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diff --git a/40591-8.txt b/40591-8.txt deleted file mode 100644 index 0899fef..0000000 --- a/40591-8.txt +++ /dev/null @@ -1,2851 +0,0 @@ -The Project Gutenberg EBook of Alexander Hamilton, by Charles A. Conant - -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: Alexander Hamilton - -Author: Charles A. Conant - -Release Date: August 27, 2012 [EBook #40591] - -Language: English - -Character set encoding: ISO-8859-1 - -*** START OF THIS PROJECT GUTENBERG EBOOK ALEXANDER HAMILTON *** - - - - -Produced by Matthew Wheaton and The Online Distributed -Proofreading Team at http://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - - - - - - - The Riverside Biographical Series - - NUMBER 10 - - - - - ALEXANDER HAMILTON - - BY - - CHARLES A. CONANT - - - [Illustration: A Hamilton] - - - ALEXANDER HAMILTON - - BY - - CHARLES A. CONANT - - - BOSTON AND NEW YORK - HOUGHTON, MIFFLIN AND COMPANY - The Riverside Press, Cambridge - 1901 - - - COPYRIGHT, 1901, BY CHARLES A. CONANT - ALL RIGHTS RESERVED - - _Published October, 1901_ - - - - -ALEXANDER HAMILTON - - - - -I - -YOUTH AND EARLY SERVICES - - -The life of Alexander Hamilton is an essential chapter in the story of -the formation of the American Union. Hamilton's work was of that -constructive sort which is vital for laying the foundations of new -states. Whether the Union would have been formed under the -Constitution and would have been consolidated into a powerful nation, -instead of a loose confederation of sovereign states, without the -great services of Hamilton, is one of those problems about which -speculation is futile. It is certain that the conditions of the time -presented a rare opportunity for such a man as Hamilton, and that -without some directing and organizing genius like his, the -consolidation of the Union must have been delayed, and have been -accomplished with much travail. - -The difference between the career of Hamilton in America and that of -the two greatest organizing minds of other countries--Cæsar and -Napoleon--marks the difference between Anglo-Saxon political ideals -and capacity for self-government and those of other races. Where the -organization of a strong government degenerated in Rome and France -into absolutism, it tended in America, under the directing genius of -Hamilton, to place in the hands of the people a more powerful -instrument for executing their own will. So powerful a weapon was thus -created that Hamilton himself became alarmed when it was seized by the -hands of Jefferson, Madison, and other democratic leaders as the -instrument of democratic ideas, and those long strides were taken in -the states and under the federal government which wiped out the -distinctions between classes, abolished the relations of church and -state, extended the suffrage, and made the government only the servant -of the popular will. - -The development of two principles marked the early history of the -Republic,--one, the growth of sentiment for the Union under the -inspiration of Hamilton and the Federalist party; the other, the -growth of the power of the masses, typified by the leadership of -Jefferson and the Democratic party. These two tendencies, seemingly -hostile in many of their aspects, waxed in strength together until -they became the united and guiding principles of a new political -order,--a nation of giant strength whose power rests upon the will of -all the people. It was the steady progress of these two principles in -the heart of the American people which in "the fullness of time" made -it possible for the Union to be preserved as a union of free men under -a free constitution. To Hamilton, the creator of the machinery of the -Union, and to John Marshall, the great Chief Justice, who interpreted -the Constitution as Hamilton would have had him do, in favor of the -powers of the Union, this result was largely due. - -If Cæsar, fighting the battles of Rome on the frontier of Germany, -and kept from party quarrels at home, and Napoleon, born outside of -France and free by his campaign in Egypt from the compromising -intrigues of Parisian politics, were preëminently fitted by these -accidents to transmute the spirit of revolution from chaos into order, -Hamilton stood in somewhat the same position in America. Born in the -little island of Nevis in the West Indies (January 11, 1757), he came -to the United States when his mind was already mature, in spite of his -fifteen years. He came without the local prejudices or state pride -which influenced so many of the Revolutionary leaders, and was -therefore peculiarly qualified to fasten his eyes steadfastly upon the -single end of the creation of a nation rather than the ascendency of -any single state. He was so free from local attachments that he even -hesitated at first on which side he should cast his lot,--whether with -the imperial government of Great Britain, which appealed strongly to -his love of system and organized power, or with the struggling -revolutionists, with their poor and undisciplined army and uncertain -future. The possibility of winning distinction in the service of Great -Britain must have attracted him, but the justice of the colonial cause -spoke more strongly to his sense of right and his well-ordered mind. - -The great services of Hamilton were nearly all performed before he was -forty years of age. His precocity was partly derived from his birth in -the tropics and partly, perhaps, from the unfortunate conditions of -his early life. A mystery hangs over his birth and parentage, which -repeated inquiries have failed to clear away. He is believed to have -been the son of James Hamilton, a Scottish merchant of Nevis, and a -lady of French Hugenot descent, the divorced wife of a Dane named -Lavine. But the history of his parents and their marriage is shrouded -in much obscurity. The father, although reduced to poverty, lived -nearly if not quite as long as his illustrious son, but the mother was -reported to have died while Hamilton was only a child, leaving the -memory of her beauty and charm in one of the chambers of his infant -mind. Hamilton sought in his later years to establish regular -communication with his father, and he had a brother in the West Indies -with whom he corresponded; but the fact that all these relatives -remained so much in the background gave some color to the slanders of -his enemies concerning his birth. - -To offset the disadvantages of birth, Hamilton had neither the -fascinating manners which go straight to the hearts of men, nor the -imposing personal presence which in the orator often invests trifling -platitudes with sonorous dignity. He was possessed of a light and -well-made frame, and was erect and dignified in bearing, but was much -below the average height. His friends were wont to call him "the -little lion," because of the vigor and dignity of his speech. He had -the advantage of a head finely shaped, large and symmetrical. His -complexion was fair, his cheeks were rosy, and in spite of a rather -large nose his face was considered handsome. His dark, deep-set eyes -were lighted in debate with a fire which controlled great audiences -and cowed his enemies. But it was chiefly the power of pure intellect -which gave him control over the minds of other men. There was nothing -mean or low in his character, but he had not a high opinion of the -average of humanity, and therefore lacked somewhat in that ready -sympathy with the minds of others which is so useful to politicians -and party leaders. - -Hamilton was early thrown upon his own resources. His father became a -bankrupt, and he was cared for by his mother's relatives. His -education was aided by the Rev. Hugh Knox, a Presbyterian clergyman, -with whom Hamilton kept up an affectionate correspondence in later -years. The boy was only thirteen years of age when he was placed in -the office of Nicholas Cruger, a West Indian merchant. Here his -self-reliance and methodical habits made him master of the business -and head of the establishment when his employer had occasion to be -away. His remarkable capacity, and his occasional writings for the -daily press, led to a determination by his relatives and friends to -send him to a wider field. He was accordingly supplied with funds and -sent to Boston, where he arrived in October, 1772, still less than -sixteen years of age. He was fortunately provided with some strong -letters of recommendation from Dr. Knox, and was soon at a grammar -school at Elizabethtown, N.J., where he made rapid progress. He -desired to enter Princeton, but his project of going through the -courses as rapidly as he could, without regard to the regular classes, -was in conflict with the rules. He therefore turned to King's College, -New York, now Columbia University, where he was able, with the aid of -a private tutor, to pursue his studies in the manner which he wished. - -The decision of Hamilton to take the side of the colonies in the -conflict with England was made early in 1774, partly as the result of -a visit to Boston. Among the well-to-do classes of New York, the -dominant feeling was in favor of Great Britain, and the control of the -Assembly was in the hands of the friends of the Crown. Hamilton found -Boston the hotbed of resistance to England, and listened attentively -to the reasoning by which the "strong prejudices on the ministerial -side," which he himself declares he had formed, gave way to "the -superior force of the arguments in favor of the colonial claims." The -opportunity soon came for him to make public proclamation of his -position. A great meeting was held in the "Fields"[1] (July 6, 1774), -to force the hand of the Tory Assembly in the matter of joining the -other colonies in calling a Congress. Hamilton attended, and after -listening to the speeches was so strongly impressed with what was left -unsaid that he worked his way to the platform and began an impassioned -argument for the colonial side. Below the normal stature and of -slender form, he looked even younger than his seventeen years, but was -recognized by the crowd as a collegian and received with great -enthusiasm. - -[Footnote 1: The "Fields" of that day occupied what is now City Hall -Park, then the upper limit of New York. King's College was in the -immediate neighborhood, the name still lingering in College Place.] - -Hamilton was soon at the forefront of the fight for civil liberty, -which was carried on by means of pamphlets and newspaper addresses. -His papers, which appeared without signature, showed so much ability -that they were attributed to the most eminent of the patriot leaders. -After the die was cast at Lexington for armed conflict, Hamilton early -in 1776 received the command of a company of artillery. Its thorough -discipline attracted the favorable notice of Greene and other leaders. -Greene introduced Hamilton to Washington, who had early occasion, in -the disastrous battle of Long Island, when Hamilton protected the rear -with great coolness and courage, to measure the mettle of his young -artillery officer. - -Washington on March 1, 1777, offered Hamilton the rank of -Lieutenant-Colonel on his staff. In this position Hamilton found -congenial occupation for his pen in the great mass of letters, -reports, and proclamations which issued from headquarters. These -communications, many of which still survive, while bearing the impress -of Washington's clear, directing mind, bear also the mark of the -skill and logic of the younger man. Hamilton rendered valuable service -after the surrender of Burgoyne, in persuading Gates to detach a part -of his forces to aid Washington. On this occasion, although he had in -his pocket a positive order from Washington, he displayed a tact and -diplomatic skill which were unusual in his dealings with men. It fell -to the lot of Hamilton to meet André while a prisoner in the hands of -the Americans, and his letters regarding the affair to Miss Schuyler, -who afterwards became his wife, are among the most interesting -contributions to this pathetic episode of Revolutionary history. - -Hamilton's quarrel with Washington, about which much has been written, -came after nearly four years' service over a trivial delay in obeying -a call from the General. Washington rebuked his aide for disrespect, -to which Hamilton hotly retorted, "I am not conscious of it, sir; but -since you have thought it, we part." Washington endeavored to prevent -the execution of his project, but Hamilton would not be reconciled -and returned to service in the line. He led his men with great -impetuosity upon one of the British redoubts at Yorktown, and carried -the position in ten minutes, with much more promptness than the -French, to whom the other redoubt had been assigned. - -While the war was still in progress Hamilton was looking ahead with -the constructive genius which afterwards found such wide opportunities -in the cabinet of Washington. He addressed a letter in 1780 to Duane, -a member of Congress, in which he made a remarkable analysis of the -defects of the Articles of Confederation, urged that Congress should -be clothed with complete sovereignty, and made suggestions regarding -its powers which were afterwards embodied to a large extent in the -Constitution. He addressed an anonymous letter to Robert Morris early -in the same year, treating of the financial affairs of the -confederacy. He discussed carefully the paper currency and the causes -of its depreciation, and proposed to restore soundness to the finances -by gradual contraction of the volume of paper, a tax in kind, and a -foreign loan, which was to form the basis of a national bank. When the -clumsiness and helplessness of the system of government by committees -was finally appreciated by the Continental Congress in 1781, and -several executive departments were established, Hamilton was suggested -by John Sullivan to Washington for head of the Treasury Department. -Washington replied that "few of his age have a more general knowledge, -and no one is more firmly engaged in the cause, or exceeds him in -probity and sterling virtue." Robert Morris was chosen for the -Treasury, but Hamilton opened a correspondence with him regarding the -work of the department, which established a firm friendship between -the older and younger man. - -Hamilton desired the unification of the debt and the creation of a -national bank, for the combined objects of cementing the Union and -putting the finances of the country upon a stable basis. "A national -debt," he wrote, "if it is not excessive, will be a national -blessing, a powerful cement of union, a necessity for keeping up -taxation, and a spur to industry." Whether all these benefits fall -within the economic effects of a debt may well be doubted, but the -second advantage assigned was undoubtedly one of the chief motives of -Hamilton in recommending its creation. The Bank of North America was -established by Morris upon a much more modest scale than was proposed -by Hamilton. The younger man, looking to the future needs of the -country and to the example of European banks, recommended an -institution with a capital of ten or fifteen millions, with authority -to establish branches, and with the sole right to issue paper currency -equal to the amount of its capital. He contemplated a close relation -between the bank and the government, and the taking up, under contract -with the United States, of all the paper issues of the Continental -Congress. - -Hamilton made a connection while still under twenty-four which fixed -his status as a citizen of New York, and proved of value to him in -many ways. While on his mission to Gates at Albany, he met Miss -Elizabeth Schuyler, daughter of General Philip Schuyler, one of the -social as well as political leaders of the best element in New York. -The acquaintance with Miss Schuyler was renewed in the spring of 1780 -and ripened into an engagement, followed by their marriage on December -14 of that year. With the conclusion of the war, Hamilton was left -with nothing but his title to arrears of pay in the army, and with a -wife and child to support. He refused generous offers of assistance -from his father-in-law, applied himself for four months to the study -of the law, and in the summer of 1782 was admitted to the bar at -Albany. While waiting for clients he continued his studies on -financial and political questions and his vigorous arguments through -the public prints for a strong federal union. He declined several -offers of public place, but finally accepted an appointment from -Robert Morris (June, 1782) as continental receiver of taxes for New -York. This afforded him an opportunity of meeting the New York -legislature, which had been summoned in extra session at Poughkeepsie, -in July, to receive a report from a committee of Congress. - -Congress in May, 1782, had taken into consideration the desperate -condition of the finances of the country, and divided among four of -its members the duty of explaining the common danger of the states. It -was at the request of the delegation which went north that Governor -Clinton called an extra session, and a communication was submitted on -the necessity of providing for a vigorous prosecution of the war. -Hamilton went to Poughkeepsie to aid his father-in-law, General -Schuyler, and it was upon the motion of the latter that the Senate -resolved itself into a committee of the whole on the state of the -nation. Two days of deliberation were sufficient to produce a series -of resolutions, probably drafted by Hamilton, which were unanimously -adopted by the Senate and concurred in by the House. - -These resolutions set forth that recent experience afforded "the -strongest reason to apprehend from a continuance of the present -constitution of the continental government a subversion of public -credit" and danger to the safety and independence of the states. -Turning to practical remedies, it was pointed out that the source of -the public embarrassments was the want of sufficient power in -Congress, particularly the power of providing a revenue. The -legislature of New York, therefore, invited Congress "to recommend and -each state to adopt the measure of assembling a general convention of -the states especially authorized to revise and amend the -confederation, reserving a right to the respective legislatures to -ratify their determinations." These resolutions the government was -requested to transmit to Congress and to the executives of the other -states. Hamilton appeared before the legislature and discussed the -subject of revenue, and one of the results of his manifest interest in -the subject and his knowledge of finance was his selection by the -legislature as one of the members of Congress from New York. - -The impress of the organizing mind and far-sighted purposes of -Hamilton was felt during his brief service in Congress. He took his -seat from New York in November, 1782, and resigned in August, 1783. He -cast his influence from the beginning in favor of a strong executive -organization, and did his best to strengthen the heads of the recently -created departments of finance and foreign affairs. He was of great -service to Robert Morris, and almost carried the project of a general -duty on importations, which was finally defeated by the obstinacy of -Rhode Island. Such a measure, if carried out, would have afforded the -central government a permanent revenue. It would have greatly -mitigated the evils of the time, but would perhaps by that very fact -have postponed the more complete union of the states which was to come -under the Constitution of 1789. This was only one of the many projects -germinating in the fertile mind of Hamilton. In a letter to Washington -(March 17, 1783) he wrote:-- - -"We have made considerable progress in a plan to be recommended to -the several states for funding all the public debts, including those -of the army, which is certainly the only way to restore public credit -and enable us to continue the war by borrowing abroad, if it should be -necessary to continue it." - -That it might be necessary to continue the war Hamilton seriously -feared, in spite of the fact that the provisional treaty of peace with -Great Britain was then before Congress. A grave question had arisen -whether faith had been kept with France in the negotiation of this -treaty. Congress had resolved unanimously (October 4, 1782) that "they -will not enter into any discussion of overtures of pacification but in -_confidence_ and in _concert_ with His Most Christian Majesty," the -King of France. Adams and Jay, against the advice of Franklin, -negotiated secretly with Great Britain, and only the moderation of -Vergennes, French Minister of Foreign Affairs, prevented serious -friction between the allies. - -Hamilton, though far from being a partisan of France, believed in -acting towards her with the most scrupulous good faith. He advocated a -middle course between subserviency to Great Britain and implicit -confidence in the disinterestedness of France. He declared (March 18, -1783), when the peace preliminaries were considered, that it was "not -improbable that it had been the policy of France to procrastinate the -definite acknowledgment of our independence on the part of Great -Britain, in order to keep us more knit to herself, and until her own -interests could be negotiated." Notwithstanding this caution regarding -French purposes, he "disapproved highly of the conduct of our -ministers in not showing the preliminary articles to our ally before -they signed them, and still more so of their agreeing to the separate -article." His own view was expressed in some resolutions which he -offered, and which Congress adopted (May 2, 1783), asking a further -loan from the French King, "and that His Majesty might be informed -that Congress will consider his compliance in this instance as a new -and valuable proof of his friendship, peculiarly interesting in the -present conjuncture of the affairs of the United States." - - - - -II - -THE FIGHT FOR THE CONSTITUTION - - -Hamilton was not a conspicuous national figure during the four years -which elapsed between the termination of his term in Congress and his -appearance in the Federal Convention of 1787. He was working none the -less earnestly and persistently, however, in favor of a stronger -union. Movements towards this union took form almost simultaneously in -different parts of the country under the impulse of a common need. The -wise and thoughtful words of Washington, in his circular letter to the -governor of each state on surrendering the command of the army (June -8, 1783), sank into many hearts, and did much to soften local -prejudices against giving more power to the central government. The -State of Virginia in December, 1783, ceded her northwestern territory -to Congress, and granted a general impost. Significance was given to -the act by the policy of the governor in communicating it to the -executive authority of the other states, with the suggestion that they -do likewise. - -Jefferson was as cordial a supporter as Madison at that time of the -project of a federal union. As a member of Congress, he prepared a -plan for intercourse with the powers of Europe and the Barbary States, -in which he described "the United States as one nation upon the -principles of the federal constitution." Only two states--Rhode Island -and Connecticut--voted to substitute weaker words in describing the -union. It was voted by eight states to two (March 26, 1784) that in -treaties and in all cases arising under them, the United States formed -"one nation." The need for uniform rules for the regulation of -commerce on the Potomac and the creation of roads and canals led to a -number of conferences during the next two years between Virginia and -Maryland, in one of which Washington played the part of referee. The -legislature of Maryland finally took a step which shot a bright ray -of light through the darkness surrounding the prospects of a permanent -union. In a letter to the legislature of Virginia (December, 1785), it -proposed that commissioners from all the states should be invited to -meet and regulate the restrictions on commerce for the whole. Madison -in Virginia gave cordial welcome to the invitation. He had already -gone beyond the sentiment of his state in his zeal for union, but at -his instigation a meeting of delegates from the states was called by -Virginia at Annapolis, Md., for September, 1786. - -Hamilton snatched at the opportunity which this invitation presented. -Several of his friends were elected to the legislature of New York, -and made the appointment of delegates to Annapolis their paramount -object. In spite of much hostility, they succeeded in wresting -authority from the legislature for a commission of five. Hamilton and -Benson were the only two of these delegates who appeared at Annapolis. -They found only four other states represented there. It was -determined that the best that could be done by the little gathering -was to urge upon the states a general convention, to meet at -Philadelphia on the second Monday of the next May, "to consider the -situation of the United States, and devise such further provisions as -should appear necessary to render the constitution of the federal -government adequate to the exigencies of the Union." Hamilton was not -a member of the committee appointed to prepare the report, but it was -his draft which, with some modifications to meet the sensibilities of -the Virginians, was accepted and adopted. - -A path was now blazed in which those who favored a stronger union -could walk in harmony. Hamilton returned to New York with the -intention of exerting his whole strength in behalf of the convention. -He secured an election to the legislature, and at once took the lead -of the members opposed to the separatist policy of Governor Clinton. -He assailed the governor on the question of granting an impost to -Congress in a practicable form, but was beaten by the solid vote of -the party in power. He succeeded better with his resolution for the -appointment of five delegates to the convention at Philadelphia. The -Senate cut down the number to three, and two of them--Chief Justice -Robert Yates and John Lansing, Jr.--were resolute supporters of the -governor; but Hamilton carried the vital point that New York should be -represented in the Federal Convention, and he was himself one of the -delegates. It was not until late in February, 1787, that this action -was taken,--little more than three months before the meeting of the -convention,--and it was a few days later when formal approval was -given to the project by the Federal Congress. - -Hamilton, although one of the three delegates from New York to the -convention, was embarrassed throughout the proceedings by the open -hostility of his associates to any vigorous steps towards a strong -union. He had definite ideas and strong feelings, however, and could -not restrain himself from setting forth his views of what the new -government should be. When Dickinson proposed that the convention -should seek union through a revision of the old Articles of -Confederation, Hamilton took the floor (June 18, 1787) to show how -inadequate such a measure would be, and to set forth his own long -matured views. He spoke for six hours, reviewing the history of the -colonies before the Revolution, during its progress, and afterwards, -the steps which had been taken towards union, and the imperative -necessity which had been disclosed for a government possessing -complete powers within its fields of action. He urged that the -convention "adopt a solid plan without regard to temporary opinions." -He laid bare unsparingly the defects of the confederacy, and insisted -that the Articles of Confederation could not be amended with benefit -except in the most radical manner. He opposed strongly the creation of -a general government through a single body like Congress, because it -would be without checks. He continued:-- - -"The general government must not only have a strong soul, but strong -organs by which that soul is to operate. I despair that a republican -form of government can remove the difficulties; I would hold it, -however, unwise to change it. The best form of government, not -attainable by us, but the model to which we should approach as near as -possible, is the British constitution, praised by Necker as 'the only -government which unites public strength with individual security.' Its -house of lords is a most noble institution. It forms a permanent -barrier against every pernicious innovation, whether attempted on the -part of the crown or of the commons." - -Hamilton made little concealment of his belief that the new government -should not be exclusively republican. He said on June 26, 1787:-- - -"I acknowledge I do not think favorably of republican government; but -I address my remarks to those who do, in order to prevail on them to -tone their government as high as possible. I profess myself as zealous -an advocate for liberty as any man whatever; and trust I shall be as -willing a martyr to it, though I differ as to the form in which it is -most eligible. Real liberty is neither found in despotism nor in the -extremes of democracy, but in moderate governments. Those who mean to -form a solid republic ought to proceed to the confines of another -government. If we incline too much to democracy, we shall soon shoot -into a monarchy." - -In pursuance of these views, Hamilton urged that all branches of the -new government should originate in the action of the people rather -than of the states. In this respect he came closer to democracy than -some of his opponents, but he proposed to give strength and permanence -to the government by providing that the Senators and the executive -should hold office during good behavior. He contended that by making -the chief executive subject to impeachment, the term monarchy would -not be applicable to his office. Another step differing radically from -the Constitution as adopted, and showing the unswerving purpose of -Hamilton to give supremacy to the central government, was the proposal -that the executive of each state should be appointed by the general -government and have a negative on all state legislation. - -Hamilton had no expectation that his plan would be adopted. What he -sought was to key the temper of the delegates up to a pitch which -would bring them as nearly to his ideal of what the new government -should be as was possible under the circumstances of the times. His -long speech was attentively listened to, and even Yates reported that -it "was praised by everybody, but supported by none." Notwithstanding -these criticisms, the Constitution, as it was finally adopted, -embodied many of the features of the project which was outlined by -Hamilton. A legislative body of two houses, the choice of the -executive by electors, a veto for the executive over legislative acts, -the grant of the treaty-making power to the executive and the Senate, -the confirmation of appointments by the Senate, the creation of a -federal judiciary, and the provision that state laws in conflict with -the Constitution should be void; these and many other features of the -existing Constitution were parts of the plan of Hamilton. - -It was not the open preference which Hamilton expressed for the -British form of government which caused distrust of his plan. This was -neither startling nor offensive to the great majority of those who -heard him. Representative government under a republican head had not -then been tried upon a large scale in any part of the world. Such -small republics as existed in ancient times and in Italy had been -confined within narrow areas, and had in many cases presented examples -of factional strife which were far from encouraging to the friends of -liberty. The Americans, in revolting against Great Britain, revolted -only against what they considered the false interpretation given by -King George to the guarantees of the English constitution, wrested by -their ancestors from King John and his successors and consecrated by -the Revolution of 1688. It was far from the thoughts of the most -extreme, with perhaps an occasional personal exception, to cut loose -from the traditions of English liberty, tear down the ancient -structure, and build from the ground up, as was done a few years -later in France by the maddened victims of the oppression of the -nobles. - -The sentiment most strongly opposed to the views of Hamilton was not -democratic sentiment, in the strictest sense of the word, but devotion -to local self-government. Hamilton was democratic enough to insist, in -the discussion of the manner of choosing members of the House of -Representatives, "It is essential to the democratic rights of the -community that the first branch be directly elected by the people." -What he desired was strength at the centre of authority, from whatever -source that authority was derived. Coming from a little West Indian -island where the traditions of parliamentary government had little -footing, he attached no such importance as most of his associates to -the reserved rights of the states. He was the man for the hour as the -champion of a strong government, but it would not have been fortunate -in some respects if his views had been adopted in their extreme form. -There never was the slightest chance, as he doubtless knew, that they -would be adopted by the descendants of English freemen who had founded -self-governing states in accord with their own principles on the -western shores of the Atlantic. - -Having delivered a single strong speech, which pointed the way towards -a strong union, Hamilton remained comparatively in the background -during the remainder of the convention. It was inevitable, however, -that he should make himself heard upon the proposal that the new -government should have power "to emit bills on the credit of the -United States." The power to issue unfunded paper had received his -censure four years before, as one of the defects of the existing -Articles of Confederation. He now opposed in the most emphatic manner -the grant of authority to the new government to issue paper money in -the form of its own notes, and to force them into circulation as a -substitute for gold and silver coin. When Gouverneur Morris moved to -strike out the power to issue bills on the credit of the United States -and was supported by Madison, it was supposed that, if the motion -prevailed, the power to issue government paper money and make it a -legal tender for debts was guarded against for all time. The power was -stricken out of the Constitution by a vote of nine states against two. -Madison decided the vote of Virginia, and declared that "the pretext -for a paper currency, and particularly for making the bills a tender, -either for public or private debts, was cut off." It is not surprising -that Mr. Bancroft, the jealous friend of the Constitution, in spite of -the opening of the door at a later period by the Supreme Court of the -United States, declared: - -"This is the interpretation of the clause, made at the time of its -adoption alike by its authors and by its opponents, accepted by all -the statesmen of that age, not open to dispute because too clear for -argument, and never disputed so long as any one man who took part in -framing the Constitution remained alive." - -Hamilton spoke on a few other occasions on subsidiary points connected -with the draft of the Constitution, but it was only at the close of -the convention that he again came resolutely to the front to exert a -strong influence over his associates. When the final draft of the new -frame of government had been completed, several delegates showed -symptoms of refusing to affix their signatures. The great weight of -Franklin was thrown into the scale to urge that the delegates go back -to the people presenting the semblance of harmony instead of -divisions. "I consent to this Constitution," he declared, "because I -expect no better, and because I am not sure that it is not the best." -Washington sought also to secure unanimity, and Hamilton declared:-- - -"I am anxious that every member should sign. A few by refusing may do -infinite mischief. No man's ideas are more remote from the plan than -my own are known to be; but is it possible to deliberate between -anarchy and convulsion on the one side, and the chance of good to be -expected from the plan on the other?" - -Such words had some weight, but not enough to secure unanimity. All -the states voted for the Constitution, but several delegates went on -record against it, and Hamilton's two associates from New York were -absent. It was this alone which saved New York from being recorded -against the Constitution. Hamilton did not shrink from putting down -his signature as the representative of his state. It was he who, in a -bold, plain hand, inscribed on the great sheet of parchment the name -of each state, as the delegations came forward, one after another, in -geographical order and affixed their signatures to the precious -document which was to found the government of the United States. - -Hamilton returned to New York determined to use his utmost powers to -secure the ratification of the Constitution as the best attainable -means of averting the dangers of disunion. Although cordially -supported by John Jay and Edward Livingston, Hamilton, in the fight -for ratification in New York, was the natural leader. He found arrayed -against him the whole influence of Governor Clinton and the dominant -party in New York politics. Clinton was not absolutely opposed to -union, but he attached to it so many reservations that for practical -purposes he was an opponent of the new Constitution. The battle over -ratification began on the question of the choice of delegates to the -state convention. It was in this field that Hamilton fought the great -fight with his pen which has left to posterity the fine exposition of -the Constitution known as "The Federalist." A society was formed in -the city of New York to resist the adoption of the Constitution, and -articles soon began to appear in the local press criticising and -opposing it. - -Preparing a vigorous letter, while gliding down the Hudson, in reply -to some of the first points of the opposition, Hamilton soon extended -the project into a series of strong papers, which appeared twice a -week for twenty weeks over the signature of "Publius." He secured the -aid of Madison and Jay, who wrote some of the papers, but the project -was Hamilton's, the majority of the papers were written by him, and -to him has been justly given the credit of the well-knit and powerful -arguments afterwards printed under the title of "The Federalist." - -Taking up point by point the provisions of the new Constitution, -Hamilton, by skillful argument, drawn from the closest abstract -reasoning, the recent experience of the states, and the history of -foreign countries, sought to show that the new Constitution was based -upon sound principles of government, that it was well calculated to -carry out these principles, and that its acceptance was practically -the only course open to the American people to insure for themselves -the benefits of liberty, prosperity, and peace. "The Federalist," -although a purely political argument, has survived the occasion which -called it forth, as one of the master documents of political writing. -That it has a distinct place in literature is admitted by so severe a -critic as Professor Barrett Wendell in his recent "Literary History of -America." It is worth while quoting his acute literary judgment of its -merits:-- - -"As a series of formal essays, the 'Federalist' groups itself roughly -with the 'Tatler,' the 'Spectator,' and those numerous descendants of -theirs which fill the literary records of eighteenth century England. -It differs, however, from all these, in both substance and purpose. -The 'Tatler,' the 'Spectator,' and their successors dealt with -superficial matters in a spirit of literary amenity: the 'Federalist' -deals in an argumentative spirit as earnest as that of any Puritan -divine with political principles paramount in our history; and it is -so wisely thoughtful that one may almost declare it the permanent -basis of sound thinking concerning American constitutional law. Like -all the educated writing of the eighteenth century, too, it is phrased -with a rhythmical balance and urbane polish which give it claim to -literary distinction." - -While the written arguments of Hamilton in "The Federalist" have -survived for a hundred years and been consulted by foreign students in -the formation of new constitutions, a more severe task was imposed -upon him at the meeting of the state convention called to consider the -report of the convention at Philadelphia. It was in some respects the -hardest task ever set with any hope of success before a parliamentary -leader. Indeed, to the superficial observer there would have seemed to -be no hope of success, when in the elections to the state convention -the supporters of Governor Clinton chose forty-six delegates and left -on the side of Hamilton only nineteen of the sixty-five members. But -this statement of the case gives a somewhat darker color to the -situation than the real facts. There was a strong and growing body of -public sentiment for the Constitution in New York city and the -counties along the Hudson, which even led to the suggestion that they -should join the Union in any event and leave the northern counties to -shift for themselves. It was generally recognized, moreover, that -however strong the objections were to the Constitution, the choice lay -practically between this Constitution and none,--between the proposed -government and anarchy. - -So strong was the sentiment that the Constitution must be accepted in -some form, that its opponents in the state convention did not venture -upon immediate rejection. Fortunately, their course in fighting for -delay only tended to make it clearer that New York would stand alone -if she failed to ratify. While the dream of independent sovereignty, -or the leadership in a federation which should dictate terms to the -surrounding states, was not without its attractions to the more -ambitious of the opposition leaders, there was a darker side to the -proposition which was much less attractive. Independence for New York -meant a heavy burden of taxation for a separate army and navy, for -guarding long frontiers on the east, north, and south, for supporting -an extensive customs service along the same frontiers, for maintaining -ministers at foreign courts and consuls in the leading cities of the -world, and for meeting all the other expenses of a sovereign nation. - -It was fortunate for the state and the country that the leader of the -opposition to the Constitution in the New York convention was a man of -a high order of ability, whose mind was open in an unusual degree to -the influence of logical reasoning. This man was Melancthon Smith, who -is accorded by Chancellor Kent, the great authority on American law, -the credit of being noted "for his love of reading, tenacious memory, -powerful intellect, and for the metaphysical and logical discussions -of which he was a master." It is as much to his credit as that of -Hamilton that he finally admitted that he had been convinced by -Hamilton, and that he should vote for the Constitution. This result -was only reached, however, after a long and sometimes acrimonious -struggle, in which Hamilton was on his feet day after day explaining -and defending each separate clause of the Constitution,--not only in -its real meaning, but against all the distorted constructions put upon -it by the most acute and jealous of critics. - -But events had been fighting with Hamilton. State after state had -ratified the new document, and news of their action had reached New -York. Nine states, the number necessary to put the Constitution in -force, were made up by the ratification of New Hampshire (June 21, -1788). Still New York hesitated, and Hamilton wrote to Madison: "Our -chance of success depends upon you. Symptoms of relaxation in some of -the leaders authorize a gleam of hope if you do well, but certainly I -think not otherwise." Virginia justified his hopes by a majority of 89 -against 79 for ratification (June 25, 1788). The news reached New York -on July 3. The opposition there, though showing signs of relenting, -was still stubborn. Conditional ratification, with a long string of -amendments, was first proposed. Jay firmly insisted that the word -"conditional" must be erased. Finally, on July 11, he proposed -unconditional ratification. Melancthon Smith then proposed -ratification with the right to withdraw if the amendments should not -be accepted. Hamilton exposed the folly of such a project in a -brilliant speech, which led Smith to admit that conditional -ratification was an absurdity. Other similar proposals were brought -forward, but they were evidently equivalent to rejection by -indirection, which would have left New York out of the new Union. - -Finally, Samuel Jones, another broad-minded member of the opposition, -proposed ratification without conditions, but "in full confidence" -that Congress would adopt all needed amendments. With the support of -Smith, this form of ratification was carried by the slender majority -of three votes (July 26, 1788). By this narrow margin it was decided -that New York should form a part of the Union, and that the great -experiment in representative government should not begin with the two -halves of the country separated by a hostile power, commanding the -greatest seaport of the colonies. - -Hamilton thus played an important part in winning the first great -battle for the Constitution. Ratification was only one of many steps -which remained to be taken before the new government was in working -order. Hamilton hurried back to the Federal Congress, and carried an -ordinance fixing the dates and the place for putting the new -government in operation. When he returned to New York, he was beaten -for reëlection to Congress, and Governor Clinton and his party -retained such a firm grip upon the legislature that a deadlock -occurred between the Federalist House and the opposition Senate. New -York was unrepresented in the first electoral college, and had no -senators at the meeting of the First Congress. The state elections -which followed resulted in defeat for the Federalists in the election -of the governor, but they carried the legislature and elected two -senators,--General Schuyler and Rufus King. King had recently come -from Massachusetts, and Hamilton's insistence that he should be chosen -caused a breach with the Livingstons, which contributed to the defeat -of Schuyler two years later and the election of Aaron Burr. Hamilton's -course in this matter was one of many cases in which he showed that -he was not an astute politician, nor an adept at dealing with men. His -highest qualities were those more distinctly intellectual, which led -him to drive straight towards a desired object, with little patience -for smaller men or the obstacles which stood in his way. - - - - -III - -ESTABLISHING THE PUBLIC CREDIT - - -The great work of Hamilton, which was to stamp his name forever upon -American history and our frame of government, was yet before him. -Washington was inaugurated in April, 1789, but it was not until -September 2 that an act passed Congress establishing the Treasury -Department. Hamilton was the selection of Washington for the new post. -It was a selection so well approved by all who were familiar with -Hamilton's great abilities as an organizer and financier that the -nomination was confirmed on the day that it reached the Senate. The -studies of many years, the programme which had been outlined in -letters to Morris and in the newspapers, were now to bear fruit under -the directing genius of Hamilton. Only ten days passed after his -appointment before Congress requested him to prepare a report upon -the public credit. Then came calls for reports on the collection and -management of the revenue; estimates of receipts and expenditures; the -regulation of the currency; the navigation laws; the post-office, and -the public lands. Money had to be found at once for the pressing needs -of the new government before the more elaborate projects of the young -minister of finance could be put in operation. But Hamilton did not -delay long even for the more important and permanent work. When -Congress met in January, he submitted his celebrated report "On Public -Credit," which laid the corner-stone of American finance under the -Constitution. - -This report of Hamilton's on the public credit has long stood out as -one of the master state papers of American history. Read to-day in the -light of the economic progress of more than a century, its conclusions -are not entirely novel, but are in the main clear and sound. To obtain -a proper perspective regarding their value, the mind should be -projected back to the beginning of 1790, when political economy as a -science had barely been born, and the work of Adam Smith, although -about fourteen years old, was probably known to but few in America. -Many public men of to-day with the proper preliminary training might -evolve as sound a report as that of Hamilton, but no ordinary man -could have done it a hundred and ten years ago, and few men could do -it to-day with the force of diction, precision and directness of -statement, the grasp of principles, and the mastery of detail which -marked the work of Hamilton. - -He seemed to gather in his hands all the tangled threads of the -disordered finances of the Continental Congress and of the states and -show how they could be woven into a band of strength and symmetry, -holding together by the motive of enlightened self-interest all the -parts of the new Union. He proposed to plant the public credit upon a -firm foundation, satisfy the public creditors, and put the nation on -the high road to industrial and financial progress. The difficulties -which Hamilton confronted were not merely a bankrupt Treasury and a -loose system of finance under the federal government, but large -expenditures by the states for carrying on the Revolutionary War, for -which reimbursement was demanded by the states which had spent the -most and was opposed by those which had spent the least. Hamilton -endeavored to show that all would gain by the assumption of these -debts by the federal government. Although a thinker rather than a -tactician, he was shrewd enough to make an appeal early in his report -to all men engaged in industry by pointing out the importance of -public credit upon the volume and profits of private business. He -endeavored first to make clear the benefit to any government of a -sound fiscal system. He said upon this point:-- - -"As, on the one hand, the necessity for borrowing in particular -emergencies cannot be doubted, so, on the other, it is equally evident -that to be able to borrow upon good terms, it is essential that the -credit of a nation should be well established. For, when the credit of -a country is in any degree questionable, it never fails to give an -extravagant premium, in one shape or another, upon all the loans it -has occasion to make. Nor does the evil end here; the same -disadvantage must be sustained upon whatever is to be bought on terms -of future payment. From this constant necessity of borrowing and -buying dear, it is easy to conceive how immensely the expenses of a -nation, in the course of time, will be augmented by an unsound state -of the public credit." - -Taking up the demonstration how closely the public credit is linked -with the fortune of the individual, Hamilton points out that public -securities are a part of the medium of exchange, that sound credit -will extend trade by preventing the export of money, and that -agriculture and manufactures will be promoted because "more capital -can be commanded to be employed in both," and that the interest of -money will be lowered. - -Hamilton took up and punctured in his report several fallacies -regarding the treatment of the debt which had obtained lodgment in the -public mind and threatened to influence the action of Congress. One -of these was that a distinction should be made between those holders -of the debt to whom it was originally issued and those who had -acquired it by purchase. As the latter holders had bought the debt in -some cases at a mere fraction of its face value and for speculative -purposes, the specious argument was made that they were entitled in -the settlement with the government only to what they had paid the -original holders. Hamilton set himself to dissipate this prejudice by -showing that the man who had been willing to purchase the public debt -might be quite as patriotic as the man who had parted with it for a -price. He suggested that if the debt was thus purchased in the -confidence that it would rise to par, the act was a proof of the -patriotism of the purchaser, and it would be a sorry return for this -confidence to make it a reason for discrimination against him. - -But much more important from the public point of view, he pointed out, -was the sanctity of contracts guaranteed by the new Constitution, and -absolutely required to give a stable character to the securities of -the government. If the government were to discriminate between the -original holders of the debt and other holders, he made it clear that -a degree of discredit would be cast on all the obligations of the -United States, no matter in whose hands they were found, which would -tend to defeat the end and aim of all his measures,--the restoration -of public credit. Upon this point he said:-- - -"The nature of the contract, in its origin, is, that the public will -pay the sum expressed in the security, to the first holder or his -assignee. The intent in making the security assignable is, that the -proprietor may be able to make use of his property, by selling it for -as much as it may be worth in the market, and that the buyer may be -safe in the purchase. - -"Every buyer, therefore, stands exactly in the place of the seller, -has the same right with him to the identical sum expressed in the -security, and having acquired that right, by fair purchase, and in -conformity to the original agreement and intention of the government, -his claim cannot be disputed without manifest injustice. - - * * * * * - -"The impolicy of a discrimination results from two considerations: -one, that it proceeds upon a principle destructive of that quality of -the public debt, or the stock of the nation, which is essential to its -capacity for answering the purposes of money, that is, the security of -transfer; the other, that, as well on this account as because it -includes a breach of faith, it renders property in the funds less -valuable, consequently induces lenders to demand a higher premium for -what they lend, and produces every other inconvenience of a bad state -of public credit." - -One of the most serious obstacles which confronted Hamilton in -carrying out his financial policy was the opposition to the assumption -by the new federal government of the debts of the several states -incurred in the prosecution of the war. The states which had been -remiss in paying their quota for the general expenses and those which -had not been called upon to pay much for local defense did not see -why a burden should be imposed upon them, even in equitable proportion -with the other states, for the purpose of relieving those states which -had been prompt with their payments or had been compelled to spend -freely for the protection of their own boundaries and people. This -prejudice Hamilton faced with the same clear vision and resolute -purpose as that against providing for the debt of the Union. He set -forth at the outset that if these debts were to be paid at all, -whether by the states or by the Union, "it will follow that no greater -revenues will be required, whether that provision be made wholly by -the United States, or partly by the states separately." He pointed out -that the control of the entire matter by the federal government would -secure uniformity of treatment for the public creditors, would prevent -competition between the Union and the states for the sources of the -revenue, which otherwise might cause collision and confusion, and -would secure a distribution of taxation more just to industry in all -the states. The assumption of the state debts, moreover, he insisted -was vital to the credit of the Union. Upon this head, and upon the -equity of charging to the Union of the states the debts which had been -incurred for the benefit of all, Hamilton observed:-- - -"Should the state creditors stand upon a less eligible footing than -the others, it is unnatural to expect they would see with pleasure a -provision for them. The influence which their dissatisfaction might -have could not but operate injuriously, both for the creditors and the -credit of the United States. Hence it is even the interest of the -creditors of the Union, that those of the individual states should be -comprehended in a general provision. Any attempt to secure to the -former either exclusive or peculiar advantages would materially hazard -their interests. Neither would it be just that one class of the public -creditors should be more favored than the other. The objects for which -both descriptions of the debt were contracted are in the main the -same. Indeed, a great part of the particular debts of the states has -arisen from assumptions by them on account of the Union. And it is -most equitable, that there should be the same measure of retribution -for all. - - * * * * * - -"The general principle of it seems to be equitable, for it appears -difficult to conceive a good reason why the expenses for the -particular defense of a part, in a common war, should not be a common -charge, as well as those incurred professedly for the general defense. -The defense of each part is that of the whole, and unless all the -expenditures are brought into a common mass, the tendency must be to -add to the calamities suffered by being the most exposed to the -ravages of war, an increase of burthens." - -Hamilton found the public debt of the Union to be $54,124,464.56. This -would not be a formidable debt to-day, even with full allowance for -the difference in population, but it was formidable for that time -because of the comparative poverty of the country, and the scanty -resources for paying it. The great increase in the productive power -of man in our time, by means of machinery, improved means of -communication, and other devices for saving labor and increasing its -efficiency, makes it easy for prosperous nations to bear taxation -without feeling the burden which would have paralyzed industry and -arrested national progress a century ago. The United States in 1790 -were not far beyond the primitive condition in which the entire sum of -production is required for the necessaries of existence, and little is -left for the luxuries of life and of state enterprise. - -The total of the debt, as computed by Hamilton, was made up by adding -the foreign debt, $10,070,307, with arrears of interest amounting to -$1,640,071.62, to the principal of the domestic debt, $27,383,917.74, -with arrears of interest amounting to $13,030,168.20, and estimating -the unliquidated debt at $2,000,000. The amount of the state debts he -was not able to ascertain with precision, but estimated at about -$25,000,000. This made the total debt to be dealt with something more -than $75,000,000. The annual interest required at the rates provided -in the contract would amount to $542,599.66 on the foreign debt, and -$4,044,845.15 on the domestic debt, including that of the states, -making a total of $4,587,444.81. While urging the most conscientious -fulfillment of obligations, Hamilton admitted that this demand would -require the extension of taxation to a degree and to objects which the -true interests of the public creditors themselves forbade. "It is -therefore to be hoped," he said, "and even to be expected, that they -will cheerfully concur in such modifications of their claims, on fair -and equitable principles, as will facilitate to the government an -arrangement substantial, durable, and satisfactory to the community." - -This arrangement he did not propose to reach by repudiating any -portion of the debt. He proposed to reduce the rate of interest, in -course of time, in accordance with the decline in the rate for the -rental of capital abroad, but to those holders of the debt who -desired settlement in full at the old rates of interest, he made -liberal offers. A number of optional plans for accepting funds at -different rates of interest for different terms were presented, which -it is not necessary to set forth in detail. The statement of the first -two will give an idea of their general character:-- - -"First, That, for every hundred dollars subscribed, payable in the -debt, (as well interest as principal,) the subscriber be entitled, at -his option, either to have two-thirds funded at an annuity or yearly -interest of six per cent., redeemable at the pleasure of the -government, by payment of the principal, and to receive the other -third in lands in the western territory, at the rate of twenty cents -per acre. Or, to have the whole sum funded at an annuity or yearly -interest of four per cent, irredeemable by any payment exceeding five -dollars per annum, on account both of principal and interest, and to -receive, as a compensation for the reduction of interest, fifteen -dollars and eighty cents, payable in lands, as in the preceding -case." - -Hamilton thus reserved the right to redeem the debt at the pleasure of -the government, when new securities could be floated at reduced rates. -This was in accordance with the enlightened policy of governments -before and since in availing themselves of the increase of capital and -the improved condition of the public credit. The holder of the public -funds could find no fault if he received back his principal, while an -attractive investment at current rates of return upon capital would be -offered to new investors in the form of funds at a reduced rate of -interest, if such new funds were not acceptable to the old holders of -the debt. - -The proposal for using the public lands in part settlement of the debt -was a happy device for employing a resource of immense value to the -country, and promoting early settlement of the great areas of -uncultivated land which became the property of the Union. It was in -pursuance of this comprehensive policy that Connecticut, Virginia, -and other states had ceded to Congress, even before the adoption of -the Constitution, their indefinite claims to the great stretches of -country between the Allegheny Mountains and the Mississippi. - - - - -IV - -CONGRESS SUSTAINS HAMILTON - - -The plans of Hamilton having been formulated, it remained to be -determined whether they should be adopted by the lawmaking power or -should remain a splendid but abortive monument to the constructive -skill of their author. Vigorous opposition was expected by Hamilton to -the measures which he proposed. He had endeavored to meet and disarm -such opposition as far as possible in the careful and illuminating -language of his report, but it soon became evident that against nearly -all parts of it a bitter and persistent battle would be waged. The -owners of capital and the commercial element were represented in the -Northern and Eastern States rather than in the South, and the -representatives of the former states strongly supported from the first -the entire policy of the Secretary of the Treasury. Rumors were -already abroad that something was to be done to restore the national -credit, but it was not until the reading of Hamilton's report in the -House (January 14, 1790) that the full scope of his plans was made -manifest. - -The effect of the report was so favorable upon the public credit as to -forge weapons for its enemies. This came about through the sudden rise -in the public funds, and the promptness with which speculators bought -them up from holders who were ignorant of their value. Funds which -would have been gladly disposed of at three shillings to the pound, or -fifteen per cent. of their face value, at any time within the previous -three years, rose before noon the next day fifty per cent. of their -quoted price. It was not yet certain that the project would be adopted -by Congress, but shrewd men were willing to discount the future in -much the same manner that brokers in Wall Street do at the present -time. The absence of a well-organized stock market, with the -ramifications of telegraphic quotations throughout the Union, put in -the hands of the more daring of these speculators an opportunity to -avail themselves of the ignorance of others to an extent which would -not be possible to-day. Agents were soon scouring the country, buying -up the certificates of the debt in all its varied forms, before the -news of Hamilton's great report had reached the humble holders, some -of whom were old soldiers or quiet farmers who had been compelled to -furnish supplies for the army. Jefferson says in his Anas:-- - -"Couriers and relay horses by land, and swift-sailing pilot-boats by -sea, were flying in all directions. Active partners and agents were -associated and employed in every state, town, and county, and the -paper bought up at five shillings, and even as low as two shillings in -the pound, before the holder knew that Congress had already provided -for its redemption at par." - -This sudden and remarkable effect of Hamilton's recommendations put -weapons in the hands of the enemies of the project, because it seemed -to give force to their argument that a distinction should be made -between those to whom the debt was originally issued at par and the -new holders who had obtained it at a discount. Long and bitter were -the debates in the House over this and other branches of Hamilton's -project. But it was so obvious that a distinction between the holders -of the debt would run directly counter to its character as negotiable -paper, and would be almost impossible of just execution, that the -friends of the funding project easily had the best of the argument. -Madison, although inclined to oppose Hamilton, was forced to admit -that the debt must be funded at par without discrimination. He brought -forward a project to pay the original holders the difference between -par and the price at which they had sold, and to pay to the present -holders only what they had paid for the securities. This was shown to -be so impracticable that only thirteen votes were given for it in a -House of forty-nine members voting. The advocates of the entire -funding project carried it in committee of the whole (March 9, 1790) -by a vote of 31 to 26. - -The debates had so strengthened the position of Hamilton that the -wisdom of funding the debt of the Union at par was now generally -admitted. His opponents and those who feared too great a concentration -of power in the capitalist class and the central government made their -stand on the proposal to assume the state debts. When the resolution -reported by the committee of the whole was taken up in the House on -March 29, several representatives from North Carolina appeared in the -House and swelled the ranks of the opposition. North Carolina had been -late in accepting the Constitution, and her members had not been -present on previous votes. When, therefore, a motion to recommit the -financial projects was made, it was carried by a vote of 29 to 27. The -advocates of assumption were so indignant, and so convinced that one -part of the project was as vital as the other, that they voted to -recommit the original funding resolution. Further debate took place, -but without shaking the firmness of the opposition to the assumption -of the state debts. The project was rejected in committee (April 12) -by a vote of 31 to 29. - -The situation was a grave one. Hamilton felt that the future of the -Union was at stake. If his projects were not adopted substantially as -a whole, the new government would be without credit and the work of -the Convention of 1789 would be in vain. The government at Washington -would be as helpless as the Continental Congress and its committees -had been. This opinion was shared by all those who favored a vigorous -central government, and practically by all the members of the party in -Congress which was forming in support of the measures of Hamilton and -looking to him as their leader. While casting about for some means for -meeting the emergency, Hamilton fell upon a plan which represents one -of the few cases in which he had recourse to diplomacy in his public -career. The question of the location of the national capital had been -for some time pending in Congress. It had already become involved with -the assumption of the state debts. A strong bid had been made by the -opponents of assumption for the five votes of Pennsylvania by the -offer to locate the capital for fifteen years at Philadelphia. - -The importance of having Congress and its officials in a given city -represented more at that time, in spite of the small size of the body -and the relative insignificance of the interests before it, than would -be the case to-day with either of the great commercial cities of New -York, Boston, or Philadelphia. Local interests played the same part -then as now in political man[oe]uvring, and possession of the capital -looked larger in the eyes of some members than the financial policy of -the Union. In the sarcastic language of Professor McMaster, "The state -debts might remain unpaid, the credit of the nation might fall, but -come what might, the patronage of Congress must be drawn from New York -and distributed among the grog-shops and taverns of Philadelphia." - -Hamilton took advantage of this situation to save assumption and to -fix the financial policy of the United States. The Senate had -rejected the proposal to establish the capital at Philadelphia, and -when the project came back to the House, Baltimore was substituted by -a majority of two. The Pennsylvanians and their friends in the Senate -retaliated by mutilating the funding bill and daring the -assumptionists to reject it. The latter held to their position and -rejected the bill, 35 to 23. It was while matters were in this acute -stage, while threats were made on behalf of the North that the Union -would be broken up if assumption were not carried, that Hamilton one -day in front of the President's house met Thomas Jefferson. Jefferson -had recently returned from France to assume the position of Secretary -of State. What followed is best told in Jefferson's own words, because -he afterwards claimed that he had been "duped" by Hamilton and acted -without knowledge of the effect of what he was doing. Jefferson's -account of the matter is as follows:-- - -"As I was going to the President's one day, I met him (Hamilton) in -the street. He walked me backwards and forwards before the -President's door for half an hour. He painted pathetically the temper -into which the legislature had been wrought; the disgust of those who -were called the creditor states: the danger of the _secession_ of -their members, and the separation of the states. He observed that the -members of the administration ought to act in concert; that though -this question was not of my department, yet a common duty should make -it a common concern; that the President was the centre on which all -administrative questions ultimately rested, and that all of us should -rally around him, and support, with joint efforts, measures approved -by him; and that the question having been lost by a small majority -only, it was probable that an appeal from me to the judgment and -discretion of some of my friends might effect a change in the vote, -and the machine of government, now suspended, might be again set into -motion. I told him that I was really a stranger to the whole subject; -that not having yet informed myself of the system of finance adopted, -I knew not how far this was a necessary sequence; that undoubtedly, if -its rejection endangered a dissolution of our Union at this incipient -stage, I should deem that the most unfortunate of all consequences, to -avert which all partial and temporary evils should be yielded. I -proposed to him, however, to dine with me the next day, and I would -invite another friend or two, bring them into conference together, and -I thought it impossible that reasonable men, consulting together -coolly, could fail, by some mutual sacrifices of opinion, to form a -compromise which was to save the Union. The discussion took place. I -could take no part in it but an exhortatory one, because I was a -stranger to the circumstances which should govern it. But it was -finally agreed, that whatever importance had been attached to the -rejection of this proposition, the preservation of the Union and of -concord among the states was more important, and that, therefore, it -would be better that the vote of rejection should be rescinded, to -effect which some members should change their votes. But it was -observed that this pill would be peculiarly bitter to the Southern -States, and that some concomitant measure should be adopted to sweeten -it a little to them. There had been projects to fix the seat of -government either at Philadelphia or at Georgetown on the Potomac; and -it was thought that by giving it to Philadelphia for ten years, and to -Georgetown permanently afterwards, this might, as an anodyne, calm in -some degree the ferment which might be excited by the other measure -alone. Some two of the Potomac members (White and Lee, but White with -a revulsion of stomach almost convulsive) agreed to change their -votes, and Hamilton undertook to carry the other point. In doing this, -the influence he had established over the eastern members, with the -agency of Robert Morris with those of the Middle States, effected his -side of the engagement." - -Hamilton had little of the state pride which influenced the men of -Massachusetts, New York, Virginia, or of any other state who had -grown up on the soil won by their English ancestors by their blood or -the sweat of their brows. To him the question of the location of the -capital seemed insignificant in comparison with the foundation of the -Union upon the rock of a comprehensive financial policy. It is -significant of the commanding influence which the young secretary had -acquired, and the well-knit party which was gathering around him, that -he had no difficulty in carrying his part of the programme for seating -the capital eventually on the banks of the Potomac. The bill to remove -the capital was passed on July 9, 1790, by a majority of three, and -the assumption of the state debts was carried soon after. The form of -the assumption differed somewhat from the proposal of Hamilton, but it -accomplished the result at which he aimed. A specific sum, -$21,500,000, was assumed by the government and distributed among the -states in set proportions. The project passed the Senate July 22, by a -vote of 14 to 12, and the House on July 24, by a vote of 34 to 28. A -great step was thus taken in the consolidation of the Union, and -notice was given to the world that the United States proposed to pay -their debts and fulfill with scrupulous honor their financial -obligations. - - - - -V - -STRENGTHENING THE BONDS OF UNION - - -The funding of the debt was only one of several parts of the policy of -Hamilton for putting the new government upon a solvent and firm basis. -The session of Congress which began in December, 1790, witnessed the -presentation of his report in favor of a national bank. This report, -like that on the debt, showed careful study of the subject in its -theoretical as well as practical aspects. Hamilton referred in opening -to the successful operation of public banks in Italy, Germany, -Holland, England, and France. He then went on to point out some of -their specific advantages in concentrating capital and permitting the -easy transfer of credit. He declared that such a bank would afford -"greater facility to the government, in obtaining pecuniary aid, -especially in sudden emergencies." It would also facilitate the -payment of taxes, by enabling tax-payers to borrow from the bank and -by the aid which it would give in the transfer of funds. He did not -shrink from declaring that the country would benefit if foreigners -invested in the bank shares, since this would bring so much additional -capital into the United States. Hamilton then pointed out the vital -distinction between government paper issues and bank paper. He laid -down thus the fundamental principle of a well-regulated bank-note -currency:-- - -"Among other material differences between a paper currency, issued by -the mere authority of government, and one issued by a bank, payable in -coin, is this: That, in the first case, there is no standard to which -an appeal can be made, as to the quantity which will only satisfy, or -which will surcharge the circulation: in the last, that standard -results from the demand. If more should be issued than is necessary, -it will return upon the bank. Its emissions, as elsewhere intimated, -must always be in a compound ratio to the fund and the demand: whence -it is evident, that there is a limitation in the nature of the thing; -while the discretion of the government is the only measure of the -extent of the emissions, by its own authority." - -The bank which Hamilton proposed was private in its ownership, but the -United States were to pledge themselves not to authorize any similar -institution during its continuance. The capital of the bank was not to -exceed $10,000,000, for which the President of the United States might -subscribe $2,000,000 on behalf of the government. It was further -provided that three fourths of the amount of each share might be paid -in the public debt instead of gold and silver. - -It was the purpose of Hamilton not merely to create a useful financial -institution, in which the government would be able to keep its -deposits, but to weld the monetary system of the country into an -harmonious whole. The result of this, which he foresaw and intended, -was to bind the property-owning classes to the interests of the new -government. The effect was much the same as the creation of the Bank -of England by the loan of its capital to the government, which bound -the moneyed classes firmly to King William, through the knowledge that -the debt and the solvency of the bank depended on the perpetuation of -his government and the exclusion of the Stuart Pretender. The tendency -of Hamilton's project was clearly seen by Jefferson and other -democratic leaders, and did not fail to arouse their hostility. It was -not long before they promptly took sides against the national bank. -Jefferson wrote regarding the meetings of the cabinet at this time -that "Hamilton and myself were daily pitted in the cabinet like two -cocks." - -There was something deeper involved, from the standpoint of Jefferson, -than the mere question of bringing the moneyed class to the side of -the government. The latter object was sufficiently distasteful to him, -but the extension of the powers granted by the Constitution beyond -those which were directly enumerated in the document involved a -question of public policy and constitutional law which afforded the -basis for the creation of two great national parties. The Constitution -did not anywhere grant in terms to the government the power to -establish a national bank. Even Hamilton did not pretend to put his -finger on the specific authority for his new project. He advanced a -doctrine which was eagerly embraced by the party which was growing up -around him, but which was as resolutely opposed by the other party. -This was the doctrine of the implied powers granted to the new -government by the Constitution. It is doubtful whether the -Constitution would have been ratified by Virginia and other states if -this doctrine had been set forth and defended in the state conventions -by the friends of the Constitution. This by no means implies that the -policy and doctrine of Hamilton were not wise and far-sighted. -Hamilton had definite aims before him, and it was his legitimate -mission to educate public sentiment up to the point of accepting those -aims and of granting him the means for carrying them out. - -The doctrine of the "implied powers" rested upon the theory that -unless they were directly prohibited by the Constitution, all powers -were granted to the government by implication which were found -necessary and proper for carrying out the powers specifically granted. -Jefferson came to believe, if he did not believe at the outset, that -the government was one of delegated powers which were strictly limited -to those enumerated in the Constitution. The doctrine of Hamilton, -from this point of view, was revolutionary. It meant the conversion of -a government holding limited delegations of power from the people and -the states into a government having supreme power, capable of taking -an infinite variety of measures whenever Congress, in the exercise of -its discretion, believed that such measures would contribute to the -well-being of the Union. The state governments, coming closer to the -people than the federal government, were most directly threatened by -this assumption of power, and it was as the champions of state rights -as well as democratic ideas that Jefferson and his friends took their -ground as the advocates of the strict construction of the -Constitution. - -It is not surprising, therefore, that the proposal to create the Bank -of the United States called forth in Congress prolonged and heated -debates. But the policy of Hamilton had been so far successful in -restoring the public credit that he carried the project for the -national bank through both houses, and it was laid before the -President for his approval. Washington had watched with interest the -struggle in the two houses, and was somewhat impressed by the weight -of the argument against the constitutional power of Congress to -establish the bank. The cabinet was divided. Jefferson and Randolph -were against the constitutionality of the bill. Hamilton and Knox were -in favor of it. Washington asked each of them to give him in writing -the reasons for his opinion. He weighed them carefully and then -affixed his signature to the bill (February 25, 1791). The new project -realized all the benefits which Hamilton expected. Washington, in his -tour of the Southern States in the spring of 1791, found the sentiment -for union strengthening and the country recovering from the -prostration of the era of bad money and political uncertainty which -had followed the Revolution. He declared in a letter written after his -return: - -"Our public credit stands on that ground, which, three years ago, it -would have been madness to have foretold. The astonishing rapidity -with which the newly instituted bank was filled, gives an unexampled -proof of the resources of our countrymen and their confidence in -public measures. On the first day of opening the subscription, the -whole number of shares (twenty thousand) were taken up in one hour, -and application made for upwards of four thousand shares more than -were granted by the institution, besides many others that were coming -in from various quarters." - -How much was likely to be done by a national bank to bind together the -commercial interests of different sections of the country can hardly -be appreciated to-day. At that time there were only four banks in the -country; none of these was ten years old, and their combined capital -was only $1,950,000. The Bank of the United States was authorized to -establish offices of discount and deposit in all the states and to -distribute parts of its capital among eight branches in the chief -cities of the country. It was the drafts of these branches upon each -other, and their means for reducing to a uniform and reasonable rate -the cost of transferring funds, which contributed to knit all parts of -the country together in commercial matters and so strengthened the -bond of political union. The bank did not make regular reports to the -Treasury Department, but its success is indicated by a special report -communicated to Congress by Secretary Gallatin (January 24, 1811), -which showed resources of $24,183,046. The average annual dividends -paid upon the stock up to March, 1809, were over eight per cent. - -So invaluable were the operations of the Bank of the United States to -the public treasury that Jefferson himself when President came to its -support. His support was perhaps never very hearty, and was due to -Albert Gallatin, his Secretary of the Treasury, whose foresight and -ability give him a rank next to Hamilton among the able men who have -presided over the national finances. Gallatin made a strong report in -1809, recommending that the charter of the bank be renewed upon its -expiration in 1811, with an increase of capital and wider powers. A -new charter was voted in the House, but the bill was not acted on in -the Senate, and before the next session the opposition of the state -bankers had rallied sufficient strength to defeat the recharter. The -second United States Bank was authorized in 1816, under the -administration of Madison and with his approval, but its career was -terminated in 1836, as the result of the political hostility of -President Jackson. - -It was not until after the grant of this second charter that the -question of the power of Congress to establish a bank came directly -before the Supreme Court in 1819. At the head of this court sat John -Marshall, who next to Hamilton, perhaps, did more than any other man -to strengthen and extend the powers of the general government. The -jealousy of the state banks had led the State of Maryland to impose a -discriminating tax on the Bank of the United States. If the right to -levy such a tax had been admitted, the Bank would have been completely -at the mercy of the states, and one of the chief purposes of its -creation would have been defeated. In order to sustain the right of -the bank to exemption from taxation, it was necessary to prove that it -was a constitutional instrument of federal power. Hence the question -of the power of Congress to create such a corporation came directly -before the court. - -Hamilton found the power to create a bank partly in the preamble to -the Constitution, which declares that the people of the United States -have adopted it in order to "promote the general welfare," but more -particularly in that concluding phrase of the clause defining the -powers of Congress, which declares that that body shall have -authority "to make all laws which shall be necessary and proper for -carrying into execution the foregoing powers, and all other powers -vested by this Constitution in the government of the United States or -in any department or officer thereof." Marshall, in the series of -great decisions by which he strengthened the power of the Union, often -made use of these provisions to justify his reasoning. In one of the -most famous of these decisions (McCulloch _vs._ Maryland), he -sustained the constitutionality of the bank as an instrument of -federal power and denied the right of the states to levy upon its -property. He declared that the power to tax involved the power to -destroy, and that if the federal government had not the power to -withdraw its creations from discriminating legislation by the states, -the latter might tax the mail or the mints, the papers of the -custom-houses, or the forms of judicial process. - -The view of Hamilton regarding the power of the federal government to -create a bank was thus sustained in emphatic terms by the highest -court in the land. It was partly his policy in providing for the bank -and demonstrating its usefulness, with his other measures to develop -the powers of the central government, which made possible the -decisions of Marshall. If the question of the right to incorporate a -bank could have been brought before the court at the beginning, before -the institution had proved its value, and if men like Jefferson and -Madison had been upon the bench, there is at least room for doubt -whether a decision would have been rendered in favor of a power which -is not granted directly to the government by the Constitution. But by -the resolute executive policy of Hamilton and the broad judicial -constructions of Marshall, the functions of the new government were -extended to all those great objects necessary to create a vigorous and -united nation. - -The many other measures of Hamilton were directed by the same -singleness of purpose to strengthen the hands of the government and -consolidate the Union. The report on the mint followed the previous -reports of Jefferson in recommending the adoption of the dollar as the -unit of value. Hamilton observed that "upon the whole, it seems to be -most advisable, as has been observed, not to attach the unit -exclusively to either of the metals; because this cannot be done -effectually, without destroying the office and character of one of -them as money, and reducing it to the situation of a mere -merchandise." He believed, however, that care should be taken to -regulate the proportion between the metals with an eye to their -average commercial value. He pointed out the danger of undervaluing -either metal, and the inevitable result, in case of a difference of -ratio in two countries, "if other things were equal, that the greatest -part of the gold would be collected in one, and the greatest part of -the silver in the other." - -This discussion of the subject took place at a time when monetary -principles were not very well fixed, when the standard and the state -of the currency had hardly been settled on an orderly basis in any -country, and when the means of transportation for the precious metals -were much slower and less efficient than under modern conditions, and -the cost was much greater. Hamilton endeavored to find the true -commercial relation between gold and silver as a basis for the coinage -values, in the hope that this would not change sufficiently to upset a -bimetallic system founded upon such a basis. He was not a victim of -the delusion that government can arbitrarily give value by law to -money, but declared, "There can hardly be a better rule in any country -for the legal, than the market proportion; if this can be supposed to -have been produced by the free and steady course of commercial -principles." - -The report on manufactures and the bill providing for an excise were -parts of the project of Hamilton for building up a vigorous and -self-supporting nation. The report on manufactures was not presented -to Congress until the beginning of the long session at the close of -1791, and was not carried out in legislation. It consisted chiefly of -an argument for the encouragement of young industries in an -undeveloped country. Hamilton strongly favored the diversification of -the industries of the country between agriculture and various forms of -manufacture, because he believed it would contribute to the solidity -of the industrial system and to the financial independence of the -United States. His conception of the best method for promoting -American industries differed materially, however, from more recent -developments of the protective system. He recommended bounties and -premiums in many cases in preference to protectionist customs duties, -in order to avoid the rise in the price of articles to the consumer -which often results from such duties. The customs duties which he -proposed, moreover, ranged only from seven and a half to fifteen per -cent., and the latter rate was to be levied on only a few articles. - -The country was not yet ripe for extensive industrial enterprises. The -manufactures then existing were chiefly for supplying local needs, -the factory system had not been introduced, and the capital had not -been accumulated for the creation of large establishments. The country -needed many foreign manufactured articles to put it upon the highroad -to industrial development, and it was at a much later period that the -manufacturing interests acquired the power which enabled them to -increase the scale of duties. When this time came, they turned to the -arsenal of Hamilton's report for weapons in support of the policy of -diversifying industries; but they used these weapons in behalf of a -scale of duties which was not recommended by him and they ignored his -arguments for premiums and bounties for the protection of the consumer -against excessive prices. - -Whether Hamilton would have favored the policy of protection in its -later developments, it is useless to inquire. It is idle to claim for -any thinker of the past that he anticipated all future discoveries and -reasoning in the fields of politics or economics. It is not -necessary, in order to give a statesman a high place in history, to -worship blindly all that he did or said or to make such deeds and -words an authority for later generations. What can be said of Hamilton -without reasonable ground of denial is that he did not recommend in -any of his writings the high scale of duties advocated by some -protectionists in recent years. On the contrary, he urged a scale of -duties which would be treated by the protectionist of to-day as below -even the level of a "tariff for revenue only." That his ideas were far -from extreme is indicated by the project which he drew up in 1794 for -a reciprocity treaty with Great Britain, which proposed to limit -American import duties on the leading textiles and manufactured -articles of metal to ten per cent. of their value. He even criticised -Jefferson's message of 1801 for recommending the repeal of the -internal revenue taxes, upon the ground that the duties on imports -were high and that if any taxes were to be repealed, they should be -those which weighed on commerce and navigation. - -A measure which led to more immediate results than the report on -manufactures was the report on the excise. Hamilton found it -necessary, in order to obtain sufficient funds to meet the interest on -the debt and other charges, to recommend an excise tax upon distilled -liquors produced in the United States. The bill passed Congress in -January, 1791, and was soon put in force. Violent resistance was made -in western Pennsylvania, where the manufacture of whiskey was more -extensively carried on than in any other part of the Union. The -federal collector for Washington and Allegheny was tarred and -feathered, and deputy marshals did not dare serve writs against those -guilty of the outrage. Washington's journey through the South had a -good effect in softening the opposition to the law, which first showed -itself in Virginia and North Carolina; but in Pennsylvania conditions -went from bad to worse, until it became necessary to give the federal -government additional powers for collecting the tax and putting down -insurrection. Masked mobs terrorized those who were inclined to obey -the law, and forced them to publish the injury done to their stills. -In order to protect themselves by embroiling the whole community, some -of the insurgent leaders had the mail stopped, the militia called out -on their side, and threatened to lay Pittsburg in ashes (July, 1794). - -The opportunity had come for testing the question whether the Union -was strong enough to put down rebellion by force. It was an -opportunity which Hamilton did not shirk. At his earnest solicitation, -an army was dispatched to the disturbed districts. Washington showed -no hesitation in supporting the authority of the federal government. -He obtained a certificate from a judge of the Supreme Court, setting -forth that the laws of the United States were set at naught and that -the courts were unable to enforce them. He then issued a proclamation -commanding the insurgents to submit to the laws, and made a -requisition for 12,950 militia from Pennsylvania, Maryland, Virginia, -and New Jersey, to move on September 1, 1794, towards the disaffected -districts. - -The firmness of Washington put an end to the insurrection. Governor -Mifflin of Pennsylvania, who had hesitated to put down the -disturbances by the strong hand of the state, recovered his courage, -and aided the federal government by proclamations and by his full -quota of troops. Hamilton accompanied the army as it moved towards the -West, and remained with it after Washington turned back to attend the -opening of Congress. The strong display of force made by the -government overawed the insurgents and finally compelled their -submission. Albert Gallatin, although a citizen of the disaffected -section and an opponent of the party in power, exerted his influence -on behalf of order. Negotiations were set on foot between -commissioners of the President, and a committee of citizens, of which -Gallatin was a member. When this committee met to decide whether they -would recommend compliance with the law, they were surrounded by -riflemen who were ready to shoot if their leaders showed signs of -yielding. But they adopted the clever device of a ballot upon which -both yea and nay were written, with the option of destroying either -word. A small majority voted to submit. Some of the obstinate spirits -held out, but as the people fell away from them, they were arrested -and put on trial, and the authority of the federal government was no -longer disputed. - -This suppression of the "Whiskey Rebellion," as it was called, was one -of the most important steps in the consolidation of the Union. Many -who had observed the aggressive and comprehensive projects of -Hamilton, and seen them daily binding closer the bonds of union, did -not believe that they would stand the test of armed conflict. They -feared that the power of the government would wither and the people -split into warring factions when men were called upon to march in arms -against their fellow-citizens. The event proved that the new -government had vindicated its right to exist, and that the sentiment -of union was daily gaining a stronger hold upon the hearts of the -people. That this new power had not only built up a cohesive financial -system, but had shown its capacity to put down resistance to its -lawful authority with a strong hand, was largely the work of Hamilton. -It may be said that it was wholly his work, so far as any great -national policy can be projected and carried out by a single man, -independently of the support of his associates in the government and -of the body of public opinion which make possible the execution of his -plans. - -The time had come when Hamilton felt that his constructive work was -done. He withdrew from the cabinet (January 31, 1795), and Oliver -Wolcott of Connecticut was appointed his successor. Hamilton chose the -moment for retiring from office with a tact and judgment unusual with -public men. He was moved partly by the desire to provide for his -family upon a more liberal scale than his modest salary under the -government permitted. He was too patriotic, however, to have -abandoned his post until he felt that his constructive work was -complete. It was with conscious satisfaction that in his report on the -public credit at the beginning of 1795 he was able to marshal the -measures already taken towards restoring order to the national -finances and point out their results. The credit of the country had -been raised from the lowest abyss of dishonor to that of the most -enlightened nations of the old world; an adequate system of taxation -had been provided for meeting the public obligations; the business -interests had been knit together in support of the government by a -national bank; a monetary system had been established; the Treasury -had been organized in its various branches upon a basis which has -survived to our day; and finally the strength of the fabric of the -Union and of the financial system had been subjected to the test of a -rebellion which, without serious bloodshed, but with a strong display -of force, had been fully and firmly subdued. - - - - -VI - -FOREIGN AFFAIRS AND NEUTRALITY - - -The comprehensive measures of Hamilton for strengthening the Union -gave a definite character and policy to the Federalist party. The -foundations of this party had been laid by the struggle over the -question whether the Constitution should be accepted by the states; -but the measures of Hamilton were too strong for some of the friends -of the Constitution, and many changes occurred in the temporary -groupings of political leaders before a definite dividing line was -established between the Federalism of Hamilton on the one side and the -Democracy of Jefferson and Madison on the other. These two eminent -Democratic leaders had, indeed, been among the most earnest supporters -of the Constitution. Madison went farther than Jefferson in the -direction of Federalism, and encountered the distrust of the -states-rights element at home; but Jefferson, as has been already -seen, made several reports in the Continental Congress in favor of -declaring the United States a nation, and was the cordial promoter of -those important steps towards union,--the transfer of the Western -territory to Congress and the adoption of a common monetary system. - -The plans of Hamilton in regard to the finances, however, and his -resolute policy of neutrality between France and Great Britain, ran -counter to the views of Jefferson. It is not surprising, therefore, -that the latter found himself pitted against the great Federalist -leader upon nearly every question of importance which came before the -cabinet. The feeling that he had been duped in regard to the -assumption of the state debts found vent in many complaints, which -finally bore fruit in open attacks upon Hamilton, at first made -indirectly through a clerk in the government service, and then -directly in a long letter to Washington. Jefferson gave the post of -translating clerk in the State Department to a Frenchman, Philip -Freneau, who published a journal known as the "National Gazette." In -this journal Freneau began a series of bitter and sometimes -well-directed attacks upon the measures of the administration, and -particularly those of Hamilton. A friend of Jefferson in Virginia, -Colonel Mason, approached Washington in the summer of 1791, and made a -long and severe criticism upon the Treasury measures and their effect -upon the people. - -Washington continued to stand above party, and sought to mitigate the -friction between his cabinet officers. Where the judgments of Hamilton -and Jefferson differed on constructive measures, however, Washington -in nearly every case became convinced of the wisdom of the -recommendations of Hamilton. He therefore had the appearance of -leaning to his side, although he often mitigated the sharpness of the -arguments of his vigorous young minister of finance and endeavored to -temper his excess of zeal. After listening to Mason, Washington felt -that the time had come to interpose in the growing hostility between -his cabinet ministers. He submitted a brief summary to Hamilton of -the criticisms which had been made upon his projects and asked him to -submit a statement in reply. The charges were directed not only -against the substance of the financial measures, but declared that -they fostered speculation, corrupted Congress through the ownership of -the public debt by members of that body, and that Hamilton was -laboring secretly to introduce aristocracy and monarchy. - -It was not difficult for Hamilton to brush away most of these -criticisms. This he did in the cool, logical manner of which he was a -master by numbering each objection to his policy and measures and -showing that it was not founded upon solid reasoning or fact. Hamilton -would have done well to have rested his case upon his letter to -Washington, but he was now convinced that Jefferson was behind the -attacks upon him, and he determined to strike back. He began a series -of anonymous communications through the Federalist organ, "Fenno's -Gazette," which showed all his usual vigor and force of reasoning, but -which only intensified the bitterness in the cabinet. President -Washington was deeply disturbed by this open outbreak of hostilities, -and remonstrated by letter with both Hamilton and Jefferson. Hamilton -suspended his attacks, while Jefferson confined his hostility to less -open methods. - -When Congress met at the close of 1791, Giles of Virginia, a -loud-spoken, hot-headed member of the House, called for accounts of -the various foreign loans made by the government. An attempt was made -to prove corruption in the management of the Treasury. Hamilton could -not have found a better opportunity for defending himself, if he had -sought it. He was no longer shut up to the unsatisfactory methods of -unsigned communications through newspapers, but was in a position to -speak openly and boldly in exposition and defense of his measures. -Report after report was sent to Congress, setting forth the operations -of the Treasury with a lucidity and power which silenced the -opposition and almost overwhelmed Madison, who had been forced as a -party leader to accept the responsibility for the attacks. The -reports, to any one who understood the subject, were absolutely -convincing of the soundness and wisdom of Hamilton's measures. - -Jefferson, perhaps, had some right to complain of the influence which -Hamilton exerted over that department of the government which properly -belonged under his exclusive jurisdiction. This was the management of -foreign relations. Hamilton had such definite and well-considered -views on foreign policy as well as finance that he could not forbear -presenting them in the cabinet. His superiority in definiteness of aim -and energy no doubt led him to believe that he was fitted for the -functions of prime minister and that he was justified in exercising -them as far as he could. The course of Washington encouraged him to -the extent that the President often gave the preference to his views -over those of Jefferson, but it was far from the purpose of the -President to make any distinction in rank or in his confidence between -his ministers. Hamilton, although an admirer of the British political -system, permitted himself few prejudices in his theory of the foreign -policy of the United States. Though often charged with British -sympathies, he leaned much less towards Great Britain than Jefferson, -through his admiration of the spirit of the French Revolution, leaned -towards France. - -The foreign relations of the country began to become acute with the -outbreak of war between England and France in 1793. France had already -abolished royalty, expelled the nobles, sent Louis XVI. to the -scaffold, and was on the eve of the terrible massacres which did so -much to revolt even her best friends outside the country. The news of -war reached the United States early in April, 1793. News came also -that a minister from the French Republic had landed at Charleston and -would soon present his credentials at Philadelphia. Hamilton sent post -haste for Washington, who was at Mount Vernon. The outbreak of war -meant danger to American commerce on the ocean and the risk of trouble -with both powers over the neutrality laws. The serious question -confronting the American government was whether they should maintain -strict neutrality between the belligerents or should side with France, -to whom they were bound by the treaties made with her when she came to -the rescue of the colonies. When Washington reached Philadelphia, he -found both Jefferson and Hamilton ready with suggestions for meeting -the crisis, but these suggestions differed widely. Jefferson, although -not an advocate of war against England, believed that Congress should -be called together in extra session to deal with the emergency. - -A stronger programme was urged upon the President by Hamilton. He -regarded the question of neutrality and the reception of the French -envoy as one for the executive rather than for Congress. He believed -also that these subjects would be safer in the hands of Washington -than midst the passions of a legislative body. He drew up a statement, -embodying a series of questions regarding the policy of the United -States, which was laid by Washington before the cabinet. The first -question was whether a declaration of neutrality should be issued. -This was decided in the affirmative, and the proclamation was soon -issued by Washington. It was decided that the French minister, Genet, -should be received, but that early occasion should be taken to explain -to him that the United States did not consider themselves bound by the -treaties to plunge into war in behalf of France. While it was admitted -by Hamilton that it would not be the province of the United States -under ordinary circumstances to cavil over the character of the -government in France, but would be their duty to accept the government -which existed, nevertheless, the extraordinary events which had taken -place at Paris justified a certain reserve towards the revolutionary -powers. - -Entirely apart from the changes in the character of the French -government, it was felt by Hamilton that the time had come to give an -interpretation to the early treaties in harmony with a more -unchallenged independence for the United States, and a more -complete separation from the intrigues of European politics. The -radical character of the Revolution in France, and the action of the -French government itself, gave an excuse for an interpretation of the -treaties which otherwise might not have been found without blushing. -The treaties provided for a defensive alliance with France, and it was -promptly decided by the cabinet that the war of France against Great -Britain was not defensive. Hamilton proposed not only to revise the -treaties, but to resist by the utmost efforts of the federal -government the enlistment of men and the fitting out of privateers in -America in aid of the French. He did not propose, as some of the -friends of France would have desired, that the proclamation of -neutrality should be only a mask for underhanded aid to that country. - -The situation was made as difficult as possible for the government by -the hot temper and indiscretions of the new French minister. These -qualities in him were encouraged by the reception which he received -on the way from Charleston to Philadelphia. He was everywhere welcomed -with such enthusiastic demonstrations of sympathy for France as tended -to make him believe that he was something more than the diplomatic -representative of a foreign country, and could safely interfere in the -politics of the United States. As he approached Philadelphia (May 16, -1793) he found Captain Bompard of the French frigate L'Ambuscade ready -to fire a salute of three guns, and men on swift horses posted along -the road to give notice to the citizens of his coming. - -Genet had no sooner landed at Charleston than he began to fit out -privateers to prey upon British commerce. The Ambuscade herself, which -brought Genet to Charleston, seized several English merchant vessels -on her way to Philadelphia, and crowned her insolence to the United -States by seizing an English vessel, the Grange, within the Delaware -capes, in the jurisdiction of the United States. The Grange was -restored to her owners, but her seizure was only one of many flagrant -violations of international law which were systematically carried out -by the French, and which were defended and often planned by Genet. -When the Polly was stopped from leaving New York fitted out for a -French privateer, Hauterive, the French consul, addressed a note to -Governor Clinton, telling him it was not in a land where Frenchmen had -spilled their blood that they were to be thus harassed. When the -Little Sarah was fitted out as a privateer in Philadelphia, Hamilton -and Knox urged that a battery be placed on one of the islands and that -the vessel be fired upon if she attempted to leave the harbor. -Jefferson was hoodwinked by assurances from Genet that the vessel -would not sail, and himself indulged in some glittering talk against -the United States joining in "the combination of kings against -France." The vessel at once put to sea, and Washington was so -indignant that Jefferson was almost driven to resignation. - -Hamilton had a more direct interest officially in the demands of Genet -for money which was owed to France. Genet not only asked for the -anticipation of payments soon to mature, but insisted that he should -receive the whole amount of the debt. He threw a bait to American -sentiment by the suggestion that the money would be spent in the -United States for provisions and supplies. Hamilton treated his rude -demands just as he would those of any other creditor. He was willing -to anticipate certain payments when the Treasury resources justified -it, but absolutely refused to do more. Genet then threatened to pay -for what he bought with drafts upon the Treasury. Hamilton coolly -retorted that the drafts would not be honored. The Frenchman was -compelled to consume his wrath, not exactly in silence, but without -result upon the government. - -Genet, encouraged by some of the enemies of the administration, -succeeded in working up a strong pro-French sentiment in various parts -of the country. At a dinner in Philadelphia, following his arrival, -songs were sung to France and America, and the red cap of liberty, -which had been forced upon the reluctant head of Louis XVI. in the -great demonstration of the preceding August at the Tuileries, was -passed around the table and successively worn by each of the American -guests. Hamilton, who never had much confidence in pure democracy, -went close to the other extreme in his alarm over these signs of -public opinion. He felt compelled in the summer of 1793 to publish a -series of essays signed "Pacificus," defending the policy of the -administration. These papers, in the language of Mr, Lodge, "served -their purpose of awakening the better part of the community to the -gravity of the situation, and began the work of rallying the friends -of the government to its active support." Genet addressed such -offensive letters to the Department of State, and his conduct became -so intolerable, that the cabinet agreed to send the correspondence to -Paris and ask for his recall. Genet himself published a letter which -revealed his insolence to the public, and caused a revulsion of -sentiment which brought the more sober men of all parties to the side -of Washington. Genet's course was run, and in February, 1794, his -successor came out from France. - -Hamilton soon had opportunities for proving that his policy of -neutrality was directed as much against English as against French -aggression. When Great Britain issued the first Orders in Council, -directing the seizure of all vessels loaded with French produce, -Hamilton declared the British order an outrage, and urged the -fortification of the seaports and the raising of troops. He exerted -himself, however, to restrain popular passion and preserve peace. He -suggested to Washington that a special mission be sent to London to -treat with the British government. The idea was cordially accepted by -Washington. He desired to send Hamilton, but the Virginia party, -headed by Madison and Monroe, strongly opposed the appointment. They -were embittered by recent party conflicts, and regarded Hamilton as -too friendly to British interests. Chief Justice John Jay of New York -was then recommended by Hamilton for the mission. Opposition was made -even to Jay, but the nomination was confirmed (April 19, 1794), and -Hamilton himself drew the outline of the instructions with which Jay -sailed from New York. - -The conflict over the treaty which Jay brought back in the following -winter was one of the most bitter ever waged in American politics. The -contracting parties to the treaty--the United States and Great -Britain--looked at the situation from widely different points of view. -Jay secured the promise of the withdrawal of the British troops from -the frontier posts and an agreement to compensate Americans for losses -through British privateering. The last was an important concession, -because it covertly admitted the British position in regard to -privateering to be in conflict with international law. Some important -commercial concessions were also made by Great Britain, which were -regarded at London as purely gratuitous. But the treaty failed to -secure any compensation for the claims of American citizens for -negroes and other property carried away by the British troops, and -American vessels were forbidden carrying to Europe from English ports -or even from the United States coffee and the other chief colonial -products. Among the latter was named cotton, which was then just -becoming a large element in the production of the South. - -Hamilton himself is said to have characterized the treaty as "an old -woman's treaty," when he first read it, but it soon became evident -that it must be accepted substantially as presented, if war was to be -avoided. Washington called the Senate in extra session in June, 1795, -and after two weeks' debate in secret session the treaty was ratified -by exactly the necessary two thirds vote,--twenty to ten. It was not -until the adjournment of the Senate that the contents of the document -reached the public through Senator Mason of Virginia. The news was -followed by town meetings all over the country demanding that -President Washington refuse to exchange ratifications. So intense was -the feeling that a vessel suspected of being a British privateer was -seized and burned at Boston, a great meeting in Faneuil Hall ordered -a committee to take a protest to Philadelphia, and Hamilton himself -was stoned and refused a hearing at a meeting in New York. But -Washington remained calm. Hamilton, as the responsible leader of the -party, took up the cudgels for ratification. He submitted an elaborate -argument to the cabinet (July 9, 1795), and with an amendment which -the Senate recommended and Great Britain accepted, the treaty went -into operation. - - - - -VII - -HAMILTON AS A PARTY LEADER - - -The ratification of the Jay treaty did much to shake the power of the -Federalists, and for a moment seemed to threaten their ruin. It was -divisions in their own ranks, however, which contributed as much to -this event as any real blunders in public policy. Hamilton was not at -his best in conciliating those who differed from him, and he did not -encounter a more yielding or tactful associate in John Adams. Hamilton -had gone out of his way with little reason at the first presidential -election, in 1788, to secure votes against Adams. His avowed object -was to insure the election of Washington by preventing a tie vote -between Washington and Adams. The original Constitution authorized -each elector to vote for two persons for President and Vice-President, -without designating the office for which either was voted for. This -led to complications which were corrected by an amendment after the -election of 1800. In the case of the first election, however, few sane -men doubted that Washington would have the majority of the votes, and -the only effect of the intrigue of Hamilton was to reduce the vote for -Adams to a point which almost caused his defeat. Hamilton supported -Adams in the second election, in 1792, and the relations between the -two men were reasonably cordial. - -When Washington retired from the presidency, in 1797, the commanding -men in the Federalist party were Hamilton, John Jay, Thomas Pinckney, -and John Adams. Hamilton was the controlling mind in the consultations -of the leaders rather than the sort of man who appealed to the people. -He was not seriously thought of by himself or others as a candidate -for President. Jay was barred by the odium attaching to the treaty -with Great Britain. The choice was therefore reduced to Pinckney and -Adams. Most of the leaders were for Adams, who was superior to -Pinckney in Revolutionary services and ability. It was determined -that the Federalist electors should vote for both Adams and Pinckney, -with the purpose of choosing the former for President and the latter -for Vice-President. Hamilton on this occasion urged that all the -Federalist electors should vote for both Adams and Pinckney. If each -had received an equal number of votes, the choice would have been -thrown into the House and Adams would probably have been elected. -Hamilton erred in letting it be known that he was indifferent whether -the outcome was favorable to Adams or Pinckney, especially when there -was a strong suspicion that he was really for Pinckney. Party -discipline had not then reached its modern development, and votes were -thrown away by Federalist electors,--in the North to prevent a -majority for Pinckney over Adams and in the South to prevent the same -chance in favor of Adams. - -The result of these jealousies was that Adams barely escaped defeat. -He was chosen by a plurality of three, but Pinckney was beaten, and -Jefferson, having the next highest vote, was elected Vice-President. -Adams became firmly convinced that Hamilton was his personal enemy and -would stop at nothing to injure him. That Hamilton was recognized by -all the party leaders as the master mind and the guiding spirit of the -party made no difference to a man of the hot temper and resolute -spirit of John Adams. Tact and conciliation were as far removed from -his nature as from that of any American public man. The indifference -of Hamilton whether he was beaten by Pinckney, in connection with -Hamilton's intrigue in 1788, had convinced Adams that Hamilton did not -feel proper respect for him, and that he was seeking to dictate the -policy of the administration and to thwart and degrade him. Adams -resented any sort of suggestion or consultation, and took delight in -disregarding the suggestions of Hamilton, while the latter struck back -through several members of the cabinet, who were more in sympathy with -him than with the President. - -The country having escaped the danger of immediate war with England by -the Jay treaty, was soon threatened with war with France. Monroe had -been recalled as American Minister at Paris and Charles Pinckney, who -was sent in his place, had been refused a reception. Some of the -Federalists were so incensed against France that they were eager for -war. Hamilton was opposed to war if it could be avoided, but was in -favor of a resolute policy. Adams, although as far as possible from -sympathy with France, believed every reasonable effort should be made -to preserve peace. It was decided, with the approval of both Adams and -Hamilton, to send a commission of three to Paris, to negotiate. Over -the appointment of this commission new differences broke out between -Hamilton and the President. Hamilton favored the appointment of a -Northern and a Southern Federalist and of a Democrat of the highest -standing, like Madison or even Jefferson. Adams was at first disposed -to make these appointments, but finally took both the Federalists from -the South,--Pinckney of South Carolina and John Marshall of -Virginia,--and selected as the third member a Democrat of -comparatively minor standing, Gerry of Massachusetts. - -The commissioners accomplished little good at Paris. They were -insulted and browbeaten and told that only bribery would secure what -they desired. When their treatment became known in the United States, -in the spring of 1798, there was a popular outburst which restored the -Federalists to power in Congress in the following autumn, with a -larger majority than ever before since party divisions became fixed. -Enthusiastic addresses poured in upon President Adams, war vessels -were fitted out by private subscription, and bills were carried at -once for a provisional army, for fortifications, and for the increase -of the navy. Even under this stress of excitement, however, Hamilton -opposed alliance with Great Britain, and persuaded Pickering, the -Secretary of State, to abandon the advocacy of it. - -It was over the organization of the new army that the hostility of -Adams to Hamilton became open and bitter. Washington was selected as -commander-in-chief, but only consented to serve upon the condition -that he should have the choice of the officers who were to rank next -him, and should not be called upon to take an active part until the -army took the field. He recommended to the President that rank in the -Revolutionary army be disregarded and that the three major-generals to -be appointed should be Hamilton, Charles Pinckney, and Knox. This gave -the practical command and the work of the organization to Hamilton. -Adams sent the names to the Senate, in the order suggested by -Washington, and they were promptly confirmed. When he came to signing -the commissions, however, he took the ground that Knox was the senior -officer on account of his rank during the Revolution. Hamilton would -not consent to this arrangement, and all the Federalist leaders, -including members of the cabinet, remonstrated with the President -against it. One of the saddest results of the quarrel was the -alienation from Hamilton of Knox, who had been a friend of many years -and when Secretary of War in Washington's first cabinet had stood -loyally by Hamilton against Jefferson in the controversy over the -financial projects. - -Adams at first seemed to grow more stubborn with the protests which -were made against his action. The leaders finally turned to -Washington. The latter informed the President that if the original -agreement as to the rank of the officers was not kept, he should -resign. Adams, with all his stubbornness and bravery, did not dare -defy the country by forcing Washington from the service. He gave way, -and appointed Hamilton to the first place, but the good feeling which -might have been promoted if he had done so at first was replaced on -both sides by bitterness which was never softened. - -Hamilton, as the practical head of the army, showed the same abounding -energy and capacity for organization which he had shown at the head of -the Treasury. He drafted a plan for the fortification of New York -harbor, made an apportionment of officers and men among the states, -and drew up projects for the organization of the new army, dealing -with the questions of pay, uniforms, rations, promotions, police in -garrisons and camps, and the many other branches of the service. All -these projects received the cordial approval of Washington. When -Congress met, Hamilton was ready with a bill putting the army upon a -basis which would permit its increase or diminution in future without -changing the form of the organization. In the spring of 1799 he was -providing for the defense of the frontiers and planning the invasion -of Louisiana and the Floridas. - -The projects of these invasions of Spanish territory justify a -reference to the continental policy of Hamilton. He was among the -first to maintain that the United States should have complete control -of the valley of the Mississippi, and even during his short term in -the Congress of the Confederation the last resolution which he -presented declared the "navigation of the Mississippi to be a clear -and essential right and to be supported as such." It was left for -Jefferson, Hamilton's great opponent, to carry out his conception of -the acquisition of the Mississippi valley by the purchase of -Louisiana. The admirers of Hamilton credit him with a still wider -vision of the future power of the United States, which was eventually -to bear fruit in the Monroe doctrine and in the celebrated declaration -of Secretary Olney in 1895, that "to-day the United States is -practically sovereign on this continent, and its fiat is law upon the -subjects to which it confines its interposition." Hamilton wrote in -"The Federalist," before the adoption of the Constitution, that "our -situation invites and our situation prompts us to aim at an ascendant -in American affairs." - -The firm attitude of the United States towards France had its effect -at Paris. Talleyrand sent an intimation indirectly to President Adams -that the French government would be glad to receive an American envoy. -Again the impetuosity of Adams divided his party and intensified his -quarrel with the leaders who stood around Hamilton. The name of Vans -Murray was sent to the Senate by the President for Minister to -France, without even consulting the cabinet. Many doubted the wisdom -of snapping up so promptly the offer made by Talleyrand, and more were -incensed at the President's method of doing it. There was at first a -strong disposition among the Federalist leaders to defeat the -nomination in the Senate. Hamilton, however, checked the indignation -of his friends and suggested a way out of the difficulty by appointing -a strong commission. - -The downfall of the Federal party and the retirement of Hamilton from -the active control of national policy were at hand. The passage of the -alien and sedition laws, arrogating to the federal government -intolerable powers of interference with the rights of the press and of -free speech, was one of the causes contributing to the revulsion of -feeling in favor of the party of Jefferson. Hamilton opposed the first -drafts of these laws as cruel, violent, and tyrannical, but he did not -disapprove their final form. The Federalists carried the congressional -elections of 1798, under the impulse of the feeling against France, -but began to lose ground soon after. As the presidential election of -1800 approached, a desperate struggle was made to hold New York for -Federalism as the only hope of defeating Jefferson and reëlecting -Adams. The New York election went against the administration, and -Hamilton pleaded in vain with Governor Jay to defeat the will of the -people by calling the old legislature together and giving the choice -of presidential electors to the congressional districts. It was -perhaps the most discreditable proposal which ever came from Hamilton, -and was promptly rejected by Jay. - -Hamilton's motive was a sincere fear that the country would go to ruin -and the Constitution be endangered by the triumph of the political -school of Jefferson. This might have been the case if it had been the -first election under the Constitution, but Hamilton himself had -builded better than he knew. The financial projects, the national -bank, the suppression of the "Whiskey Insurrection," and the other -measures taken under Washington and Adams had built up a Federal -Union, whose strength could not be seriously shaken by the transfer of -power from one party to another. - -With the shadow of defeat hanging over them, the course of the -Federalist leaders seemed to justify the maxim, "Whom the gods destroy -they first make mad." With the utmost need for harmony and unity, -quarrels broke out which would have wrecked the party even if there -had been otherwise some prospect of its success. Adams drove McHenry -and Pickering from his cabinet because they had betrayed his secrets -to Hamilton, and denounced Hamilton and his friends as a British -faction. Hamilton asked in writing for a denial or explanation of the -charge, but was treated with contemptuous silence. As the presidential -election approached, Hamilton scarcely concealed his preference for -Pinckney, who was again to be voted for by the electors along with -Adams. Hamilton had been so badly treated by the President that he -announced his purpose to prepare a pamphlet, exposing the failings of -Adams and vindicating his own position. - -His best friends stood aghast at the project and labored with him to -abandon it. Hamilton persevered, however, in the preparation of the -pamphlet. He denounced Adams as a man of disgusting egotism, intense -jealousy, and ungovernable temper, and reviewed in a scathing manner -his entire public career, and especially the recent dismissal of the -secretaries who were friendly to Hamilton. After all this criticism, -Hamilton wound up with the lame conclusion that the electors should -vote equally for Adams and Pinckney, in order to preserve Federal -ascendency. He yielded to the protests of his friends so far as to -keep the circulation of the pamphlet within a small circle, but it was -hardly off the press before a copy was in the hands of Aaron Burr, the -Democratic leader in New York, and was used with effect against the -Federalist President. - -The downfall of Federalism came with the presidential election of -1800. Jefferson and Burr were the Democratic candidates for President -and Vice-President. Each was voted for by all the Democratic -electors, giving them an equal number of votes and a majority of the -electoral college. This threw the election into the House of -Representatives, which was Federalist but was compelled by the -provisions of the Constitution to decide between the two leading -candidates, Jefferson and Burr. Some of the Federalists were ready to -stoop to any means for striking at Jefferson, the great representative -of Democratic ideals. If the Federalists in Congress could have -effected a combination with the Democrats from states where Burr was -influential, they might have been able to elect Burr President instead -of Jefferson. But the Democrats, even from New York, voted for -Jefferson, and it was evident that he must be chosen or there would be -no election. Feeling in the country ran high, and there were threats -of violence if the election of Jefferson should be defeated by -intrigue. - -Hamilton behaved on this occasion with the high sense of public duty -which marked most of his acts. Familiar as he was with the -unscrupulous methods and doubtful character of Burr in New York -politics, he felt that it would be criminal to put him in office. He -had little reason to love Jefferson, who had filled the ears of -Washington with slurs against himself, but he felt that the election -belonged to Jefferson and that his defeat by a political intrigue -would be a greater menace than his election to the system established -by the Constitution. With Bayard of Delaware, the Federalist leader in -the House, Hamilton threw himself strongly into the contest against -Burr. His advice was not at first followed. The House ballotted from -the eleventh to the sixteenth of February without reaching a choice. A -caucus of the Federalists was then held; it appeared that Jefferson -had given some assurances of a conservative policy in office, the -views of Hamilton and Bayard prevailed, and on February 17, 1801, the -Federalist members from several states withheld their votes, and -Jefferson was elected. - -The retirement of the Federalists from power substantially ended the -public services of Hamilton. He continued to watch public events with -interest during the remaining five years of his life, and to be -regarded as the leader of the Federalist party, but the party had -shrunk to a corporal's guard in Congress and the long reign of the -Democratic party had begun, which was to be interrupted during only -two presidential terms until the election of Lincoln in 1860. -Hamilton, therefore, at the age of forty-three, had completed his -constructive work and ceased to influence public affairs except by his -writings and speeches. It might almost be said that this work was done -with the close of the administration of Washington in 1797, and that -his great fame would have shone with brighter lustre if he had not -lived to take part in the later differences and quarrels of the Adams -administration. His life was not without service, however, under -Adams, since his influence over members of the cabinet several times -restrained rash policies, and between the conflicting passions of the -champions of France and of the friends of Great Britain, kept the ship -of state steady upon a safe course. - - - - -VIII - -HAMILTON'S DEATH AND CHARACTER - - -The death of Hamilton was in a peculiar sense a part of his public -career. He had never hesitated to denounce in strong terms the public -career and some of the private acts of Aaron Burr. The latter, after -losing the presidency, sought the governorship of New York, and -entered into correspondence with the Federalist leaders in New England -with a view to the formation of a Northern confederacy. Hamilton -succeeded in dividing the Federalist vote in New York so as to give -the election to Lewis, Burr's democratic rival. Burr then determined -to force a personal quarrel upon Hamilton in order to obtain revenge -upon the man who had so often thwarted him. Hamilton had no desire to -fight, but he did not feel able to repudiate the code of the duelist -as it was then accepted among gentlemen. - -It was on June 17, 1804, that Colonel Burr, through his intimate -friend Judge Van Ness, demanded an apology for a criticism by Hamilton -which had reached Burr's ears. Several letters were exchanged before -it became plain that Burr was bound to force a quarrel or to humiliate -Hamilton to a point which he knew would not be endured. When Burr's -true purpose became plain to Hamilton, he requested a short time to -close up several important cases for his clients, which were then -pending in the circuit court. The circuit having terminated, Colonel -Burr was informed (Friday, July 6, 1804) that Hamilton would be ready -to meet him at any time after the following Sunday. Both men realized -that the meeting might be fatal, and prepared for it in a -characteristic way. Burr, who because of his fascinating manners was a -great favorite with women, destroyed the compromising letters which he -had received and devoted his spare hours to pistol practice. Hamilton -had fewer such letters to destroy, and was determined not to kill Burr -if it could be avoided. He drew up his will, and prepared a statement -of his reasons for fighting. This statement set forth that he was -opposed to the practice of dueling and had done all that was -practicable, even beyond the demands of a punctilious delicacy, to -secure an accommodation. He then said:-- - -"I have resolved, if our interview is conducted in the usual manner, -and it pleases God to give me the opportunity, to reserve and throw -away my first fire; and I have thought even of reserving my second, -and thus giving a double opportunity to Colonel Burr to pause and -repent." - -The arrangements for the duel were made on Monday, and on the -following Wednesday (July 11) the meeting took place at seven o'clock -in the morning at Weehawken, three miles above Hoboken, on the west -shore of the Hudson. Burr and Hamilton exchanged salutations, the -seconds measured the distance, which was ten paces, and the parties -took their respective stations. At the first word, Burr fired. -Hamilton's weapon was discharged in the air, and he almost instantly -fell, mortally wounded. The ball struck the second or third false rib, -fractured it about the middle, passed through the liver and diaphragm, -and lodged in the first or second lumbar vertebra. Hamilton was at -first thought to be dead, but he revived when put on board the boat -which was in waiting, and was able to utter a few words as he was -borne towards his home. He died on the day after the meeting at two -o'clock in the afternoon. Even in his death he rendered a parting -service to his countrymen, by the revulsion of feeling which was -everywhere aroused against the practice of dueling. The news of his -premature taking off caused a wave of grief and indignation to spread -over the country, differing from the chastened sorrow felt over the -death of Washington, because Washington had met his end full of years -and honors, and in the natural order of nature. - -The concluding statement made by Hamilton in the paper which he left -regarding his meeting with Burr gives some clue to his reasons for -fighting. This paragraph ran as follows:-- - -"To those who, with me, abhorring the practice of dueling, may think -that I ought on no account to have added to the number of bad -examples, I answer that my relative situation, as well in public as -private, enforcing all the considerations which constitute what men of -the world denominate honor, imposed on me (as I thought) a peculiar -necessity not to decline the call. The ability to be in future useful, -whether in resisting mischief or effecting good, in those crises of -our public affairs which seem likely to happen would probably be -inseparable from a conformity with public prejudice in this -particular." - -This statement has been construed to mean that Hamilton looked forward -to the time when the Constitution would be assailed by extremists and -he would be called by events to put himself at the head of a movement -for a stronger government, and perhaps even to lead an army. Several -passages in his writings, especially after the downfall of the -Federalists, gave color to the view that he feared an outbreak of -Jacobin violence in America, and the failure of the Constitution in -such an event to resist the strain which would be put upon it. In a -letter to Gouverneur Morris (February 27, 1802), he drops into the -following gloomy forebodings:-- - -"Mine is an odd destiny. Perhaps no man in the United States has -sacrificed or done more for the present Constitution than myself; and, -contrary to all my anticipations of its fate, as you know, from the -very beginning, I am still laboring to prop the frail and worthless -fabric. Yet I have the murmurs of its friends no less than the curses -of its foes for my reward. What can I do better than withdraw from the -scene? Every day proves to me more and more that this American world -was not made for me." - -This mood of despondency was not the usual mood of Hamilton. Much as -he abhorred the sympathy with France shown by the Democrats and the -tendency towards French ideas, his habitual temper was for combination -and action rather than surrender. During the three years which -followed the inauguration of Jefferson, he continued, though busy with -his law practice, to keep up in private life an active correspondence -with Federalist leaders throughout the country, and to advise earnest -efforts to defeat Democratic policies. Only the day before the duel, -in a letter to Sedgwick of Massachusetts, he indirectly condemned a -project which was on foot for a combination of the Northern States -into a separate confederacy. He said that "dismemberment of our empire -will be a clear sacrifice of great positive advantages without any -counterbalancing good, administering no relief to our real disease, -which is Democracy." - -Hamilton had fears for the future of the Union under the Constitution -which were much exaggerated by his leanings towards a strong, -self-centred government like that of Great Britain. It is not -unreasonable to believe that he felt that he might again be called -upon to play a great part in politics as the leader of his party, and -that under the prejudices then prevailing he would weaken his -personal influence if he refused a challenge. The public man of that -day who could be charged with cowardice or lack of regard for his -personal honor would suffer much with the masses, if not with the -party leaders, who understood his character and abilities. Hamilton -hardly needed to prove his personal courage to any reasonable man -after his services in the Revolution, including his reckless charge -upon the redoubt at Yorktown, but political foes might forget these -evidences of his character if he should tamely submit to insult from a -political opponent. It is doubtful whether his purpose in meeting Burr -went beyond this submission to the general prejudice in favor of -dueling and the belief on his part that his position as a gentleman -and a political leader required him to accept the challenge. - -The high abilities and great services of Hamilton to the new Union -have been sufficiently set forth in these pages to make unnecessary -any elaborate estimate of his character and attainments. His essential -merit was that of a constructive and organizing mind, which saw the -opportunity for action and was equal to the opportunity. Hamilton was -governed to a large extent by his intellect, but having reasoned out a -proposition to be sound and wise, he rode resolutely to its -accomplishment, taking little account of the obstacles in the way. He -was not a closet philosopher, pursuing abstract propositions to their -sources, and searching, through the discordant threads of human -destiny, the ultimate principles of all things; but his mind was keen -and alert in seizing upon reasoning which seemed obviously sound, -laboring in behalf of his convictions, and presenting them with force -and simplicity to others. He found the career for which he was -preëminently fitted in the organization of the financial system and -the consolidation of the Union, under the first administration of -Washington. He was less fitted for the career of a politician in times -less strenuous, or when tact and finesse were more useful in securing -results than clear reasoning and strong argument. - -Hamilton was cut off when he had only recently resumed his -professional career, but was making a distinguished record at the bar. -Always a great lawyer, he would soon have accumulated a fortune if he -had lived amid the tempting opportunities of to-day. As it was, his -legal fees were modest and his sudden death left large debts. He -bequeathed the request to his sons that they should assume these debts -if his estate was insufficient, but the gratitude of some of the -wealthy Federalists relieved them of this filial obligation. Hamilton -had six sons, but most of them were already approaching a -self-supporting age when he died. His oldest son had fallen a victim -to the barbarous practice of dueling in a petty quarrel at a theatre -three years before the father's death. The fourth son, Mr. John C. -Hamilton, gave much time to the study of his father's career, and -prepared the Life of Hamilton which has been the source of the later -work of historians. Hamilton's widow, the daughter of General -Schuyler, survived until 1854, when she died at the age of -ninety-seven years and three months. - -As a man in private life, Hamilton was loved and respected by those -who came closest to him, but it was as much by the qualities of his -mind as by the special fascinations of his manner. He commanded the -respect and support of most of the leaders of his party, because they -were great enough to grasp and appreciate his reasoning, but he was -never the idol of the people to the same extent as many other leaders. -He would probably have made a great career in whatever direction he -might have turned his high abilities, but he was fortunate in finding -an opportunity for their exercise in a crisis which enabled him to -render greater services to the country than have been rendered by -almost any man in her history, with the exception of Washington and -Lincoln. - - The Riverside Press - - _Electrotyped and printed by H. O. Houghton & Co._ - _Cambridge, Mass., U.S.A._ - - - - - -End of the Project Gutenberg EBook of Alexander Hamilton, by Charles A. 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