In the face of these incontrovertible pieces of evidence, one is left to wonder what can have been the foundation for the circumstantial story told by Stewart and Bainbridge that they read on June 21, 1812, in the chief clerk’s room at the Navy Department in Washington, orders which had just been drawn at the instance of Mr. Gallatin for Commodore Rodgers not to leave the waters of New York with his naval force; orders issued, as the Secretary of the Navy then and there explained, because it had been decided by the President and Cabinet, also at Mr. Gallatin’s suggestion, to dismantle the ships and use them as floating batteries to defend New York harbor; and that the cancelling of these orders and the reversal of this policy were due to the vehement remonstrances of these two gallant naval officers, who won a victory in the President’s mind over the blasting and fatal influence of Mr. Gallatin. It is a new illustration of the old jealousy between arms and gowns.
GALLATIN TO JOSEPH H. NICHOLSON.
Washington, 26th June, 1812.
Dear Sir,—I am just informed that you are in Baltimore. If it be true that your Legislature has authorized the banks to lend a portion of their capital to the United States, can you ascertain what amount may be obtained from them all either by taking stock or by way of temporary loans reimbursable at the expiration of one or more years? We have not money enough to last till 1st January next, and General Smith is using every endeavor to run us aground by opposing everything, Treasury notes, double duties, &c. The Senate is so nearly divided and the divisions so increased by that on the war question that we can hardly rely on carrying anything....
War being now declared, Mr. Gallatin was condemned to do that which, of all financial work, he most abhorred; to pile debt upon debt; “to act the part of a mere financier; to become a contriver of taxes, a dealer of loans,” and, in the inevitable waste of war, to be the helpless abettor of extravagance and mismanagement. These were not the objects for which he had taken office; they were, in fact, precisely the acts for which he had attacked his predecessors, had driven them from power, and appropriated their offices and honors, and no one felt this inconsistency more severely than Mr. Gallatin himself, although five years of painful effort and constant failure had taught him how feeble were party principles and private convictions in the face of facts. He was compelled to go on and to see worse things still. Every part of the administrative system, except one, collapsed. The war was miserably disastrous. The Act for raising 25,000 men had not become law until the 11th January, 1812; the selection of officers was not completed until the close of the year; the recruiting service was not organized in time; the enlistments fell short of the most moderate calculation, and the total number of recruits was so small as to make impossible any decisive movement on the line of Lake Champlain, although Montreal was almost unprotected. No sufficient naval force was provided on the Lakes, and in consequence an American army at Detroit was surrounded and captured by a mere mob of Canadians and Indians, who, inferior in every other respect to their opponents, had the inestimable advantage of a brave, energetic, and capable leader. Bad as this experience was, it hardly equalled the military performances at Niagara, where the commanding generals showed a degree of incompetence that descended at last to sheer buffoonery. The War Department in all its branches completely broke down, and if it had not been for the exploits of those half-dozen frigates whose construction had been so vehemently resisted by the Republican party under Mr. Gallatin’s lead, the Navy Department would have appeared equally poorly. The control of the Lakes was in fact lost, and only partially regained in 1813; the whole gun-boat system, on which millions had been wasted, went to pieces; even the frigates were mostly soon captured or blockaded, and, but for the privateers, England, at the end of the war, had little to fear on the ocean. Amid this general collapse of administration, Mr. Gallatin might have found hope and comfort had Congress shown capacity, but Congress was at least as inefficient as the Executive. Nothing could induce it to face the situation; with the exception of an Act for doubling the duties on importations, it passed no tax law until more than a year after the declaration of war, and it was not till the public credit was ruined and the Treasury notes were dishonored that Mr. Dallas, then Secretary of the Treasury, succeeded in bringing the Legislature to double the direct tax, to increase the rate of the internal duties and add new ones, immediately before the peace.[116]
A thorough reorganization of the Executive Departments was necessary, and should have been undertaken by the President before the war was even declared, but energy in administration was not a characteristic of Mr. Madison. He hesitated, delayed, postponed, and at length, as in the case of Robert Smith, he was dragged at the heels of men and events. Hardly a month had passed since the declaration of war, and Congress had adjourned on July 6 to meet again on the 3d November; Mr. Gallatin had just started for New York to seek for money, and the President had set out for his farm at Montpelier, when an express arrived with the news that General Hull had surrendered Detroit. What Mr. Gallatin thought of this affair may be inferred from the following extract of a letter to his wife:
GALLATIN TO HIS WIFE.
Washington, 31st August, 1812.
... Hull has in unaccountable manner surrendered all his troops (about 1800) prisoners of war to an inferior force. We have no direct accounts from him, but the fear of Indians for himself and the inhabitants is the probable cause of his not having extricated himself by retiring and abandoning the country. Proper measures for repairing the loss will be adopted; but how they will be executed by Eustis, no one can say....
The disaster at Detroit made a change in the War Department inevitable, but the change was not yet made. Mr. Gallatin pressed it as necessary from a financial point of view. When he found that the army and navy estimates would require a loan of $21,000,000 for the year 1813, he wrote to the President as follows: “I think a loan to that amount to be altogether unattainable. From banks we can expect little or nothing, as they have already lent nearly to the full extent of their faculties. All that I could obtain this year from individual subscriptions does not exceed $3,200,000. There are but two practicable ways of diminishing the expenditure: 1, by confining it to necessary objects; 2, by introducing perfect system and suppressing abuses in the necessary branches. 1. In the War Department, to reduce the calls for militia, and, above all, to keep the control over those calls and other contingent expenses; in the Navy, to diminish greatly the number of gun-boats, and to strike off all supernumerary midshipmen, pursers, sailing-masters, and other unnecessary officers. 2. System requires skill in forming and decision in executing. But the preparing and executing such plans must rest almost exclusively with the heads of the Departments. I have no doubt that knowledge and talents would save several millions, and the necessary business be better done.”