The New York herald., 1851-08-07

Dental election Of l6QO We do not remember Of
thus the extensive spec alatons in lands, the pub.
lie securities and contracts, by the leaders Of the
old federal party during the administ m tions Of
Washington and Adams. were among the promi
party in lso but such appears to us was most pro-
badly the case. Let us look at the history Of the
times, and briefly notice the connection Of circum-
stances and events.
The United states constitution went into opera
tionin l7sv, when the debt of the revolutionary
war bad depreciated to an eighth Of its nominal
lue. This had passed, in great degree from meri-
torious creditors who had expended their property
or their blood to acquire it, into the hands Of spe-
cuiation and traffic. In many instances the funds
concealed when patriotism required them TO be ex-
pended, were layished in the acquisition Of those
certificates which the country hadissued evidence
tion Of the whole debt Of the nation had changed
hands. The funding system adopted in l79S ena-
bled the nation finally to redeem its promises with
interest, and In the mean time established the pub
lie credit while IL raised into existence m army Of
pensioners. The accum muation Of fortune thus sud-
denly procured aided the administration, not only
by its actual strength, but BY that appearance Of
respectabiity which opuence never fails to confer
(See Austin's life Of Gerry)
The effect of the funding system. when adopted
By Congress Ia ITO, was great and rapid. The
public securities suddenly rose, and for a time,
above par The immense wealth which individuals
acquired by their unexpected appreciation, could
not be viewed with Indifference. BY those who
participated in its advantages, the author of sys
tenn (Hsmilton,) to which they were so greatly in
debted, was regarded with an enthusiasm Of at
tichMent. To many others, this adventitious col
lection Of wealth in particular hands was subject
rather Of ohagrn than of pleasure The debt being
funded, WAS ascrbed by many, not to . Of jas
tice. and to liberal and enlightened policy, but to
the desire Of bestowing On the government srt-
6cial strength, by the creation Of moneyed in
terest which would be srbservient to its wil-(See
Msrshalls Life of Wsshington.)
The funding Of the debt OF the revolution, it is
well known, was favorite scheme of Hamilton.
He had suggested 1t ten years before, viz, in the
letter to James Duane, dated September, l1S0
which we published, some time since, in tho
R5nd. As q member Of the continental Congress
in iTo be urged the Importance Of i that body,
and at that time was fully sustained ia his views
by Madison, although that statesman opposed the
plan in the federal Congress of 1870. when it was
In his oprositon to Washington's ADMINISTRATIVE,
Il hss been supposed by superficial observers, that
Madison acted under the influence of Jeffe rsou and
contrary 70 his own views Of public policy. The
true solution Of the problem Of tho course Of Mr..
Madison In the 6rst Congress, and subsequently,
in his pablc life, namely in acting with the repub-
Ecan party, while he had been q signer Of the CON
stii1tion, one Of the writers Of he Fseaisf recon-
msnoing it to the people, and in favor of strong
national government previous to l7S9 is to DO
found, We believe, 10 the Political course Of Vir-
ginia- i hat state refused TO send him to tho
United states Senate on account OF his support OF
lnc CONSTITUTION, ana Ne OWeu 0y election 10 the
House Of Representatives to the people OF q Con-
gressonsl distriot friendly to federal government
lie doubtless had the sagaoty to perceive that the
State CT Virginia would not sustain the admins
tration of Washington on the principles Of Hsmil-
ton, Jay, Morris, and other federasts Conse-
quently we find Dir. Madison early in hs opposition
to the measures Of WashiD gton's administration
and continuing afterwards to act With the re-
publican party.
1t was always claimed by the Sederalst., thst tho
funding Of the revolutionary debt was one Of the
wisest Of their measures when in power and it has
bt en- consdered 50 the financial achievement
Hamilton. The integrity aud patriotism ofthat Of
statesman were not doubted, BY his political
opponents, in bringing forward and supporting
that and othor measures, while Secretary of tho
Treasury, Dor did he receive any pecrniary benefit
thereby, notwithstanding many sf bis political
friends aud opponents realized fortoncs from the
success which attended bis plans, aud the conse-
queDs public prosperity. IL may be hero mentioned
that Hamilton defined claiming his proportion Of
Communication for half pay, voted to the officers Of
the revolution by the Continental Congress Of l753
from motives OF dslicacy, as he was member OF
that Corgre
The public securities, thus funded, afforded an
ample field for speculation, which we ind was
eagerly embraced by men Of both political parties
who could command money or credit. gres;
OF those In tho commercial States were
and tho opponents Of the administration
charged upon the federal leaders int ntioa Of
moneyed 3ristooracy to sway the des-
t.nies Ct the country. What tho real views of the
prominent federalsts were il shown in the conf
Dental correspondence OF many OF their pronineat
men at that period.
The late Oliver Woicott, who wa, appoisteI
auditor Of the Treasury under Hamilton, in i79o,
writes 20 bis father, then Lieutenant ;ovcrnor
Of Con nectcut, as folows:-
Nav Yons, March q, 1890
81 consider funding system as importspt in No other
respect thar n an engine Of government. The only
question h what that engine shall bo The influence Of
clergy nobility and armies and ought be out
Of the question In this country but unless souse active
principe of the human mind bo interested in sup
port Oi the governmen Mt civil establishments can l..
found which will not appear like useless aud expensive
pss snts aud by their popularity weaken the
ment rheh they are intended to support Perhaps the
heh shall appear 70 b. important IL be not NO in ~.
atty and .. the same time nave this business Of kind
ch shall NO, depres the spirit check the industry
Il the country sc For thoe think the State
d. es o,sht 70 bo assumed without the assumption
the political purposes ~Aeh haro enumerated csanO
Extract from reply Of Oliver wclco.t. Seu'r., to
the above -
lour observations roSpectiog the public debt As %.
undoubtedly Just there certainly cannot st preent ex
IL any other cement "(see Gibbs' Life Of NcloottJ
In the convention Of 1857, which framed the con-
,tituticB Of the snt-eser aiists pretended to
b. spprehensive Of the formation of an arstocracy
a his country. Thus, Mr.. George Mason, Of Vfr-
,inia, the flh Of August, proposed, ironically,
o strike Out certain clause oi the constitution.
estricting United states Senators from taking
'fice, So, "as more effective exp<dient fcr en-
oursgirg the exotic corruption, which might not
,thcrwise thrive well on the American soil; for
that sristocrscy which vas probably i'm
he contemplation of some among VI; and for in-
itng II TO the legislative service those generous
ana benevolent characters, who viii 40 justice 70
zach others merit, by carving out Oeioss and re-
wards for It."
Mr.. Mercer. Of Marylsn said-"lt Is n fr-t
principle in political science, that whenever the
rights Of property secured, an srs.ocracy will
grow cut OF II. Elective governments also neces-
ssry become aiistocratic. bccause the rulers being
sew, can, snd will, draw encuneuts FOR the nselres
from tue asnJ 40 governments o. ameria
will become aris!ocraeies. They are 30 already.
The public messures are calculated FOR the benefit
Of the governor, not Of the people. The Iegis-
lature must and viii be composed Of ~calth aud
abilities, and the people viii DO governed by
unto The executive ought 10 have n c,unail
0ciug members e both houses Without fuch an
the war viii DC between the alis,ojacy
md tho people. lie wished IL to he between tie
aud tho executive. Nothing elsc en-
protect The Teope against those spcculating Legs-
atures, Which are now rlunderibg them through
put the C-itco Statcs'