Mon bon ami, si je t’écris cette lettre en français ce n’est pas qu’elle contienne des secrets d’état, car je n’en ai point à te dire, mais c’est qu’elle renferme plusieurs choses particulières et qui jusqu’à nouvel ordre doivent rester entre toi et moi absolument.... Le retour de mon élection est ou perdu ou n’a jamais été envoyé, en sorte que je n’ai pas encore pu prendre siège dans l’Assemblée, et demain l’on va décider si l’élection de nos quatre comtés sera cassée ou non, sans que je puisse prendre part aux débats.... Ci-inclus tu trouveras un abrégé de la dernière révolution de Genève, écrit par D’Yvernois qui est à Londres. Genève est dans la situation la plus triste. Affamé également par les Français et par les Suisses, déchiré par des convulsions sanguinaires auxquelles l’esprit national paraissait si opposé, une grande partie de ses habitants cherchent, et beaucoup sont obligés de quitter ses murs. Plusieurs tournent leurs yeux vers l’Amérique et quelques-uns sont déjà arrivés. D’Yvernois avait formé le plan de transplanter toute l’université de Genève ici, et il m’a écrit sur cet objet ainsi qu’à Mr. Jefferson et à Mr. Adams; mais il supposait qu’on pourrait obtenir des États-Unis pour cet objet 15,000 dollars de revenu, ce qui est impraticable; et il comptait associer à ce projet une compagnie de terres par actions avec un capital de 3 a 400,000 piastres. D’un autre côté les Genevois arrivés ici cherchaient tant pour eux que pour ceux qui devaient les suivre quelque manière de s’établir, de devenir fermiers, &c. Ils se sont adressés à moi, et d’après les lettres de D’Yvernois et les conversations que les nouveaux arrivés et moi avons eues ensemble, nous avons formé un plan d’établissement et une société dans laquelle je t’ai réservé une part. En voici les fondements.... Tu sais bien que je n’ai jamais encouragé personne excepté toi à venir en Amérique de peur qu’ils n’y trouvassent des regrets, mais les temps out changé. Il faut que beaucoup de Genevois émigrent et un grand nombre vont venir en Amérique. J’ai trouvé autant de plaisir que c’était de mon devoir de tâcher de leur offrir le plan qui m’a paru devoir leur convenir le mieux en arrivant. En 1er lieu j’ai cru qu’il serait essentiel qu’ils fussent réunis, non-seulement pour pouvoir s’entr’aider, mais aussi afin d’être à même de retrouver leurs mœurs, leurs habitudes et même leurs amusements de Genève. 2e, que, comme il y aurait parmi les émigrants bien des artisans, hommes de lettres, &c., et qu’il était bon d’ailleurs d’avoir plus d’une ressource, il conviendrait de former une ville ou village dans le centre d’un corps de terres qu’on achèterait pour cela, en sorte qu’on pût exercer une industrie de ville ou de campagne suivant les goûts et les talents. Ci-inclus tu trouveras deux papiers que je viens de retrouver et qui renferment une esquisse des premières idées que j’avais jetées sur les papiers sur ce sujet, et le brouillon de notre plan d’association qui consiste de 150 actions de 800 piastres chacune, dont nous Genevois ici, savoir Odier, Fazzi, deux Cazenove, Cheriot, Bourdillon, Duby, Couronne, toi et moi avons pris 25; nous en offrons 25 autres ici à des Américains et je les ai déjà presque toutes distribuées; je crois même que je pourrais distribuer cent de plus ici sur-le-champ si je voulais; et nous avons envoyé les cent autres à Genève, en Suisse, et à D’Yvernois pour les Genevois qui voudront y prendre part.... En attendant une réponse de Genève nous comptons examiner les terres et peut-être même en acheter, si nous le croyons nécessaire. Il est entendu que c’est à toi et à moi à faire cet examen, car c’est surtout à nous que s’en rapportent tant les émigrés que ceux qui doivent les suivre. J’ai jeté les yeux en général sur la partie nord-est de la Pennsilvanie ou sur la partie de New York qui la joint. Jette les yeux sur la carte et trouve Stockport sur la Delaware et Harmony tout près de là sur la Susquehannah joignant presque l’état de New York. Des gens qui veulent s’intéresser à la chose m’offrent le corps de terres compris entre le Big Bend de la Susquehannah joignant Harmony et la ligne de New York; mais il faut d’abord examiner. Si on casse nos élections, j’emploierai à ce travail cet hiver; sinon, c’est sur toi que nous comptons, bien entendu que quoique ce ne fût pas aussi nécessaire, il me serait bien plus agréable que tu pusses aller avec moi si j’allais moi-même....

In April, 1795, he made an expedition through New York to examine lands with a view to purchase for the projected Geneva settlement. This expedition brought him at last to Philadelphia, where he was detained till August by the trials of the insurgents and by the business of his various joint-stock schemes.

GALLATIN TO HIS WIFE.

Catskill Landing, 22d April, 1795.

... The more I see of this State the better I like Pennsylvania. It may be prejudice, or habit, or whatever you please, but there are some things in the western country which contribute to my happiness, and which I do not find here. Amongst other things which displease me here I may mention, in the first place, family influence. In Pennsylvania not only we have neither Livingstones nor Rensselaers, but from the suburbs of Philadelphia to the banks of the Ohio I do not know a single family that has any extensive influence. An equal distribution of property has rendered every individual independent, and there is amongst us true and real equality. In the next place, the lands on the western side of the river are far inferior in quality to those of Pennsylvania, and in the third place, provisions bear the same price as they do in New York, whence arises a real disadvantage for persons wishing to buy land; for the farmers will sell the land in proportion to the price they can get for their produce, and that price being at present quite extravagant and above the average and common one, the consequence is that the supposed value of land is also much greater. In a word, as I am lazy I like a country where living is cheap, and as I am poor I like a country where no person is very rich....

Philadelphia, May 6, 1795.

... I arrived here yesterday, pretty much jolted by the wagon, and went to bed in the afternoon, so that I saw nobody till this morning.... Hardly had I walked ten minutes in the streets this morning before I was summoned as a witness before the grand jury on the part of government, and must appear there in a few minutes....

8th May, 1795.

... I wrote you that I was summoned on behalf of government. I am obliged to attend every day at court, but have not yet been called upon. I am told the bill upon which I am to be examined is not yet filled. I guess it is against Colonel Gaddis; but I have, so far as I can recollect, nothing to say which in my opinion can hurt him. You remember that Gaddis is the man who gave an affidavit to Lee against me. He came yesterday to me to inform me that he meant to have me summoned in his favor, as he thought my testimony must get him discharged. I did not speak to him about his affidavit, nor he to me, but he had a guilty look. I guess the man was frightened, and now feels disappointed in his hope that his accusing me would discharge him. The petty jury consists of twelve from each of the counties of Fayette, Washington, and Alleghany, and twelve from Northumberland, but none from Westmoreland. Your friend Sproat is one of them, Hoge another. All from Fayette supposed to have been always friendly to the excise, but I think in general good characters. All those of any note known to have been in general of different politics with us....

12th May, 1795.

... The two bills for treason against Mr. Corbly and Mr. Gaddis have been returned ignoramus by the grand jury; but there are two bills found against them for misdemeanor,—against the first for some expressions, against the last for having been concerned in raising the liberty-pole in Union town. I am a witness in both cases,—in the case of Mr. Corbly altogether in his favor; in the other case my evidence will about balance itself.... The grand jury have not yet finished their inquiry, but will conclude it this morning. They have found twenty-two bills for treason. Some of those against whom bills were found are not here; but I believe fourteen are in jail and will be tried. I do not know one of them. John Hamilton, Sedgwick, and Crawford, whom Judge Peters would not admit to bail, and who were released little before we left town, after having been dragged three hundred miles and being in jail three months, are altogether cleared, the grand jury not having even found bills for misdemeanor against them. After the strictest inquiry the attorney-general could send to the grand jury bills only against two inhabitants of Fayette, to wit, Gaddis and one Mounts; he sent two against each of them, one for treason and one for misdemeanor. In the case of Mounts, who has been in jail more than five months, and who was not admitted to give bail, although the best security was offered, not a shadow of proof appeared, although the county was ransacked for witnesses, and both bills were found ignoramus. And it is proper to observe that the grand jury, who are respectable, were, however, all taken from Philadelphia and its neighborhood, and, with only one or two exceptions, out of one party, so that they cannot be suspected of partiality. In the case of Gaddis the bill for treason was returned ignoramus; the bill for misdemeanor was found. So that the whole insurrection of Fayette County amounts to one man accused of misdemeanor for raising a pole. I can form no guess as to the fate of the prisoners who are to be tried for treason, and whether, in case any are found guilty, government mean to put any to death. There is not a single man of influence or consequence amongst them, which makes me hope they may be pardoned. There is one, however, who is said to be Tom the Tinker; he is a New England man, who was concerned in Shay’s insurrection, but it is asserted that he signed the amnesty. I have had nothing but that business in my head since I have been here, and can write about nothing else....

26th May, 1795.

I believe, my dear little wife, that I will not be able to see thee till next week, for the trials go on but very slowly; there has been but one since my last letter, and there are nine more for high treason, besides misdemeanors. I am sorry to add that the man who was tried was found guilty of high treason. He had a very good and favorable jury, six of them from Fayette; for, although he is from Westmoreland County, the fact was committed in Fayette.... There is no doubt of the man [Philip Vigel] being guilty in a legal sense of levying war against the United States, which was the crime charged to him. But he is certainly an object of pity more than of punishment, at least when we consider that death is the punishment, for he is a rough, ignorant German, who knew very well he was committing a riot, and he ought to have been punished for it, but who had certainly no idea that it amounted to levying war and high treason....

1st June, 1795.

... Those trials go still very slowly, only two since I wrote to you; the men called Curtis and Barnet, both indicted for the attack upon and burning Nevil’s house, and both acquitted; the first without much hesitation, as there was at least a strong presumption that he went there either to prevent mischief or at most only as a spectator. The second was as guilty as Mitchell, who has been condemned, but there were not sufficient legal proofs against either. The difference in the verdict arises from the difference of counsel employed in their respective defences, and chiefly from a different choice of jury. Mitchell was very poorly defended by Thomas, the member of Senate, who is young, unexperienced, impudent, and self-conceited. He challenged (that is to say, rejected, for, you know, the accused person has a right to reject thirty-five of the jury without assigning any reason) every inhabitant of Alleghany, and left the case to twelve Quakers (many of them probably old Tories), on the supposition that Quakers would condemn no person to death; but he was utterly mistaken. Lewis defended Barnet, made a very good defence, and got a jury of a different complexion; the consequence of which was that, although the evidence, pleadings, and charge took up from eleven o’clock in the forenoon till three o’clock the next morning, the jury were but fifteen minutes out before they brought in a verdict of not guilty. Brackenridge says that he would always choose a jury of Quakers, or at least Episcopalians, in all common cases, such as murder, rape, etc., but in every possible case of insurrection, rebellion, and treason, give him Presbyterians on the jury by all means. I believe there is at least as much truth as wit in the saying.... I have drawn, at the request of the jury who convicted Philip Vigel, a petition to the President recommending him as a proper object of mercy; they have all signed it, but what effect it will have I do not know, and indeed nobody can form any conjecture whether the persons convicted will be pardoned or not. It rests solely with the President....

GALLATIN TO BADOLLET.

Philadelphia, 20th May, 1795.

I am sorry, my dear friend, that I cannot go and meet you, agreeable to our appointment; but I am detained here as an evidence in the case of Corbly, and of two more in behalf of the United States, although I know nothing about any of them except Corbly. I lend my horse to Cazenove, who goes in my room, and who will tell you what little has passed since I saw you on the subject of our plan. Upon the whole, I conceive that further emigrations from Geneva will not take place at present, and that our plan will not be accepted in Europe. We must therefore depend merely on our own present number and strength, and this you should keep in view in the course of the examination you are now making. Our own convenience and the interest of those few Genevans who now are here must alone be consulted, and it may be a question whether under those circumstances it will be worth while for you and me to abandon our present situation, and for them to encounter the hardships and hazards of a new settlement in the rough country you are now exploring; whether, on the contrary, it would not be more advantageous for them to fix either in the more populous parts of the State, or even in our own neighborhood, where they might perhaps find resources sufficient for a few and enjoy all the advantages resulting from our neighborhood, experience, and influence.

GALLATIN TO HIS WIFE.

Philadelphia, 29th June, 1795.

... You will see in this day’s Philadelphia paper an abstract of the treaty; it is pretty accurate, for I read the treaty itself yesterday. I believe it will be printed at large within a day or two. It exceeds everything I expected.... As to the form of ratification I have not seen it, but from the best information I could collect it is different from what has been printed in some papers. It is, I think, nearly as followeth: The Senate consent to and advise the President to ratify the treaty upon condition that an additional article be added to the same suspending the operation of, or explaining (I do not know which), the 12th Article, so far as relates to the intercourse with the West India Islands. If that information is accurate, it follows that the treaty is not ratified, because the intended additional article, if adopted by Great Britain, is not valid until ratified by the Senate, and unless that further ratification takes place the whole treaty falls through. You know the vote, and that Gunn is the man who has joined the ratifying party. I am told that Burr made a most excellent speech.... I think fortitude is a quality which depends very much upon ourselves, and which we lose more and more for want of exercising it. Indeed, I want it now myself more than you. I have just received a letter from one of my uncles, under date 23d January, which informs me that Miss Pictet is dangerously ill and very little hope of her recovering. She had not yet received my and your letter. I hope she may, for I know how much consolation it would give her; but I have not behaved well....

Gallatin remained in Philadelphia till July 31, to form a new company, dissolving the old one, and joining with Bourdillon, Cazenove, Badollet, and his brother-in-law, James W. Nicholson, in a concern with nine or ten thousand dollars capital, the business being “to purchase lots at the mouth of George’s Creek,” “a mill or two” in the neighborhood, keeping a retail store and perhaps two (the main business), and land speculations on their own account and on commission. After settling the partnership he remained to buy supplies and to get money from Morris, who at last paid him eight hundred dollars cash and gave a note at ninety days for a thousand. On July 31 he started for Fayette.

GALLATIN TO HIS WIFE.

Philadelphia, 31st July, 1795.

... After being detained here two days by the rain, we finally go this moment.... I have settled with Mr. Morris.... I have balanced all my accounts, and find that we are just worth 7000 dollars.... In addition to that, we have our plantation, Mr. Morris’s note for 3500 dollars, due next May, and about 25,000 acres waste lands....

Fayette County, September 6, 1795.

... Upon a further examination of Wilson’s estate I have purchased it at £3000, which is a high price, but then we have the town seat (which is the nearest portage from the western waters to the Potowmack and the Federal city, and as near as any to Philadelphia and Baltimore) and three mill seats, one built, another building, and the third, which is the most valuable, will be on the river-bank, so that we will be able to load boats for New Orleans from the mill-door, and they stand upon one of the best, if not the very best, stream of the whole country. The boat-yards fall also within our purchase, so that, with a good store, we will, in a great degree, command the trade of this part of the country. I have also purchased, for about £300, all the lots that remained unsold in the little village of Greensburgh, on the other side of the river, opposite to our large purchase, and 20 acres of the bottom-land adjoining it. It will become necessary, of course, for us to increase our capital.... As to politics, I have thought but little about them since I have been here. I wish the ratification of the treaty may not involve us in a more serious situation than we have yet been in. May I be mistaken in my fears and everything be for the best! I would not heretofore write to you on the subject of the dispute between your father and Hamilton, as I knew you were not acquainted with it. I feel indeed exceedingly happy that it has terminated so, but I beg of you not to express your sentiments of the treatment I have received with as much warmth as you usually do, for it may tend to inflame the passions of your friends and lead to consequences you would forever regret. It has indeed required all my coolness and temper, and I might perhaps add, all my love for you, not to involve myself in some quarrel with that gentleman or some other of that description; but, however sure you may be that I will not myself, others may, so that I trust that my good girl will be more cautious hereafter....

Philadelphia, 29th September, 1795.

... I arrived here pretty late last night.... Since I wrote to you I received the account which I expected, that of the death of my second mother. I trust, I hope at least, the comfort she must have experienced from hearing she had not been altogether disappointed in the hopes she had formed of me, and in the cares she had bestowed on my youth, will in some degree have made amends for my unpardonable neglect in writing so seldom to her.... I expect to set off to-morrow.

The dispute between Commodore Nicholson and Mr. Hamilton, to which allusion is made above, was a private one, which, of course, had its source in politics. For a time the commodore expected a duel, and it may well be imagined that to a gentleman of his fighting temperament a duel was not altogether without its charm. Mr. Hamilton, however, had too much good sense to seek this species of distinction. The dispute was amicably settled, and probably no one was better pleased at the settlement than Mr. Gallatin, although he had nothing to do with the quarrel.

Mr. Gallatin’s career as a member of Congress now began, and lasted till 1801, when he became Secretary of the Treasury. In some respects it was without a parallel in our history. That a young foreigner, speaking with a foreign accent, laboring under all the odium of the western insurrection, surrounded by friendly rivals like Madison, John Nicholas, W. B. Giles, John Randolph, and Edward Livingston; confronted by opponents like Fisher Ames, Judge Sewall, Harrison Gray Otis, Roger Griswold, James A. Bayard, R. G. Harper, W. L. Smith, of South Carolina, Samuel Dana, of Connecticut, and even John Marshall,—that such a man under such circumstances should have at once seized the leadership of his party, and retained it with firmer and firmer grasp down to the last moment of his service; that he should have done this by the sheer force of ability and character, without ostentation and without the tricks of popularity; that he should have had his leadership admitted without a dispute, and should have held it without a contest, made a curious combination of triumphs. Many of the great parliamentary leaders in America, John Randolph, Henry Clay, Thaddeus Stevens, have maintained their supremacy by their dogmatic and overbearing temper and their powers of sarcasm or invective. Mr. Gallatin seldom indulged in personalities. His temper was under almost perfect control. His power lay in courage, honesty of purpose, and thoroughness of study. Undoubtedly his mind was one of rare power, perhaps for this especial purpose the most apt that America has ever seen; a mind for which no principle was too broad and no detail too delicate; but it was essentially a scientific and not a political mind. Mr. Gallatin always tended to think with an entire disregard of the emotions; he could only with an effort refrain from balancing the opposing sides of a political question. His good fortune threw him into public life at a time when both parties believed that principles were at stake, and when the struggle between those who would bar the progress of democracy and those who led that progress allowed little latitude for doubt on either side in regard to the necessity of their acts. While this condition of things lasted, and it lasted throughout Mr. Gallatin’s stormy Congressional career, he was an ideal party leader, uniting boldness with caution, good temper with earnestness, exact modes of thought with laborious investigation, to a degree that has no parallel in American experience. Perhaps the only famous leader of the House of Representatives who could stand comparison with Mr. Gallatin for the combination of capacities, each carried to uniform excellence, was Mr. Madison; and it was precisely Mr. Madison whom Gallatin supplanted.

On the subject of his Congressional service Mr. Gallatin left two fragmentary memoranda, which may best find place here:

“As both that body [Congress] and the State Legislature sat in Philadelphia, owing also to my short attendance in the United States Senate and my defence of my seat, I was as well known to the members of Congress as their own colleagues, and at once took my stand in that Assembly. The first great debate in which we were engaged was that on the British treaty; and my speech, or rather two speeches, on the constitutional powers of the House, miserably reported and curtailed by B. F. Bache, were, whether I was right or wrong, universally considered as the best on either side. I think that of Mr. Madison superior and more comprehensive, but for this very reason (comprehensiveness) less impressive than mine. Griswold’s reply was thought the best; in my opinion it was that of Goodrich, though this was deficient in perspicuity. Both, however, were second-rate. The most brilliant and eloquent speech was undoubtedly that of Mr. Ames; but it was delivered in reference to the expediency of making the appropriations, and treated but incidentally of the constitutional question. I may here say that though there were, during my six years of Congressional service, many clever men in the Federal party in the House (Griswold, Bayard, Harper, Otis, Smith of South Carolina, Dana, Tracy, Hillhouse, Sitgreaves, &c.), I met with but two superior men, Ames, who sat only during the session of 1795-1796, and John Marshall, who sat only in the session of 1799-1800, and who took an active part in the debates only two or three times, but always with great effect. On our side we were much stronger in the Congress of 1795-1797. But Mr. Madison and Giles (an able commonplace debater) having withdrawn, and Richard Brent become hypochondriac, we were reduced during the important Congress of 1797-1799 to Ed. Livingston, John Nicholas, and myself, whilst the Federalists received the accession of Bayard and Otis. John Marshall came in addition for the Congress of 1799-1801, and we were recruited by John Randolph and Joseph Nicholson.”

“The ground which I occupied in that body [Congress] is well known, and I need not dwell on the share I took in all the important debates and on the great questions which during that period (1795-1801) agitated the public mind, in 1796 the British treaty, in 1798-1800 the hostilities with France and the various unnecessary and obnoxious measures by which the Federal party destroyed itself. It is certainly a subject of self-gratulation that I should have been allowed to take the lead with such coadjutors as Madison, Giles, Livingston, and Nicholas, and that when deprived of the powerful assistance of the two first, who had both withdrawn in 1798, I was able to contend on equal terms with the host of talents collected in the Federal party,—Griswold, Bayard, Harper, Goodrich, Otis, Smith, Sitgreaves, Dana, and even J. Marshall. Yet I was destitute of eloquence, and had to surmount the great obstacle of speaking in a foreign language, with a very bad pronunciation. My advantages consisted in laborious investigation, habits of analysis, thorough knowledge of the subjects under discussion, and more extensive general information, due to an excellent early education, to which I think I may add quickness of apprehension and a sound judgment.

“A member of the opposition during the whole period, it could not have been expected that many important measures should have been successfully introduced by me. Yet an impulse was given in some respects which had a powerful influence on the spirit and leading principles of subsequent Administrations. The principal questions in which I was engaged related to constitutional construction or to the finances. Though not quite so orthodox on the first subject as my Virginia friends (witness the United States Bank and internal improvements), I was opposed to any usurpation of powers by the general government. But I was specially jealous of Executive encroachments, and to keep that branch within the strict limits of Constitution and of law, allowing no more discretion than what appeared strictly necessary, was my constant effort.

“The financial department in the House was quite vacant, so far at least as the opposition was concerned; and having made myself complete master of the subject and occupied that field almost exclusively, it is not astonishing that my views should have been adopted by the Republican party and been acted upon when they came into power. My first step was to have a standing committee of ways and means appointed. That this should not have been sooner done proves the existing bias in favor of increasing as far as possible the power of the Executive branch. The next thing was to demonstrate that the expenditure had till then exceeded the income: the remedy proposed was economy. Economy means order and skill; and after having determined the proper and necessary objects of expense, the Legislature cannot enforce true economy otherwise than by making specific appropriations. Even these must be made with due knowledge of the subject, since, if carried too far by too many subdivisions, they become injurious, if not impracticable. This subject has ever been a bone of contention between the legislative and executive branches in every representative government, and it is in reality the only proper and efficient legislative check on executive prodigality.

“Respecting the objects of expenditure, there was not, apart from that connected with the French hostilities, any other subject of division but that of the navy. And the true question was whether the creation of an efficient navy should be postponed to the payment of the public debt.” ...

During Mr. Gallatin’s maiden session of Congress, the exciting winter of 1795-96, when the first of our great party contests took place, not even a private letter seems to have been written by him that throws light on his acts or thoughts. His wife was with him in Philadelphia. If he wrote confidentially to any other person, his letters are now lost. The only material for his biography is in the Annals of Congress and in his speeches, with the replies they provoked; a material long since worn threadbare by biographers and historians.

Of all portions of our national history none has been more often or more carefully described and discussed than the struggle over Mr. Jay’s treaty. No candid man can deny that there was at the time ample room for honest difference of opinion in regard to the national policy. That Mr. Jay’s treaty was a bad one few persons even then ventured to dispute; no one would venture on its merits to defend it now. There has been no moment since 1810 when the United States would have hesitated to prefer war rather than peace on such terms. No excuse in the temporary advantages which the treaty gained can wholly palliate the concessions of principle which it yielded, and no considerations of a possible war with England averted or postponed can blind history to the fact that this blessing of peace was obtained by the sacrifice of national consistency and by the violation of neutrality towards France. The treaty recognized the right of Great Britain to capture French property in American vessels, whilst British property in the same situation was protected from capture by our previous treaty with France; and, what was yet worse, the acknowledgment that provisions might be treated as contraband not only contradicted all our principles, but subjected the United States government to the charge of a mean connivance in the British effort to famish France, while securing America from pecuniary loss.

Nevertheless, for good and solid reasons, the Senate at the time approved, and President Washington, after long deliberation, signed, the treaty. The fear of a war with Great Britain, the desire to gain possession of the Western posts, and the commercial interests involved in a neutral trade daily becoming more lucrative, were the chief motives to this course. So far as Mr. Gallatin’s private opinions were concerned, it is probable that no one felt much more aversion to the treaty than he did; but before he took his seat in Congress the Senate had approved and the President had signed it; a strong feeling in its favor existed among his own constituents, always in dread of Indian difficulties; the treaty, in short, was law, and the House had only to consider the legislation necessary to carry it into effect.

Bad as the treaty was, both in its omissions and in its admissions, as a matter of foreign relations, these defects were almost trifles when compared with its mischievous results at home. It thrust a sword into the body politic. So far as it went, and it went no small distance, it tended to overturn the established balance of our neutrality and to throw the country into the arms of England. Nothing could have so effectually arrayed the two great domestic parties in sharply defined opposition to each other, and nothing could have aroused more bitterness of personal feeling. In recent times there has been a general disposition to explain away and to soften down the opinions and passions of that day; to throw a veil over their violence; to imagine a possible middle ground, from which the acts and motives of all parties will appear patriotic and wise, and their extravagance a mere misunderstanding. Such treatment of history makes both parties ridiculous. The two brilliant men who led the two great divisions of national thought were not mere declaimers; they never for a moment misunderstood each other; they were in deadly earnest, and no compromise between them ever was or ever will be possible. Mr. Jefferson meant that the American system should be a democracy, and he would rather have let the world perish than that this principle, which to him represented all that man was worth, should fail. Mr. Hamilton considered democracy a fatal curse, and meant to stop its progress. The partial truce which the first Administration of Washington had imposed on both parties, although really closed by the retirement of Mr. Jefferson from the Cabinet, was finally broken only by the arrival of Mr. Jay’s treaty. From that moment repose was impossible until one party or the other had triumphed beyond hope of resistance; and it was easy to see which of the two parties must triumph in the end.

One of the immediate and most dangerous results of the British treaty was to put the new Constitution to a very serious test. The theory which divides our government into departments, executive, legislative, and judicial, and which makes each department supreme in its own sphere, could not be worked out with even theoretical perfection; the framers of the Constitution were themselves obliged to admit exceptions in this arrangement of powers, and one of the most serious exceptions related to treaties. The Constitution begins by saying, “All legislative powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives,” and proceeds to give Congress the express power “to make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States or in any department or officer thereof.” But on the other hand the Constitution also says that the President “shall have power, by and with the advice and consent of the Senate, to make treaties,” and finally it declares that “this Constitution, and the laws of the United States which shall be made in pursuance thereof, and all treaties made, or which shall be made, under the authority of the United States shall be the supreme law of the land,” State laws or constitutions to the contrary notwithstanding.

Here was an obvious conflict of powers, resulting from an equally obvious divergence of theory. Congress possessed all legislative powers. The President and Senate possessed the power to make treaties, which were, like the Constitution and the laws of Congress, the supreme law of the land. Congress, then, did not possess all legislative powers. The President alone, with two-thirds of the Senate, could legislate.

The British treaty contained provisions which could only be carried into execution by act of Congress; it was, therefore, within the power of the House of Representatives to refuse legislation and thus practically break the treaty. The House was so evenly divided that no one could foresee the result, when Edward Livingston began this famous debate by moving to call on the President for papers, in order that the House might deliberate with official knowledge of the conditions under which the treaty was negotiated.

The Federalists met this motion by asserting that under the Constitution the House had no right to the papers, no right to deliberate on the merits of the treaty, no right to refuse legislation. In Mr. Griswold’s words, “The House of Representatives have nothing to do with the treaty but provide for its execution.” Untenable as this ground obviously was, and one which no respectable legislative body could possibly accept, it was boldly taken by the Federalists, who plunged into the contest with their characteristic audacity and indomitable courage, traits that compel respect even for their blunders.

The debate began on March 7, 1796, and on the 10th Mr. Gallatin spoke, attacking the constitutional doctrine of the Federalists and laying down his own. He claimed for the House, not a power to make treaties, but a check upon the treaty-making power when clashing with the special powers expressly vested in Congress by the Constitution; he showed the existence of this check in the British constitution, and he showed its necessity in our own, for, “if the treaty-making power is not limited by existing laws, or if it repeals the laws that clash with it, or if the Legislature is obliged to repeal the laws so clashing, then the legislative power in fact resides in the President and Senate, and they can, by employing an Indian tribe, pass any law under the color of treaty.”

The argument was irresistible; it was never answered; and indeed the mere statement is enough to leave only a sense of surprise that the Federalists should have hazarded themselves on such preposterous ground. Some seventy years later, when the purchase of Alaska brought this subject again before the House on the question of appropriating the purchase-money stipulated by the treaty, the Administration abandoned the old Federalist position; the right of the House to call for papers, to deliberate on the merits of the treaty, even to refuse appropriations if the treaty was inconsistent with the Constitution or with the established policy of the country, was fully conceded. The Administration only made the reasonable claim that if, upon just consideration, a treaty was found to be clearly within the constitutional powers of the government, and consistent with the national policy, then it was the duty of each co-ordinate branch of the government to shape its action accordingly.[31] This claim was recognized; the House voted the money, and the controversy may be considered at an end. In 1796, on the contrary, Mr. Griswold, whose reply to Mr. Gallatin’s argument was considered the most effective, and who never shrank from a logical conclusion however extreme, admitted and asserted that the legislative power did reside in the President and Senate to the exclusion of the House, and added, “Allowing this to be the case, what follows?—that the people have clothed the President and Senate with a very important power.”

On this theme the debate was continued for several weeks; but the Federalists were in a false position, and were consequently overmatched in argument. Madison, W. C. Nicholas, Edward Livingston, and many other members of the opposition, in speeches of marked ability, supported the claim of their House. The speakers on the other side were obliged to take the attitude of betraying the rights of their own body in order to exaggerate the powers of the Executive, and as this practice was entirely in accordance with the aristocratic theory of government, they subjected themselves to the suspicion at least of acting with ulterior motives.

On the 23d March, Mr. Gallatin closed the debate for his side of the House by a second speech, in which he took more advanced ground. He had before devoted his strength to overthrowing the constitutional theory of his opponents; he now undertook the far more difficult task of establishing one of his own. The Federalist side of the House was not the temperate side in this debate, and Mr. Gallatin had more than one personal attack to complain of, but he paid no attention to personalities, and went on to complete his argument. Inasmuch as the Federalists characterized their opponents on this question as disorganizers, disunionists, and traitors, and even to this day numbers of intelligent persons still labor under strong prejudice against the Republican opposition to Washington’s Administration, a few sentences from Mr. Gallatin’s second speech shall be inserted here to show precisely how far he and his party did in fact go:

“The power claimed by the House is not that of negotiating and proposing treaties; it is not an active and operative power of making and repealing treaties; it is not a power which absorbs and destroys the constitutional right of the President and Senate to make treaties; it is only a negative, a restraining power on those subjects over which Congress has the right to legislate. On the contrary, the power claimed for the President and Senate is that, under color of making treaties, of proposing and originating laws; it is an active and operative power of making laws and of repealing laws; it is a power which supersedes and annihilates the constitutional powers vested in Congress.

“If it is asked, in what situation a treaty is which has been made by the President and Senate, but which contains stipulations on legislative objects, until Congress has carried them into effect? whether it is the law of the land and binding upon the two nations? I might answer that such a treaty is precisely in the same situation with a similar one concluded by Great Britain before Parliament has carried it into effect.

“But if a direct answer is insisted on, I would say that it is in some respects an inchoate act. It is the law of the land and binding upon the American nation in all its parts, except so far as relates to those stipulations. Its final fate, in case of refusal on the part of Congress to carry those stipulations into effect, would depend on the will of the other nation.”

The Federalists had in this debate failed to hold well together; the ground assumed by Mr. Griswold was too extreme for some even among the leaders, and concessions were made on that side which fatally shook their position; but among the Republicans there was concurrence almost, if not quite, universal in the statements of the argument by Mr. Madison and Mr. Gallatin, and this closing authoritative position of Mr. Gallatin was on the same day adopted by the House on a vote of 62 to 37, only five members not voting.

The Administration might perhaps have contented itself with refusing the papers called for by the House, and left the matter as it stood, seeing that the resolution calling for the papers said not a word about the treaty-making power, and the journals of the House contained no allusion to the subject; or the President might have contented himself with simply asserting his own powers and the rights of his own Department; but, as has been already seen, there was at this time an absence of fixed precedent which occasionally led executive officers to take liberties with the Legislature such as would never afterwards have been tolerated. The President sent a message to the House which was far from calculated to soothe angry feeling. Two passages were especially invidious. In one the President adverted to the debates held in the House. In the other he assumed a position in curious contrast to his generally cautious tone: “Having been a member of the general convention, and knowing the principles on which the Constitution was formed, I have, &c., &c.” For the President of the United States on such an occasion to appeal to his personal knowledge of the intentions of a body of men who gave him no authority for that purpose, and whose intentions were not a matter of paramount importance, seeing that by universal consent it was not their intentions which interpreted the Constitution, but the intentions of the people who adopted it; and for him to use this language to a body of which Mr. Madison was leader, and which had adopted Mr. Madison’s views, was a step not likely to diminish the perils of the situation. Had the President been any other than Washington, or perhaps had the House been led by another than Madison, the opportunity for a ferocious retort would probably have been irresistible. As it was, the House acted with great forbearance; it left unnoticed this very vulnerable part of the message, and in reply to the implication that the House claimed to make its assent “necessary to the validity of a treaty,” it contented itself with passing a resolution defining its own precise claim. On this resolution Mr. Madison spoke at some length and with perfect temper in reply to what could only be considered as the personal challenge contained in the message, while Mr. Gallatin did not speak at all. The resolutions were adopted by 57 to 35, and the House then turned to the merits of the treaty.

On this subject Mr. Gallatin spoke at considerable length on the 26th April, a few days before the close of the debate. The situation was extremely difficult. In the country at large opinion was as closely divided as it was in the House itself. Even at the present moment it is not easy to decide in favor of either party. Nothing but the personal authority of General Washington carried the hesitating assent of great masses of Federalists. Nothing but fear of war made approval even remotely possible. Whether the danger of war was really so great as the friends of the treaty averred may be doubted. No Federalist Administration would have made war on England, for it was a cardinal principle with the Hamiltonian wing of the party that only through peace with England could their ascendency be preserved, while war with England avowedly meant a dissolution of the Union by their own act.[32] The Republicans wanted no war with England, as they afterwards proved by enduring insults that would in our day rouse to madness every intelligent human being within the national borders. Nevertheless war appeared or was represented as inevitable in 1796; the eloquent speech of Fisher Ames contained no other argument of any weight; it was abject fear to which he appealed: “You are a father: the blood of your sons shall fatten your corn-field. You are a mother: the war-whoop shall wake the sleep of the cradle.”

It was the truth of this reproach on the weakness of the argument for the treaty that made the sting of Mr. Gallatin’s closing remarks:

“I cannot help considering the cry of war, the threats of a dissolution of government, and the present alarm, as designed for the same purpose, that of making an impression on the fears of this House. It was through the fear of being involved in a war that the negotiation with Great Britain originated; under the impression of fear the treaty has been negotiated and signed; a fear of the same danger, that of war, promoted its ratification: and now every imaginary mischief which can alarm our fears is conjured up, in order to deprive us of that discretion which this House thinks it has a right to exercise, and in order to force us to carry the treaty into effect.”

Nevertheless Mr. Gallatin carefully abstained from advocating a refusal to carry the treaty into effect. With his usual caution he held his party back from any violent step; he even went so far as to avow his wish that the treaty might not now be defeated:

“The further detention of our posts, the national stain that would result from receiving no reparation for the spoliations on our trade, and the uncertainty of a final adjustment of our differences with Great Britain, are the three evils which strike me as resulting from a rejection of the treaty; and when to these considerations I add that of the present situation of the country, of the agitation of the public mind, and of the advantages that would arise from a union of sentiments; however injurious and unequal I conceive the treaty to be, however repugnant it may be to my feelings and, perhaps, to my prejudices, I feel induced to vote for it, and will not give my assent to any proposition which would imply its rejection.”

He also carefully avoided taking the ground which was undoubtedly first in his anxieties, that of the bearing which the treaty would have on our relations with France. This was a subject which his semi-Gallican origin debarred him from dwelling upon. The position he took was a new one, and for his party perfectly safe and proper; it was that, in view of the conduct of Great Britain since the treaty was signed, her impressment of our seamen, her uninterrupted spoliations on our trade, especially in the seizure of provision vessels, “a proceeding which they might perhaps justify by one of the articles of the treaty,” a postponement of action was advisable until assurances were received from Great Britain that she meant in future to conduct herself as a friend.

This was the ground on which the party recorded their vote against the resolution declaring it expedient to make appropriations for carrying the treaty into effect. In committee the division was 49 to 49,—Muhlenberg, the chairman, throwing his vote in favor of the resolution, and thus carrying it to the House. There the appropriation was voted by 51 to 48.

Perhaps the only individual in any branch of the government who was immediately and greatly benefited by the British treaty was Mr. Gallatin; he had by common consent distinguished himself in debate and in counsel; bolder and more active than Mr. Madison, he was followed by his party with instinctive confidence; henceforth his leadership was recognized by the entire country.

Absorbing as the treaty debate was, it did not prevent other and very weighty legislation. One Act, adopted in the midst of the excitement of the treaty, was peculiarly important, and, although the idea itself was not new, Mr. Gallatin was the first to embody it in law, so far as any single individual can lay claim to that distinction. This Act created the land-system of the United States government; it applied only to lands north-west of the Ohio River, in which the Indian titles had been extinguished, and it provided for laying these out in townships, six miles square, and for selling the land in sections, under certain reservations. This land-system, always a subject of special interest to Mr. Gallatin, and owing its existence primarily to his efforts while a legislator, took afterwards an immense development in his hands while he was Secretary of the Treasury, and, had he been allowed to carry out his schemes, would probably have been made by him the foundation of a magnificent system of internal improvement. Circumstances prevented him from realizing his plan; only the land-system itself and the Cumberland Road remained to testify the breadth and accuracy of his views; but even these were achievements of the highest national importance.

Deeply as these two subjects interested him, his permanent and peculiar task was a different one. To Mr. Gallatin finance was an instinct. He knew well, as Mr. Hamilton had equally clearly understood before him, that the heart of the government was the Treasury; like many another man of high financial reputation, he had little talent for money-making, and never was, or cared to be, rich; but he had one great advantage over most Americans of his time, even over Mr. Hamilton and Mr. Jefferson; he was an economist as well as a statesman; he was exact not merely in the details but in the morality of affairs; he held debt in horror; punctilious exactness in avoiding debt was his final axiom in finance; the discharge of debt was his first principle in statesmanship; searching and rigid economy was his invariable demand whether in or out of office, and he made this demand imperative upon himself as upon others.

Mr. Hamilton, to whom the organization of the financial system was due, and who left public life just as Gallatin began his Congressional career, had belonged to a different school and had acted on different principles. Adhering more or less closely to the English financial and economical theories then in vogue, he had intentionally constructed a somewhat elaborate fabric, of which a considerable national debt was the foundation. Had Mr. Hamilton foreseen in 1790 the course public affairs would take during the next ten years, he would perhaps have modified his plan and would have guarded more carefully against overloading the Treasury; but at that moment it was not unreasonable to suppose that what the country wanted was centralization, and that a national debt was one means of consolidating divergent local interests. Mr. Hamilton, therefore, accepted as much debt as he thought the country could reasonably bear, and allowed the rest to be expunged. In forming this debt he had at least in one respect permitted an unnecessary and very mischievous addition to be made to the acknowledged and existing national burden. In order to settle the accounts between the States, he had permitted Congress—perhaps forced Congress—to assume a large proportion of the State debts. The balance to be adjusted by payment of the debtor to the creditor States was ultimately ascertained to be a little more than $8,000,000. To settle this account as nearly as it was settled in fact, required an assumption of State debts to the amount of $11,609,000; but, instead of waiting for a settlement of accounts, Congress had, in 1790, voted to assume a certain amount of State debts at once and to charge each State in the ultimate settlement with the amount assumed on her account. A sum of over $18,000,000 was thus funded, and so much debt transferred from the States to the national government. In addition to this sum a further amount of about $3,500,000 was funded in order to get rid of the balances in favor of the creditor States. Altogether, including back interest from 1790 to 1795, a debt of $22,500,000 was imposed on the new government, where half that sum would have answered the purpose, and of this about $2,000,000 was actually new debt, created for the occasion.

The entire amount of the national debt when fairly funded was about $78,000,000. Had no political complications in its foreign relations embarrassed the government, this burden might have been easily carried in spite of Indian wars and even in spite of the whiskey rebellion, though these troubles steadily tended to increase the sum. The annual charge was in 1796 nearly $4,000,000, but after the year 1800 an additional charge of $1,100,000 on deferred stock was to be provided for by taxation, and this future addition to the annual charge hung over the government during all these years as a perpetual anxiety. The population of the country in 1791 was not quite 4,000,000 souls, of whom 700,000 were slaves. The expenditures, including the charge on the debt, amounted in 1796 to about $7,000,000 a year, and the receipts nearly balanced the expenditures. Considering the poverty of the country, taxation was high; so high as to make any increase dangerous. Thus the new government was not in a condition to hazard experiments, and needed five or ten years of careful management in order to give the country time for expansion.

In the middle of this state of affairs, while the Treasury was wrestling with the problems of Indian wars and domestic revolt, came the ominous signs of foreign aggression. War was thought to be imminent, either with France or England, from 1795 to 1800, and the government was in great straits to provide for it. The time now came when the Federalists would probably have been delighted to recover the ten millions which had been unnecessarily assumed, and the theory of a national debt must have taken a different aspect in their eyes. Mr. Hamilton had not calculated on this emergency; his system had rested on the assumption that the old situation was to be permanent. The question was forced upon the country whether it should increase its debt or neglect its defences.

Here was the point where the theories of Mr. Hamilton and of Mr. Gallatin sharply diverged. The Federalists in a body demanded an army and navy, with an indefinite increase of debt. Mr. Gallatin and his party demanded that both army and navy should be postponed until they could be created without increase of debt. The question as a matter of statesmanship was extremely difficult. In a country like America any really efficient defence, either by land or sea, was out of the question except at an appalling cost, yet to be quite defenceless was to tempt aggression. Deeper feelings, too, were involved in the dispute. An army and a navy might be used for domestic as well as foreign purposes; to use the words of Fisher Ames in private consultation with the Secretary of the Treasury in 1800, when the situation was most critical: “a few thousand, or even a few hundred, regular troops, well officered, would give the first advantages to government in every contest;”[33] and this idea was always foremost in the minds of the extreme Federalists as it was among the extreme Republicans. To crush democracy by force was the ultimate resource of Hamilton. To crush that force was the determined intention of Jefferson.

Mr. Gallatin’s policy was early, openly, and vigorously avowed and persistently maintained. In this session of 1795-96, when appropriations for finishing three frigates were demanded, he said in a few words what he continued to say to the end of his service: “I am sensible that an opinion of our strength will operate to a certain degree on other nations; but I think a real addition of strength will go farther in defending us than mere opinion. If the sums to be expended to build and maintain the frigates were applied to paying a part of our national debt, the payment would make us more respectable in the eyes of foreign nations than all the frigates we can build. To spend money unnecessarily at present will diminish our future resources, and instead of enabling us will perhaps render it more difficult for us to build a navy some years hence.” “Perhaps I may be asked if we are then to be left without protection. I think there are means of protection which arise from our peculiar situation, and that we ought not to borrow institutions from other nations, for which we are not fit. If our commerce has increased, notwithstanding its want of protection; if we have a greater number of seamen than any other nation except England, this, I think, points out the way in which commerce ought to be protected. The fact is, that our only mode of warfare against European nations at sea is by putting our seamen on board privateers and covering the sea with them; these would annoy their trade and distress them more than any other mode of defence we can adopt.”[34]

Yet government has to deal with beings ruled not only by reason but by feeling, and its success depends on the degree to which it can satisfy or at least compromise between the double standard of criticism. Mr. Gallatin habitually made too little allowance for the force and complexity of human passions and instincts. Self-contained and self-reliant himself, and, like most close reasoners, distrustful of everything that had a mere feeling for its justification, he held government down to an exact observance of rules that made no allowance for national pride. The three frigates whose construction he so pertinaciously resisted were the Constitution, the Constellation, and the United States. The time came, after Mr. Gallatin and his party had for nearly twelve years carried out their own theories with almost absolute power, when the American people, bankrupt and disgraced on land, turned with a frenzy of enthusiasm towards the three flags which these frigates were carrying on the ocean, and, with little regard to party differences, would have seen the national debt and no small part of the national life expunged rather than have parted with the glories of these ships; when the broadsides of the Constitution and United States, to use the words of George Canning in the British Parliament, “produced a sensation in England scarcely to be equalled by the most violent convulsion of nature;” and when Mr. Gallatin himself, exhausting every resource of diplomacy in half the courts of Europe, found that his country had no national dignity abroad except what these frigates had conquered.

Notwithstanding all this, and with every motive to recognize in the fullest extent the honors won by the American navy, the cool and candid decision of history should be that Mr. Gallatin was essentially in the right. A few years of care and economy were alone necessary in order to secure the certainty of national power, and that power would be so safe in its isolation as to be able to dispense with great armies and navies. The real injury suffered by Great Britain in the war of 1812 was not in the loss of half a dozen vessels of war out of her eight hundred in commission, but in the ravages of our privateers on her commercial marine. As a matter of fact the United States have continued to act on Mr. Gallatin’s theory; government has never pretended to protect the national commerce by a powerful navy; no navy, not even that of Great Britain, could protect it in case of war. That commerce has continued to flourish without such protection. Every one concedes that it would be the wildest folly even now, with forty millions of people and a continent to protect, for America to establish a proportionate navy. Every smatterer in finance knows that, inefficient as the existing navy is, hundreds of millions have been uselessly expended upon it. There could be no more instructive thesis proposed to future Secretaries of the Treasury than to ask themselves on entering into office, “What would Mr. Gallatin wish to do with the navy were he now in my place?”

But opposition to a navy was only a detail in Mr. Gallatin’s theory of American finance, and his plans extended over a far wider range than could be comprehended within the limits of one or many speeches. The debate on the British treaty had, no doubt, won him a large share of attention, but the essentials of power in a deliberative body are only to be secured by labor and activity and by mastery of the business in hand. Mr. Gallatin knew perfectly well what was to be done, and lost no time in acting. Before the House had been ten days in session, on the 17th December, 1795, he brought forward a resolution for the appointment of “a committee to superintend the general operations of finance. No subject,” said he, “more requires a system, and great advantages will be derived from it.” This is the origin of the standing Committee of Ways and Means, the want of which hitherto he ascribed, it seems, to Mr. Hamilton’s jealousy of legislative supervision. On the 21st December the resolution was adopted and a committee of fourteen appointed, Mr. William Smith, of South Carolina, being chairman, supported by Theodore Sedgwick, Madison, Gallatin, and other important members of the House.

The British treaty consumed most of this session, and until that question was settled the regular business was much neglected; but Mr. Gallatin did not wait till then in order to begin his attack. As early as April 12, 1796, a somewhat warm debate arose in the House on the subject of the debt, and he undertook, with an elaborate comparison of receipts and expenditures, to analyze the financial situation and to show that the revenue was steadily running behindhand. The true situation of the government was a point not altogether easy to ascertain. One of several English ideas adopted by Mr. Hamilton from Mr. Pitt was a sinking fund apparatus. Even at that time of Mr. Pitt’s supreme authority it can hardly be conceived that any one really believed a sinking fund to be effective so long as the government’s expenditure exceeded its income; it was, however, certainly the fashion to affect a belief in its efficacy at all times, and although, if Mr. Pitt and Mr. Hamilton had been pressed on the subject, they might perhaps have agreed that a sinking fund was always expensive and never efficient except when there was a surplus, they would in the end have fallen back on the theory that it inspired confidence in ultimate payment of the debt. Their opponents would not unnaturally consider it to be a mere fraud designed to cover and conceal the true situation.

Apart, however, from every question of the operation of the sinking fund, there were intrinsic difficulties in ascertaining the facts. The question was, as in such cases it is apt to be, in a great degree one of accounts. The immediate matter in dispute was a sum of $3,800,000 advanced by the bank in anticipation of revenue. Mr. Sedgwick and the Administration wished to fund it, and made considerable effort to prove that the debt would not only be unaffected thereby, but that, as a matter of fact, the debt had been diminished. Mr. Gallatin opposed the funding, and insisted that provision should be made for its payment, and he undertook to prove by a comparison of receipts and expenditures that the debt had been increased $2,800,000 down to the 1st January, 1796. It was felt to be a crucial point, and Mr. Gallatin was not allowed to go unanswered. On the last day of the session Mr. William Smith replied to him, elaborately proving that so far from there being a total increase of $5,000,000 in the debt, as he had undertaken to show, there was an actual excess of over $2,000,000 in favor of the government. To this Mr. Gallatin made an immediate reply, Mr. Smith rejoined, and the session ended.

Of course each party adhered to its own view, which was a matter of very little consequence so long as Mr. Gallatin gained his point of fixing public attention upon the subject; his aim was to educate his own party and to plant his own principles deep in popular convictions. After the adjournment he wrote a book for this purpose called “A Sketch of the Finances of the United States,” which was in fact a text-book, and answered its purpose admirably. In two hundred pages, with a few tabular statements appended, he discussed the revenues, expenditures, and debt of the United States with his usual clearness, and, while avoiding all apparent party feeling, he freely criticised the financial measures of the government. The duty of preventing increase of debt, of discharging the principal as soon as possible, was the foundation of the work; criticisms of the cases in which the burden had been unnecessarily increased were interwoven in the statement, which concluded with suggestions of additional sources of revenue.[35]

Thus already in the first year of his Congressional service Mr. Gallatin had sketched out and begun to infuse into his party those financial schemes and theories that were ultimately to be realized when they came into power. That these ideas, as forming a single complete body of finance, were essentially new, has already been remarked. In theory Mr. Hamilton also was in favor of discharging the debt, and originated the machinery for doing so; that is to say, he originated the sinking fund machinery, or rather borrowed it from Mr. Pitt, although this financial juggle has now become, both in England and America, a monument of folly rather than of wisdom; while a much more effectual step was taken in the last year of his service, when he recommended the conversion of the six per cents. into an eight per cent. annuity for twenty-three years, which was equivalent to an annual appropriation of about $800,000 a year for the payment of the principal. This, however, was not the real point of difference between the systems of Mr. Gallatin and Mr. Hamilton. Laying entirely aside the general proposition that the Hamiltonian Federalists considered a national debt as in itself a desirable institution, and conceding that the Federalists would themselves have ultimately reduced or discharged it, there still remains the fact that the Federalists made the debt a subordinate, Mr. Gallatin made it a paramount, consideration in politics. The one believed that if debt was not a positive good, it was a far smaller evil than the growth of French democracy; the other, that debt was the most potent source of all political evils and the most active centre of every social corruption. The Hamiltonian doctrine was that the United States should be a strong government, ready and able to maintain its dignity abroad and its authority at home by arms. Mr. Gallatin maintained that its dignity would protect itself if its resources were carefully used for self-development, while its domestic authority should rest only on consent.

Which of these views was correct is quite another matter. Certain it is that the system so long and ably maintained by Mr. Gallatin was rudely overthrown by the war of 1812, and overthrew Mr. Gallatin with it. Equally certain it is that the United States naturally and safely gravitated back to Mr. Gallatin’s system after the war of 1812, and has consistently followed it to the present time. The debt has been repeatedly discharged. Neither army nor navy has been increased over the proportions fixed by Mr. Gallatin and Mr. Jefferson. Commerce protects itself not by arms nor even by the fear of arms, but by the interests it creates. America has pursued in fact an American system,—the system of Mr. Gallatin.

True it also is that this result does not settle the question as between Mr. Hamilton and Mr. Gallatin, for there were special circumstances which then made the situation exceptional. As has been said, the war of 1812 was a practical demonstration of at least the momentary failure of Mr. Gallatin’s principle, and the failure occurred in dealing with precisely those difficulties which the Federalists had foreseen and tried to provide for. The question therefore recurs, whether the Federalist policy would have resulted better, and this is one of those inquiries which lose themselves in speculation. There is no answer to so large a problem.

Congress rose on the 1st June, 1796, and Mr. and Mrs. Gallatin passed the summer in New York. Meanwhile, the co-partnership in which he had engaged had resulted in establishing on George’s Creek a little settlement named New Geneva, and here were carried on various kinds of business, the most important and profitable of which was that of glass-making, begun during Mr. Gallatin’s absence in the spring of 1797.

Leaving his wife in New York, Mr. Gallatin went to New Geneva for a few weeks in the autumn of 1796.

GALLATIN TO HIS WIFE.

Philadelphia, 26th September, 1796.

... I arrived here last Saturday.... I have received pretty positive and certain information that Findley will be re-elected unanimously in our district, my name not being mentioned there, and that I will be superseded in Washington and Alleghany by Thomas Stokeley. This I have from Woods’s friends, who seem to be equally sure that neither he nor myself are to be elected. The Republicans despair to be able to carry me, not, by the by, so much on account of the treaty question as because I do not reside in the district and have not been this summer in the western country, and they hesitate whether they will support Edgar or Brackenridge. At all events, I think I will be gently dropped without the parade of a resignation. The other party will call it a victory, but it will do neither me nor our friends any harm. I think, indeed, it will not be any disadvantage to the Republican interest that my name should be out of the way, at least for a while....

Shippensburg, 3d October, 1796.

... The farther I go from you the more I feel how hateful absence is, and the stronger my resolution is not to be persuaded to continue in public life. Indeed, we must be settled and give up journeying. This design gives me but one regret, it is to part you and to part myself from your family; they are the only beings I will feel sorry to leave behind, but I will feel the want of them more than I can express....

New Geneva, 12th October, 1796.

... I arrived here last Friday without any accident.... As to politics, the four or five last newspapers are filled with the most scurrilous and abusive electioneering pieces for and against myself and Thomas Stokeley. This has raised the contention so high in the counties of Alleghany and Washington that my old friends have again taken me up very warmly, and I came too late to prevent it. There is, however, the highest probability that I will not be elected. The election took place yesterday, but we do not know the result. In this and Westmoreland County James Findlay, who was a great admirer of the treaty, has been prevailed upon by Addison & Co. to oppose William Findley, whom we have been supporting, notwithstanding all his weaknesses, because it became a treaty question, and I expect he must be elected by a majority of two to one....