CHAPTER V.

WASHINGTON'S ADMINISTRATIONS.

1789-1797.

FEDERAL PARTY IN POWER.

March 4th, 1789, was the time fixed upon for the formal inauguration of the new government, but it

First Congress, Extra Session. was not until April 6th that a sufficient number of Congressmen arrived in New York to constitute a quorum and count the electoral votes. Washington took the oath of office April 29th, the Vice-President having taken his place as president of the Senate a few days before. Thus, at the dissolution of the confederation, the Federal party passed into power and assumed control of the national legislature. The first duty of the party was that of organizing a government based upon the constitution-a task requiring. time, patience, and deliberation. Washington, wishing to be a mediator between the political parties, and to show that the administration had only the best wishes of the country at heart, formed his cabinet of men holding opposite political views. In a democratic state like ours the executive can not long hold the position of a mediator if he is not sustained by a compromise party among the people. Washington himself, so well fitted to play this part, was forced more and more to surrender his position in relation to parties. His first administration was devoted to the establishment of an internal policy. The anti-federalists became the determined opponents of this policy, as well as of his external policy developed during his second administration.

ANTI-FEDERALS ORGANIZE.

At the beginning of Washington's administration the antifederals did not constitute an organized opposition to the. party in power; but as new measures of the government were advanced, they were taken as issues for drawing party lines, and for perfecting and strengthening the ranks of the minority. The antagonistic views held by Hamilton and Jefferson, members of Washington's cabinet, on the subject of government, aided greatly in establishing party lines. Their ideas made their way into Congress, thence among the people, and formed, principally, the issues on which the political parties were divided for a number of succeeding administrations. Hamilton was the leader of the federal party, and Jefferson of the opposition.

TARIFF AND THE REGULATION OF COMMERCE.

During the first session of Congress a law was passed, in which the principle of a protective tariff was recognized by declaring it to be "necessary for the support of government, for the discharge of the debts of the United States, and the encouragement of manufactures, that duties be laid on goods, wares, and merchandise imported." In the passage of this measure the government recognized the principle of a protective tariff, and the discussion which it called forth mainly shaped the issues on this question for all subsequent controversies. Hamilton's report on the subject, made after the law was passed, is regarded by free-traders as most cunningly devised, and by protectionists as containing arguments never yet answered. The policy of coercing foreign states by means of commercial restrictions had its beginning also in this measure, which, carried out by Mr. Jefferson in the embargo and non-intercourse acts, resulted ultimately in war with Great Britain.

BILL OF RIGHTS.

One of the serious objections to the constitution before its ratification was "the absence of a distinct bill of rights recognizing the fundamental principles of government; the equality of all men, and their rights to life, liberty, and the pursuit of happiness." The objections to the constitution, which had been pointed out before its adoption, were condensed during the first session of Congress, and moulded into a bill of rights, "consisting of twelve articles, ten of which were afterward ratified and incorporated as amendments into the constitution." These expressly guarantee freedom of religion, speech, person, and property. They were urged by the more moderate anti-federalists and positively requested by several states, while two states constantly refused to enter the Union because of the defects of the constitution. These considerations determined their adoption. They were opposed by the extreme anti-federalists, who considered them "delusive and insufficient, and only calculated to create a fatal feeling of security against centralized government."

After adopting measures for the organization of the different departments of government, and directing the secretary of the treasury to prepare a plan for the settlement of the public debt, Congress adjourned September 29th, until the following January.

STATE SOVEREIGNTY.

That the interests of the states should be guarded with jealous care was the most prominent political idea in the minds of anti-federals under the confederation. When the new government went into operation their views were not changed, and they continued to base their party upon the leading ideas that delegated authority should be regarded with distrust, and that the power of a state should be su

preme. The burden of their speeches was the danger to the rights of the states, which were threatened on every side. Every question was discussed with direct reference to its bearing on state sovereignty. The new constitution seemed to them fanciful and experimental, and calculated only to wrest from the states the liberties they had gained by the sword. They were strengthened in their distrust by what appeared to be the monarchical tendencies of the federals and their broad construction of the constitution.

FINANCIAL POLICY.

Congress convened at Philadelphia, January 4, 1790. LegFirst Congress,islation upon finance began with this session First Session. of Congress and was carried on in accordance with Hamilton's policy. The subjects of debts, internal revenue, and a United States bank came under consideration. The situation of the country, financially speaking, was very embarrassing. European powers looked down upon the United States with unconcealed contempt, and their good opinion could be regained only on condition that the credit of the government be restored. Hamilton recognized that the government should first of all direct its attention to the adjustment of financial difficulties.

On January 9th, in pursuance of the direction of the previous session, he submitted his report on the settlement of the public debt. He recommended as follows: First, that the foreign debt of the confederacy be assumed and paid in full; second, that the domestic debt of the confederacy, which had fallen far below par, also be paid at its par value; and third, that the debts incurred by the states during the Revolution, and still unpaid, be assumed and paid in full by the federal government. The first recommendation was adopted unanimously. The second encountered strong opposition, even from Madison and many moderate anti-federalists. They op

posed it on the ground that the domestic debt was held by speculators who had bought it at a heavy discount, and would thus gain a too great interest on their investment. The supporters of the measure argued that for that very reason, if for no other, they should be paid, as it would greatly strengthen the national credit and teach the holders of United States securities not to dispose of them at such a discount. After a heated discussion, the recommendation was adopted. Hamilton's third recommendation involved the questions of state and federal supremacy. It therefore united all the anti-federalists in a determined opposition. They feared that this would permanently attach the "money power" to the federal government and thus weaken the power and importance of the states. This recommendation was adopted by a vote of twenty-six to thirty-one. The anti-federalists, however, being reinforced by seven newly arrived members from North Carolina, moved and carried a reconsideration of the third resolution, which they succeeded in voting down by a majority of two. Its final adoption was secured by the federalists agreeing to vote that the seat of government, after remaining ten years at Philadelphia, should be fixed upon the Potomac river. This secured two anti-federalist members from the Potomac, which carried the resolution. The immediate effect of adopting Hamilton's report was to appreciate the credit of the United States; but it caused the anti-federals to complete their organization in opposition to the administration, and added to their ranks a number of federals, among whom was James Madison, who had done more than any other man, besides Hamilton, to effect the adoption of the constitution.

THE DEBT.

The debt, foreign and domestic, including also twenty-five millions of the state debts which the secretary of the treasury