Notwithstanding the disagreement between the executive and one branch of the legislature concerning self created societies, and the policy observed towards foreign nations, the speech of the President was treated with marked respect; and the several subjects which it recommended, engaged the immediate attention of congress. A bill was passed authorizing the President to station a detachment of militia in the four western counties of Pennsylvania; provision was made to compensate those whose property had been destroyed by the insurgents, should those who had committed the injury be unable to repair it: and an appropriation exceeding one million one hundred thousand dollars was made to defray the expenses occasioned by the insurrection.
Many of the difficulties which had occurred in drawing out the militia were removed, and a bill was introduced to give greater energy to the militia system generally; but this subject possessed so many intrinsic difficulties, that the session passed away without effecting any thing respecting it.
A bill for the gradual redemption of the national debt was more successful. The President had repeatedly and earnestly recommended to the legislature the adoption of measures which might effect this favourite object; but, although that party which had been reproached with a desire to accumulate debt as a means of subverting the republican system had uniformly manifested a disposition to carry this recommendation into effect, their desire had hitherto been opposed by obstacles they were unable to surmount. Professions of an anxious solicitude to discharge the national engagements, without providing the means of actual payment, might gratify those who consider words as things, but would be justly estimated by men, who, neither condemning indiscriminately, nor approving blindly, all the measures of government, expect that, in point of fact, it shall be rightly and honestly administered. On the friends of the administration, therefore, it was incumbent to provide real, substantial funds, which should attest the sincerity of their professions. This provision could not be made without difficulty. The duty on imported articles, and on tonnage, though rapidly augmenting, could not, immediately, be rendered sufficiently productive to meet, alone, the various exigencies of the treasury, and yield a surplus for the secure establishment of a permanent fund to redeem the principal of the debt. Additional sources of revenue must therefore be explored, or the idea of reducing the debt be abandoned. New taxes are the never failing sources of discontent to those who pay them, and will ever furnish weapons against those who impose them, too operative not to be seized by their antagonists. In a government where popularity is power, it requires no small degree of patriotism to encounter the odium which, however urgently required, they seldom fail to excite. Ready faith is given to the declaration that they are unjust, tyrannical, and unnecessary; and no inconsiderable degree of firmness is requisite to persevere in a course attended with so much political hazard. The opposition made to the internal taxes, which commenced in congress, had extended itself through the community. Although only the act imposing duties on spirits distilled within the United States had been resisted by force, yet such a degree of irritation was manifested against the whole system, as to evince the repugnance with which a large portion of the people saw it go into operation. The duties on refined sugars, and manufactured tobacco, especially, were censured in terms which would authorize an opinion that a defect of power, rather than of will, to resist the execution of the law, confined some of its opponents to remonstrances. Nothing could be more unfriendly than this spirit, to the reduction of the debt.
The reports of the secretary of the treasury having suggested the several steps which had been taken by congress in the system of internal taxation, he was justly considered as its author. The perseverance which marked the character of this officer, gave full assurance that no clamour would deter him from continuing to recommend measures which he believed to be essential to the due administration of the finances. That the establishment of public credit on a sound basis was all important to the character and prosperity of the United States, constituted one of those political maxims to which he invariably adhered; and to effect it completely, seems to have been among the first objects of his ambition. He had bestowed upon this favourite subject the most attentive consideration; and while the legislature was engaged in the discussions of a report made by a select committee on a resolution moved by Mr. Smith, of South Carolina, purporting that further provision ought to be made for the reduction of the debt, addressed a letter to the house of representatives, through their speaker, informing them that he had digested and prepared a plan on the basis of the actual revenues, for the further support of public credit, which he was ready to communicate.
This comprehensive and valuable report presented the result of his laborious and useful investigations, on a subject equally intricate and interesting.
This was the last official act of Colonel Hamilton. The penurious provision made for those who filled the high executive departments in the American government, excluded from a long continuance in office all those whose fortunes were moderate, and whose professional talents placed a decent independence within their reach. While slandered as the accumulator of thousands by illicit means, Colonel Hamilton had wasted in the public service great part of the property acquired by his previous labours, and had found himself compelled to decide on retiring from his political station. The accusations brought against him in the last session of the second congress had postponed the execution of this design, until opportunity should be afforded for a more full investigation of his official conduct; but he informed the President that, on the close of the session, to meet in December, 1793, he should resign his situation in the administration. The events which accumulated about that time, and which were, he said in a letter to the President, of a nature to render the continuance of peace in a considerable degree precarious, deferred his meditated retreat. "I do not perceive," he added, "that I could voluntarily quit my post at such a juncture, consistently with considerations either of duty or character; and therefore, I find myself reluctantly obliged to defer the offer of my resignation.
"But if any circumstances should have taken place in consequence of the intimation of an intention to resign, or should otherwise exist, which serve to render my continuance in office in any degree inconvenient or ineligible, I beg leave to assure you, sir, that I should yield to them with all the readiness naturally inspired by an impatient desire to relinquish a situation, in which, even a momentary stay is opposed by the strongest personal and family reasons, and could only be produced by a sense of duty or reputation."
Resignation of Colonel Hamilton.
1795
Assurances being given by the President, of the pleasure with which the intelligence, that he would continue at his post through the crisis, was received, he remained in office until the commencement of the ensuing year. On the 1st of December, immediately on his return from the western country, the dangers of domestic insurrection or foreign war having subsided, he gave notice that he should on the last day of January give in his resignation.