Jefferson's Notes on the Motives Behind His Opposition to Hamilton's Policies and Washington's Administration
Excerpts from the "Anas" by Thomas Jefferson
I returned from that mission [to France] in the 1st. year of the new government, having landed in Virginia in Dec. 89. & proceeded to N. York in March 90. to enter on the office of Secretary of State. Here certainly I found a state of things which, of all I had ever contemplated, I the least expected. I had left France in the first year of its revolution, in the fervor of natural rights, and zeal for reformation. My conscientious devotion to these rights could not be heightened, but it had been aroused and excited by daily exercise. The President received me cordially, and my Colleagues & the circle of principal citizens, apparently, with welcome. The courtesies of dinner parties given me as a stranger newly arrived among them, placed me at once in their familiar society.
Shock at Monarchical Sentiments Expressed by Members of the American Elite
But I cannot describe the wonder and mortification with which the table conversations filled me. Politics were the chief topic, and a preference of kingly, over republican, government, was evidently the favorite sentiment. An apostate I could not be; nor yet a hypocrite: and I found myself, for the most part, the only advocate on the republican side of the question, unless, among the guests, there chanced to be some member of that party from the legislative Houses.
Hamilton's Financial System, 1: "Funding" of Public Debt Certificates at Face Value
Hamilton's financial system had then past. It had two objects. 1st as a puzzle, to exclude popular understanding & inquiry. 2dly, as a machine for the corruption of the legislature; for he avowed the opinion that man could be governed by one of two motives only, force or interest: force he observed, in this country, was out of the question; and the interests therefore of the members must be laid hold of, to keep the legislature in unison with the Executive. And with grief and shame it must be acknowledged that his machine was not without effect. That even in this, the birth of our government, some members were found sordid enough to bend their duty to their interests, and to look after personal, rather than public good. It is well known that, during the war, the greatest difficulty we encountered was the want of money or means, to pay our soldiers who fought, or our farmers, manufacturers & merchants who furnished the necessary supplies of food & clothing for them. After the expedient of paper money had exhausted itself, certificates of debt were given to the individual creditors, with assurance of payment, so soon as the U. S. should be able. But the distresses of these people often obliged them to part with these for the half, the fifth, and even a tenth of their value; and Speculators had made a trade of cozening them from the holders, by the most fraudulent practices and persuasions that they would never be paid. In the bill for funding & paying these, Hamilton made no difference between the original holders, & the fraudulent purchasers of this paper. Great & just repugnance arose at putting these two classes of creditors on the same footing, and great exertions were used to pay to the former the full value, and to the latter the price only which he had paid, with interest. But this would have prevented the game which was to be played, & for which the minds of greedy members were already tutored and prepared. When the trial of strength on these several efforts had indicated the form in which the bill would finally pass, this being known within doors sooner than without, and especially than to those who were in distant parts of the Union, the base scramble began. Couriers & relay horses by land, and swift sailing pilot boats by sea, were flying in all directions. Active part[n]ers & agents were associated & 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, before the holder knew that Congress had already provided for it's redemption at par. Immense sums were thus filched from the poor & ignorant, and fortunes accumulated by those who had themselves been poor enough before. Men thus enriched by the dexterity of a leader, would follow of course the chief who was leading them to fortune, and become the zealous instruments of all his enterprises.
Hamilton's Financial System, 2: "Assumption" of State Debts and the Decision to Locate the National Capital on the Potomac (in the South)
This game was over, and another was on the carpet at the moment of my arrival; and to this I was most ignorantly & innocently made to hold the candle. This fiscal maneuver is well known by the name of the Assumption. Independently of the debts of Congress, the states had, during the war, contracted separate and heavy debts; and Massachusetts particularly in an absurd attempt, absurdly conducted, on the British post of Penobscot: and the more debt Hamilton could rake up, the more plunder for his mercenaries. This money, whether wisely or foolishly spent, was pretended to have been spent for general purposes, and ought therefore to be paid from the general purse. But it was objected that nobody knew what these debts were, what their amount, or what their proofs. No matter; we will guess them to be 20. millions. But of these 20. millions we do not know how much should be reimbursed to one state, nor how much to another. No matter; we will guess. And so another scramble was set on foot among the several states, and some got much, some little, some nothing. But the main object was obtained, the phalanx of the treasury was reinforced by additional recruits. This measure produced the most bitter & angry contests ever known in Congress, before or since the union of the states. I arrived in the midst of it. But a stranger to the ground, a stranger to the actors on it, so long absent as to have lost all familiarity with the subject, and as yet unaware of it's object, I took no concern in it. The great and trying question however was lost in the H. of Representatives. So high were the feuds excited by this subject, that on it's rejection, business was suspended. Congress met and adjourned from day to day without doing any thing, the parties being too much out of temper to do business together. The Eastern members particularly, who, with Smith from South Carolina, were the principal gamblers in these scenes, threatened a secession and dissolution. Hamilton was in despair. As I was going to the President's one day, I met him in the street. He walked me backwards & 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 tho' this question was not of my department, yet a common duty should make it a common concern; that the President was the center 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; and that the question having been lost by a small majority only, it was probable that an appeal from me to the judgment and discretion of some of my friends might effect a change in the vote, and the machine of government, now suspended, might be again set into motion. I told him that I was really a stranger to the whole subject; not having yet informed myself of the system of finances adopted, I knew not how far this was a necessary sequence; that undoubtedly if it's rejection endangered a dissolution of our union at this incipient stage, I should deem that the most unfortunate of all consequences, to avert which all partial and temporary evils should be yielded. I proposed to him however 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 propositions 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 & Lee, but White with a revulsion of stomach almost convulsive) agreed to change their votes, & 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, and so the assumption was passed, and 20. millions of stock divided among favored states, and thrown in as pabulum to the stock-jobbing herd. This added to the number of votaries to the treasury and made its Chief the master of every vote in the legislature which might give to the government the direction suited to his political views. I know well, and so must be understood, that nothing like a majority in Congress had yielded to this corruption. Far from it. But a division, not very unequal, had already taken place in the honest part of that body, between the parties styled republican and federal. The latter being monarchists in principle, adhered to Hamilton of course, as their leader in that principle, and this mercenary phalanx added to them ensured him always a majority in both houses: so that the whole action of the legislature was now under the direction of the treasury.
Hamilton's Financial System, 3: The Bank of the United States
Still the machine was not compleat. The effect of the funding system, & of the assumption, would be temporary. It would be lost with the loss of the individual members whom it had enriched, and some engine of influence more permanent must be contrived, while these myrmidons were yet in place to carry it thro' all opposition. This engine was the Bank of the U.S. All that history is known; so I shall say nothing about it. While the government remained at Philadelphia, a selection of members of both houses were constantly kept as Directors, who, on every question interesting to that institution, or to the views of the federal head, voted at the will of that head; and, together with the stockholding members, could always make the federal vote that of the majority. By this combination, legislative expositions were given to the constitution, and all the administrative laws were shaped on the model of England, & so passed. And from this influence we were not relieved until the removal from the precincts of the bank, to Washington.
"The Real Ground of Opposition": Hamilton as Monarchist Conspirator
Here then was the real ground of the opposition which was made to the course of administration. It's object was to preserve the legislature pure and independent of the Executive, to restrain the administration to republican forms and principles, and not permit the constitution to be construed into a monarchy, and to be warped in practice into all the principles and pollutions of their favorite English model. Nor was this an opposition to Genl. Washington. He was true to the republican charge confided to him; & has solemnly and repeatedly protested to me, in our private conversations, that he would lose the last drop of his blood in support of it, and he did this the oftener, and with the more earnestness, because he knew my suspicions of Hamilton's designs against it; & wished to quiet them. For he was not aware of the drift, or of the effect of Hamilton's schemes. Unversed in financial projects & calculations, & budgets, his approbation of them was bottomed on his confidence in the man. But Hamilton was not only a monarchist, but for a monarchy bottomed on corruption. In proof of this I will relate an anecdote, for the truth of which I attest the God who made me. Before the President set out on his Southern tour in April 1791. he addressed a letter of the 4th. of that month, from Mt. Vernon to the Secretaries of State, Treasury & War, desiring that, if any serious and important cases should arise during his absence, they would consult & act on them, and he requested that the Vice-president should also be consulted. This was the only occasion on which that officer was ever requested to take part in a Cabinet question. Some occasion for consultation arising, I invited those gentlemen (and the Attorney genl. as well as I remember) to dine with me in order to confer on the subject. After the cloth was removed, and our question agreed & dismissed, conversation began on other matters and, by some circumstance, was led to the British constitution, on which Mr. Adams observed "purge that constitution of it's corruption, and give to it's popular branch equality of representation, and it would be the most perfect constitution ever devised by the wit of man." Hamilton paused and said, "purge it of it's corruption, and give to it's popular branch equality of representation, & it would become an impracticable government: as it stands at present, with all it's supposed defects, it is the most perfect government which ever existed." And this was assuredly the exact line which separated the political creeds of these two gentlemen. The one was for two hereditary branches and an honest elective one: the other for a hereditary king with a house of lords & commons, corrupted to his will, and standing between him and the people. Hamilton was indeed a singular character. Of acute understanding, disinterested, honest, and honorable in all private transactions, amiable in society, and duly valuing virtue in private life, yet so bewitched & perverted by the British example, as to be under thorough' conviction that corruption was essential to the government of a nation.
John Adams Led Astray [AMH 2010 students skip this section]
Mr. Adams had originally been a republican. The glare of royalty and nobility, during his mission to England, had made him believe their fascination a necessary ingredient in government, and Shay's rebellion, not sufficiently understood where he then was, seemed to prove that the absence of want and oppression was not a sufficient guarantee of order. His book on the American constitutions having made known his political bias, he was taken up by the monarchical federalists, in his absence, and on his return to the U.S. he was by them made to believe that the general disposition of our citizens was favorable to monarchy. He here wrote his Davila, as a supplement to the former work, and his election to the Presidency confirmed his errors. Innumerable addresses too, artfully and industriously poured in upon him, deceived him into a confidence that he was on the pinnacle of popularity, when the gulf was yawning at his feet which was to swallow up him and his deceivers. For, when Genl. Washington was withdrawn, these energumeni of royalism, kept in check hitherto by the dread of his honesty, his firmness, his patriotism, and the authority of his name now, mounted on the Car of State & free from controul, like Phaeton on that of the sun, drove headlong & wild, looking neither to right nor left, nor regarding anything but the objects they were driving at; until, displaying these fully, the eyes of the nation were opened, and a general disbandment of them from the public councils took place. Mr. Adams, I am sure, has been long since convinced of the treacheries with which he was surrounded during his administration. He has since thoroughly seen that his constituents were devoted to republican government, and whether his judgment is re-settled on it's ancient basis, or not, he is conformed as a good citizen to the will of the majority, and would now, I am persuaded, maintain it's republican structure with the zeal and fidelity belonging to his character. For even an enemy has said "he is always an honest man, & often a great one." But in the fervor of the fury and follies of those who made him their stalking horse, no man who did not witness it, can form an idea of their unbridled madness, and the terrorism with which they surrounded themselves. The horrors of the French revolution, then raging, aided them mainly, and using that as a raw head and bloody bones they were enabled by their stratagems of X. Y. Z. in which this historian was a leading mountebank, their tales of tub-plots, Ocean massacres, bloody buoys, and pulpit lyings, and slanderings, and maniacal ravings of their Gardiners, their Osgoods and Parishes, to spread alarm into all but the firmest breasts. Their Attorney General had the impudence to say to a republican member that deportation must be resorted to, of which, said he, "you republicans have set the example," thus daring to identify us with the murderous Jacobins of France. These transactions, now recollected but as dreams of the night, were then sad realities; and nothing rescued us from their liberticide effect but the unyielding opposition of those firm spirits who sternly maintained their post, in defiance of terror, until their fellow citizens could be aroused to their own danger, and rally, and rescue the standard of the constitution. This has been happily done. Federalism & monarchism have languished from that moment, until their treasonable combinations with the enemies of their country during the late war, their plots of dismembering the Union & their Hartford convention, has consigned them to the tomb of the dead: and I fondly hope we may now truly say "we are all republicans, all federalists," and that the motto of the standard to which our country will forever rally, will be "federal union, and republican government;" and sure I am we may say that we are indebted, for the preservation of this point of ralliance, to that opposition of which so injurious an idea is so artfully insinuated & excited in this history.
Washington, "Impaired by Age," Splits with his Fellow Virginians Jefferson and Madison
Much of this relation is notorious to the world, & many intimate proofs of it will be found in these notes. From the moment, where they end, of my retiring from the administration, the federalists got unchecked hold of Genl. Washington. His memory was already sensibly impaired by age, the firm tone of mind for which he had been remarkable, was beginning to relax, it's energy was abated; a listlessness of labor, a desire for tranquillity had crept on him, and a willingness to let others act and even think for him. Like the rest of mankind, he was disgusted with atrocities of the French revolution, and was not sufficiently aware of the difference between the rabble who were used as instruments of their perpetration, and the steady & rational character of the American people, in which he had not sufficient confidence. The opposition too of the republicans to the British treaty, and zealous support of the federalists in that unpopular, but favorite measure of theirs, had made him all their own. Understanding moreover that I disapproved of that treaty, & copiously nourished with falsehoods by a malignant neighbor of mine, who ambitioned to be his correspondent, he had become alienated from myself personally, as from the republican body generally of his fellow citizens; & he wrote the letters to Mr. Adams, and Mr. Carroll, over which, in devotion to his imperishable fame, we must forever weep as monuments of mortal decay.