First Tariff States, I, 96-102. eled on that of Great Britain in the days of the unreformed Parliament, convinced many men that the restoration of the monarchical form was the aim of the Federalists. the charge was not true in any case. Probably On April 8, weeks 194. Organization of the Government. before Washington took the oath of office, Madison introduced a resolution in the House of Representatives which led to the first debate upon protection, and finally to the formation of the first tariff act. This law, which Wash ington signed shortly after the inauguration, proved insufficient to provide the necessary funds, and the rates were increased in 1790 and again in 1792. A Tonnage Act, which was passed at about the same time, provided for a discrimination in favor of goods imported in American vessels and excluded foreign vessels from the coastwise trade. It was further suggested that vessels flying the flags of nations not 1789] Organization of the Government 265 having commercial treaties with the United States should be taxed more heavily than vessels belonging to more friendly countries. This bill was aimed especially at the foreign shipping interest; but the influence of merchants engaged in commerce with Great Britain was exerted to defeat the proposal, and the attempt was abandoned. Schouler's States, I, 103-106. Congress then turned its attention to the organization of Executive the new government. Five administrative departments were departments organized. created: the state department, which at first had to do with both home and foreign affairs; the treasury; the war depart- United ment, which also managed the trifling naval affairs for the next few years; the department of justice, at the head of which was the Attorney-General; and the post office. The heads of these departments were appointed by the President with the consent of the Senate, but they were removable by him without action by the Senate (see p. 246); it had been proposed to make the Secretary of the Treasury responsible to Congress, but this proposal had been abandoned. The first four of these departmental heads acted as the President's advisers; the Postmaster-General remaining for the present outside of what was termed the cabinet. In thinking of this organization and using the words "advisers" and "cabinet," the student should always carefully bear in mind that the President is not obliged in the smallest degree to follow their advice or even to ask it. Congress further made provision for the appointment of collectors of the customs, district attorneys, and other officials to carry on the business of the government. Congress also provided for the organization of the The Judiciary. The Supreme Court comprised a Chief Justice Judiciary organized. and five Associate Justices, and thirteen district courts Schouler's were established. Between the district courts and the United Supreme Court were the circuit courts, three in number; States, I, 107 they were held by justices of the Supreme Court and the judges of the district courts. Provision was made for the appointment of the necessary officials, as marshals, who held office for four years; in this latter enactment, Hamilton's report on finances. Schouler's United States, I, 144-149; MacDonald's Documents, Nos. 6, 8. Hamilton's plan. some students see the germ of the spoils system which was later developed by the extension of this limited tenure of office to all of the less important positions in the executive branch (p. 390). 195. Hamilton's Financial Measures. In January, 1790, Hamilton, the new Secretary of the Treasury, presented to Congress an elaborate report on the public credit, which Mrs. Alexander Hamilton should be carefully studied by all who desire to understand Hamilton's clear insight into financial matters, and to appreciate, at their full value, the great services he rendered to his adopted country. It appeared that the United States, as the successor of the Confederation, owed about fifty-four million dollars in principal and accrued but unpaid interest. Eleven millions of this was owed abroad. As to this portion, which was generally termed the "foreign debt," all agreed with the secretary that it should be paid in full according to the terms of the original contracts. As to the larger portion, which was owed to citizens of the United States, — the "domestic debt," as it was called,- there was no such unanimity of opinion. There had been hardly any market at all for these obligations; holders had been fortunate to sell their holdings at one fifth of the face value. Hamilton proposed to fund this part of the debt at par; but to this proposal there was much opposition. It was argued that 1790] Hamilton's Financial Measures 267 this arrangement would be unjust to the original holders of United States should Alexander Hamilton Assumption .of state debts. Schouler's United States, I, assume and fund, as a part of its own debt, certain por- 149-152. tions of the debts of the several states. On this question, however, the interests of the North and of the South were different, as, for one reason or another, the Northern states were burdened with much larger debts than were the Southern states. The measure commended itself to Hamilton and to those who thought with him, because its carrying out would interest a large number of persons in the stability of the new government, and would compel the United States to exercise extensive powers of taxation; but this centralization of power was disliked by those who Site of the federal capital. Schouler's United States, I, 152-154. viewed with jealousy the subordination of the states to the federal government. North Carolina ratified the Constitution in November, 1789, her representatives took their seats in Congress in time to vote against the project, and it was defeated by a small majority (April, 1790). The issue now became bound up with the decision of another question, the permanent seat of the national capital. 196. The National Capital and Assumption. — Toward the close of the Revolutionary War three hundred Pennsylvania soldiers had surrounded the building in which Congress held its sessions, and demanded the immediate redress of their grievances. The executive council of Pennsylvania was appealed to, and declined to interfere to protect Congress from annoyance. It was largely owing to this that the framers of the Constitution inserted a provision in that instrument which gave the federal government complete control over a district ten miles square, within which a national capitol and other buildings might be erected. The question of the precise location of this small district does not appear to be a matter of much importance in these days of rapid transit. In 1790, however, the Potomac was, to all intents and purposes, as far from Boston as San Francisco is nowadays and Philadelphia was much more inaccessible to the South Carolinian than Denver is at the present time. The Southern members of Congress were anxious to have the permanent seat of government on the Potomac, and the Pennsylvanians were equally desirous that Philadelphia should be the temporary seat of government while the necessary buildings were in the process of construction on the Potomac. Many Northern members, who had slight interest in this matter, were deeply concerned in the success of the project of assumption of the state debts; they believed that the Pennsylvanians, who had voted against the latter measure, had made a bargain of some kind with the Southerners. The friends of assumption, therefore, procured the insertion of Baltimore instead |