The narrow majority in the Senate warned Jefferson not to proceed farther with such statutes; but the judiciary could be affected in another way. Several of the supreme and district judges were ardent Federalists, and had expressed strong political opinions from the bench. In February, 1803, the House impeached John Pickering, district judge in New Hampshire; his offence was drunkenness and violence on the bench; but the purpose to intimidate the other judges was unmistakable. Two of them accepted the issue. The Supreme Court had resumed its session only a few days, when, in 1803, Marshall made a decision in the case of Marbury vs. Madison. Marbury was one of Adams's "midnight appointments;" the suit was brought for his commission, which had not been delivered, and was retained by Madison when he became Secretary of State. Marshall decided that "to withhold his commission is an act deemed by the court not warranted by law, but violative of a legal vested right." Upon a technical point, however, the complaint was dismissed.
[Sidenote: Chase trial.]
[Sidenote: Appointments.]
Further defiance came from another justice of the Supreme Court, Samuel Chase of Maryland. His prejudice against Callender on his trial for sedition had exasperated the Republicans (§ 89), and on May 2, 1803, while the Pickering impeachment was impending, Chase harangued the grand jury as follows: "The independence of the national judiciary is already shaken to its foundation, and the virtue of the people alone can restore it…. Our republican constitution will sink into a mobocracy,… the worst of all possible governments." Pickering was convicted March 12, 1804, and on the same day the House impeached Chase. By this time the Republicans had overshot the mark, and notwithstanding Chase's gross partisanship, on March 1, 1805, the impeachment failed for want of a two-thirds vote. The only hope of controlling the Supreme Court was therefore to fill vacancies, as they occurred, with sound Republicans. Three such opportunities occurred in Jefferson's administration. To his great chagrin, the new judges showed themselves as independent, though not as aggressive, as Marshall.
97. THE POLICY OF RETRENCHMENT (1801-1809).
[Sidenote: Federal finance.]
Although the effort to check the power of the judiciary failed, in another direction Jefferson struck out a new and popular policy. Under the Federalists the taxes had increased from $3,600,000 in 1792 to $10,700,000 in 1800. This increase had been more than balanced by the growth of expenditures. The Indian and French wars had brought unexpected expenses upon the government, and the construction of a little navy was still going on, In 1793 the government spent $3,800,000. In 1800 it spent $10,800,000. Of this amount $6,000,000 went for the army and navy, and $3,000,000 for interest. The deficits had been obscured by a funding system under which payments to the sinking fund were practically made out of borrowed money, so that the debt had risen from $80,000,000 in 1793 to nearly $83,000,000, in 1800.
[Sidenote: Gallatin's finance.]
If peace could be guaranteed, a considerable part of the expenditure could be cut down; and thus taxes might be reduced, and still a surplus be left, out of which to pay instalments on the public debt. In his first annual message the President accordingly advised the reduction of the military and naval forces, and also of the civil officers. Gallatin proceeded to draw up a financial plan: the annual revenue was to be $10,800,000, military expenses were to be cut down to $2,500,000, and the civil expenses to about $1,000,000; the remainder, $7,300,000, was to be devoted to the reduction of the debt.
[Sidenote: Success of the system.]
Neither part of this scheme worked precisely as had been expected. The army indeed underwent what Jefferson called a "chaste reformation;" it was cut down from 4,000 to 2,500 men, to the great discontent of the officers. The number of vessels in commission was reduced from about twenty-five to seven, and the construction of vessels on the stocks was stopped, so that in 1802 less than $1,000,000 was spent on the navy. Nevertheless, the civil and miscellaneous expenses of the government grew steadily. Under the Federalist administration, the total expenditures in time of peace, exclusive of interest, had never been more than $3,000,000; in 1802 Gallatin spent $3,700,000, and in 1809 $7,500,000. The debt was, however, rapidly diminished, and in 1809 stood at only $45,000,000; nearly half of the interest charge was thus cut off, and for the first time the government found itself with more money than it knew how to use. The taxes had been reduced by a million and a half, by striking off the unpopular direct tax and excise; the loss was more than met by an unexpected increase in the revenue from customs, which in 1808 stood at $16,000,000,