After thus describing the resources of the government, the Secretary proceeded to discuss its probable expenses under the four contingencies among which he supposed the choice of Congress to lie. Two of these were merely forms of submission to Great Britain and France, and, as in this case resistance would not be contemplated, no provision beyond an immediate reduction of expenses was required. The other two were forms of resistance; embargo, or war.
The embargo considered as a temporary measure, which would ultimately be superseded by war, was, financially, to be considered as a war measure, and preparations made accordingly; while if the embargo were adopted as a permanent system, coterminous with the belligerent edicts, it was a peace measure, and needed no other provision than economy at least for the next two years.
War must be carried on principally by loans, and the embargo had produced a situation most favorable for effecting loans. No internal taxes of any description need be imposed. All that the Treasury required, besides economy, was to double the import duties; to limit the system of drawbacks; either to repeal or to complete the partial non-intercourse law, and to reform the system of accountability in the Army and Navy Departments.
The report was decidedly warlike; clearly, if war was to come, Mr. Gallatin wished it to be begun within another year. His policy, therefore, is evident; he would have had Congress take a strong tone; continue the embargo for a given time until the results of Mr. Erskine’s representations should be known; and let it be clearly understood that the embargo was to give place to war. He would have had Congress apply six or eight millions to the purchase of arms and stores, to the building of forts or of ships, and to the organization of the militia; and with a firm party behind him and such measures of preparation, he would have spoken to Mr. Canning and to Napoleon with as much authority as it was in his power to command. He would boldly have retaliated upon both.
This was the plan adopted for the new Administration and earnestly pressed by the Secretary of the Treasury whom the President elect then looked upon as his future Secretary of State. Mr. Jefferson’s theory that his successor was responsible for the government after his election was decided, utterly untenable and mischievous as it was, compelled Mr. Madison to act through Mr. Gallatin. The whole future of his Administration turned on his success in holding the party together on this line of policy, and Mr. Gallatin labored night and day to effect this object.
MACON TO JOSEPH H. NICHOLSON.
Washington, December 4, 1808.
... The war men in the House of Representatives are, I conceive, gaining strength, and I should not be much surprised if we should be at war with both Great Britain and France before the 4th of March. Gallatin is most decidedly for war, and I think that the Vice-President and W. C. Nicholas are of the same opinion. It is said that the President gives no opinion as to the measures that ought to be adopted. It is not known whether he be for war or peace. It is reported that Mr. Madison is for the plan which I have submitted, with the addition of high protecting duties to encourage the manufacturers of the United States. I am as much against war as Gallatin is in favor of it. Thus I have continued in Congress till there is not one of my old fellow-laborers that agrees with me in opinion. I do not know what plan Randolph will pursue. He is against continuing the embargo. I wish he would lay some plan before the House. It grieves me to the heart to be compelled from a sense of right and duty to oppose him. I am not consulted, as you seem to suppose, about anything, nor do I consult any one. I am about as much out of fashion as our grand-mothers’ ruffle cuffs, and I do not believe that I shall be in fashion as soon as they will.
GALLATIN TO JOSEPH H. NICHOLSON.
Washington, 29th December, 1808.