This was ideal success. On a sudden call, to pay out four million dollars in hard money, and add seven hundred thousand dollars to annual expenditure, without imposing a tax, and with a total revenue of eleven millions, was a feat that warranted congratulations. Yet Gallatin’s success was not obtained without an effort. As usual, he drew a part of his estimated surplus from the navy. He appealed to Jefferson to reduce the navy estimates from nine hundred thousand to six hundred thousand dollars.[89]
“I find that the establishment now consists of the ‘Constitution,’ the ‘Philadelphia,’ each 44, and five small vessels, all of which are now out, and intended to stay the whole year, as the crew is enlisted for two years. In my opinion one half of the force,—namely, one frigate and two or three small vessels,—were amply sufficient.”
Jefferson urged the reduction,[90] and Secretary Smith consented. The navy estimates were reduced to six hundred and fifty thousand dollars, and on the strength of this economy Gallatin made his calculation. As he probably foresaw, the attempt failed. Whether in any case Smith could have effected so great a retrenchment was doubtful; but an event occurred which made retrenchment impossible.
The war with Tripoli dragged tediously along, and seemed no nearer its end at the close of 1803 than eighteen months before. Commodore Morris, whom the President sent to command the Mediterranean squadron, cruised from port to port between May, 1802, and August, 1803, convoying merchant vessels from Gibraltar to Leghorn and Malta, or lay in harbor and repaired his ships, but neither blockaded nor molested Tripoli; until at length, June 21, 1803, the President called him home and dismissed him from the service. His successor was Commodore Preble, who Sept. 12, 1803, reached Gibraltar with the relief-squadron which Secretary Gallatin thought unnecessarily strong. He had the “Constitution,” of 44 guns, and the “Philadelphia,” of 38; the four new brigs just built,—the “Argus” and the “Syren,” of 16 guns, the “Nautilus” and the “Vixen,” of 14 guns; and the “Enterprise,” of 12. With this force Preble set energetically to work.
Tripoli was a feeble Power, and without much effort could be watched and blockaded; but if the other governments on the coast should make common cause against the United States, the task of dealing with them was not so easy. Morocco was especially dangerous, because its ports lay on the ocean, and could not be closed even by guarding the Straits. When Preble arrived, he found Morocco taking part with Tripoli. Captain Bainbridge, who reached Gibraltar in the “Philadelphia” August 24, some three weeks before Preble arrived, caught in the neighborhood a Moorish cruiser of 22 guns with an American brig in its clutches. Another American brig had just been seized at Mogador. Determined to stop this peril at the outset, Preble united to his own squadron the ships which he had come to relieve, and with this combined force,—the “Constitution,” 44; the “New York,” 36; the “John Adams,” 28; and the “Nautilus,” 14,—sending the “Philadelphia” to blockade Tripoli, he crossed to Tangiers October 6, and brought the Emperor of Morocco to reason. On both sides prizes and prisoners were restored, and the old treaty was renewed. This affair consumed time; and when at length Preble got the “Constitution” under way for the Tripolitan coast, he spoke a British frigate off the Island of Sardinia, which reported that the “Philadelphia” had been captured October 21, more than three weeks before.
The loss greatly embarrassed Preble. The “Philadelphia” was, next to the “Constitution,” his strongest ship. Indeed he had nothing else but his own frigate and small brigs of two and three hundred tons; but the accident was such as could not fail sometimes to happen, especially to active commanders. Bainbridge, cruising off Tripoli, had chased a Tripolitan cruiser into shoal water, and was hauling off, when the frigate struck on a reef at the mouth of the harbor. Every effort was made without success to float her; but at last she was surrounded by Tripolitan gunboats, and Bainbridge struck his flag. The Tripolitans, after a few days’ work, floated the frigate, and brought her under the guns of the castle. The officers became prisoners of war, and the crew, in number three hundred or more, were put to hard labor.
The affair was in no way discreditable to the squadron. Morris had been recalled in disgrace for over-caution, and Bainbridge was required to be active. The Tripolitans gained nothing except the prisoners; for at Bainbridge’s suggestion Preble, some time afterward, ordered Stephen Decatur, a young lieutenant in command of the “Enterprise,” to take a captured Tripolitan craft re-named the “Intrepid,” and with a crew of seventy-five men to sail from Syracuse, enter the harbor of Tripoli by night, board the “Philadelphia,” and burn her under the castle guns. The order was literally obeyed. Decatur ran into the harbor at ten o’clock in the night of Feb. 16, 1804, boarded the frigate within half gun-shot of the Pacha’s castle, drove the Tripolitan crew overboard, set the ship on fire, remained alongside until the flames were beyond control, and then withdrew without losing a man, while the Tripolitan gunboats and batteries fired on him as rapidly as want of discipline and training would allow. Gallant and successful as the affair was, it proved only what was already well known, that the Tripolitans were no match for men like Decatur and his companions; and it left Preble, after losing in the “Philadelphia” nearly one third of his force, still strong enough to do the work that needed to be done.
The frigate had been built by the citizens of Philadelphia, and given to the government in 1799. So far as the ship was concerned, the loss was not much regretted, for the Republicans when in opposition had strenuously opposed the building of frigates, and still considered them a danger rather than a defence. Although the “Philadelphia” was the newest ship in the service, a companion to the “Constellation,” the “Congress,” and the “Chesapeake,” she was never replaced; two 18-gun brigs, the “Hornet” and the “Wasp,” were constructed instead of one 38-gun frigate; and these were the last sea-going vessels built under Jefferson’s administration. The true annoyance was not that a frigate had been lost, but that the captivity and enslavement of the crew obliged Government to rescue them and to close the war, by a kind of expenditure which the Republican party disliked.
Bainbridge’s report of his capture, which had happened at the end of October, 1803, was sent to Congress March 20, 1804, in the last week of the session. The President sent with it a brief Message recommending Congress to increase the force and enlarge expenses in the Mediterranean. As Gallatin never willingly allowed his own plans for the public service to be deranged, Congress adopted a new means for meeting the new expense. Although the Treasury held a balance of $1,700,000, Gallatin would not trench upon this fund, but told Randolph, who was Chairman of the Ways and Means Committee, that the specie in the Treasury could not be safely reduced below that amount.[91] He informed Joseph Nicholson that $150,000 was the utmost sum he could spare. The sum wanted was $750,000 per annum. A Bill was introduced which imposed an additional duty of 2½ per cent on all imports that paid duty ad valorem. These imports had been divided, for purposes of revenue, into three classes, taxed respectively 12½, 15, and 20 per cent; the increase raised them to 15, 17½, and 22½ per cent. The average ad valorem duty was before about 13½; the additional tax raised it above 16 per cent; and the Republicans preferred this method of raising money as in every way better than the system of internal taxation. After imposing the additional duty of 2½ per cent,—a duty intended to produce about $750,000,—the Bill made of it a separate Treasury account, to be called the “Mediterranean Fund,” which was to last only as long as the Mediterranean war should last, when the 2½ per cent duty was to cease three months after a general peace.
The Mediterranean Fund was meant as a protest against loose expenditure,—a dike against the impending flood of extravagance. The Mediterranean war was the first failure of President Jefferson’s theory of foreign relations, and the Mediterranean Fund was the measure of the error in financial form. No reproach henceforward roused more ill temper among Republicans than the common charge that their elaborate financial precautions and formalities were a deception, and that the Mediterranean Fund was meant to conceal a change of principle and a return to Federalist practices. Even in the first words of the debate, Roger Griswold told them that their plausible special fund was “perfectly deceptive,” and amounted to nothing. John Randolph retaliated by declaring that the Republican government consisted of men who never drew a cent from the people except when necessity compelled it; and Griswold could not assert, though he might even then foresee, that for ten years to come, Randolph would denounce the extravagance and waste of the men whom he thus described.