VII
With the easy victory, however, the Hamiltonians entered with gayety upon the next step—the Assumption of the State debts—determined to rush it through. On the very night of the day discrimination was defeated, the Pennsylvania delegation, on the suggestion of Robert Morris, met at the lodgings of Representative Fitzsimons of Philadelphia to ‘consider’ the matter of Assumption. One glance convinced the keen-eyed Maclay that the meeting was for ratification, not for consideration purposes. ‘By God,’ swore Morris, ‘it must be done!’ George Clymer, another of the Hamilton Reliables, bubbled with enthusiasm over the advantage that would accrue to Pennsylvania. Maclay was embarrassed by the almost affectionate comradery of some of his colleagues. Why should the delegation not hold weekly social sessions and work in harmony? Fitzsimons’s lodgings would be the very place to meet. Yes, agreed Morris, and they could have wine and oysters.[244]
A few days later Muhlenberg, returning to Maclay’s lodgings from a levee at the presidential mansion, declared with intense emphasis that the State debts must be assumed—which impressed the suspicious Senator as ‘the language of the Court.’[245]
But it was not to be so simple as all that. Assumption, argued many, would but extend the scope of the operations of the hated speculators. It was another move to mortgage the Government to the capitalists. The greater part of the speculating gentry were in the North; they would soon accumulate all the State certificates of the South into their own hands and one section would be paying taxes to increase the fortunes of a favored class in another.
There was another reason for the revolt of the Southerners—which, reversed, would have operated quite as powerfully on the Northerners. The States with the largest unpaid debts were in the North, Massachusetts with the greatest debt of all. Virginia, which led the opposition, had liquidated most of her debt. There is nothing inexplicable in the objections of the Virginians, who had paid their debt, to being taxed to help pay the debt of Massachusetts and Connecticut.
This was appreciated by many in the North, and a citizen of Stockbridge, Massachusetts, writing for a New York paper, thought it unfair. If the ‘leveling system’ was vicious as applied to men, it was quite as bad when applied to States. Then, too, ‘the public creditors, the most opulent part, of the community, would, by this means, be detached from the interest of the State Governments and united to that of the general Government.’ This aimed at the annihilation of the State Governments and the perpetuation of the debt.[246] Thus an attack began on the general policy of funding, taking an ugly form, appealing to class prejudices. ‘A number of drones are brought into society and the industrious bee is forced to furnish them with all the honey of its search.’[247]
But this opposition from the unimportant meant nothing to Hamilton. In those days, and for many days to come, it was only necessary to know what Oliver Wolcott[248] said or wrote to know what his master thought. Writing his father about this time, Wolcott gives us sketchily the operations of Hamilton’s mind. This matter of assumption was connected with ‘the engine of government.’ Since ‘the influence of the clergy, the nobility and the army’ was impossible, ‘some active principle of the human mind can be interested in the support of the Government.’ It would never do to have ‘civil establishments,’ but there was an influential class in existence—the moneyed class. They could and should be bound by interest to the general Government. What more ‘active principle’ of the human mind than the desire for wealth? And if the capitalists looked to the Federal rather than to the State Governments for their money, what better ‘engine of government’ than that? ‘For these reasons,’ wrote Wolcott, ‘I think the State debts should be assumed.’ True, it would make the debt of the United States ‘inconvenient,’ the taxes would be ‘burdensome,’ and ‘will appear to be just only to those who believe that the good attained is more important than the evil which is suffered.’[249]
It was fear of the effect of these ‘burdensome taxes’ on the popularity of the Federal Government that led some men, including Madison, into opposition.[250] Some of the Hamiltonians were alarmed, fearing that ‘such bold politics are unfitted to ... the infant resources’ of the young Republic.[251] Every enemy of Assumption was not hostile to the central Government, but all who were jealous of the sovereignty of the States were in opposition. Rufus King, the brilliant and virile Hamiltonian leader in the Senate, was convinced that in New York ‘the anti-federalists think that the advantages to be derived to the State from the retention of that debt are so great and important that they stand ready to accede to any terms which the creditors may propose.’[252] About the same time the unreconciled Patrick Henry was writing James Monroe that ‘it seems to be a consistent part of a system I have ever dreaded,’ and that the ‘subserviency of Southern to Northern interests are written in Capitals on its very front.’[253]
Such was the atmosphere in which the second battle began.