Then Randolph rose,—not in wrath, for he spoke with unusual calm, but with a force which warranted the sway he so often exercised over men whose minds were habitually in doubt. He had ever believed, he said, that the people of the United States were destined to become a great naval power, but if anything could prevent this result it would be the premature attempts of the last two Administrations to force it. A naval power necessarily grew out of tonnage and seamen, but both tonnage and seamen had been systematically discouraged:—
“It has always been understood, according to my view of the subject, that one of the principal uses of a navy was to protect commerce; but our political rule for some time past has been that of inverse proportion, and we have discovered that commerce is the natural protector of a navy.”
The inconsistency of Jefferson’s principles and practice was a target which could be hit by the most inexperienced marksman, but Randolph struck it with something more solid than an epigram when he discussed its expense.
“Against the administration of Mr. Adams,” he said, “I, in common with many others, did and do yet entertain a sentiment of hostility, and have repeatedly cried out against it for extravagance and for profusion and for waste—wanton waste—of the public resources. I find, however, upon consideration,—whether from the nature of men, or from the nature of things, or from whatever other cause,—that that Administration, grossly extravagant as I did then and still do believe it to have been, if tried by the criterion of the succeeding one, was a pattern of retrenchment and economy.”
In order to prove this charge he attacked Robert Smith’s administration of the navy, asserting that while in 1800 each seaman cost about four hundred and seventy-two dollars a year, in 1808 each seaman cost nearly nine hundred dollars a year; and that the same excess existed in regard to officers, marines, clothing, and provisions:—
“Yes, sir! we have economized until we absolutely have reduced the annual cost of a seaman from $472—as it was under the very wasteful expenditure of Mr. Adams’s administration—down to the moderate sum of $887. We have economized until a paltry fleet consisting of vessels built to our hand, to say nothing of those that have been sold, and the warlike stores of which have been retained and preserved,—which fleet was built, equipped, and every cannon and implement of war purchased under the old Administration,—has cost us twelve million dollars, when it cost the preceding Administration but nine millions.”
Only one member replied on behalf of the Government to these criticisms. Burwell Bassett of the naval committee ventured somewhat timidly to defend, not so much Robert Smith as Secretary Hamilton, who, he said, had reduced expenses at the navy-yard about one third. Most of the frigates had been so thoroughly repaired as to be more valuable than when first built. In the navy-yard itself everything was in good condition and well conducted. Bassett’s testimony hardly met Randolph’s charges, but the House sustained him on every point; and Boyd of New Jersey so far forgot the respect due to a former vote, in which the House had resolved by a majority of two to one that the army and navy ought to be reduced, as to say that never since the government was formed had so preposterous a proposition been offered. The end of the session arrived before the discussion ceased.
The same inability to act, even where no apparent obstacle existed, was shown in regard to the United States Bank, whose charter, granted for twenty years by the First Congress in February, 1791, was to expire March 4, 1811. In the days of Federalist sway the Republicans had bitterly opposed the Bank and denied the constitutional power of Congress to grant the charter; but during the eight years of Jefferson’s rule the Bank had continued without a question to do the financial work of government, and no other agency existed or could be readily created capable of taking the place of this machine, which, unlike any other in the government, worked excellently well.
If its existence was to be continued, public interest required that the Act should be passed at this session, since the actual charter was to expire in ten months. If a new charter was to be refused, public interest required even more urgently that ample warning of so radical a change should be given, that the Treasury might not be suddenly crippled or general bankruptcy be risked without notice.
No complaint of any kind was at that time made against the Bank; no charge was brought against it of interference in politics, of corrupt influence, or of mismanagement. Gallatin was known to favor it; the President was not hostile, nor was any influence in the government opposed; the Federalists who had created were bound to support it; and except for the principles of some Southern Republicans who regarded functions of government as germs of despotism, every political faction in the country seemed consenting to the charter. January 29 the subject was referred to a special committee. The committee reported a Resolution, and in due course John Taylor of South Carolina brought in a bill, the result of negotiations between the Treasury and the Bank, granting a new charter on condition that the Bank should increase its capital two-and-a-half million dollars, half of which should be paid outright to the government; that, further, the Bank should bind itself to lend the government at three months’ notice any amount not exceeding in the whole five million dollars at a rate not exceeding six per cent; that on all government deposits above the sum of three millions, which should remain for one year, the Bank should pay interest at the rate of three per cent; and that the government should have the right at any time to increase the capital stock, and subscribe and own the new stock to a fixed amount. These terms were especially valuable at the moment, because they assisted the Treasury to meet an actual deficit, and provided, as far as human foresight went, for financial dangers that might rise from further foreign troubles. No serious opposition showed itself. April 21 the House, by a majority of seventy-five to thirty-five, voted to accept the price fixed for the charter; but the session closed without further action.