CHAPTER IV The question whether or not any discrimination could be made between original holders of the public securities and those who had acquired them by purchase was considered at length by Hamilton in his report. The public securities had been at such a heavy discount that now, if they were to be met at face value, speculators would reap large profits. Hamilton put the case of the opposition as strongly as possible. It might be urged that it was unreasonable "to pay twenty shillings in the pound to one who had not given more for it than three or four; and it is added that it would be hard to aggravate the misfortune of the first owner, who, probably through necessity, parted with, his property at so great a loss, by obliging him to contribute to the profit of the person who had speculated on his distresses." Nevertheless, Hamilton submitted considerations showing that discrimination would be "equally unjust and impolitic, as highly injurious even to the original holders of public securities, as ruinous to public credit." It is unnecessary to repeat the lucid argument by which Hamilton demonstrated the soundness of his position, for security of transfer is now well understood to be an essential element of public credit; but the special point of interest is that the debate simply ignored Hamilton's argument and rambled along over the superficial aspects of the case, dwelling upon the sorrows of those who had parted with their holdings, and exhibiting their situation as the most important matter to be considered. Madison was most active in making that branch of the case the leading issue, and in a series of elaborate speeches which cannot now be read without regret, he urged that the present holders should be allowed only the highest market price previously recorded, and that the residue should go to the original holders. Boudinot at once pointed out that there was nothing on record to show who might be an original bona fide holder. Great quantities of the certificates of indebtedness had, as a mere matter of convenience, been issued to government clerks who afterwards distributed them among those who furnished supplies to the government or who performed services entitling them to pay. He mentioned that he himself appeared on the record as original holder in cases wherein he had really acted in behalf of his neighbors to relieve them of the trouble of personal appearance. Madison's proposition would therefore invest him with a legal title to property which really belonged to others. But this and other evidence of the real effect of Madison's proposal failed to move him, further than to cause him to declare that "all that he wished was that the claims of the original holders, not less than those of the actual holders, should be fairly examined and justly decided," Finally Benson of New York gave him a shrewd home thrust that plainly embarrassed him. He put the question whether, if he had purchased a certificate from Madison, and the Treasury withheld part of the amount for Madison as the original holder, Madison would keep the money? "I ask," said Benson, "whether he would take advantage of the law against me, and refuse to give me authority to take it up in his name?" Madison evaded the query by saying that everything would depend upon the circumstances of any particular case, and that circumstances were conceivable in which the most tender conscience need not refrain from taking the benefit of what the government had determined. The debate on Madison's discrimination amendment lasted from the eleventh to the twenty-second day of February—Washington's birthday. The House did honor to the day when it rejected Madison's motion by the crushing vote of 36 to 13. With that, his pretensions to the leadership of the House quite disappeared. The assumption of state debts was the subject of a debate in committee of the whole which lasted from the twenty-third of February to the second of March. New factional lines now revealed a supposed diversity of interest of the several States. The false notions of finance then current were illustrated by an argument that was in continual use, either on the floor or in the lobby. Members would figure how much their States would have to pay as their share of the debt that would be assumed, and on that basis would reach conclusions as to how their States stood to win or lose by the transaction. By this reckoning, of course, the great gainer would appear to be the State upon whom the chances of war had piled the largest debt. This calculation made Burke of South Carolina, usually an opponent of anything coming from Hamilton, a strong advocate of assumption. He told the House that "if the present question was lost, he was almost certain it would end in her bankruptcy, for she [South Carolina] was no more able to grapple with her enormous debt than a boy of twelve years of age is able to grapple with a giant." Livermore, representing a State never within the actual field of military operations, at once replied: "I conceive that the debt of South Carolina, or Massachusetts, or of an individual, has nothing to do with our deliberations. If they have involved themselves in debt, it is their misfortune, and they must extricate themselves as well as they can." On a later occasion Stone of Maryland, another State that lay outside the track of war, gave the leading war-debt States an admonition of the kind that adds insult to injury, saying "however inconvenient it may be to Massachusetts or South Carolina to make a bold exertion, and nobly bear the burthens of their present debt, I believe in the end it would be found to conduce greatly to their advantage." Burke made a crushing rejoinder. "Was Maryland like South Carolina constantly grappling with the enemy during the whole war? There is not a road in the State but has witnessed the ravages of war; plantations were destroyed, and the skeletons of houses, to this day, point out to the traveler the route of the British army; her citizens were exposed to every violence, their capital taken, and their country almost overrun by the enemy; men, women, and children murdered by the Indians and Tories; all the personal property consumed, and now is it to be wondered at that she is not able to make exertions equal with other States, who have been generally in an undisturbed condition?" The argument pressed by the advocates of assumption was that the state debts contracted during the Revolutionary War were for the common defense, and that, unless these were assumed by the general government, the adoption of the new Constitution would do injury by withdrawing revenue resources which the States had formerly possessed. This position at the present day seems reasonable enough, but it is certain that at that time people worked themselves into a genuine rage over the matter and were able to persuade themselves into a sincere belief that it was outrageous the unfortunate States should expect the others to bear their troubles, and that Hamilton was a great rogue for proposing such a scheme. Writing in his private diary, Maclay characterized the plan as "a monument of political absurdity," and he was in the habit of referring to Hamilton's supporters as his "gladiators" and as a "corrupt squadron." On the whole the records make painful reading. The prevailing tone of public life was one of dull and narrow provincialism, at times thickening into stupidity, at times sharpening into spite, although ordinarily made respectable by a serious attitude to life and by a stolid fortitude in facing whatever the distracted times might present. It was the influence of a few great men that made America a nation. If one is not subject to the spirit of ancestor worship that has long ruled American history, one is bound to say that—apart from some forceful pamphleteering of transient purpose—the voluminous political literature of the formative period displays much pedantic erudition but has little that goes really deep. The Federalist , the artillery of a hard fought battle, is a striking exception. So, too, is the series of reports by Hamilton. But his plans could not prevail by force of reason against the general spirit of selfish particularism. Although on March 2 a motion adverse to assumption in committee of the whole was defeated by a vote of 28 to 22, it was then known that a majority could not be procured for enactment, and on April 12 the assumption bill was defeated outright in the House, 31 to 29. Maclay, who went over to the House from the Senate to witness the event, gloated over the defeat in his diary: "Sedgwick, from Boston, pronounced a funeral oration over it. He was called to order; some confusion ensued; he took his hat and went out. When he returned, his visage bore the visible marks of weeping. Fitzsimmons reddened like scarlet; his eyes were brimful. Clymer's color, always pale, now merged to a deadly white; his lips quivered, and his nether jaw shook with convulsive motions; his head, neck, and breast contracted with gesticulations resembling those of a turkey or goose nearly strangled in the act of deglutition. Benson bungled like a shoemaker who has lost his end…. Wadsworth hid his grief under the rim of a round hat. Boudinot's wrinkles rose in ridges and the angles of his mouth were depressed and assumed a curve resembling a horse's shoe." The defeat did not discourage Hamilton. He had successfully handled a more difficult situation in getting New York to ratify the Constitution, and, resorting now to the same means he had then employed, he used pressure of interest to move those who could not be stirred by reason. The intense concern felt by members in the choice of the site of the national capital supplied him with the leverage which he brought to bear on the situation. Most of the members were more stirred by that question than by any other before Congress. It was a prominent topic in Madison's correspondence from the time the Constitution was adopted. Maclay's diary abounds with references to the subject. Some of his bitterest sentences are penned about the conduct of those who preferred some other site to that on the Susquehanna River which he knew to be the best because he lived there himself. Bargaining among the members as to the selection had been going on almost from the first. As early as April 26, 1789, before Washington had been installed in his office, Maclay mentions a meeting "to concert some measures for the removal of Congress." Thereafter notices of pending deals appear frequently in his diary. After the defeat of the assumption bill, the diary notes the activity of Hamilton in this matter. An entry of June 14, 1790, ascribes to Robert Morris the statement that "Hamilton said he wanted one vote in the Senate and five in the House of Representatives; that he was willing and would agree to place the permanent residence of Congress at Germantown or Falls of the Delaware (Trenton), if he would procure him those votes." Although definite knowledge is unattainable, one gets the impression, in following the devious course of these intrigues, that had Pennsylvania interests been united they could have decided the site of the national capital; but the delegation was divided over the relative merits of the Delaware and the Susquehanna as well as on the question of assumption. Hamilton's efforts in this quarter were ineffectual, and the winning combination was finally arranged elsewhere and otherwise by the aid of Jefferson. Thomas Jefferson was at this time forty-seven years old, and owing both to seniority and to the distinguished positions he had held, he ranked as the most illustrious member of the Administration. His correspondence at this period shows that he was fully aware of the importance of the crisis, and he did not overrate it when he wrote to James Monroe, June 20, 1790, that, unless the measures of the Administration were successful, "our credit will burst and vanish, and the States separate to take care everyone of itself." In this letter Jefferson outlined the compromise that was actually adopted by Congress. The strongest opposition to the assumption bill had come from Virginia, although Maryland, Georgia, and New Hampshire also opposed it, and the Middle States were divided. Jefferson was able to get enough Southern votes to carry assumption in return for enough votes from Hamilton's adherents to carry the Potomac site. An agreement was reached at a dinner given by Jefferson to which he invited Hamilton and Madison. According to this arrangement, the capital was to remain in Philadelphia for ten years and after that to be on the Potomac River in a district ten miles square to be selected by the President. The residence act was approved July 16, 1790; the funding and assumption measures, now combined in one bill, became law on August 4. After Jefferson turned against the Administration, his participation in the passage of the assumption bill was such an awkward circumstance that he discredited his own intelligence by professing that he "was most ignorantly and innocently made to hold the candle" to Hamilton's "game." In reality the public service Jefferson then performed was the most useful in all his long and fruitful career. But for this action, the Declaration of Independence, to the drafting of which he owes his greatest fame, might now be figuring among the historical documents of lost causes, like similar elaborate statements of principle made during the Commonwealth period in England. Had the national forces failed at the critical period of financial organization, and the States, bankrupt by the revolutionary struggle, been left in the lurch, the republic would have followed the usual course of disintegration displayed by federations from the time of the Greek amphictyonies down to that of the Holy Roman Empire. The charge was made soon after Hamilton's victory that it was largely due to the influence of speculators. The advance in the market value of securities produced by Hamilton's measures certainly gave an opportunity to speculators of which they availed themselves with the unscrupulous activity characteristic of the sordid tribe. Jefferson has left an account of "the base scramble." "Couriers and relay horses by land, and swift sailing pilot boats by sea, were flying in all directions. Active partners and agents were associated and employed in every state, town, and country neighborhood, and this paper was bought up at five shillings, and even as low as two shillings in the pound, before the holder knew that Congress had already provided for its assumption at par. Immense sums were thus filched from the poor and ignorant, and fortunes accumulated by those who had themselves been poor enough before." This account is highly colored. The struggle was too close, and the issue was long too doubtful, to admit of speculative preparations extending to every "town and country neighborhood." If speculation took place on such a large scale, it must have been also taking risks on a large scale, for assumption was not assured until Jefferson himself put his shoulder to the wheel. The lack of means for prompt diffusion of intelligence naturally provided large opportunity for speculation by those in a position to keep well-informed, and undoubtedly large profits were made; but the circumstances were such that it seems most probable that profits were less than market opportunities would have allowed had not the issue been so long in doubt. Nevertheless there was much speculative activity, and the charge was soon made that it extended into Congress.[Footnote: This charge was put forth by John Taylor in pamphlets printed in 1793 and 1794, in which he reviewed the financial policy of the Administration and gave a list of Congressmen who had invested in the public funds. The facts on which this charge rests have been collected and examined by Professor Beard in his Economic Origins of Jeffersonian Democracy . His analysis shows that out of sixty-four members of the House, twenty-nine were security holders, and of these twenty-one voted for and eight voted against assumption. But the facts disclosed do not sustain his theory that the issue was essentially a conflict between capitalism and agrarianism. The assumption bill was lifted to its place on the statute book through the leverage exerted by Hamilton and Jefferson, with Washington's prestige as their fulcrum. The characters of these three men resist schemes of classification according to economic interest. The principal value of analysis of the economic elements of the struggle is to protect from undervaluation the motives that actuated the opposition to Hamilton's measures. The historian has the advantage of a perspective denied to participants in events, and this fact is apt to turn unduly to the discredit of lost causes.] The passage of assumption was the turning point. Other important measures followed, but none of them met with difficulties which the Administration could not overcome by ordinary methods of persuasion and appeal. A national bank was authorized by an act approved on February 25, 1791. Hamilton's famous report on manufactures, a masterly analysis of the sources of national wealth and of the means of improving them, was sent to Congress on December 5, 1791. Upon his recommendation Congress established the mint, the only point which excited controversy being Hamilton's proposal that the coins should be stamped with the head of the President in whose administration they were issued. This suggestion was rejected on the ground that it smacked too much of the practice of monarchies. The queer totemistic designs of American coinage are a consequence of this decision. The formation of national government by voluntary agreement is a unique event. The explanation of this peculiar result in the case of America is the unifying influence of Hamilton's measures. They interested in the support of the government economic forces strong enough to counteract the separatist tendencies that had always before broken up states unless they were held together by sheer might of power in their rulers. The means employed have been cited as evidence in support of the economic interpretation of history now in fashion. Government, it is true, like every other form of life, must meet the fundamental needs of subsistence and defense, but this truism supplies no explanation of the particular mode of doing so that may be adopted. Those needs account for motion but not for direction. Human will, discernment, and purpose enter and complicate the situation in a way that makes theories of determinism appear absurd. No one has ever contended that Hamilton was prompted by an economic motive in giving up his law practice to accept public office. He did so against the remonstrances of his friends, whose predictions that what he would get out of it for himself would be calumny, persecution, and loss of fortune, were all fully verified; but he possessed a nature which found its happiness in bringing high ideals to grand fulfillment, and in applying his powers to that object he let everything else go. Hamilton's career is one of the greatest of those facts that baffle attempts to reduce history to an exhibition of the play of economic forces. CHAPTER IV ALARUMS AND EXCURSIONS The Shakespearian stage direction which heads this chapter appropriately describes the course of administrative experience while Washington was trying to get from Congress the means of sustaining the responsibilities with which he was charged by his office. Events did not stand still because for a time anything like national government had ceased. Before Washington left Mount Vernon he had been disquieted by reports of Indian troubles in the West, and of intrigues by Great Britain—which still retained posts that according to the treaty of peace belonged to the United States,—and by Spain which held the lower Mississippi. Washington applied himself to these matters as soon as he was well in office, but he was much hindered in his arrangements by apathy or indifference in Congress. He noted in his diary for May 1, 1790, communications made to him of a disposition among members of Congress "to pay little attention to the Western country because they were of the opinion it would soon shake off its dependence on this, and, in the meantime would be burdensome to it." From a letter of Gen. Rufus Putnam, one of the organizers of the Ohio company, it appears that in July, 1789, Ames of Massachusetts put these queries to him: "Can we retain the western country with the government of the United States? And if we can, what use will it be to them?" Putnam wrote a labored article to the effect that it was both feasible and desirable to hold the West, but the character of his arguments shows that there was then a poor prospect of success. At that time no one could have anticipated the Napoleonic wars which ended all European competition for the possession of the Mississippi valley, and, as it were, tossed that region into the hands of the United States. There was strong opposition in Congress to pursuing any course that would require maintenance of an army or navy. Some held that it was a great mistake to have a war department, and that there would be time enough to create one in case war should actually arrive. In a message to the Senate, August 7, 1789, Washington had urged the importance of "some uniform and effective system for the militia of the United States," saying that he was "particularly anxious" it should receive early attention. On January 18, 1790, General Knox submitted to Congress a plan to which there are frequent references in Washington's diary, showing the special interest he took in the subject. The report laid down principles which have long since been embraced by European nations, but which have just recently been recognized by the United States. It asserts: "That it is the indispensable duty of every nation to establish all necessary institutions for its protection and defense; that it is a capital security to a free state for the great body of the people to possess a competent knowledge of the military art; that every man of the proper age and ability of body is firmly bound by the social compact to perform, personally, his proportion of military duty for the defense of the State; that all men of the legal military age should be armed, enrolled, and held responsible for different degrees of military service." In furtherance of these principles a scheme was submitted providing for military service by the citizens of the United States beginning at eighteen years of age and terminating at sixty. The response of Congress was the Act of April 30, 1790, authorizing a military establishment "to the number of one thousand two hundred and sixteen non-commissioned officers, privates, and musicians," with permission to the President to call State Militia into service if need be, "in protecting the inhabitants of the frontiers." Washington, in noting in his diary his approval of the act, observed that it was not "adequate to the exigencies of the government and the protection it is intended to afford." The Indian troubles in the Southwest were made particularly serious by the ability of the head-chief of the Creek nation, Alexander McGillivray, the authentic facts of whose career might seem too wildly improbable even for the uses of melodrama. His grandmother was a full-blooded Creek of high standing in the nation. She had a daughter by Captain Marchand, a French officer. This daughter, who is described as a bewitching beauty, was taken to wife by Lachland McGillivray, a Scotchman engaged in the Indian trade. A son was born who, at the age of ten, was sent by his father to Charleston to be educated, where he remained nearly seven years receiving instruction both in English and Latin. This son, Alexander, was intended by his father for civilized life, and when he was seventeen he was placed with a business house in Savannah. During the Revolutionary War the father took the Tory side and his property was confiscated. The son took refuge with his Indian kinsfolk, and acquired in their councils an ascendancy which also extended to the Seminole tribe. His position and influence made his favor an important object with all powers having American interests. During the war the British conferred upon him the rank and pay of a colonel. In 1784, as the representative of the Creek and Seminole nations, he formed a treaty of alliance with Spain, by the terms of which he became a Spanish commissary with the rank and pay of a colonel. Against the State of Georgia, the Creek nation had grievances which McGillivray was able to voice with a vigor and an eloquence that compelled attention. It was the old story, so often repeated in American history, of encroachments upon Indian territory. Attempts at negotiation had been made by the old government, and these were now renewed by Washington with no better result. McGillivray met the commissioners, but left on finding that they had no intention of restoring the Indian lands that had been taken. A formidable Indian war seemed imminent, but Washington, whose own frontier experience made him well versed in Indian affairs, judged correctly that the way to handle the situation was to induce McGillivray to come to New York, though, as he noted in his diary, the matter must be so managed that the "government might not appear to be an agent in it, or suffer in its dignity if the attempt to get him here should not succeed." With his habitual caution, Washington considered the point whether he could send out an agent without consulting the Senate on the appointment, and he instructed General Knox "to take the opinion of the Chief Justice of the United States and the Secretary of the Treasury." The assurances obtained were such that Washington selected an experienced frontier commander, Colonel Marinus Willett of New York, and impressed upon him the importance of bringing the Indian chiefs to New York, pointing out "the arguments justifiable for him to use to effect this, with such lures as respected McGillivray personally, and might be held out to them." Colonel Willett was altogether successful, though the inducements he offered were probably aided by McGillivray's desire to visit New York and meet General Washington. Other chiefs accompanied him, and on their way they received many official attentions. An incident which occurred at Guilford Court House, North Carolina, displays McGillivray's character in a kindly light. A woman whose husband had been killed by Creek Indians and who with her children had been made captive, visited McGillivray to thank him for effecting their release, and it was disclosed that he had since that time been contributing to the support of the family. At New York, the recently organized Tammany Society turned out in costumes supposed to represent Indian attire and escorted the visiting chiefs to Federal Hall. Eventually Washington himself went to Federal Hall in his coach of state and in all the trappings of official dignity, to sign the treaty concluded with the Indians. The treaty, which laid down the pattern subsequently followed by the government in its dealings with the Indians, recognized the claims of the Creek nation to part of the territory it claimed, and gave compensation for the part it relinquished by an annuity of fifteen hundred dollars for the tribe, and an annuity of one hundred dollars for each of the principal chiefs. For his part in the transaction McGillivray was commissioned an agent of the United States with the rank of brigadier-general, a position which he sustained with dignity. He was six feet tall, spare in frame, erect in carriage. His eyes were large, dark, and piercing; his forehead, wider at the top than just above the eyes, was so high and broad as to be almost bulging. When he was a British colonel, he wore the uniform of that rank; when in the Spanish service, he wore the military dress of that country; and after Washington appointed him a brigadier-general he sometimes wore the uniform of the American army, but never in the presence of Spaniards. In different parts of his dominions he had good houses where he practised generous hospitality. His influence was shaken by his various political alliances, and before he died in 1793 he had lost much of his authority. In the course of these negotiations Washington had an experience with the Senate which thereafter affected his official behavior. The debates of the constitutional convention indicated an expectation that the Senate would act as a privy council to the President; and Washington—intent above all things on doing his duty—tried to treat it as such. In company with General Knox he went to the Senate chamber, prepared to explain his negotiations with the Indian chiefs, but he forthwith experienced the truth of the proverb that although you may lead a horse to water you cannot make him drink. In his diary for August 22, 1789, Maclay gave a characteristic account of the scene. Washington presided, taking the Vice-President's chair. "He rose and told us bluntly that he had called on us for our advice and consent to some propositions respecting the treaty to be held with the Southern Indians. Said he had brought General Knox with him who was well acquainted with the business." A statement was read giving a schedule of the propositions on which the advice of the Senate was asked. Maclay relates that he called for the reading of the treaties and other documents referred to in the statement. "I cast an eye at the President of the United States. I saw he wore an aspect of stern displeasure." There was a manifest reluctance of the Senate to proceed with the matter in the President's presence, and finally a motion was made to refer the business to a committee of five. A sharp debate followed in which "the President of the United States started up in a violent fret. 'This defeats every purpose of my coming here' were the first words that he said. He then went on to say that he had brought his Secretary of War with him to give any necessary information; that the Secretary knew all about the business, and yet he was delayed and could not go on with the matter." The situation evidently became strained. Maclay relates: "A pause for some time ensued. We waited for him to withdraw. He did so with a discontented air." The privy council function of the Senate was thus in effect abolished by its own action. Thereafter the President had practically no choice save to conclude matters subject to subsequent ratification by the Senate. It soon became the practice of the Senate to restrict the President's power of appointment by conditioning it upon the approval of the Senators from the State in which an appointment was made. The clause providing for the advice and consent of the Senate was among the changes made in the original draft to conciliate the small States, but it was not supposed that the practical effect would be to allow Senators to dictate appointments. It was observed in the Federalist that "there will be no exertion of choice on the part of Senators." Nevertheless there was some uneasiness on the point. In a letter of May 31, 1789, Ames remarked that "the meddling of the Senate in appointments is one of the least defensible parts of the Constitution," and with prophetic insight he foretold that "the number of the Senators, the secrecy of their doings, would shelter them, and a corrupt connection between those who appoint to office and the officers themselves would be created." Washington had to submit to senatorial dictation almost at the outset of his administration, the Senate refusing to confirm his nomination of Benjamin Fishbourn for the place of naval officer at Savannah. The only details to be had about this affair are those given in a special message of August 6, 1789, from which it appears that Washington was not notified of the grounds of the Senate's objection. He defended his selection on the ground that Fishbourn had a meritorious record as an army officer, had held distinguished positions in the state government of Georgia which testified public confidence, and moreover was actually holding, by virtue of state appointment, an office similar to that to which Washington desired to appoint him. The appointment was, in fact, no more than the transfer to the federal service of an official of approved administrative experience, and was of such manifest propriety that it seems most likely that the rejection was due to local political intrigue using the Georgia Senators as its tool. The office went to Lachlan McIntosh, who was a prominent Georgia politician. Over ten years before he had killed in a duel Button Gwinnett, a signer of the Declaration of Independence. Gwinnett was the challenger and McIntosh was badly wounded in the duel, but the affair caused a feud that long disturbed Georgia politics, and through the agency of the Senate it was able to reach and annoy the President of the United States. At the time when Washington was inaugurated both North Carolina and Rhode Island were outside the Union. The national government was a new and doubtful enterprise, remote from and unfamiliar to the mass of the people. To turn their thoughts toward the new Administration it seemed to be good policy for Washington to make tours. The notes made by Washington in his diary indicate that the project was his own notion, but both Hamilton and Knox cordially approved it and Madison "saw no impropriety" in it. Therefore, shortly after the recess of the first session of Congress, Washington started on a trip through the Northern States, pointedly avoiding Rhode Island, then a foreign country. It was during this tour that a question of etiquette occurred about which there was a great stir at the time. John Hancock, then Governor of Massachusetts, did not call upon Washington but wrote inviting Washington to stay at his house, and when this invitation was declined, he wrote again inviting the President to dinner en famille . Washington again declined, and this time the failure of the Governor to pay his respects to the President of the United States was the talk of the town. Some of Hancock's aides now called with excuses on the score of his illness. Washington noted in his diary, "I informed them in explicit terms that I should not see the Governor unless it was at my own lodgings." This incident occurred on Saturday evening, and the effect was such that Governor Hancock called in person on Sunday. The affair was the subject of much comment not to Governor Hancock's advantage. Washington's church-going habits on this trip afford no small evidence of the patient consideration which he paid to every point of duty. In New York, he attended Episcopal church service regularly once every Sunday. On his northern tour he went to the Episcopal church in the morning, and then showed his respect for the dominant religious system of New England by attending the Congregational church in the afternoon. His northern tour lasted from October 15 to November 13, 1789, and was attended by popular manifestations that must have promoted the spread of national sentiment. On November 21, 1789, North Carolina came into the Union, and Rhode Island followed on May 29, 1790. Washington started on a tour of the Southern States on March 21,1791, in which he covered more than seventeen hundred miles in sixty-six days, and was received with grand demonstrations at all the towns he visited. While he was making these tours, which in the days before the railroad and the telegraph were practically the only efficacious means of establishing the new government in the thoughts and feelings of the people, he was much concerned about frontier troubles, and with good reason, as he well knew the deficiency of the means that Congress had allowed. The tiny army of the United States was under the command of Lieutenant-Colonel Josiah Harmar, with the brevet rank of general. In October, 1790, Harmar led his troops, nearly four-fifths of which were new levies of militia, against the Indians who had been disturbing the western frontier. The expedition was a succession of blunders and failures which were due more to the rude and undisciplined character of the material that Harmar had to work with than to his personal incapacity. Harmar did succeed in destroying five Indian villages with their stores of corn, but their inhabitants had warning enough to escape and were able to take prompt vengeance. A detachment of troops was ambushed and badly cut up. The design had been to push on to the upper course of the Wabash, but so many horses had been stolen by the Indians that the expedition was crippled. As a result, Harmar marched his troops back again, professing to believe that punishment had been inflicted upon the Indians that would be a severe lesson to them. What really happened was that the Indians were encouraged to think that they were more than a match for any army which the settlers could send against them, and before long news came of the destruction of settlements and the massacre of their inhabitants. "Unless," wrote Rufus Putnam to Washington, "Government speedily sends a body of troops for our protection, we are a ruined people." Washington did what he could. He sent to Congress Putnam's letter and other frontier communications, but Congress, which was stubbornly opposed to creating a national army, replied, when the need was demonstrated, that the militia of the several States were available. The Government was without means of protecting the Indians against abuse and injustice or of protecting the settlers against the savage retaliations that naturally followed. The dilemma was stated with sharp distinctness in correspondence which passed between Washington and Hamilton in April, 1791. Washington wrote that it was a hopeless undertaking to keep peace on the frontier "whilst land-jobbing and the disorderly conduct of our borderers are suffered with impunity; and while the States individually are omitting no occasion to intermeddle in matters which belong to the general Government." Hamilton in reply went to the root of the matter. "Our system is such as still to leave the public peace of the Union at the mercy of each state government." He proceeded to give a concrete instance: "For example, a party comes from a county of Virginia into Pennsylvania, and wantonly murders some friendly Indians. The national Government, instead of having power to apprehend the murderers and bring them to justice, is obliged to make a representation to that of Pennsylvania; that of Pennsylvania, again, is to make a requisition of that of Virginia. And whether the murderers shall be brought to justice at all must depend upon the particular policy, and energy, and good disposition of two state governments, and the efficacy of the provisions of their respective laws. And security of other States and the money of all are at the discretion of one. These things require a remedy; but when that will come, God knows." Toward the close of its last session, the First Congress was induced to pass an act "for raising and adding another regiment to the military establishment of the United States and for making further provision for the protection of the frontiers." The further provision authorized the President to employ "troops enlisted under the denomination of levies" for a term not exceeding six months and in number not exceeding two thousand. The law thus made it compulsory that the troops should move while still raw and untrained. Congress had fixed the pay of the privates at three dollars a month, from which ninety cents were deducted, and it had been necessary to scrape the streets and even the prisons of the seaboard cities for men willing to enlist upon such terms. Washington gave the command to General Arthur St. Clair, whose military experience should have made him a capable commander, but he was then in bad health and unable to handle the situation under the conditions imposed upon him. General Harmar, enlightened by his own experience, predicted that such an army would certainly be defeated. The campaign was intended as an expedition to chastise the Indians so that they would be deterred from molesting the settlers, but it resulted in a disaster that greatly encouraged Indian depredations. As the army approached the Indian towns, a body of the militia deserted, and it was reported to St. Clair that they intended to plunder the supplies. He sent one of his regular regiments after them, thus reducing his available force to about fourteen hundred men. On November 3, 1791, this force camped on the eastern fork of Wabash. Before daybreak the next morning the Indians made a sudden attack, taking the troops by surprise and throwing them into disorder. It was the story of Braddock's defeat over again. The troops were surrounded by foes that they could not see and could not reach. Indian marksmen picked off the gunners until the artillery was silenced; then the Indians rushed in and seized the guns. In the combat there were both conspicuous exploits of valor and disgraceful scenes of cowardice. In that dark hour St. Clair showed undaunted courage. He was in the front of the fight, and several times he headed charges. He seemed to have a charmed life, for although eight bullets pierced his clothes, one cutting away a lock of the thick gray hair that flowed from under his three-cornered hat, he escaped without a wound. Finally defeat became a rout which St. Clair was powerless to check. Pushed aside in the rush of fugitives, he was left in a position of great peril. If the Indian pursuit had been persistent, few might have escaped, but the Indians stopped to plunder the camp. Nevertheless six hundred and thirty men were killed and over two hundred and eighty wounded, with small loss to the Indians. Washington's reception of the news illustrates both his iron composure and the gusts of passion under which it sometimes gave way. The details are unquestionably authentic, as they were communicated by Washington's secretary who witnessed the scene. Washington was having a dinner party when an officer arrived at the door and sent word that he was the bearer of dispatches from the Western army. The secretary went out to him, but the officer said his instructions were to deliver the dispatches to the President in person. Washington then went to the officer and received the terrible news. He returned to the table as though nothing had happened, and everything went on as usual. After dinner there was a reception in Mrs. Washington's drawing-room and the President, as was his custom, spoke courteously to every lady in the room. By ten o'clock all the visitors had gone and Washington began to pace the floor at first without any change of manner, but soon he began to show emotional excitement and he broke out suddenly: "It's all over! St. Clair is defeated—routed,—the officers nearly all killed—the men by wholesale,—the rout complete,—too shocking to think of,—and a surprise into the bargain!" When near the door in his agitated march about the room, he stopped and burst forth, "Yes, here on this very spot I took leave of him; I wished him success and honor; 'You have your instructions,' I said, 'from the Secretary of War; I had a strict eye to them, and will add one word— Beware of a surprise! You know how the Indians fight us!' He went off with that as my last solemn warning thrown into his ears. And yet, to suffer that army to be cut to pieces—hacked, butchered, tomahawked—by a surprise! O God, O God, he's worse than a murderer! How can he answer it to his country! The blood of the slain is upon him—the curse of the widows and orphans—the curse of Heaven!" The secretary relates that this torrent of passion burst forth in appalling tones. The President's frame shook. "More than once he threw his hands up as he hurled imprecations upon St. Clair." But at length he got his feelings under control, and after a pause he remarked, "I will hear him without prejudice. He shall have full justice." St. Clair was, indeed, treated with marked leniency. A committee of the House reported that the failure of the expedition could not "be imputed to his conduct, either at any time before or during the action." St. Clair was continued in his position as Governor of the Northwest Territory and remained there until 1802. Notwithstanding the dire results of relying on casual levies, Congress was still stubbornly opposed to creating an effective force under national control, and in this attitude to some extent reflected even frontier sentiment. Ames in a letter of January 13, 1792, wrote that "even the views of the western people, whose defense has been undertaken by government, have been unfriendly to the Secretary of War and to the popularity of the Government. They wish to be hired as volunteers, at two-thirds of a dollar a day to fight the Indians. They are averse to the regulars." By the Act of March 5, 1792, Congress authorized three additional regiments, with the proviso, however, that they "shall be discharged as soon as the United States shall be at peace with the Indian tribes." This legislation, nevertheless, was a great practical improvement on the previous act. General Wayne, who now took command, was fortunately circumstanced in that he was under no pressure to move against the Indians. Public opinion favored a return to negotiation, so that he had time to get his troops under good discipline. He did not move the main body of his troops until the summer of 1794, and on August 20, he inflicted a smashing defeat on the Indians, at a place known as the Fallen Timbers, followed up the victory by punitive expeditions to the Indian towns, and burned their houses and crops. The campaign was a complete success. The Indians were so humbled by their losses that they sued for peace, and negotiations began which were concluded in the summer of 1795 by the treaty of Greenville, under which the Northwestern tribes ceded an extensive territory to the United States. It was notorious that the trouble which the American authorities had experienced with the Indians had been largely due to the activity of British agents. In his report Wayne noted that the destruction effected by his troops included "the houses, stores, and property of Colonel McKee, the British agent, and principal stimulator of the war now existing between the United States and the savages." A sharp correspondence took place between Wayne and Major William Campbell, commanding a British post on the Miami. Campbell protested against the approach of Wayne's army, "no war existing between Great Britain and America." Wayne assented to this statement, and then asked what he meant "by taking post far within the well known and acknowledged limits of the United States." Campbell rejoined that he had acted under orders and as to his right, that was a matter which were best left to "the ambassadors of our different nations." Campbell refused to obey Wayne's demand to withdraw, and Wayne ignored Campbell's threat to fire if he were approached too close. Wayne reported that the only notice he took of this threat was "by immediately setting fire to and destroying everything within view of the fort, and even under the muzzles of the guns." "Had Mr. Campbell carried his threats into execution," added Wayne, "it is more than probable he would have experienced a storm." No collision actually took place at that time but there was created a situation which, unless it were removed by diplomacy, must have eventually brought on war. CHAPTER V TRIBUTE TO THE ALGERINES At the time when Washington took office, the captains and crews of two American vessels, which had been seized by Algerine Corsairs in 1785, still remained in captivity. The Continental Congress had made some efforts in their behalf which were contemptuously received. The Dey of Algiers did not wish any treaty with the United States; but he did want $59,496.00 for the twenty-one captives whom he then held. Farther than that negotiation had not progressed. Agents of the United States were advised that, if such a high amount were paid, the Corsairs would pursue American vessels in preference to those of any other nation, and that the shrewd thing would be to pretend indifference to the fate of the captives. This advice was acted upon even to the extent of cutting off the supplies which had been forwarded to the captives through the Spanish consul at Algiers. The summary method which was pursued was that of dishonoring bills drawn by him to cover his expenditures. Jefferson, who while Minister to France had been closely connected with these proceedings, was called upon by Congress for a report upon them, not long after he took office as Secretary of State. This report, December 28, 1790, set forth the fact that the Mediterranean trade, which had employed from eighty to one hundred ships with about twelve hundred seamen, had been almost destroyed. In the interest of the negotiations, it had been necessary "to suffer the captives and their friends to believe for a while, that no attention was paid to them, no notice taken of their letters," and they were "still under this impression." Jefferson contented himself with submitting the facts in the case, remarking that "upon the whole it rests with Congress to decide between war, tribute, and ransom. If war, they will consider how far our own resources shall be called forth, and how far they will enable the Executive to engage, in the forms of the Constitution, the cooperation of other Powers. If tribute or ransom, it will rest with them to limit and provide the amount; and with the Executive, observing the same constitutional forms, to make arrangements for employing it to the best advantage." The problem which Jefferson thus put before Congress was a singularly difficult one. Among the captives was Captain Richard O'Brien, whose ship, the Dauphin of Philadelphia, was taken July 30, 1785. He had a ready pen and, apparently, had unrestricted access to the mails. His letters were those of a shrewd observer and depicted a situation that bristled with perplexity. The Algerines had about a dozen vessels, their armament ranging from ten to thirty-six guns, but of these vessels only two belonged to the Government, the others being private ventures. Though they preyed on merchantmen, they avoided engagements, and did not come out at all if there were vessels cruising for them. A blockade was effective only while it lasted. Whenever it was raised, out came the Corsairs again. An occasional bombardment of their port did not cow them and had no permanent effect. A French official described it as being "like breaking glass windows with guineas." The Algerines made treaties with some Powers in consideration of tribute but refused peace to others on any terms; as they did not desire to shut out all opportunity for their time-honored sport of piracy. Congress was slow to take action of any kind. In January, 1791, Maclay noted that a committee had decided that the Mediterranean trade could not be preserved without an armed force to protect it, and that a navy should be established as soon as the Treasury was in a position to bear the expense. Meanwhile the President began fresh negotiations, which were attended by singular fatality. Thomas Barclay, who had some diplomatic experience, was commissioned to go to the Emperor of Morocco. When Barclay reached Gibraltar, he was taken ill, and, after being removed to Lisbon, he died. Admiral John Paul Jones was then appointed special commissioner to arrange for the ransom of the captives. As he had then left the Russian service and was living in Paris, it was supposed that his services would be available, but he died before the commission could reach him. The delay caused by these events was made so much worse by the slow transmission of intelligence that two years elapsed before a fresh start was made by placing the conduct of matters in the hands of Colonel David Humphreys, then Minister to Portugal. Humphreys had gone as far as Gibraltar on his mission when he learned that a truce had been suddenly arranged between Portugal and Algiers. This was alarming news, since it meant that the Algerines could now pass into the Atlantic from which they had been excluded by Portuguese war-vessels stationed in the strait of Gibraltar. "I have not slept since the receipt of the news of this the hellish plot," wrote Edward Church, the United States consul at Lisbon. Church was energetic in spreading the intelligence, which fortunately reached some American shipmasters in time to save them. In October, 1793, as thirteen American vessels were in the port of Lisbon afraid to venture out, Church pleaded their case so vigorously that the Portuguese government agreed to give them an armed convoy. Nevertheless the Algerines found plenty of game among American ships then at sea, for they captured ten vessels and added one hundred and five more Americans to the stock of slaves in Algiers. "They are in a distressed and naked situation," wrote Captain O'Brien, who had himself then been eight years in captivity. Humphreys made arrangements by which they received clothing and a money allowance ranging from twelve cents a day for a seaman up to eight dollars a month for a captain. Nothing, however, could be done in the way of peace negotiations. One of Humphreys' agents reported that the Dey could not make peace even if he really wanted to do so. "He declared to me that his interest does not permit him to accept your offers, Sir, even were you to lavish millions upon him, 'because,' said he, 'if I were to make peace with everybody, what should I do with my Corsairs? What should I do with my soldiers? They would take off my head, for want of other prizes.'" This was an honest disclosure of the situation. Humphreys wrote Jefferson that "no choice is left for the United States but to prepare a naval force for the protection of their trade." Captain O'Brien wrote, "By all means urge Congress to fit out some remarkably fast sailing cruisers, well appointed and manned." In January, 1794, accordingly, a committee of the House brought in a resolution for building four ships of 44 guns and two of 20 guns each. The debate began on February 6, and for some time was altogether one-sided, with one speaker after another opposing the creation of a navy. Madison, as was now his habit, had doubts as to the propriety of the measure. He fancied that peace "might be purchased for less money than this armament would cost." Clark of New Jersey had "an objection to the establishment of a fleet, because, when once it had been commenced, there would be no end to it." He had "a scheme which he judged would be less expensive and more effectual. This was to hire the Portuguese to cruise against the Algerines." Baldwin of Georgia thought that "bribery alone could purchase security from the Algerines." Nicholas of Virginia "feared that we were not a match for the Algerines." Smith of Maryland and Fitzsimmons of Pennsylvania championed the resolution, and Fisher Ames made some remarks on Madison's lack of spirit that caused Madison to define his position. He proposed as a substitute for the pending measure that money should "be employed in such a manner as should be found most effectual for obtaining a peace with the Regency of Algiers; and failing of this, that the sum should be applied to the end of obtaining protection from some of the European Powers." This motion warmed up the debate. Giles of Virginia came to Madison's support in a style that was not helpful. He "considered navies altogether as very foolish things. An immense quantity of property was spread on the water for no purpose whatever, which might have been employed by land to the best purpose." The suggestion that the United States should be a hermit nation was an indiscreet exposure of the logical significance of Madison's plan, and it perhaps turned the scale in favor of employing force. The bill came up in the House for final passage on March 10, 1794. Its opponents now sparred for time, but a motion to recommit in order to give opportunity for further consideration was defeated by 48 to 41. Giles made a final effort, by a long and elaborate address, in which he argued that the effect of fitting out a navy would be to involve the United States in war with all the European Powers. Moreover, a navy would be dangerous to American liberty. "A navy is the most expensive of all means of defense, and the tyranny of governments consists in the expensiveness of their machinery." He pointed to the results of British naval policy. "The government is not yet destroyed, but the people are oppressed, liberty is banished." The French monarchy had been ruined by its navy. He was "astonished, with these fatal examples before our eyes, that there should be gentlemen who would wish to enter upon this fashionable system of politics." In discussing the expense of maintaining a navy, he expressed his fear that it would eventually bring back the miseries of feudalism. William Smith of South Carolina made a reply in which he defined the issue as being between defense and tribute; but Giles had the last word. He wanted to know whether it was maintained that the frigates it was proposed to build would "boldly march upon land and break the chains of the prisoners?" He begged Congress not to do what "would irritate the barbarians and furnish additional misery to the unfortunate prisoners." In this closing struggle over the bill Giles fought single-handed. When he had quite finished, the bill was passed by 50 yeas to 39 nays, a result which showed a decided gain in strength from the discussion. The debates in the Senate have not been preserved, but the Senate was so evenly divided that it took the casting vote of the Vice-President to pass the bill, which became law March 27, 1794. In order to get it passed at all, a proviso had been tacked on that, if peace terms could be arranged, "no farther proceeding be had under this Act." In September, 1795, a treaty of peace with Algiers was finally concluded, after negotiations had been facilitated by a contingent fee of $18,000 paid to "Bacri the Jew, who has as much art in this sort of management as any man we ever knew," the American agents reported. It was a keen bargain, as Bacri had to propitiate court officials at his own risk, and had to look for both reimbursement and personal profit, too, out of the lump sum he was to receive in event of his success. It can hardly be doubted that he had the situation securely in hand before making the bargain. The money paid in Algiers for the ransom of the captives, for tribute and for presents to officials amounted to $642,500.00. But in addition the United States agreed to build a frigate for the Algerine navy and also supply naval stores, which with incidental expenses brought the total cost of the peace treaty up to $992,463.25. Moreover, the United States agreed to pay an annual tribute of 12,000 sequins,—about $27,500. By the terms of the navy act, the United States had to stop building vessels for its own protection. Of those which had been authorized, the frigates Constitution, United States , and Constellation were under way and were eventually completed. The timber, with material that had been collected for the other vessels, was sold, except what was needed for the frigate which was to be presented to the Algerines, and which was to be built at Portsmouth, N.H. The whole affair was a melancholy business that must have occasioned Washington deep chagrin. In his address to Congress, December 7, 1796, announcing the success of the negotiations for effecting the release of the captives, he observed that "to secure respect to a neutral flag requires a naval force, organized and ready to vindicate it from insult or aggression." CHAPTER VI FRENCH DESIGNS ON AMERICA A few months before France declared war upon England, February 1, 1793, Edmond Genet was appointed French Minister to the United States. He landed at Charleston, April 8, and at once began activities so authoritative as to amount to an erection of French sovereignty in the United States. The subsequent failure of his efforts and the abrupt ending of his diplomatic career have so reacted upon his reputation that associations of boastful arrogance and reckless incompetency cling to his name. This estimate holds him too lightly and underrates the peril to which the United States was then exposed. Genet was no casual rhetorician raised to important office by caprice of events, but a trained diplomatist of hereditary aptitude and of long experience. His father was chief of the bureau of correspondence in the Department of Foreign Affairs for the French monarchy, and it was as an interpreter attached to that bureau that the son began his career in 1775. While still a youth, he gained literary distinction by his translations of historical works from Swedish into French. Genet was successively attached to the French Embassies at Berlin and Vienna, and in 1781 he succeeded his father in the Department of Foreign Affairs. In 1788, he was Secretary of the French Embassy at St. Petersburg, where his zeal for French Revolutionary principles so irritated the Empress Catherine that she characterized him as "a furious demagogue," and in 1792 he was forced to leave Russia. In the same year he was named Ambassador to Holland, and thence was soon transferred to the United States. It is obvious that a man of such experience could not be ignorant of diplomatic forms and of international proprieties of behavior. If he pursued a course that has since seemed to be a marvel of truculence, the explanation should be sought in the circumstances of his mission more than in the nature of his personality. When the matter is considered from this standpoint, not only does one find that Genet's proceedings become consistent and intelligible, but one becomes deeply impressed with the magnitude of the peril then confronting the United States. Nothing less than American independence was at stake. It should be borne in mind that France, in aiding America against England, had been pursuing her own ends. In August, 1787, the French government advised its American representative that it had observed with indifference the movements going on in the United States and would view the break-up of the Confederation without regret. "We have never pretended to make of America a useful ally; we have had no other object than to deprive Great Britain of that vast continent." But, now that war with England had broken out again, it was worth while making an effort to convert America into a useful ally. Jefferson, while Minister to Paris, had been sympathetic with the Revolutionary movement. In 1789, the English Ambassador reported to his government that Jefferson was much consulted by the leaders of the Third Estate. On the other hand, Gouverneur Morris, who was then living in Paris, sympathized frankly with the King. Nevertheless he was chosen to succeed Jefferson as the American Minister. In notifying him of the appointment, Washington let him know that there had been objections. "It was urged that in France you were considered as a favorer of the aristocracy, and unfriendly to its Revolution." Washington's reminder that it was his business to promote the interest of his own country did not have any apparent effect on Morris's behavior. He became the personal agent of Louis XVI, and he not only received and disbursed large sums on the King's account, but he also entered into plans for the King's flight from Paris. During the Reign of Terror which began in 1792, he behaved with an energy and an intrepidity honorable to him as a man; in general, however, his course tended to embroil and not to guard American interests. In the face of the European coalition against revolutionary France, the principle of action was that announced by Danton,—"to dare, and to dare, and without end to dare." Genet therefore went on his mission to America keyed to measures which were audacious but which can hardly be described as reckless. By plunging heavily he might make a big winning; if he failed, he was hardly worse off than if he had not made the attempt. To draw the United States into the war as the ally of France was only one part of his mission. He was also planning to reëstablish the French colonial empire, the loss of which was still an unhealed wound. Canada, Louisiana, and the Floridas were all in his mind. In Louisiana, France regarded conditions as being so favorable that Genet was instructed to make special efforts in that quarter. Spain, which had entered the coalition against republican France, held the lower Mississippi. Spain was therefore the common enemy of France and of the American settlements west of the mountains. Ought not then those two republican interests to work together to expel Spain and to seize Louisiana? Moreover, there was a belief, not without grounds, that the older States which formed the American union were indifferent to the needs and interests of the country west of the Alleghenies and would be more relieved than afflicted if it should take its destinies into its own hands. Such considerations animated a group of Americans in Paris, among whose prominent members were Thomas Paine, the pamphleteer, Joel Barlow, the poet, and Dr. James O'Fallon, a Revolutionary soldier now interested in Western land speculation. All were then ardent sympathizers with the French Revolution, and they entered heartily into the design of stirring up the Western country against Spain. The project attracted some frontier leaders, among them George Rogers Clark, famous for his successful campaigns against the hostile Indians and the British during the Revolutionary War. He was to lead a force of Western riflemen against the Spanish posts in Louisiana, and Genet brought with him blank brevets of officers up to the grade of captain for bestowal on the Indian chiefs who would cooperate. The expenses of the expedition were to be met by collections which Genet expected to make from the treasury of the United States on account of sums due to France. The project of using the United States as a French base could claim legal rights under the treaties of 1778 between France and the United States. There were two treaties, both concluded on the same day. One, entitled a treaty of amity and commerce, was a mutual conveyance of privileges; it provided that the ships of war of each country should defend the vessels of the other country against all attacks that might occur while they were in company. Besides this right of convoy, each country had the right to use the ports of the other, either for ships of war or for privateers and their prizes, "nor shall such prizes be arrested or seized when they come to and enter the ports of either party; nor shall the searchers or other officers of those places search the same, or make any examination concerning the lawfulness of such prizes, but they may hoist sail at any time, and depart." All vessels of either country had the right to take refuge in the ports of the other, whether from stress of weather or pursuit of enemies, "and they shall be permitted to refresh and provide themselves at reasonable rates, with victuals and all things needful for the sustenance of their persons or reparation of their ships, and conveniency of their voyage; and they shall no ways be detained or hindered from returning out of the said ports or roads, but may remove and depart when and whither they please, without any let or hindrance." It was expressly provided that such hospitality should not be extended to vessels of an enemy of either country. The accompanying instrument, entitled a treaty of alliance, was a mutual guarantee of territorial possessions, "forever against all other powers." These broad rights and privileges were supplemented by the convention of 1788 on consular functions, which facilitated the organization of a consular jurisdiction competent to deal with cases arising from the treaties. There was still due to France on loans contracted during the Revolution a remainder of about $2,300,000 payable by instalments, subject to the proviso that "Congress and the United States" had "the liberty of freeing themselves by anticipated payments should the state of their finances admit." It was planned to get the United States to reciprocate the past favors of France by favoring her now, if not by direct payments of money, at least by acceptances which Genet could use in purchasing supplies. The fact that whatever in the way of money or accommodations was obtained in the United States would be used in business in that country was counted upon to facilitate the transaction. These facts form the background against which Genet's activities should be viewed. He came with deliberate intent to rush the situation, and armed with all needful powers for that purpose, so far as the French government could confer them. According to a dispatch from Morris to the State Department, Genet "took with him three hundred blank commissions which he is to distribute to such as will fit out cruisers in our ports to prey on the British commerce." At Charleston, Genet received an enthusiastic reception. The Revolutionary commander, General Moultrie, who was then governor of South Carolina, entered so cordially into Genet's plans that in his first dispatch home, Genet was able to say to his government that Moultrie had permitted him to arm privateers and had assisted the various branches of his mission in every possible way. Such was Genet's energy that within five days after his arrival he had opened a recruiting station at which American seamen were taken into the French service; he had commissioned American vessels as French privateers; and he had turned the French consul's office into an admiralty court for which business was provided by the prizes that were being brought in. After seeing under way all matters that he could attend to in Charleston, Genet moved on to Philadelphia, and received on his way thither such greetings as to give to his journey the character of a triumphal progress. Meanwhile, L'Ambuscade , the French frigate which had brought Genet to Charleston, was proceeding to Philadelphia, taking prizes on her way and sending them to American ports. In Delaware Bay she captured the Grange , an English merchantman lying there at anchor, and took this vessel with her to Philadelphia as a prize. As Genet neared Philadelphia on May 16, L'Ambuscade gave notice by firing three guns, at which signal a procession was formed to meet Genet at Gray's Ferry and escort him to his lodgings. He found awaiting him a letter from George Rogers Clark, which gave an account of his plans for the invasion of Louisiana and the capture of New Orleans, and which announced his readiness to start if he were assisted by some frigates and provided with three thousand pounds sterling to meet expenses. Genet received reports from other agents or friendly correspondents in the Spanish territory, and so active was he in forwarding the objects of his mission that on June 19 he was able to write to his government, "I am provisioning the West Indies, I excite the Canadians to break the British yoke, I arm the Kentukois and prepare a naval expedition which will facilitate their descent on New Orleans." These claims were well founded. Genet did, in fact, make an effective start, and had he been able to command funds he might have opened a great chapter of history. George Rogers Clark was the ablest and most successful commander that the frontier had yet produced, and such was the weakness of the Spanish defenses that had his expedition been actually launched as planned, the conquest of Louisiana might indeed have been accomplished. It was not any defect in Genet's arrangements that frustrated his plans, but his inability to raise money and the uncertainty of his position as the agent of a government which was undergoing rapid revolutionary change. News that the French Republic had declared war against Great Britain reached the United States early in April, 1793. Washington, who was then at Mount Vernon, wrote to Jefferson that "it behooves the Government of this country to use every means in its power to prevent the citizens thereof from embroiling us with either of those Powers, by endeavoring to maintain a strict neutrality," and he requested that the Secretary should "give the subject mature consideration, that such measures as shall be deemed most likely to effect this desirable purpose may be adopted without delay." On arriving at Philadelphia a few days later, Washington was met by a distracted Cabinet. The great difficulty was the conflict of obligations. The United States had a treaty of alliance with France; it had a treaty of peace with Great Britain. The situation had become such that it could not sustain both relations at the same time. If the United States remained neutral, it would have to deny to France privileges conferred by the treaty which had been negotiated when both countries were at war with Great Britain. How far was that treaty now binding? It had been made with "the Most Christian king," whose head had been cut off. Did not his engagements fall with his head? That was the very position taken by the government of the French Republic, which had asserted the right to decide what treaties of the old monarchy should be retained and what rejected. As an incident of the present case, the question was to be decided whether the ambassador of the French Republic should be received. Such were the issues that Washington's Administration had to face, at a time when the whole country was thrilling with enthusiasm in behalf of the French Republic. Chief Justice Marshall left on record his opinion that this feeling "was almost universal," and that "a great majority of the American people deemed it criminal to remain unconcerned spectators of a conflict between their ancient enemy and republican France." Washington acted with his customary deliberation. On April 18, 1793, he submitted to the members of his Cabinet thirteen questions. Jefferson, who held that the French treaty was still operative, noted that the questions reached him in Washington's own handwriting, "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." In Jefferson's opinion they were designed to lead "to a declaration of the Executive that our treaty with France is void." Jefferson was right as to Hamilton's authorship. At a time when Jefferson had no advice to give save that it would be well to consider whether Congress ought not to be summoned, Hamilton had ready a set of interrogatories which subjected the whole situation to close analysis. The critical questions were these: "Shall a proclamation issue for the purpose of preventing interferences of the citizens of the United States in the war between France and Great Britain, &c.? Shall it contain a declaration of neutrality or not? What shall it contain? "Are the United States obliged, by good faith, to consider the treaties heretofore made with France as applying to the present situation of the parties? May they either renounce them, or hold them suspended till the government of France shall be established?" To the interrogatories framed by Hamilton, Washington added one which presented the point raised by Jefferson—"Is it necessary or advisable to call together the two Houses of Congress, with a view to the present posture of European affairs? If it is, what shall be the particular object of such a call?" The Cabinet met on April 19. On the question of a proclamation of neutrality Jefferson argued that such a proclamation would be equivalent to a declaration that the United States would not take part in the war, and that this matter did not lie within the power of the Executive, since it was the province of Congress to declare war. Congress ought therefore to be called to consider the question. Hamilton, who held that it was both the right and the duty of the President to proclaim neutrality, was strongly opposed to summoning Congress. In a brief record of the proceedings he remarked that "whether this advice proceeded from a secret wish to involve us in a war, or from a constitutional timidity, certain it is such a step would have been fatal to the peace and tranquillity of America." The matter was finally compromised by an unanimous agreement that a proclamation should be issued "forbidding our citizens taking any part in any hostilities on the seas with or against any of the belligerent powers; and warning them against carrying to any such powers any of those articles deemed contraband, according to the modern usage of nations; and enjoining them from all acts and proceedings inconsistent with the duties of a friendly nation toward those at war." Jefferson's scruples having been appeased by avoiding the use of the term "neutrality," it was now unanimously decided that Congress should not be called. It was further decided that the French Minister should be received. Jefferson and Randolph, however, were of opinion that he should be received without conditions, while Hamilton, supported by Knox, held that the Minister ought to be apprised of the intention to reserve the question whether the treaties were still operative, "lest silence on that point should occasion misconstruction." The even division of the Cabinet on this point was in practical effect a victory for Jefferson. The Cabinet was unable to reach any decision in the matter of treaty obligations. Jefferson held that they were still operative; Hamilton, that they were "temporarily and provisionally suspended." Knox sided with Hamilton, and Randolph, although he at first sided with Jefferson, was so shaken in his opinion by Hamilton's argument that he asked further time for consideration. Eventually written opinions were submitted by Hamilton, Jefferson, and Randolph, confirming the views they had previously expressed, and, as Knox concurred with Hamilton, the Cabinet was still evenly divided on that fundamental question.