Union and Democracy

sipation and debt into which they had precipitated themselves at the close of the war. Economy and industry are evidently gaining ground." There is, indeed, abundant evidence that t

respect for orders in council. At all events, by hook or crook, American farm products and lumber found their way to British planters as well as to their French competitors. But something more than the resumption of the West India traffic was needed to restore prosperity. Necessity drove American sea captains to longer voyages and larger ventures. American

uring cotton cloths, hats, and "all articles in leather," while Massachusetts was making cordage, duck, and glass. "The number of shoes made in one town, and nails in another, is incredible," wrote Washington. When

its of a decade were not so readily unlearned. To the amusement of ill-wishers, barely a score of Congressmen appeared in the city; and the carpenters were still at work remodeling the old City Hall into a fitting habi

e great personal influence of Washington was needed, indeed, to give dignity to the new office. While messengers were hastening to inform Washington and Adams of their election, the members of Congress had ample opportunities to look each other over. If they were not well known to each other, they were at least co

esident was consummated. Stepping from the Senate chamber upon the balcony, Washington looked out upon the crowds which thronged Wall Street. The Chancellor of New York ad

people. He moved that they be struck out. Vice-President John Adams remonstrated mildly; he saw no objection to borrowing the practices of a government under which we had lived so long and happily. Senator Maclay was on his feet at once with the declaration that the sentiments of the people had undergone a change adverse to royal government. Such a phrase on the minutes of the Senate would immediately be repres

n the least difficulty," such as spirituous liquors, molasses, wines, tea, coffee, cocoa, pepper, and sugar. But almost at once the idea was broached that indirect aid should be given to certain industries. The clash of opposing sectional interests appears even in this first debate. In the end Madison's simple revenue measure was set aside. Specific duties were levied on more than thirty articles, and ad valorem duties ranging from five to fifteen per cent on all others. Revenue

sury. Bills to establish these departments were at once framed and favorably considered, but exception was taken to the provisions making the heads of these departments, who were appointed by the President and Senate, removable by the President alone. It was finally agreed to assume th

provement and management of the revenue, and the support of the public credit." "If we authorize him to prepare and report plans," argued Tucker, of Virginia, voicing that fear of executive authority which was then instinctive, "it will create an interference of the executive with the legislative powers; it will abridge the particular privilege of this House.

rict courts, each with a single judge; and for three circuit courts, each of which was to consist of two justices of the Supreme Court and a district judge. Lengthy provisions in the act carefully delimited the jurisdiction of these courts, and laid down the modes of procedure and practice in them. Of great importance was the twenty-fifth section, which provided for taking cases on appeal to the Supreme Court from the lower federal and state courts. The words of the act, by a fair implication, would seem to confer upon the Supreme Court the power to review the decision of a state court holding an act of the United States unconstitutional. It would seem to follow logically that the Supreme Court might do also directly what it might do indirectly-declare an act of

the first characters of the union" into the judiciary, particularly those who had served in the state courts and commanded public confidence. His choice for Chief Justice fell upon John Jay. Rutledge, of South Carolina, Wilson, of Pennsylvania, Cushing, of Massachusetts, Harrison, of Maryland, and Blair, of Virginia, were first named as Associate Justices. Washington chose h

such Madison replied cogently that the amendments which his committee reported did not alter the framework of the instrument, but added only certain safeguards to individual rights. The lack of a declaration of rights had been deplored in every conventio

tion, when news came that a convention at Newport had ratified the Constitution by the narrow margin of two votes. In the following year the number of States was increased by the admission of Vermont. The admission of Kentucky followed in 1792; and Co

gers which threatened American society was "the depredations which the democratic spirit is apt to make on property." Distrusting the political capacity of the people, whom in private he called "a great beast," he believed that the new Govern

determine, was not less than $42,414,000, about one third of which was made up of arrears of interest. The debts of the individual States, principal and interest, were estimated at about $25,000,0

ied in his mind by every consideration. A country like the United States, possessed of little active wealth, must borrow in emergencies; to borrow on good terms, it must establish its credit; and to maintain its credit, it must faithfully observe its contracts. But over and above these cons

of it had depreciated in value. Some of it still circulated as a monetary medium. The vital question was: how were the present holders to be paid? At the face value of the paper, or at the p

ould give opportunity for immoderate speculation was plain enough; yet every alternative which aimed to do justice by both the original and t

n all directions," wrote Jefferson. "Active partners and agents were associated and employed in every state, town, and country neighborhood, and this paper was bought up at 5/ and even as low as 2/ in the pound, befo

their creditors because they had surrendered one important source of revenue to the central Government, duties on imports. In resorting to other means, the States might pass conflicting measures which would oppose industry. Besides, the debts had been incurred in the cause of Union and should be borne by all. But deeper than these reasons wa

ghbors, the one because it had a large debt and the other because it had not. Pennsylvania was divided on this question. For a time the opposition was too strong to be overcome. On May 25, 1790, an adverse vote seemed to seal the fate of "Miss Assumption," as the wits of the day called this measure. Just at this juncture the question of the location of the future capital, which had been debat

re him. With a readiness which he afterward regretted, Jefferson fell in with the scheme, and invited Hamilton and certain Virginia Representatives to dine at his table. In this comfortable fashion, over their wine, these gentlemen reached an amicable agreement. Such is Jefferson's account, but the matter could not have been quite so simple, for other Representatives than those from Virginia changed their votes and so con

sion in December, 1790, Hamilton boldly urged what was perhaps as unpopular a tax as he could have proposed-a duty on distilled spirits. To most Americans an excise was not only an internal tax, but as Jefferson said, "an infernal one." It was bound to fall with heavy weight upon the p

Government as a fiscal agent in obtaining loans and in collecting taxes. Opposition to this project gathered rapidly and was encouraged by the Secretary of State. The debates in Congress touched upon the monopolistic tend

which belonged to any of the enumerated powers as indispensably necessary to their exercise. Hamilton deprecated this attempt to confine the general Government either to powers expressly granted or to powers absolutely necessary to carry out the enumerated powers. There was another class, he contended, which might be termed "r

subscriptions might be paid in bonds of the Government. The notes issued by the bank were made receivable for all payments to the United States. The bank was to be the repository of the govern

an eternal buzz with the gamblers," Madison wrote from the seat of government. Sinister aspects of this speculative craze soon began to appear. "Of all the shameful circumstances of this business," said Madison, "it is am

rmer collaborator, holding that by such an interpretation of the Constitution "the Government is no longer a limited one possessing enumerated powers, but an indefinite one, subject to particular restrictions." Jefferson had already expressed himself in a similar way apropos of the bank bill. The suspicions which the Secretary of State entertained of his brilliant colleague were deep-seated. Hamilt

hat the salutation was not to be accompanied with shaking hands." His figure clad in black velvet was most impressive. His hair was powdered and gathered in a large silk bag. His hands were dressed in yellow gloves, and he carried a cocked hat adorned with a black feather, while at his side hung a sword in a scabbard of white

iticism. Freneau succeeded admirably in voicing the opinions of the nascent party. The columns of the National Gazette had much to say about "aristocratic juntos," "ministerial systems," and "the control of the government by a wealthy body of capitalists and public creditors," whose interests were in opposition to those of the people. When Hamilton's paper, the United States Gazette, attempted to stigmatize the opposition as essentially Anti-Federalist, Freneau re

herents of parties whose fortunes depended on preserving an unbroken alignment for or against the Government. How little coherence the opposition possessed was apparent when Giles, of Virginia, presented a resolution censuring Hamilton for his

?lection was assured. The Republicans expressed their opposition only by supporting for Vice-President, George Clinton, of New York, whose Anti-Federalism was well know

GRAPHI

, The Federalist System (in The American Nation, vol. 11, 1906). Among the special studies of importance are D. R. Dewey, Financial History of the United States (1903); C. R. Fish, The Civil Service and the Patronage (1905); H. B. Learned, The President's Cabinet (1912); and W. W. Willoughby, The Supreme Court of the United States (1890). There are many biographies of the Federalist leaders. Among the best are W. C. Ford, George Washington (2 vols., 1900);