The Life of George Washington, Vol. 4 (of 5)
J >> John Marshall >> The Life of George Washington, Vol. 4 (of 5)Pages:
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30
"Your love of liberty--your respect for the laws--your habits of
industry--and your practice of the moral and religious obligations,
are the strongest claims to national and individual happiness. And
they will, I trust, be firmly and lastingly established."
But the interchange of sentiments with the companions of his military
toils and glory, will excite most interest, because on both sides, the
expressions were dictated by the purest and most delicious feelings of
the human heart. From the Cincinnati of Massachusetts he received the
following address:
"Amidst the various gratulations which your arrival in this metropolis
has occasioned, permit us, the members of the society of the
Cincinnati in this commonwealth, most respectfully to assure you of
the ardour of esteem and affection you have so indelibly fixed in our
hearts, as our glorious leader in war, and illustrious example in
peace.
"After the solemn and endearing farewell on the banks of the Hudson,
which our anxiety presaged as final, most peculiarly pleasing is the
present unexpected meeting. On this occasion we can not avoid the
recollection of the various scenes of toil and danger through which
you conducted us; and while we contemplate various trying periods of
the war, and the triumphs of peace, we rejoice to behold you, induced
by the unanimous voice of your country, entering upon other trials,
and other services alike important, and, in some points of view,
equally hazardous. For the completion of the great purposes which a
grateful country has assigned you, long, very long, may your
invaluable life be preserved. And as the admiring world, while
considering you as a soldier, have long wanted a comparison, may your
virtue and talents as a statesman leave them without a parallel.
"It is not in words to express an attachment founded like ours. We can
only say that when soldiers, our greatest pride was a promptitude of
obedience to your orders; as citizens, our supreme ambition is to
maintain the character of firm supporters of that noble fabric of
federal government over which you preside.
"As members of the society of the Cincinnati, it will be our endeavour
to cherish those sacred principles of charity and fraternal attachment
which our institution inculcates. And while our conduct is thus
regulated, we can never want the patronage of the first of patriots
and the best of men."
To this address the following answer was returned:
"In reciprocating with gratitude and sincerity the multiplied and
affecting gratulations of my fellow citizens of this commonwealth,
they will all of them with justice allow me to say, that none can be
dearer to me than the affectionate assurances which you have
expressed. Dear, indeed, is the occasion which restores an intercourse
with my faithful associates in prosperous and adverse fortune; and
enhanced are the triumphs of peace, participated with those whose
virtue and valour so largely contributed to procure them. To that
virtue and valour your country has confessed her obligations. Be mine
the grateful task to add the testimony of a connexion which it was my
pride to own in the field, and is now my happiness to acknowledge in
the enjoyments of peace and freedom.
"Regulating your conduct by those principles which have heretofore
governed your actions as men, soldiers, and citizens, you will repeat
the obligations conferred on your country, and you will transmit to
posterity an example that must command their admiration and grateful
praise. Long may you continue to enjoy the endearments of fraternal
attachments, and the heartfelt happiness of reflecting that you have
faithfully done your duty.
"While I am permitted to possess the consciousness of this worth,
which has long bound me to you by every tie of affection and esteem, I
will continue to be your sincere and faithful friend."
Soon after his return to New York, the President was informed of the
ill success which had attended his first attempt to negotiate a peace
with the Creek Indians. General Lincoln, Mr. Griffin, and Colonel
Humphries, had been deputed on this mission, and had met M'Gillivray
with several other chiefs, and about two thousand men, at Rock
landing, on the Oconee, on the frontiers of Georgia. The treaty
commenced with favourable appearances, but was soon abruptly broken
off by M'Gillivray. Some difficulties arose on the subject of a
boundary, but the principal obstacles to a peace were supposed to grow
out of his personal interests, and his connexions with Spain.
[Sidenote: North Carolina accedes to the union.]
This intelligence was more than counterbalanced by the accession of
North Carolina to the union. In the month of November, a second
convention had met under the authority of the legislature of that
state, and the constitution was adopted by a great majority.
CHAPTER VI.
Meeting of congress.... President's speech.... Report of the
secretary of the treasury on public credit.... Debate
thereon.... Bill for fixing the permanent seat of
government.... Adjournment of congress.... Treaty with the
Creek Indians.... Relations of the United States with Great
Britain and Spain.... The President visits Mount Vernon....
Session of congress.... The President's speech.... Debates
on the excise.... On a national bank.... The opinions of the
cabinet on the law.... Progress of parties.... War with the
Indians.... Defeat of Harmar.... Adjournment of congress.
{1790}
On the eighth of January, 1790, the President met both houses of
congress in the senate chamber.
[Sidenote: Meeting of the second session of the first congress.]
In his speech, which was delivered from the chair of the vice
president, after congratulating congress on the accession of the
important state of North Carolina to the union, and on the prosperous
aspect of American affairs, he proceeded to recommend certain great
objects of legislation to their more especial consideration.
"Among the many interesting objects," continued the speech, "which
will engage your attention, that of providing for the common defence
will merit your particular regard. To be prepared for war is one of
the most effectual means of preserving peace.
"A free people ought not only to be armed but disciplined; to which
end, a uniform and well digested plan is requisite; and their safety
and interest require that they should promote such manufactories as
tend to render them independent on others for essential, particularly
for military supplies."
As connected with this subject, a proper establishment for the troops
which they might deem indispensable, was suggested for their mature
deliberation; and the indications of a hostile temper given by several
tribes of Indians, were considered as admonishing them of the
necessity of being prepared to afford protection to the frontiers, and
to punish aggression.
The interests of the United States were declared to require that the
means of keeping up their intercourse with foreign nations should be
provided; and the expediency of establishing a uniform rule of
naturalization was suggested.
After expressing his confidence in their attention to many
improvements essential to the prosperity of the interior, the
President added, "nor am I less persuaded that you will agree with me
in opinion that there is nothing which can better deserve your
patronage than the promotion of science and literature. Knowledge is
in every country the surest basis of public happiness. In one, in
which the measures of government receive their impression so
immediately from the sense of the community as in ours, it is
proportionably essential. To the security of a free constitution it
contributes in various ways: by convincing those who are intrusted
with the public administration, that every valuable end of government
is best answered by the enlightened confidence of the people; and by
teaching the people themselves to know and to value their own rights;
to discern and provide against invasions of them; to distinguish
between oppression and the necessary exercise of lawful authority;
between burdens proceeding from a disregard to their convenience, and
those resulting from the inevitable exigencies of society; to
discriminate the spirit of liberty from that of licentiousness,
cherishing the first, avoiding the last, and uniting a speedy but
temperate vigilance against encroachments, with an inviolable respect
to the laws.
"Whether this desirable object will be best promoted by affording aids
to seminaries of learning already established, by the institution of a
national university, or by any other expedients, will be well worthy
of a place in the deliberations of the legislature."
Addressing himself then particularly to the representatives he said:
"I saw with peculiar pleasure at the close of the last session, the
resolution entered into by you, expressive of your opinion, that an
adequate provision for the support of the public credit is a matter of
high importance to the national honour and prosperity. In this
sentiment I entirely concur; and to a perfect confidence in your best
endeavours to devise such a provision as will be truly consistent with
the end, I add an equal reliance on the cheerful co-operation of the
other branch of the legislature. It would be superfluous to specify
inducements to a measure in which the character and permanent
interests of the United States are so obviously and so deeply
concerned; and which has received so explicit a sanction from your
declaration."
Addressing himself again to both houses, he observed, that the
estimates and papers respecting the objects particularly recommended
to their attention would be laid before them; and concluded with
saying, "the welfare of our country is the great object to which our
cares and efforts ought to be directed: and I shall derive great
satisfaction from a co-operation with you in the pleasing though
arduous task of insuring to our fellow citizens the blessings which
they have a right to expect from a free, efficient, and equal
government."
The answers of both houses were indicative of the harmony which
subsisted between the executive and legislative departments.
Congress had been so occupied during its first session with those
bills which were necessary to bring the new system into full
operation, and to create an immediate revenue, that some measures
which possessed great and pressing claims to immediate attention had
been unavoidably deferred. That neglect under which the creditors of
the public had been permitted to languish could not fail to cast an
imputation on the American republics, which had been sincerely
lamented by the wisest among those who administered the former
government. The power to comply substantially with the engagements of
the United States being at length conferred on those who were bound by
them, it was confidently expected by the friends of the constitution
that their country would retrieve its reputation, and that its fame
would no longer be tarnished with the blots which stain a faithless
people.
[Sidenote: Report of the secretary of the treasury of a plan for the
support of public credit.]
On the 9th of January, a letter from the secretary of the treasury to
the speaker of the house of representatives was read, stating that in
obedience to the resolution of the 21st of September, he had prepared
a plan for the support of public credit, which he was ready to report
when the house should be pleased to receive it; and, after a short
debate in which the personal attendance of the secretary for the
purpose of making explanations was urged by some, and opposed by
others, it was resolved that the report should be received in writing
on the succeeding Thursday.
Availing himself of the latitude afforded by the terms of the
resolution under which he acted, the secretary had introduced into his
report an able and comprehensive argument elucidating and supporting
the principles it contained. After displaying, with strength and
perspicuity, the justice and the policy of an adequate provision for
the public debt, he proceeded to discuss the principles on which it
should be made.
"It was agreed," he said, "by all, that the foreign debt should be
provided for according to the precise terms of the contract. It was to
be regretted that, with respect to the domestic debt, the same
unanimity of sentiment did not prevail."
The first point on which the public appeared to be divided, involved
the question, "whether a discrimination ought not to be made between
original holders of the public securities, and present possessors by
purchase." After reviewing the arguments generally urged in its
support, the secretary declared himself against this discrimination.
He deemed it "equally unjust and impolitic; highly injurious even to
the original holders of public securities, and ruinous to public
credit." To the arguments with which he enforced these opinions, he
added the authority of the government of the union. From the circular
address of congress to the states, of the 26th of April, 1783,
accompanying their revenue system of the 18th of the same month,
passages were selected indicating unequivocally, that in the view of
that body the original creditors, and those who had become so by
assignment, had equal claims upon the nation.
After reasoning at great length against a discrimination between the
different creditors of the union, the secretary proceeded to examine
whether a difference ought to be permitted to remain between them and
the creditors of individual states.
Both descriptions of debt were contracted for the same objects, and
were in the main the same. Indeed, a great part of the particular
debts of the states had arisen from assumptions by them on account of
the union; and it was most equitable that there should be the same
measure of retribution for all. There were many reasons, some of which
were stated, for believing this would not be the case, unless the
state debts should be assumed by the nation.
In addition to the injustice of favouring one class of creditors more
than another which was equally meritorious, many arguments were urged
in support of the policy of distributing to all with an equal hand
from the same source.
After an elaborate discussion of these and some other points connected
with the subject, the secretary proposed that a loan should be opened
to the full amount of the debt, as well of the particular states, as
of the union.
The terms to be offered were,--
First. That for every one hundred dollars subscribed payable in the
debt, as well interest as principal, the subscriber should be entitled
to have two-thirds funded on a yearly interest of six per cent, (the
capital redeemable at the pleasure of government by the payment of the
principal) and to receive the other third in lands of the western
territory at their then actual value. Or,
Secondly. To have the whole sum funded at a yearly interest of four
per cent., irredeemable by any payment exceeding five dollars per
annum both on account of principal and interest, and to receive as a
compensation for the reduction of interest, fifteen dollars and eighty
cents, payable in lands as in the preceding case. Or,
Thirdly. To have sixty-six and two-thirds of a dollar funded at a
yearly interest of six per cent., irredeemable also by any payment
exceeding four dollars and two-thirds of a dollar per annum on account
both of principal and interest, and to have at the end of ten years
twenty-six dollars and eighty-eight cents funded at the like interest
and rate of redemption.
In addition to these propositions the creditors were to have an option
of vesting their money in annuities on different plans; and it was
also recommended to open a loan at five per cent, for ten millions of
dollars, payable one half in specie, and the other half in the debt,
irredeemable by any payment exceeding six dollars per annum both of
principal and interest.
By way of experiment, a tontine on principles stated in the report was
also suggested.
The secretary was restrained from proposing to fund the whole debt
immediately at the current rate of interest, by the opinion, "that
although such a provision might not exceed the abilities of the
country, it would require the extension of taxation to a degree, and
to objects which the true interest of the creditors themselves would
forbid. It was therefore to be hoped and expected, that they would
cheerfully concur in such modifications of their claims, on fair and
equitable principles, as would facilitate to the government an
arrangement substantial, durable, and satisfactory to the community.
Exigencies might ere long arise which would call for resources greatly
beyond what was now deemed sufficient for the current service; and
should the faculties of the country be exhausted, or even strained to
provide for the public debt, there could be less reliance on the
sacredness of the provision.
"But while he yielded to the force of these considerations, he did not
lose sight of those fundamental principles of good faith which dictate
that every practicable exertion ought to be made, scrupulously to
fulfil the engagements of government; that no change in the rights of
its creditors ought to be attempted without their voluntary consent;
and that this consent ought to be voluntary in fact, as well as in
name. Consequently, that every proposal of a change ought to be in the
shape of an appeal to their reason and to their interest, not to their
necessities. To this end it was requisite that a fair equivalent
should be offered, for what might be asked to be given up, and
unquestionable security for the remainder." This fair equivalent for
the proposed reduction of interest was, he thought, offered in the
relinquishment of the power to redeem the whole debt at pleasure.
That a free judgment might be exercised by the holders of public
securities in accepting or rejecting the terms offered by the
government, provision was made in the report for paying to
non-subscribing creditors, a dividend of the surplus which should
remain in the treasury after paying the interest of the proposed
loans: but as the funds immediately to be provided, were calculated to
produce only four per cent, on the entire debt, the dividend, for the
present, was not to exceed that rate of interest.
To enable the treasury to support this increased demand upon it, an
augmentation of the duties on imported wines, spirits, tea, and
coffee, was proposed, and a duty on home made spirits was also
recommended.
This celebrated report, which has been alike the fruitful theme of
extravagant praise and bitter censure, merits the more attention,
because the first regular and systematic opposition to the principles
on which the affairs of the union were administered, originated in the
measures which were founded on it.
On the 28th of January, this subject was taken up; and, after some
animadversions on the speculations in the public debt to which the
report, it was said, had already given birth, the business was
postponed until the eighth of February, when it was again brought
forward.
[Sidenote: Debate thereon.]
Several resolutions affirmative of the principles contained in the
report, were moved by Mr. Fitzsimmons. To the first, which respected a
provision for the foreign debt, the house agreed without a dissenting
voice. The second, in favour of appropriating permanent funds for
payment of the interest on the domestic debt, and for the gradual
redemption of the principal, gave rise to a very animated debate.
Mr. Jackson declared his hostility to funding systems generally. To
prove their pernicious influence, he appealed to the histories of
Florence, Genoa, and Great Britain; and, contending that the subject
ought to be deferred until North Carolina should be represented,
moved, that the committee should rise. This question being decided in
the negative, Mr. Scott declared the opinion that the United States
were not bound to pay the domestic creditors the sums specified in the
certificates of debts in their possession. He supported this opinion
by urging, not that the public had received less value than was
expressed on the face of the paper which had been issued, but that
those to whom it had been delivered, by parting with it at two
shillings and sixpence in the pound, had themselves fixed the value of
their claims, and had manifested their willingness to add to their
other sacrifices this deduction from their demand upon the nation. He
therefore moved to amend the resolution before the committee so as to
require a resettlement of the debt.
The amendment was opposed by Mr. Boudinot, Mr. Lawrence, Mr. Ames, Mr.
Sherman, Mr. Hartley, and Mr. Goodhue. They stated at large the terms
on which the debt had been contracted, and urged the confidence which
the creditors had a right to place in the government for its discharge
according to settlements already made, and acknowledgments already
given. The idea that the legislative body could diminish an
ascertained debt was reprobated with great force, as being at the same
time unjust, impolitic, and subversive of every principle on which
public contracts are founded. The evidences of debt possessed by the
creditors of the United States were considered as public bonds, for
the redemption of which the property and the labour of the people were
pledged.
After the debate had been protracted to some length, the question was
taken on Mr. Scott's amendment, and it passed in the negative.
Mr. Madison then rose, and, in an eloquent speech, replete with
argument, proposed an amendment to the resolution, the effect of which
was to discriminate between the public creditors, so as to pay the
present holder of assignable paper the highest price it had borne in
the market, and give the residue to the person with whom the debt was
originally contracted. Where the original creditor had never parted
with his claim, he was to receive the whole sum acknowledged to be due
on the face of the certificate.
This motion was supported by Mr. Jackson, Mr. White, Mr. Moore, Mr.
Page, Mr. Stone, Mr. Scott, and Mr. Seney.
It was opposed with great earnestness and strength of argument, by Mr.
Sedgewick, Mr. Lawrence, Mr. Smith, of South Carolina, Mr. Ames, Mr.
Gerry, Mr. Boudinot, Mr. Wadsworth, Mr. Goodhue, Mr. Hartley, Mr.
Bland, Mr. Benson, Mr. Burke, and Mr. Livermore.
The argument was ably supported on both sides, was long, animated, and
interesting. At length the question was put, and the amendment was
rejected by a great majority.
This discussion deeply engaged the public attention. The proposition
was new and interesting. That the debt ought to be diminished for the
public advantage, was an opinion which had frequently been advanced,
and was maintained by many. But a reduction from the claims of its
present holders for the benefit of those who had sold their rights,
was a measure which saved nothing to the public purse, and was
therefore recommended only by considerations, the operation of which
can never be very extensive. Against it were arranged all who had made
purchases, and a great majority of those who conceived that sound
policy and honest dealing require a literal observance of public
contracts.
Although the decision of congress against a discrimination in favour
of the original creditor produced no considerable sensation, the
determination on that part of the secretary's report which was the
succeeding subject of deliberation, affecting political interests and
powers which are never to be approached without danger, seemed to
unchain all those fierce passions which a high respect for the
government and for those who administered it, had in a great measure
restrained.
The manner in which the several states entered into and conducted the
war of the revolution, will be recollected. Acting in some respects
separately, and in others conjointly, for the attainment of a common
object, their resources were exerted, sometimes under the authority of
congress, sometimes under the authority of the local government, to
repel the enemy wherever he appeared. The debt incurred in support of
the war was therefore, in the first instance, contracted partly by the
continent, and partly by the states. When the system of requisitions
was adopted, the transactions of the union were carried on, almost
entirely, through the agency of the states; and when the measure of
compensating the army for the depreciation of their pay became
necessary, this burden, under the recommendation of congress, was
assumed by the respective states. Some had funded this debt, and paid
the interest upon it. Others had made no provision for the interest;
but all, by taxes, paper money, or purchase, had, in some measure,
reduced the principal. In their exertions some degree of inequality
had obtained; and they looked anxiously to a settlement of accounts,
for the ascertainment of claims which each supposed itself to have
upon the union. Measures to effect this object had been taken by the
former government; but they were slow in their progress, and intrinsic
difficulties were found in the thing itself, not easily to be
overcome.