In all this, Hamilton had no part and no responsibility beyond having made indiscreet disclosures of which his friends availed themselves, and through buying and selling through his agents in New York and Philadelphia for his brother-in-law.[213] Just how he viewed the scandalous proceedings in the earlier stages we do not know. They were not without defense from his supporters. The obsequious John Fenno took notice of the gossip with a defense of speculation in the ‘Gazette.’ Were not moneyed men ‘the props of the infant credit of the United States?’[214] The dark insinuations of the gossips, the criticism of the ‘rabble,’ we may be sure caused Hamilton no concern. Surveying the field at the beginning of the battle, he must have been content. He saw the financiers, the commercial interests of the large centers, including the speculators, enlisted under his banner. The influential Society of the Cincinnati, composed of Revolutionary officers, men of means who had been able to hold on to their paper, gave dignity to his cause. With its compact organization in every State, and its system of correspondence, it was an engine of tremendous power. The social and intellectual circles were flying his flag. He looked upon his work and called it good.

III

With the first discussion in the House, it was apparent that speculation was to play a conspicuous part in the debates. The speculators packed the galleries, overflowed into the lobby, causing the complacent Theodore Sedgwick of Massachusetts, himself a speculator, to insist that the ‘ardent expectations of the people on this subject want no other demonstration than the numerous body of citizens assembled within these walls.’ The effect was different on the pugnacious Jackson of Georgia. ‘Since this Report has been read,’ he shouted, with a contemptuous glance at the eager gallery, ‘the spirit of speculation ... has arisen and been cherished by people who had access to information the Report contained, that would have made a Hastings blush to have been connected with, though long inured to preying on the vitals of his fellow man. Three vessels, sir, have sailed within a fortnight from this port freighted for speculation.’[215]

The unctuous Sedgwick was melting suavity. Speculation within reasonable bounds was not bad, but action should be taken with all possible speed to stop it; and the troublesome Jackson returned to the attack—this time on New York City. He wished to God Congress had met in the woods and out of the neighborhood of a populous town. The gallant veterans, driven by economic necessity to the wilderness, were being robbed by these speculators of the pittance a grateful country had bestowed. Since the assumption of State debts was proposed, why not postpone action until the various legislatures could express the sentiment of the States? ‘Then these men may send out other vessels to countermand their former orders; and perhaps we may yet save the distant inhabitants from being plundered by these harpies.’[216]

This line of attack had not been anticipated, and Hamilton was not the man to take anything for granted. His well-groomed figure was seen moving nervously about the lobbies of Federal Hall, within a few days after the commencement of the debate. One of his enemies observed that he ‘spent most of his time running from place to place among the members.’[217] In the evenings he gathered his more influential supporters about him at his home. At his table he brought his most seductive charms to bear upon the doubting. Time was all-important and indefinite delay might be fatal.

With the thunder of Jackson’s ugly charges reverberating through the streets, taverns, coffee-houses, Hamilton was ‘moving heaven and earth for his funding system.’ The commercial interests and the members of the Cincinnati hastened to join the lobby, which began to seek out the wavering or the doubtful in their lodging-houses. A fashionable minister found his way to the quarters of Speaker Muhlenberg and Senator Maclay to extol the policies of the dynamic young Secretary, and ‘argued as if he had been in the pulpit.’ Time, too, for a redoubling of effort, for there were rumors that Madison, the strongest man in the House, had been unpleasantly impressed with the fast-sailing vessels and the expresses jolting over the roads southward. A bitter attack had appeared in one of the papers which gossip ascribed to the popular George Clinton.[218]

In the House—still harping were the foes on speculation, when with a benevolent expression Sedgwick rose with saccharine urbanity to regret the vice of speculation, and declare himself ‘totally disinterested,’ albeit he was financially concerned. It was only his distress over speculation that admonished him to speedy action to minimize the evil. It was really unfortunate that so much heat had been engendered. After all, were not ‘a great and respectable body of our citizens creditors of the United States?’ It would be tragic were these animosities to create ‘factions among the people.’

‘A danger there?’ bellowed Jackson, the incorrigible infant terrible. ‘Do not gentlemen think there is some danger on the other side? Will there not be grounds for uneasiness when the soldier and the meritorious citizen are called upon to pay the speculator more than ten times the amount they ever received from him for their securities?’[219]

Meanwhile the fight was spreading from Federal Hall to the newspapers where congressional courtesy imposed no restrictions on the temper. Sinister stories were finding their way into print. ‘Several officials in conjunction with Robert Morris and wealthy contractors “were” at the bottom of this new arrangement.’ If it succeeded, Robert Morris would benefit $18,000,000, Jeremiah Wadsworth would profit $9,000,000 and Governor George Clinton would make $5,000,000.[220]

It was under these conditions, with the speculators packing the galleries, with the lobbyists, legitimate and illegitimate, buzzing through the corridors, with the most amazing rumors floating about the streets, that James Madison, who had remained silent heretofore, rose in a crowded House to fire the first fun in the Jeffersonian war on the financial policies of Alexander Hamilton.