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CHAPTER XIV.

Mr. Jefferson's party attachments. Injurious effects of the assumption. Leading measures of Congress. Discriminating duties. Commercial retaliation proposed. Closed doors of the Senate. Navigation of the Mississippi. Diplomatic intercourse with England. Mr. Jefferson's reports on a copper coinage-on weights and measures— the fisheries. Excise. Mr. Hamilton's report on public credit. He proposes a national bank. Arguments for and against its constitutionality. Letter to the National Assembly in memory of Franklin. Navigation of the Mississippi. Tonnage duty. Political sentiments of John Adams and Alexander Hamilton. Practice of recording conversations considered. Public prosperity. Public credit. Spirit of speculation-its causes and effects. Discriminating duties in France. French West Indies. Indian territorial rights. The surrender of fugitives from justice. Deputies from St. Domingo.

1790-1791.

THOUGH Mr. Jefferson had been induced to give a reluctant support to the favourite measures of the Secretary of the Treasury and his friends, it was impossible that he could long continue to co-operate with that party, or even remain neutral. All his theoretical opinions, all his national predilections and antipathies were opposed to such a result. The party of Mr. Hamilton were cordial admirers of the British government, and obsequious copyists of its laws and institutions. The distrust with which they had just viewed the French revolution was gradually ripening into aversion and horror. Mr. Jefferson was opposed to them on both those particulars, and he was by temperament more in favour of a cheaper and more tranquil government; one which imposed moderate restraints on individual liberty, with little resort to taxation, and no resort to force. Military triumphs he neither coveted for himself, nor beheld

with favour in others. He looked upon them as no less burdensome to the citizen than dangerous to the supremacy of the laws.

In addition to these sources of division, men began already to differ about the construction of the constitution, according to their general tenets and principles of government: those who thought the political danger most to be apprehended by the United States to be that of disunion, inclining to that construction which would enlarge the powers of the federal government; and those who thought the tendency to consolidation the most imminent danger, seeking to give to that instrument a more strict and literal interpretation. Most of the southern members belonged to this party, especially those who had been opposed to the adoption of the constitution; and Mr. Madison, ever since the question of assumption, had united with them, and had, in fact, taken the lead in endeavouring to keep the new government to the letter of its charter. It was not, however, until the succeeding session that this diversity became that plain and palpable line of distinction which it has remained ever since.

On the final settlement of the accounts among the states, the predicted injustice and inexpediency of the assumption were fully verified. Had there been no assumption, the sum of 8,047,390 dollars was due to the states of Massachusetts, Rhode Island, Connecticut, and South Carolina, from the other states. In the very lucid exposition of the finances of the United States, given by Mr. Gallatin some years afterwards, it appears that the whole amount assumed on account of the state debts, principal and interest, was 22,492,888 dollars; and that after the assumption, the sum of 2,450,390 dollars was due from the states of New York, Delaware, and North Carolina, to the other ten states: that if the assumption had been founded on accurate data instead of conjecture, it would have been necessary to assume only to

the amount of 11,609,259 dollars to produce the same result; and, in that case, the sum of 2,450,390 dollars would have been due from the four states of New York, Pennsylvania, Delaware, and Maryland, to the other nine: and "Thus," as he justly remarks, " had the United States waited to assume the state debts till the accounts had been finally settled, instead of assuming at random before a final settlement had taken place, the very same result which now exists might have been effected; and the accounts of the Union with the individual states might have been placed in the same relative situation in which they now stand, by assuming eleven millions instead of twenty-two. The additional and unnecessary debt created by that fatal measure amounts therefore to dollars 10,883,628,5." It was a more uncompensated evil too, as the four creditor states of Massachusetts, Rhode Island, Connecticut, and South Carolina, would have received nearly the same amount of relief by the supposed assumption of eleven millions that they did receive under the actual assumption of twenty-two millions.

Two or three other incidents of this session may serve to show the complexion of public sentiment, and the germ of those political parties which subsequently so agitated the country. One part of the plan of funding the public debt was to make it unredeemable, except at the rate of one per cent. annually, or two-thirds of one per cent., according to the rate of interest. This feature was supported by some, partly because it had been recommended by Mr. Hamilton, and partly because it seemed to secure to the country the supposed benefits of a national debt and it was opposed by others on these very accounts. Fortunately, this part of the secretary's plan underwent a material modification; for had either of his propositions on this subject prevailed, the public debt, instead of being now paid off, would have been unextinguishable before 1890 or 1940,

(according to the terms selected by the creditor), except at a rate which might have enhanced the amount more than 50 per cent.

When the friends to the shipping interest sought to increase the duties on foreign tonnage, Mr. Madison proposed to make a discrimination between those nations which had commercial treaties with the United States and those which had not; with the avowed intention of making some return to France for her services in the revolution, and of retaliating on Great Britain for the illiberal course of her commercial policy towards the United States. But the proposition was earnestly resisted by Mr. Ames and Mr. Sedgwick of Massachusetts, Mr. Fitzsimmons of Pennsylvania, and Mr. Smith of South Carolina, who had been the principal supporters of Mr. Hamilton's schemes of finance. Their opposition may be ascribed rather to the fear that retaliation on the part of Great Britain would lead to irritating collisions, and to a conciliatory temper towards that country, than to alienation towards her rival. The French revolution had indeed already begun to be viewed very differently by men according as they had more or less confidence in the capacity of mankind for self-government, and as they more affected the blessings of civil liberty on the one hand, or those of peace, order, and security on the other; but it had not yet called forth those passions which afterwards blazed so fiercely, and which found fresh aliment for their heat and fury in every domestic controversy.

Mr. Madison having failed in his first proposition, offered two others, founded on the principle of reciprocity in commerce. By the first of these propositions, which was levelled at the restrictions on the West India trade, it was provided that whenever a foreign nation prohibited American ships from transporting merchandise from any of its ports to the United States, their ships should be subjected to a like pro

hibition; and should, moreover, be prohibited from transporting from the United States to such ports any products of the United States. The second, which was intended to countervail the British Navigation Act, provided that where any nation prohibits American ships from carrying to its ports any commodity, not the product of the United States, the ships of such nation should be subject to a similar restriction in their imports into the United States. This measure met with a more favourable reception from some of the members of the northern states. It was, however, unpalatable to a part of the southern members, and was not finally acted on.

At this session it was proposed that the senate should open its doors when sitting in its legislative capacity. The motion was however rejected; and although it was renewed at each succeeding session, it was not adopted until February, 1794, when such had been the change of opinion in the body, or rather the force of public sentiment, that but eight members voted in the negative.

Two days after the adjournment of Congress on the 12th of August, Mr. Jefferson accompanied the President with a small party on a week's excursion to Rhode Island, and in the following month he sought a respite from his official duties by a visit to Monticello. He remained there until the middle of November, when he repaired to Philadelphia, to which place the seat of the federal government was now transferred.

When, during the summer, there was a prospect of a rupture between Great Britain and Spain concerning Nootka Sound, the Secretary of State wrote to our minister at Madrid, Mr. Carmichael, to press into the notice of the Spanish government the claims of our citizens to the navigation of the Mississippi, and the right of deposit at New Orleans. The people who had even then migrated from the Atlantic