Life and Times of Washington Part 44

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

When required to produce a system in lieu of that which they objected to, the opponents of the bill alternately mentioned an increased duty on imported articles generally, a particular duty on mola.s.ses, a direct tax, a tax on salaries, pensions, and lawyers, a duty on newspapers, and a stamp act. The friends of the bill contended that the reasons for believing the existing revenue would be insufficient to meet the engagements of the United States were as satisfactory as the nature of the case would admit or as ought to be required. The estimates were founded on the best data which were attainable, and the funds already provided had been calculated by the proper officer to pay the interest on that part of the debt only for which they were pledged. Those estimates were referred to as doc.u.ments from which it would be unsafe to depart. They were also in possession of official statements showing the productiveness of the taxes from the time the revenue bill had been in operation, and arguments were drawn from these demonstrating the danger to which the infant credit of the United States would be exposed by relying on the existing funds for the interest on the a.s.sumed debt.

It was not probable that the proposed duties would yield a sum much exceeding that which would be necessary, but should they fortunately do so, the surplus revenue might be advantageously employed in extinguis.h.i.+ng a part of the princ.i.p.al. They were not, they said, of opinion that a public debt was a public blessing, or that it ought to be perpetuated. An augmentation of the revenue being indispensable to the solidity of the public credit, a more eligible system than that proposed in the bill could not, it was believed, be devised. Still further to burden commerce would be a hazardous experiment, which might afford no real supplies to the treasury. Until some lights should be derived from experience, it behooved the Legislature to be cautious not to lay such impositions upon trade as might probably introduce a spirit of smuggling, which, with a nominal increase, would occasion a real diminution of revenue. In the opinion of the best judges, the impost on the ma.s.s of foreign merchandise could not safely be carried further for the present. The extent of the mercantile capital of the United States would not justify the attempt. Forcible arguments were also drawn from the policy and the justice of multiplying the subjects of taxation and diversifying them by a union of internal with external objects.

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

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

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

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

Hamilton, the Secretary of the Treasury, had been the uniform advocate of a national bank. Believing that such an inst.i.tution would be "of primary importance to the prosperous administration of the finances and of the greatest utility in the operations connected with the support of public credit," he had earnestly recommended its adoption in the first general system which he presented to the view of Congress, and, at the present session, had repeated that recommendation in a special report, containing a copious and perspicuous argument on the policy of the measure. A bill conforming to the plan he suggested was sent down from the Senate and was permitted to proceed, unmolested, in the House of Representatives, to the third reading. On the final question a great, and, it would seem, an unexpected opposition was made to its pa.s.sage.

Mr. Madison, Mr. Giles, General Jackson, and Mr. Stone spoke against it. The general utility of banking systems was not admitted, and the particular bill before the House was censured on its merits; but the great strength of the argument was directed against the const.i.tutional authority of Congress to pa.s.s an act for incorporating a national bank.

The government of the United States, it was said, was limited, and the powers which it might legitimately exercise were enumerated in the const.i.tution itself. In this enumeration the power now contended for was not to be found. Not being expressly given it must be implied from those which were given or it could not be vested in the government.

The clauses under which it could be claimed were then reviewed and critically examined, and it was contended that, on fair construction, no one of these could be understood to imply so important a power as that of creating a corporation.

The clause which enables Congress to pa.s.s all laws necessary and proper to execute the specified powers must, according to the natural and obvious force of the terms and the context, be limited to means necessary to the end and incident to the nature of the specified powers.

The clause, it was said, was in fact merely declaratory of what would have resulted by unavoidable implication, as the appropriate, and as it were technical, means of executing those powers. Some members observed that "the true exposition of a necessary mean to produce a given end was that mean without which the end could not be produced."

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

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

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

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

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

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

The point which had been agitated with so much zeal in the House of Representatives was examined with equal deliberation by the executive.

The cabinet was divided upon it. Jefferson, the Secretary of State, and Randolph, the Attorney-General, conceived that Congress had clearly transcended their const.i.tutional powers, while Hamilton, the Secretary of the Treasury, with equal clearness, maintained the opposite opinion.

The advice of each minister, with his reasoning in support of it, was required in writing, and their arguments were considered by the President with all that attention which the magnitude of the question and the interest taken in it by the opposing parties so eminently required. This deliberate investigation of the subject terminated in a conviction that the const.i.tution of the United States authorized the measure, and the sanction of the Executive was given to the act. [5]

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

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

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

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

General Harmar, a veteran of the Revolution, who had received his appointment under the former government, was placed at the head of the Federal troops. On the 30th of September (1790) he marched from Fort Was.h.i.+ngton with 320 regulars. The whole army, when joined by the militia of Pennsylvania and Kentucky, amounted to 1,453 men. About the middle of October Colonel Harden, who commanded the Kentucky militia, and who had been also a continental officer of considerable merit, was detached at the head of 600 men, chiefly militia, to reconnoiter the ground and to ascertain the intentions of the enemy. On his approach the Indians set fire to their princ.i.p.al village and fled with precipitation to the wood.

As the object of the expedition would be only half accomplished unless the savages could be brought to action and defeated, Colonel Harden was again detached at the head of 210 men, 30 of whom were regulars. About ten miles west of Chilicothe, where the main body of the army lay, he was attacked by a party of Indians. The Pennsylvanians, who composed his left column, had previously fallen in the rear, and the Kentuckians, disregarding the exertions of their colonel and of a few other officers, fled on the first appearance of the enemy. The small corps of regulars, commanded by Lieutenant Armstrong, made a brave resistance. After twenty-three of them had fallen in the field the surviving seven made their escape and rejoined the army.

Notwithstanding this check the remaining towns on the Scioto were reduced to ashes, and the provisions laid up for the winter were entirely destroyed. This service being accomplished the army commenced its march toward Fort Was.h.i.+ngton. Being desirous of wiping off the disgrace which his arms had sustained, General Harmar halted about eight miles from Chilicothe and once more detached Colonel Harden with orders to find the enemy and bring on an engagement. His command consisted of 360 men, of whom 60 were regulars, commanded by Major Wyllys. Early the next morning this detachment reached the confluence of the St. Joseph and St. Mary, where it was divided into three columns. The left division, commanded by Colonel Harden in person, crossed the St. Joseph and proceeded up its western bank. The center, consisting of the Federal troops, was led by Major Wyllys up the eastern side of that river, and the right, under the command of Major M'Millan, marched along a range of heights which commanded the right flank of the center division.

The columns had proceeded but a short distance when each was met by a considerable body of Indians, and a severe engagement ensued. The militia retrieved their reputation, and several of their bravest officers fell. The heights on the right having been, from some cause not mentioned, unoccupied by the American troops, the savages seized them early in the action, and attacked the right flank of the center with great fury. Although Major Wyllys was among the first who fell the battle was maintained by the regulars with spirit, and considerable execution was done on both sides. At length the scanty remnant of this small band, quite overpowered by numbers, was driven off the ground, leaving fifty of their comrades, exclusive of Major Wyllys and Lieutenant Farthingham, dead upon the field. The loss sustained by the militia was also considerable. It amounted to upwards of 100 men, among whom were nine officers. After an engagement of extreme severity the detachment joined the main army, which continued its march to Fort Was.h.i.+ngton.

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

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

With the 3d of March, 1791, terminated the first Congress elected under the const.i.tution of the United States. "The party denominated Federal,"

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

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

A recent writer, speaking of the discussions in the cabinet respecting the bill establis.h.i.+ng a national bank, says:

"Jefferson and Randolph were of opinion that Congress, in pa.s.sing the bill, transcended the powers vested in them by the const.i.tution.

Hamilton, on the other hand, maintained it to be purely const.i.tutional.

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

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

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

2. Footnote: Mr. Hyde was butler.

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

4. Footnote: Republican Court.

5. Footnote: Marshall.

CHAPTER V.

POLITICAL PARTIES DEVELOPED. 1791-1792.

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

After making the necessary arrangements for recruiting the army Was.h.i.+ngton prepared to make his long contemplated tour through the southern States.

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

This tour he performed in his own carriage, drawn by six horses, which were not changed during the journey, which occupied nearly three months.

He was accompanied by one of his private secretaries, Major Jackson.

Leaving his residence in Market street, Philadelphia, he set off in the latter part of March, and was escorted into Delaware by Mr. Jefferson and General Knox. On the 25th of March he arrived at Annapolis, where he was met by the people in a body, entertained at public dinners and a ball, and, after staying two days, was accompanied on his journey by the governor of Maryland, as far as Georgetown. From this place, on the 29th of March, he writes to Gov. Charles Pinckney, of South Carolina: "I had the pleasure of receiving your Excellency's obliging letter of the 8th instant last evening. I am thus far on my tour through the southern States, but as I travel with only one set of horses, and must make occasional halts, the progress of my journey is exposed to such uncertainty as admits not of fixing a day for my arrival at Charleston.

While I express the grateful sense which I entertain of your Excellency's polite offer to accommodate me at your house during my stay in Charleston, your goodness will permit me to deny myself that pleasure. Having, with a view to avoid giving inconvenience to private families, early prescribed to myself the rule of declining all invitations to quarters on my journeys, I have been repeatedly under a similar necessity to the present, of refusing those offers of hospitality which would, otherwise, have been both pleasing and acceptable."