Had Congress been more tractable, something might perhaps have been done to alleviate the situation; but the Senate was utterly beyond control, and the House was becoming almost equally perverse. The expedient adopted by government fifty years later in the face of similar difficulties, even had it been now thought of, would have had little chance of general acceptance. Mr. Gallatin could get no action from Congress. His tax bills of the preceding session had been postponed on the understanding that they should be adopted before the 1st January, 1813; but, meanwhile, experience proved that these bills, violent as they had at first been thought, were quite unequal to the occasion, and that much stronger measures were needed. The five millions which had luckily fallen in, owing to the enormous British shipments after war was declared, helped to tide the Treasury over its immediate difficulties, but it helped also to encourage the inaction of Congress. Mr. Cheves did not contribute to smooth the path of the Treasury. He wished to force Congress to raise revenue by abandoning the non-importation system, which was still maintained as a coercive measure against Great Britain; this was also Mr. Gallatin’s wish, but Congress refused its consent. Meanwhile, the tax bills were untouched. Month after month passed, and still nothing was done until the session closed on March 3, 1813, when, since it was universally conceded that these bills must be taken up, an extra session in May for this express purpose became necessary. All Congress would do, meanwhile, was to authorize loans, the favorite resource of incompetent financiers.
Many years later, Mr. Jonathan Roberts, who had been a member of this Congress, writing to Mr. Gallatin in the garrulity of age, recalled his recollections of the war. The letter is dated December 17, 1847, and seems to have been merely a spontaneous expression of old feelings. “When it was first my fortune to have met you,” he wrote, “I found you to be a ripe and experienced statesman, possessed of the affectionate confidence of the most eminent and wisest among your compeers. You were only about ten years my senior, but immeasurably advanced above me in capacity for usefulness for that small disparity in years. In a very early period of our intercourse you gave me proofs of your confidence, of which I felt myself not unworthy, but which I had not been taught to look for from one who had so long mixed in state affairs.... While I witnessed an admiration of your character among enlightened and liberal minds, abundant evidences were not wanting of envy, jealousy, and even hatred. My sympathies were enlisted in your favor, and my indignation was roused in witnessing ebullitions of these detestable passions. You stood the friend of peace in the crisis pending the last war,—an attitude that called for the exercise of higher moral nerve than the opposite position; while our friends Madison and Macon, feeling with you, each in your places, fulfilled every duty with the honest purpose to seek for peace as the object they most desired.
“You can hardly fail to remember how Mr. Cheves acted towards you as chairman of Ways and Means, and how Colonel Johnson baffled every effort to report the tax bills. These men, too, gave their votes for an extravagant loan bill, which probably [no] man could have raised, even on the predicate of adequate taxes. At your suggestion I hastened to visit Governor Snyder, to give him your views of what would be the effect of the measure of the forty-one new banks on the prospects of raising loans. On meeting him I found he had negatived the bank bill, and it only remained for me to leave with him the views you had charged me with.”
1813.
Mr. Gallatin’s annual report in November, 1812, had been reticent in tone, perhaps because he was unwilling to discourage, and yet had nothing encouraging to say. He simply gave the condition of the Treasury and announced that a loan of twenty millions would be required. Congress authorized a loan of sixteen millions and the issue of five millions in Treasury notes; it would do no more; every other plan or suggestion of Mr. Gallatin or of the President was defeated or ignored.
Such was the situation when Congress adjourned on the 4th March, 1813. Mr. Gallatin then opened his loan. The Treasury was nearly exhausted; so nearly that on the 1st April it was absolutely empty, and must have ceased to meet the requisitions of the War and Navy Departments; the Federalists were in high hope that the loan would fail and government fall to pieces, and they made the most active efforts to force this result. The crisis was serious, and it was in this emergency that Mr. John Jacob Astor rendered to Mr. Gallatin and to the country essential aid; by his assistance Mr. Gallatin was enabled to make his terms with Mr. Parish and Mr. Girard, and thus three foreigners by birth, Mr. Gallatin himself being of foreign birth, saved the United States government for the time from bankruptcy, and perhaps from evils far more fatal; so, at least, the Federalists thought, and they long vented their wrath against these foreigners, as they called them, for an act which was certainly a somewhat bitter satire upon American patriotism.
Just at this moment the Russian minister, Daschkoff, communicated to the Secretary of State an offer of mediation on the part of the Emperor. His note bore date the 8th March, and in the situation of our government not only towards that of Russia, but towards the peace party at home, it had the gravest significance. There could be no hesitation in accepting the offered mediation, but there might be a question whether it were best to accept it before hearing from England. To show over-eagerness for peace would weaken our position abroad; but the position abroad was of less consequence than union at home, and sluggishness in meeting peace propositions would stimulate every domestic faction. The President decided not to wait, but to send commissioners at once. Mr. Gallatin had now, by the end of March, disposed of his loan; he could easily arrange the affairs of his Department so as to admit of his absence, and he requested the President to let him go to Russia.
So many and so complicated are the influences which must have acted upon Mr. Gallatin’s mind to produce this decision, that they are hardly to be set forth with any certainty of measuring their precise relative weight; yet there can be little possibility of error in assuming, as the most powerful, the conviction which had long weighed upon his mind that his usefulness in his present position was exhausted, and that Congress would do better, at least for a time, without him. So accustomed had Congress become to throwing upon him the burden and the blame of every measure, that nothing short of his retirement would break the spell which bound them, and so ineradicable were the enmities which neutralized all his efforts, that only his self-effacement could extinguish them. This he had long known, but the President’s wishes had tied his hands. He could not desert the President or the country if his services were needed; but the situation had now become such as to create a serious doubt whether his services were not really more necessary abroad than at home. A year not yet quite elapsed had already brought the country into a position grave in the extreme; financial collapse and domestic treason were becoming mere questions of time; another campaign was inevitable, and it might fairly be reckoned that, if this were not successful, success was out of our power; diplomacy, therefore, had become the most important point of action next to service in the field, and in diplomacy Mr. Gallatin naturally felt that he had a brilliant future before him. Here he would escape from all his old difficulties and enmities; to Europe the Smiths, Duanes, Gileses, and Leibs would hardly care to follow him. The past was a failure; he might fling it away, and still rescue his country and himself by this change of career.
Mr. Gallatin grew more and more silent with age and experience; he never complained, and never said what was calculated to wound; but he had now stood for five years in a position inconsistent with his principles and grating to his feelings. In deciding to go to St. Petersburg he was well aware that he would be charged with having deserted his post, and charged by the same men who for four years had made it impossible for him to perform the duties of that post, and who still presented an impenetrable barrier to every attempt on his part at efficient administration. It is probably true that Mr. Gallatin himself hoped not to return to the Treasury; if he returned at all, he would have preferred the dignified ease of the State Department; but these points he did not and would not attempt to settle in advance; he left it absolutely in the hands of Mr. Madison to decide for the public interest what disposition to make of his services. There were two obvious contingencies; the one, in case the Senate should insist upon his resignation as Secretary, and, to obtain this, reject his nomination as commissioner; the other, the case of diplomatic delays that might prevent his return and compel the President to fill his vacant place: “Mr. Bayard asked me,” wrote Mr. Dallas in the following February, “whether you had reflected upon the first event as a probable one, and you merely smiled when I repeated his question to you.” Mr. Dallas seems to have felt a little irritation at this reticence, but a sadder smile than Gallatin’s can hardly be imagined even among the Administration in these trying times, although it may have been brightened by a touch of humor at the thought how readily the Senate would fall into that agreeable occupation, and how willingly he would throw upon them that responsibility. In any case it was not for him to direct the President’s action; Mr. Madison himself could alone be the judge of what the occasion required.
Of course it was fully in Mr. Madison’s power to retain Mr. Gallatin at his post. He too seems, however, to have been impressed with the advantages of sending him to Russia, and the act was carefully considered and was his own. In the case of negotiations taking place, America afforded no negotiator comparable to Gallatin; if he were willing to go, his presence would be invaluable.