appear to be much alarmed at a supposed system of policy, tending to subvert the Republican Government of the Country. Were ever men more ingenious to torment themselves with phantoms."

NOTE TO PAGE 32.

Letters of Jefferson to which access has been had since the publication of the previous volumes give additional evidence of his interest in this matter. -June 12, 1790, referring to the proceedings in Congress he writes-"We hope an opening will be given to convert it into a vote of a temporary seat at Philadelphia and the permanent one at Georgetown."—June 20, 1790, to Munroe— same idea—to Randolph same view.-June 27, 1790, Jefferson to Dr. Gilmer -"Perhaps " this (a modified assumption) "might bring about so much good humor as to induce them to give the temporary seat of government to Philadelphia-then to Georgetown permanently. This is the least bad of all the turns the thing can take." Same view in letters of July 4 and 15, 1790.

Yet he is seen (works iv. 448) calling this "a fiscal manœuvre "-stating that he "was really a stranger to the whole subject," and ascribing the compromise to Hamilton, which his warmest personal friends-the members he influenced all opposed-As to this compromise, earnestly accomplished by himself, Jefferson states-" This added to the number of votaries to the Treasury, and made its chicf the master of every vote in the legislature, which might give to the government the direction suited to his political views."

CHAPTER LXXIX.

As soon as Hamilton's public avocations permitted, he replied, at large, to the President's letter.

*

In his note covering his "Answers," he observed, "They have unavoidably been drawn in haste, too much so to do perfect justice to the subject, and have been copied just as they flowed from my heart and pen, without revision or correction. You will observe, that here and there some severity appears. I have not fortitude enough always to hear with calmness, calumnies which necessarily include me as a principal object in the measures censured, of the falsehood of which I have the most unqualified consciousness. I trust that I shall always be able to bear, as I ought, imputations of errors of judgment; but I acknowledge, that I cannot be entirely patient under charges which impeach the integrity of my public motives or conduct. I feel, that I merit them in no degree, and expressions of indignation sometimes escape me in spite of every effort to suppress them. I rely on your goodness for the proper allowances."

In this reply, each "Objection" is followed with its appropriate answer.

Nothing could have occurred more happily for Hamil

* August 18, 1792.

ton's fame than such an opportunity of exhibiting the motives, grounds and results of his policy.-His review of the objections is a most triumphant vindication of it and of the Federal party, from all the aspersions to which credulity long lent a willing ear.

The* "OBJECTIONS and ANSWERS, RESPECTING the ADMINISTRATION OF THE GOVERNMENT," as Hamilton has designated this paper, are too voluminous to be inserted here.

He proved, "that there had been no accumulation of the debt by the Funding system;" that, "the burthens of the people had been lightened," and that "it was a mockery of truth to represent the United States as a community burthened and exhausted by taxes." That the duties on imports were moderate; that the excise was of equal operation, considerably productive, and not enforced by any arbitrary or vexatious means, and had encouraged enterprise.-That the loans had been on the most favorable terms-lower than those made during the Confederation, because of the specific pledges to redeem them; and that the project of borrowing the whole sum adequate to pay off the debt would have had the most pernicious effects by creating a monetary plethora in the country, which would have been followed by a momentary scene of extravagance and subsequent ruin-while it would have raised the terms of the loans, which had been actually about four and a quarter per cent.—and the interest on the whole debt which had been reduced from six to four and a half per cent. That the power of redemption reserved was equal to the abilities of the country.

*Works of Hamilton, iv. 248. Randall's "Life of Jefferson," may be judged of by the fact, that though repeating the calumnies of Jefferson and frequently quoting " Hamilton's Works," he omits all mention of this conclusive reply.

As to the allegation of Jefferson, that the avowed purpose of its irredeemable quality was to invite its transfer abroad." This," he said, "was a palpable misrepresentation, as the avowed purpose was to give an equivalent for the reduction of interest." The rise of the six per cents. above par, could not have occurred, had the debt been redeemable at pleasure; hence foreigners paid more for it, and the transfer abroad would be slower as it required a larger capital to purchase it. The assertion, that the transfer to foreigners induced a drain of our resources was answered by the fact, that an equivalent was received which had not been expended in luxury, as there was no sensible increase in the expense of living, and there had been large and useful investments of capital. The effect of Bank paper to banish coin was a subject on which theorists differ, but as the quantity circulated was in proportion to the demand, the presumption was, that a greater quantity of industry was put in motion, so as to call for a larger circulating medium. But Banks more than compensate for the loss of specie. "Smith," who was a witness to their effects in Scotland, when, too, a very adverse fortune attended some of them, bears his testimony to their beneficial effects.

The profits of the Bank had not exceeded eight per cent., and instead of being so much taken out of the pockets of the people, were a mere equivalent for the use of the capital loaned to them. That paper speculations encourage gaming was true within certain limits, but they also promoted and aided enterprise. Though such was the effect of the debt, it existed, and however provided for, would have been an object of speculation.

That it had furnished the means of corruption was stated to be an assertion which can only be denied and pronounced to be malignant and false. No facts exist to

support it, and being a mere matter of fact, no argument can be brought to repel it. The assertors beg the question, they assume to themselves and to those who think with them infallibility.-Take their word for it, they are the only honest men in the community. But compare the tenor of men's lives, and, at least, as large a proportion of virtuous and independent characters will be found among those whom they malign, as among themselves.

A member of a majority of the legislature would say to these defamers; In your vocabulary, Gentlemen, Creditor and Enemy appear to be synonymous terms. The support of public credit and corruption of similar import

-an enlarged and liberal construction of the Constitution for the public good and for the maintenance of the due energy of the national authority of the same meaning with you as usurpation and a conspiracy to overturn the Republican Government of the country. Every man of a different opinion from your own, an ambitious despot or a corrupt knave. You bring every thing to the standard of your narrow and depraved ideas, and you condemn, without mercy or even decency, whatever does not accord with it. Every man who is either too long or too short for your political couch must be stretched or lopped to suit it. But your pretensions must be rejected, your insinuations despised. Your politics originate in immorality—in a disregard of the maxims of good faith, and the rights of property, and if they could prevail, must end in national disgrace and confusion. Your rules of construction for the authorities vested in the Government of the Union would arrest all its essential movements, and bring it back, in practice, to the same state of imbecility, which rendered the old Confederation contemptible. Your principles of liberty are principles of licentiousness, incompatible with all government. You sacrifice