to Bentham, 388; + his brain, 389; + summary of character and services, 389. + +_Characteristics._ + General estimates, 1, 388, 389; + unfriendly views of, 90, 297, 338; + his own estimate, 381; + ambition, 5, 10, 58, 127, 180, 328; + business ability, 28, 60, 361, 362; + cosmopolitanism, 7, 389; + courage, 75, 76, 84; + debt, aversion to, 21; + diplomatic ability, 303, 324, 325, 330, 345; + financial ability, 45, 179, 185, 215; + friendliness, 24, 30, 300, 372; + geography, love of, 16; + history, love of, 3, 302; + indolence, 43; + leadership, 128, 133, 159, 167, 357; + literary interest, 382; + maturity, early, 31; + partisanship, 140, 147, 167; + personal appearance, 385, 386, 389; + political shrewdness, 76, 95, 128, 357; + social habits, 44, 348, 363, 367, 368; + temper, evenness of, 65, 152, 154, 303, 324; + thoroughness, 182, 381. + +_Political Opinions._ + Alien Bill, 152, 158; + appointments to office, 281, 282, 286, 359; + army, 108, 123, 129, 180, 303; + Bank of United States, 231, 252-256, 262, 266, 296; + banking, 256, 268, 273, 277; + cabinet, 188, 222, 245, 283; + coinage, 140, 268; + Congress, powers of, 109, 110, 112, 143, 144, 153, 161; + constitution of Pennsylvania, 41, 42; + debt, public, 45, 125, 126, 191, 203, 205, 208, 222, 269; + democracy, 6, 8, 10, 33, 34, 42, 48, 55, 126, 389; + education, 45, 291, 368-370; + election of 1800, 164-166; + embargo, 201, 206, 230, 291; + England, diplomacy of, 304, 344; + England, policy toward, 228, 292, 310, 327, 337, 343-347; + ethnology, 373-381; + excise, 53, 80; executive, 144-146, 359; + Federalist party, 119, 129, 139, 140, 164, 179; + financial measures of Hamilton, 184, 185; + foreign correspondence bill, 155; + foreign ministers, 142, 143, 145, 147; + France, diplomacy of, 304, 344; + France, policy toward, 134, 135, 148, 149, 157, 159, 167, 310, 332, + 333, 338, 340; + free trade, 240-243; + French Revolution, 56, 76, 139, 328; + gunboat scheme, 289; + impeachment, 138; + Indians, 108, 122, 320, 323, 373-381; + internal improvements, 45, 224, 290; + Jacksonian democracy, 359; + Jay treaty, 119, 136; + manifest destiny, 352; + Mexican war, 352; + military matters, 137, 289; + money, relation to wealth, 260; + navy, 123, 124, 130, 137, 186, 303; + northeastern boundary, 347-349; + northwest boundary, 343, 347, 351; + panic of 1815, 262; + paper money, 46, 207, 264, 267, 268; + party management, 38, 41, 95, 128, 164, 359; + peace, 149, 150, 167, 284; + public lands, 46, 122, 238, 239; + Republican party, 355, 359; + revenue, internal, 221, 233, 234; + revenue, sources of, 187, 223, 232; + Sedition Act, 152, 158, 159; + slavery, 47, 140; + Spain, policy toward, 336, 337; + suffrage, 42; + surplus, use of, 206, 216; + taxation, 123, 199, 200; + Texas annexation, 351; + territory, constitutional power to acquire, 285; + Treasury, administration of, 64, 106-108, 125, 130, 154, 189, 205, + 208, 217, 245-247; + treaty of Ghent, 317, 318, 319, 323; + treaty power, 114; + United States, history of, 382, 383; + war of 1812, 320; + war finances, 190, 200, 203, 207, 208, 222, 224, 229, 232, 234, 298; + Whiskey Insurrection, 94. + +Gallatin family, 2; + prominence in Geneva, 2; + military reputation, 2; + interest in all its members, 8; + on oligarchic side in Genevese politics, 10; + alarmed at report of Gallatin's death, 27; + visited by Gallatin in 1814, 326; + claims Roman descent, 386 n. + +Gallatin, Frances, marries B. K. Stevens, 371; + Lafayette's letter of congratulation to, 371; + considered "a beauty" at French court, 372. + +Gallatin, James, accompanies his father to Europe, 301. + +Gallatin, Jean, father of Albert Gallatin, 2; + his death, 2. + +Gallatin, P. M., guardian of Albert, 10; + his kindness on Gallatin's departure for America, 11; + promises to aid him, and forwards letters of recommendation, 11. + +Gallatin, Susanne Vaudenet, grandmother of Gallatin, her character, 7; + friend of Frederick of Hesse-Cassel and of Voltaire, 7; + controlling spirit of family, 8; + quarrels with Albert over his refusal of a Hessian commission, 8. + +Gambier, Lord, on English peace commission, 316. + +Gardner, John L., at free-trade convention, 241. + +Genet, Edmond C., effect of his intemperance on parties, 57; + marries daughter of George Clinton, 102; + aids Democratic societies, 102; + condemned by Federalists, 134. + +Geneva, place of Gallatin family in, 2; + education in, 2, 3; + religious spirit of, 3; + a resort of foreigners, 4; + political situation in, 6, 7, 10; + parties in, 10; + revolutions in, 20, 361; + government of, 33; + visited by Gallatin, 325, 326; + colonization from, planned by Gallatin, 361. + +Geneva Academy, studies of Gallati in, 2, 3; + his friends at, 4, 5. + +Germans, in Pennsylvania, oppose improvement of education, 45. + +Gerry, Elbridge, on French mission, 139; + remains to negotiate loan, 152. + +Gibbs, ----, member of Ethnological Society, 379. + +Gilbert, Ezekiel, on Committee on Finance, 107. + +Giles, William B., Republican leader in debate, his character, 100, 133; + bitterly opposes address to Washington, 128, 129; + in debate on relations with France, 135; + loses leadership to Gallatin, 140. + +Gilman, Nicholas, on Committee on Finance, 106. + +Girard, Stephen, assists Gallatin to float loan, 213, 214; + his reasons, 259. + +Goderich, Lord, renews convention of 1815 with Gallatin, 347. + +Goldberg, ----, Dutch commissioner to make commercial treaty, 334. + +Goodhue, Jonathan, at free-trade convention of 1831, 241. + +Goodhue, ----, member of "The Club," 367. + +Goodrich, Chauncy, in Congress, 99; + in debate on foreign relations, 143; + on resolution to punish foreign correspondence, 156. + +Goulburn, Henry, on English peace commission, 316; + informed of American request for instructions, 318; + told by Castlereagh and Liverpool to moderate his demands, 319; + protests against acceptance of Indian article, 321. + +Grenville, Lord, sends Fauchet letter to Washington, 103; + connection with Jay treaty, 117, 350; + his proposition to Pinckney, 134. + +Griswold, Roger, attacks Gallatin's account of sinking fund, 65; + leader of Federalists in House, 98, 133; + replies to Gallatin in debate on treaty power, 113; + his collision with Lyon, 141; + on doctrine of checks, 143; + on bill to punish foreign correspondence, 156; + on Senate bill to require annual financial reports, 161. + +Gunboats, Jefferson's scheme for, 288; + origin of his idea, 288; + opposed by Gallatin, 289. + +Gurney, ----, in Pennsylvania legislature, 183. + + +Hale, ----, introduction to his work on Indians written by Gallatin, + 380. + +Hamilton, Alexander, his career compared to that of Gallatin, 28, 32; + amends excise law, 52; + demands punishment of Pittsburgh leaders of opposition, 53, 54; + drafts proclamation against them, 54; + attacked by Gallatin in Senate, 64; + deprecates demand for minute information, 64, 65; + submits plan for crushing insurgents, 76, 77; + impatient at delay, writes as "Tully" advocating punishment, 87; + accompanies army to Pittsburgh, 88; + investigates insurrection, 90; + fails to find indictment against Gallatin, 90; + dissuades troops from violence, 92; + resigns from Treasury, 97; + continues to lead party, 99; + stoned in defending Jay treaty, 103; + letters of Wolcott to, complaining of Republican opposition, 126, 154; + attends Congress as general, 155; + his influence on government, 168, 169; + review of his career in the Treasury, + 174-176; + his place in history, 176; + his enmity to Gallatin, 179; + attacks of Gallatin upon his system, 184, 185; + his revenue system maintained by Gallatin, 218, 234; + and reenacted by Democrats in 1813, 235; + his report on public lands, 237, 238; + his organization of Treasury Department, 243; + his financial reports, 245; + on Bank of North America, 249; + his report on national bank, 250, 251. + +Hamilton, J. C., accuses Gallatin of cowardice in Whiskey Rebellion, 84. + +Harper, Robert Goodloe, leader of Federalists in House, 98, 133; + denounces call for Jay treaty papers as unconstitutional, 111, 112; + closes argument on Federalist side, 114; + recognizes Gallatin as leader of Republicans, 115; + in debate on relations with France, 134, 135; + called a "bungler" by Gallatin, 140; + moves appropriation for foreign intercourse, 141; + his share in debate, 142, 146; + introduces bill to suspend intercourse with France, 151; + altercation with Gallatin over Alien Bill, 152; + on resolution to furnish foreign correspondence, 156; + on Senate bill to require annual financial reports, 161. + +Harvard College, gives Gallatin permission to teach French, 17; + his connection with, 18; + gives Gallatin certificate, 18. + +Hassler, Ferdinand Rudolph, superintendent of coast survey, 290. + +Hawks, ----, member of Ethnological Society, 379. + +Henry, Patrick, recommends Gallatin to county surveyor and commissions + him to locate lands, 24; + advises Gallatin to go West, predicts success, 29. + +Henry, Prof. Joseph, letter of Gallatin to, on Squier and Davis's + "Ancient Monuments," 379. + +Hillhouse, James, Federalist in Congress, 99; + on committee on finance, 107. + +Holland, vain attempt to sign commercial treaty with, 334; + arbitrates northeast boundary, 347, 349; + its decision rejected, 349. + +House of Representatives, leaders of, in 1795, 98-100; + debate in, over conduct of Washington's administration, 104-106; + appoints Committee on Finance, 106, 107; + debate in, on principle of appropriations, 108, 109; + motion of Livingston to call for papers in Jay treaty brings on debate + on treaty power, 109-114; + asserts right to withhold appropriations, 115; + considers foreign treaties separately, 118; + debates Jay treaty, 118-121; + votes to carry treaty into effect, 121; + but condemns it, 121; + refuses to adjourn on Washington's birthday, 126; + adopts address complimentary to Washington, 129; + new members in fifth Congress, 132; + debates President's message on relations with France, 133-136; + votes to support administration, 136; + considers measures of defense, 137; + impeaches Blount, 138; + entertained by Adams, 140; + encounter in, between Lyon and Griswold, 141; + debate in, on foreign missions, 141, 142; + on relation of executive to Congress, 142-147; + rejects amendment to abolish foreign missions, 147; + debates war with France, 148; + requests President to furnish correspondence of envoys to France, 148; + receives X Y Z dispatches, 149; + altercation in, between Gallatin and Allen, 150; + passes Alien Bill, 152; + message of Adams to, on resumption of diplomatic intercourse + with France, 152; passes bill abrogating treaty with France, 154; + debates and passes bill to punish foreign correspondence, 155, 156; + debates and passes bills to favor French West Indies, and punish Spanish + and Dutch ports, 156, 157; + refuses to repeal Sedition Act, 157; + new members in sixth Congress, 158; + replies to President's address, 158; + refuses to repeal Sedition Law, 159; + passes bill to suspend intercourse with France, 159, 160; + votes a medal to Truxton, 160; + refuses to amend Foreign Intercourse Act, 160, 161; + debates and passes Senate bill to require annual Treasury reports, 161; + refuses to continue non-intercourse, 162; + again rejects bill to amend Sedition Act, 162; + part played by Gallatin in, 167, 168; + investigates Wolcott's management of Treasury, 177. + +Howell, Richard, leads New Jersey militia against Whiskey Rebellion, 88. + +Humboldt, Baron Alexander von, aided in study of precious metals in + America by Gallatin, 278, 374, 381; + brings Lafayette's letter to Gallatin, 315; + meets Gallatin in Washington, 315; + speaks of Gallatin's "glory," 325; + letter to Gallatin, 381. + +Husbands, Herman, on committee on resolutions of Parkinson's Ferry + meeting, 80. + +Huskisson, William, on impressment, 347. + + +Impressment, Gallatin's opinion of, 122; + its abandonment by England insisted on by Monroe, 305; + refused consideration by England, 322, 327, 335, 347. + +Indians, relations of Gallatin with, at Machias, 15; + trading posts with, opposed by Gallatin, 108; + Wayne's treaty with, 117, 118; + danger of war with, in 1795, 120, 121; + Gallatin's opinion of, 122; + influence of Choteau over, 287; + fur trade of Astor with, 288; + proposals of England concerning, in treaty of Ghent, 317, 319, 321; + studies of Gallatin concerning, 373-378; + the Canadian Indians, 373; + tribes of, classified by Jefferson, 374; + "Synopsis of Indian Tribes" by Gallatin, 374; + vocabularies collected by Gallatin, 375, 376; + studies of Du Ponceau concerning, 377; + republication of Gallatin's "Synopsis," 377; + his essay on Indian civilization, 380; + his introduction to Hale's work on, 380. + +Ingham, Samuel D., report of Gallatin to, on gold and silver, 268. + +Internal improvements, Gallatin's scheme for, 224, 290; + urged by Jefferson, 226, 227, 290; + inconsistency of Jefferson, 227. + +Irish, petition against Sedition Act, 157. + +Irving, Washington, describes Mrs. Gallatin's manners and appearance, + 363, 364; + describes Gallatin in old age, 368. + + +Jackson, Andrew, votes against complimentary address to Washington, 129; + his appearance described by Gallatin, 129 n.; + orders removal of deposits, 270; + Gallatin's opinion of, 270, 355; + occupies Pensacola, 336; + refuses to appoint Gallatin to French mission, 349; + candidate for president in 1824, 358; + defeated for president by Adams, 358; + his idea of party, 359; + Gallatin's opinion of, 359; + character of his presidency, 360. + +Jackson, F. J., his mission to United States, 295. + +Jay, John, asked by Jefferson for information concerning Gallatin, 27; + drafts letter for New York Convention calling for a new convention, + 37 n.; + burnt in effigy after his treaty, 103; + his purpose in making treaty, 117; + said by Sheffield to have duped Grenville, 117; + his warning remark to Randolph during negotiations, 118; + attacked by Gallatin, 119. + +Jay, William, member of "The Club," 366. + +Jay treaty, ratified, 102; + made public by Mason, 103; + popular dissatisfaction with, 103, 116; + sent to House, 109; + condemned in England, 117; + debate over, 118-121. + +Jefferson, Thomas, in behalf of Gallatin family writes to Jay for + information concerning Albert Gallatin, 27; + countersigns Washington's proclamation against excise rioters, 54; + retires from cabinet, 97, 99; + rupture with Hamilton, 99; + imbued with French principles, 102; + ridiculed as a sans-culotte, 104; + influence complained of by Wolcott, 127; + tries to moderate bitterness of Republicans, 128; + Gallatin known to be in his confidence, 133; + complains of weakness of Congress, 138; + unable to influence Senate, 139; + loses taste for French alliance, 139; + thinks Sedition Bill aimed at Gallatin, 152; + praises Gallatin's courage, 158; + receives tie vote with Burr, 163; + probably makes bargain with Federalists, 164; + his inexplicable submission to Smith, 164; + elected, 167; + in triumvirate with Madison and Gallatin, 168; + represents social equality, 169; + his suggestions on coinage, 172; + urges Gallatin to accept Treasury Department, 178-180; + letter to Macon, 182; + suggestions of Gallatin to, on financial policy, 186; + not a practical statesman, 188; + does not consult cabinet as a whole, 188; + letters of Gallatin to, on finances, 189, 193, 201, 203, 216; + summons Congress to ratify Louisiana purchase, 195; + reelection helped by finances and Louisiana treaty, 197, 198, 223; + urges Gallatin to retain post until extinction of debt, 203; + wishes reduction of army and navy, 220; + advocates application of surplus to internal improvement, 226; + in so doing abandons his principles, 227; + detests bank, 233, 251, 280; + proposes impracticable economies in Treasury Department, 244; + suggests issue of paper money, 264; + an abandonment of republican principles, 266; + introduces new principles of administration into government, 279; + opposes Gallatin's civil service circular, 281; + proposes to fill one half of offices with partisans, 282; + submits draft of annual message to cabinet, 283; + objects to appointing a woman to office, 283; + lack of system in his cabinet, 284; + does not consult Gallatin on military matters, 284; + agrees with Gallatin's view on acquisition of territory, 285 + advised by Gallatin concerning Louisiana treaty, 285; + unfortunate in choice of political methods, 286; + friendly with Duane, 286; + promises to protect Astor, 288; + his gunboat scheme, 288, 289; + origin of his views on gunboats, 288; + his plan of internal improvements, 290; + recommends national university, 291; + wishes amendments to Constitution, 291; + advised by Gallatin not to rely on "general welfare" clause of + Constitution, 291; + shirks responsibility of decision with regard to English policy, 291, + 292; + urged by Gallatin to enforce non-intercourse, 293; + calls Gallatin ablest man in administration except Madison, 298; + regard of Gallatin for, 300; + his love for Gallatin, 300; + letters of Gallatin to, on reputation of United States in Europe, 327; + on France, 327, 328; + letter of Gallatin to, on difficulty of withdrawal from public service, + 329; + rejoices in Gallatin's acceptance of French mission, 331; + his opinion of Louis XVIII., 331; + relations with de Tracy, 331; + supports Crawford for presidency, 356; + favors state rights, 356; + does not appreciate decay of his party, 358; + on non-sectarian education, 369; + his remarks on Indians in "Notes on Virginia," 374; + on Washington's strong passions, 383 n. + +Johannot, ----, educated at Geneva, 4, 17. + +Johnston, ----, member of "The Club," 366. + +Jones, William, secretary of navy, 312. + + +Kent, Chancellor James, member of "The Club," 366. + +King, Charles, member of "The Club," 367. + +King, Rufus, resigns mission to England, 342; + tone of his correspondence, 345. + +Kinloch, Francis, educated at Geneva, 4; + letter to, given by Mlle. Pictet to Gallatin, 11. + +Kirkpatrick, Major, defends United States marshal in Whiskey + Insurrection, 68; + his farm burnt by rioters, 73. + +Kittera, Thomas, moves hostile amendment to pro-French resolution, 135. + +Knox, Henry, resigns from War Department, 97. + +Kosciusko, his nephew helped by Gallatin, 372. + +Kramer brothers, in business with Gallatin, 60. + + +Lands, public, in Pennsylvania, 46; + suggestions of Gallatin as to improved methods of sale, 122, 123; + how acquired, 237; + sales under Hamilton and successors, 238; + organization of sales by Gallatin, 238, 239, 287. + +Land speculation, in Virginia, 20, 21, 24, 361; + in Ohio, 362. + +Lafayette, Marquis de, his motives for aiding colonies, 9; + his imprisonment, 102; + saved by gunboats in 1781, 288, 289, 371; + urged by Gallatin to help mediate between England and United States, + 313; + urges emperor of Russia to exert personal influence with England, 315; + sends letter to Gallatin, 315; + letter of Gallatin to, on French government, 328; + visits Pennsylvania, 364; + entertained by Lafayette at Friendship Hill, 365; + his part in Revolution of 1830, 370, 371, 372; + interested in marriage of Gallatin's daughter, 371; + letter to Gallatin, 371, 372. + +La Perouse, meets Gallatin at Machias, 16; + later meets him in Boston, 16. + +Laurens, John, educated at Geneva, 4. + +La Vengeance, captured by Constellation, 160. + +Lawrence, William B., gives anecdote of Washington and Gallatin, 22; + accompanies Gallatin to England, 344; + his ability as secretary, 346; + presides at anniversary meeting of New York Historical Society, 384. + +Lee, Henry, commands militia against Whiskey Rebellion, 88; + requires oath of allegiance, 89; + orders seizure of leaders, 90. + +Lee, Thomas, founder of Ohio company, 20. + +Legislature of Pennsylvania, calls Constitutional Convention, 40; + Gallatin's career in, 45-47, 55, 60; + rejects bill to improve education, 45; + discharges paper money and other debt, 46; + elects Gallatin senator, 47, 58; + adopts resolutions condemning excise, 48, 49; + protests against authorizing vessels to arm, 149; + divides electoral vote between Adams and Jefferson, 163; + Gallatin's financial report to, 183, 184; + offers to take two millions of United States bonds, 214; + interferes to regulate Bank of North America, 250; + charters Bank of United States, 271. + +Leopard, captures Chesapeake, 224. + +Lesdernier, M. de, flies from Nova Scotia to Machias, 14; + welcomes Gallatin, 14; + on good terms with Indians, 16; + attempt of Gallatin to obtain a pension for, 30; + letter of Gallatin to, 154; + introduces Gallatin to Indians, 373. + +Lesdernier, Madame de, persuades Gallatin to visit Machias, 14. + +Lieven, Count, Russian minister at London, 308; + his friendship with Gallatin, 348. + +Lincoln, Levi, views on unconstitutionality of acquiring territory, 285. + +Livermore, E. S., on committee to consider Gallatin's eligibility to + Senate, 61. + +Liverpool, Lord, advised by Castlereagh to moderate his demands, 319; + does so for fear of healing American dissensions, 319; + accepts settlement of Indian question, 321; + resolves to prosecute war vigorously, 321; + abandons claim to territory and admits defeats, 322; + letter of Castlereagh to, 326; + death, 347. + +Livingston, Edward, prominent Republican in Congress, 100; + his precocity, 100; + calls for instructions for Jay, 109, 110; + votes against complimentary address to Washington, 129; + attacks Adams's foreign policy, 135, 136; + presents petitions against Alien and Sedition Laws, 157. + +Livingston, Robert R., arranges terms of Louisiana purchase, 193. + +Lorillard, Jacob, at free trade convention, 1831, 241. + +Loring, Captain, takes Gallatin to America, 11. + +Louis XVI., executed, 56. + +Louis XVIII., Jefferson's opinion of, 331; + gives audience to Gallatin, 332; + his intimacy with Gallatin and his sarcasm, 332. + +Louisiana, financial effect of its purchase, 192, 193, 195, 196, 222; + effect of its acquisition on England, 224; + constitutional question involved, 285, 286; + occupation of, arranged by Gallatin, 286, 287. + +Lynn, Mary, keeps boarding-house in Philadelphia, 19. + +Lyon, Matthew, his collision with Griswold, 141; + defended by Gallatin, 141. + + +Machias, expedition of Gallatin to, 14, 15; + life at, 15, 16, 17. + +Macon, Nathanael, votes against complimentary address to Washington, + 129; + aids Gallatin in sixth Congress, 159; + moves repeal of Sedition Law, 159; + opposes non-intercourse with France, 159, 160; + letter of Jefferson to, 182; + letter to Nicholson, 293; + tries to pass Navigation Act against English and French decrees, 296; + on decay of democratic principles in 1824, 356, 358. + +Madison, James, secures adoption of ten amendments, 40; + abandons Federalists through Jefferson's influence, 99; + leads Republicans in House, 100; + weakness in debate, 100; + drafts address to Washington, 105; + on Committee on Finance, 106; + advocates bill to establish trading posts with Indians, 108; + moves to amend call for Jay papers, 111; + interprets treaty power + in Constitution in Jay treaty debate, 113, 115; + attacks Jay treaty, 118; + influence complained of by Wolcott, 127; + not reelected to Congress, 133; + his inexplicable submission to Smith, 164; + in triumvirate with Jefferson and Gallatin, 168; + his weakness as financier, 179; + summons Congress, 205; + anxious to evade responsibility for peace or war, 205; + communications on finance from Gallatin, 212, 259; + his indecision as to financial situation, 230; + does not accept Gallatin's resignation, 231; + realizes indispensableness of Gallatin to him, 231; + agrees with Gallatin as to minute appropriations, 245; + vetoes bill to incorporate national bank, 265; + signs a second bill, 265; + his inconsistency, 266; + urged by Gallatin to restore specie payment, 267; + opposes Gallatin's civil service circular, 281; + not superior on constitutional points to Gallatin, 284; + refuses to support Astor's plans, 288; + consults with Gallatin on inaugural address, 294; + forced by senators to abandon plan to make Gallatin secretary of + state, 294, 295; + unable to control party, 295; + favors England as against France, 295; + fails to support Gallatin, his inexcusable weakness, 296; + compelled to choose between Smith and Gallatin, 297; + efforts of Duane to poison his mind against Gallatin, 297; + not qualified to be a war president, 298, 299; + sends Gallatin on Russian mission with leave of absence, 299; + appoints Duane adjutant-general, 299; + continues on good terms with Gallatin, 300; + accepts English offer of direct negotiation, 312; + appoints a new commission, 312; + intends Gallatin for head of commission, 312; + names Gallatin minister to France, 326; + thanked by Gallatin, 327; + leaves him at liberty to decide, 329; + offers Gallatin secretaryship of treasury, 330; + favors Crawford for presidency, 356. + +Malesherbes, C. G. de L. de, his courage compared to that of Gallatin, + 84. + +"Manifest Destiny," Gallatin's opinion of, 352, 353. + +Marie Antoinette, executed, 56. + +Marshall, James, represents Fayette County in anti-excise proceedings, + 51, 52, 69; + joins Bradford in calling out militia, 70; + his resolutions at Parkinson's Ferry meeting disapproved by Gallatin, + 78, 79; + withdraws them, 80; + on committee to confer with United States commissioners, 81. + +Marshall, John, offers Gallatin a place in his office, 29; + on French mission, 139, 152; + elected to Congress, 158; + announces death of Washington, 158; + draws reply to Adams's address, 158. + +Mason, S. T., makes Jay treaty public, 103. + +Mathews, Rev. Mr., member of "The Club," 367. + +Mayer, member of Ethnological Society, 379. + +McClanachan, Blair, chairman of anti-Federalist Conference, 38; + his ultra-democratic remarks to Adams, 138. + +McDuffie, George, estimates profits of bankers on state bank circulation, + 263. + +McKean, Thomas, in Pennsylvania Constitutional Convention, 43; + suggests sending a commission to confer with Whiskey insurgents, 77; + asked to prevent civil war in 1800, 166. + +McLane, Louis, reports extinction of national debt, 269. + +McVickar, ----, member of "The Club," 366. + +Mexico, war with, Gallatin's opinion of, 352. + +Middleton, Henry, at free trade convention of 1831, 241. + +Mifflin, Thomas, in Pennsylvania Constitutional Convention, 43; + deprecates use of force against Whiskey Rebellion, 77; + summons legislature and obtains authority to employ militia, 88; + succeeds by personal influence in filling ranks, 88. + +Mirabeau, Vicomte de, friend of Dumont, 5. + +Mississippi navigation, discussed in treaty of Ghent, 322, 323; + in 1818, 335. + +Mitchell, S. L., on committee to consider Gallatin's eligibility to + Senate, 61. + +Monroe, James, presents flag to French Convention, 132; + arranges terms of Louisiana purchase, 193; + supplants Smith as secretary of state, 296, 298; + on necessity of renunciation of impressment in treaty of peace, 305; + asked by Gallatin for further instructions, 308; + receives proposals from England for direct negotiation, 311; + asked by commissioners for authority to treat in any place, 314; + warned by Gallatin of English war plans, 316, 317, 318; + communications of Gallatin to, during negotiations, 319; + urges Gallatin not to withdraw from public service, 329; + appoints Adams secretary of state, 334; + gives Gallatin leave of absence, 341; + urges him to return to France, 341. + +Montgomery, John, connected by marriage with Gallatin, 59, 60. + +Montmorenci, Vicomte, negotiates with Gallatin, 340; + succeeded by Chateaubriand, 340. + +Moore, ----, member of "The Club," 366. + +Moreau, General Jean Victor, career in America and France, 308; + assures Gallatin of emperor's friendliness and warns him of British + obstinacy, 308; + reply of Gallatin, 309; + his death, 310, 311. + +Morgan, Daniel, leads militia against Whiskey Rebellion, 88, 93. + +Morris, Gouverneur, snubbed by Washington for familiarity, 23; + his precocity compared to Gallatin's, 32; + suggests decimal system, 172. + +Morris, Robert, receives drafts for Gallatin, 28; + in United States Senate announces intention of neutrality on question + of Gallatin's eligibility, 61; + but votes against it, 63 n.; + his rank as financier, 170-173; + plans Bank of North America, 248, 249; + buys land of Gallatin, 361; + settles with Gallatin, 362; + fails and is imprisoned, 362. + +Morse, ----, member of "The Club," 367. + +Morton, Dr., member of Ethnological Society, 379. + +Muhlenberg, Frederick A., defeated for speaker by Dayton, 98; + gives casting vote in favor of Jay treaty appropriations, 121. + +Mueller, Johann von, teaches Gallatin history, 3. + +Murray, William Vans, prominent Federalist in House, 99; + on finance committee, 106; + denies discretionary power of House over Jay treaty, 110. + + +Navy, opposed by Gallatin, 123, 124, 130, 137, 157, 186, 188; + his course defended, 216; + gunboat scheme, 288, 289. + +Nesselrode, Count, leaves Russian foreign affairs in charge of + Romanzoff, 304; + inability of Crawford to secure audience with, 315. + +New England, supports Adams in 1800, 163; + refuses to support popular loan, 212, 213; + plans disunion, 213; + hoards specie, 260, 261; + opposes embargo, 293; + its secession hoped for by England, 313. + +New York, calls for a second Federal Convention, 36, 37; + Republican in 1800, 163. + +New York city, first visit of Gallatin to, 18; + abandoned by Congress for Philadelphia, 47; + protests against Jay treaty, 103; + settlement of Gallatin in, 365, 366; + social life in, 366-368; + attempt of Gallatin to establish a university in, 368, 369. + +New York Historical Society, presidency of Gallatin, 382; + his inaugural address to, 382-384; + celebration of its fortieth anniversary, 384; + honors Gallatin's memory, 388. + +Nicholas, John, Republican leader in + House, 100; + on treaty power, 111; + supports Gallatin in advocating specific appropriations, 130; + moves amendment to Adams's message, 134; + in debate on French relations, 135; + desires to limit executive through power over appropriations, 143; + aids Gallatin in sixth Congress, 159; + opposes non-intercourse with France, 159; + resists supposed encroachment of Senate on House, 161; + confers with Jefferson and Gallatin on election of 1800, 164. + +Nicholson family, connected by marriage with Gallatin, 59. + +Nicholson, Hannah, marries Gallatin, 59; + described by him, 59; + her relations to her husband, 59; + letters of Gallatin to, 138, 180; + unhappy in Fayette County, 180; + her property, 363; + unfit for frontier life, 363; + her success in Washington society, 363, 364; + her death, 386, 387. + +Nicholson, Commodore James, father-in-law of Gallatin, his family, 59; + visited by Gallatin after marriage, 60; + on Gallatin's political moderation, 138; + commands gunboats in Lafayette's campaign of 1781, 371. + +Nicholson, James Witter, in business with Gallatin, 60. + +Nicholson, Joseph H., letter of Gallatin to, on war revenue, 224; + furnished by Gallatin with questions to ask himself, 246; + letter of Macon to, 293. + +Non-importation, difficulty of enforcement in 1774, 293; + enforced by Gallatin in 1808, 293. + +Norris, Isaac W., at free trade convention, 241. + + +Odier, ----, takes shares in Gallatin's land scheme, 361. + +Ohio Company, its formation and lands, 20. + +Oregon question, discussion over, in 1818, 335; + discussed in 1826, 343; + determination of Adams not to give way in, 346; + joint occupation of, continued, 347; + views of Gallatin on, 351. + +Otis, Harrison Gray, elected to Congress, 132; + denounces Gallatin for attacking Federalist administration, 136; + on resolution to punish foreign correspondence, 156; + reports investigation of Wolcott's management of Treasury, 177. + + +Panama Congress, its importance, 342; + mission to, declined by Gallatin, 342. + +Paper money, its issue suggested by Jefferson, 264; + Gallatin's opinion of, 268, 277. + +Parish, David, assists Gallatin to float loan, 213, 214; + his reasons, 259, 260. + +Parker, Josiah, amends resolution to punish foreign correspondence, 156; + offers resolution to amend non-intercourse, 160. + +Pasquier, M., negotiates with Gallatin, 337; + pacified by Gallatin after seizure of Apollon, 338. + +Patton, John, on Committee on Finance, 107. + +Peabody, George, at free trade convention of 1831, 241. + +Pendleton Society of Virginia, adopts secession resolutions, 116. + +Penn, John, letter to, given Gallatin by Lady Penn, 11. + +Penn, Lady Juliana, gives Gallatin letter to John Penn, 11. + +Penns, proprietors of Pennsylvania, educated at Geneva, 4. + +Pennsylvania, ratifies federal Constitution, 35; + movement in, to call a second convention, 37-40; + education in, efforts of Gallatin to improve, 45; + opposition to excise in, 48-55; + Whiskey Rebellion in, 67-96; + popularity of Gallatin in, 65; + its law regarding slavery, 140; + petitions against Alien and Sedition Acts, 157. + +Pensacola, its seizure by Jackson, 336. + +Philadelphia, visit of Gallatin to, 19, 21; + removal of Congress to, 47; + society in, 47, 48; + angry feeling in, against Whiskey Insurrection, 92; + protests against Jay treaty, 103; + petitions legislature to repeal charter of Bank of North America, 250; + nominates Gallatin for Congress, 329. + +Pickering, Timothy, in Pennsylvania Constitutional Convention, 43; + secretary of war and postmaster-general under Washington, 97. + +Pickering, ---- member of Ethnological Society, 379. + +Pictet, Mademoiselle, adopts Gallatin, her kindness, 2; + her nephew taught by Gallatin, 5; + regard of Gallatin for, 9; + pained at Gallatin's departure, 11; + gives him letter to Kinloch, 11; + sends him money and secures interest of Dr. Cooper, 17; + his ingratitude toward, regretted by Gallatin, 20; + supposes his failure to write due to misfortune, 27; + accuses Gallatin of indolence and ennui, 43, 44. + +Pictet, ----, naturalist, relative of Gallatin, 5. + +Pinckney, Charles C., refused reception as minister by France, 132; + on second mission, 139; + returns, 152; + attends Congress as general, 155. + +Pinckney, Thomas, makes treaty with Spain, 117. + +Pitt, William, his precocity compared to Gallatin's, 32. + +Poles, in New York, befriended by Gallatin, 372. + +Powell, William H., his portrait of Gallatin, 386. + +Preston, William C., at free trade convention in 1831, 241. + + +Quakers, in Pennsylvania, oppose general education, 45; + petition against seizure of fugitive slaves, 140. + + +Randolph, Edmund, deprecates force against Whiskey Rebellion, on ground + that only Washington's influence prevents civil war, 77; + retires from cabinet, 97; + damages reputation by dealings with Fauchet, 103; + remark of Jay to, during negotiations with England, 118. + +Randolph, John, elected to Congress, 158; + opposes non-intercourse with France, 159; + opposes giving a gold medal to Truxton, 160; + advocates abolition of internal duties, 221; + complains of want of system in Jefferson's cabinet, 284; + on Madison's weakness, 295; + unfitted to lead a party, 355. + +Renwick, James, letter of Mrs. Irving to, on Mrs. Gallatin, 364; + member of "The Club," 366. + +Republican party, its origin, 57; + its leaders in House of Representatives in 1795, 99, 100; + its attitude toward France and Revolution, 101, 102; + imitates Jacobins, 102; + opposes resolution complimenting Washington's administration, 104-106; + attacks administration of Treasury, 106; + asserts right of House to share in treaty power, 110-114; + leadership of Gallatin in, 115, 128, 133, 159; + attacks Jay treaty, 118-121; + objects to adjournment on Washington's birthday, 126; + attacks Washington, 128; + reluctant to affront France, 133-136; + opposes increase of foreign missions, 141-147; + attacks Alien and Sedition Laws, 159; + profits by popular dislike of England and of Alien and Sedition Laws, + 163; + gives equal vote to Jefferson and Burr, 163; + its policy to resist any Federalist usurpation by force, 166; + success due to Gallatin's leadership, 167, 168; + its share in building country, 169; + opposes internal revenue, 221; + its principles violated by Jefferson in suggesting internal + improvements, 227; + refuses to renew charter of bank, 231, 254; + violates principles in chartering second bank, 265; + introduces new principles of administration into government, 279; + demands share of offices, 281, 282; + refuses to confirm Gallatin for secretary of state, 294; + factions in, under Madison, 295; + incompetent to manage war, 298; + lacks leaders after Gallatin, 355; + its condition in 1824, 356; + its caucus nominates Crawford and Gallatin, 357, 358; + new developments of, under Jackson, 358, 359, 360. + +Revenue, 218-238. See Finances. + +Richelieu, Duc de, seeks explanation from Gallatin of American sympathy + for Bonaparte, 331; + declares impossibility of making full compensation for captures under + Berlin and Milan decrees, 332; + angered at American refusal to dismiss an impudent postmaster, 333; + on Jackson's seizure of Pensacola, 336; + urges peace with Spain, 336. + +Richmond, society in, 23, 24. + +Robinson, Dr., associate of Gallatin in founding American Ethnological + Society, 379. + +Rochefoucauld, D'Enville, Duc de, obtains letters for Gallatin from + Franklin, 11. + +Rollaz, Sophie Albertine, mother of Gallatin, 2; + assumes husband's share in business, 2; + death, 2. + +Romanzoff, Count, originates plan of Russian mediation, 304; + dealings of Gallatin with, 307; + renews offer of mediation, 308; + gives Dallas letter to Count Lieven, 310; + thanked by Gallatin, 312. + +Ross, James, appeals to Whiskey insurgents not to use violence, 70; + on commission to confer with insurgents, 85. + +Rousseau, J. J., Gallatin's opinion of, 6. + +Ruggles, Benjamin, letter of Gallatin to, accepting nomination for + vice-president, 358. + +Rush, Richard, introduced to public life by Gallatin, 334; + named minister to England, 334; + joined with Gallatin to negotiate concerning convention of 1815, 334, + 335; + secretary of Treasury, 342; + tone of his correspondence, 345. + +Russell, Jonathan, on peace commission, 312; + arrives at Gottenburg, 313. + +Russia, offers to mediate between England and United States, 299; + mission of Gallatin and Bayard to, 299, 301-312; + refusal of England to accept its mediation, 306, 307; + dealings of Gallatin with Romanzoff, 307, 308; + renews its offer, 308, 315; + displeased with recognition of Spanish colonies, 337. + +Rutherford, John, on committee to consider Gallatin's eligibility to + Senate, 61. + +Rutledge, John, Jr., elected to Congress, 133. + + +Savary de Valcoulon, has claims against Virginia, 19; + meets Gallatin at Philadelphia and uses him as interpreter, 19; + goes with Gallatin to Richmond, 19; + interests him in land speculation, 21; + joins Gallatin in locating claims, 24. + +Schoolcraft, Henry R., member of Ethnological Society, 379. + +Scott, General Winfield, requested by Gallatin to aid in collecting + ethnological data in Mexico, 380. + +Scott, Thomas, appeals to Whiskey insurgents, 70. + +Sedgwick, Theodore, leader of Federalists in House, 98; + on committee to draft address to Washington, 105; + on Committee on Finance, 106; + offers resolution to execute four treaties, 118; + taunts Gallatin with instigating Whiskey Rebellion, 124; + elected speaker, 158; + at free trade convention of 1831, 241. + +Sedition Law, condemned by Gallatin, 152; + petitions against, 157. + +Senate of United States, election of Gallatin to, 58; + appoints committees to consider his eligibility, 61, 62; + votes to exclude him, 62, 63; + prejudiced against him by his actions, 64, 65; + ratifies Jay treaty, 102, 103; + yields to House regarding specific appropriations, 130; + controlled by Federalists, 139; + passes bill authorizing convoys, 149; + passes bill abrogating treaty with France, 154; + amends House Bill to suspend intercourse with France, 160; + debate over its bill to require annual treasury reports, 161; + ratifies commercial convention with France, 162; + still controlled by Federalists, 178; + its hostility to Gallatin, 181; + refuses to confirm his appointment as peace commissioner, 310. + +Seney, Joshua, connected by marriage with Gallatin, 59. + +Serre, Henri, friendship with Gallatin, 5; + sails with him for America, 9; + doings in Boston with Gallatin, 12-14; + at Machias, 14; + enjoys life in wilderness, 15, 17; + returns to Boston, 17; + teaches there, 19; + joins Gallatin and dissolves partnership, 19; + goes to Jamaica and dies, 19; + his debt subsequently paid, 19; + his letters to Badollet, 25. + +Sewall, Samuel, elected to Congress, 132. + +Shays's Rebellion, an argument for Federalist party, 101. + +Sheffield, Lord, says Jay duped Grenville, 117. + +Sherman, John, on accounting in Treasury Department, 247. + +Sismondi, J. C. L. Simonde de, on paper money, 277; + praises Gallatin, 325; + letter of Gallatin to, 380. + +Sitgreaves, Samuel, Federalist in Congress, 99; + on committee to draft address to Washington, 105. + +Slavery, resolutions concerning, in Pennsylvania legislature, 47; + petitions concerning, in Congress, 140; + negotiations concerning slave trade in treaty of Ghent, 323; + at Congress of Aix la Chapelle, 337. + +Smilie, John, represents Fayette County in Pennsylvania ratification + convention, 35; + leads opposition to Constitution, 36; + in anti-Federalist convention, 37; + his career and friendship with Gallatin, 37, 38; + in Pennsylvania Constitutional Convention, 43; + member of state Senate, 44, 54; + at anti-excise convention, 52; + advises submission to law, 69. + +Smith, Isaac, on Committee on Finance, 107. + +Smith, John Augustine, invites Gallatin to join "The Club," 366. + +Smith, Robert, head of faction of "invisibles," 295; + leaves cabinet, 296, 297. + +Smith, Samuel, leads Maryland troops against Whiskey Insurrection, 88; + moves to continue non-intercourse, 162; + probably makes bargain to secure election of Jefferson, 164; + his inexplicable power over Jefferson and Madison, 164. + +Smith, William, educated at Geneva, 4; + Federalist in Congress, 99; + on Committee on Finance, 106; + controversy with Gallatin over increase of public debt, 126. + +Smithson, John, his bequest to United States, 378. + +Smithsonian Institution, connection of Gallatin with, 378, 379. + +Southern States, Republican in 1800, 163; + refuse to support loan of 1813, 213. + +Spain, Pinckney's treaty with, 117; + danger of war with, 335; + peace with, urged by France, 336; + negotiations over its revolted colonies, 336, 337; + rupture with France in 1823, 341. + +Spurzheim, on Gallatin's brain, 389. + +Squier, E. G., member of Ethnological Society, 379. + +Stael, Madame de, interview of Lafayette with emperor at her house, 315; + letter of Gallatin to, 320; + expresses admiration for Gallatin, 325. + +Stephens, ----, member of Ethnological Society, 379. + +Stevens, Byam Kerby, marries Frances Gallatin, 371; + interest of Lafayette in, 371; + meets Lafayette, 372. + +Stevens, Colonel Ebenezer, Lafayette's chief of staff, 371. + +Stevens, John A., at free trade convention of 1831, 241; + member of "The Club," 367. + +Stokely, ----, appeals to Whiskey insurgents, 70. + +Stuart, Gilbert, his portrait of Gallatin, 386. + +Swanwick, John, on Jay treaty debate, 111. + +Szelesegynski, ----, Polish refugee, helped by Gallatin, 372. + + +Tahon, ----, keeps French cafe in Boston, 12. + +Talleyrand, Prince, demands bribe in X Y Z affair, 149; + makes overtures for reconciliation, 152, 153. + +Taney, Roger B., removes deposits from bank, 269, 270; + appointed chief justice, 270; + his reasons for the removal, 270. + +Texas, annexation of, protested against by Gallatin, 351. + +Throop, Governor, recommends University for training teachers, 369. + +Tracy, Destutt, his "Economie Politique" translated by Jefferson, 331. + +Tracy, Uriah, leader of Federalists in House, 98; + taunts Gallatin with connection with Whiskey Rebellion, 119; + obliged to apologize, 120. + +Treasury Department, Hamilton's management of, attacked by Gallatin, 64; + resigned by Hamilton, taken by Wolcott, 97; + management of, supervised by Committee of Finance, 106-108, 130; + condition of, deplored by Gallatin, 125; + charged with arbitrary action, 130, 154; + annual reports from, required by Congress, 161; + Morris's connection with, 171-173; + organization under Hamilton, 174, 243; + management by Wolcott, 176-178; + appointment of Gallatin to, 179, 181; + exalted idea of, held by Gallatin, 189; + difficulty of learning management of, 189, 190; + relieved of responsibility for other departments' expenditure, 223; + administration of, by Gallatin, 244-246; + reports from, 245; + efforts of Gallatin to secure precision in, 245, 246; + subsequent management of, 247; + damaged by failure to re-charter bank, 259; + in panic of 1815, 263; + declined by Gallatin in 1816, 266, 330; + in panic of 1837, 272-276; + sub-treasury system invented, 273; + aids resumption, 276; + declined by Gallatin in 1843, 278; + absence of partisanship in Gallatin's appointments to, 281, 282, 286, + 287. + +Treaty of Ghent, 316-325. See Diplomatic History. + +Tripoli, war with, 222; + tribute to, preferred by Gallatin to war with, 284. + +Trist, N. P., negotiates treaty of Guadalupe Hidalgo, 352. + +Truxton, Captain, voted a medal by Congress, 160. + +Turner, Professor, member of Ethnological Society, 379. + +Tyler, John, as president, offers Treasury portfolio to Gallatin, 278. + + +University, National, proposed by Jefferson, 291; + attempt to start one in New York, 368, 369; + success prevented by clerical influence, 370. + + +Van Buren, Martin, told by Gallatin of willingness to accept French + mission, 349; + manages caucus of Republican Congresssmen, 357; + letter of Gallatin to, withdrawing from nomination, 358. + +Van der Kemp, ----, Dutch commissioner to make commercial treaty, 334. + +Verplanck, Gulian C., member of "The Club," 367. + +Virginia, claims of Savary against, 19; + Gallatin's opinion of society in, 24; + movement in, to secure amendment of Constitution, 36; + disunion threats in, 116; + ready to attack Federalists by force in 1801, 166. + +Voltaire, friendship with Gallatin family, 7; + writes verses for Madame Gallatin, 7; + influence over Albert Gallatin, 7, 8. + + +Wainwright, Rev. Dr., member of "The Club," 367. + +War of 1812, estimates of Gallatin as to cost of operations in, 289, + 290; + preparation for, advocated by Gallatin, 292; + events leading to, 295; questions at issue in, 305; + English hopes in, 313, 316; + sack of Washington, 320. + +Ward, Samuel, member of "The Club," 367. + +Washington, Augustine, founder of Ohio Company, 20. + +Washington, George, his military inactivity in 1780, 12; + meets Gallatin in 1784, 22; + snubs him for forwardness, 23; + later wishes him to be his land agent, 23; + his election as president disconcerts anti-Federalists, 40; + unwilling to go to extremes against Whiskey Rebellion, 54; + issues proclamation, 54; + Randolph's opinion of his influence, 77; + combines conciliation with force, 77; + issues proclamation, calls out militia, and appoints commission to + confer, 77, 78; + accompanies army as far as Bedford, 88; + refuses to stop march of troops, 89; + dissuades troops from violence, 92; + pardons convicted offenders, 96; + reconstructs his cabinet, 97, 98; his influence, 102; + convenes Senate to ratify Jay treaty, 102; + attacked by Bache, 104; + addresses Congress, 104; + his administration criticised in debate over reply in House, 104-106; + refuses call of House for Jay treaty papers, 114; + refusal of House to adjourn on his birthday, 126; + obtains surrender of Western posts, 128; + issues Farewell Address, 128; + attacked by Giles, 128; + proposal of Gallatin concerning reply to his message, 129; + sends tricolor to Congress, 130, 132; + attends Congress as lieutenant-general, 155; + his death announced by Marshall, 158; + invites Wolcott to succeed Hamilton, 176; + Gallatin's opinion of his character, 383, 384; + and of his strong passions, 383 n. + +Washington, Lawrence, founder of Ohio Company, 20. + +Washington city, removal of Congress to, 161, 162; + sack of, by English, 320. + +Washington County, Pennsylvania, in Whiskey Insurrection, 49, 50, 51, + 70, 71, 78, 94, 96; + elects Gallatin to Congress, 93, 127. + +Wayne, Anthony, makes treaty with Indians, 117. + +Webster, Daniel, his speech on northeastern boundary published by + Gallatin, 349; + his manner of negotiating with Ashburton, 350. + +Webster, Pelatiah, describes Gallatin at Philadelphia in 1783, 19. + +Wellington, Lord, asked by cabinet to conquer a peace, 322; + advises cabinet not to insist on cession of territory, 322; + expresses friendly feelings, 335. + +Wells, John, member of "The Club," 367. + +Westmoreland County, in Whiskey Insurrection, 49, 51, 74, 78, 96. + +Wheaton, Henry, requests Gallatin to furnish Humboldt with data on gold + in United States, 381. + +Whiskey Insurrection, opposition to excise in Pennsylvania, 48, 49; + reasons for opposition, 49, 50; + first meetings against excise in Washington County, 50, 51; + combined meeting of four counties at Pittsburgh, 51; + violence against inspectors, 51; + modification of law, 52; + second convention at Pittsburgh, 52; + resolutions against collectors, 52, 53; + petition to Congress, 53; + proclamation issued by Washington and cabinet, 54; + arrests and riots, 55; + attempts to serve writs, 67, 68; + rioting, burning of Marshall's house, 68, 69; + flight of officers, 68; + meetings of distillers, 69; + efforts of Gallatin and others to prevent violence, 69, 70; + stoppage of mails, 69; + call for meeting of militia, 70; + leaders of, 70, 71; + meeting of militia at Parkinson's Ferry, 72, 73; + estimates of numbers, 72; + violence of feeling, 73, 74; + renewed outrages, 74; + use of liberty poles, 74; + attitude of Gallatin toward, 75, 76; + plans of Washington and Hamilton to suppress, 77; + proclamation against carrying arms, 77; + commissioners appointed, 77; + convention of distillers at Parkinson's Ferry, 78, 79; + proposals to raise troops, 79; + efforts of moderates, 80, 81; + committee of sixty appointed, 80; + arrival of commissioners, their offer, 81; + conference of committee at Red Stone Old Fort, 81, 82; + vote to accept terms, 83; + influence of Gallatin, 84; + meetings for submission in counties, 85; + apparent failure of terms of amnesty, 86; + threats of secession, 86; + Hamilton writes "Tully" letter, 87; + report of commissioners, 87; + proclamation calls out troops, 87; + march of militia, 88; + committee of sixty passes conciliatory resolutions, 88, 89; + refusal of Washington to turn back, 89; + final meeting at Parkinson's Ferry votes entire submission, 89; + occupation of western counties by troops, 89, 90; + arrest of rebels, 90, 91; + journey of prisoners to Philadelphia, 91, 92; + end of disturbances, 93; + return of army, 93; + confession of Gallatin, 94; + trial of prisoners, 96; + its effect on Federalist party, 101; + Gallatin taunted with participation in, 119, 124. + +Wirt, William, letter of Jefferson to, 298. + +Wolcott, Oliver, succeeds Hamilton in Treasury Department, 97; + his situation deplored by Gallatin, 125; + complains to Hamilton of Republican opposition, 126; + complains of Gallatin's purpose to break down department, 154; + his career as Hamilton's successor, 176-178; + his statement of a surplus denied by Gallatin, 190, 191. + +Woodbury, Levi, reports extinction of debt, 270, 271; + then deplores its absence, 271; + alarmed at increase of circulation in 1836, 272; + begins sub-treasury system, 273; + promises to support resumption of payment by banks, 275. + +X Y Z dispatches, 149. + +The Riverside Press + +CAMBRIDGE, MASSACHUSETTS, U. S. A. + +ELECTROTYPED AND PRINTED BY + +H. O. HOUGHTON AND CO. + + + + + +End of the Project Gutenberg EBook of Albert Gallatin, by John Austin Stevens + +*** END OF THIS PROJECT GUTENBERG EBOOK ALBERT GALLATIN *** + +***** This file should be named 20873.txt or 20873.zip ***** +This and all associated files of various formats will be found in: + https://www.gutenberg.org/2/0/8/7/20873/ + +Produced by Thomas Strong and the Online Distributed +Proofreading Team at https://www.pgdp.net (This file was +produced from images generously made available by The +Internet Archive/American Libraries.) + + +Updated editions will replace the previous one--the old editions +will be renamed. + +Creating the works from public domain print editions means that no +one owns a United States copyright in these works, so the Foundation +(and you!) can copy and distribute it in the United States without +permission and without paying copyright royalties. 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