It would also increase an evil which was already sensibly felt. The State debts, when a.s.sumed by the continent, would, as that of the Union had already done, acc.u.mulate in large cities; and the dissatisfaction excited by the payment of taxes would be increased by perceiving that the money raised from the people flowed into the hands of a few individuals. Still greater mischief was to be apprehended. A great part of this additional debt would go into the hands of foreigners, and the United States would be heavily burdened to pay an interest which could not be expected to remain in the country.
The measure was unjust, because it was burdening those States which had taxed themselves highly to discharge the claims of their creditors with the debts of those which had not made the same exertions. It would delay the settlement of accounts between the individual States and the United States, and the supporters of the measure were openly charged with intending to defeat that settlement.
It was also said that in its execution the scheme would be found extremely embarra.s.sing, perhaps impracticable. The case of a partial accession to the measure by the creditors, a case which would probably occur, presented a difficulty for which no provision was made, and of which no solution had been given. Should the creditors in some States come into the system, and those in others refuse to change their security, the government would be involved in perplexities from which no means of extricating itself had been shown. Nor would it be practicable to discriminate between the debts contracted for general and for local objects.
In the course of the debate severe allusions were made to the conduct of particular States, and the opinions advanced in favor of the measure were ascribed to local interests.
In support of the a.s.sumption, the debts of the States were traced to their origin. America, it was said, had engaged in a war the object of which was equally interesting to every part of the Union. It was not the war of a particular State, but of the United States. It was not the liberty and independence of a part, but of the whole, for which they had contended, and which they had acquired. The cause was a common cause. As brethren, the American people had consented to hazard property and life in its defense. All the sums expended in the attainment of this great object, whatever might be the authority under which they were raised or appropriated, conduced to the same end. Troops were raised, and military stores purchased, before Congress a.s.sumed the command of the army or the control of the war. The ammunition which repulsed the enemy at Bunker"s Hill was purchased by Ma.s.sachusetts, and formed a part of the debt of that State.
Nothing could be more erroneous than the principle which had been a.s.sumed in argument, that the holders of securities issued by individual States were to be considered merely as State creditors, as if the debt had been contracted on account of the particular State. It was contracted on account of the Union, in that common cause in which all were equally interested.
From the complex nature of the political system which had been adopted in America, the war was, in a great measure, carried on through the agency of the State governments, and the debts were, in truth, the debts of the Union, for which the States had made themselves responsible.
Except the civil list, the whole State expenditure was in the prosecution of the war, and the State taxes had undeniably exceeded the provision for their civil list. The foundation for the several cla.s.ses of the debt was reviewed in detail, and it was affirmed to be proved from the review, and from the books in the public offices, that, in its origin, a great part of it, even in form, and the whole, in fact, was equitably due from the continent. The States individually possessing all the resources of the nation, became responsible to certain descriptions of the public creditors. But they were the agents of the continent in contracting the debt, and its distribution among them for payment arose from the division of political power which existed under the old confederation. A new arrangement of the system had taken place, and a power over the resources of the nation was conferred on the general government. With the funds the debt also ought to be a.s.sumed. This investigation of its origin demonstrated that the a.s.sumption was not the creation of a new debt, but the reacknowledgment of liability for an old one, the payment of which had devolved on those members of the system who, at the time, were alone capable of paying it. And thence was inferred not only the justice of the measure, but a complete refutation of the arguments drawn from the const.i.tution. If, in point of fact, the debt was in its origin continental and had been transferred to the States for greater facility of payment, there could be no const.i.tutional objection to restoring its original and real character.
The great powers of war, of taxation, and of borrowing money, which were vested in Congress to pay the debts and provide for the common defense and general welfare of the United States, comprised that in question.
There could be no more doubt of their right to charge themselves with the payment of a debt contracted in the past war, than to borrow money for the prosecution of a future war. The impolicy of leaving the public creditors to receive payment from different sources was also strongly pressed, and the jealousy which would exist between the creditors of the Union and of the States was considered as a powerful argument in favor of giving them one common interest. This jealousy, it was feared, might be carried so far as even to create an opposition to the laws of the Union.
If the State should provide for their creditors, the same sum of money must be collected from the people as would be required if the debt should be a.s.sumed, and it would probably be collected in a manner more burdensome than if one uniform system should be established. If all should not make such provision, it would be unjust to leave the soldier of one State unpaid, while the services of the man who fought by his side were amply compensated, and, after having a.s.sumed the funds, it would dishonor the general government to permit a creditor, for services rendered or property advanced for the continent, to remain unsatisfied, because his claim had been transferred to the State at a time when the State alone possessed the means of payment. By the injured and neglected creditor such an arrangement might justly be considered as a disreputable artifice.
Instead of delaying, it was believed to be a measure which would facilitate the settlement of accounts between the States. Its advocates declared that they did not entertain and never had entertained any wish to procrastinate a settlement. On the contrary it was greatly desired by them. They had themselves brought forward propositions for that purpose, and they invited their adversaries to a.s.sist in improving the plan which had been introduced.
The settlement between the States, it was said, either would or would not be made. Should it ever take place, it would remedy any inequalities which might grow out of the a.s.sumption. Should it never take place, the justice of the measure became the more apparent. That the burdens in support of a common war, which from various causes had devolved unequally on the States, ought to be apportioned among them, was a truth too clear to be controverted, and this, if the settlement should never be accomplished, could be effected only by the measure now proposed.
Indeed, in any event, it would be the only certain, as well as only eligible plan. For how were the debtor States to be compelled to pay the balances which should be found against them?
If the measure was recommended by considerations which rendered its ultimate adoption inevitable, the present was clearly preferable to any future time. It was desirable immediately to quiet the minds of the public creditors by a.s.suring them that justice would be done, to simplify the forms of public debt, and to put an end to that speculation which had been so much reprobated and which could be terminated only by giving the debt a real and permanent value.
That the a.s.sumption would impair the just influence of the States was controverted with great strength of argument. The diffusive representation in the State Legislatures, the intimate connection between the representative and his const.i.tuents, the influence of the State Legislatures over the members of one branch of the national Legislature, the nature of the powers exercise by the State governments, which perpetually presented them to the people in a point of view calculated to lay hold of the public affections, were guarantees that the States would retain their due weight in the political system and that a debt was not necessary to the solidity or duration of their power.
But the argument, it was said, proved too much. If a debt was now essential to the preservation of State authority it would always be so. It must therefore never be extinguished, but must be perpetuated in order to secure the existence of the State governments. If, for this purpose, it was indispensable that the expenses of the Revolutionary War should be borne by the States, it would not be less indispensable that the expenses of future wars should be borne in the same manner. Either the argument was unfounded or the const.i.tution was wrong, and the powers of the sword and the purse ought not to have been conferred on the government of the Union. Whatever speculative opinions might be entertained on this point, they were to administer the government according to the principles of the const.i.tution as it was framed. But, it was added, if so much power followed the a.s.sumption as the objection implies, is it not time to ask--is it safe to forbear a.s.suming? If the power is so dangerous it will be so when exercised by the States. If a.s.suming tends to consolidation, is the reverse, tending to disunion, a less weighty objection? If it is answered that the non-a.s.sumption will not necessarily tend to disunion, neither, it may be replied, does the a.s.sumption necessarily tend to consolidation.
It was not admitted that the a.s.sumption would tend to perpetuate the debt. It could not be presumed that the general government would be less willing than the local governments to discharge it; nor could it be presumed that the means were less attainable by the former than the latter.
It was not contended that a public debt was a public blessing. Whether a debt was to be preferred to no debt was not the question. The debt was already contracted, and the question so far as policy might be consulted, was, whether it was more for the public advantage to give it such a form as would render it applicable to the purposes of a circulating medium, or to leave it a mere subject of speculation, incapable of being employed to any useful purpose. The debt was admitted to be an evil, but it was an evil from which, if wisely modified, some benefit might be extracted, and which, in its present state, could have only a mischievous operation.
If the debt should be placed on adequate funds, its operation on public credit could not be pernicious; in its present precarious condition, there was much more to be apprehended in that respect.
To the objection that it would acc.u.mulate in large cities, it was answered it would be a moneyed capital, and would be held by those who chose to place money at interest, but by funding the debt the present possessors would be enabled to part with it at its nominal value, instead of selling it at its present current rate. If it should center in the hands of foreigners, the sooner it was appreciated to its proper standard, the greater quant.i.ty of specie would its transfer bring into the United States.
To the injustice of charging those States which had made great exertions for the payment of their debts with the burden properly belonging to those which had not made such exertions, it was answered that every State must be considered as having exerted itself to the utmost of its resources, and that if it could not or would not make provision for creditors to whom the Union was equitably bound, the argument in favor of an a.s.sumption was the stronger.
The arguments drawn from local interests were repelled and retorted, and a great degree of irritation was excited on both sides.
After a very animated discussion of several days, the question was taken, and the resolution was carried by a small majority. Soon after this decision, while the subject was pending before the House, the delegates from North Carolina took their seats, and changed the strength of parties. By a majority of two voices, the resolution was recommitted, and, after a long and ardent debate, was negatived by the same majority.
This proposition continued to be supported with a degree of earnestness which its opponents termed pertinacious, but not a single opinion was changed. It was brought forward in the new and less exceptionable form of a.s.suming specific sums from each State. Under this modification of the principle, the extraordinary contributions of particular States during the war, and their exertions since the peace, might be regarded, and the objections to the measure, drawn from the uncertainty of the sum to be a.s.sumed, would be removed. But these alterations produced no change of sentiment, and the bill was sent up to the Senate with a provision for those creditors only whose certificates of debt purported to be payable by the Union.
In this state of things the measure is understood to have derived aid from another, which was of a nature strongly to interest particular parts of the Union.
From the month of June, 1783, when Congress was driven from Philadelphia by the mutiny of a part of the Pennsylvania line, the necessity of selecting some place for a permanent residence, in which the government of the Union might exercise sufficient authority to protect itself from violence and insult, had been generally acknowledged. Scarcely any subject had occupied more time, or had more agitated the members of the former Congress than this.
In December, 1784, an ordinance was pa.s.sed for appointing commissioners to purchase land on the Delaware, in the neighborhood of its falls, and to erect thereon the necessary public buildings for the reception of Congress and the officers of government; but the southern interest had been sufficiently strong to arrest the execution of this ordinance by preventing an appropriation of funds, which required the a.s.sent of nine States. Under the existing government, this subject had received the early attention of Congress, and many different situations, from the Delaware to the Potomac inclusive, had been earnestly supported, but a majority of both houses had not concurred in favor of any one place.
With as little success, attempts had been made to change the temporary residence of Congress. Although New York was obviously too far to the east, so many conflicting interests were brought into operation whenever the subject was touched, that no motion designating a more central place could succeed. At length, a compact respecting the temporary and permanent seat of government was entered into between the friends of Philadelphia and the Potomac, stipulating that Congress should adjourn to and hold its sessions in Philadelphia for ten years, during which time buildings for the accommodation of the government should be erected at some place on the Potomac, to which the government should remove at the expiration of the term. This compact having united the representatives of Pennsylvania and Delaware with the friends of the Potomac, in favor both of the temporary and permanent residence which had been agreed on between them, a majority was produced in favor of the two situations, and a bill which was brought into the Senate in conformity with this previous arrangement, pa.s.sed both houses by small majorities. This act was immediately followed by an amendment to the bill then depending before the Senate for funding the debt of the Union. The amendment was similar in principle to that which had been unsuccessfully proposed in the House of Representatives. By its provisions, $21,500,000 of the State debts were a.s.sumed in specified proportions, and it was particularly enacted that no certificate should be received from a State creditor which could be "ascertained to have been issued for any purpose other than compensations and expenditures for services or supplies toward the prosecution of the late war and the defense of the United States, or of some part thereof, during the same."
When the question was taken in the House of Representatives on this amendment two members, representing districts on the Potomac, who, in all the previous stages of the business, had voted against the a.s.sumption, declared themselves in its favor, and thus the majority was changed. [2]
Thus was a measure carried which was supported and opposed with a degree of zeal and earnestness not often manifested, and which furnished presages, not to be mistaken, that the spirit with which the opposite opinions had been maintained, would not yield, contentedly, to the decision of a bare majority. This measure has const.i.tuted one of the great grounds of accusation against the first administration of the general government, and it is fair to acknowledge that though, in its progress, it derived no aid from the President, whose opinion remained in his own bosom, it received the full approbation of his judgment.
A bill at length pa.s.sed both houses, funding the debt upon principles which lessened considerably the weight of the public burdens and was entirely satisfactory to the public creditors. The proceeds of the sales of the lands lying in the western territory and, by a subsequent act of the same session, the surplus product of the revenue, after satisfying the appropriations which were charged upon it with the addition of $2,000,000, which the President was authorized to borrow at 5 per cent., const.i.tuted a sinking fund to be applied to the reduction of the debt.
The effect of this measure was great and rapid. The public paper suddenly rose and was for a short time above par. The immense wealth which individuals acquired by this unexpected appreciation could not be viewed with indifference. Those who partic.i.p.ated in its advantages regarded the author of a system to which they were so greatly indebted, with an enthusiasm of attachment to which scarcely any limits were a.s.signed. To many others this advent.i.tious collection of wealth in particular hands was a subject rather of chagrin than of pleasure, and the reputation which the success of his plans gave to the Secretary of the Treasury was not contemplated with unconcern. As if the debt had been created by the existing government, not by a war which gave liberty and independence to the United States, its being funded was ascribed by many, not to a sense of justice and to a liberal and enlightened policy, but to the desire of bestowing on the government an artificial strength, by the creation of a moneyed interest which would be subservient to its will. The effects produced by giving the debt a permanent value justified the predictions of those whose antic.i.p.ations had been most favorable. The sudden increase of moneyed capital derived from it invigorated commerce and gave a new stimulus to agriculture.
About this time there was a great and visible improvement in the circ.u.mstances of the people. Although the funding system was certainly not inoperative in producing this improvement it cannot be justly ascribed to any single cause. Progressive industry had gradually repaired the losses sustained by the war, and the influence of the const.i.tution on habits of thinking and acting, though silent, was considerable. In depriving the States of the power to impair the obligation of contracts or to make anything but gold and silver a tender in payment of debts, the conviction was impressed on that portion of society which had looked to the government for relief from embarra.s.sment that personal exertions alone could free them from difficulties, and an increased degree of industry and economy was the natural consequence of this opinion. [3]
Various other matters besides those already noticed, occupied the attention of Congress during this laborious session. The question of the slave trade was brought up by a pet.i.tion from the Quakers in Pennsylvania, Delaware, and other States, and the venerable Dr.
Franklin, as president of the Pennsylvania Society for Promoting the Abolition of Slavery, sent in a memorial, early in February, asking the serious attention of Congress to the importance and duty of extending to the negroes the blessings of freedom. The subject was discussed at great length and with much warmth on both sides, and toward the close of March it was resolved, "That Congress have no authority to interfere in the emanc.i.p.ation of slaves, or in the treatment of them within any of the States." Laws for the naturalization of aliens, after two years"
residence, for the patenting of useful inventions, and for securing to authors the copyright of their works; and others, regulating the mercantile marine of the Union, in respect to the seamen engaged in it; and forming a groundwork for a criminal code; for the ordering of what was called "the military establishment," only 1,216 rank and file; and for arranging the means of intercourse with the Indians in respect to trade and the acquisition of their hunting-grounds, and with European governments for the larger commerce which required the superintendence of resident ministers--these were duly considered and framed. Much other business was done, such as voting for the public service, under the heads of the civil list, pensions for revolutionary services, the military establishment, lighthouses, emba.s.sies, and outstanding debts, the moderate sum of about $725,000.
Both houses, having returned thanks to the corporation of the city of New York, "for the elegant and convenient accommodations furnished the Congress of the United States," adjourned on the 12th of August (1790), to meet again in December, in the city of Philadelphia.
Washington"s old and valued friend, Dr. Franklin, after painful and protracted sufferings, closed a life of four-score and four years on the 17th of April, 1790. He was buried in the cemetery of Christ Church, Philadelphia, and his funeral was attended by more than 20,000 of his fellow-citizens. Congress resolved to wear the customary badge of mourning for one month, "as a mark of veneration due to the memory of a citizen, whose native genius was not more an ornament to human nature than his various exertions of it have been precious to science, to freedom, and to his country." In the National a.s.sembly of France, Mirabeau eloquently dilated in praise of the ill.u.s.trious deceased, and Lafayette seconded the motion for a decree, ordering the members to wear the usual badge of mourning for three days, and there was not a land blessed with the light of civilization which did not lament his death and pour forth expressions of sorrow for the loss which not only America, but the world had sustained.
An act was pa.s.sed by Congress to accept the cession of the claims of the State of North Carolina, to a certain district of western territory, and on the 20th of May, provision was made for its government, under the t.i.tle of "The Territory of the United States south of the river Ohio."
On the 29th of May, 1790, Rhode Island, having become somewhat more alive to her true interests and to the ill results which must certainly follow her exclusion from the Union, adopted the const.i.tution and cast in her lot with the sister States for the great future which was opening before them all.
A treaty of peace was concluded in August of this year with the Creek Indians which restored tranquility to the people of Georgia. The pacific overtures made to the Indians of the Wabash and the Miamis had not been equally successful. The western frontiers were still exposed to their incursions, and there was much reason to apprehend that the people of Kentucky and of the western counties of the middle States could only be relieved from the horrors of savage warfare by an exertion of the military strength of the Union. In the opinion of the President, the emergency required the immediate employment of a force competent to the object and which should carry terror and destruction into the heart of the hostile settlements. The people of the West, however, declared their opinion in favor of desultory military expeditions, and Congress indulged their wishes. The desire of the executive for a military establishment equal to the exigency was not regarded and the distresses of the frontier inhabitants therefore still continued.
The conduct of Spain in relation to the disputed boundary, and its pretensions to the navigation of the Mississippi, was such as to give ground to fear that its dispositions toward the United States were unfriendly. Between the United States and England the nonexecution of several articles of the treaty of peace still furnished matter for reciprocal crimination which there was the more difficulty in removing because there was no diplomatic intercourse maintained between them.
Under the old government, Mr. Adams" mission had been treated with neglect, and the new administration was not disposed to subject itself to a similar mark of disrespect. Mr. Gouverneur Morris was instructed, as an informal agent to the British government, to sound its views respecting amicable and permanent arrangements of the matters in dispute. But Mr. Morris remarked, "that there never was, perhaps, a moment in which this country (Britain) felt herself greater, and, consequently, it is the most unfavorable moment to obtain advantageous terms from her in any bargain." He conducted his mission with ability and address, but was unable to bring it to a satisfactory conclusion.
The communications laid before the American government at the same time by Major Beckwith, an English gentlemen, who had come in an informal manner to learn the dispositions of the American government towards England and Spain, between which a rupture was expected, gave Washington an insight of the object of the delays which had been practiced with Mr.
Morris. He was persuaded that a disposition existed in the cabinet of London to retain things in their actual situation until the intentions of the American government should be ascertained with respect to the war supposed to be approaching. If America would make a common cause with Great Britain against Spain, the way would be smoothed to the attainment of all their objects, but if America should incline toward Spain, no adjustment of the points of difference between the two nations would be made. He therefore determined to hold himself free to pursue without reproach, in the expected war, such a course as the interest and honor of the United States might dictate. The want of official authenticity in the communications of Mr. Beckwith was, therefore, signified to that gentleman as a reason for reserve on the part of the government and the powers given to Mr. Morris were withdrawn. It was determined that things should remain in their actual situation until a change of circ.u.mstances should require a change of conduct. Scarcely had this resolution been adopted when the dispute between Britain and Spain was adjusted, and thus both the fear of inconveniences, and the hope of advantages which might result to America from war between the two powers, were terminated.
By his incessant application to public business and the consequent change of active for sedentary habits, the const.i.tution of the President seemed much impaired and during the second session of Congress he had, for the second time since entering upon the duties of his office, been attacked by a severe disease, which reduced him to the brink of the grave. Exercise, and a temporary relief from the cares of office, being essential to the restoration of his health, he determined for the short interval afforded by the recess of the Legislature to retire from the fatigues of public life to the tranquil shades of Mount Vernon.
Previously, however, he made a visit to Rhode Island, which, not having been a member of the Union at the time of his late tour through New England, had not been visited by him at that time.
His final departure from New York was not less affecting than his arrival had been, when he came to a.s.sume the reins of government. "It was always his habit," says Custis in his "Recollections," "to endeavor to avoid the manifestations of affection and grat.i.tude that met him everywhere. He strove in vain--he was closely watched and the people would have their way. He wished to slip off un.o.bserved from New York and thus steal a march upon his old companions in arms. But there were too many of the dear glorious old veterans of the Revolution at that time of day in and near New York to render such an escape possible.
"The baggage had all been packed up; the horses, carriages, and servants ordered to be over the ferry to Paulus Hook by daybreak and nothing was wanting for departure but the dawn. The lights were yet burning, when the President came into the room where his family were a.s.sembled, evidently much pleased in the belief that all was right, when, immediately under the windows, the band of the artillery struck up Washington"s March. "There," he exclaimed, "it"s all over, we are found out. Well, well, they must have their own way." New York soon after appeared as if taken by storm--troops and persons of all descriptions hurrying down Broadway toward the place of embarkation, all anxious to take a last look on him whom so many could never expect to see again.
"The embarkation was delayed until all the complimentary arrangements were completed. The President, after taking leave of many dear and cherished friends, and many an old companion in arms, stepped into the barge that was to convey him from New York forever. The c.o.xswain gave the word "let fall;" the spray from the oars sparkled in the morning sunbeams; the bowman shoved off from the pier, and, as the barge swung round to the tide, Washington rose, uncovered, in the stern, to bid adieu to the ma.s.ses a.s.sembled on the sh.o.r.e; he waved his hat, and, in a voice tremulous from emotion, p.r.o.nounced--Farewell. It may be supposed that Major Bauman, who commanded the artillery on this interesting occasion, who was first captain of Lamb"s regiment, and a favorite officer of the war of the Revolution, would, when about to pay his last respects to his beloved commander, load his pieces with something more than mere blank cartridges. But ah! the thunders of the cannon were completely hushed when the mighty shout of the people arose that responded to the farewell of Washington. Pure from the heart it came, right up to Heaven it went, to call down a blessing upon the Father of his Country.
"The barge had scarcely gained the middle of the Hudson when the trumpets were heard at Paulus Hook, where the Governor and the chivalry of Jersey were in waiting to welcome the chief to those well-remembered sh.o.r.es. Escorts of cavalry relieved each other throughout the whole route up to the Pennsylvania line; every village, and even hamlet, turned out its population to greet with cordial welcome the man upon whom all eyes were fixed and in whom all hearts rejoiced.
"What must have been the recollections that crowded on the mind of Washington during this triumphant progress? Newark, Brunswick, Princeton, Trenton! What a contrast between the glorious burst of sunshine that now illumined and made glad everything around these memorable spots, with the gloomy and desolate remembrances of "76! Then his country"s champion, with the wreck of a shattered host, was flying before a victorious and well-appointed foe, while all around him was shrouded in the darkness of despair; now, in his glorious progress over the self-same route, his firm footstep presses upon the soil of an infant empire, reposing in the joys of peace, independence, and happiness.
"Among the many who swelled his triumph, the most endeared to the heart of the chief were the old a.s.sociates of his toils, his fortunes, and his fame. Many of the Revolutionary veterans were living in 1790, and, by their presence, gave a dignified tone and character to all public a.s.semblages; and when you saw a peculiarly fine-looking soldier in those old days, and would ask: "To what corps of the American army did you belong?" drawing himself up to his full height, with a martial air, and back of the hand thrown up to his forehead, the veteran would reply: "Life Guard, your honor."
"And proud and happy were these veterans in again beholding their own good Lady Washington. Greatly was she beloved in the army. Her many intercessions with the chief for the pardon of offenders--her kindness to the sick and wounded--all caused her annual arrival in camp to be hailed as an event that would serve to dissipate the gloom of the winter quarters.