THE QUARREL WITH HAMILTON

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For more than two years Jefferson had repeatedly expressed the wish to be allowed to return to his native country, at least for a short visit. When he finally received official notification that his request had been granted, he departed from Paris rather abruptly and even without taking leave of his best friends. "Adieus are painful," he wrote to Madame de Corny, "therefore I left Paris without bidding one to you."[234] This is a naÏve and quite significant confession of the difficulty he experienced in maintaining his puritanical restraint and impassibility at that time. He went with his two daughters from Le Havre to Cowes, and waited there till October 14 for favorable winds. After a rapid crossing on the Montgomery they sighted the "Capes" on November 13, and barely escaped being shipwrecked in the bay. Although damaged by fire and stripped of part of her rigging, the ship was able to reach Norfolk, and Jefferson promptly set out for Richmond and Monticello, stopping however on the way at Eppington with the Eppes. It was there that he received two letters from President Washington, one dated October 13, the other November 30, asking him to accept the post of Secretary of State in the newly formed cabinet. The President's letters were most flattering and indicated that he had been "determined, as well by motives of private regard, as a conviction of public propriety" to nominate him for the office.

Jefferson at first experienced the natural repugnance of a man who had put his heart into an important undertaking and was asked suddenly to abandon it. He was better acquainted with the situation in Paris than any man he could think of: it had taken him several years of constant work and patient efforts to bring the French officials over to his views. His best friends were in the new government and would help him to obtain for the United States better commercial terms and a more satisfactory debt settlement. Let us add that for a philosophical observer France offered the most fascinating spectacle, and Jefferson did not feel that life in Philadelphia could bring him the same social and intellectual pleasures as Paris. Quite significantly he wrote to Washington: "as far as my fears, my hopes, or my inclination enter into this question, I confess that they would not lead me to prefer a change." On the other hand, he did not make a categorical refusal, in case he should be "drafted", and the President formally nominated him.

Nothing else was done in the matter until Madison visited him at Monticello and acquainted him with the situation. But even Madison could not win his consent,[235] and the President had to assure Jefferson that the duties of his office would probably not be quite so complicated and hard to execute as he might have been led at the first moment to imagine.[236] It was not a command, but while the President left him free to decide he expressed a strong hope and wish that Jefferson would accept. So, on February 14 he sent his letter of acceptance.

In the meantime he had married Martha to Thomas Mann Randolph, Junior, "a young gentleman of genius, science, and honorable mind", who afterwards filled "a dignified station in the General Government, and the most dignified in his own State."[237] Although Jefferson had wished for such a marriage, he had left Martha free to make her own choice, as he explained in a letter to Madame de Corny: "Tho' his talents, disposition, connections, fortune, were such as would have made him my first choice, yet according to the usage of my country, I scrupulously suppressed my wishes, that my daughter might indulge in her own sentiments freely."[238] The marriage took place on April 2, 1790, and on the next day Jefferson set out for New York to take his place in the Cabinet. He reached Philadelphia on the twelfth. There he stopped to pay his respects to the man "he has succeeded but not replaced", old Doctor Franklin then on the sick bed from which he never arose. "My recent return from a country in which he had left so many friends, and the perilous convulsions to which they had been exposed, revived all his anxieties to know what part they had taken, what had been their course, and what their fate. He went over all in succession with a rapidity and animation almost too much for his strength." It was on this occasion that Franklin put in his hands a paper containing an account of his negotiations with Lord Howe to prevent a war between the colonies and their mother country, papers which, unfortunately, Jefferson entrusted later to William Temple Franklin, who "delayed the publication for more than twenty years."[239] Jefferson arrived in New York on the twenty-first, took his lodgings at the City Tavern, and finally rented a small house in Maiden Lane.

Congress was in session and business had accumulated on the desk of the new secretary: he plunged at once into work. All his colleagues had already taken charge of their respective departments: Colonel Alexander Hamilton was in charge of the Treasury, General Henry Knox of the War Department, Edmund Randolph, Attorney-general. Those were the only departments thus far created and among them the four secretaries divided all the different attributions of the executive power. With them he was to sit in Cabinet meetings presided over by Washington until his retirement from office, in December, 1793.

The distinction usually established between domestic and foreign politics is obviously an arbitrary one and does not correspond to reality. This was particularly true of an age when the attributes of the Secretary of State were far less specialized than in our day. Even if he had been inclined to neglect the questions of internal administration—to give himself entirely to foreign affairs—Jefferson would have been constantly reminded of the existence of many other problems of equal importance to the future of the nation by his colleagues and the President himself. In addition, it was Washington's ordinary practice not only to discuss all important measures in a Cabinet council, but often to request each member of his official family to give his opinion in writing on these questions. Such documents as have been preserved constitute a most precious source of information for the history of the period; they are usefully supplemented by the notes that Jefferson took at the time and transcribed "twenty five years or more" afterwards for the use of posterity. The three volumes "bound in marbled paper" in which Jefferson copied these notes, taken on loose scraps of paper, are the famous "Anas" which he collected to justify himself against the accusations that biographers of Washington—such as Marshall—had already launched against him. Although there is no reason to believe that Jefferson deliberately altered the old records, it is certain that they were edited, that many scraps of papers were discarded, although not destroyed, and that a "critical" edition of the "Anas" would not be without interest. They are preceded by an introduction in which, more than twenty-five years later, Jefferson gave an estimate of his former opponents, Hamilton and John Adams. This final judgment can in no way be used in discussing events that took place between 1790 and 1793, and it contains no indication worth retaining about Jefferson's attitude at that time towards his colleagues and the Vice President. The man who wrote this introduction in February, 1818, was really another Jefferson. He may tell us that he arrived in the midst of a bitter contest, "But a stranger to the ground, a stranger to the actors on it, so long absent as to have lost all familiarity with the subject, and as yet unaware of its object, I took no concern in it."[240] It must be admitted at the outset that such is not the impression one can gather from the correspondence.

That the financial structure of the Continental Congress had collapsed and that immediate remedies were necessary Jefferson knew as well and probably better than any other member of the Cabinet. He had not the expert knowledge of Hamilton, but more than once he had had to deal with financial questions, and when in Paris had displayed considerable skill in dealing with the members of the Committee of Commerce. He had prepared schedules for the payment of the French and Dutch loans and discussed finances with Dutch bankers in Amsterdam. Furthermore, his governorship of Virginia during the war had acquainted him with the question of State debts. If he could be tricked and made to hold the candle, as he said, there was no man who could resist the superior genius and Machiavellism of the arch financier of the United States. As a matter of fact, if he was hoodwinked, he was not at the beginning, at least, a blind or an unwilling victim.

Following the financial reorganization defined by the Constitution and the appointment of a Secretary of the Treasury, according to the Act of 1789, Hamilton prepared for the period under consideration four documents: Report on Public Credit, January 9, 1790; Report on a National Bank, December 5, 1790; Report on the Establishment of a Mint, May 1, 1791; Report on Manufactures, December 5, 1791.

The first subject for consideration was the national debt. The foreign debt was unquestionably a matter of national honor and had to be paid in full, according to the terms of contract: with the arrears of interest it amounted to $11,710,000. The domestic debt was estimated at $27,383,000 for the principal, $13,030,000 for accrued interest and $2,000,000 for unliquidated debt. After some opposition it was finally decided that holders of certificates would receive their face value with interest. But there remained the question of States debts which was hopelessly confused and destined to lead to a bitter controversy. The reorganization plan proposed that repayment could be made in a more orderly way through some sort of a central organization rather than through the States, and outlined the famous "Assumption" by which the Federal Government would "assume", with a discount to be determined, the debts incurred by the several States during the course of the war. It naturally meant that additional revenue had to be raised by Federal measures and consequently distributed between all the States, whose debts varied in nature and amount from State to State, some of which having already proceeded to a semi-reorganization, while others, having not suffered from the war, were financially in good condition. The opposition came naturally from the Southern States, whose population was smaller in comparison with the Northern States.

The opponents of the measure objected very strenuously at first, arguing that it would give an unfair advantage to those that had contracted debts too freely during the war, and would penalize those who had already set their financial house in order; and also that it would be a usurpation of powers not conferred by the Constitution to the Federal Government.

First defeated in Congress, the "Assumption" was finally adopted under circumstances now to be related. Jefferson's unofficial representative in Congress, Madison, had already strenuously opposed the measure proposed by the Secretary of the Treasury. When Jefferson arrived in New York to take possession of his office, the battle had been going on for some time, and four days later he wrote to T. M. Randolph that "Congress is principally occupied with the treasury report. The assumption of the State debts has been voted affirmatively in the first instance, but it is not certain that it will hold its ground through all the changes of the bill when it shall be brought in."[241] There is little doubt that Madison had already acquainted him with his views of the situation, but it is also probable that Jefferson paid small heed to them for the time being. He suffered for several weeks from severe headaches, he had to write many letters of farewell to his French friends, and the accumulation of reports and papers he found on his desk required all his attention.

In June, however, he expressed to George Mason his doubts that the "Assumption" would be finally adopted. But, far from siding with the out-and-out opponents of the measure, he thought it would be wiser to compromise, so he added, "my duties preventing me from mingling in these questions, I do not pretend to be very competent to their decision. In general, I think it necessary to give as well as take in a government like ours."[242]

As a matter of fact, it was already patent that an almost irreconcilable difference of opinion on the matter existed between Hamilton and the Virginians, and, a week later, Jefferson himself invited the Secretary of the Treasury to take dinner at his house with a few friends in order to hold an informal conference; for he 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." Jefferson has related the scene in the "Anas", but a somewhat different account is given in his letter to James Monroe, written June 20, 1790, from New York, in which he outlined the compromise. He mentioned that two considerations had impelled him to discuss it; first the fact that if some funding bill were not agreed to, the credit of the United States at Amsterdam would collapse and vanish and each State be left alone to take care of itself. Although he was not enthusiastic about the means to be employed and foresaw that the United States would have difficulties in raising the necessary money by Federal taxation instead of letting the States raise it themselves, he accepted the solution with open eyes: "In the present instance, I see the necessity of yielding to cries of the creditors in certain parts of the Union; for the sake of the Union, and to save us from the greatest of all calamities, the total extinction of our credit in Europe." More than any member of the Cabinet he was aware of the imminence of this danger. On the other hand, and in order to give some satisfaction to the Southern States, it would be agreed that Congress would be transferred to Philadelphia for a period of twelve to fifteen years, and thereafter, without further declaration, to Georgetown. This was clearly a "deal", and Jefferson knew it so well that he denied that it was one. "The Pennsylvania and Virginia delegates have conducted themselves honorably, on the question of residence. Without descending to talk about bargains, they have seen that their true interests lay in not listening to the insidious propositions made, to divide and defect them, and we have seen them at times voting against their respective wishes rather than separate." Whether the word bargain had been used or not is immaterial. Gentlemen sitting around a table after the cloth has been removed and the punch bowl brought in can come to an understanding "À demi mot."[243] Nothing official had been done yet, but writing to Dumas, the financial agent at Amsterdam, Jefferson, in order to maintain the credit of the country, put his best foot forward and solemnly declared "that there is not one single individual in the United States, whether in or out of office, who supposes they can ever do anything which might impair their foreign contracts." With respect to domestic paper, Dumas could rest assured that "justice would be done" and, although the question was terribly complicated, it was "possible that modifications may be proposed which may bring the measure, yet into an acceptable form."[244]

With Gilmer, he was more frank and indicated clearly that among the possible ways in which the conflict in Congress might yet terminate, the best probably would be "a bargain between the eastern members who have it so much at heart, and the Middle members who are indifferent about it, to adopt these debts without modification, on condition of removing the seat of government to Philadelphia or Baltimore." The third solution, which Jefferson preferred, would have proposed to divide the total sum between all the States in proportion to their census, and to establish the national capital first and temporarily at Philadelphia, then, and permanently at Georgetown.[245] This was not an ideal solution; it was a compromise which would at least present the advantage of giving new life to the agriculture and commerce of the South. The main objection, however, still remained, for the Federal Government would have to raise the imposts and overburden that source of revenue, but it seemed that "some sacrifice was necessary for the sake of peace."[246] Once again, but not for the last time, Jefferson saw himself in a dilemma. He was too far-sighted not to understand that the individual States would have to abandon some of their rights and a portion of their sovereignty in order to acquire more financial stability, and that more power would be concentrated in the hands of the Federal Government. On the other hand, he was no less firmly convinced that a secession would unavoidably result from a rejection of the "Assumption", and he was ready to sacrifice his most cherished preferences on the altar of the Union.

On August 14, Jefferson could announce to Randolph that Congress had separated

the day before yesterday, having reacquired the harmony which always distinguished their proceedings before the two disagreeable questions of assumption and residence were introduced.... It is not foreseen that anything so generative of dissention can arise again, and therefore the friends of the government hope that this difficulty once surmounted in the States, everything will work well. I am principally afraid that commerce will be over loaded by the assumption, believing that it would be better that property should be duly taxed.

He discussed for the first time the exact ways and means in a letter to Gouverneur Morris on November 26, 1790, and indicated that additional funds would be provided by a tax on spirituous liquors, foreign and homemade, that the whole interest would be raised by taxes on consumption.... "Add to this what may be done by throwing in the aid of western lands and other articles as a sinking fund, and our prospect is really a bright one."[247]

It is perfectly true that the letter to Morris was to a great extent for publicity purposes, yet we do not find in it the slightest mark of disapproval of the tax itself, nor do we find it in a letter written to De Moustier[248] in which, on the contrary, Jefferson mentioned the advantages of duties on consumption, which fall principally on the rich; for it is "a general desire to make them contribute the whole money we want, if possible." It was not until February that doubts began to percolate into his mind, and he inquired from Colonel Mason "what was said in our country (Virginia), of the fiscal arrangements now going on." But he did not yet take the question really to heart:

Whether these measures be right or wrong abstractedly, more attention should be paid to the general opinion. However, all will pass,—the excise will pass—the bank will pass. The only corrective of what is corrupt in our present form of government will be the augmentation of the numbers in the lower House, so as to get more agricultural representation, which may put that interest above that of the stock-jobbers.[249]

This is the first indication of a rift between Jefferson and Hamilton.

Yet Jefferson was willing to yield more ground in order to avoid an open break. The Bank Bill of Hamilton had passed the Senate without difficulty; in the House it had been opposed on constitutional grounds by Madison but had finally obtained a majority. When the bill was sent to the President, Washington, unwilling to do anything unconstitutional, asked both the Attorney-general Randolph and Jefferson to give their opinion on the matter in writing. The report written on this occasion by the Secretary of State is a psychological document both interesting and revealing.

Jefferson started out by enumerating the different measures included in the Bank Bill, pointing out en passant that they were intended to break down the most ancient and fundamental laws of several States, such as those against mortmain, the laws of alienage, the rules of descent, the acts of distribution, the laws of escheat and forfeiture, the laws of monopoly. He then demonstrated to his own satisfaction that power to establish such an institution was neither specifically declared nor implied in any article of the Constitution. The only general statement that could be construed as authorizing it was a mention "to make all laws necessary and proper for carrying into execution the enumerated powers." Finally he undertook to prove that the bank might be convenient but was in nowise necessary. The conclusion was obvious after these very closely knitted pieces of legal reasoning: "Nothing but a necessity inevitable by any other means can justify such a prostitution of laws, which constitute the pillars of our whole system of jurisprudence." The President's veto could clearly be used in that case, since that was the buckler provided by the Constitution to protect it against the invasions of the legislature.

ALEXANDER HAMILTON ALEXANDER HAMILTON
From the painting by John Trumbull in the possession of the Essex Institute, Salem, Mass.

Jefferson could and perhaps should have stopped there. But he was far from certain that Hamilton's views would not prevail, and in that case he would have committed himself irrevocably. This he did not wish to do. He consequently provided at the end a way of escape for himself as well as for the President:

It must be added, however, that unless the President's mind on a view of everything which is urged for and against this bill, is tolerably clear that it is unauthorized by the Constitution; if the pro and the con hang so even as to balance his judgment, a just respect for the wisdom of the legislature would naturally decide the balance in favor of their opinion. It is chiefly for cases where they are clearly misled by error, ambition, or interest, that the Constitution has placed a check in the negative of the President.

This was very adroit, almost too adroit. It was the answer of a master politician. Whether it was absolutely straightforward is a very different question. Jefferson, who so often accused others of being "trimmers", was undoubtedly open to such an accusation himself.

With the opinion of Randolph and Jefferson before him, the President asked Hamilton, as sponsor of the bill, to present his rejoinder in writing. On the twenty-third he submitted his famous "Opinion as to the Constitutionality of the Bank of the United States" in which he developed the doctrine of "implied powers."

Now it appears—said Hamilton—to the Secretary of the Treasury that this general principle is inherent in the very definition of government and essential to every step of the progress to be made by that of the United States, namely: That every power vested in a government is in its nature sovereign, and includes, by force of the term, a right to employ all the means requisite and fairly applicable to the attainment of the ends of such power, and which are not precluded by restrictions and exceptions specified in the Constitutions, or not immoral, or not contrary to the essential ends of political society.

As a matter of fact, the question at the bottom of the controversy was the question of State rights; but, curiously enough, it is indicated only incidentally in Jefferson's opinion. He was not ready to join issues on that question, much more clearly brought forward by Madison in his speeches before the House, when he said:

I consider the foundation of the Constitution as laid on this ground: That all powers not delegated to the United States, by the Constitution, nor prohibited by it to the United States, are reserved to the States or to the people (XIIth amendment). To take a single step beyond the boundaries thus specifically drawn around the power of Congress, is to take possession of a boundless field of power, no longer susceptible of definition.[250]

This was exactly the question, for to accept Hamilton's theory was to open the way to countless encroachments of the Federal Government on State rights. Washington's administration had come to its most momentous decision for the future of the government of the United States. This was really the parting of the ways. Jefferson knew it and saw it; it was obvious that, with a centralized financial organization, a central political organization would develop. All sorts of practical considerations may be brought in and nice legal points drawn, but the fact remains that when the representatives of the different States not only permitted but were eager to see the Federal Government assume the responsibility of State debts, they sold their birthright for the not unconsiderable sum of $21,500,000. Perhaps it was the only possible solution at the time. Perhaps Jefferson showed wisdom and political sense in not getting up and fighting to the last ditch. He registered as strong a protest as he could without burning his bridges. He knew from the temper of the House that there was no hope of making them accept any other solution. He knew that against the strongly organized Federalists he could not muster any well-disciplined troops. He feared the immediate dissolution of the Union and temporized; but all the rest of his life was to be spent in trying to recover the ground lost on that day.

Jefferson was soon to realize how poorly equipped and seconded he was when he had to take up the battle practically single-handed.

In the spring of 1791 Madison had loaned him a copy of Thomas Paine's pamphlet, "The Rights of Man", written in answer to Burke's denunciation of the French Revolution. When the owner of the pamphlet requested that it be returned, for it was the only copy at his disposal and he intended to have it reprinted in Philadelphia, Jefferson courteously returned it, and added a short note in which he expressed his satisfaction that such a valuable work would appear in America: "I am extremely pleased to find it will be reprinted here, and that something is at length to be publicly said against the political heresies which have sprung up among us. I have no doubt our citizens will rally a second time round the standard of 'Common Sense.'" There is no indication whatever that Jefferson intended the note for publication, but the printer thought it would help the success of the pamphlet if Jefferson's letter were printed as a preface. All the peaceful intentions of the Secretary of State had come to naught. The word heresies could apply only to the Federalists, and among the Federalists to John Adams, whose "Discourse on Davila" had been appearing in Fenno's paper. Jefferson could declare that nothing was further from his intentions than to appear as a contradictor of Mr. Adams in public; very few men would believe it and Jefferson himself realized it so well that he wrote at once to Washington to explain his position:

Mr. Adams will unquestionably take to himself the charge of political heresy, as conscious of his own views of drawing the present government to the form of the English constitution, and, I fear, will consider me as meaning to injure him in the public eye. I learnt that some Anglomen have, censured it in another point of view, as a sanction of Paine's principles tend to give offence to the British government. Their real fear, however, is that this popular and republican pamphlet, taking wonderfully, is likely at a single stroke, to wipe out all the unconstitutional doctrines which their bell wether Davila has been preaching for a twelvemonth. I certainly never made a secret of my being anti-monarchical, and anti-aristocratical; but I am sincerely mortified to be thus brought forward on the public stage, where to remain, to advance or to retire, will be equally against my love of silence and quiet and my abhorrence of dispute.[251]

His abhorrence of dispute was so real that, at this juncture, he decided to leave Philadelphia for a trip north, staying two days in New York, visiting the battlefield of Saratoga, Lake George, Lake Champlain, and coming back through the Connecticut valley. Madison accompanied him on the trip, and Mr. Bowers has advanced the hypothesis that it was during the long conversations the two friends had during a whole month alone together that the plans were formulated for establishing a separate party to defend the republican ideals. This may have been the result of the journey, but I doubt very much that such was the purpose of Jefferson when he set out from Philadelphia. A more simple explanation is that, having written his letter to Washington and made, as he thought, his position clear, he hoped that the President would not fail to communicate its contents to Adams if any unpleasant situation should develop; and he simply withdrew from the battlefield in order not to enter into a public controversy. But he counted without Adams' temper. The Vice President considered Jefferson's short sentence as a challenge and proceeded promptly to have it answered. A series of articles signed "Publicola" began to appear in the Centinel, denouncing not only Paine, but Jefferson himself. "Brutus" took up the cudgels in favor of Jefferson and the newspaper battle was on. The public, always eager to identify anonymous writers, did not fail to attribute to Adams the articles signed "Publicola", while to Jefferson were attributed the answers written by Agricola, Brutus, and Philodemus. When Jefferson came back from his trip the controversy was raging, and soon he began to enjoy the conflict.

On July 10 he sent to Colonel Monroe a bundle of papers showing "what a dust Paine's pamphlet has kicked up here", and he reiterated his approval of the book:

A writer under the name of Publicola, in attacking Paine's principles, is very desirous of involving me in the same censure with the author. I certainly merit the same, for I profess the same principles; but it is equally certain I never meant to have entered as a volunteer into the cause. My occupations do not permit it. Some persons here are insinuating that I am Brutus, that I am Agricola, that I am Philodemus, etc., etc. I am none of them, being decided not to write a word on the subject, unless any printed imputation should call for a printed disavowal, to which I should put my name.

On the other hand he refused to take seriously the denial that Adams "has no more concern in the publication of the writings of Publicola, than the author of the 'Rights of Man' himself." But he saw with satisfaction that Hamilton had taxed Adams with imprudence in stirring up the question and agreed that "his business was done." What was far more serious was the fury of gambling that had arisen at the opening of the bank: "the land office, the federal town, certain schemes of manufactures, are likely to be converted into aliment for that rage."[252]

In a last effort to placate Adams, however, and chiefly in order to avoid having his name dragged into a public controversy, he wrote to the Vice President "from the conviction that truth, between candid minds can never do harm." He assured him that he had not written "a line for the newspapers." He declared "with truth in the presence of the Almighty that nothing was further from his intention or his expectations than to have either his own or Adams' name brought before the public on this occasion." This was perfectly true, but at the same time he was proposing to appoint Paine Postmaster, and on July 29 he wrote to congratulate him, for, thanks to his little book, the general opinion seemed to rally against a sect high in name but small in number. "They are checked at least by your pamphlet, and the people confirmed in their good old faith."[253] The fact that Adams accepted Jefferson's explanation more gracefully than was to be expected did not prevent the fight from going on. It had already been taken out of the hands of the leaders and the controversy was raging in the papers. At this juncture Jefferson realized that the republicans were very poorly armed in the capital and that they had no paper in which their views could be expressed so as to counteract the pernicious propaganda of Fenno's paper. Thus the result brought about was the foundation of the National Gazette, Philip Freneau's paper, in which Jefferson had a great part. The story has never been told completely and deserves more than passing attention, since Jefferson was soon to be attacked by his enemies for the interest he took in the Gazette. Several documents heretofore neglected allow us to reconstruct exactly the part played by Jefferson in the undertaking, and particularly to settle a few questions of chronology which are not without importance.

It does not appear that Jefferson had any ulterior motives when, on February 28, 1791, he offered to Freneau, then living miserably in New York, the clerkship for foreign languages in the Department of State. "The salary indeed is very low," he wrote, "being but two hundred and fifty dollars a year; but also it gives so little to do, as not to interfere with any other calling the person may choose.... I was told a few days ago that it might perhaps be convenient to you to accept it. If so, it is at your service." Freneau answered promptly, on March 5, that, having been for some time engaged in endeavouring to establish a Weekly Gazette in Monmouth County and having at present a prospect of succeeding in a tolerable subscription, he found himself under the necessity of declining the acceptance of this "generous unsolicited proposal." On May 15, 1791, Jefferson, writing to T. M. Randolph, expressed his discontent at the attitude of the two leading papers of Philadelphia and added:

We have been trying to get another weekly or half weekly paper set up excluding advertisements so that it might go through the States and furnish a right vehicle of intelligence. We hoped at one time to have persuaded Freneau to set up here, but failed—in the meantime Bache's paper, the principles of which were always republican improve it's matter.

Not until August 4 did Freneau write to Jefferson that, after discussing the matter with Madison and Colonel Lee, he had succeeded in making arrangements with a printer in Philadelphia and would submit proposals for the publication of a newspaper. Freneau moved to Philadelphia, was appointed clerk for foreign languages on August 16, and took oath of office the next day. There is consequently no doubt that Freneau was induced to leave New York by the double prospect of working in Jefferson's office and at the same time establishing a republican newspaper. On November 20, Jefferson sent some sample copies to Randolph and wrote again on January 22 to ask his son-in-law to find subscribers to the Gazette. He sent to Freneau a list of subscribers from Charlottesville (March 23, 1792) and wrote to his friends that it was the best paper ever published in America. On November 16, 1792, he announced to Randolph that Freneau's paper was getting into Massachusetts under the patronage of "Hancock, Sam. Adams, Mr. Ames, the colossus of the monocrats and paper men will either be left out or hard run. The people of that State are republican; but hitherto they have heard nothing but the hymns and lauds chaunted by Fenno."

When Freneau was vehemently accused by Hamilton of attacking members of the government while in the pay of the government, Jefferson took up his defense and wrote to the speaker of the House to point out that Freneau received a nominal salary and had even "to pay himself special translators for languages with which he was unacquainted."[254] Finally, on October 11, Freneau sent in his resignation to date from October 1, 1793. Such are the bare facts and as Freneau's paper was to play an important part in the quarrel with Hamilton, it is important to state them exactly.

The battle did not begin in earnest until the first months of 1792. But Jefferson's distaste for the financial structure erected by Hamilton increased during the summer and fall of that year. To Carmichael he grudgingly admitted that the domestic debt "funded at six per cent., is twelve and a half per cent. above par." "But," he added, "a spirit of gambling, in our public paper has seized too many of our citizens, and we fear it will check our commerce, arts, manufactures, and agriculture unless stopped."[255] To Gouverneur Morris he declared that the fever of gambling on government funds has seized everybody, "has laid up our ships at the wharves, as too slow instruments of profit, and has even disarmed the hand of the tailor of his needle and thimble. They say the evil will cure itself. I wish it may; but I have rarely seen a gamester cured, even by the disasters of his vocation."[256]

One may wonder at this point what course of conduct was open to Jefferson. He might have placed his views of the situation before Washington and tried to open his eyes to the danger of the Republic. He might have broken completely with Hamilton and declared to the President that he had to decide between the Secretary of the Treasury and the Secretary of State, but as a matter of fact his hands were tied since he had accepted the "Assumption" and had not dared categorically to decide against the Bank Bill. Apparently he had reached an impasse. But it was not in Jefferson's temperament to try to overcome insuperable obstacles or stay very long in a blind alley. Since experience had shown that the general government "tended to monarchy" and this tendency strengthened itself from day to day, the only remedy was for the States to erect "such barriers at the constitutional line as cannot be surmounted either by themselves or by the General Government."[257] An opportunity presented itself to experiment with the idea in a proposed convocation of a convention in Virginia to amend the Constitution. Jefferson, consulted on this occasion, sent to Archibald Stuart his ideas on the modifications desirable; to lengthen the term of the representatives and diminish their number; to strengthen the Executive by making it more independent of the legislature.

Responsibility is a tremendous engine in a free government. Let him feel the whole weight of it then, by taking away the shelter of his executive council. Experience both ways has already established the superiority of this measure. Render the judiciary respectable by every possible means, to wit, firm tenure in office, competent salaries, and reduction of their numbers.

This was quite characteristic of Jefferson and of his extraordinary tenacity. It was also very good strategy. Since the strengthening of the Federal Government could not be avoided, the only way to avoid a rapid absorption of local government by the Federal machine was to strengthen in a parallel way the State governments. It was an unexpected application of Montesquieu's theory of checks and balances.[258]

Soon afterwards, however, in February, 1792, Jefferson found a favorable opportunity to reveal his ideas to Washington. The occasion that offered itself was the post-office, just reorganized as an independent and self-supporting branch of the government, thus removing it from the tutelage of the Treasury Department. Jefferson at once claimed it for the Department of State, not out of any appetite for power, "his real wish" being to avail the public of every occasion, during the residue of the President's period, to place things on a safe footing. By this he meant that the usurpations of the Treasury Department should be brought to a stop. In a long conversation the next morning after breakfast Jefferson opened his heart, indicating that he would resign before long, to which Washington answered that he could not resign when there were certain signs of dissatisfaction among the public, and that none could foresee what too great a change in the administration might bring about. This was the opening awaited by Jefferson. No wonder the public was dissatisfied, but whose fault was it! There was only one source of discontent, the Department of the Treasury. Then he launched forth on a passionate indictment of the system developed by Hamilton, contrived for deluging the States with paper money instead of gold and silver, "for withdrawing our citizens from the pursuits of commerce, manufactures, buildings, and other branches of useful industry, to occupy themselves and their capitals in a species of gambling, destructive of morality, and which had introduced its poison in the government itself." He indicated that members of Congress had been gambling in stocks and consequently could no longer be depended upon to vote in a disinterested way, for they had "feathered their nests with paper." Finally Jefferson let the cat out of the bag and told the President that the public were awaiting with anxiety his decision with respect to a certain proposition, to find out whether they lived under a limited or an unlimited government. The report on manufactures which had not heretofore drawn particular attention meant to establish the doctrine that the power given by the Constitution to collect taxes to provide for the "general welfare of the United States, permitted Congress to take everything under their management which they should deem public welfare, and which is susceptible of the application of money." He added that his decision was therefore expected with far greater anxiety than that felt over the proposed establishment of the Bank of the United States.[259]

On May 23, Jefferson had found it impossible to have again a heart-to-heart talk with the President, and we may well imagine that Washington rather avoided giving him another opportunity to express himself again so freely with reference to the policy of the Treasury Department. The object of the letter he wrote on that day was twofold; first of all it was to persuade Washington that in spite of his so often manifested intention to retire at the end of his first term, it was his imperious duty to the nation to remain in office. There existed, in Jefferson's opinion, a real emergency and he pointed out at length the dissatisfaction of the South, the separatist tendencies appearing in that quarter, upon seeing what they considered an unfair share of the Federal taxes placed on their shoulders, not only in order to pay the national debt, but also to encourage the Northern industries with bounties. Rumors were circulating everywhere that new measures were on foot to increase the mass of the debts; industry was encouraged at the expense of agriculture; the legislature itself had been corrupted. The only hope of salvation lay in the coming election and in an increase in the number of representatives following the census. But everything would be in question if the President did not run. "The confidence of the whole Union is centered in you. Your being at the helm will be more than an answer to every argument which can be used to alarm and lead the people in any quarter, into violence and secession. North and South will hang together if they have you to hang on."

This incidentally does not sound like a man who was trying to organize a strong political party for his own benefit, and I cannot believe that Jefferson was as deep a politician as Mr. Bowers has made him. He was quite sincere in his desire to retire from office "after the first periodical renovation of the government." He was tired and sick at heart, and his one inclination was "bent irresistibly on the tranquil enjoyment of his family, his farm and his books."[260] On the other hand, he was firmly convinced that the coming elections might change favorably the majority in Congress. They had no chance to be held fairly, however, unless the people had an opportunity to select as President a man who would be above all suspicion, a really national figure enjoying the confidence of every man in every section of the country, such as was Washington alone. Had Washington followed his inclination at that time; had he withdrawn at the end of his first term and left the field free to other candidates, there is no way of surmising what the issue of the campaign of 1792 would have been. Truly Jefferson was right: the fate of the republic was at stake.

Shortly after, Hamilton, who had not yet attacked Jefferson personally, led an offensive against Freneau who was accused by the Gazette of the United States of using his salary for publications, "the design of which is to villify those to whom the voice of the people has committed the administration of our public affairs." But Freneau, in Hamilton's opinion, was only the puppet whose strings were pulled by an arch plotter, and soon the Gazette started direct attacks against Jefferson, asserting that while a member of the Cabinet he had undertaken to undermine the government. Freneau, in an affidavit, denied that Jefferson had any connection with his paper or had dictated or written a single line in it, and at the same time hinted that, on the contrary, the authorship of many articles published in Fenno's Gazette could clearly be attributed to Hamilton. This denial had precisely the value of any such statement issued during political campaigns. It was literally true that Jefferson had never written a line in Freneau's paper, but he had an opportunity to see Freneau every day, since "clerk for foreign languages" had to report to him. He was requesting all his friends to subscribe to Freneau's papers, he was following anxiously the progress of the Gazette in all parts of the Union, and one word from him would have stopped all attacks against Hamilton. In fact, Freneau's paper was just as much Jefferson's paper as if the Secretary of State had written all the articles in it and had owned all the stock.

Hamilton's attacks, however, had a very important and unexpected result. Whether Jefferson had serious political ambitions or not, he was not the man to come out in the open and proclaim himself the leader of a new party. Of a retiring disposition, fearful of public criticism although thirsty for public praise, he was not ready at that time to assume the part and the duties of a political chief. But the savage attacks of the Federalists attracted public attention to him, he was represented so often by them as the champion of republicanism, that discontented republicans began to rally round him and Jefferson was thus invested with the leadership of the new party as much by his enemies as by his friends.

During the summer of 1792, when he was at Monticello, he received from Washington a letter in which the President expressed his distress at the dissensions that had taken place within the government, and once more attempted to bring about a reconciliation between the two secretaries (August 23). Jefferson answered in a long letter. This time his temper had been thoroughly aroused. He had seen articles signed "An American" in Fenno's Gazette, accusing him on three counts: "with having written letters to his friends in Europe to oppose the present constitution; with a desire of repudiating the public debt; with setting up a paper to decry and slander the government." Jefferson had no difficulty in proving the first two accusations absolutely untrue. On the third charge he admitted and even boasted of having given a poet a miserable appointment at a salary of $250 a year, while Hamilton had filled the administration with his creatures. He protested in the name of Heaven that "I never did, by myself, or any other, directly or indirectly, write, dictate, or procure any one sentence of sentiment to be inserted in his, or any other gazette, to which my name was not affixed or that of my office." He confessed, however, that he had always taken it for granted, from his knowledge of Freneau's character, "that he would give free place to pieces written against the aristocratical and monarchical principles these papers had inculcated." He again protested against Hamilton's insinuation that Freneau had received his salary before removing to Philadelphia, and on this point he is supported by the evidence published above. In a very dignified way he assured Washington that he would refrain from engaging in any controversy while in office and that he wished to concentrate all his efforts on the last of his official tasks. He added, however, that he reserved the right to answer later, for, he said: "I will not suffer my retirement to be clouded by the slanders of a man whose history, from the moment at which history can stoop to notice him, is a tissue of machinations against the liberty of the country which has not only received and given him bread, but heaped honors on his head."

Jefferson has sometimes been reproached for having attacked in the "Anas" a dead enemy, but this was no posthumous attack. In one sentence he had expressed not only condemnation of Hamilton's policies but all the scorn of a Virginian, of the old stock, for the immigrant of doubtful birth, who was almost an alien. He knew full well the weight that such a consideration might have on the mind of Washington; it was a subtle but potent appeal to the solidarity of the old Americans against the newcomer. Truly, Jefferson was no mean adversary, and the rapier may be more deadly than the battle-ax. Having thus parried and thrust, he expressed the pious wish that the coming elections would probably vindicate his point of view and that it would not be necessary to make a further appeal to public opinion. He was tired and wished to retire from office at the earliest opportunity, and certainly no clique would receive any support from him during the short space he had to remain in Philadelphia. Monticello was calling him and his most earnest hope was that he would be permitted to forget all political strife in a bucolic retirement.[261]

On his way back to Philadelphia he stopped at Mount Vernon (October 1, 1792) and found Washington still undecided whether he would be a candidate for a second term. The General was not certain that the emergency was such that he must sacrifice his personal preferences. He had consulted Lear about opinion in the North; Jefferson could tell him something about the South. When he was assured that he alone could save the Republic, it was his turn to argue that Jefferson ought to remain in office as long as he himself would be President. Washington said that until very recently he had been unaware that such personal differences existed between the Secretary of State and the Secretary of the Treasury. The old General gently reminded Jefferson that the best way to counteract the action of Hamilton was to remain in office, in order "to keep things in their proper channel, and prevent them from going too far." Finally the President refused to accept wholly the pessimistic forecasts of Jefferson and declared: "That as to the idea of transforming this Government into a monarchy, he did not believe there were ten men in the United States whose opinions were worth attention, who entertained such a thought." He refused to take seriously Jefferson's accusation that Hamilton would have said that "this Constitution was a shilly-shally thing, of mere milk and water, which could not last, and was only good as a step to something better." That as far as corruption in the legislature was concerned, the term was probably too severe; it was simply a manifestation of "interested spirit"; it was what could not be avoided in any government, unless we were to exclude from all office particular descriptions of men, such as the holders of the funds. "For the rest he only knew that before the funding operations he had seen our affairs desperate and our credit lost, and that this was in a sudden and extraordinary degree raised to the highest pitch." With the common sense and poise that were his outstanding qualities, Washington refused to inquire into the ultimate motives of Hamilton. The Secretary of the Treasury had rescued the finances of the country from bankruptcy; he was a good, efficient, and personally honest administrator, and it was Washington's hope that he would be able to keep with him two useful collaborators whom he could not easily replace.

Shall I confess that, in my humble opinion, and in spite of the contrary judgment of several American historians, Washington was probably right. The quarrel between Hamilton and Jefferson is undoubtedly of considerable importance in the history of political parties in the United States. I am not so certain that it exerted so tremendous an influence on the destinies of the nation. Whatever may have been the ambitious schemes of Hamilton, the theoretical preferences of John Adams, it is difficult to see how any one could have succeeded at that time in establishing overnight an hereditary monarchy in the United States. Such a "coup d'État" is always a possibility in the old countries of Europe, all of them more or less centralized and controlled from a national capital; but in 1793 there was no national capital in America, loyalty to the Federal Government was scarcely nascent, citizens had not been accustomed to look to Congress for bounties, assistance, and subsidies. The vastness of the country would have offered insuperable obstacles, even to the genius of a Bonaparte. No real danger existed because, as Montesquieu would have said, a monarchy was not in the nature of things, and both Hamilton and Jefferson would have realized it, if they had not been caught in the maelstrom of political and personal passions.

When Jefferson left Mount Vernon, Washington was still undecided whether he would accept a second term, but Jefferson had determined that he would not stay in office any longer than he could help; and on November 8, he wrote to Humphreys to send all further communications not to him personally, but to the Secretary of State, by title and not by name. News of election was coming slowly, winter had already begun in the northern States. But the news that did arrive was reassuring and Jefferson was able to write on November 16, "the event has been generally in favor of republican, and against the aristocratical candidates." By the beginning of December, the reËlection of Washington being conceded, it appeared that the election of the Vice President "had been seized as a proper one for expressing the public sense on the doctrine of the monocrats." It was already apparent that Adams would be reËlected in spite of a strong vote against him, but Jefferson discounted the significance of the election and attributed it to "the strength of his personal worth and his services, rather than to the merits of his political creed."[262] It seemed that the anti-Federalists had gained control of the lower House and this was a most significant victory.

Then as more news of the election came, telling of the victory of the republicans or, as they were called by derision, the Jacobins, other news arrived from France. The army of the Duke of Brunswick had been forced to retreat and had failed in crushing the republican army of France. "This news," wrote Jefferson, "has given wry faces to our monocrats here, but sincere joy to the great body of the citizens. It arrived only in the afternoon of yesterday, and the bells were rung and some illuminations took place in the evening."[263] Four days later the conviction that a disaster had overcome Brunswick had made great progress, although no other news had been received, and Jefferson had anxiously awaited the arrival of ships from France. But the tide had turned and he wrote to Mercer: "The monocrats here still affect to disbelieve all this, while the republicans are rejoicing and taking to themselves the name of Jacobins which two months ago was fixed on them by way of stigma."[264] The first victory of the republicans coincided with the first victory of the Revolution against the coalition of kings. The French Revolution itself had become a domestic issue and was to inject more passion into the strife between the monocrats and the republicans.


CHAPTER II

                                                                                                                                                                                                                                                                                                           

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