To meet these responsibilities the new Constitution had placed in the hands of the Federal Government the power of collecting a revenue from imposts and taxes, to borrow money on the credit of the United States to any amount which the public service might be deemed to require, and to regulate commerce, both foreign and domestic,—a power from the exercise of which great improvements in the trade of the country were justly anticipated. In aid of these resources we possessed a population of some three and a half millions, as active and enterprising as any on the face of the earth, just emerging from the discouragements of a defective government, and bounding with hope into all the varieties of business and labor, for which a fertile soil and a salubrious climate afforded the most ample facilities. The comparison may be, and doubtless by many will be, regarded as inappropriate; but with the views—simple but practical—which experience has taught me, I cannot but think that if one were instituted between the liabilities of the United States in 1790 and those of the State of New York in 1842,—between the means at the disposal of each, and the extent to which the credit of each had been depressed,—it would be found that speedier and more substantial relief, and under less eligible circumstances, was obtained for the latter by the simple and direct efforts of those unpretending financiers, Michael Hoffman and Azariah C. Flagg, than was accomplished for the United States by the manifold schemes that were resorted to at the period of which we are speaking. Certain I am that if a similar comparison were made between the difficulties which the Treasury Department of the Federal Government had to contend with in 1790, and those which it encountered in 1837, combined with the powerful and active hostility of the United States Bank, the former would lose much of the apparent importance with which tradition, the influence of a great name, and the rhetorical applauses of modern political orators, of the Federal school, have invested them.[19]

The condition of things at the period we are considering was such as to promise the greatest advantages from the simplest, though persevering and well-considered, employment of the means then for the first time placed at the disposal of the General Government.

If it had fortunately so happened that General Washington had placed Hamilton at the head of the State Department, in which the theories which he appears to have studied from his earliest manhood—he having, though anonymously, at the age of twenty-three, sent to Robert Morris, then a member of Congress, the first plan for a bank of the United States, accompanied by an elaborate examination into monetary and financial affairs generally, and those of the United States in particular—would not have been called into action, and if he had appointed Madison to be Secretary of the Treasury, the fate of his administration and the effects of its measures in respect to parties would have been very different. The practical character of Madison's talents and disposition had been exemplified in the whole of his previous career, and was conspicuous in his course on the subject of revenue. On the second day after the votes for President and Vice-President under the new Constitution had been canvassed, and twenty days before the inauguration of President Washington, he commenced operations in the new House of Representatives, of which he was a member, to enable the new government to avail itself of the advantages secured to it by the Constitution in regard to revenue.

To this end he introduced a bill to impose impost and tonnage duties by which he believed all the objects of a national revenue could be secured without being oppressive to the country, and pursued his object day in and day out, until his bill became a law. A prompt application of the means thus acquired to the regular payment of the interest on the public debt, with a resort to others authorized in express terms by the Constitution if the impost had not proved adequate to all the objects of a national revenue, as he believed it would, and a discreet use of the power to borrow exerted in the ordinary way, accompanied by proper efforts to keep public expenditures at the lowest point consistent with an efficient public service, would in all probability have been the sum of the measures which Mr. Madison would have deemed necessary to place the public credit at the highest desirable point and to discharge all the existing obligations of the Government. They constitute all the means employed by the department now, and for several years past have proved abundantly sufficient to meet infinitely higher responsibilities, and there is in truth no conclusive reason to be found in the history of the period referred to why they would not have performed the same offices then.

But these simple and usually efficacious measures did not come up to Hamilton's standard. They fell short of what he thought necessary to the actual wants of the public service, and still more so in regard to what he deemed due to the efficiency, stability, and dignity of the Government. To secure all of these objects he desired to build up a financial system which would approach to an equality with the English model after which he designed to construct it; and he believed that it was in that way only that the public necessities could be amply provided for, the public credit placed at the point which he wished it to occupy, and the respectability of the Government be properly consulted. But this plan required the adoption of measures which, it is not too much to say, he knew that neither those who framed nor those who adopted the Constitution intended to authorize. This difficulty, which to ordinary minds would have appeared insurmountable, was overcome by a device either of his own creation or, as I have for many years believed, the suggestion of another.

The subject of internal improvements by the Federal Government, in regard as well to the power of the latter over the subject as to the expediency of its exercise, was repeatedly and very fully discussed in Congress, whilst Mr. Rufus King and myself represented the State of New York in the Senate of the United States. Upon the question of power we concurred in opinion, he adhering to that of Hamilton—the construction of such works being one of the very few powers which the latter did not claim for the Federal Government. Notwithstanding this agreement the subject was often canvassed between us in respect to the arguments advanced, from time to time, in Congress, by others. On one of those occasions, he told me that on Gouverneur Morris's visit to the city of New York, soon after his return from the Federal Convention, he was congratulated by his friends on the circumstance that the Convention had succeeded in agreeing upon a Constitution which would realize the great object for which it had been convened, and that Morris promptly and, as Mr. King seemed to have understood it, significantly replied—"That will depend upon the construction that is given to it!" Mr. King did not state any inference he had drawn from the remark and seemed to me indisposed to prolong the conversation upon that point, and, knowing his habitual reserve in speaking of his old associates, I yielded to what I believed to be his wish not to be questioned, although I was at the moment strongly impressed by the observation. I referred to it afterwards in a speech I made in the Senate upon the powers of the Government, which was extensively published. At a subsequent period this ready answer of Morris would not have attracted notice; but spoken before even a single officer had been elected to carry the Constitution into effect, and of course before any question as to its construction had arisen, it was to my mind, and, as I believe, to the mind of Mr. King, evidence of a foregone conclusion to claim under that instrument powers not anticipated by the great body of those who framed it, or by those who had given it vitality by their approval. The facts that this reply had been so long remembered by Mr. King, a prominent and sagacious member of the Convention, and repeated under the circumstances I have detailed, were calculated to create such an impression. It gave, at least to my view, a decided direction in respect to the source from whence the doctrine of implied powers originated. I had found it difficult, with the opinions I had formed of Hamilton's character and dispositions, to reconcile the first suggestion of such a policy with them. I could believe that, in accordance with the principles which he avowed, he might be not unwilling to carry it into effect when it was suggested to him; but that, after advancing his opinions in a manner so frank and fearless, notwithstanding their well understood unpopularity, he should be found mousing over the words of the Constitution for equivocal expressions, containing a meaning intelligible only to the initiated, and by such methods preparing to spring a trap upon the people, was, it appeared to me, utterly foreign to his nature and habits. Neither was I disposed to believe that he would, at the very moment of signing, have denounced the Constitution as inadequate to the purposes of good government if he had then regarded it as possessing the very extensive powers he afterwards assisted in claiming for it, nor would he have subsequently declared it to be "a frail and worthless fabric." His complaint upon the latter occasion would have been against the construction that had been given to it, and not against the Constitution itself.

Morris, whose ability no one will question, was a constant attendant upon the Convention, took an active part in its proceedings throughout, was on most of its committees and the working-man of the last,—the duties of which were "to revise the style of, and arrange the articles which had been agreed to by the House,"—and the second and last draft of the Constitution was reported by him. But it is now comparatively unimportant with whom the latitudinarian construction of the Constitution, which has caused so much strife and contention and so little advantage to any person, party, or interest, originated. Hamilton, at least, adopted it as the corner-stone of his constitutional views, and, by his genius and the weight of his official influence, gave it a temporary success.

For reasons which will appear in the sequel, I will confine myself to a simple statement of the questions that were raised in respect to the construction of the Constitution, and a few illustrations of their character. That instrument, as has already been stated, contained a specific enumeration of the powers given to Congress, and the reasons have been also described for this particularity. The measures to which they referred were known by appropriate and distinct names, and applied to definite and well understood objects, and they have been ever since known and understood as they were then. This enumeration of the powers of Congress was followed, as we have seen, by a grant of authority to that body to "make all laws which shall be necessary and proper for carrying into execution the foregoing powers."

Under this winding-up clause of the Constitutional enumeration of the powers of Congress, the true sense and object of which was so easy to be understood, Hamilton claimed for that body the power of authorizing by law measures of a substantive character, described by well understood names, altogether different from those employed in the enumeration, such as the incorporation of banks, &c., &c., if Congress should declare itself of the opinion that the execution of the enumerated powers would be materially aided by any such measures, reserving to Congress the right of deciding whether the proposed measure would be sufficiently useful to create the "propriety and necessity" required by the Constitution, and placing in its breast alone the final decision of every such question.

The objects of the Constitution, as set forth in its preamble, were "to form a more perfect union, establish justice, insure domestic tranquillity, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity." The first of the powers of Congress, contained in the enumeration of them in the Constitution, is in the following words: