Chapter V111.

Congress Reassembles at Philadelphia-Residence of Washington at the New Seat of Government-The State Carriage-Hamilton's Financial Arrangements-Impost and Excise Bill-Passage of a Bill for a National Bank-Jefferson's Objections-Formation of Two Political Parties under Hamilton and Jefferson―Their Different Views-Dissatisfaction of Congress at the Report of Harmer's ExpeditionWashington's Address to the Seneca Chiefs-His Desire to Civilize the Savages-Kentucky and Vermont Admitted into the Union-First Congress Expires A New Expedition Projected against the Hostile Tribes under General St. Clair-Washington's Solemn Warning on Taking Leave of him.

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ment.

ONGRESS reassembled, according to adjournment, on the first Monday in December, at Philadelphia, which, was now, for a time, the seat of govern

A house belonging to Mr. Robert Morris, the financier, had been hired by Washington for his residence, and at his request, had undergone additions and alterations in a plain and

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neat, and not by any means in an extravagant style."

His secretary, Mr. Lear, had made every preparation for his arrival and accommodation, and, among other things, had spoken of the rich and elegant style in which the state carriage was fitted up. "I had rather have heard," replied Washington, "that my repaired coach. was plain and elegant than rich and elegant."

Congress at its opening, was chiefly occupied in financial arrangements, intended to establish the public credit and provide for the expenses of government. According to the statement of the Secretary of the Treasury, an additional annual revenue of eight hundred and twentysix thousand dollars would be required, principally to meet the additional charges arising from the assumption of the State debts. He proposed to raise it by an increase of the impost on foreign distilled spirits, and a tax by way of excise on spirits distilled at home. Impost and Excise bill was accordingly introduced into Congress, and met with violent opposition. An attempt was made to strike. out the excise, but failed, and the whole bill was finally carried through the House.

An

Mr. Hamilton, in his former Treasury report, had

recommended the establishment of a National Bank; he now, in a special report,

urged the policy of the measure. A bill, introduced in conformity with his views, was passed in the Senate, but vehemently opposed in the House; partly on considerations of policy, but chiefly on the ground of constitutionality. On one side it was denied that the Constitution had given to Congress the power of incorporation; on the other side it was insisted that such power was incident to the power vested in Congress for raising money.

The question was argued at length, and with great ardor, and after passing the House of Representatives by a majority of nineteen votes, came before the Executive for his approval. Washington was fully alive to the magnitude of the question and the interest felt in it by the opposing parties. The cabinet was divided on it. Jefferson and Randolph denied its constitutionality; Hamilton and Knox maintained it. Washington required of each minister the reasons of his opinion in writing; and, after maturely weighing them, gave his sanction to the act, and the bill was carried into effect.

The objection of Jefferson to a bank was not merely on constitutional grounds. In his subsequent writings he avows himself opposed to banks, as introducing a paper instead of a cash system-raising up a moneyed aristocracy, and

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abandoning the public to the discretion of avarice and swindlers. Paper money might have some advantages, but its abuses were inevitable, and by breaking up the measure of value, it made a lottery of all private property. These objections he maintained to his dying day; but he had others, which may have been more cogent with him in the present instance. He considered the bank as a powerful engine intended by Hamilton to complete the machinery by which the whole action of the legislature was to be placed under the direction of the Treasury, and shaped to further a monarchical system of government. Washington, he affirmed, was not aware of the drift or effect of Hamilton's schemes. "Unversed in financial projects and calculations and budgets, his approbation of them was bottomed on his confidence in the man."

Washington, however, was not prone to be swayed in his judgments by blind partiality. When he distrusted his own knowledge in regard to any important measure, he asked the written opinions of those of his council who he thought were better informed, and examined and weighed them, and put them to the test of his almost unfailing sagacity. This was the way he had acted as a general, in his military councils, and he found the same plan ef

ficacious in his cabinet. His confidence in Hamilton's talents, information, and integrity had led him to seek his counsels; but his approbation of those counsels was bottomed on a careful investigation of them. It was the same in regard to the counsels of Jefferson; they were received with great deference, but always deliberately and scrupulously weighed. The opposite policy of these rival statesmen brought them into incessant collision. "Hamilton and myself," writes Jefferson, "were daily pitted in the cabinet like two cocks." The warm-hearted Knox always sided with his old companion in arms; whose talents he revered. He is often noticed with a disparaging sneer by Jefferson, in consequence. Randolph commonly adhered to the latter. Washing

ton's calm and massive intellect overruled any occasional discord. His policy with regard to his constitutional advisers has been happily estimated by a modern statesman: "He sought no unit cabinet, according to the set phrase of succeeding times. He asked no suppression of sentiment, no concealment of opinion; he exhibited no mean jealousy of high talent in others. He gathered around him the greatest public men of that day, and some of them to be ranked with the greatest of any day. He did not leave Jefferson and