The amount of state debts assumed by the general government, by the act, was twenty-one millions, five hundred thousand dollars. For this the act authorized an additional loan, payable in certificates of the state debts, which were distributed among the states in specific proportions;[26] but no certificates were to be received except such as had been issued for services or supplies during the war.
“The effect of this measure,” says Marshall, “was great and rapid. The public paper suddenly rose, and was for a short time above par. The immense wealth which individuals acquired by this unexpected appreciation could not be viewed with indifference. Those who participated in its advantages regarded the author of a system to which they were so greatly indebted, with an enthusiasm of attachment to which scarcely any limits were assigned. To many others, this adventitious collection of wealth in particular hands was a subject rather of chagrin than of pleasure; and the reputation which the success of his plans gave to the secretary of the treasury was not contemplated with unconcern.”
The discussions which Hamilton's report produced in and out of Congress, in the public press and in private circles, fearfully agitated the country, and called forth the first regular and systematic opposition to the principles on which the affairs of the Union were administered. In this discussion Washington was greatly interested, yet he avoided all semblance of participation in it. He heartily approved of Hamilton's plan for restoring the public credit and laying the foundation of national policy, as the most perfect that human wisdom had yet devised; but he concealed his opinions in his own breast, except when in private conversation with intimate friends. He looked with ineffable disgust upon the sectional jealousies which the discussion revealed; and in an able letter to Dr. Stuart, written toward the close of March, in reply to remarks of that gentleman concerning a spirit of jealousy in Virginia toward the eastern states, he spoke out warmly. The latter section of the Union had united in favor of Hamilton's scheme, while Virginia, for reasons already alluded to, opposed it. Stuart wrote: “It is represented that the northern phalanx is so firmly united as to bear down all opposition, while Virginia is unsupported even by those whose interests are similar to hers.[27] Colonel Lee tells me that many who were warm supporters of the government are changing their sentiments, from a conviction of the impracticability of union with states, whose interests are so dissimilar to those of Virginia.”
“I am sorry such jealousies as you speak of should be gaining ground, or are poisoning the minds of the southern people,” Washington wrote in reply. “But admit the fact, which is alleged as the cause of them, and give it full scope—does it amount to more than was known to every man of information before, at, and since the adoption of the constitution? Was it not always believed that there are some points which peculiarly interest the eastern states? And did any one who reads human nature, and more especially the character of the eastern people, conceive that they would not pursue them steadily by a combination of their force? Are there not other points which equally concern the southern states? If these states are less tenacious of their interest, or if, whilst the eastern move in a solid phalanx to effect their views, the southern are always divided, which of the two is most to be blamed? That there is a diversity of interests in the Union none have denied; that this is the case also in every state is equally certain; and that it even extends to the counties of individual states can be as readily proved. Instance the southern and northern parts of Virginia, the upper and lower parts of South Carolina. Have not the interests of these always been at variance? Witness the county of Fairfax. Have not the interests of the people of that county varied, or the inhabitants been taught to believe so? These are well-known truths; and yet, it did not follow that separation was to result from the disagreement.
“To constitute a dispute there must be two parties. To understand it well, both parties and all the circumstances must be fully heard; and, to accommodate differences, temper and mutual forbearance are requisite. Common danger brought the states into confederacy, and on their union our safety and importance depend. A spirit of accommodation was the basis of the present constitution. Can it be expected, then, that the southern or eastern parts of the empire will succeed in all their measures? Certainly not. But I will readily grant that more points will be carried by the latter than the former, and for the reason which has been mentioned, namely, that in all great national questions they move in unison, whilst the others are divided. But I ask, again, which is most blameworthy—those who see, and will steadily pursue their interest, or those who can not see, or seeing will not act wisely? And I will ask another question, of the highest magnitude in my mind, to wit: if the eastern and northern states are dangerous in union, will they be less so in separation? If self-interest is their governing principle, will it forsake them, or be restrained by such an event? I hardly think it would. Then, independently of other considerations, what would Virginia, and such other states as might be inclined to join her, gain by a separation? Would they not, most unquestionably, be the weaker party?”
FOOTNOTES:
[25] The following is the record:—
“According to appointment, at eleven o'clock I set out for the city-hall in my coach, preceded by Colonel Humphreys and Major Jackson in uniform (on my two white horses), and followed by Messrs. Lear and Nelson in my chariot, and Mr. Lewis, on horseback, following them. In their rear were the chief justice of the United States, and secretary of the treasury and war departments, in their respective carriages, and in the order they are named. At the outer door of the hall I was met by the doorkeepers of the senate and house, and conducted to the door of the senate chamber; and passing from thence to the chair through the senate on the right, and house of representatives on the left, I took my seat. The gentlemen who attended me followed and took their stand behind the senators, the whole rising as I entered. After being seated, at which time the members of both houses also sat I arose (as they also did) and made my speech, delivering one copy to the president of the senate, and another to the speaker of the house of representatives; after which, and being a few moments seated, I retired, bowing on each side to the assembly (who stood) as I passed, and descending to the lower hall, attended as before, I returned with them to my house.”
[26] The following were the amounts: New Hampshire, $300,000; Massachusetts, $4,000,000; Rhode Island, $200,000; Connecticut, $1,600,000; New York, $1,200,000; New Jersey, $800,000; Pennsylvania, $2,200,000; Delaware, $200,000; Maryland, $800,000; Virginia, $3,000,000; North Carolina, $2,400,000; South Carolina, $4,000,000; Georgia, $300,000.
[27] South Carolina joined New England in favor of Hamilton's scheme.