Thus prepossessed and premonished, Jefferson looked round him with an apprehensive eye, and appears to have seen something to startle him at every turn. We give, from his private correspondence, his own account of his impressions. "Being fresh from the French revolution, while in its first and pure stage, and, consequently, somewhat whetted up in my own republican principles, I found a state of things in the general society of the place, which I could not have supposed possible. The revolution I had left, and that we had just gone through in the recent change of our own government, being the common topics of conversation, I was astonished to find the general prevalence of monarchial sentiments, insomuch, that in maintaining those of republicanism, I had always the whole company on my hands, never scarcely finding among them a single co-advocate in that argument, unless some old member of Congress happened to be present. The furthest that any one would go in support of the republican features of our new government, would be to say, 'the present constitution is well as a beginning, and may be allowed a fair trial, but it is, in fact, only a stepping stone to something better.'"
Alexander Hamilton, though pledged and sincerely disposed to support the republican form, with regard to our country, preferred theoretically, a monarchial form; and, being frank of speech, and, as Gouverneur Morris writes, "prone to mount his hobby," may have spoken openly in favor of that form as suitable to France; and as his admirers took their creed from him, opinions of the kind may have been uttered pretty freely at dinner-tables. These, however, which so much surprised and shocked Mr. Jefferson, were probably merely speculative opinions, broached in unguarded hours, with no sinister design, by men who had no thought of paving the way for a monarchy. They made, however, a deep impression on his apprehensive mind, which sank deeper and deeper until it became a fixed opinion with him, that there was the desire and aim of a large party, of which Hamilton was the leader, to give a regal form to the government.
The question of the assumption of the State debts was resumed in Congress on the 29th of March, on a motion to commit, which was carried by a majority of two; the five members from North Carolina (now a State of the Union) who were strongly opposed to assumption, having taken their seats and reversed the position of parties on the question. An angry and intemperate discussion was revived, much to the chagrin of Washington, who was concerned for the dignity of Congress; and who considered the assumption of the State debts, under proper restrictions and scrutiny into accounts, to be just and reasonable. On the 12th of April, when the question to commit was taken, there was a majority of two against the assumption.
On the 26th the House was discharged, for the present, from proceeding on so much of the report as related to the assumption. Jefferson, who had arrived in New York in the midst of what he terms "this bitter and angry contest," had taken no concern in it; being, as he says, "a stranger to the ground, a stranger to the actors in it, so long absent as to have lost all familiarity with the subject, and to be unaware of its object." We give his own account of an earnest effort made by Hamilton, who, he says, was "in despair," to resuscitate, through his influence, his almost hopeless project. "As I was going to the President's one day, I met him [Hamilton] in the street. He walked me backwards and forwards before the President's door for half an hour. He painted pathetically the temper into which the legislature had been wrought; the disgust of those who were called the creditor States; the danger of the secession of their members, and the separation of the States. He observed that the members of the administration ought to act in concert; that though this question was not of my department, yet a common duty should make it a common concern; that the President was the centre on which all administrative questions ultimately rested, and that all of us should rally around him, and support, with joint efforts, measures approved by him.... I proposed to him to dine with me the next day, and I would invite another friend or two, bring them into conference together, and I thought it impossible that reasonable men, consulting together, coolly, could fail, by some mutual sacrifices of opinion, to form a compromise which was to save the Union. The discussion took place. I could take no part in it but an exhortatory one, because I was a stranger to the circumstances which should govern it. But it was finally agreed, that whatever importance had been attached to the rejection of this proposition, the preservation of the Union and of concord among the States, was more important, and that, therefore, it would be better that the vote of rejection should be rescinded, to effect which some members should change their votes. But it was observed that this pill would be peculiarly bitter to the Southern States, and that some concomitant measure should be adopted to sweeten it a little to them. There had before been projects to fix the seat of government either at Philadelphia or at Georgetown on the Potomac; and it was thought that, by giving it to Philadelphia for ten years, and to Georgetown permanently afterwards, this might, as an anodyne, calm in some degree the ferment which might be excited by the other measure alone. So two of the Potomac members (White and Lee, but White with a revulsion of stomach almost convulsive) agreed to change their votes, and Hamilton undertook to carry the other point. In doing this, the influence he had established over the eastern members, with the agency of Robert Morris with those of the Middle States, effected his side of the engagement."
The decision of Congress was ultimately in favor of assumption, though the form in which it finally passed differed somewhat from the proposition of Hamilton. A specific sum was assumed ($21,500,000), and this was distributed among the States in specific portions. Thus modified, it passed the Senate, July 22d, by the close vote of fourteen to twelve; and the House, July 24th, by thirty-four to twenty-eight.
The question about the permanent seat of government, which, from the variety of contending interests, had been equally a subject of violent contest, was now compromised. It was agreed that Congress should continue for ten years to hold its sessions at Philadelphia; during which time the public buildings should be erected at some place on the Potomac, to which the government should remove at the expiration of the above term. A territory, ten miles square, selected for the purpose on the confines of Maryland and Virginia, was ceded by those States to the United States, and subsequently designated as the District of Columbia.
One of the last acts of the Executive during this session was the conclusion of a treaty of peace and friendship with the Creek nation of Indians, represented at New York by Mr. M'Gillivray, and thirty of the chiefs and head men. By this treaty (signed August 7th), an extensive territory, claimed by Georgia, was relinquished, greatly to the discontent of that State; being considered by it an unjustifiable abandonment of its rights and interests.
Congress adjourned on the 12th of August. Jefferson, commenting on the discord that had prevailed for a time among the members, observes, that in the latter part of the session, they had reacquired the harmony which had always distinguished their proceedings before the introduction of the two disagreeable subjects of the Assumption and the Residence: "these," said he, "really threatened, at one time, a separation of the legislature sine die."
Washington, too, however grieved and disappointed he may have been by the dissensions which had prevailed in Congress, consoled himself by the fancied harmony of his cabinet. Singularly free himself from all jealousy of the talents and popularity of others, and solely actuated by zeal for the public good, he had sought the ablest men to assist him in his arduous task, and supposed them influenced by the same unselfish spirit. Yet, at this very moment, a lurking spirit of rivalry between Jefferson and Hamilton was already existing and daily gaining strength. Jefferson, who, as we have intimated, already considered Hamilton a monarchist in his principles, regarded all his financial schemes with suspicion, as intended to strengthen the influence of the treasury and make its chief the master of every vote in the legislature, "which might give to the government the direction suited to his political views." Under these impressions, Jefferson looked back with an angry and resentful eye, to the manner in which Hamilton had procured his aid in effecting the measure of assumption. He now regarded it as a finesse by which he had been entrapped, and stigmatized the measure itself as a "fiscal manoeuvre, to which he had most ignorantly and innocently been made to hold the candle."
Frequent depredations had of late been made on our frontier settlements by what Washington termed "certain banditti of Indians" from the north-west side of the Ohio. Some of our people had been massacred and others carried into deplorable captivity. The Indians of the Wabash and the Miami rivers, who were the present aggressors, were numerous, warlike, and not deficient in discipline.