The United States of America, Part 1: 1783-1830Sparks, Edwin Erle
History
The United States of America, Part 1: 1783-1830
Sparks, Edwin Erle
United States -- History
Hamilton, sending a copy of the Virginia resolutions to Jay, saw "the
first symptom of a spirit which must either be killed or will kill the
Constitution of the United States." He thought the collective weight
of the different parts of the Government ought to be employed in
exploding the principles they contained. Theoretically, the Legislature
of Virginia may have been correct in its attitude; but no theoretical
protest could avail against the worthy sentiment that the entire
national credit must be restored, backed by the practical demands of
the creditors, and by the desires of those who saw an opportunity of
investment or speculation.
Those people, both officials and citizens, who took the stand in these
formative days of political parties that the Federal Government should
be restricted in its workings to the powers expressly given to it in
the Constitution, a "strict construction" of that document, as they
called it, were generally country bred, of the borrowing rather than
the lending class, depending upon individual initiative rather than
mass action, strangers to the paternal aspects and fostering hand of
government, and inexperienced in the intricacies of finance. Gen. Henry
Lee, of Virginia, complained to Madison of the complexity of Hamilton's
plan. "It departs," replied Madison, "from that simplicity which ought
to be preserved in finance more than anything else." Inability to
comprehend naturally breeds suspicion.
Hamilton's followers were, for the most part, from the Northern and
Middle States, city dwellers, money-lenders rather than borrowers,
business men, and manufacturers, who saw no wrong in having the
Government promote the general welfare by legislation. The sudden
revival of business which followed the adoption of Hamilton's plan to
redeem all the debts seemed to them both natural and legitimate. The
other group looked upon the entire matter as a corrupt transaction,
contrived by Hamilton, and a prostitution of government from its
legitimate purposes. Madison wrote that just before the report came
out the value of the various forms of debt rose from a few shillings
to eight or ten shillings in the pound, and that emissaries were still
exploring the interior and distant parts of the Union in order to take
advantage of the ignorance of the holders. To meet the occasion
Jefferson invented the phrases, "corrupt squadron," "stock-jobbing
herd," and "votaries of the treasury," upon which he rang the changes
during a long lifetime.
Public-domain text, read in full here on John Shaqi.
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