These words were written before he had seen Monroe’s despatches. When the whole correspondence was put into his hands he read it, and in returning it to Madison made the dry comment that the business had not ended quite so badly as he had previously supposed.[57] The phrase bore a double meaning, for even Madison must have admitted that the business could not have ended much worse.

Gallatin sent to the President a remarkable paper,[58] in substance an argument for peace, and in tenor a criticism of the grounds which Jefferson, Madison, Monroe, Livingston, and Pinckney had thought proper to take in their dispute with Spain. Gallatin held that, owing to the “unpardonable oversight or indifference” of Livingston and Monroe in failing to insist on a boundary to Louisiana, the United States government was debarred from holding Spain responsible for the inevitable consequences of its own fault. Neither Spain’s qualified refusal to ratify the claims convention of 1802 nor her rejection of the French spoliation claims would justify war. As a matter of abstract justice, war was not to be defended; as a matter of policy, it could not be recommended. The expense and loss would exceed the value of Florida; the political result would entangle America in alliance with England; and, “in fine, a subversion of all our hopes must be the natural consequence.” Renewal of negotiation was the proper step, with the Sabine and Perdido as boundaries and a temporary arrangement under the status quo, acceptance of the Spanish condition precedent to ratifying the claims convention, and insistence against the new spoliations which French and Spanish privateers were daily making on American commerce in the West Indies. Pending the result of this negotiation Congress might spend some money on the militia, and might appropriate a million dollars annually to build ships of the line.

In effect, Gallatin threw his influence on the side of Madison against the President’s semi-warlike views. The opinion of Robert Smith did not weaken the force of Gallatin’s reasoning. Already a perceptible division existed in the Cabinet between the Treasury and the Navy. Hardly three months before the Spanish embarrassment, Gallatin had spoken to the President in strong terms of Robert Smith’s administration, and had added,[59]

“On this subject,—the expense of the Navy greater than the object seemed to require, and a merely nominal accountability,—I have, for the sake of preserving perfect harmony in your councils, however grating to my feelings, been almost uniformly silent.”

Smith’s present views tended to confirm Gallatin in his irritation, and to reconcile Jefferson to abandoning his energetic schemes. The Secretary of the Navy said that throughout these negotiations Spain had presumed much on American predilection for peace, and on the want of means to annoy her either by land or by water. He urged the necessity of working on her fears, and advised that Congress be recommended to provide additional gunboats, to put all the frigates in commission, and to build twelve seventy-fours. With these means he was disposed to take a commanding attitude; and if Spain were supported by France, to make an alliance with England.[60]

Gallatin and Robert Smith agreed only on one point,—that the affair had been mismanaged. Both secretaries held that America had made pretensions which she had not strength at the moment to support. Rather than “again run the risk of lowering national importance,” Gallatin preferred to submit to the consequent loss of reputation, and return to a true peace-policy. Robert Smith wished to maintain a high tone, and to arm. All Jefferson’s instincts were with Gallatin; but the path that Gallatin proposed was hard and mortifying, and although he made it as little abrupt as possible, he could not prevent it from seeming what it was,—a severe humiliation to the President. Not without some inward struggle could a President of the United States bow his neck to such a yoke as Spain and France imposed.

At that moment, the middle of September, arrived Armstrong’s letter advising the military occupation of Texas and a cessation of intercourse with Spain. His plan was the first well-considered suggestion yet made for carrying out the policy hitherto pursued; and although contrary to Gallatin’s advice, it agreed so well with the President’s views that he caught at it with the relief of a man unable to solve his own problem, who hears another explain what to himself is inexplicable. Jefferson seized Armstrong’s idea, and uniting it with his own, announced the result to Madison as the true solution of the difficulty:[61]

“Supposing a previous alliance with England to guard us in the worst event, I should propose that Congress should pass acts (1) authorizing the Executive to suspend intercourse with Spain at discretion; (2) to dislodge the new establishments of Spain between the Mississippi and Bravo; (3) to appoint commissioners to examine and ascertain all claims for spoliation.”

Here at length was a plan,—uncertain, indeed, because dependent on British help, but still a scheme of action which could be discussed. The President appointed October 4 as the day on which the Cabinet should reunite at Washington to consider his project, but Madison replied that he could not return so soon; and in order that the Cabinet should know his views, he explained at some length the course he advised, which differed widely from that of the President.

“With respect to Great Britain,” he said,[62] “I think we ought to go as far into an understanding on the subject of an eventual coalition in the war as will not preclude us from an intermediate adjustment, if attainable, with Spain. I see not, however, much chance that she will positively bind herself not to make peace, while we refuse to bind ourselves positively to make war,—unless, indeed, some positive advantage were yielded on our part in lieu of an engagement to enter into the war. No such advantage as yet occurs as would be admissible to us and satisfactory to her.”