This communication startled the House, and even produced an excitement of no ordinary nature. Congress suddenly awoke to the fact that the Secretary was in earnest, and that, if war came, Congress must learn to take advice. The faction that followed Mr. Giles and General Smith were not quick in learning this lesson, and fairly raved against the Secretary. What so exasperated them may be gathered best from a speech by Mr. Wright, of Maryland, one of the most extreme of the Smith connection. On March 2, 1812, he spoke thus:
“Sir, at the last session, when the question for rechartering the odious British bank was before us, we had to encounter the influence of the Secretary of the Treasury.... Now at this session he has told us that, if we had a national bank, we should have no occasion to resort to internal taxes; thereby calling the American people to review the conduct of their representatives in not continuing that bank, and thereby to fix the odium of these odious taxes on the National Legislature. Now a system of taxes is presented truly odious, in my opinion, to the people, to disgust them with their representatives and to chill the war spirit. Yet it is, under Treasury influence, to be impressed on the Committee of Ways and Means, and through them on the House. Sir, I, as a representative of the people, feel it my duty to resist it with all my energies.... Sir, is there anything of originality in his system? No! It is treading in the muddy footsteps of his official predecessors in attempting to strap round the necks of the people this odious system of taxation, adopted by them, for which they have been condemned by the people and dismissed from power.... And now, sir, with the view of destroying this Administration; with this sentence of a dismissal of our predecessors in office before our eyes, a sentence not only sanctioned, but executed by ourselves, we are to be pressed into a system known to be odious in the sight of the people, and which, on its first presentation in a letter from the Secretary of the Treasury to the Committee of Ways and Means, and by them submitted to us, produced such an excitement in the House.”
The “invisibles,” however, were not the only class of men upon whom the war-budget fell with startling effect. Mr. Gallatin’s old friends with whom he had acted in 1792, when at the unlucky Pittsburg meeting they had united in declaring “that internal taxes upon consumption, from their very nature, never can effectually be carried into operation without vesting the officers appointed to collect them with powers most dangerous to the civil rights of freemen, and must in the end destroy the liberties of every country in which they are introduced;” men like William Findley, his old colleague, were so deeply shocked at the reintroduction of the excise that they would not vote even for the printing of this letter. They looked upon Mr. Gallatin as guilty of flagrant inconsistency. They did not stop to reflect that, if inconsistency there were, it dated as far back as 1796, when, in his “Sketch of the Finances,” Mr. Gallatin had taken essentially the same view of the excise as now;[111] and again in 1801, when he had refused to recommend the repeal of the internal taxes.
It was assumed that the Secretary of the Treasury could discover unknown resources; the Aurora dreamed of endless wealth in the national lands; but in point of fact this letter of Mr. Gallatin’s erred only in calling for too little. He began by accepting the committee’s estimate that loans to the extent of $50,000,000 would carry on a four years’ war. The war lasted two years and a half, and raised the national debt from $45,000,000 to $123,000,000, or at the rate of somewhat more than $30,000,000 a year, nearly three times the estimate. Had Mr. Gallatin foreseen anything like the truth in regard to the coming contest, his demand for resources would have appeared absurd, and he would have lost whatever influence he still had.
For once, however, Gallatin was master of the situation. He could not force his enemies to vote for the taxes, but he could force them to vote for or against, and either alternative was equally unpleasant to them. The honest supporters of war found little difficulty in following Mr. Gallatin’s lead, but the mere trimmers, and the men who supported a war policy because the Administration opposed it, were greatly disturbed. Mr. Bacon brought in a report with a long line of resolutions, and seriously proceeded to force them through the House. Nothing, one would think, could have given Mr. Gallatin keener entertainment than to see how his enemies acted under this first turn of the screw which they themselves had set in motion. It was a sign that government was again at work, and that the long period of chaos was coming to an end; but the struggle to escape was desperate, and it was partially successful. At first, indeed, Mr. Gallatin carried his point. On the 4th resolution, for a tax of twenty cents a bushel on salt, the House rebelled, and refused the rate by a vote of 60 to 57, but the next day the whip was freely applied, and Mr. Wright and his friends were overthrown by a vote of 66 to 54. This settled the matter for the time, and the House meekly swallowed the whole list of nauseous taxes, and ordered Mr. Bacon’s committee, on the 4th March, 1812, to prepare bills in conformity with the resolutions. This was done, but the bills could not be got before the House till June 26, when there remained but ten days of the session. As it was out of the question to get these taxes adopted by the House and Senate in that short time, Mr. Gallatin was obliged to consent to their going over till November. Congress, however, was quite ready to authorize loans, and promptly began with one of eleven millions, which, small as it was, Mr. Gallatin found difficulty in negotiating, even with the active and valuable assistance of Mr. John Jacob Astor, who now became a considerable power in the state.
The attitude of the Administration towards the war during the winter of 1811-12 seems to have been one of passive acquiescence. Nothing has yet been brought to light, nor do the papers left by Mr. Gallatin contain the smallest evidence, tending to show that Mr. Madison or any of his Cabinet tried to place any obstacle in the way of the war party. That they did not wish for war is a matter of course. Their administrative difficulties even in peace were so great as to paralyze all their efforts, and from war they had nothing to expect but an infinite addition to them. The burden would fall chiefly upon Mr. Gallatin, who knew that the Treasury must break down, and upon the Secretary of War, Eustis, who was notoriously incompetent. Yet even Mr. Gallatin accepted war as inevitable, and wrote in that sense to Mr. Jefferson.
GALLATIN TO JEFFERSON.
Washington, 10th March, 1812.
Dear Sir,—...You have seen from your retreat that our hopes and endeavors to preserve peace during the present European contest have at last been frustrated. I am satisfied that domestic faction has prevented that happy result. But I hope, nevertheless, that our internal enemies and the ambitious intriguers who still attempt to disunite will ultimately be equally disappointed. I rely with great confidence on the good sense of the mass of the people to support their own government in an unavoidable war, and to check the disordinate ambition of individuals. The discoveries made by Henry will have a salutary effect in annihilating the spirit of the Essex junto, and even on the new focus of opposition at Albany. Pennsylvania never was more firm or united. The South and the West cannot be shaken. With respect to the war, it is my wish, and it will be my endeavor, so far as I may have any agency, that the evils inseparable from it should, as far as practicable, be limited to its duration, and that at its end the United States may be burthened with the smallest possible quantity of debt, perpetual taxation, military establishments, and other corrupting or anti-republican habits or institutions.
Accept the assurances of my sincere and unalterable attachment and respect.