The New York herald., 1851-08-06


49, the extsnsve spec alations in lauds the pub
lie securities and contracts, BY the leaders Of the
old federal party during tho administzations of
washington S;as ana Adams; were among the prom,
party in 100; but such appears to us was most pro-
baby tie case. Let us look at the history of the
times, and briefly notice the connection Of crcum-
stances and events
The United States constitution went into opera.
ton in lT6o, when the debt of the revolutionary
war had deprecated 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, intothe hands Of spe-
culation and traffic. In many instances the funds
concealed when patriotism required them to be ex-
pended, were lavished in the acquisition Of those
certificates which the country had issued in evidence
as well Of Its justice as Its poverty vast proper,
tion of the whole debt Of the nation had changed
hands. The funding system adopted In 1888 ena-
bled the nation finally to redeem its promises with
interest and in the mean time established the pub.
Lie credit while it raised into existence an army OF
pensioners The accumulation Of fortune thus sud-
denly procured aided the administration, not only
by its actual strength, but by that appearance Of
respectablity which opuence never fails to confer
(See Austin's life Of Gerry)
The effect Of the funding system, when adopted
BY Congress in ITO, was groat and rapid. The
public Securities suddenly rose, and for 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-
tom (Hamilton,) to which they were 30 greatly in
debted, was regarded with an enthusiasm Of at
tachmeAt. To many others, this adventitiOus ool-
lection ofweslth in particular hands, was subject
rather Of ohagrin than Of pleasure The debt boing
funded, was asoribed BY many not to sense OF as-
tice and to liberal snd enlightened policy, but to
the desire of bestowipg on the government an arti
fetal strength, by the creation of q moneyed in
terest, whioR would be subserviont to It's
MaIshalrs Life Of Washington)
The funding Of the debt Of the revolution, il is
well known, vas fsvorite scheme Of Hamilton
He had suggested it ten years before, viz, in the
which we published. some time since, in the
Herald AS q member of the continental Congress
in 17S3, he urged the Importance oft on that body,
and at that time was fully sustained in his views
by Madison although that statesman opposed the
plan in the federal Congress Of l7o0, when it was
proposed by Hamilton, as Secretary Of the Treasury
In his opposition to Washingtons administration,
it has been supposed by superficial observers, that
Madison acted under the influence Of Jeffer ersvn and
contrary to his own views Of public policy. The
true solution Of the problem Of tho course Of Mr..
Madison in the first Congress, and subsea auently
in his public life, namely. in acting with the repub-
lican party, while hs had been sgner Of the con-
stitution, one Of the writers Of the Ecras, recon-
men ding it to the people, and in favor Of strong
national government previous to lTsS, is to be
found. we believe, in the Political course Of Viz
ginia. That State refused to send him to the
United States Senate on account of bis support Of
the constitution, and be owed his election to the
House of Representatives to the people Of Con-
gressonsl district friendly to federal government.
He doubtless had the sagaoity to perceive that the
State Of Virginia would not sustain the admins
tration Of Washington on the principles Of Hamil-
ton, Jay, Morris, and other federalists. Conse-
quenty we fnd MIR. Madison carly in bis opposition
to the measures Of Washington administration,
and continuing ever afterwards to aot with the
publican party.
II was always claimed by the federalists that the
funding Of the revolutionary debt was one of the
wisest Of their measures when in power, and it has
boon considered the greatest financial achievement
Hamilton. The integrity and patriotism Of that Of
statesman were not doubted, even by his political
opponents, in bringing forward and supporting
that and other measures. while Secretary Of the
Ire asury, nor did he receive any pecuniery benefit
thereby. notwithstanding many Of his political
friends and opponents realized fortunes from the
success which attended his plans, and the conse-
quent public prosperity. IL may be bore mentioned
that Hamilton declined claiming his proportion of
for halfpay, voted to the osficers Of
the revolution by the Continental Congress of 1888,
from motives Of dehoacy, us he was member OF
that Congress.
The public securities, thus funded, afforded an
ample field for speculation, which we find was
eagerly embraced by ner Of both political parties
who could command money or credit. A great
proportion Of those in the commercial States were
the opponents Of the administration
charged upon the federal leaders intention Of es
moneyed aristocracy TO sway the des-
tinies C the country What the real views Of the
prominent foderalists were is shown in the conG.
iAntil corresponde1ce Of manv a. ~ .l.tr pfoo,noni
men at that period.
The late Oliver Woeott, who was sppoipte
auditor Of the Treasury under Hamilton, in 1870,
writes to his father, then Lieutenant-C & overnor
OF Connecticut, as follows
Nrw yoRE, March p, 1890
II consider funding system as portant in no other
respect thaa ~ engine Of government The only
question l. what that engine shall be The influence OF
clergy, mobility and armies arr and ought to be out
an huf, ,,f.s
principle Of the human mind be- interested in sup
port o. the government 10 civil establishments can be
pagesnts and by their appropriately weaken the govern
ment which they intended to support Perhaps the
great desideratun Is ocontrive business be executed
which shau appear 70 be important IL be in
sltY md .: the same time have this business Of kind
which shall not depress the spirit check the Industry
of the country Ac For these think the State
debts ought 10 b. sssumed as without the mption
BE- attained"
Extract from reply Of Oliver wolcOtt, Ssn'r., to
"Your observations respecting The public debt as es
'entA 70 the existence Of the national government are
just there certainly cannot at pre,ent
st any ether cement "-(sce Gibbs Life Of Wclcott)
In the convention Of 1857, which framed the con-
titution some OF the antifc er slists pretended to
be apprehensive Of the formation Of aristocracy
"a this country. Thus, Mr.. George Mason, Of Vir-
,inis, on the 14th Of August, proposed, ironically,
o strike out q certain clause Of the constitution
es,ricting United States senator's from taking
nee, &c, = as . more efectirc expedent for on
ouragipy the exotic corruption, which might not
therwise thrive 20 well on the American SOIL for
ompleting that sristooracy which was probably in
be contemplation OF some among us; and for in
1ting iito the legislative service those generous
nd benevolent characters, who will do justice 70
ach others merit, By carving out Offices and re-
Yards for it,
Mr.. Mercer, Of Maryland, said II is a FIRST
'rinciple in political science, that whenever the
tights Of property are secured, an ars;ocracy will
grow out oft. Elective governments also neccs-
arily become aris,ocrstic because the rulers being
lew, can, and will, draw emoluments for themsol-cs
rom the many. Tho governments Of America
viii become aristocrscies. They are so already
The public measures are calculated for the benefit
Il the governors, not Of the people. The Legis-
a,ure must and will be posed Of wealth and
abilities, and the people will be governed by
unto. The executive ought TO have a council
Dcing members Of both houses. Without such an
influence, the war viii be between tho aristo,racy
md the people. lie wished il to be between the
ard the executive. Nothing else can
protect the people against those pcculating Legis-
atures, which arc nov plundering them through.
,ut the United States"
Elbridge Gerry, Of Mas schusetts, who had also