RATIFICATION

243

boss of the state, was in doubt, and remained so until the trend toward ratification became plain. After a series of lively discussions the Federalists mustered strength enough for a favorable vote, one hundred eighty-seven to one hundred sixty-eight.

The New York convention had a clear Antifederalist majority of two thirds at first, but the Federalists finally won over enough to secure a vote for ratification, by a majority of three. In Pennsylvania the Federalists resorted to every device known to politicians, including even actual force. They put in so much work that they finally secured a heavy majority.

Although the Virginia delegates had done brilliant work in the Federal Convention, their state as a whole was with the opposition. Patrick Henry and George Mason openly worked to defeat ratification, and they almost succeeded. The final vote in convention stood eighty-nine to seventy-nine, with eight of the majority voting contrary to the known wishes of their constituents, and two more in violation of specific instructions. Probably the personal influence of Washington was responsible for the Federalist success.

Of the smaller states, all but Rhode Island and North Carolina voted heavily in favor of ratification. Those two held out until after the new government was fully organized. Many of the states which voted to ratify were won over by the promise that amendments would be brought about, for the purpose of removing certain concrete objections.

In spite of the serious shortcomings of the Confederation, and of the evident advantages of the Constitution, the voters of the time were hard to convince. Perhaps the experience of the United States with and under the Constitution might suggest the theory that the majority does not always know what is good for it. In 1787 and 1788 there was nothing sacred about the Constitution. Far from it! If the Federalists had been content to rest their case solely on its merits, they would have been swamped in defeat. But they knew that they had something good, they were determined the country should have it, and they proceeded to drive a very unwilling majority into ratification. On the whole, American history has amply justified their work.

CHAPTER XXIII

THE NEW GOVERNMENT AT WORK

For the first president of the United States, George Washington was virtually the unanimous choice, and although he would have preferred to remain in private life, he yielded to the wish of the country. The old Congress very quietly named the first Wednesday in March, 1789, as the date for the inauguration of the national executive. But it was not until April 2 that the newly elected House of Representatives could get a quorum, and the Senate did not organize until April 5. Then there were the formalities of counting the electoral votes, and of sending to Washington an official notice of his election, so he was not installed in office until April 30.

CONSTRUCTIVE LEGISLATION

During the spring and summer of 1789 the departments of the federal government were concerned primarily with organization. Perhaps the most obvious need was revenue, and on April 8, under Madison's leadership, the House of Representatives proceeded to consider a tariff measure. The enactment of the bill was delayed until July, and it did not go into effect until August, primarily because the merchants wanted to get in their large orders of European goods free of duty.

In the course of this same first session, Congress also passed a Tonnage Act, designed to encourage American shipping. In its final form the measure provided for a levy of six cents per ton on American vessels, thirty cents per ton on vessels built in the United States, but controlled partly by foreign owners, and fifty cents per ton on all other ships. Because of the outbreak of the European war which gave a great impetus to all neutral shipping, shortly after the measure was adopted, it is difficult to estimate accurately just how the Tonnage Act affected American shipping. But even before the war had dislocated commerce, there was a noticeable increase in American carrying trade. In 1790 American vessels carried less than fifty per cent of the commerce between the United States and

CONSTRUCTIVE LEGISLATION

245

Great Britain; by 1800, thanks partly to the war and partly to the law, they were carrying nearly all of it. Thus within a very few years some of the prophecies which had been made concerning the economic advantages of the Constitution were already being fulfilled. Once the tariff bill had been passed, Congress turned its attention to the establishment of the first three executive departments: Foreign Affairs-subsequently renamed the State Department-Treasury, and War. Then, in the judiciary bill provision was made for an Attorney-general. Although the Constitution pointed somewhat indirectly at the Senate as an advisory body to the President, the heads of departments were the ones actually to fill that rôle. Washington made a point of consulting them freely and regularly, and so, purely from custom, there was evolved the so-called Cabinet.

Washington selected these first appointees with no little care. For Secretary of State he picked Thomas Jefferson, a man trained in public service both at home and abroad. Under ordinary conditions, Jefferson was fully competent to meet any foreign diplomats on their own ground. He understood human nature, and he was almost as shrewd and astute as Franklin himself. At this time too he was on the best of terms with Washington and a loyal, though not overenthusiastic supporter of the Constitution.

The Treasury Department went to Alexander Hamilton, a young genius in matters pertaining to finance and government. Born in the West Indies, he had come to New York in his early youth. During the Revolution he had served on Washington's staff; the commanderin-chief had found him to be a man of unusual intellectual powers, abounding in energy, full of initiative and self-confidence, and altogether an extremely likeable friend. No one understood the needs of the new government better than he, and probably no one else had quite the rare combination of sound wisdom and unparalleled audacity which he displayed during his career as Cabinet member.

For the War Department, with its army of less than nine hundred men, General Henry Knox was selected, while Edmund Randolph became Attorney-general. These were moderately able men, but by no means equal to the others in capacity or in attainment.

Turning then to the judiciary, Congress authorized the appointment of a Chief Justice and five associates for the Supreme Court, and it created four circuit and thirteen district courts.

Before the first session was over, Madison brought up the question

of proposed amendments to the Constitution. Action of this kind had been made necessary by Federalist promises in various states, made to secure a favorable vote on ratification. With signs of manifest unwillingness to touch what might be a highly controversial issue, Congress finally submitted a list of twelve amendments, ten of which were eventually ratified. These constituted the bill of rights which numerous critics had demanded, and so they were satisfied.

HAMILTON'S FINANCIAL POLICY

Once the problems of organization were partly solved, Congress and the executive devoted their attention to the great financial program, the product of Hamilton's brilliant efforts. As Secretary of the Treasury he was called upon to suggest plans for paying the public debt, and for putting American credit on a solid basis. By 1790 the foreign debt, including unpaid interest, amounted to $11,710,378. while the domestic debt had mounted to $42,414,085. Hamilton proposed to refund all this indebtedness and to pay the par value of the various securities. Congress finally agreed to this, in spite of the opposition of the farming classes. There is no doubt that payment at par enabled countless speculators to clear small fortunes, but there is also no doubt that American credit was immediately put upon a solid and enduring basis. Even if the cost was high, the returns have been substantial. As finally arranged, new bonds were issued in exchange for a variety of certificates outstanding.

With the national debt out of the way, Hamilton's next move startled even the speculators themselves. This was nothing less than a proposal to assume that part of the state debts which had been incurred on account of the Revolution. The amount involved was somewhat over $21,500,000. Hamilton argued that these obligations had been made necessary by the war, a common cause, for which the nation should pay. Also he argued that by tying the creditors up to the federal government the national system would be strengthened. Finally, he pointed to the wisdom of clearing up the wide variety of local securities then in circulation.

The funding measures had gone through in the face of bitter oppositicn from the agricultural representatives in Congress, and these same forces were determined to defeat the assumption plan. Madison, hitherto the administration leader in the House, now deserted his post and came out openly as the leader of the opposition. Ham

THE WHISKEY REBELLION

247

ilton used all of his influence over Congress and his favorable attitude toward the speculators had made him many friends— and yet on the merits of the case he would have been beaten. But chance threw in his way a little log-rolling scheme, by means of which the assumption plan became law. Among other measures Congress had been discussing the location of the federal capital, and in the South there was a feeling that it should be located on the Potomac. Hamilton cared little for that issue, but he realized that it might be used as trading material. Sounding Jefferson, he tactfully mentioned the possibility of getting northern votes for the Potomac site, in return for southern votes for assumption. Always canny, Jefferson called Madison into conference, the upshot of which was a little dinner for the three statesmen. There an agreement was reached, the assumption plan became law, and the national capital was placed on the Potomac.

Item by item, Hamilton moved on toward the completion of his program. In February, 1791, under his guidance, Congress passed the bill establishing the first United States Bank. This institution had a capital of ten million dollars, of which one fifth belonged to the federal government. Its notes were practically legal tender, and it served as the financial agent of the government. Branch offices might be established, for the transaction of ordinary banking business.

THE WHISKEY REBELLION

One other Hamiltonian measure was destined to cause serious trouble. In January, 1791, Congress passed an excise law, providing for a tax on distilled liquors. Hamilton had favored this because it increased the number of federal officials, and kept the federal machinery before the public eye. The more conspicuous the new government was, the brighter the prospects for success.

The frontier did not agree with him. Distilling had become nearly as common as drinking, and that was generally very prevalent. But there were extenuating circumstances. The pioneers were always troubled with inadequate transportation facilities, and out of these troubles came the popularity of the private still. Corn was a bulky commodity, practically impossible for many of the frontiersmen to sell directly. Some of them transformed it into pork, and then drove the finished product to market. Others made it into whiskey, which was less bulky and always saleable. When the excise bill was passed,