History of the United States of America, Volume 6 (of 9) : $b During the first administration of James MadisonAdams, Henry
History
History of the United States of America, Volume 6 (of 9) : $b During the first administration of James Madison
Adams, Henry
United States -- History -- 1801-1809; United States -- History -- 1809-1817
showed in conducting foreign war. Even a return to Washington’s system
would not answer their purpose, for they were obliged to restore the
extreme practices of 1798, and to re-enact the laws which had then been
denounced and discarded as the essence of monarchy.
Bitterly as all good Republicans regretted to create a standing army,
that vote was easy compared with other votes it made necessary.
Doubtless an army was an evil, but the effects of the evil were
likely to appear chiefly in the form of taxes; and the stanchest war
Republicans flinched at taxation. The British minister, who saw so much
of these difficulties that he could not believe in the possibility
of war, reported to his Government a story which showed how uneasily
the Administration balanced itself between the two bodies of its
supporters. In December, during the debate on the Army Bill, the
Committee of Ways and Means was repeatedly urged to produce a scheme of
war-finance, but failed to do so. Foster reported, on what he called
good authority, that when the chairman of that committee went to
Gallatin for information to meet questions in the House, the secretary
declined giving estimates until the Army Bill should be disposed of;
and he explained that if he submitted a plan of taxes, the Government
would be charged with wanting to damp the ardor of Congress.[129] Every
one knew that the ardor of Congress feared nothing so much as damping;
but every one who knew Gallatin was persuaded that as long as he
remained Secretary of the Treasury, taxes must proportionally increase
with debt.
Foster’s story was probably true; for although Ezekiel Bacon, chairman
of the Ways and Means Committee, wrote as early as Dec. 9, 1811, to the
secretary for advice, the secretary delayed his answer until January
10, the day when Congress agreed to pass the Army Bill. The letter
was read to the House January 20, and proved, as had been foreseen,
a serious discouragement to the war spirit. Yet Gallatin made an
under-estimate of financial difficulties; for while he assumed the
fixed charges at $9,600,000, and estimated the receipts from customs
under the existing duties at only $2,500,000 during war, he assumed
also the committee’s estimate of $10,000,000 as the annual loan that
would be required to meet the expense of war. In order to pay the
fixed charges of government, the customs revenue must be raised to
$6,000,000; and for this purpose he asked Congress not only to double
the existing duties, but also to reimpose the old duty on salt. To meet
the remaining charge of $3,600,000 and the accruing interest on new
loans, he asked for internal taxes to the amount of $5,000,000.
Public-domain text, read in full here on John Shaqi.
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