GALLATIN TO JOHN MONTGOMERY.

Washington, 27th July, 1809.

... The late news from England has deranged our plans, public and private. I was obliged to give up my trip to Belair, have also postponed our Virginia journey, and have written to Mr. Madison that I thought it necessary that he should return here immediately. We have not yet received any letters from Mr. Pinckney nor any other official information on the subject. Even Mr. Erskine, who is, however, expected every moment, has not written. I will not waste time in conjectures respecting the true cause of the conduct of the British government, nor can we, until we are better informed, lay any permanent plan of conduct for ourselves. I will only observe that we are not so well prepared for resistance as we were one year ago. All or almost all our mercantile wealth was safe at home, our resources entire, and our finances sufficient to carry us through during the first year of the contest. Our property is now all afloat; England relieved by our relaxations might stand two years of privations with ease; we have wasted our resources without any national utility; and, our Treasury being exhausted, we must begin our plan of resistance with considerable and therefore unpopular loans. All these considerations are, however, for Congress; and at this moment the first question is, what ought the Executive to do? It appears to me from the laws and the President’s proclamation, that as he had no authority but that of proclaiming a certain fact on which alone rested the restoration of intercourse, and that fact not having taken place, the prohibitions of the Non-Intercourse Act necessarily revive in relation to England, and that a proclamation to that effect should be the first act of the Executive. If we do not adopt that mode, our intercourse with England must continue until the meeting of Congress, whilst her orders remain unrepealed and our intercourse with France is interdicted by our own laws. This would be so unequal, so partial to England and contrary to every principle of justice, policy, and national honor, that I hope the Attorney-General will accede to my construction and the President act accordingly.

The next question for the Executive is how we shall treat Mr. Jackson; whether and how we will treat with him. That must, it is true, depend in part on what he may have to say. But I have no confidence in Canning & Co., and if we are too weak or too prudent to resist England in the direct and proper manner, I hope at least that we will not make a single voluntary concession inconsistent with our rights and interest. If Mr. Jackson has any compromise to offer which would not be burthened with such, I will be very agreeably disappointed. But, judging by what is said to have been the substance of Mr. Erskine’s instructions, what can we expect but dishonorable and inadmissible proposals? He is probably sent out, like Mr. Rose, to amuse and to divide, and we will, I trust, by coming at once to the point, bring his negotiation to an immediate close....

One may reasonably doubt whether during the entire history of the United States government the difficulties of administration have ever been so great as during the years 1809-11. Peace usually allows great latitude of action and of opinion without endangering the national existence. War at least compels some kind of unity; the path of government is then clear. Even in 1814 and in 1861 the country responded to a call; but in 1809 and 1810 the situation was one of utter helplessness. The session of 1808-9 had proved two facts: one, that the nation would not stand the embargo; the other, that it could not be brought to the point of war. So far as Mr. Madison and his Administration are concerned, it is safe to say that they would at any time have accepted any policy, short of self-degradation, which would have united the country behind them. As for Mr. Gallatin, he had yielded to the embargo because it had the support of a great majority of Congress; he had done his utmost to support the only logical consequence of the embargo, which was war. Congress had rejected both embargo and war, and had in complete helplessness fallen back on a system of non-intercourse which had most of the evils of embargo, much of the expense of war, and all the practical disgrace of submission. He could do nothing else than make the best of this also. The country had lost its headway and was thoroughly at the mercy of events.

When studied as a mere matter of political philosophy, it is clear enough that this painful period of paralysis was an inevitable stage in the national development. The party which had come into power in 1801 held theories inconsistent with thorough nationality, and, as a consequence, with a firm foreign policy. The terrible treatment which the government received, while in its hands, from the great military powers of Europe came upon the Republican party before it had outgrown its theories, and necessarily disorganized that party, leaving the old States-rights, anti-nationalizing element where it stood, and forcing the more malleable element forward into a situation inconsistent with the party tenets. Another result was to give the mere camp-followers and mercenaries of both parties an almost unlimited power of mischief. Finally, the Federalist opposition, affected in the same manner by the same causes, also rapidly resolved itself into three similar elements, one of which seriously meditated treason, while the more liberal one maintained a national character. It was clear, therefore, or rather it is now clear, that until the sentiment of nationality became strong enough to override resistance and to carry the Administration on its shoulders, no effective direction could be given to government.

That Mr. Gallatin consciously and decidedly followed either direction, it would be a mistake to suppose. He too, like his party, was torn by conflicting influences. A man already fifty years old, whose life has been earnestly and arduously devoted to certain well-defined objects that have always in his eyes stood for moral principles, cannot throw those objects away without feeling that his life goes with them. So long as a reasonable hope was left of attaining the results he had aimed at, or of preventing the dangers he dreaded, it was natural that Mr. Gallatin should cling to it and fight for it; but, on the other hand, he was a man of very sound understanding, and little, if at all, affected by mere local prejudices; his ideal government was one which should be free from corruption and violence; which should interfere little with the individual; which should have neither debt, nor army, nor navy, nor taxes, beyond what its simplest wants required; and which should wish “to become a happy, and not a powerful, nation, or at least no way powerful except for self-defence.” On this side he was in sympathy with all moderate and sensible men in both parties, and was more naturally impelled to act with them than with his old allies, who were chiefly jealous of national power because it diminished the sovereignty of Virginia or South Carolina.

To one standing, therefore, as Mr. Gallatin was now standing, on the verge of several years’ inaction, out of which the nation could rescue itself only by a slow process of growth, the ends to be attained and the dangers to be feared would arrange themselves almost axiomatically. War was out of the question, not only because both parties had united against it, but because the Treasury was very rapidly losing its war fund and would soon be unable to promise resources. If peace, therefore, were to be preserved, the policy of commercial restrictions was the only form of protest practicable, and it must again become the task of diplomacy to re-establish the old Jeffersonian “balance” between the belligerents. In other words, diplomacy had become more important than finance.

Candid criticism certainly tends to show that the only national policy which had a chance of success was also the only one which had not a chance of adoption. A sudden, concentrated, and determined attack upon Bonaparte would, in all human probability, have been successful; the Emperor would have given way, and in this case England must also have receded; but this would have been a mere repetition of the Federalist policy of 1798, and the Republican party had no fancy for Federalist precedents. The behavior of Canning had roused so bitter a feeling as to paralyze measures against Bonaparte, while the Republican party was as little competent to imitate the dash and stubborn intensity of the Federalists as the calm temperament of Mr. Madison to lash itself into the fiery impetuosity of John Adams. Nothing remained but to settle the nature and extent of the mild protest which was to be maintained against the armed violence of the two belligerents, and, now that the doors of the State Department were closed in Mr. Gallatin’s face, his only hope was to create a new financial system that would serve to meet the wants of the new political situation as Congress might ultimately give it shape. Throwing behind him, therefore, all his old hopes and ambitions, all schemes for discharging debt and creating canals, roads, and universities, he turned his energies to the single point of defending the Treasury and resisting follies. He regarded the habit of borrowing money with horror; this was a resource to be reserved for war, when national life depended upon it; until that time came he insisted that the expenditure should not exceed the revenue. The experience of only last winter had shown how readily Congress wasted its resources: although Mr. Gallatin had succeeded in partially checking the navy appropriations, nearly three millions were voted, and two and a half millions were actually spent on the navy in 1809, without increasing its force or effecting the smallest good; and meanwhile the surplus upon which Mr. Gallatin had relied to carry on the first year of war was rapidly vanishing, while the militia were not organized, the forts were not completed, arms were not on hand, and military roads were wholly wanting.

To raise by taxation, so long as peace lasted, all the money to be spent by Congress, was the rule which Mr. Gallatin was now struggling to enforce. If Congress appropriated money, Congress must lay taxes. To maintain this ground required a firm, almost a rough hand, and unless both the Cabinet and the Senate were ready to support the Secretary of the Treasury in his effort, his position was untenable, and resignation must follow of course.