TO MR. STEWART.
Philadelphia, February 13, 1799.
Dear Sir,—I avoid writing to my friends because the fidelity of the post office is very much doubted. I will give you briefly a statement of what we have done and are doing. The following is a view of our finances in round numbers. The import brings in the last year seven and a half millions of dollars, the excise, carriages, auctions, and licenses, half a million, the residuary small articles one-eighth of a million. It is expected that the stamp act may pay the expense of the direct tax, so that the two may be counted at two millions, making in the whole ten and one-eighth millions. Our expenses for the civil list three-quarters of a million, foreign intercourse half a million (this includes Indian and Algerine expenses, the Spanish and British treaties), interest of the public debt four millions, the existing navy two and a half millions, the existing army, 5,000 men, one and a half millions, making nine and a quarter millions, so that we have a surplus of near a million. But the additional army, 9,000 men, now raising, will add two and a half millions annually, the additional navy proposed three millions, and the interest of the new loans half a million, making six millions more, so that as soon as the army and navy shall be ready, our whole expenses will be fifteen millions; consequently, there will be five millions annually more to be raised by taxes. Our present taxes of ten millions are two dollars a head on our present population, and the future five millions will make it three dollars. Our whole exports (native) this year are 28,192, so that our taxes are now a third and will soon be half of our whole exports; and when you add the expenses of the State Governments we shall be found to have got to the plenum of taxation in ten short years of peace. Great Britain, after centuries of wars and revolutions, had at the commencement of the present war taxed only to the amount of two-thirds of her exports. We have opened a loan for five millions, at eight per cent. interest, and another is proposed of two millions. These are to build six seventy-fours and six eighteens, in part of additional navy, for which a bill passed the House of Representatives two days ago, by fifty-four against forty-two. Besides the existing army of 5,000 and additional army of 9,000, an eventual army of 30,000 is proposed to be raised by the President, in case of invasion by any European power, or danger of invasion, in his opinion, and the volunteer army, the amount of which we know not, is to be immediately called out and exercised at the public expense. For these purposes a bill has been twice read and committed in the Senate. You have seen by Gerry's communications that France is sincerely anxious for reconciliation, willing to give us a liberal treaty, and does not wish us to break the British treaty, but only to put her on an equal footing. A further proof of her sincerity turned up yesterday. We had taken an armed vessel from her, had refitted and sent her to cruise against them, under the name of the Retaliation, and they re-captured and sent her into Guadaloupe. The new commissioners arriving there from France, sent Victor Hughes off in irons, and said to our captain, that as they found him bearing a regular commission as an officer of the United States, with his vessel in their port, and his crew, they would inquire into no fact respecting the vessel preceding their arrival, but that he, his vessel and crew, were free to depart. They arrived here yesterday. The federal papers call her a cartel. It is whispered that the executive means to return an equal number of the French prisoners, and this may give a color to call her a cartel, but she was liberated freely and without condition. The commissioners further said to the captain that, as to the differences with the United States, new commissioners were coming out from France to settle them, and in the meantime they should do us no injury. The President has appointed Rufus King to make a commercial treaty with the Russians in London, and William Smith, of South Carolina, to go to Constantinople to make one with the Turks. Both appointments are confirmed by the Senate. A little dissatisfaction was expressed by some that we should never have treated with them till the moment when they had formed a coalition with the English against the French. You have seen that the Directory had published an arret declaring they would treat as pirates any neutrals they should take in the ships of their enemies. The President communicated this to Congress as soon as he received it. A bill was brought into Senate reciting that arret, and authorizing retaliation. The President received information almost in the same instant that the Directory had suspended the arret (which fact was privately declared by the Secretary of State to two of the Senate), and, though it was known we were passing an act founded on that arret, yet the President has never communicated the suspension. However the Senate, informed indirectly of the fact, still passed the act yesterday, an hour after we had heard of the return of our vessel and crew before mentioned. It is acknowledged on all hands, and declared by the insurance companies that the British depredations during the last six months have greatly exceeded the French, yet not a word is said about it officially. However, all these things are working on the public mind. They are getting back to the point where they were when the X. Y. Z. story was passed off on them. A wonderful and rapid change is taking place in Pennsylvania, Jersey, and New York. Congress is daily plied with petitions against the alien and sedition laws and standing armies. Several parts of this State are so violent that we fear an insurrection. This will be brought about by some if they can. It is the only thing we have to fear. The appearance of an attack of force against the government would check the present current of the middle States, and rally them around the government; whereas, if suffered to go on, it will pass on to a reformation of abuses. The materials now bearing on the public mind will infallibly restore it to its republican soundness in the course of the present summer, if the knowledge of facts can only be disseminated among the people. Under separate cover you will receive some pamphlets written by George Nicholas on the acts of the last session. These I would wish you to distribute, not to sound men who have no occasion for them, but to such as have been misled, are candid and will be open to the conviction of truth, and are of influence among their neighbors. It is the sick who need medicine, and not the well. Do not let my name appear in the matter. Perhaps I shall forward you some other things to be distributed in the same way. Present me respectfully to Mrs. Stuart, and accept assurances of the sincere esteem of, dear Sir, your affectionate friend and servant.