succeeded him as commander-in-chief, but 1 following, with full authority to con

the provisional army was soon disbanded. On Sept. 3, 1780, Hamilton wrote to Duane, a member of Congress from New York, and expressed his views on the subject of State supremacy and a national government. He proposed to call for a convention of all the States on Nov.

clude, finally, upon a general confederation. He traced the cause of the want of power in Congress, and censured that body for its timidity in refusing to assume authority to preserve the infant republic from harm. "Undefined powers," he said, "are discretionary powers,

66

imited only by the object for which they admiration of the English constitution as were given." He said that some of the the best model; nor did he conceal his lines of the army, but for the influence theoretical preference for monarchy, while of Washington, would obey their States he admitted that, in the existing state of in opposition to Congress. Con- public sentiment, it was necessary to adgress should have complete sovereignty in here to republican forms, but with all the all that relates to war, peace, trade, strength possible. He desired a general finance, foreign affairs, armies, fleets, government strong enough to counterfortifications, coining money, establishing balance the strength of the State governbanks, imposing a land-tax, poll-tax, ments and reduce them to subordinate imduties on trade, and the unoccupied portance. lands." He proposed that the general The first report to the national Congovernment should have power to pro- gress by the Secretary of the Treasury was vide certain perpetual revenues, produc- waited for with great anxiety not only tive and easy of collection. He claimed by the public creditors, but by every the plan of confederation then before thoughtful patriot. It was presented Congress to be defective, and urged to the House of Representatives Jan. alteration. "It is neither fit for war," 15, 1790. It embodied a financial scheme, he said, "nor for peace. The idea of an which was generally adopted, and reuncontrollable sovereignty in each State mained the line of financial policy of will defeat the powers given to Congress, the new government for more than twenty and make our union feeble and precari- years. On his recommendation, the naous." He recommended the appointment tional government assumed not only the of joint officers of state-for foreign af- foreign and domestic debts of the old govfairs, for war, for the navy, and for the ernment, incurred in carrying on the treasury-to supersede the "committees " Revolutionary War, as its own, but also and boards" hitherto employed; but he the debts contracted by the several States neither favored a chief magistrate with during that period for the general welfare. supreme executive power, nor two The foreign debt, with accrued interest, branches in the national legislature. The amounting to almost $12,000,000, was due whole tone of Hamilton's letter was hope- chiefly to France and private lenders in ful of the future, though written in his Holland. The domestic debt, including tent, in the midst of a suffering army. outstanding Continental money and interest, amounted to over $42,000,000, nearly one-third of which was accumulated accrued interest. The State debts assumed amounted in the aggregate to $21,000,000, distributed as follows: New Hampshire, $300,000; Massachusetts, $4,000,000; Rhode Island, $200,000; Connecticut, $1,600,000; New York, $1,200,000; New Jersey, $800,000; Pennsylvania, $2,200,000; Delaware, $200,000; Maryland, $800,000; Virginia, $3,000,000; North Carolina, $2,400,000; South Carolina, $4,000,000; Georgia, $300,000. Long and earnest debates on this report occurred in and out of Congress. There was but one opinion about the foreign debt, and the President was authorized to borrow $12,000,000 to pay it with. As to the domestic debt, there was a wide difference of opinion. The Continental bills, government certificates, and other evidences of debt were mostly held by speculators, who had purchased them at greatly reduced rates; and

Hamilton was afraid of democracy. He wished to secure for the United States a strong government; and in the convention at Philadelphia in 1787 he presented a plan, the chief features of which were an assembly, to be elected by the people for three years; a senate, to be chosen by electors voted for by the people, to hold office during good behavior; and a governor, also chosen to rule during good behavior by a similar but more complicated process. The governor was to have an absolute negative upon all laws, and the appointment of all officers, subject, however, to the approval of the Senate. The general government was to have the appointment of the governors of the States, and a negative upon all State laws. The Senate was to be invested with the power of declaring war and ratifying treaties. In a speech preliminary to his presentation of this plan, Hamilton expressed doubts as to republican government at all, and his

many prominent men thought it would be proper and expedient to apply a scale of depreciation to them, as in the case of the paper money towards the close of the war, in liquidating them.

ing for the support of the government. The paper concluded with a contrast, as to the effect upon the public welfare, between the policy adopted by the government and that advocated by the party of which Jefferson aspired to be leader. Freneau denied, under oath, that Jefferson had anything to do with his paper, and declared he had never written a line for it. To this "An American" replied that "actions were louder than words or oaths," and charged Jefferson with being "the prompter of the attacks on government measures and the aspersions on honorable men." The papers by "An American" were at once ascribed to Hamilton, and drew out answers from Jefferson's friends. To these Hamilton replied. The quarrel waxed hot. Washington (then at Mount Vernon), as soon as he heard of the newspaper war, tried to bring about a truce between the angry Secretaries. In a letter to Jefferson, Aug. 23, 1792, he said: "How unfortunate and how much to be regretted it is that, while we are encompassed on all sides with avowed enemies and insidious friends, internal dissensions should be harrowing and tearing out our vitals." He portrayed the public injury that such a quarrel would inflict. He wrote to Hamilton to the same effect. Their answers were characteristic of the two men, Jefferson's concluding with an intimation that he should retire from office at the close of Washington's term. Hamilton and Jefferson were never reconciled; personally there was a truce, but politically they were bitter enemies.

Hamilton declared such a course would be dishonest and impolitic, and that the public promises should be met in full, in whatever hands the evidences were found. It was the only way, he argued justly, to sustain public credit. He proposed the funding of the public debt in a fair and economical way by which the creditors should receive their promised 6 per cent. until the government should be able to pay the principal. He assumed that in five years, if the government should pursue an honorable course, loans might be made for 5, and even 4, per cent., with which the claims might be met. The propositions of Hamilton, though warmly opposed, were obviously so just that they were agreed to in March (1790), and a new loan was authorized, payable in certificates of the domestic debt at their par value in Continental bills of credit (new issue), at the rate of 100 to 1. Congress also authorized an additional loan to the amount of $21,000,000, payable in certificates of the State debts. A system of revenue from imports and internal excise, proposed by Hamilton, was also adopted. The persistent and sometimes violent attacks upon the financial policy of the government, sometimes assuming the aspect of personality towards Hamilton, that appeared in Freneau's National Gazette in 1792, at length provoked the Secretary of the Treasury to publish a In the winter of 1804 Hamilton was in newspaper article, over the signature of Albany, attending to law business. While "An American," in which attention was there a caucus or consultation was held called to Freneau's paper as the organ of by the leading Federalists. It was a secret the Secretary of State, Mr. Jefferson, and meeting to consult and compare opinions edited by a clerk employed in his office. on the question whether the Federalists, This connection was represented as in- as a party, ought to support Aaron Burr delicate, and inconsistent with Jefferson's for the office of governor of the State of professions of republican purity. He New York. In a bedroom adjoining the commented on the inconsistency and in- closed dining-room in which the caucus delicacy of Mr. Jefferson in retaining a was held one or two of Burr's political place in the cabinet when he was opposed friends were concealed, and heard every to the government he was serving, vilify- word uttered in the meeting. The characing its important measures, adopted by ters of men were fully discussed, and both branches of the Congress, and sanc- Hamilton, in a speech, spoke of Burr tioned by the chief magistrate; and con- as an unsuitable candidate, because no tinually casting obstacles in the way of reliance could be placed in him. The establishing the public credit and provid- spies reported the proceedings to their 209

IV. O

principal, and on Feb. 17 a correspond- a pretext for a challenge to mortal coment of the Morning Chronicle wrote bat; and, seizing upon the word "despicathat at a Federal meeting the night ble," sent a note to Hamilton, demanding before the "principal part of Hamilton's "a prompt and unqualified acknowledgspeech went to show that no reliance ought ment or denial of having said anything to be placed in Mr. Burr." In the election which ensued Burr was defeated, and, though Hamilton had taken no part in the canvass, his influence was such that Burr attributed his defeat to him. Burr, defeated and politically ruined, evidently determined on revenge-a revenge that nothing but the life of Hamilton would satiate. Dr. Charles Cooper, of Albany, had dined with Hamilton at the table of Judge Taylor, where Hamilton spoke freely of Burr's political conduct and principles only, to which he declared himself hostile. Dr. Cooper, in his zeal, just before the election, in published letters, said: "Ham

which warranted such an expression. Several notes passed between Hamilton and Burr, through the hands of friends, in one of which Hamilton frankly said that "the conversation which Dr. Cooper alluded to turned wholly on political topics, and did not attribute to Colonel Burr any instance of dishonorable conduct, nor relate to his private character; and in relation to any other language or conversation of General Hamilton which Colonel Burr will specify, a prompt and frank avowal or denial will be given." This was all an honorable man could ask. But Burr seemed to thirst for Hamilton's life, and he pressed him to

fight a duel in a manner which, in the public opinion which then prevailed concerning the "code of honor," Hamilton could not decline. They fought at Weehawken, July 11, 1804, on the west side of the Hudson River, and Hamilton, who would not discharge his pistol at Burr, for he did not wish to hurt him, was mortally wounded, and died the next day. The public excitement, without regard to party, was intense. Burr fled from New York and became for a while a fugitive from justice. He was politically dead, and bore the burden of scorn and remorse for more than thirty years.

ilton and Kent both consider Burr, politically, as a dangerous man, and unfit for the office of governor." He also wrote that Hamilton and Kent both thought that Burr ought not to be "trusted with the reins of government," and added, "I could detail a still more despicable opinion which Hamilton had expressed of Burr." The latter made these private expressions of Ham- The Secretary of the Treasury having atilton concerning his political character tentively considered the subject referred to

Report on the Coinage.-On Jan. 28, 1791, Secretary Hamilton sent the following report to the House of Representatives:

him by the order of the House of Repre- has caused no general sensation of insentatives of the 15th of April last, rel- convenience, should alterations be atatively to the establishment of a mint, tempted, the precise effect of which canmost respectfully submits the result of his not with certainty be calculated? inquiries and reflections.