tag:blogger.com,1999:blog-90262988222302010832024-03-13T00:55:29.975-04:00The Founders' BlogInitiative of the Hauenstein Center for Presidential StudiesJames Madisonhttp://www.blogger.com/profile/01704851092758790482noreply@blogger.comBlogger395125tag:blogger.com,1999:blog-9026298822230201083.post-76918919132884426482011-12-05T08:00:00.003-05:002011-12-05T08:00:16.603-05:00Alexander Hamilton's Report on Manufactures<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg" alt="" border="0" /></a>December 5, 1791<br /><a href="http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=1381&chapter=64338&layout=html&Itemid=27"><span style="font-size:85%;">(Read the complete document.)</span></a><br /><br />Communicated to the House of Representatives<br /><br />The Secretary of the Treasury, in obedience to the order of the House of Representatives, of the 15th day of January, 1790, has applied his attention, at as early a period as his other duties would permit, to the subject of Manufactures, and particularly to the means of promoting such as will tend to render the United States independent on foreign nations for military and other essential supplies; and he thereupon respectfully submits the following report:<br /><br />The expediency of encouraging manufactures in the United States, which was not long since deemed very questionable, appears at this time to be pretty generally admitted. The embarrassments which have obstructed the progress of our external trade, have led to serious reflections on the necessity of enlarging the sphere of our domestic commerce. The restrictive regulations, which, in foreign markets, abridge the vent of the increasing surplus of our agricultural produce, serve to beget an earnest desire that a more extensive demand for that surplus may be created at home; and the complete success which has rewarded manufacturing enterprise in some valuable branches, conspiring with the promising symptoms which attend some less mature essays in others, justify a hope that the obstacles to the growth of this species of industry are less formidable than they were apprehended to be, and that it is not difficult to find, in its further extension, a full indemnification for any external disadvantages, which are or may be experienced, as well as an accession of resources, favorable to national independence and safety.<br /><br />….<br /><br />It ought readily be conceded that the cultivation of the earth, as the primary and most certain source of national supply, as the immediate and chief source of subsistence to a man, as the principal source of those materials which constitute the nutriment of other kinds of labor, as including a state most favorable to the freedom and independence of the human mind—one, perhaps, most conducive to the multiplication of the human species, has intrinsically a strong claim to pre-eminence over every other kind of industry.<br /><br />But, that it has a title to any thing like an exclusive predilection, in any country, ought to be admitted with great caution; that it is even more productive than every other branch of industry, requires more evidence than has yet been given in support of the position. That its real interests, precious and important as, without the help of exaggeration, they truly are, will be advanced, rather than injured, by the due encouragement of manufactures, may, it is believed, be satisfactorily demonstrated. And it is also believed that the expediency of such encouragement, in a general view, may be shown to be recommended by the most cogent and persuasive motives of national policy.<br /><br />….<br /><br />* But, without contending for the superior productiveness of manufacturing industry, it may conduce to a better judgment of the policy which ought to be pursued respecting its encouragement, to contemplate the subject under some additional aspects, tending not only to confirm the idea that this kind of industry has been improperly represented as unproductive in itself, but to evince, in addition, that the establishment and diffusion of manufactures have the effect of rendering the total mass of useful and productive labor, in a community, greater than it would otherwise be. In prosecuting this discussion, it may be necessary briefly to resumé and review some of the topics which have been already touched.<br /><br />To affirm that the labor of the manufacturer is unproductive, because he consumes as much of the produce of land as he adds value to the raw material which he manufactures, is not better founded than it would be to affirm that the labor of the farmer, which furnishes materials to the manufacturer, is unproductive, because he consumes an equal value of manufactured articles. Each furnishes a certain portion of the produce of his labor to the other, and each destroys a corresponding portion of the produce of the labor of the other. In the meantime, the maintenance of two citizens, instead of one, is going on; the State has two members instead of one; and they, together, consume twice the value of what is produced from the land.<br /><br />If, instead of a farmer and artificer, there were a farmer only, he would be under the necessity of devoting a part of his labor to the fabrication of clothing and other articles, which he would procure of the artificer, in the case of there being such a person; and of course he would be able to devote less labor to the cultivation of his farm, and would draw from it a proportionately less product. The whole quantity of production, in this state of things, in provisions, raw materials, and manufactures, would certainly not exceed in value the amount of what would be produced in provisions and raw materials only, if there were an artificer as well as a farmer.<br /><br />Again, if there were both an artificer and a farmer, the latter would be left at liberty to pursue exclusively the cultivation of his farm. A greater quantity of provisions and raw materials would, of course, be produced, equal, at least, as has been already observed, to the whole amount of the provisions, raw materials, and manufactures, which would exist on a contrary supposition. The artificer, at the same time, would be going on in the production of manufactured commodities, to an amount sufficient, not only to repay the farmer, in those commodities, for the provisions and materials which were procured from him, but to furnish the artificer himself with a supply of similar commodities for his own use. Thus, then, there would be two quantities or values in existence, instead of one; and the revenue and consumption would be double, in one case, what it would be in the other.<br /><br />If, in place of both of these suppositions, there were supposed to be two farmers and no artificer, each of whom applied a part of his labor to the culture of land and another part to the fabrication of manufactures; in this case, the portion of the labor of both, bestowed upon land, would produce the same quantity of provisions and raw materials only, as would be produced by the entire sum of the labor of one, applied in the same manner; and the portion of the labor of both, bestowed upon manufactures, would produce the same quantity of manufactures only, as would be produced by the entire sum of the labor of one, applied in the same manner. Hence, the produce of the labor of the two farmers would not be greater than the produce of the labor of the farmer and artificer; and hence it results, that the labor of the artificer is as positively productive as that of the farmer, and as positively augments the revenue of the society.<br /><br />The labor of the artificer replaces to the farmer that portion of his labor with which he provides the materials of exchange with the artificer, and which he would otherwise have been compelled to apply to manufactures; and while the artificer thus enables the farmer to enlarge his stock of agricultural industry, a portion of which he purchases for his own use, he also supplies himself with the manufactured articles of which he stands in need. He does still more. Besides this equivalent, which he gives for the portion of agricultural labor consumed by him, and this supply of manufactured commodities for his own consumption, he furnishes still a surplus, which compensates for the use of the capital advanced, either by himself or some other person, for carrying on the business. This is the ordinary profit of the stock employed in the manufactory, and is, in every sense, as effective an addition to the income of the society as the rent of land.<br /><br />The produce of the labor of the artificer, consequently, may be regarded as composed of three parts: one, by which the provisions for his subsistence and the materials for his work are purchased of the farmer; one, by which he supplies himself with manufactured necessaries; and a third, which constitutes the profit on the stock employed. The two last portions seem to have been overlooked in the system which represents manufacturing industry as barren and unproductive.<br /><br />In the course of the preceding illustrations, the products of equal quantities of the labor of the farmer and artificer have been treated as if equal to each other. But this is not to be understood as intending to assert any such precise equality. It is merely a manner of expression, adopted for the sake of simplicity and perspicuity. Whether the value of the produce of the labor of the farmer be somewhat more or less than that of the artificer, is not material to the main scope of the argument, which, hitherto, has only aimed at showing that the one, as well as the other, occasions a positive augmentation of the total produce and revenue of the society.<br /><br />It is now proper to proceed a step further, and to enumerate the principal circumstances from which it may be inferred that manufacturing establishments not only occasion a positive augmentation of the produce and revenue of the society, but that they contribute essentially to rendering them greater than they could possibly be without such establishments. These circumstances are:<br /><br />1. The division of labor.<br />2. An extension of the use of machinery.<br />3. Additional employment to classes of the community not ordinarily engaged in the business.<br />4. The promoting of emigration from foreign countries.<br />5. The furnishing greater scope for the diversity of talents and dispositions, which discriminate men from each other.<br />6. The affording a more ample and various field for enterprise.<br />7. The creating, in some instances, a new, and securing, in all, a more certain and steady demand for the surplus produce of the soil.<br /><br />Each of these circumstances has a considerable influence upon the total mass of industrious effort in a community; together, they add to it a degree of energy and effect which is not easily conceived. Some comments upon each of them, in the order in which they have been stated, may serve to explain their importance.<br /><br /><span><a href="http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=1381&chapter=64338&layout=html&Itemid=27"><span style="font-size:85%;">(Read the complete document.)</span></a></span><br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com99tag:blogger.com,1999:blog-9026298822230201083.post-26754911214011805882011-10-25T08:00:00.001-04:002011-10-25T08:00:05.757-04:00Third Annual Message of George Washington<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/5_Ask_Gleaves/Greatest_man.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/5_Ask_Gleaves/Greatest_man.jpg" alt="" border="0" /></a>October 25, 1791<br /><br />Fellow-Citizens of the Senate and the House of Representatives:<br /><br />I meet you upon the present occasion with the feelings which are naturally inspired by a strong impression of the prosperous situations of our common country, and by a persuasion equally strong that the labors of the session which has just commenced will, under the guidance of a spirit no less prudent than patriotic, issue in measures conducive to the stability and increase of national prosperity.<br /><br />Numerous as are the providential blessings which demand our grateful acknowledgments, the abundance with which another year has again rewarded the industry of the husbandman is too important to escape recollection.<br /><br />Your own observations in your respective situations will have satisfied you of the progressive state of agriculture, manufactures, commerce, and navigation. In tracing their causes you will have remarked with particular pleasure the happy effects of that revival of confidence, public as well as private, to which the Constitution and laws of the United States have so eminently contributed; and you will have observed with no less interest new and decisive proofs of the increasing reputation and credit of the nation. But you nevertheless can not fail to derive satisfaction from the confirmation of these circumstances which will be disclosed in the several official communications that will be made to you in the course of your deliberations.<br /><br />The rapid subscriptions to the Bank of the United States, which completed the sum allowed to be subscribed in a single day, is among the striking and pleasing evidences which present themselves, not only of confidence in the Government, but of resource in the community.<br /><br />In the interval of your recess due attention has been paid to the execution of the different objects which were specially provided for by the laws and resolutions of the last session.<br /><br />Among the most important of these is the defense and security of the western frontiers. To accomplish it on the most humane principles was a primary wish.<br /><br />Accordingly, at the same time the treaties have been provisionally concluded and other proper means used to attach the wavering and to confirm in their friendship the well-disposed tribes of Indians, effectual measures have been adopted to make those of a hostile description sensible that a pacification was desired upon terms of moderation and justice.<br /><br />Those measures having proved unsuccessful, it became necessary to convince the refractory of the power of the United States to punish their depredations. Offensive operations have therefore been directed, to be conducted, however, as consistently as possible with the dictates of humanity.<br /><br />Some of these have been crowned with full success and others are yet depending. The expeditions which have been completed were carried on under the authority and at the expense of the United States by the militia of Kentucky, whose enterprise, intrepidity, and good conduct are entitled of peculiar commendation.<br /><br />Overtures of peace are still continued to the deluded tribes, and considerable numbers of individuals belonging to them have lately renounced all further opposition, removed from their former situations, and placed themselves under the immediate protection of the United States.<br /><br />It is sincerely to be desired that all need of coercion in future may cease and that an intimate intercourse may succeed, calculated to advance the happiness of the Indians and to attach them firmly to the United States.<br /><br />In order to this it seems necessary -<br /><br />That they should experience the benefits of an impartial dispensation of justice.<br /><br />That the mode of alienating their lands, the main source of discontent and war, should be so defined and regulated as to obviate imposition and as far as may be practicable controversy concerning the reality and extent of the alienations which are made.<br /><br />That commerce with them should be promoted under regulations tending to secure an equitable deportment toward them, and that such rational experiments should be made for imparting to them the blessings of civilization as may from time to time suit their condition.<br /><br />That the Executive of the United States should be enabled to employ the means to which the Indians have been long accustomed for uniting their immediate interests with the preservation of peace.<br /><br />And that efficacious provision should be made for inflicting adequate penalties upon all those who, by violating their rights, shall infringe the treaties and endanger the peace of the Union.<br /><br />A system corresponding with the mild principles of religion and philanthropy toward an unenlightened race of men, whose happiness materially depends on the conduct of the United States, would be as honorable to the national character as conformable to the dictates of sound policy.<br /><br />The powers specially vested in me by the act laying certain duties on distilled spirits, which respect the subdivisions of the districts into surveys, the appointment of officers, and the assignment of compensations, have likewise carried into effect. In a manner in which both materials and experience were wanting to guide the calculation it will be readily conceived that there must have been difficulty in such an adjustment of the rates of compensation as would conciliate a reasonable competency with a proper regard to the limits prescribed by the law. It is hoped that the circumspection which has been used will be found in the result to have secured that last two objects; but it is probable that with a view to the first in some instances a revision of the provision will be found advisable.<br /><br />The impressions with which this law has been received by the community have been upon the whole such as were to be expected among enlightened and well-disposed citizens from the propriety and necessity of the measure. The novelty, however, of the tax in a considerable part of the United States and a misconception of some of its provisions have given occasion in particular places to some degree of discontent; but it is satisfactory to know that this disposition yields to proper explanations and more just apprehensions of the true nature of the law, and I entertain a full confidence that it will in all give way to motives which arise out of a just sense of duty and a virtuous regard to the public welfare.<br /><br />If there are any circumstances in the law which consistently with its main design may be so varied as to remove any well-intentioned objections that may happen to exist, it will consist with a wise moderation to make the proper variations. It is desirable on all occasions to unite with a steady and firm adherence to constitutional and necessary acts of Government the fullest evidence of a disposition as far as may be practicable to consult the wishes of every part of the community and to lay the foundations of the public administration in the affections of the people.<br /><br />Pursuant to the authority contained in the several acts on that subject, a district of 10 miles square for the permanent seat of the Government of the United State has been fixed and announced by proclamation, which district will comprehend lands on both sides of the river Potomac and the towns of Alexandria and Georgetown. A city has also been laid out agreeably to a plan which will be placed before Congress, and as there is a prospect, favored by the rate of sales which have already taken place, of ample funds for carrying on the necessary public buildings, there is every expectation of their due progress.<br /><br />The completion of the census of the inhabitants, for which provision was made by law, has been duly notified (excepting one instance in which the return has been informal, and another in which it has been omitted or miscarried), and the returns of the officers who were charged with this duty, which will be laid before you, will give you the pleasing assurance that the present population of the United States borders on 4,000,000 persons.<br /><br />It is proper also to inform you that a further loan of 2,500,000 florins has been completed in Holland, the terms of which are similar to those of the one last announced, except as to a small reduction of charges. Another, on like terms, for 6,000,000 florins, had been set on foot under circumstances that assured an immediate completion.<br />Gentlemen of the Senate:<br /><br />Two treaties which have been provisionally concluded with the Cherokees and Six Nations of Indians will be laid before you for your consideration and ratification.<br />Gentlemen of the House of Representatives:<br /><br />In entering upon the discharge of your legislative trust you must anticipate with pleasure that many of the difficulties necessarily incident to the first arrangements of a new government for an extensive country have been happily surmounted by the zealous and judicious exertions of your predecessors in cooperation with the other branch of the Legislature. The important objects which remain to be accomplished will, I am persuaded, be conducted upon principles equally comprehensive and equally well calculated of the advancement of the general weal.<br /><br />The time limited for receiving subscriptions to the loans proposed by the act making provision for the debt of the United States having expired, statements from the proper department will as soon as possible apprise you of the exact result. Enough, however, is known already to afford an assurance that the views of that act have been substantially fulfilled. The subscription in the domestic debt of the United States has embraced by far the greatest proportion of that debt, affording at the same time proof of the general satisfaction of the public creditors with the system which has been proposed to their acceptance and of the spirit of accommodation to the convenience of the Government with which they are actuated. The subscriptions in the debts of the respective States as far as the provisions of the law have permitted may be said to be yet more general. The part of the debt of the United States which remains unsubscribed will naturally engage your further deliberations.<br /><br />It is particularly pleasing to me to be able to announce to you that the revenues which have been established promise to be adequate to their objects, and may be permitted, if no unforeseen exigency occurs, to supersede for the present the necessity of any new burthens upon our constituents.<br /><br />An object which will claim your early attention is a provision for the current service of the ensuing year, together with such ascertained demands upon the Treasury as require to be immediately discharged, and such casualties as may have arisen in the execution of the public business, for which no specific appropriation may have yet been made; of all which a proper estimate will be laid before you.<br />Gentlemen of the Senate and of the House of Representatives:<br /><br />I shall content myself with a general reference to former communications for several objects upon which the urgency of other affairs has hitherto postponed any definitive resolution. Their importance will recall them to your attention, and I trust that the progress already made in the most arduous arrangements of the Government will afford you leisure to resume them to advantage.<br /><br />These are, however, some of them of which I can not forbear a more particular mention. These are the militia, the post office and post roads, the mint, weights and measures, a provision for the sale of the vacant lands of the United States.<br /><br />The first is certainly an object of primary importance whether viewed in reference to the national security to the satisfaction of the community or to the preservation of order. In connection with this the establishment of competent magazines and arsenals and the fortification of such places as are peculiarly important and vulnerable naturally present themselves to consideration. The safety of the United States under divine protection ought to rest on the basis of systematic and solid arrangements, exposed as little as possible to the hazards of fortuitous circumstances.<br /><br />The importance of the post office and post roads on a plan sufficiently liberal and comprehensive, as they respect the expedition, safety, and facility of communication, is increased by their instrumentality in diffusing a knowledge of the laws and proceedings of the Government, which, while it contributes to the security of the people, serves also to guard them against the effects of misrepresentation and misconception. The establishment of additional cross posts, especially to some of the important points in the Western and Northern parts of the Union, can not fail to be of material utility.<br /><br />The disorders in the existing currency, and especially the scarcity of small change, a scarcity so peculiarly distressing to the poorer classes, strongly recommend the carrying into immediate effect the resolution already entered into concerning the establishment of a mint. Measures have been taken pursuant to that resolution for procuring some of the most necessary artists, together with the requisite apparatus.<br /><br />An uniformity in the weights and measures of the country is among the important objects submitted to you by the Constitution, and if it can be derived from a standard at once invariable and universal, must be no less honorable to the public councils than conducive to the public convenience.<br /><br />A provision for the sale of the vacant lands of the United States is particularly urged, among other reasons, by the important considerations that they are pledged as a fund for reimbursing the public debt; that if timely and judiciously applied they may save the necessity of burthening our citizens with new taxes for the extinguishment of the principal; and that being free to discharge the principal but in a limited proportion, no opportunity ought to be lost for availing the public of its right.<br /><span style="font-size:85%;"><br />(Source: http://www.yale.edu/lawweb/avalon/presiden/washpap.htm)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-57704486654172183772011-08-30T10:00:00.002-04:002011-08-30T10:00:06.451-04:00Thomas Jefferson to John AdamsPhiladelphia, August 30, 1791<br /><br />My dear Sir,—<br /><br />I received some time ago your favor of July 29th, and was happy to find that you saw, in its true point of view, the way in which I had been drawn into the scene which must have been so disagreeable to you. The importance which you still seem to allow to my note, and the effect you suppose it to have had, though unintentional in me, induce me to show you, that it really had no effect. Paine’s pamphlet, with my note, was published here about the second week in May; not a word ever appeared in the public papers here on the subject for more than a month, and I am certain not a word on the subject would ever have been said, had not a writer, under the name of Publicola, at length undertaken to attack Mr. Paine’s principles, which were the principles of the citizens of the United States. Instantly a host of writers attacked Publicola, in support of those principles. He had thought proper to misconstrue a figurative expression in my note, and these writers so far noticed me as to place the expression in its true light; but this was only an incidental skirmish, preliminary to the general engagement, and they would not have thought me worth naming, had not he thought proper to bring me on the scene.2 His antagonist, very criminally, in my opinion, presumed you to be Publicola, and on that presumption hazarded a personal attack on you. No person saw with more uneasiness than I did this unjustifiable assault, and the more so, when I saw it continued after the printer had declared you were not the author. But you will perceive from all this, my dear Sir, that my note contributed nothing to the production of these disagreeable pieces. As long as Paine’s pamphlet stood on its own feet and on my note, it was unnoticed. As soon as Publicola attacked Paine, swarms appeared in his defence. To Publicola, then, and not in the least degree to my note, this whole contest is to be ascribed, and all its consequences.<br /><br />You speak of the execrable paragraph in the Connecticut paper. This, it is true, appeared before Publicola, but it had no more relation to Paine’s pamphlet and my note than to the Alcoran. I am satisfied the writer of it had never seen either; for when I passed through Connecticut about the middle of June, not a copy had ever been seen by anybody, either in Hartford or New Haven, nor probably in that whole State; and that paragraph was so notoriously the reverse of the disinterestedness of character which you are known to possess, by everybody who knows your name, that I never heard a person speak of the paragraph but with an indignation in your behalf, which did you entire justice. This paragraph, then, certainly did not flow from my note, any more than the publications which Publicola produced. Indeed, it was impossible that my note should occasion your name to be brought into question; for, so far from naming you, I had not even in view any writing which I might suppose to be yours,2 and the opinions I alluded to were principally those I had heard in common conversation from a sect aiming at the subversion of the present government to bring in their favorite form of a King, Lords, and Commons.<br /><br />Thus, I hope, my dear Sir, that you will see me to have been as innocent in effect as I was in intention. I was brought before the public without my own consent, and from the first moment of seeing the effort of the real aggressor in this business, to keep me before the public, I determined that nothing should induce me to put pen to paper in the controversy. The business is now over, and I hope its effects are over, and that our friendship will never be suffered to be committed, whatever use others may think proper to make of our names.<br /><br />The event of the King’s flight from Paris, and his recapture, will have struck you with its importance. It appears, I think, that the nation is firm within, and it only remains to see whether there will be any movement from without. I confess, I have not changed my confidence in the favorable issue of that revolution, because it has always rested on my own ocular evidence of the unanimity of the nation, and wisdom of the patriotic party in the national assembly. The last advices render it probable that the Emperor will recommence hostilities against the Porte; it remains to see whether England and Prussia will take a part.<br /><br />Present me to Mrs. Adams with all the affections I feel for her, and be assured of those devoted to yourself by, my dear Sir, your sincere friend and servant.<br /><br />Thomas Jefferson.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-34432151717032170732011-07-29T10:00:00.003-04:002011-07-29T10:00:01.460-04:00John Adams to Thomas Jefferson<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/john%20adams.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px; height: 130px;" src="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/john%20adams.jpg" alt="" border="0" /></a>Braintree, July 29, 1791<br /><br />Dear Sir,—<br /><br />Yesterday, at Boston, I received your friendly letter of July 17th with great pleasure. I give full credit to your relation of the manner in which your note was written and prefixed to the Philadelphia edition of Mr. Paine’s pamphlet on the Rights of Man; but the misconduct of the person who committed this breach of your confidence, by making it public, whatever were his intentions, has sown the seeds of more evils than he can ever atone for. The pamphlet, with your name to so striking a recommendation of it, was not only industriously propagated in New York and Boston, but, that the recommendation might be known to every one, was reprinted with great care in the newspapers, and was generally considered as a direct and open personal attack upon me, by countenancing the false interpretation of my writings, as favoring the introduction of hereditary monarchy and aristocracy into this country. The question everywhere was, what heresies are intended by the secretary of State? The answer in the newspapers was, “The Vice-President’s notions of a limited monarchy, an hereditary government of King and Lords, with only elective Commons.” Emboldened by these murmurs, soon after appeared the paragraphs of an unprincipled libeller in the New Haven Gazette, carefully reprinted in the papers of New York, Boston, and Philadelphia, holding up the Vice-President to the ridicule of the world for his meanness, and to their detestation for wishing to subjugate the people to a few nobles. These were soon followed by a formal speech of the lieutenant-governor of Massachusetts, very solemnly holding up the idea of hereditary powers, and cautioning the public against them, as if they were at that moment in the most imminent danger of them. These things were all accompanied with the most marked neglect, both of the governor and lieutenant-governor of this State, towards me; and all together served as a hue and cry to all my enemies and rivals, to the old constitutional faction of Pennsylvania, in concert with the late insurgents of Massachusetts, both of whom consider my writings as the cause of their overthrow, to hunt me down like a hare, if they could. For this state of things Publicola, who, I suppose, thought that Mr. Paine’s pamphlet was made use of as an instrument to destroy a man for whom he had a regard, whom he thought innocent, and, in the present moment, of some importance to the public, came forward. You declare very explicitly that you never did, by yourself or by any other, have a sentence of yours inserted in a newspaper without your name to it. And I with equal frankness declare that I never did, either by myself or by any other, have a sentence of mine inserted in any newspaper since I left Philadelphia. I neither wrote nor corrected Publicola. The writer, in the composition of his pieces, followed his own judgment, information, and discretion, without any assistance from me.<br /><br />You observe, “that you and I differ in our ideas of the best form of government, is well known to us both.” But, my dear Sir, you will give me leave to say that I do not know this. I know not what your idea is of the best form of government. You and I have never had a serious conversation together, that I can recollect, concerning the nature of government. The very transient hints that have ever passed between us have been jocular and superficial, without ever coming to an explanation. If you suppose that I have, or ever had, a design or desire of attempting to introduce a government of King, Lords, and Commons, or in other words, an hereditary executive, or an hereditary senate, either into the government of the United States or that of any individual State, you are wholly mistaken. There is not such a thought expressed or intimated in any public writing or private letter, and I may safely challenge all mankind to produce such a passage, and quote the chapter and verse. If you have ever put such a construction on any thing of mine, I beg you would mention it to me, and I will undertake to convince you that it has no such meaning.<br /><br />Upon this occasion I will venture to say, that my unpolished writings, although they have been read by a sufficient number of persons to have assisted in crushing the insurrection of the Massachusetts, in the formation of the new constitutions of Pennsylvania, Georgia, and South Carolina, and in procuring the assent of all the States to the new national constitution, yet have not been read by great numbers. Of the few who have taken the pains to read them, some have misunderstood them, and others have wilfully misrepresented them, and these misunderstandings and misrepresentations have been made the pretence for overwhelming me with floods and whirlwinds of tempestuous abuse, unexampled in the history of this country.<br /><br />It is thought by some, that Mr. Hancock’s friends are preparing the way, by my destruction, for his election to the place of Vice-President, and that of Mr. Samuel Adams to be Governor of this commonwealth; and then the Stone House faction will be sure of all the loaves and fishes, in the national government and the State government, as they hope. The opposers of the present constitution of Pennsylvania, the promoters of Shays’s rebellion and county resolves, and many of the detesters of the present national government, will undoubtedly assist them. Many people think, too, that no small share of a foreign influence, in revenge for certain intractable conduct at the treaty of peace, is and will be intermingled. The janissaries of this goodly combination, among whom are three or four who hesitate at no falsehood, have written all the impudence and impertinence which have appeared in the Boston papers upon this memorable occasion. I must own to you, that the daring traits of ambition and intrigue, and those unbridled rivalries, which have already appeared, are the most melancholy and alarming symptoms that I have ever seen in this country; and if they are to be encouraged to proceed in their course, the sooner I am relieved from the competition, the happier I shall be.<br /><br />I thank you, Sir, very sincerely for writing to me upon this occasion. It was high time that you and I should come to an explanation with each other. The friendship that has subsisted for fifteen years without the smallest interruption, and, until this occasion without the slightest suspicion, ever has been and still is very dear to my heart. There is no office which I would not resign, rather than give a just occasion to one friend to forsake me. Your motives for writing to me I have not a doubt were the most pure and the most friendly; and I have no suspicion that you will not receive this explanation from me in the same friendly light.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-51374811714367845792011-07-17T13:40:00.002-04:002011-07-17T13:40:00.767-04:00Thomas Jefferson to John AdamsPhiladelphia, July 17, 1791<br /><br />Dear Sir,—<br /><br />I have a dozen times taken up my pen to write to you, and as often laid it down again, suspended between opposing considerations. I determine, however, to write, from a conviction that truth between candid minds can never do harm. The first of Paine’s pamphlets on the Rights of Man, which came to hand here, belonged to Mr. Beckley. He lent it to Mr. Madison, who lent it to me; and, while I was reading it, Mr. Beckley called on me for it, and as I had not finished it, he desired me, as soon as I should have done so, to send it to Mr. Jonathan B. Smith, whose brother meant to reprint it. I finished reading it, and, as I had no acquaintance with Mr. Jonathan B. Smith, propriety required that I should explain to him why I, a stranger to him, sent him the pamphlet. I accordingly wrote a note of compliment, informing him that I did it at the desire of Mr. Beckley, and, to take off a little of the dryness of the note, I added that I was glad it was to be reprinted here, and that something was to be publicly said against the political heresies which had sprung up among us, &c. I thought so little of this note, that I did not even keep a copy of it; nor ever heard a tittle more of it, till, the week following, I was thunderstruck with seeing it come out at the head of the pamphlet. I hoped, however, it would not attract notice; but I found, on my return from a journey of a month, that a writer came forward, under the signature of Publicola, attacking not only the author and principles of the pamphlet, but myself as its sponsor, by name. Soon after came hosts of other writers, defending the pamphlet, and attacking you by name, as the writer of Publicola. Thus were our names thrown on the public stage, as public antagonists. That you and I differ in our ideas of the best form of government, is well known to us both; but we have differed as friends should do, respecting the purity of each other’s motives, and confining our difference of opinion to private conversation; and I can declare with truth, in the presence of the Almighty, that nothing was further from my intention or expectation than to have had either my own or your name brought before the public on this occasion. The friendship and confidence which has so long existed between us, required this explanation from me, and I know you too well to fear any misconstruction of the motives of it. Some people who would wish me to be, or to be thought, guilty of improprieties, have suggested that I was Agricola, that I was Brutus, &c., &c. I never did in my life, either by myself or by any other, have a sentence of mine inserted in a newspaper, without putting my name to it; and I believe I never shall.<br /><br />While the Empress is refusing peace under a mediation, unless Oczakow and its territory be ceded to her, she is offering peace on the perfect statu quo to the Porte, if they will conclude it without a mediation. France has struck a severe blow at our navigation by a difference of duty on tobacco carried in our and their ships, and by taking from foreign built ships the capability of naturalization. She has placed our whale oil on rather a better footing than ever, by consolidating the duties into a single one of six livres. They amounted before to some sous over that sum. I am told (I know not how truly) that England has prohibited our spermaceti oil altogether, and will prohibit our wheat till the price there is 52s. the quarter, which it almost never is. We expect hourly to hear the true event of General Scott’s expedition. Reports give favorable hopes of it. Be so good as to present my respectful compliments to Mrs. Adams, and to accept assurances of the sentiments of sincere esteem and respect, with which I am, dear Sir,<br />Your friend and servant,<br /><br />Thomas Jefferson.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-16336192631824666842011-06-19T10:00:00.002-04:002011-06-19T10:00:03.803-04:00Alexander Hamilton to George Washington<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg" alt="" border="0" /></a>June 19, 1791<br /><br />Sir:<br /><br />I have been duly honored with your letter of the 13th inst., from Mount Vernon; and, according to your desire have informed Mr. Wolcott of your intention to appoint him Comptroller. This appointment gives me particular pleasure, as I am confident it will be a great and real improvement in the state of the Treasury Department. There can no material inconvenience attend the postponing a decision concerning the future Auditor till your arrival in this city.<br /><br />I am very happy to learn that the circumstances of your journey have been in all respects so favorable. It has certainly been a particularly fortunate one, and I doubt not it will have been of real utility.<br /><br />There is nothing which can be said to be new here worth communicating, except generally that all my accounts from Europe, both private and official, concur in proving that the impressions now entertained of our government and its affairs (I may say) throughout that quarter of the globe, are of a nature the most flattering and pleasing.<br /><br />(Source: http://oll.libertyfund.org/)HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-35979598873630727932011-06-10T13:37:00.002-04:002011-06-10T13:37:01.645-04:00Henry Knox to John AdamsPhiladelphia, June 10, 1791<br /><br />My dear Sir,—<br /><br />I embrace the occasion of inclosing some letters, to thank you and Mrs. Adams for the comfortable accommodation of your house at Bush Hill. While the inhabitants of this city are panting for breath, like a hunted hare, we experience in the hall at Bush Hill a delightful and animated breeze.<br /><br />The paragraphs in the Connecticut and New York papers, relative to your journey, indicate envy and blackness of heart. Who the author of these articles is, I know not, and it is quite immaterial. But eminence must be taxed.<br /><br />Perhaps the “political heresies,” mentioned in the preface to the American edition of Paine’s pamphlet, as coming from a more respectable quarter, may occasion some uneasiness. But the author has assured me, that the note he wrote to the printer never was intended for publication, but as a sort of apology for having detained the book, which was a borrowed one, longer than the impatience of the printer would admit.<br /><br />But, if the idea was aimed at your doctrines, it ought not to create a moment’s pain. Conscious, as you are, of the invariable pursuit of the public happiness, regulated by the sober standard of reason, it is not the desultory ebullition of this or that man’s mind, that can divert you from your object. For while human nature shall continue its course according to its primary principles, there will be a difference of judgment upon the same objects, even among good men.<br /><br />The President is expected to arrive here about the 23d or 25th instant, but there is no information from him since the 16th of May. He has been perfectly received according to the abilities of the places through which he has passed.<br /><br />The Indian campaign must go forward. We have marched and shall march by the latter end of this month two thousand eight hundred men. This force will be adequate, with the addition of the troops already on the frontiers.<br />I am, &c.<br /><br />H. Knox.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-74732213316592152412011-04-25T10:00:00.003-04:002011-04-25T10:00:00.364-04:00John Adams to Alexander Hamilton<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/john%20adams.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px; height: 130px;" src="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/john%20adams.jpg" alt="" border="0" /></a>Philadelphia, April 25, 1791<br /><br />Dear Sir,—<br /><br />I do myself the honor to transmit to you my accounts which remain unsettled, for the last two years and eight months of my administrations abroad in the service of the United States. I have left a blank for my salary. In my own opinion it is but justice that it should be filled up with the sum of two thousand five hundred pounds sterling a year, because this was the contract under which I accepted my commission for the peace in 1779, and that for their High Mightinesses in 1781, which last continued in force until my return home. The resolution of Congress, which stated the salary of a minister abroad at nine thousand dollars, could not reasonably be intended to operate upon ministers and commissions which had been given and accepted upon different conditions. Such an interpretation of it would make it amount to a breach of public faith. Moreover, I have been well informed by Mr. Gerry, who proposed the alteration, that the reason of this resolution was a supposition that, in that time of peace, the expenses of living in Europe were reduced. This motive was so far from being a just one, as applied to me, that I found the expenses of living in London about a quarter part dearer than I had ever known them in Paris or the Hague. This, therefore, was rather a reason for raising my salary to three thousand pounds sterling a year, which I actually spent, than for reducing it to nine thousand dollars. I have been informed by Mr. Barclay that Dr. Franklin charged, and has been allowed, two thousand five hundred pounds sterling a year till his return, and as I am in the same predicament with him, it is at least as just that it should be allowed to me; indeed, it is more so, because I certainly was obliged to spend more than that sum, and he undoubtedly spent less.<br /><br />I have also requested an allowance for a private secretary. As the business of my mission to Holland, as well as that to England, lay upon me, in addition to my share in all the negotiations with Prussia and the other powers of Europe, as well as the Barbary States, it may readily be conceived that I had a great deal of business and still more writing to do, as copies of all such correspondences must be preserved, and therefore I hope the charge for a private secretary will not be thought unreasonable.<br /><br />An allowance is asked also for one ministerial or diplomatic entertainment for each year. This is done for three reasons: 1. because it is the custom of the whole Corps Diplomatique; 2. because it seems to be a reasonable custom; and 3. because Mr. Franklin has charged and been allowed for all extraordinary entertainments, as I suppose, as he told me he had charged them or should charge them.<br /><br />An outfit I have asked for, amounting to one year’s salary. This will be but a very inadequate compensation to me, for the extraordinary expenses I was put to by the variety of services and multiplicity of commissions which were heaped upon me. My case is singular, and distinguished from that of every other gentleman who has ever been sent abroad in the service of the United States. In 1779, Congress sent me abroad, with two commissions, one to negotiate a peace, and another to his Britannic Majesty to negotiate a treaty of commerce with that power. Under these commissions I went to Paris, and resided there, which obliged me to take a house or apartments ready furnished, and establish a household, equipage, and set of servants there. In 1780, Congress sent me a commission to borrow money in Holland, to the amount of ten millions of dollars. This obliged me to live in Holland. In 1781, Congress sent me a commission to treat with that republic, and a letter of credence to the States-General. This obliged me to hire a house and completely furnish it, because there was no such thing to be hired in Holland as furniture, as might be done and was done by Mr. Deane, Mr. Franklin, Mr. Jay, and myself at Paris. My commission for the peace obliged me to make journeys to Versailles. My commission for borrowing money not only augmented my expenses, but gave me more trouble and occasioned more labor and perplexity than all the other services. The frequent removals from one country to another, the continual change of servants and liveries, the wear and tear of baggage, and destruction of furniture, beside the perpetual plunder I was subjected to in my absence from my house in one country, while attending my duty in another, have wasted and consumed my salary in such a manner, that my family must be deprived of that reward for my time, trouble, risk, and services, which all of us were entitled to, and which some may have been happy enough honestly to secure. I say all of us were entitled to it, because Congress, on the 28th September, 1776, resolved, that their ministers should live in such a style and manner as they might find suitable and necessary to support the dignity of their public character, and that, besides their actual expenses, a handsome allowance be made to each of them, as a compensation for their time, trouble, risk, and services.<br /><br />If the articles I have submitted are allowed me, difficult as it will be to justify myself to my family, I shall be content; but if not, I must crave an allowance of one half per cent., as commissions on nine millions of guilders, by me borrowed in Holland for the United States. When Congress allows four per cent. to the houses of Willink and Van Staphorst, and their undertakers, upon all these loans, which has already amounted to a handsome fortune to each house, it would be extremely hard and unreasonable to oblige me, who had more trouble with every one of these loans than those houses had—nay, who had more trouble with the first of them than they have had with the whole—not only to do this whole business for nothing, but live at my own expense while I did it. This must be my hard fate, if nothing can be allowed me as commissions, nor for extraordinary services. Considerable sums were spent by me, at times, for secret services, and other sums, to no small amount, were advanced to Americans in distress, some of them in prison, and others escaped; but, as I have no vouchers for these and I suppose Congress would not be willing to set a precedent, I make no charge for them, although they were advanced out of my own money—part of my salary. Let me ask the favor of you, Sir, to look over these accounts, and then present them to the auditor, that they may be settled in some way or other by the next session of Congress. With great esteem I have the honor to be, Sir, your most obedient and most humble servant,<br /><br />John Adams.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-16671321917198373172011-04-17T10:00:00.002-04:002011-04-17T10:00:04.868-04:00Alexander Hamilton to George Washington<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg" alt="" border="0" /></a>April 17, 1791<br /><br />You will probably recollect that previous to your departure from this place, anticipating the event which has taken place with regard to the death of Mr. Everleigh, I took the liberty to mention to you that Mr. Wolcott, the present Auditor, would be in every respect worthy of your consideration as his successor in office.<br /><br />Now that the event has happened, a concern as anxious as it was natural for the success of the department, united with a sentiment of justice towards Mr. Wolcott, leads me to a repetition of that idea. This gentleman’s conduct in the station he now fills has been that of an excellent officer. It has not only been good, but distinguished. It has combined all the requisites which can be desired: moderation with firmness, liberality with exactness, indefatigable industry with an accurate and sound discernment, a thorough knowledge of business, and a remarkable spirit of order and arrangement. Indeed, I ought to say that I owe very much of whatever success may have attended the merely executive operations of the department to Mr. Wolcott; and I do not fear to commit myself when I add that he possesses in an eminent degree all the qualifications desirable in a Comptroller of the Treasury—that it is scarcely possible to find a man in the United States more competent to the duties of that station than himself; few who could be equally so. It may be truly said of him that he is a man of rare merit, and I have good evidence that he has been viewed in this light by the members of Congress extensively from different quarters of the Union, and is so considered by all that part of the public who have had opportunities of witnessing his conduct.<br /><br />The immediate relation, too, which his present situation bears to that of Comptroller is a strong argument in his favor. Though a regular gradation of office is not admissible in a strict sense in regard to offices of a civil nature, and is wholly inapplicable to those of the first rank (such as the heads of the great executive departments), yet a certain regard to the relation which one situation bears to another is consonant with the natural ideas of justice, and is recommended by powerful considerations of policy. The expectation of promotion in civil as in military life is a great stimulus to virtuous exertion, while examples of unrewarded exertion, supported by talent and qualification, are proportionable discour agements. Where they do not produce resignations they leave men dissatisfied, and a dissatisfied man seldom does his duty well.<br /><br />In a government like ours, where pecuniary compensations are moderate, the principle of gradual advancement as a reward for good conduct is perhaps more necessary to be attended to than in others where offices are more lucrative. By due attention to it it will operate as a means to secure respectable men for offices of inferior emolument and consequence.<br /><br />In addition to the rest, Mr. Wolcott’s experience in this particular line pleads powerfully in his favor. This experience may be dated back to his office of Comptroller of the State of Connecticut, and has been perfected by practice in his present place.<br /><br />A question may perhaps, sir, arise in your mind, whether some inconvenience may not attend his removal from his present office. I am of opinion that no sensible inconvenience will be felt on this score, since it will be easy for him as Comptroller, who is the immediate superior of the Auditor, to form any man of business for the office he will leave, in a short period of time. More inconvenience would be felt by the introduction of a Comptroller not in the immediate train of the business.<br /><br />Besides this, it may be observed that a degree of inconvenience on this score cannot be deemed an obstacle, but upon the principle which would bar the progress of merit from one station to another.<br /><br />On this point of inconvenience a reflection occurs, which I think I ought not to suppress. Mr. Wolcott is a man of sensibility, not unconscious of his own value, and he doubtless must believe that he has pretensions from situation to the office. Should another be appointed, and he resign, the derangement of the department would truly be distressing to the public service.<br /><br />In suggesting thus particularly the reasons which in my mind operate in favor of Mr. Wolcott, I am influenced by information that other characters will be brought to your view by weighty advocates, and as I think it more than possible that Mr. Wolcott may not be mentioned to you by any other person than myself, I feel it a duty arising out of my situation in the department, to bear my full and explicit testimony to his worth, confident that he will justify by every kind of substantial merit any mark of your approbation which he may receive.<br /><br />I trust, sir, that in thus freely disclosing my sentiments to you, you will be persuaded that I only yield to the suggestions of an honest zeal for the public good, and of a firm conviction that the prosperity of the department under my particular care (one so interesting to the aggregate movements of the government) will be best promoted by transferring the present Auditor to the office of Comptroller of the Treasury.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-47890651516361947662011-02-23T08:00:00.003-05:002011-02-23T08:00:20.540-05:00Alexander Hamilton to George Washington<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg" alt="" border="0" /></a>The Secretary of the Treasury presents his respects to the President, and sends him the opinion required, which occupied him the greatest part of last night.<br /><br />The bill for extending the time of opening subscriptions passed yesterday unanimously to an order for engrossing.<br /><br />Opinion as to the Constitutionality of the Bank of the United States<br /><br />February 23, 1791.<br /><a href="http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=1380&chapter=64326&layout=html&Itemid=27"><span style="font-size:85%;">(Read complete document.)</span></a><br /><br />The Secretary of the Treasury having perused with attention the papers containing the opinions of the Secretary of State and the Attorney-General, concerning the constitutionality of the bill for establishing a national bank, proceeds, according to the order of the President, to submit the reasons which have induced him to entertain a different opinion.<br /><br />It will naturally have been anticipated, that in performing this task he would feel uncommon solicitude. Personal considerations alone, arising from the reflection that the measure originated with him, would be sufficient to produce it. The sense which he has manifested of the great importance of such an institution to the successful administration of the department under his particular care, and an expectation of serious ill consequences to result from a failure of the measure, do not permit him to be without anxiety on public accounts. But the chief solicitude arises from a firm persuasion, that principles of construction like those espoused by the Secretary of State and the Attorney-General would be fatal to the just and indispensable authority of the United States.<br /><br />In entering upon the argument, it ought to be premised that the objections of the Secretary of State and the Attorney-General are founded on a general denial of the authority of the United States to erect corporations. The latter, indeed, expressly admits, that if there be anything in the bill which is not warranted by the Constitution, it is the clause of incorporation.<br /><br />Now it appears to the Secretary of the Treasury that this general principle is inherent in the very definition of government, and essential to every step of the progress to be made by that of the United States, namely: That every power vested in a government is in its nature sovereign, and includes, by force of the term, a right to employ all the means requisite and fairly applicable to the attainment of the ends of such power, and which are not precluded by restrictions and exceptions specified in the Constitution, or not immoral, or not contrary to the essential ends of political society.<br /><br />This principle, in its application to government in general, would be admitted as an axiom; and it will be incumbent upon those who may incline to deny it, to prove a distinction, and to show that a rule which, in the general system of things, is essential to the preservation of the social order, is inapplicable to the United States.<br /><br />The circumstance that the powers of sovereignty are in this country divided between the National and State governments, does not afford the distinction required. It does not follow from this, that each of the portion of powers delegated to the one or to the other, is not sovereign with regard to its proper objects. It will only follow from it, that each has sovereign power as to certain things, and not as to other things. To deny that the Government of the United States has sovereign power, as to its declared purposes and trusts, because its power does not extend to all cases, would be equally to deny that the State governments have sovereign power in any case, because their power does not extend to every case. The tenth section of the first article of the Constitution exhibits a long list of very important things which they may not do. And thus the United States would furnish the singular spectacle of a political society without sovereignty, or of a people governed, without government.<br /><br />If it would be necessary to bring proof to a proposition so clear, as that which affirms that the powers of the Federal Government, as to its objects, were sovereign, there is a clause of its Constitution which would be decisive. It is that which declares that the Constitution, and the laws of the United States made in pursuance of it, and all treaties made, or which shall be made, under their authority, shall be the supreme law of the land. The power which can create the supreme law of the land in any case, is doubtless sovereign as to such case.<br /><br />This general and indisputable principle puts at once an end to the abstract question, whether the United States have power to erect a corporation; that is to say, to give a legal or artificial capacity to one or more persons, distinct from the natural. For it is unquestionably incident to sovereign power to erect corporations, and consequently to that of the United States, in relation to the objects intrusted to the management of the government. The difference is this: where the authority of the government is general, it can create corporations in all cases; where it is confined to certain branches of legislation, it can create corporations only in those cases.<br /><br />Here, then, as far as concerns the reasonings of the Secretary of State and the Attorney-General, the affirmative of the constitutionality of the bill might be permitted to rest. It will occur to the President, that the principle here advanced has been untouched by either of them.<br /><br />For a more complete elucidation of the point, nevertheless, the arguments which they had used against the power of the government to erect corporations, however foreign they are to the great and fundamental rule which has been stated, shall be particularly examined. And after showing that they do not tend to impair its force, it shall also be shown that the power of incorporation, incident to the government in certain cases, does fairly extend to the particular case which is the object of the bill.<br /><br /><span><a href="http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=1380&chapter=64326&layout=html&Itemid=27"><span style="font-size:85%;">(Read complete document.)</span></a></span><br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-28813919756426981782011-02-01T08:00:00.001-05:002011-02-01T08:00:11.744-05:00George Washington to Alexander HamiltonPhiladelphia, February 16, 1791<br /><br />Sir:<br /><br />An act to incorporate the subscribers to the Bank of the United States is now before me for consideration.<br /><br />The constitutionality of it is objected to. It therefore becomes more particularly my duty to examine the ground on which the objection is built. As a means of investigation, I have called upon the Attorney-General of the United States, in whose line it seemed more particularly to be, for his official examination and opinion. His report is, that the Constitution does not warrant the act. I then applied to the Secretary of State for his sentiments on this subject. These coincide with the Attorney-General’s; and the reasons for their opinions having been submitted in writing, I now require, in like manner, yours on the validity and propriety of the above-recited act; and, that you may know the points on which the Secretary of State and the Attorney-General dispute the constitutionality of the act, and that I may be fully possessed of the arguments for and against the measure, before I express any opinion of my own, I give you an opportunity of examining and answering the objections contained in the enclosed papers. I require the return of them when your own sentiments are handed to me (which I wish may be as soon as is convenient); and further, that no copies of them be taken, as it is for my own satisfaction they have been called for.<br /><span style="font-size:85%;"><br />(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com2tag:blogger.com,1999:blog-9026298822230201083.post-46829694029055871072011-01-18T09:00:00.002-05:002011-01-18T09:00:15.387-05:00Alexander Hamilton to William Seton<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg" alt="" border="0" /></a>January 18, 1791<br /><br />My Dear Sir:<br /><br />I have learnt with infinite pain the circumstances of a new bank having started up in your city. Its effects cannot but be in every way pernicious. These extravagant sallies of speculation do injury to the government and to the whole system of public credit, by disgusting all sober citizens and giving a wild air to every thing. ’t is impossible but that three great banks in one city must raise such a mass of artificial credit as must endanger every one of them, and do harm in every view.<br /><br />I sincerely hope that the Bank of New York will listen to no coalition with this newly engendered monster; a better alliance, I am strongly persuaded, will be brought about for it, and the joint force of two solid institutions will, without effort or violence, remove the excrescence which has just appeared, and which I consider as a dangerous tumor in your political and commercial economy.<br /><br />I express myself in these strong terms to you confidentially, not that I have any objection to my opinion being known as to the nature and tendency of the thing.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-75825491520977803892011-01-13T08:00:00.002-05:002011-01-13T08:00:11.914-05:00Alexander Hamilton to Thomas Jefferson<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg" alt="" border="0" /></a>January 13, 1791<br /><br />Dear Sir:—I thank you for the printed papers you have been so obliging as to send.<br /><br />I cannot forbear a conjecture that the communications of the Chargé des Affaires of France are rather expedients to improve a moment in which it is perceived questions concerning navigation are to be discussed, than the effects of serious instructions from his court.<br /><br />Be this as it may, I really have not thought of any substitute for your proposition to which objections do not lie. And, in general, I have doubts of the eligibility of ex-parte concessions, liable to be resumed at pleasure. I had rather endeavor, by a new treaty of commerce with France, to extend reciprocal advantages, and fix them on a permanent basis. This would not only be more solid, but it would, perhaps, be less likely, than apparently gratuitous and voluntary exemptions, to beget discontents elsewhere, especially (as ought to be the case) if each party should be at liberty, for equivalent considerations, to grant like privileges to others. My commercial system turns very much on giving a free course to trade, and cultivating good humor with all the world. And I feel a particular reluctance to hazard any thing, in the present state of our affairs, which may lead to a commercial warfare with any Power; which, as far as my knowledge of examples extends, is commonly productive of mutual inconvenience and injury, and of dispositions tending to a worse kind of warfare. Exemptions and preferences which are not the effect of treaty, are apt to be regarded by those who do not partake in them as proofs of an unfriendly temper towards them.<br /><span style="font-size:85%;"><br />(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-92193628352799850972011-01-01T08:00:00.002-05:002011-01-01T08:00:02.666-05:00Alexander Hamilton to Thomas Jefferson<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg" alt="" border="0" /></a>Philadelphia, January 11, 1791<br /><br />Dear Sir:—I have perused with attention your intended report to the President, and will, as I am sure is your wish, give you my opinion with frankness.<br /><br />As far as a summary examination enables me to judge, I agree in your interpretation of the treaty. The exemption sought does not appear to be claimable as a right. But I am not equally well satisfied of the policy of granting it on the ground you suggest. This, in my mind, stands in a very questionable shape. Though there be a collateral consideration, there is a want of reciprocity in the thing itself; and this is a circumstance which materially affects the general policy of our navigation system. The tendency of the measure would be to place French vessels upon an equal footing with our own in our ports, while our vessels in the ports of France may be subjected to all the duties which are there laid on the mass of foreign vessels. I say the mass of foreign vessels, because the title of “most favored nation” is a very extensive one, the terms being almost words of course in commercial treaties. And consequently our own vessels in the carrying trade between the United States and France would be in a worse situation than French vessels. This is the necessary result of equal privileges on one side and unequal on the other, in favor of the vessels of France.<br /><br />Though, in the present state of the French navigation, little would be to be apprehended from the regulation; yet, when the probable increase of that navigation under a free government is considered, it can hardly be deemed safe to calculate future consequences from the actual situation in this respect.<br /><br />And if the principle of the regulation cannot be deemed safe in a permanent view, it ought not to be admitted temporarily; for inconvenient precedents are always embarrassing.<br /><br />On the whole, I should be of opinion that the introduction of such a principle without immediate reciprocity would be a high price for the advantage which it is intended to compensate.<br /><br />It will, no doubt, have occurred to you that the fund has been mortgaged for the public debt. I do not, however, mention this as an insuperable objection; but it would be essential that the same act which would destroy this source of revenue should provide an equivalent. This I consider as a rule which ought to be sacred, as it affects public credit.<br /><br />I have the honor to be, etc.<br /><br />P. S.—If you have any spare set of the printed papers, I should be obliged by having them.<br /><span style="font-size:85%;"><br />(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com2tag:blogger.com,1999:blog-9026298822230201083.post-73564224231545457802010-12-08T08:00:00.001-05:002010-12-08T08:00:11.990-05:00Second Annual Message of George Washington<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/5_Ask_Gleaves/Greatest_man.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/5_Ask_Gleaves/Greatest_man.jpg" alt="" border="0" /></a>December 8, 1790<br /><br />Fellow-Citizens of the Senate and the House of Representatives<br /><br />In meeting you again I feel much satisfaction in being able to repeat my congratulations on the favorable prospects which continue to distinguish our public affairs. The abundant fruits of another year have blessed our country with plenty and with the means of a flourishing commerce.<br /><br />The progress of public credit is witnessed by a considerable rise of American stock abroad as well as at home, and the revenues allotted for this and other national purposes have been productive beyond the calculations by which they were regulated. This latter circumstance is the more pleasing, as it is not only a proof of the fertility of our resources, but as it assures us of a further increase of the national respectability and credit, and, let me add, as it bears an honorable testimony to the patriotism and integrity of the mercantile and marine part of our citizens. The punctuality of the former in discharging their engagements has been exemplary.<br /><br />In conformity to the powers vested in me by acts of the last session, a loan of 3,000,000 florins, toward which some provisional measures had previously taken place, has been completed in Holland. As well the celerity with which it has been filled as the nature of the terms (considering the more than ordinary demand for borrowing created by the situation of Europe) give a reasonable hope that the further execution of those powers may proceed with advantage and success. The Secretary of the Treasury has my directions to communicate such further particulars as may be requisite for more precise information.<br /><br />Since your last sessions I have received communications by which it appears that the district of Kentucky, at present a part of Virginia, has concurred in certain propositions contained in a law of that State, in consequence of which the district is to become a distinct member of the Union, in case the requisite sanction of Congress be added. For this sanction application is now made. I shall cause the papers on this very transaction to be laid before you.<br /><br />The liberality and harmony with which it has been conducted will be found to do great honor to both the parties, and the sentiments of warm attachment to the Union and its present Government expressed by our fellow citizens of Kentucky can not fail to add an affectionate concern for their particular welfare to the great national impressions under which you will decide on the case submitted to you.<br /><br />It has been heretofore known to Congress that frequent incursion have been made on our frontier settlements by certain banditti of Indians from the northwest side of the Ohio. These, with some of the tribes dwelling on and near the Wabash, have of late been particularly active in their depredations, and being emboldened by the impunity of their crimes and aided by such parts of the neighboring tribes as could be seduced to join in their hostilities or afford them a retreat for their prisoners and plunder, they have, instead of listening to the humane invitations and overtures made on the part of the United States, renewed their violences with fresh alacrity and greater effect. The lives of a number of valuable citizens have thus been sacrificed, and some of them under circumstances peculiarly shocking, whilst others have been carried into a deplorable captivity.<br /><br />These aggravated provocations rendered it essential to the safety of the Western settlements that the aggressors should be made sensible that the Government of the Union is not less capable of punishing their crimes than it is disposed to respect their rights and reward their attachments. As this object could not be effected by defensive measures, it became necessary to put in force the act which empowers the President to call out the militia for the protection of the frontiers, and I have accordingly authorized an expedition in which the regular troops in that quarter are combined with such drafts of militia as were deemed sufficient. The event of the measure is yet unknown to me. The Secretary of War is directed to lay before you a statement of the information on which it is founded, as well as an estimate of the expense with which it will be attended.<br /><br />The disturbed situation of Europe, and particularly the critical posture of the great maritime powers, whilst it ought to make us the more thankful for the general peace and security enjoyed by the United States, reminds us at the same time of the circumspection with which it becomes us to preserve these blessings. It requires also that we should not overlook the tendency of a war, and even of preparations for a war, among the nations most concerned in active commerce with this country to abridge the means, and thereby at least enhance the price, of transporting its valuable productions to their markets. I recommend it to your serious reflections how far and in what mode it may be expedient to guard against embarrassments from these contingencies by such encouragements to our own navigation as will render our commerce and agriculture less dependent on foreign bottoms, which may fail us in the very moments most interesting to both of these great objects. Our fisheries and the transportation of our own produce offer us abundant means for guarding ourselves against this evil.<br /><br />Your attention seems to be not less due to that particular branch of our trade which belongs to the Mediterranean. So many circumstances unite in rendering the present state of it distressful to us that you will not think any deliberations misemployed which may lead to its relief and protection.<br /><br />The laws you have already passed for the establishment of a judiciary system have opened the doors of justice to all descriptions of persons. You will consider in your wisdom whether improvements in that system may yet be made, and particularly whether an uniform process of execution on sentences issuing from the Federal courts be not desirable through all the States.<br /><br />The patronage of our commerce, of our merchants and sea men, has called for the appointment of consuls in foreign countries. It seems expedient to regulate by law the exercise of that jurisdiction and those functions which are permitted them, either by express convention or by a friendly indulgence, in the places of their residence. The consular convention, too, with His Most Christian Majesty has stipulated in certain cases the aid of the national authority to his consuls established here. Some legislative provision is requisite to carry these stipulations into full effect.<br /><br />The establishment of the militia, of a mint, of standards of weights and measures, of the post office and post roads are subjects which I presume you will resume of course, and which are abundantly urged by their own importance.<br />Gentlemen of the House of Representatives:<br /><br />The sufficiency of the revenues you have established for the objects to which they are appropriated leaves no doubt that the residuary provisions will be commensurate to the other objects for which the public faith stands now pledged. Allow me, moreover, to hope that it will be a favorite policy with you, not merely to secure a payment of the interest of the debt funded, but as far and as fast as the growing resources of the country will permit to exonerate it of the principal itself. The appropriation you have made of the Western land explains your dispositions on this subject, and I am persuaded that the sooner that valuable fund can be made to contribute, along with the other means, to the actual reduction of the public debt the more salutary will the measure be to every public interest, as well as the more satisfactory to our constituents.<br />Gentlemen of the Senate and House of Representatives:<br /><br />In pursuing the various and weighty business of the present session I indulge the fullest persuasion that your consultation will be equally marked with wisdom and animated by the love of your country. In whatever belongs to my duty you shall have all the cooperation which an undiminished zeal for its welfare can inspire. It will be happy for us both, and our best reward, if, by a successful administration of our respective trusts, we can make the established Government more and more instrumental in promoting the good of our fellow citizens, and more and more the object of their attachment and confidence.<br /><br />George Washington<br /><br /><span style="font-size:85%;">(Source: http://www.yale.edu/lawweb/avalon/presiden/washpap.htm)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-71812484824069365952010-12-01T08:00:00.003-05:002010-12-01T08:00:02.934-05:00Alexander Hamilton's Heads of Topics For President’s Speech of December 8, 1790<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg" alt="" border="0" /></a>December 1, 1790<br /><br />I.—Confidence that measures for the further support of public credit, and for the payment of the interest and gradual extinguishment of the principal of the public debt, will be pursued with zeal and vigor; and that, as one means to this, a plan for the sale of the western lands will be adopted, which will give them the effect intended, appropriating them to the sinking fund, and which will extend the agriculture of the United States.<br /><br />II.—Felicitation on the success of the measures hitherto adopted for the support of public credit, as witnessed by the rise of American stock, not only in the United States, but in Europe. The public credit cannot but acquire additional energy when it is known that the resources hitherto in activity have been more productive than was calculated upon. As proof not only of the resources of the country, but of the patriotism and honor of the mercantile and marine citizens of the United States, the punctuality of the former in discharging their obligations has been exemplary.<br /><br />III.—Information that a loan of 300,000 florins has been effected in Holland, the terms and disposition of which (as far as any has been made) the Secretary of the Treasury has been directed to explain.<br /><br />IV.—Growing conviction in the minds of the great body of the people of the utility and benefits of a National Government. It is not to be doubted that any symptoms of discontent which may have appeared in particular places, respecting particular measures, will be obviated by a removal of the misapprehensions which may have occasioned them.<br /><br />V.—Communication of the expedition against the Indians, and of the motives to it.<br /><br />VI.—Disturbed situation of Europe, particularly of the great maritime powers. The precautions of a prudent circumspection on the part of the United States ought not to be neglected.<br /><br />VII.—Almost total interruption of our Mediterranean trade, from the dread of piratical depredations. Great importance of opening that trade, and expediency of considering whether protection cannot be afforded to it.<br /><br />IX.—Symptoms of greater population than was supposed—a further proof of progressive strength and resource.<br /><br />X.—Remarks on the abundance of the harvests, affording an assurance of internal plenty, and the means of easy payment for foreign supplies.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-89255730348037187422010-11-28T00:00:00.000-05:002010-11-28T00:00:01.022-05:00James Madison to James Madison, Sr.Philadelphia, November 28, 1790<br /><br />Hon’d Sir<br /><br />We arrived here yesterday was a week without any occurrence on the road worth mentioning. The President arrived yesterday & the members are coming in for Congress. I have made inquiry with regard to the articles you want, and send you the inclosed paper which will give you information not only with respect to them, but all others in the market here. The high price of sugar makes it advisable I think not to purchase at present. Coffee seems low enough but I do not see any probability of a rise that will be more than equivalent to the loss of the money vested in an article stored away. I shall however await your instructions on this point as well as others; or if I should meet with a bargain on account either of cheapness or quality, perhaps embrace it for you.<br /><br />The price of securities at which Majr Moore’s certificates would have been sold is 12/6 in the pound, at which of course you are to settle with him. I have forwarded his letter to his son John, with 3 half Jos. & notice of the fund in my hands for him. Of this you will inform my Uncle.<br /><br />I hope this will find all well and my bro’r Ambrose restored. Tell him I shall expect to hear often from him as well as yourself. I hope you have not forgotten to pay Majr. Lee, and that Robin & the will have given Sawney the aids necessary for the jobb I left unfinished. With my love to my mother & regards for the family I remain your afft son.HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com2tag:blogger.com,1999:blog-9026298822230201083.post-80745490511571985752010-09-01T08:00:00.002-04:002010-09-01T08:00:10.231-04:00Alexander Hamilton to William Short<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/images/hauenstein/3_Features/Hamilton_Blog.jpg" alt="" border="0" /></a>Treasury Department, September 1, 1790<br /><br />Sir:—Two acts of the Legislature, of the fourth and twelfth of August, of which I inclose you copies, authenticated according to law, empower the President to cause to be borrowed on their behalf fourteen millions of dollars, subject to certain restrictions and qualifications, to be applied in payment of such part of our foreign debt as shall have become due, and to a new modification of the remainder, if it can be effected upon terms beneficial to the United States. The execution of this authority he has committed immediately to me, and ultimately through me to you; except as to three millions of florins, part of the above sum, of which, as you are informed, a loan has been anticipated by Messrs. Willinks, Van Staphorsts, and Hubbard, and of which a confirmation, with correspondent powers, has been sent directly to them. Among the documents which accompany this letter you will find a copy of the commission from the President to me, and a power founded on it from me to you.<br /><br />It remains for me to give you some indications for your government, conformable to the general tenor of the instructions which I have received from the President, and of which I transmit a copy; premising that it is understood, between the Secretary of State and myself, that you are to proceed to Amsterdam without delay, and to continue there, in the first instance, for a term not less than three months.<br /><br />A primary and principal object of your attention will be, to acquire as exact knowledge as may be of the footing upon which the different foreign powers who borrow in Holland have usually obtained their loans, since the commencement of our independence, and upon which they at present obtain them; the prices of foreign stock in the Dutch market, including our own; the state of our credit compared with that of other nations; the extent and the conditions to and upon which we shall be likely to borrow in case of war between England and Spain, and in the alternative of our being ourselves at peace or war; the principal houses and brokers concerned in the negotiations of foreign loans; their characters; comparative solidity and influence with the money-lenders; the terms upon which their agency is afforded to their employers; the manner in which those whom we have heretofore employed are understood to have conducted themselves in relation to our interest and credit; and particularly their solidity and influence with the money-lenders.<br /><br />Most if not all these inquiries will be immediately serviceable to you. They will all be productive of information useful to my department; and I will therefore thank you for successive communications of the result.<br /><br />One consequence of them to you will be, that they will enable you to judge whether our confidence in our former commissioners or agents ought to be continued, or withdrawn in order to the substitution of others; or, if continued, whether the terms of their agency may not be meliorated; or whether, with their consent, some other house or houses may not be combined with them, with an increase of credit and resource to us.<br /><br />These, as you will be sensible, are delicate points. They are, however, left to your prudence and discretion, according as facts shall be ascertained to you.<br /><br />I shall only remark, that changes of public servants ought never to be made but for cogent reasons. If lightly made, they are not only chargeable with injustice and are a symptom of fickleness in the public counsels, but they destroy the motives to good conduct, and, in money concerns especially, are apt to beget a disposition to make the most of possession while it lasts. Circumspection in the present case is also recommended by the consideration that those whom we have heretofore trusted risked themselves and their fortunes upon our affairs, when the doing it was not without serious hazard. This is a reason for permitting them to reap the benefits of our more prosperous days, if they have been faithful and are adequate to the trust. A further reason is, that they are now deeply interested in our funds, and consequently, it is presumable, in our credit. Competition and variance once existed between the house of Willinks and that of the Van Staphorsts; but these appear some time since to have been compromised. The latter have most merit for early exertions, the former are said to be most solid. This union is desirable for the greater security it affords.<br /><br />Suggestions of this nature are not dictated by any distrust of the fidelity or good conduct of our former commissioners. As far as I know, they deserve well of us. My object is, in entering upon a new stage of our affairs, to have the ground over which we have passed well examined, that we may the better judge whether to continue or alter our course.<br /><br />In the consideration of our foreign debt, it naturally divides itself into two parts; that which is now payable, and that which will be payable hereafter. The first we are bound to discharge as soon as may be, and upon the best terms we can. The last we are not bound to discharge but as the times of payment elapse, and therefore are not called upon to do it unless some positive advantage accrues from it to ourselves. This view of the matter governs the instructions of the President to me, which, of course, regulate mine to you.<br /><br />You are accordingly to borrow, on the best terms which shall be found practicable, within the limitations prescribed by law, such sum or sums as shall be sufficient to discharge as well all instalments or parts of the principal of the foreign debt, which now are due or shall become payable to the end of the year one thousand seven hundred and ninety-one, as all interest and arrears of interest which now are or shall become due in respect to the said debt to the same end of the year one thousand seven hundred and ninety-one. But you shall not extend the amount of the loans which you shall make or cause to be made beyond the sum which shall be requisite for that purpose, unless it can be done upon terms more advantageous to the United States than those upon which the residue of the said debt shall stand or be.<br /><br />And in order that you may judge what will be due to the end of the year one thousand seven hundred and ninety-one, I refer you to the papers marked A and B, which contain statements of principal and arrears of interest of our foreign loans to that period; and shall, by the next opportunity, send you a copy of the contracts respecting them, from which you will derive a more accurate knowledge of their terms.<br /><br />You will perceive, by the act which authorizes the loan for paying off the foreign debt, that there is no other restriction as to the terms except that, in the contracts to be made, the United States shall be left at liberty to reimburse the sum borrowed, within a period not exceeding fifteen years. As this seems to be the usual period for the reimbursement of moneys borrowed in Holland, that restriction can constitute no embarrassment.<br /><br />In the second act there is no restriction as to time of repayment, but there is one as to the rate of interest, which must not exceed five per cent. This, however, I consider as compatible with the allowance of those premiums, commissions, and other charges which are customary in ordinary times; and which, I am informed, are, in the aggregate, about four and a half per cent. But the allowance of unusual or extraordinary premiums to obtain loans upon a nominal interest of five per cent., as well because it is a pernicious mode of borrowing as because it would be an invasion of the law, is inadmissible.<br /><br />If war should continue or become more general in Europe, it is to be apprehended that the demand for money will raise its price upon us, and that loans will not be practicable upon so good terms as in time of peace. The situation of this country, too, authorizes us to expect that as our resources become more unfolded and better understood, we shall be able to borrow upon easier terms than we have at any time heretofore done. On both these accounts it would be very desirable, while we did not oblige ourselves to reimburse the principal borrowed in less than fifteen years, commencing at the end of ten, that we could stipulate for a right of reimbursing it sooner,—that is to say, either upon giving notice of our intention to do it for a limited time beforehand, or at the end of a short period, say five years. I should consider a stipulation of this kind as a valuable ingredient in your contracts.<br /><br />I have intimated above the inexpediency of extraordinary premiums to purchase a nominal low rate of interest. Against this error I would particularly guard you. It is sacrificing a real future interest to an appearance, at best, to temporary accommodation. A higher rate of interest upon a sum actually received, is preferable to a lower rate upon a nominal sum, with large deductions in the first instance, or considerable premiums afterwards; this will be more especially the case if we can reserve a right to repay when we please or after a short period; as we may reasonably contemplate, with the return of peace, a fall of interest.<br /><br />But every thing of this kind is, after all, matter of calculation, and to be tested by the evidence of figures. I can only, therefore, mean to give you a caution, referring you to that test, and intimating to you this general principle, that the name of a low interest ought not to betray us into giving more for it in the shape of premium or discount than it is worth, and that, as we shall borrow at a time when circumstances will render interest high, we had better pay that interest on actual value received, than a lower one on a fictitious value, or for future and exaggerated compensations; reserving, as far as it can be done, the right of paying off at pleasure, or at an early period. The future fall of interest will, in the first case, turn to our advantage, in the last, to our disadvantage.<br /><br />You will not pass unnoticed the circumstance that the laws contain actual appropriations of very adequate funds for the payment of interest upon the sums you shall borrow. The first act, indeed, after reserving six hundred thousand dollars for the support of government, gives a priority in payment to the foreign debt out of revenues which are calculated upon the estimate of a much larger product. You may confidently assert that the duties hitherto have produced at the rate of one million eight hundred thousand dollars; which alone would leave twelve hundred thousand dollars, as the fund out of which the interest on your loans would be payable. But the augmentations which have been made in the rates are computed to be capable of affording an addition of eight hundred thousand dollars; and I believe the computation to be well founded.<br /><br />You will also, no doubt, make a proper use in your communications of the actual situation and future prospects of this country. The economical scale of our establishments, civil and military; the comparative smallness of our debt; the reliance which may be had on the stability of our pecuniary arrangements once made, from the nature of our government in respect to the mutual checks inherent in its organization; the rapid progression of population and resources to which we may look forward; the actual and probable emigrations occasioned by the troubled state of Europe; the hope that we shall continue in peace, while other Powers are accumulating their debts by new wars; the very favorable situation in which we shall find ourselves at the end of a general war in Europe, if we avoid participating in it, etc., etc. These are topics which ought to have weight in our favor, and, within due limits, may be urged with force and assurance.<br /><br />With regard to that part of the debt which does not become payable till after the year one thousand seven hundred and ninety-one, you will have observed that nothing is to be done by you in respect to it, unless it can be done upon terms of advantage to the United States. However cordial our disposition to come to the pecuniary aid of France in her present affecting and embarrassed condition, in this early stage of our finances we could not in prudence volunteer payments not due by the terms of the contract, especially, too, by the expedient of new foreign loans, unless it should be attended with some circumstance of advantage in the operation to ourselves. By this I understand a lower rate of interest.<br /><br />For, according to my speculations on the probable rate of exchange between this country, France, and Holland, and between Holland and France for some years to come, I deem it better (whether our payments proceed directly from hence, or circuitously through Holland) to have to pay a given sum to France, than an equal sum to Holland.<br /><br />The charges too upon the new loans will have to be taken into the account, and an indemnity for them included in the terms of the operation. Calculating only upon the ordinary ones, it does not appear to me that it would be the interest of the United States to change the form of this debt, unless the rate of interest on the new loans did not exceed four per cent. And I own that, in the present aspect of affairs, I see no ground to expect that loans will be obtained at so low a rate.<br /><br />If the thing should be possible, it must be on the score of some collateral advantages to the lenders; such, for instance, as their being permitted to pay a part in the effects or stock of France, as was contemplated in the last negotiations. Whether any arrangement of this nature will be a desirable accommodation to France; whether persons of real capital, who would not in the execution be obliged to use means prejudicial to the credit of the United States, would be willing to embark in such a plan; whether it would prove an obstacle to other loans which we may have occasion to make for other purposes, are circumstances essential in determining its eligibility, which cannot be known to me, and can only be accurately judged of by one on the spot.<br /><br />I suggest them as hints to you. In exploring or feeling the ground, you will recollect that propositions of such a nature ought not to come from us. If the thing should be capable of being placed upon a footing conducive to our interests, we ought only to appear to sanction what other parties desire of us. And we should in no event make any movement that may injure our reputation, or place us in the light of a people desirous of making hard bargains at the expense of friends.<br /><br />Neither can I authorize you to conclude any general arrangement of this nature, without a previous communication of it to me, to be submitted to the consideration of the President; there being a separate instruction from him to me, that no loan shall be opened for more than a million of dollars, and that no new loan shall be undertaken until the preceding one shall have been announced to him, and shall have received his sanction.<br /><br />This limitation, therefore, in all your proceedings, you will of course attend to, and you will perceive the utility of making the earliest communication of every loan you shall set on foot, in order that you may know the determination of the President before its completion, and be prepared in time to commence another.<br /><br />It has been suggested that loans may be made with advantage in certain parts of Italy. I do not count on this resource, but I shall be glad to know how far, from inquiry, it shall appear to be an eligible field for an experiment.<br /><br />With regard to the application of the moneys to be borrowed, you will, from time to time, receive special directions.<br /><br />The foregoing are the only observations which the time I have will permit me to make. They contain general indications of the course you are to pursue; the rest must be left to your judgment, circumspection, and delicacy. I doubt not you will be duly impressed with the importance of the trust; how much the interest and reputation of our government are concerned in its proper execution. And I feel a confidence that they will not suffer in your hands.<br /><br />P. S.—I send for your information a copy of my letter to Messrs. Willinks & Co., by which you will perceive the footing on which the provisional loan of three millions of florins is placed.<br /><span style="font-size:85%;"><br />(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-12286135865987093892010-08-29T10:00:00.004-04:002010-08-29T10:00:03.542-04:00John Adams to George Washington<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/john%20adams.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px; height: 130px;" src="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/john%20adams.jpg" alt="" border="0" /></a>New York, August 29, 1790<br /><br />Sir,—<br /><br />That New Orleans and the Spanish posts on the Mississippi will be among the first attempts of the English, in case of a war with Spain, appears very probable; and that a combined operation from Detroit would be convenient to that end, cannot be doubted. The consequences on the western settlements, on the commerce with the West Indies, and on the general security and tranquillity of the American Confederation, of having them in our rear and on both our flanks, with their navy in front, are very obvious.<br /><br />The interest of the United States duly weighed, and their duty conscientiously considered, point out to them, in the case of such a war, a neutrality, as long as it may be practicable. The people of these States would not willingly support a war, and the present government has not strength to command, nor enough of the general confidence of the nation to draw, the men or money necessary, until the grounds, causes, and necessity of it should become generally known and universally approved. A pacific character, in opposition to a warlike temper, a spirit of conquest, or a disposition to military enterprise, is of great importance to us to preserve in Europe; and, therefore, we should not engage, even in defensive war, until the necessity of it should become apparent, or, at least, until we have it in our power to make it manifest in Europe as well as at home.<br /><br />In order to preserve an honest neutrality, or even the reputation of a disposition to it, the United States must avoid, as much as possible, every real wrong, and even every appearance of injury to either party. To grant to Lord Dorchester, in case he should request it, permission to march troops through the territory of the United States, from Detroit to the Mississippi, would not only have an appearance, offensive to the Spaniards, of partiality to the English, but would be a real injury to Spain. The answer, therefore, to his Lordship, should be a refusal, in terms clear and decided, but guarded and dignified; in a manner which no power has more at command than the President of the United States.<br /><br />If a measure so daring, offensive, and hostile, as the march of troops through our territory to attack a friend, should be hazarded by the English without leave, or especially after a refusal, it is not so easy to answer the question what notice ought to be taken of it.<br /><br />The situation of our country is not like that of most of the nations in Europe. They have, generally, large numbers of inhabitants in narrow territories. We have small numbers scattered over vast regions. The country through which the Britons must pass from Detroit to the Mississippi is, I suppose, so thinly inhabited, and at such a distance from all the populous settlements, that it would be impossible for the President of the United States to collect militia or march troops sufficient to resist the enterprise. After the step shall have been taken, there are but two ways for us to proceed; one is war, and the other negotiation. Spain would probably remonstrate to the President of the United States; but whether she should or not, the President of the United States should remonstrate to the King of Great Britain. It would not be expected, I suppose, by our friends or enemies, that the United States should declare war at once. Nations are not obliged to declare war for every injury, or even hostility. A tacit acquiescence, under such an outrage, would be misinterpreted on all hands; by Spain as inimical to her, and by Britain as the effect of weakness, disunion, and pusillanimity. Negotiation, then, is the only other alternative.<br /><br />Negotiation, in the present state of things, is attended with peculiar difficulties. As the King of Great Britain twice proposed to the United States an exchange of ministers, once through Mr. Hartley, and once through the Duke of Dorset, and when the United States agreed to the proposition, flew from it; to send a minister again to St. James’s, till that court explicitly promises to send one to America, is a humiliation to which the United States ought never to submit. A remonstrance from sovereign to sovereign cannot be sent but by an ambassador of some order or other; from minister of state to minister of state it might be transmitted in many other ways. A remonstrance, in the form of a letter from the American Minister of State to the Duke of Leeds, or whoever may be secretary of state for foreign affairs, might be transmitted through an envoy, minister plenipotentiary, or ambassador of the President of the United States at Paris, Madrid, or the Hague, and through the British ambassador at either of those courts. The utmost length that can be now gone, with dignity, would be to send a minister to the court of London, with instructions to present his credentials, demand an audience, make his remonstrance; but to make no establishment, and demand his audience of leave, and quit the kingdom in one, two, or three months, if a minister of equal degree were not appointed, and actually sent, to the President of the United States from the King of Great Britain.<br /><br />It is a misfortune that, in these critical moments and circumstances, the United States have not a minister of large views, mature age, information, and judgment, and strict integrity, at the courts of France, Spain, London, and the Hague. Early and authentic intelligence from those courts may be of more importance than the expense; but, as the representatives of the people, as well as of the legislatures, are of a different opinion, they have made a very scanty provision for but a part of such a system. As it is, God knows where the men are to be found who are qualified for such missions, and would undertake them. By an experience of ten years, which made me too unhappy at the time to be ever forgotten, I know that every artifice which can deceive, every temptation which can operate on hope or fear, ambition or avarice, pride or vanity, the love of society, pleasure, or amusement, will be employed to divert and warp them from the true line of their duty, and the impartial honor and interest of their country.<br /><br />To the superior lights and information derived from office, the more serene temper and profound judgment of the President of the United States, these crude and hasty thoughts concerning the points proposed are humbly submitted, with every sentiment of respect and sincere attachment, by his<br />Most obedient and most humble servant,<br /><br />John Adams.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-79680690225754024332010-08-27T10:00:00.002-04:002010-08-27T10:00:00.326-04:00George Washington to John AdamsUnited States, August 27, 1790<br /><br />Provided the dispute between Great Britain and Spain should come to the decision of arms, from a variety of circumstances (individually unimportant and inconclusive, but very much the reverse when compared and combined) there is no doubt in my mind that New Orleans and the Spanish posts above it on the Mississippi will be among the first attempts of the former, and that the reduction of them will be undertaken by a combined operation from Detroit.<br /><br />The consequences of having so formidable and enterprising a people as the British on both our flanks and rear, with their navy in front, as they respect our western settlements which may be seduced thereby, as they regard the security of the Union and its commerce with the West Indies, are too obvious to need enumeration.<br /><br />What, then, should be the answer of the executive of the United States to Lord Dorchester, in case he should apply for permission to march troops through the territory of the said States from Detroit to the Mississippi?<br /><br />What notice ought to be taken of the measure, if it should be undertaken without leave, which is the most probable proceeding of the two?<br /><br />Mr. Adams will oblige the President of the United States by giving his opinion in writing on the above statement.<br /><br />George Washington.<br /><br /><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-24908115225273136062010-08-26T08:00:00.002-04:002010-08-26T08:00:03.813-04:00Thomas Jefferson Opinion on Foreign Debt<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/blog_jefferson.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/blog_jefferson.jpg" alt="" border="0" /></a>August 26, 1790<br /><br />Opinion respecting our foreign debt.<br /><br />On consideration of the letter of our banker, of January 25th, 1790, the Secretary of the Treasury’s answer to it, and the draught of powers and instructions to him, I am of opinion, as I always have been, that the purchase of our debt to France by private speculators, would have been an operation extremely injurious to our credit; and that the consequence foreseen by our banker, that the purchasers would have been obliged, in order to make good their payments, to deluge the markets of Amsterdam with American paper of all sorts, and to sell it at any price, was a probable one. And the more so, as we know that the particular individuals who were engaged in that speculation, possess no means of their own adequate to the payments they would have had to make. While we must not doubt that these motives, together with a proper regard for the credit of the United States, had real and full weight with our bankers, towards inducing them to counterwork these private speculations; yet, to ascribe their industry in this business wholly to these motives, might lead to a too great and dangerous confidence in them. It was obviously their interest to defeat all such speculations, because they tended to take out of their hands, or at least to divide with them, the profits of the great operation of transferring the French debt to Amsterdam, an object of first-rate magnitude to them, and on the undivided enjoyments of which they might count, if private speculators could be baffled. It has been a contest of dexterity and cunning, in which our champions have obtained the victory. The manœuvre of opening a loan of three millions of florins, has, on the whole, been useful to the United States, and though unauthorized, I think should be confirmed. The measure proposed by the Secretary of the Treasury, of sending a superintendent of their future operations, will effectually prevent their doing the like again, and the funding laws leave no danger that such an expedient might at any future time be useful to us.<br /><br />The report of the Secretary of the Treasury and the draught of instructions, present this plan to view: First, to borrow on the best terms we can, not exceeding those limited by the law, such a sum as may answer all demands of principal or interest of the foreign debts, due, or to become due before the end of 1791. (This I think he supposes will be about three and a half millions of dollars.) Second, to consider two of the three millions of florins already borrowed by our bankers as, so far, an execution of this operation; consequently, there will remain but about two and a half millions of dollars to be borrowed on the old terms. Third, to borrow no more as yet, towards completing the transfer of the French debt to Amsterdam, unless we can do it on more advantageous terms. Fourth, to consider the third million of florins already borrowed by our bankers, as, so far, an execution of the powers given the President to borrow two millions of dollars, by the act of the 12th of August. The whole of this appears to me to be wise. If the third million be employed in buying up our foreign paper, on the exchange of Amsterdam, by creating a demand for that species of paper, it will excite a cupidity in the monied men to obtain more of it by new loans, and consequently enable us to borrow more and on lower terms. The saving of interest, too, on the sum so to be bought, may be applied in buying up more principal, and thereby keep this salutary operation going.<br /><br />I would only take the liberty of suggesting the insertion of some such clause as the following, into the instructions: “The agents to be employed shall never open a loan for more than one million of dollars at a time, nor open a new loan till the preceding one has been filled, and expressly approved by the President of the United States.” A new man, alighting on the exchange of Amsterdam, with powers to borrow twelve millions of dollars, will be immediately beset with bankers and brokers, who will pour into his ear, from the most unsuspected quarters, such informations and suspicions as may lead him exactly into their snares. So wonderfully dexterous are they in wrapping up and complicating their propositions, they will make it evident, even to a clear-headed man, (not in the habit of this business,) that two and two make five. The agent, therefore, should be guarded, even against himself, by putting it out of his power to extend the effect of any erroneous calculation beyond one million of dollars. Were he able, under a delusive calculation, to commit such a sum as twelve millions of dollars, what would be said of the government? Our bankers told me themselves that they would not choose, in the conduct of this great loan, to open for more than two or three millions of florins at a time, and certainly never for more than five. By contracting for only one million of dollars at a time, the agent will have frequent occasions of trying to better the terms. I dare say that this caution, though not expressed in the instructions, is intended by the Secretary of the Treasury to be carried into their execution. But, perhaps, it will be desirable for the President, that his sense of it also should be expressed in writing.<br /><span style="font-size:85%;"><br />(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-16570164185414325982010-08-22T08:00:00.002-04:002010-08-22T08:00:01.943-04:00Thomas Jefferson on Navigation of the Mississippi<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/blog_jefferson.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/blog_jefferson.jpg" alt="" border="0" /></a>August 22, 1790<br /><br />We have a right to the navigation of the Mississippi—1, by Nature; 2, by Treaty.<br /><br />It is necessary to us. More than half the territory of the United States is on the waters of that river. Two hundred thousand of our citizens are settled on them, of whom forty thousand bear arms. These have no other outlet for their tobacco, rice, corn, hemp, lumber, house timber, ship timber.<br /><br />We have hitherto respected the indecision of Spain, because we wish peace;—because our western citizens have had vent at home for their productions.<br /><br />A surplus of production begins now to demand foreign markets. Whenever they shall say, “We cannot, we will not, be longer shut up,” the United States will be reduced to the following dilemma: 1. To force them to acquiescence. 2. To separate from them, rather than take part in a war against Spain. 3. Or to preserve them in our Union, by joining them in the war.<br /><br />The 1st is neither in our principles, nor in our power. 2d. A multitude of reasons decide against the second. It may suffice to speak out one: were we to give up half our territory rather than engage in a just war to preserve it, we should not keep the other half long. 3d. The third is the alternative we must adopt.<br /><br />How are we to obtain that navigation?<br /><br />(A.) By Force.<br /><br />I. Acting separately. That we can effect this with certainty and promptitude, circumstances decide.<br /><br />Objection. We cannot retain New Orleans, for instance, were we to take it.<br /><br />Answer. A moderate force may be so secured, as to hold out till succored. Our succors can be prompt and effectual. Suppose, after taking it, we withdraw our force. If Spain retakes it by an expedition, we can recover it by a counter-expedition, and so as often as the case shall happen. Their expedition will be slow, expensive, and lead to catastrophes. Ours sudden, economical, and a check can have no consequences. We should associate the country to our Union. The inhabitants wish this. They are not disposed to be of the Spanish government. It is idle in Spain to suppose our Western inhabitants will unite with them. They could be quiet but a short time under a goverment so repugnant to their feelings. Were they to come under it for present purposes, it would be with a view to throw it off soon. Should they remain, they would communicate a spirit of independence to those with whom they should be mixed.<br /><br />II. Acting in conjunction with Great Britain, and with a view to partition. The Floridas (including New Orleans) would be assigned to us. Louisiana (or all the Western waters of the Mississippi) to them. We confess that such an alliance is not what we would wish. Because it may eventually lead us into embarrassing situations with our best friend, and put the power of two neighbors into the hands of one. L. Lansdowne has declared he gave the Floridas to Spain rather than the United States as a bone of discord with the House of Bourbon, and of re-union with Great Britain. Connolly’s attempt (as well as other facts) proves they keep it in view.<br /><br />(B.) By Negotiation.<br /><br />I. What must Spain do of necessity. The conduct of Spain has proved that the occlusion of the Mississippi is system with her. If she opens it now, it will be because forced by imperious circumstances. She will consequently shut it again when these circumstances cease. Treaty will be no obstacle. Irregularities, real or pretended, in our navigators, will furnish color enough. Perpetual broils, and finally war will ensue. Prudence and even necessity, imposes on us the law of settling the matter now, finally, and not by halves. With experience of the past and prospect of the future, it would be imbecility in us to accept the naked navigation. With that, we must have what is necessary to its use, and without which it would be useless to secure its continuance; that is, a port near the mouth to receive our vessels and protect the navigation. But even this will not secure the Floridas and Louisiana against Great Britain. If we are neutral, she will wrest those possessions from Spain. The inhabitants (French, English, Scotch, American) would prefer England to Spain.<br /><br />II. What then had Spain better do of choice? Cede to us all the territory on our side of the Mississippi: on condition that we guarantee all her possessions on the Western waters of that river, she agreeing further, to subsidize us if the guarantee brings us into the war.<br /><br />Should Great Britain possess herself of the Floridas and Louisiana, her governing principles are conquest, colonization, commerce, monopoly. She will establish powerful colonies in them. These can be poured into the Gulf of Mexico for any sudden enterprise there, or invade Mexico, their next neighbor, by land. Whilst a fleet co-operates along shore, and cuts off relief. And proceed successively from colony to colony.<br /><br />With respect to us, if Great Britain establishes herself on our whole land-board our lot will be bloody and eternal war, or indissoluble confederacy. Which ought we to choose? What will be the lot of the Spanish colonies in the jaws of such a confederacy? What will secure the ocean against the monopoly?<br /><br />Safer for Spain that we should be her neighbor, than England. Conquest not in our principles: inconsistent with our government. Not our interest to cross the Mississippi for ages. And will never be our interest to remain united with those who do. Intermediate chances save the trouble of calculating so far forward.<br /><br />Consequences of this cession, and guarantee: 1. Every subject of difference will be removed from between Spain and the United States. 2. Our interest will be strongly engaged in her retaining her American possessions. 3. Spain will be quieted as to Louisiana, and her territories west of that. 4. She may employ her whole force in defence of her islands and Southern possessions. 5. If we preserve our neutrality, it will be a very partial one to her. 6. If we are forced into the war, it will be, as we wish, on the side of the House of Bourbon. 7. Her privateers will commit formidable depredation on the British trade, and occupy much of their force. 8. By withholding supplies of provision, as well as by concurring in expeditions, the British islands will be in imminent danger. 9. Their expenses of precaution, both for their continental and insular possessions, will be so augmented as to give a hope of running their credit down. In fine, for a narrow slip of barren, detached and expensive country, Spain secures the rest of her territory, and makes an ally where she might have a dangerous enemy.<br /><span style="font-size:85%;"><br />(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-9173205766485923102010-08-14T00:00:00.000-04:002010-08-14T00:00:01.014-04:00James Madison to James Madison, Sr.New York, August 14, 1790<br /><br />Hond Sir<br /><br />Cong. not having closed their Session till the day before yesterday, and the weather being extremely hot, I have thought it necessary in order to avoid the danger of a bilious attack to which I am become very subject, to wait here a few weeks which will render the journey more safe, and afford me moreover the pleasure of Mr. Jeffersons company quite to Orange. This resolution puts it out of my power to be within the district by the time of the election, and makes it proper that I should intimate the cause of it to a friend in each County. The inclosed are part of the letters written for that purpose.1 I fear the time may be short for conveying them, but hope opportunities may be found. The letter which is not directed is meant for each one of the gentlemen in Louisa, as you and my brother A may think most proper Should the High Sheriff be not improper, perhaps it would be as well for you to address it to him. Perhaps also my brother Ambrose may find it convenient to be at the Election in Louisa. The Letter for Col: Pendleton will be best in the hands of my brother William who I presume will attend in Culpeper. Two of the letters being unsealed I refer to their contents, remaining your afft son.<br /><br />N. B. I have recd. the letter for Mr Jos Chew &c.HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com0tag:blogger.com,1999:blog-9026298822230201083.post-80470809992673923482010-08-11T08:00:00.001-04:002010-08-11T08:00:03.009-04:00George Washington Regarding the Treaty with the Creeks<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/5_Ask_Gleaves/Greatest_man.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/5_Ask_Gleaves/Greatest_man.jpg" alt="" border="0" /></a>United States, August 11, 1790<br /><br />Gentlemen of the Senate:<br /><br />Although the treaty with the Creeks may be regarded as the main foundation of the future peace and prosperity of the Southwestern frontier of the United States, yet in order fully to effect so desirable an object the treaties which have been entered into with the other tribes in that quartet must be faithfully performed on our parts.<br /><br />During the last year I laid before the Senate a particular statement of the case of the Cherokees. By a reference to that paper it will appear that the United States formed a treaty with the Cherokees in November, 1785; that the said Cherokees thereby placed themselves under the protection of the United States and had a boundary assigned them; that the white people settled on the frontiers had openly violated the said boundary by intruding on the Indian lands; that the United States in Congress assembled did, on the 1st day of September, 1788, issue their proclamation forbidding all such unwarrantable intrusions, and enjoined all those who had settled upon the hunting grounds of the Cherokees to depart with their families and effects without loss of time, as they would answer their disobedience to the injunctions and prohibitions expressed at their peril.<br /><br />But information has been received that notwithstanding the said treaty and proclamation upward of 500 families have settled on the Cherokee lands exclusively of those settled between the fork of French Broad and Holstein rivers, mentioned in the said treaty.<br /><br />As the obstructions to a proper conduct on this matter have been removed since it was mentioned to the Senate on the 22d of August, 1789, by the accession of North Carolina to the present Union and the cessions of the land in question, I shall conceive myself bound to exert the powers intrusted to me by the Constitution in order to carry into faithful execution the treaty of Hopewell, unless it shall be thought proper to attempt to arrange a new boundary with the Cherokees, embracing the settlements, and compensating the Cherokees for the cessions they shall make on the occasion. On this point, therefore, I state the following questions and request the advice of the Senate thereon:<br /><br />First. Is it the judgment of the Senate that overtures shall be made to the Cherokees to arrange a new boundary so as to embrace the settlements made by the white people since the treaty of Hopewell, in November, 1785 ?<br /><br />Second. If so, shall compensation to the amount of _____ dollars annually, or of _____ dollars in gross, be made to the Cherokees for the land they shall relinquish, holding the occupiers of the land accountable to the United States for its value?<br /><br />Third. Shall the United States stipulate solemnly to guarantee the new boundary which may be arranged?<br /><br />Go WASHINGTON.<br /><br /><span style="font-size:85%;">(Source: http://www.yale.edu/lawweb/avalon/presiden/washpap.htm)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1tag:blogger.com,1999:blog-9026298822230201083.post-81291014727180104252010-08-10T08:00:00.001-04:002010-08-10T08:00:03.591-04:00Thomas Jefferson to William Short, U.S. Charge d'Affaires in France<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/blog_jefferson.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://main.gvsu.edu/cms3/assets/01174DE8-A6DD-E615-487FB094045DE5E8/3_Features/blog_jefferson.jpg" alt="" border="0" /></a>New York, August 10, 1790<br /><br />Dear Sir, <a name="a_1992184"></a><p>—This letter, with the very confidential papers it encloses, will be delivered to you by Mr. Barrett with his own hands. If there be no war between Spain and England, they need to be known to yourself alone. But if that war be begun, or whenever it shall begin, we wish you to communicate them to the Marquis de La Fayette, on whose assistance we know we can count in matters which interest both our countries. He and you will consider how far the contents of these papers may be communicated to the Count de Montmorin, and his influence be asked with the court of Madrid. France will be called into the war, as an ally, and not on any pretence of the quarrel being in any degree her own. She may reasonably require then, that Spain should do everything which depends on her, to lessen the number of her enemies. She cannot doubt that we shall be of that number, if she does not yield our right to the common use of the Mississippi, and the means of using and securing it. You will observe, we state in general the necessity, not only of our having a port near the mouth of the river (without which we could make no use of the navigation at all) but of its being so well separated from the territories of Spain and her jurisdiction, as not to engender daily disputes and broils between us. It is certain, that if Spain were to retain any jurisdiction over our entrepôt, her officers would abuse that jurisdiction, and our people would abuse their privileges in it. Both parties must foresee this, and that it will end in war. Hence the necessity of a well-defined separation. Nature has decided what shall be the geography of that in the end, whatever it might be in the beginning, by cutting off from the adjacent countries of Florida and Louisiana, and enclosing between two of its channels, a long and narrow slip of land, called the Island of New Orleans. The idea of ceding this, could not be hazarded to Spain, in the first step; it would be too disagreeable at first view; because this island, with its town, constitutes, at present, their principal settlement in that part of their dominions, containing about ten thousand white inhabitants of every age and sex. Reason and events, however, may, by little and little, familiarize them to it. That we have a right to some spot as an entrepôt for our commerce, may be at once affirmed. The expediency, too, may be expressed, of so locating it as to cut off the source of future quarrels and wars. A disinterested eye, looking on a map, will remark how conveniently this tongue of land is formed for the purpose; the Iberville and Amit channel offering a good boundary and convenient outlet, on the one side, for Florida, and the main channel an equally good boundary and outlet, on the other side, for Louisiana; while the slip of land between, is almost entirely morass or sandbank; the whole of it lower than the water of the river, in its highest floods, and only its western margin (which is the highest ground) secured by banks and inhabited. I suppose this idea too much even for the Count de Montmorin at first, and that, therefore, you will find it prudent to urge, and get him to recommend to the Spanish court, only in general terms, “a port near the mouth of the river, with a circumjacent territory sufficient for its support, well defined, and extraterritorial to Spain,” leaving the idea to future growth.</p> <a name="a_1992185"></a><p>I enclose you the copy of a paper distributed by the Spanish commandant on the west side of the Mississippi, which may justify us to M. de Montmorin, for pushing this matter to an immediate conclusion. It cannot be expected we shall give Spain time, to be used by her for dismembering us.</p> <a name="a_1992186"></a><p>It is proper to apprize you of a circumstance, which may show the expediency of being in some degree on your guard, even in your communications to the court of France. It is believed here, that the Count de Moustier, during his residence with us, conceived the project of again engaging France in a colony upon our continent, and that he directed his views to some of the country on the Mississippi, and obtained and communicated a good deal of matter on the subject to his court. He saw the immediate advantage of selling some yards of French cloths and silks to the inhabitants of New Orleans. But he did not take into account what it would cost France to nurse and protect a colony there, till it should be able to join its neighbors, or to stand by itself; and then what it would cost her to get rid of it. I hardly suspect that the court of France could be seduced by so partial a view of the subject as was presented to them, and I suspect it the less, since the National Assembly has constitutionally excluded conquest from the object of their government. It may be added, too, that the place being ours, their yards of cloth and silk would be as freely sold as if it were theirs.</p> <a name="a_1992187"></a><p>You will perceive by this letter and the papers it encloses, what part of the ideas of Count d’Estaing correspond with our views. The answer to him must be a compound of civility and reserve, expressing our thankfulness for his attentions, that we consider them as proofs of the continuance of his friendly dispositions, and that though it might be out of our system to implicate ourselves in trans-Atlantic guarantees, yet other parts of his plans are capable of being improved to the common benefit of the parties. Be so good as to say to him something of this kind verbally, and so as that the matter may be ended as between him and us.</p> <a name="a_1992188"></a><p>On the whole, in the event of war, it is left to the judgment of the Marquis de La Fayette and yourself, how far you will develop the ideas now communicated to the Count de Montmorin, and how far you will suffer them to be developed to the Spanish court.</p> <a name="a_1992189"></a><p>I enclose you a pamphlet by Hutchins for your further information on the subject of the Mississippi; and am, with sentiments of perfect esteem and attachment, dear Sir, your most obedient, and most humble servant.</p><span style="font-size:85%;">(Source: http://oll.libertyfund.org/)</span>HCPShttp://www.blogger.com/profile/17218096476365121508noreply@blogger.com1