CHAPTER TWELVE

Congress reassembles at Philadelphia-Residence of Washington at the new Seat of Government-The State Carriage—Hamilton's Financial Arrangements-Impost and Excise Bill-Passage of a Bill for a National Bank-Jefferson's Objections-Formation of two Political Parties under Hamilton and Jefferson-Their different Views-Dissatisfaction of Congress at the Report of Harmer's Expedition-Washington's Address to the Seneca Chiefs-His Desire to civilize the Savages-Kentucky and Vermont admitted into the Union-First Congress expires-A new Expedition projected against the Hostile Tribes under General St. Clair-Washington's Solemn Warning on taking Leave of him

CONGRESS reassembled, according to adjournment, on the first Monday in December, at Philadelphia, which was now, for a time, the seat of government. A house belonging to Mr. Robert Morris, the financier, had been hired by Washington for his residence, and, at his request, had undergone additions and alterations, in a plain and neat, and not by any means in an extravagant style.

His secretary, Mr. Lear, had made every preparation for his arrival and accommodation, and, among other things, had spoken of the rich and elegant style in which the state carriage was fitted up. "I had rather have heard," replied Washington, "that my coach was plain and elegant than rich and elegant."

Congress, at its opening, was chiefly occupied in financial arrangements, intended to establish the public credit and provide for the expenses of government. According to the statement of the Secretary of the Treasury, an additional annual

revenue of eight hundred and twenty-six thousand dollars would be required, `principally to meet the additional charges arising from the assumption of the State debts. He proposed to raise it by an increase of the impost on foreign distilled spirits, and a tax by way of excise on spirits distilled at home. An Impost and Excise bill was accordingly introduced into Congress, and met with violent opposition. An attempt was made to strike out the excise, but failed, and the whole bill was finally carried through the House.

Mr. Hamilton, in his former Treasury report, had recommended the establishment of a National Bank; he now, in a special report, urged the policy of the measure. A bill introduced in conformity with his views was passed in the Senate, but vehemently opposed in the House; partly on considerations of policy; but chiefly on the ground of constitutionality. On one side it was denied that the constitution had given to Congress the power of incorporation; on the other side it was insisted that such power was incident to the power vested in Congress for raising money.

The question was argued at length, and with great ardor, and after passing the House of Representatives by a majority of nineteen votes, came before the executive for his approval. Washington was fully alive to the magnitude of the question and the interest felt in it by the opposing parties. The cabinet was divided on it. Jefferson and Randolph denied its constitutionality; Hamilton and Knox maintained it. Washington required of each minister the reasons of his opinion in writing; and, after maturely weighing them, gave his sanction to the act, and the bill was carried into effect.

The objection of Jefferson to a bank was not merely on constitutional grounds. In his subsequent writings he avows VOL. XV.-*** 9

himself opposed to banks, as introducing a paper instead of a cash system-raising up a moneyed aristocracy, and abandoning the public to the discretion of avarice and swindlers. Paper money might have some advantages, but its abuses were inevitable, and by breaking up the measure of value, it made a lottery of all private property. These objections he maintained to his dying day; but he had others, which might have been more cogent with him in the present instance. He considered the bank as a powerful engine intended by Hamilton to complete the machinery by which the whole action of the legislature was to be placed under the direction of the Treasury, and shaped to further a monarchial system of government. Washington, he affirmed, was not aware of the drift or effect of Hamilton's schemes. "Unversed in financial projects and calculations and budgets, his approbation of them was bottomed on his confidence in the man.

Washington, however, was not prone to be swayed in his judgments by blind partiality. When he distrusted his own knowledge in regard to any important measure, he asked the written opinions of those of his council who he thought were better informed, and examined and weighed them, and put them to the test of his almost unfailing sagacity. This was the way he had acted as a general, in his military councils, and he found the same plan efficacious in his cabinet. His confidence in Hamilton's talents, information and integrity had led him to seek his counsels; but his approbation of those counsels was bottomed on a careful investigation of them. It was the same in regard to the counsels of Jefferson; they were received with great deference, but always deliberately and scrupulously weighed. The opposite policy of these rival statesmen brought them into incessant collision. "Hamilton and myself," writes Jefferson, "were daily

pitted in the cabinet like two cocks."

The warm-hearted

Knox always sided with his old companion in arms; whose talents he revered. He is often noticed with a disparaging sneer by Jefferson, in consequence. Randolph commonly adhered to the latter. Washington's calm and massive intellect overruled any occasional discord. His policy with regard to his constitutional advisers has been happily estimated by a modern statesman: "He sought no unit cabinet, according to the set phrase of succeeding times. He asked no suppression of sentiment, no concealment of opinion; he exhibited no mean jealousy of high talent in others. He gathered around him the greatest public men of that day, and some of them to be ranked with the greatest of any day. He did not leave Jefferson and Hamilton without the cabinet, to shake, perhaps, the whole fabric of government in their fierce wars and rivalries, but he took them within, where he himself might arbitrate their disputes as they arose, and turn to the best account for the country their suggestions as they were made."*

In the meantime two political parties were forming throughout the Union, under the adverse standards of these statesmen. Both had the good of the country at heart, but differed as to the policy by which it was to be secured. The Federalists, who looked up to Hamilton as their model, were in favor of strengthening the general gov· ernment so as to give it weight and dignity abroad and efficiency at home; to guard it against the encroachments of the individual States and a general tendency to anarchy. The other party, known as republicans or democrats, and taking Mr. Jefferson's view of affairs, saw, in all the meas

*Speech of R. M. T. Hunter, of Virginia.

ures advocated by the Federalists, an intention to convert the Federal into a great central or consolidated government, preparatory to a change from a republic to a monarchy.

The particulars of General Harmer's expedition against the Indians, when reported to Congress, gave great dissatisfaction. The conduct of the troops, in suffering themselves to be surprised, was for some time stigmatized as disgraceful. Further troubles in that quarter were apprehended, for the Miamis were said to be less disheartened by the ravage of their villages than exultant at the successful ambuscades of Little Turtle.

Three Seneca chiefs, Cornplanter, Half Town, and Great Tree, being at the seat of government on business of their own nation, offered to visit these belligerent tribes, and persuade them to bury the hatchet. Washington, in a set speech, encouraged them in the undertaking. "By this humane measure," said he, "you will render these mistaken people a great service, and probably prevent their being swept off the face of the earth. The United States require only that these people should demean themselves peaceably. But they may be assured that the United States are able, and will most certainly punish them severely for all their robberies and murders.'

Washington had always been earnest in his desire to civilize the savages, but had little faith in the expedient which had been pursued, of sending their young men to our colleges; the true means, he thought, was to introduce the arts and habits of husbandry among them. In concluding his speech to the Seneca chiefs, he observed, "When you return to your country, tell your nation that it is my desire to promote their prosperity by teaching them the use of domestic animals, and the manner in which the white people