Inquiry Into the Origin and Course of Political Parties in the United States

by Martin Van Buren

Strongly excited by the first appearance of the project at the head of Hamilton's programme, as well described by Madison in his interesting statement to Mr. Trist, the old Republicans in and out of Congress, with Jefferson as their adviser and at their head, rallied promptly in earnest and unyielding opposition to its consummation. Overborne by a large majority in the first Congress, devoted as it was to Hamilton and his measures, they could not defeat the bill for its establishment, and were obliged to content themselves in the first instance with efforts to expose its objectionable features to the people, in the hope of rendering it too odious to be persisted in. They also resorted, as they often afterwards did on similar occasions, to the State legislatures for advice and coöperation. That of Virginia, the President's native State, as well as the place of his residence, denounced the scheme very soon after its introduction, in resolutions of much power, touching the subject upon the points in respect to which it was most exceptionable. Its opponents in Congress also kept a watchful eye upon the steps taken by the Secretary towards its execution, and followed every important movement by calls for information and by pertinent resolutions. These calls were generally upon the Secretary, occasionally on the President himself. As early as 1792, the Republicans caused the introduction of, and gave efficient support to, a resolution that "measures ought to be taken for the redemption of so much of the public debt as by the act making provision for the debts of the United States, they have the right to redeem." In this resolution, which was adopted by the House, a provision was inserted, against the votes of the old Republicans, to direct the Secretary of the Treasury to prepare the plan for the contemplated redemption. Those who were opposed to its preparation by that officer desired to have it done by a committee, and apprehended obstacles on his part to an efficient prosecution of the reform they supported.

The resolution, though not expressly such in its terms, was obviously designed as a side-blow at the funding system. That the Secretary so regarded it was sufficiently apparent from the graceful notice, in his report, of the circumstance that "the House had predetermined the question in regard to the expediency of the proposed redemption, and only submitted to his consideration the best mode of carrying it into effect." He then proceeded to state the different ways in which the object in view might be accomplished, designated that which he thought most expedient, pointed out the increased burdens on the people it would require, and specified the taxes the imposition of which he thought would be necessary. His report was drawn up with his accustomed skill and ability, but the measure was no further prosecuted at that time.

The President was subsequently called upon, at the instance of the Republicans, for copies of the commissions and instructions under which Hamilton had borrowed some twelve millions of dollars in Europe in virtue of a provision of the act establishing the funding system, and a call was at the same time made upon Hamilton for an account of the manner in which the money had been applied. These calls brought from the President copies of the commission and instructions, the latter of which were very precise and in strict conformity, in every respect, to the law, and from Hamilton an elaborate report, drawn with a degree of care and power unusual even with him. He appears to have anticipated a storm, and to have prepared himself for every contingency, as far as his conduct could be sustained by the facts. Those who derive pleasure from the intellectual efforts of great minds, however remote the occasion that called them forth, will not begrudge the time spent in reading his report.

A series of resolutions introduced into the House by Giles of Virginia, charged the Secretary with having violated both the law and the President's instructions, by the manner in which he had executed the authority confided to him. These resolutions, after a long and animated debate, were thrown out by strong votes, of the composition of which Mr. Jefferson undertakes to give an account in his annals. But no unprejudiced mind can read Madison's unanswerable speech, which will be found in the first volume of "Benton's Abridgment of the Debates of Congress," p. 431, without being convinced that the truth of both charges was established. He proves by the Secretary's own letters that on the very day of the receipt of the President's instructions he commenced arrangements, which he, notwithstanding, carried into effect, for an application of the funds diametrically opposite to that which the President had directed him to make.

Mr. Randall, in his "Life of Thomas Jefferson,"[39] has accidentally fallen into a singular mistake in saying that "Mr. Madison voted with the majority on every division" on that occasion, and on that assumption proceeds to show "that Jefferson put a less charitable construction on the motives of the majority," by giving the following entry in his "Ana": "March the 2d, 1793. See, in the papers of this date, Mr. Giles's Resolutions. He and one or two others were sanguine enough to believe that the palpableness of these resolutions rendered it impossible the House could reject them. Those who knew the composition of the House,—1. Of bank directors; 2. Holders of bank stock; 3. Stock-jobbers; 4. Blind devotees; 5. Ignorant persons who did not comprehend them; 6. Lazy and good-humored persons, who comprehended and acknowledged them, yet were too lazy to examine or unwilling to pronounce censure,—the persons who knew these characters foresaw that the three first descriptions making one third of the House, the three latter would make one half of the residue; and of course that they would be rejected by a majority of two to one. But they thought that even this rejection would do good, by showing the public the desperate and abandoned dispositions with which their affairs were conducted. The resolutions were proposed, and nothing spared to present them in the fullness of demonstration. There were not more than three or four who voted otherwise than had been expected."

Mr. Madison voted with the minority on every division, and so far was he from acting otherwise that William Smith, of South Carolina, the devoted friend of Hamilton, charged him with saying after the vote that "the opinion of the House on the preceding resolutions would not change the truth of facts, and that the public would ultimately decide whether the Secretary's conduct was criminal or not."

The character of this debate and the open disregard of the President's instructions by the Secretary, which it established, were not likely to pass unheeded or even lightly regarded through the proud and sensitive mind of Washington.

Other circumstances may be referred to which show quite clearly that the latter was not at ease upon the subject of the finances. Among these is one of a very striking character, not known at the time, and only recently disclosed through the publication of the "Hamilton Papers" by order of Congress. I allude to the correspondence between him and Washington, to which I have before referred for another purpose, and which will be found in the fourth volume of "Hamilton's Works," commencing at page 510. The committee appointed by Congress to examine the state of the treasury preparatory to Hamilton's resignation, then expected but postponed for a season, were charged by that body to "inquire into the authorities, from the President to the Secretary of the Treasury, respecting the making and disbursing of the loans" which were the subject of the debate and proceedings above referred to. Hamilton thought the inquiry beyond the province of the committee, but wishing to be prepared, if they should decide otherwise, furnished the President with a statement of the facts, as he understood them to be, with a view to his approval. Washington indorsed on it a certificate which was very unsatisfactory to Hamilton, who thereupon addressed to him a long and earnest letter, in which he complained vehemently, and with the frankness and boldness natural to him, of not having been sustained by the President in a delicate and responsible part of his official duties in respect to the public debt. It does not appear that Washington made any reply to this extraordinary letter, or that he did anything further upon the subject which had called it forth.

Whilst the proceedings which led to the debate of which I have spoken were going on, a bill was introduced on the recommendation of the Secretary, for a second assumption of State debts, and authorizing a loan to be opened for that purpose. Notwithstanding strenuous efforts on the part of the Republican members to prevent its passage, the bill passed the House, but only by the casting vote of Mr. Speaker Trumbull. These circumstances were brought to the notice of the President by Jefferson, before the bill was acted upon by the Senate, and it was rejected by that body. He speaks in his "Ana" of the prevalent impression that the bill had been defeated by the interference of the President, through Lear, with Langdon, who till that time had gone steadily for the funding system but now opposed its extension. Jefferson says, "Beckley knows this."

But whatever may have been the state of feeling between these great men, arising out of the condition of the finances, or the course of the Secretary in respect to them, we have the best reasons for believing that there was a growing sentiment in the Federal party adverse to the expediency of keeping on foot the funding system. It soon began to lose the brilliant hues in which it had been clothed, at its first introduction, by the very imposing report of the Secretary. Our foreign creditors showed an unwillingness to subject their debts to its operation, and the means taken to find subjects to be embraced by its provisions could not fail to excite odium against the measure. The people were not a little predisposed to listen favorably to the charges that were made against it on the part of the Republicans, by the circumstances heretofore noticed that it was so close an imitation of the English system, and adopted upon the heel of the Revolution. The growing jealousy of the people, and consequent increase of public clamor against it, caused a wide-spread conviction through the Federal ranks that the entire success of the Republican party could only be prevented by its abandonment,—a conviction greatly strengthened and stimulated to action by the startling fact that, although the President had just been reëlected by the unanimous vote of the people, the country was convulsed by partisan rancors, for which there was no other apology than the measures of his administration, and the Confederacy which he came into power to cement was in imminent peril of disruption by their violence. Neither was this the worst nor the most humiliating view of the case. For the first time during our existence as an independent nation, even including the period of the proverbially weak government of the Confederation, our free institutions suffered the discredit of an open rebellion against the authority of the Federal Government springing up in the Quaker State, one of the oldest and best settled in the Confederacy and in which was established the seat of that Government, against the imposition of a tax always and everywhere odious, an "infernal tax," as Jefferson called it;—an insurrection of so much importance as to induce Washington to call into the field a force numerically larger than was ever concentrated at one place during the War of the Revolution, or ever organized in one body in the course of two wars through which the country has since passed, and nearly if not quite double that with which Scott fought his way through a hostile nation of eight millions, and entered the City of Mexico in triumph. No feature in the character of Washington has ever been disclosed which will allow us to believe for a moment that those scenes could have failed to disturb and agitate deeply his lofty and sensitive spirit. We have a fact, now for the first time, as far as I know or believe, revealed in Randall's "Life of Jefferson," which gives us some clue to the current of Washington's thoughts at that very critical period of his life. Hamilton, whose resignation was about to take effect, applied to have the time prolonged until after the impending insurrection had been suppressed, on the ground that as it was menaced in consequence of a measure of his Department, it would not be proper for him to leave his post until the crisis had terminated, and he had also asked for leave to attend the troops to the scene of the outbreak. Both of these applications had been readily agreed to by the President. In the midst of these movements, between the first Proclamation offering pardon to the rebels upon their return to duty and the second calling the troops into the field and announcing the intended application of military force, an express was sent to Mr. Jefferson with an invitation to him to resume his former place in Washington's cabinet. This fact is indisputable, for Jefferson's answer declining the invitation is published by Randall.