A History of the United States

by Cecil Chesterton

Of these the most important was the creation of the first United States Bank. Here Hamilton was quite certainly inspired by the example of the English Whigs. He knew how much the stability of the settlement made in 1689 had owed to the skill and foresight with which Montague, through the creation of the Bank of England, had attached to it the great moneyed interests of the City. He wished, through the United States Bank, to attach the powerful moneyed interests of the Eastern and Middle States in the same fashion to the Federal Government. This is how he and his supporters would have expressed it. Jefferson said that he wished to fill Congress with a crowd of mercenaries bound by pecuniary ties to the Treasury and obliged to lend it, through good and evil repute, a perennial and corrupt support. The two versions are really only different ways of stating the same thing. To a democrat such a standing alliance between the Government and the rich will always seem a corrupt thing—nay, the worst and least remediable form of corruption. To a man of Hamilton's temper it seemed merely the necessary foundation of a stable political equilibrium. Thus the question of the Bank really brought the two parties which were growing up in the Cabinet and in the nation to an issue which revealed the irreconcilable antagonism of their principles.

The majority in Congress was with Hamilton; but his opponents appealed to the Constitution. They denied the competency of Congress under that instrument to establish a National Bank. When the Bill was in due course sent to Washington for signature he asked the opinions of his Cabinet on the constitutional question, and both Hamilton and Jefferson wrote very able State Papers in defence of their respective views. After some hesitation Washington decided to sign the Bill and to leave the question of constitutional law to the Supreme Court. In due course it was challenged there, but Marshal, the Chief Justice, was a decided Federalist, and gave judgment in favour of the legality of the Bank.

The Federalists had won the first round. Meanwhile the party which looked to Jefferson as leader was organizing itself. It took the name of "Republican," as signifying its opposition to the alleged monarchical designs of Hamilton and his supporters. Later, when it appeared that such a title was really too universal to be descriptive, the Jeffersonians began to call themselves by the more genuinely characteristic title of "Democratic Republicans," subsequently abbreviated into "Democrats." That name the party which, alone among American parties, can boast an unbroken historic continuity of more than a century, retains to this day.

At the end of his original term of four years, Washington was prevailed upon to give way to the universal feeling of the nation and to accept a second term. No party thought of opposing him, but a significant division appeared over the Vice-Presidency. The Democrats ran Clinton against John Adams of Massachusetts, and though they failed there appeared in the voting a significant alliance, which was to determine the politics of a generation. New York State, breaking away from her Northern neighbours, voted with the Democratic South for Clinton. And the same year saw the foundation in New York City of that dubious but very potent product of democracy, which has perhaps become the best abused institution in the civilized world, yet has somehow or other contrived to keep in that highly democratic society a power which it could never retain for a day without a genuine popular backing—Tammany Hall.

Meanwhile the destinies of every nation of European origin, and of none perhaps more, in spite of their geographical remoteness, than of the United States, were being profoundly influenced by the astonishing events that were shaping themselves in Western Europe. At first all America was enthusiastic for the French Revolution. Americans were naturally grateful for the aid given them by the French in their own struggle for freedom, and saw with eager delight the approaching liberation of their liberators. But as the drama unrolled itself a sharp, though very unequal, division of opinion appeared. In New England, especially, there were many who were shocked at the proceedings of the French, at their violence, at their Latin cruelty in anger, and, above all perhaps, at that touch of levity which comes upon the Latin when he is face to face with death. Massacres and carmagnoles did not strike the typical Massachusetts merchant as the methods by which God-fearing men should protest against oppression. The strict military government which succeeded to, controlled and directed in a national fashion the violent mood of the people—that necessary martial law which we call "the Terror"—seemed even less acceptable to his fundamentally Whiggish political creed. Yet—and it is a most significant fact—the bulk of popular American opinion was not shocked by these things. It remained steadily with the French through all those events which alienated opinion—even Liberal opinion—in Europe. It was perhaps because European opinion, especially English opinion, even when Liberal, was at bottom aristocratic, while the American people were already a democracy. But the fact is certain. By the admission of those American writers who deplore it and fail to comprehend it, the great mass of the democracy of America continued, through good and evil repute, to extend a vivid and indulgent sympathy to the democracy of France.

The division of sympathies which had thus become apparent was converted into a matter of practical politics by the entry of England into the war which a Coalition was waging against the French Republic. That intervention at once sharpened the sympathies of both sides and gave them a practical purpose. England and France were now arrayed against each other, and Americans, though their Government remained neutral, arrayed themselves openly as partisans of either combatant. The division followed almost exactly the lines of the earlier quarrel which had begun to appear as the true meaning of Hamilton's policy discovered itself. The Hamiltonians were for England. The Jeffersonians were for France.

A war of pamphlets and newspapers followed, into the details of which it is not necessary to go. The Federalists, with the tide going steadily against them, had the good luck to secure the aid of a pen which had no match in Europe. The greatest master of English controversial prose that ever lived was at that time in America. Normally, perhaps, his sympathies would have been with the Democrats. But love of England was ever the deepest and most compelling passion of the man who habitually abused her institutions so roundly. The Democrats were against his fatherland, and so the supporters of Hamilton found themselves defended in a series of publications over the signature of "Peter Porcupine" with all the energy and genius which belonged only to William Cobbett.

A piquancy of the contest was increased by the fact that it was led on either side by members of the Administration. Washington had early put forth a Declaration of Neutrality, drawn up by Randolph, who, though leaning if anything to Jefferson's side, took up a more or less intermediate position between the parties. Both sides professed to accept the principle of neutrality, but their interpretations of it were widely different. Jefferson did not propose to intervene in favour of France, but he did not think that Americans were bound to disguise their moral sympathies. They would appear, he thought, both ungrateful and false to the first principles of their own commonwealth if, whatever limitation prudence might impose in their action, they did not desire that France should be victorious over the Coalition of Kings. The great majority of the American people took the same view. When Genet, the envoy of the newly constituted Republic, arrived from France, he received an ovation which Washington himself at the height of his glory could hardly have obtained. Nine American citizens out of ten hastened to mount the tricolour cockade, to learn the "Marseillaise," and to take their glasses to the victory of the sister Republic. So strong was the wave of popular enthusiasm that the United States might perhaps have been drawn into active co-operation with France had France been better served by her Minister.

Genet was a Girondin, and the Girondins, perhaps through that defect in realism which ruined them at home, were not good diplomatists. It is likely enough that the warmth of his reception deranged his judgment; at any rate he misread its significance. He failed to take due account of that sensitiveness of national feeling in a democracy which, as a Frenchman of that time, he should have been specially able to appreciate. He began to treat the resources of the United States as if they had already been placed at the disposal of France, and, when very properly rebuked, he was foolish enough to attempt to appeal to the nation against its rulers. The attitude of the Secretary of State ought to have warned him of the imprudence of his conduct. No man in America was a better friend to France than Jefferson; but he stood up manfully to Genet in defence of the independent rights of his country, and the obstinacy of the ambassador produced, as Jefferson foresaw that it must produce, a certain reaction of public feeling by which the Anglophil party benefited.

At the close of the year 1793, Jefferson, weary of endless contests with Hamilton, whom he accused, not without some justification, of constantly encroaching on his colleague's proper department, not wholly satisfied with the policy of the Government and perhaps feeling that Genet's indiscretions had made his difficult task for the moment impossible, resigned his office. He would have done so long before had not Washington, sincerely anxious throughout these troubled years to hold the balance even between the parties, repeatedly exerted all his influence to dissuade him. The following year saw the "Whiskey Insurrection" in Pennsylvania—a popular protest against Hamilton's excise measures. Jefferson more than half sympathized with the rebels. Long before, on the occasion of Shay's insurrection, he had expressed with some exaggeration a view which has much more truth in it than those modern writers who exclaim in horror at his folly could be expected to understand—the view that the readiness of people to rebel against their rulers is no bad test of the presence of democracy among them. He had even added that he hoped the country would never pass ten years without a rebellion of some sort. In the present case he had the additional motives for sympathy that he himself disapproved of the law against which Pennsylvania was in revolt, and detested its author. Washington could not be expected to take the same view. He was not anti-democratic like Hamilton; he sincerely held the theory of the State set forth in the Declaration of Independence. But he was something of an aristocrat, and very much of a soldier. As an aristocrat he was perhaps touched with the illusion which was so fatal to his friend Lafayette, the illusion that privilege can be abolished and yet the once privileged class partially retain its ascendancy by a sort of tacit acknowledgment by others of its value. As a soldier he disliked disorder and believed in discipline. As a commander in the war he had not spared the rod, and had even complained of Congress for mitigating the severity of military punishments. It may be that the "Whiskey Insurrection," which he suppressed with prompt and drastic energy, led him for the first time to lean a little to the Hamiltonian side. At any rate he was induced, though reluctantly and only under strong pressure, to introduce into a Message to Congress a passage reflecting on the Democratic Societies which were springing up everywhere and gaining daily in power; and in return found himself attacked, sometimes with scurrility, in the more violent organs of the Democracy.