Memoir, Correspondence, and Miscellanies, From the Papers of Thomas Jefferson, Volume 4

by Thomas Jefferson

February the 28th. Knox, E. Randolph, and myself met at Knox’s, where Hamilton was also to have met, to consider the time, manner, and place of the President’s swearing in. Hamilton had been there before, and had left his opinion with Knox; to wit, that the President should ask a judge to attend him in his own house to administer the oath, in the presence of the Heads of departments; which oath should be deposited in the Secretary of State’s office. I concurred in this opinion. Randolph was for the President’s going to the Senate chamber to take the oath, attended by the marshal of the United States, who should then make proclamation, &c. Knox was for this, and for adding the House of Representatives to the presence, as they would not yet be departed. Our individual opinions were written, to be communicated to the President, out of which he might form one. In the course of our conversation, Knox, stickling for parade, got into great warmth, and swore that our government must either be entirely new modeled, or it would be knocked to pieces in less than ten years; and that, as it is at present, he would not give a copper for it; that it is the President’s character, and not the written constitution which keeps it together.

Same day. Conversation with Lear. He expressed the strongest confidence that republicanism was the universal creed of America, except of a very few; that a republican administration must of necessity immediately overbear the contrary faction; said that he had seen with extreme regret, that a number of gentlemen had for a long time been endeavoring to instil into the President, that the noise against the administration of the government was that of a little faction, which would soon be silent, and which was detested by the people, who were contented and prosperous: that this very party, however, began to see their error, and that the sense of America was bursting forth to their conviction.

March the 2nd, 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 fulness of demonstration. There were not more than three or four who voted otherwise than had been expected.

March the 30th, 1793. At our meeting at the President’s, February the 25th, in discussing the question, whether we should furnish to France the three millions of livres desired, Hamilton, in speaking on the subject, used this expression; ‘When Mr. Genet arrives, whether we shall receive him or not, will then be a question for discussion’; which expression I did not recollect till E. Randolph reminded me of it a few days after. Therefore, on the 20th instant, as the President was shortly to set out for Mount Vernon, I observed to him, that as Genet might arrive in his absence, I wished to know beforehand how I should treat him, whether as a person who would or would not be received. He said, he could see no ground of doubt, but that he ought to be received. On the 24th, he asked E. Randolph’s opinion on the subject, saying, he had consulted Colonel Hamilton thereon, who went into lengthy considerations of doubt and difficulty, and viewing it as a very unfortunate thing, that the President should have the decision of so critical a point forced on him; but in conclusion, said, since he was brought into that situation, he did not see but that he must receive Mr. Genet. Randolph told the President, he was clear he should be received, and the President said, he had never had any doubt on the subject in his mind. Afterwards on the same day, he spoke to me again on it, and said, Mr. Genet should unquestionably be received; but he thought not with too much warmth or Cordiality, so only as to be satisfactory to him. I wondered at first at this restriction: but when Randolph afterwards communicated to me his conversation of the 24th, I became satisfied it was a small sacrifice to the opinion of Hamilton.

March the 31st. Mr. Beckley tells me, that the merchants’ bonds for duties on six months’ credit became due the 1st instant, to a very great amount; that Hamilton went to the bank on that day, and directed the bank to discount for those merchants all their bonds at thirty days, and that he would have the collectors credited for the money at the treasury. Hence, the treasury lumping its receipts by the month in its printed accounts, these sums will be considered by the public as only received on the last day; consequently, the bank makes the month’s interest out of it. Beckley had this from a merchant, who had a bond discounted, and who supposes a million of dollars were discounted at the bank here. Mr. Brown got the same information from another merchant, who supposed only six hundred thousand dollars discounted here. But they suppose the same orders went to all the branch banks to a great amount.

Eodem die. Mr. Brown tells me he has it from a merchant here, that during the last winter, the directors of the bank ordered the freest discounts. Every man could obtain it. Money being so flush, the six per cents run up to twenty-one and twenty-two shillings. Then the directors sold out their private stocks. When the discounted notes were becoming due, they stopped discounts, and not a dollar was to be had. This reduced six per cents to eighteen shillings and three pence; then the same directors bought in again.

April the 7th, 1793. Mr. Lear called on me, and introduced of himself a conversation on the affairs of the United States. He laughed at the cry of prosperity, and the deriving it from the establishment of the treasury: he said, that, so far from giving in to this opinion, and that we were paying off our national debt, he was clear the debt was growing on us: that he had lately expressed this opinion to the President, who appeared much astonished at it. I told him I had given the same hint to the President last summer, and lately again had suggested, that we were even depending for the daily subsistence of government on borrowed money. He said, that was certain, and was the only way of accounting for what was become of the money drawn over from Holland to this country. He regretted that the President was not in the way of hearing full information, declared he communicated to him every thing he could learn himself; that the men who vaunted the present government so much on some occasions, were the very men who at other times declared it was a poor thing, and such a one as could not stand, and he was sensible they only esteemed it as a stepping-stone to something else, and had availed themselves of the first moments of the enthusiasm in favor of it, to pervert its principles and make of it what they wanted: and that though they raised the cry of anti-federalism against those who censured the mode of administration, yet he was satisfied, whenever it should come to be tried, that the very men whom they called anti-federalists, were the men who would save the government, and he looked to the next Congress for much rectification.

April the 18th. The President sends a set of questions to be considered, and calls a meeting. Though those sent me were in his own hand-writing, yet it was palpable from the style, their ingenious tissue and suite, that they were not the President’s, that they were raised upon a prepared chain of argument, in short, that the language was Hamilton’s, and the doubts his alone. They led to a declaration of the executive, that our treaty with France is void. E. Randolph, the next day, told me that the day before the date of these questions, Hamilton went with him through the whole chain of reasoning of which these questions are the skeleton, and that he recognised them the moment he saw them.

We met. The first question, whether we should receive the French minister, Genet, was proposed, and we agreed unanimously that he should be received; Hamilton, at the same time, expressing his great regret that any accident had happened, which should oblige us to recognise the government. The next question was, whether he should be received absolutely, or with qualifications. Here Hamilton took up the whole subject, and went through it in the order in which the questions sketch it. See the chain of his reasoning in my opinion of April the 28th. Knox subscribed at once to Hamilton’s opinion that we ought to declare the treaty void, acknowledging, at the same time, like a fool as he is, that he knew nothing about it. I was clear it remained valid. Randolph declared himself of the same opinion, but on Hamilton’s undertaking to present to him the authority in Vattel (which we had not present), and to prove to him, that if the authority was admitted, the treaty might be declared void, Randolph agreed to take further time to consider. It was adjourned. We determined unanimously the last question, that Congress should not be called. There having been an intimation by Randolph, that in so great a question he should choose to give a written opinion, and this being approved by the President, I gave in mine April the 28th. Hamilton gave in his. I believe Knox’s was never thought worth offering or asking for. Randolph gave his May the 6th, concurring with mine. The President told me, the same day, he had never had a doubt about the validity of the treaty; but that since a question had been suggested, he thought it ought to be considered: that this being done, I might now issue passports to sea-vessels in the form prescribed by the French treaty. I had for a week past only issued the Dutch form; to have issued the French, would have been presupposing the treaty to be in existence. The President suggested, that he thought it would be as well that nothing should be said of such a question having been under consideration. Written May the 6th.

May the 6th, 1793. When the question was, whether the proclamation of April the 22nd should be issued, Randolph observed, that there should be a letter written by me to the ministers of the belligerent powers, to declare that it should not be taken as conclusive evidence against our citizens in foreign courts of admiralty, for contraband goods. Knox suddenly adopted the opinion before Hamilton delivered his. Hamilton opposed it pretty strongly. I thought it an indifferent thing, but rather approved Randolph’s opinion. The President was against it; but observed that, as there were three for it, it should go. This was the first instance I had seen of an opportunity to decide by a mere majority, including his own vote.