When Morgan Lewis began his term as governor tranquillity characterised public affairs in the State and in the nation. The Louisiana Purchase had strengthened the Administration with all classes of people; Jefferson and George Clinton had received 162 electoral votes to 14 for Pinckney and Rufus King; Burr had gone into retirement and was soon to go into obscurity; the Livingstons, filling high places, were distinguishing themselves at home and abroad as able judges and successful diplomatists; DeWitt Clinton, happy and eminently efficient as the mayor of New York, seemed to have before him a bright and prosperous career as a skilful and triumphant party manager; while George Clinton, softened by age, rich in favouring friends, with an ideal face for a strong, bold portrait, was basking in the soft, mellow glow that precedes the closing of a stormy life. Never before, perhaps never since, did a governor enter upon his duties, neither unusual nor important, under more favourable auspices; yet the story of Lewis' administration is a story of astonishing mistakes and fatal factional strife.

The Governor inaugurated his new career by an unhappy act of patronage. The appointment of Maturin Livingston, his son-in-law, and the removal of Peter B. Porter, the friend of Burr, showed a selfish, almost malevolent disregard of public opinion and the public service, a trait that, in a way, characterised his policy throughout. Livingston was notoriously unfitted for recorder of New York. He was unpopular in his manners, deficient in a knowledge of law, without industry, and given to pleasure rather than business, but, because of his relationship, the Governor forced him into that responsible position. In like manner, although until then no change had occurred within the party for opinion's sake, Lewis voted for the removal of Peter B. Porter, the young and popular clerk of Ontario County. Porter's youth indicated an intelligence that promised large returns to his country and his party, and the Governor lived long enough to see him honourably distinguished in Congress, highly renowned when his serious career began on the Niagara frontier in the War of 1812, and, afterward, richly rewarded as secretary of war in the Cabinet of John Quincy Adams. But in 1805 the Governor cheerfully voted for his removal, thus establishing the dangerous precedent that a member of one's political household was to be treated with as little consideration as a member of the opposite party.

Although Lewis' conduct in the case of Maturin Livingston and Peter B. Porter was not the most foolish act in a career of folly, it served as a fitting preface to his policy in relation to the incorporation of the Merchants' Bank of New York, a policy that proved fatal to his ambition and to the influence of the Livingstons. Already doing business under the general laws, two Republican Legislatures had refused to incorporate the Merchants' Bank. But during the legislative session of 1805 the bank people determined to have their way, and in the efforts that followed they used methods and means common enough afterward, but probably unknown before that winter. Although in no wise connected with the scandal growing out of the controversy, Lewis favoured the incorporation of the bank. On the other hand, DeWitt Clinton opposed it, maintaining that two banks in New York City were sufficient. However, the Governor, backed by the Federalists and a small Republican majority, was successful. In the Council of Revision, Ambrose Spencer opposed the act of incorporation on the ground that existing banks, possessing five million dollars of capital, with authority to issue notes and create debts to the amount of fifteen million more, were sufficient, especially as the United States had suffered an alarming decrease of specie, and as no one save a few individuals, inspired solely by cupidity, had asked for a new bank. Spencer, however, relied principally in his attack upon affidavits of Obadiah German, the Republican leader of the Assembly, and Stephen Thorn of the same body, charging that Senator Ebenezer Purdy, the father of the measure, had offered them large rewards for their votes, German having Purdy's admission that he had become convinced of the propriety of incorporating the bank after a confidential conference with its directors. From this it was to be inferred, argued Spencer, that before such improper means were made use of, Purdy himself, whose vote was necessary to its passage, was averse to its incorporation. "To sanction a bill thus marked in its progress through one branch of the Legislature with bribery and corruption," concluded the Judge, "would be subversive of all pure legislation, and become a reproach to a government hitherto renowned for the wisdom of its councils and the integrity of its legislatures."[152] But Spencer's opposition and Purdy's resignation, to avoid an investigation, did not defeat the measure, which had the support of Chief Justice Kent, a Federalist, and two members of the Livingston family, a majority of the Council.

DeWitt Clinton had not approved the Governor's course. The flagrant partiality shown Lewis' family in the unpopular appointment of Maturin Livingston, his son-in-law, displeased him, and the removal of Porter seemed to him untimely and vindictive. In killing Hamilton, Clinton reasoned, Burr had killed himself politically, and out of the way himself there was no occasion to punish his friends who would now rejoin and strengthen the Republican party. Clinton, however, remained passive in his opposition until the incorporation of the bank furnished a plausible excuse for an appeal to the party; then, with a determination to subjugate the Livingstons, he caused himself and his adherents to be nominated and elected to the State Senate upon the platform that "a new bank has been created in our city, and its charter granted to political enemies." It was a bold move, as stubborn as it was dangerous. Clinton had little to gain. The Livingstons were not long to continue in New York politics. Maturin was insignificant; Brockholst was soon to pass to the Supreme Court of the United States; Edward had already sought a new home and greater honours in New Orleans; and the Chancellor, having returned from France, was without ambition to remain longer in the political arena. Even the brothers-in-law were soon to disappear. John Armstrong was in France; Smith Thompson, who was to follow Brockholst upon the bench of the United States Supreme Court, refused to engage in party or political contests, and the gifts of Tillotson and Lewis were not of quality or quantity to make leaders of men. On the other hand, Clinton had much to lose by forcing the fight. It condemned him to a career of almost unbroken opposition for the rest of his life; it made precedents that lived to curse him; and it compelled alliances that weakened him.

Lewis resented Clinton's imperious methods, but he made a fatal mistake in furnishing him such a pretext for open opposition. He ought to have known that in opposing the Merchants' Bank, Clinton represented the great majority of his party which did not believe in banks. Undoubtedly Clinton's interest in the Manhattan largely controlled his attitude toward the Merchants', but the controversy over the latter was so old, and its claims had been pressed so earnestly by the Federalists in their own interest, that the question had practically become a party issue as much as the contest over the Bank of the United States. Already two Republican Legislatures had defeated it, and in a third it was now being urged to success with the help of a solid Federalist vote and a system of flagrant bribery, of which the Governor was fully advised. A regard for party opinion, if no higher motive, therefore, might well have governed Lewis' action. After the fight had been precipitated, resulting in a warfare fatal to Lewis, the Governor's apologists claimed that in favouring the bank he had simply resisted Clinton's domination. The Governor may have thought so, but it was further evidence of his inability either to understand the sentiment dominating the party he sought to represent, or successfully to compete with Clinton in leadership. DeWitt Clinton, with all his faults, and they were many and grave, had in him the gifts of a master and the capacity of a statesman. Lewis seems to have had neither gifts nor capacity.

In January, 1806, DeWitt Clinton, securing a majority of the Council of Appointment by the election of himself and two friends, sounded the signal of attack upon the Governor and his supporters. He substituted Pierre C. Van Wyck for Maturin Livingston and Elisha Jenkins for Thomas Tillotson. The Governor's friends were also evicted from minor office, only men hostile to Lewis' re-election being preferred. Nothing could be less justifiable, or, indeed, more nefarious than such removals. They were discreditable to the Council and disgraceful to DeWitt Clinton; yet sentiment of the time seems to have approved them, regarding Clinton's conduct merely as a stroke of good politics. In the midst of this wretched business it is pleasant to note that Jenkins' transfer from comptroller to secretary of state opened a way for the appointment of Archibald McIntyre, whose safe custody of the purse in days when economies and husbandries were in order, distinguished him as a faithful official, and kept him in office until 1821.

After such drastic treatment of the Governor, it is not without interest to think of Lewis in Albany and Clinton in New York keeping their eyes upon the election in April, 1806, both alike hopeful of finding allies in the party breakup. The advantage seemed to be wholly with the Mayor and not with the Governor. Indeed, Republicans of all factions were so well assured of Clinton's success that it required the faith of a novice in politics to believe that Lewis had any chance. But DeWitt Clinton had to deal with two classes of men, naturally and almost relentlessly opposed to him—the friends of Burr and the Federalists. It was of immense importance that the former should stand with him, since the Federalists were certain to side with the Lewisites or "Quids," as the Governor's friends came to be known, and to secure such an advantage Clinton promptly made overtures to the Burrites, of whom John Swartout, Peter Irving and Matthew L. Davis were the leaders.

There is some confusion as to details, but Davis is authority for the statement that in December, 1805, Theodorus Bailey, as Clinton's agent, promised to aid Burr's friends through the Manhattan Bank, to recognise them as Republicans, to appoint them to office on the same footing with the most favoured Clintonian, and to stop Cheetham's attacks in the American Citizen. Clinton pronounced the story false, but it was known that the Manhattan Bank loaned eighteen thousand dollars to a prominent Burrite; that on January 24, 1806, Clinton met Swartout, Irving and Davis at the home of Bailey; and that afterward, on February 20, leading Clintonians banqueted the Burrites at Dyde's Hotel in the suburbs of New York in celebration of their union. There were many reasons for maintaining the profoundest secrecy as to this alliance and Dyde's Hotel had been selected for the purpose of avoiding publicity, but the morning's papers revealed the secret with an exaggerated account of their doings and sayings. Immediately, other Burrites, joining the Lewisites at Martling's Long-room, a popular meeting-place, organised a protestant faction, afterward known as Martling Men, whose enmity was destined to follow Clinton to his downfall.

As election day approached the Quids made a decisive struggle against Clinton. They rehearsed the charges of "Aristides;" they denounced him as cold and imperious; they charged that he had an almost boundless political ambition; that he maintained his own councils regardless of his associates, and accepted no suggestion not in harmony with his own policy. The Martling Men accused him of duplicity, and of a desire only for place and pay. In aid of Lewis, Chancellor Lansing took this opportunity of revealing the secret that led him to withdraw from the gubernatorial race in 1804, charging that George Clinton had sought "to pledge him to a particular course of conduct in the administration of the government of the State." When the latter denied the statement, Lansing, becoming more specific, affirmed that the venerable statesman had mentioned DeWitt Clinton as a suitable person for chancellor. It is not surprising, perhaps, that DeWitt Clinton's reply that if tendered the office he would have declined it, fell upon incredulous ears, since the young man at that very moment was holding three offices and drawing three salaries.

But the contest did not become seriously doubtful until the Quids received the active support of the Federalists, just then led by William W. Van Ness, who seems to have leaped into prominence as suddenly as did "Aristides," his cousin. If we may estimate the man by the praises of his contemporaries, William W. Van Ness' eloquence delighted the Assembly of which he had become a member in 1805, not more than his pointed and finished wit charmed every social gathering which he honoured with his presence. Indeed, as a popular orator he seems to have had no rival. Though his passion for distinction was too ardent and his fondness for sensual pleasure immoderate, sober minded men were carried away with the fascinating effervescence of his public utterances and the brilliancy of his conversation. He had a commanding presence, almost a colossal form, and a voice marvellous for its strength and for the music of its intonations. He was neither profound nor learned. The common school at Claverack, where he was born in independence year, furnished him little more than the rudiments of English, and at the age of twenty he closed the door to further advancement by prematurely burdening himself with a family; yet he seemed to know without apparent effort everything that was necessary to know, and to exert a gentle, unconscious, unpretending power that was resistless. A sweetness of temper and a native dignity of manner cast a grace and charm about him which acted as a spell upon all who came within its influence. Hammond, the historian, thought him the possessor of every gift that nature and fortune could bestow—wit, beauty, good nature, suave manners, eloquence, and admirable conversation. Such a combination gave him leadership, and he led his followers solidly to Lewis, with the result that the coalition of Federalists and Quids won out by a small majority.