The bank may be
instituted
for a term of years, by way
of trial; and the particular privilege of coining money be
for a term still shorter.
of trial; and the particular privilege of coining money be
for a term still shorter.
Hamilton - 1834 - Life on Hamilton - v1
General Schuyler, whom you
mentioned, would make an excellent President of War;
General McDougal a very good President of Marine; Mr.
Robert Morris would have many things in his favour for
the department of Finance. He could, by his own per-
sonal influence, give great weight to the measures he should
adopt. I dare say, men equally capable may be found for
the other departments.
I know not if it would not be a good plan to let the Fi-
nancier be President of the Board of Trade; but he should
only have a casting voice in determining questions there.
There is a connexion between trade and finance, which
ought to make the director of one acquainted with the
other; but the financier should not direct the affairs of
trade, because, for the sake of acquiring reputation by in-
creasing the revenues, he might adopt measures that would
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? HAMILTON. 295
depress trade. In what relates to finance he should be
alone. ,
These officers should have nearly the same powers and
functions as those in France analogous to them, and each
should be chief in his department, with subordinate boards,
composed of assistants, clerks, &c. , to execute his orders.
In my opinion, a plan of this kind would be of inconceiv-
able utility to our affairs; its benefits would be very speed-
ily felt. It would give new life and energy to the opera-
tions of government. Business would be conducted with
despatch, method, and system. A million of abuses now
existing would be corrected, and judicious plans would be
formed and executed for the public good. .
K Another step of immediate necessity is, to recruit the
army for the war, or at least for three years. This must
be done by a mode similar to that which is practised in
Sweden. There the inhabitants are thrown into classes of
sixteen, and when the sovereign wants men, each of these
classes must furnish one. They raise a fixed sum of mo-
ney, and if one of the class is willing to become a soldier,
he receives the money and offers himself a volunteer; if
none is found to do this, a draft is made, and he on whom
the lot falls, receives the money, and is obliged to serve.
The minds of the people are prepared for a thing of this
kind; the heavy bounties they have been obliged to pay
for men to serve a few months, must have disgusted them
with this mode, and made them desirous of another, that
will, once for all, answer the public purposes, and obviate
a repetition of the demand. It ought by all means to be
attempted; and congress should frame a general plan, and
press the execution upon the states. When the confede-
ration comes to be framed, it ought to provide for this, by
a fundamental law ; and hereafter there would be no doubt
of the success. But we cannot now wait for this: we
want to replace the men whose times of service will ex-
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? 296 THE LIFE OF
(SP
pire the first of January; for then, without this, we shaH
have no army remaining, and the enemy may do what
they please. The General, in his letter already quoted,
has assigned the most substantial reasons for paying imme-
diate attention to this point.
Congress should endeavour, both upon their credit in Eu-
rope, and by every possible exertion in this country, to pro-
. -- ). - / vide clothing for their officers, and should abolish the whole
f^f system of state supplies. The making good the deprecia-
te fji tion of the currency, and all other compensations to the
i v? J>'v ! army, should be immediately taken up by congress, and
not left to the states; if they would have the accounts of
depreciation liquidated, and governmental certificates given
for what is due, in specie, or an equivalent to specie, it
would give satisfaction, appointing periodical settlements
for future depreciation.
The placing the officers upon half-pay, during life, would
be a great stroke of policy, and would give congress a
stronger tie upon them than any thing else they can do.
No man, that reflects a moment, but will prefer a perma-
nent provision of this kind, to any temporary compensa-
tion; nor is it opposed to economy; the difference between
this, and what has been already done, will be insignificant.
The benefit of it to the widows, should be confined to those
whose husbands die during the war. As to the survivors,
not more than one-half, on the usual calculation of men's
| ;t ? lives, will exceed the seven years for which the half-pay is
already established. Besides this, whatever may be the
visionary speculations of some men at this time, we shall
find it indispensable, after the war, to keep on foot a con-
siderable body of troops; and all the officers retained for
this purpose, must be deducted out of the half-pay list. If
any one will take the pains to calculate the expense on
these principles, I am persuaded he will find the addition
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? HAMILTON. 297
of expense from the establishment proposed, by no means
a national object.
The advantages of securing the attachment of the army
to congress, and binding them to the service, by substantial
ties, are immense.
We should, then, have discipline; an army in reality, as
well as in name. Congress would then have a solid basis
of authority and consequence; for with me it is an axiom,
that in our constitution an army is essential to the Ameri-
can union.
CThe providing of supplies, is the pivot of every thing
else; (though a well constituted army would not, in a small
degree, conduce to this, by giving consistency and weight
to government,) there are four ways, all which must be
united, -- a foreign loan, -- heavy pecuniary taxes, -- a
tax in kind, -- a bank founded on public and private credit;. '
As to a foreign loan, I dare say, congress are doing every
thing in their power to obtain it. The most effectual way
will be, to tell France that without it, we must make terms
with Great Britain. This must be done with plainness and
firmness,but with respect and without petulance; not as a me-
nace, but as a candid declaration of our circumstances. We
need not fear to be deserted by France; her interest and
honour are too deeply involved in our fate; and she can
make no possible compromise. She can assist us, if she is
convinced it is absolutely necessary, either by lending us,
herself, or by becoming our surety, or by influencing Spain.
It has been to me astonishing, how any man could have
doubted, at any period of our affairs, of the necessity of a
foreign loan. It was self-evident that we had not a fund
of wealth in this country, capable of affording revenues
equal to the expenses. We must, then, create artificial re-
venues, or borrow; the first was done, but it ought to have
been foreseen, that the expedient could not last, and we
should have provided in time for its failure.
vol. i. 38
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? THE LIFE OF
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f 'Here was an error of congress. I have good reason to
believe, that measures were not taken in earnest early
enough to procure a loan abroad: I give you my honour,
that from our first outset, I thought as I do now ; and wished
for a foreign loan, not only because I foresaw it would be
essential, but because I considered it a tie upon the nation
from which it was derived, and as a mean to prop our cause
in Europe.
u\ Concerning the necessity of heavy pecuniary taxes, I
need say nothing, as it is a point in which every body is
agreed; nor is there any danger, that the product of any
taxes raised in this way, will overburthen the people, or ex-
ceed the wants of the public. Indeed, if all the paper in
circulation were drawn annually into the treasury, it would
neither do one nor the other.
'Aa to a tax in kind, the necessity of it results from this
principle, -- that the money in circulation is not a sufficient
representative of the productions of the country, and conse-
quently no revenues raised from it, as a medium, can be
a competent representative of that part of the products
of the country, which it is bound to contribute to the support
of the public. J The public, therefore, to obtain its due, or
satisfy its just demands and its wants, must call for a part
of these products themselves. This is done in all those
countries which are not commercial; in Russia, Prussia,
Denmark, Sweden, &c. , and is peculiarly necessary in our
case.
Congress, in calling for specific supplies, seem to have
had this in view; but their intention has not been answer-
ed. The states, in general, have undertaken to furnish the
supplies by purchase, -- a mode, as I have observed, at-
tended with every inconvenience, and subverting the prin-
ciple on which the supplies were demanded,--the insuffi-
ciency of our circulating medium, as a representative for
the labour and commodities of the country. It is, there-
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? HAMILTON. 209
fore, necessary, that congress should be more explicit;
should form the outlines of a plan for a tax in kind, and re-
commend it to the states, as a measure of absolute neces-
sity.
The general idea I have of a plan is, that a respectable
man should be appointed by the state in each county to
collect the taxes, and form magazines ; that congress should
have in each state an officer to superintend the whole, and
that the state collectors should be subordinate and respon-
sible to them. This continental superintendent might be
subject to the general direction of the quarter-master-gene-
ral, or not, as might be deemed best; but if not subject to
him, he should be obliged to make monthly returns to the
President at War, who should instruct him what propor-
tion to deliver to the quarter-master-general. It may be
necessary, that the superintendents should sometimes have
power to dispose of the articles in their possession, on pub-
lic account; for it would happen, that the contributions,
in places remote from the army, could not be transported
to the theatre of operations without too great expense; in
which case, it would be eligible to dispose of them, and
purchase with the money so raised in the counties near the
immediate scene of war.
I know the objections which may be raised to this plan,
-- its tendency to discourage industry and the like; but
necessity calls for it; we cannot proceed without, and less
evils must give place to greater. It is, besides, practised
with success in other countries, and why not in this? It
may be said, the examples cited are from nations under
despotic governments, and that the same would not be
practicable with us; but I contend, where the public good
is evidently the object, more may be effected in govern-
ments like ours, than in any other. It has been a constant
remark, that free countries have ever paid the heaviest
taxes; the obedience of a free people to general laws, how-
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? 300 THE LIFE OF
iU
ever hard they bear, is ever more perfect than that of
slaves to the arbitrary will of a prince. To this, it may be
added, that Sweden was always a free government, and
is so now, in a great degree, notwithstanding the late re-
volution.
a-, , t /, y'i' How far it may be practicable to erect a bank on the faint
\ credit of the public, and of individuals, can only be certainly
t ^. ,v determined by the experiment; but it is of so much import-
ance that the experiment ought to be fully tried. When I
saw the subscriptions going on to the bank established for
supplying the army, I was in hopes it was only the embryo
of a more permanent and extensive establishment. But I
have reason to believe I shall be disappointed. It does not
seem to be at all conducted on the true principles of a bank.
The directors of it are purchasing with their stock, instead
of bank notes as I expected; in consequence of which, it
must turn out to be a mere subscription of a particular sum
of money, for a particular purpose.
Paper credit never was long supported in any country,
on a national scale, where it was not founded on the joint
basis of public and private credit. An attempt to establish
it on public credit alone, in France, under the auspices of
Mr. Law, nearly ruined the kingdom. We have seen the
effects of it in America; and every successive experiment
proves the futility of the attempt. Our new money is de-
preciating almost as fast as the old, though it has, in some
states, as real funds as paper money ever had. The rea-
son is, thai the moneyed men have not an immediate interest
to uphold its credit. They may even, in many ways, find
it their interest to undermine it. The only certain manner
to obtainapermanent paper credit, is to engage the moneyed
interest immediately in it, by making them contribute the
whole or part of the stock, and giving them the whole or
part of the profits.
The invention of banks, on the modern principle, origina-
P~
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? HAMILTON. 301
ted in Venice. There, the public, and a company of mo-
neyed men, are mutually concerned. The Bank of England . . 1 \ t>'
unites public authority and faith, with private credit; and . --. "' J. {.
hence we see what a vast fabric of paper credit is raised on'
a visionary basis. Had it not been for this, England would
never have found sufficient funds to carry on her wars; but
with the help of this, she has done, and is doing, wonders.
The Bank of Amsterdam is on a similar foundation.
And why cannot we have an American bank? Are our
moneyed men less enlightened to their own interest, or less
enterprising in the pursuit 1 I believe the fault is in go-
vernment, which does not exert itself to engage them in
such a scheme. It is true, the individuals in America are
not very rich; but this would not prevent their instituting
a bank; it would only prevent its being done with such
ample funds as in other countries. Have they not sufficient
confidence in the government, and in the issue of the cause?
Let the government endeavour to inspire that confidence,
by adopting the measures I have recommended, or others
equivalent to them. Let it exert itself to procure a solid
confederation, -- to establish a good plan of executive ad-
ministration,-- to form a permanent military force,--to ob-
tain, at all events, a foreign loan. If these things were in
a train of vigorous execution, it would give a new spring
to our affairs; government would recover its respectability,
and individuals would renounce their diffidence.
The object I should propose to myself, in the first in-
stance, from a bank, would be an auxiliary mode of sup-
plies; for which purpose contracts should be made between
government and the bank, on terms liberal and advanta-
geous t<j the latter. Every thing should be done, in the first
instance, to encourage the bank ; after it gets well establish-
ed, it will take care of itself, and government may make the
best terms it can for itself. -"\
The first step to establishing the bank, will be to engage j
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? 302 THE LIFE OF
a number of moneyed men of influence to relish the project,
and make it a business. The subscribers to that lately es-
tablished, are the fittest persons that can be found; and their
plan may be interwoven.
The outlines of my plan would be to open subscriptions,
in all the states, for the stock, which we will suppose to be
one million of pounds. Real property, of every kind, as
well as specie, should be deemed good stock; but at least
a fourth part of the subscription should be in specie or
plate. There should be one great company, in three di-
visions; in Virginia^ Philadelphia, and at Boston; or two,
at Philadelphia and Boston. The bank should have aright
to issue bank notes, bearing two per cent, interest for the
whole of their stock; but not to exceed it. These notes
may be payable every three months, or oftener; and the
faith of government must be pledged for the support of the
bank. It must, therefore, have a right, from time to time,
to inspect its operations; and must appoint inspectors for
the purpose.
The advantages of the bank may consist in this: in the
profits of the contracts made with government, which should
bear interest, to be annually paid in specie; in the loan of
money at interest, say six per cent. ; in purchasing lives by
annuities, as practised in England, &c. The benefit result-
ing to the company is evident, from the consideration, that
they may employ in circulation a great deal more money
than they have specie in stock, on the credit of the real
property which they will have in other use. This money
will be employed, either in fulfilling their contracts with
the public, by which, also, they will gain a profit, or in
loans, at an advantageous interest, or in annuities.
The bank may be allowed to purchase plate and bullion,
and coin money, allowing government a part of the profit.
I make the bank notes bear interest, to obtain a readier
currency, and to induce the holders to prefer them to spe-
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? HAMILTON. 303
cie, to prevent too great a run upon the bank, at any time,
beyond its ability to pay.
If government can obtain a foreign loan, it should lend to
the bank, on easy terms, to extend its influence, and facili-
tate a compliance with its engagements. If government
could engage the states to raise a sum of money in specie,
to be deposited in bank, in the same manner, it would be
of the greatest consequence. If government could prevail
on the enthusiasm of the people, to make a contribution in
plate, for the same purpose, it would be a master stroke.
Things of this kind sometimes succeed in popular contests;
and if undertaken with address, I should not despair of its
success; but I should not be sanguine.
The bank may be instituted for a term of years, by way
of trial; and the particular privilege of coining money be
for a term still shorter.
A temporary transfer of it to a particular company can
have no inconvenience, as the government are in no condi-
tion to improve this resource; nor could it, in our circum-
stances, be an object to it, though with the industry of a
knot of individuals, it might be a valuable one to them.
A bank of this kind, even in its commencement, would
answer the most valuable purposes to government, and to
the proprietors; in its progress, the advantages will exceed
calculation. It will promote commerce, by furnishing a
more extensive medium, which we greatly want, in our cir-
cumstances. I mean a more extensive, valuable medium.
We have an enormous nominal one at this time; but it is
only a name.
In the present unsettled state of things, in this country,
we can hardly draw inferences, from what has happened in
others; otherwise I should be certain of the success of this
scheme; but I think it has enough in its favour to be wor-
thy of trial.
I have only skimmed the surface of the different subjects
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? 304 THE LIFE OF
I have introduced. Should the plans recommended come
into contemplation in earnest, and you desire my farther
thoughts, I will endeavour to give them more form and
articularity.
I am persuaded a solid confederation, a permanent ar-
my, a reasonable prospect of subsisting it, would give us
treble consideration in Europe, and produce a peace this
winter.
If a convention is called, the minds of all the states and
the people ought to be prepared to receive its determina-
tions by sensible and popular writings, which should conform
to the views of congress. There are epochs in human af-
fairs, when novelty even is useful. If a general opinion
prevails that the old way is bad, whether true or false, and
this obstructs or relaxes the operations of the public ser-
vice, a change is necessary if it be but for the sake of
change. This is exactly the case now. 'Tis an universal
sentiment that our present system is a bad one, and that
things do not go right on this account. The measure of a
convention would revive the hopes of the people, and give
a new direction to their passions, which may be improved
in carrying points of substantial utility. The eastern states
have already pointed out this mode to congress: they ought
to take the hint, and anticipate the others.
And in future, my dear sir, two things let me recommend,
as fundamental rules for the conduct of congress: to attach
the army to them by every motive, -- to maintain an au-
thority, (not domineering,) in all their measures with the
states. ) The manner in which a thing is done, has more in-
fluence than is commonly imagined. Men are governed
by opinion: this opinion is as much influenced by appear-
ances as by realities. If a government appears to be con-
fident of its own powers, it is the surest way to inspire the
same confidence in others. If it is diffident, it may be cer-
tain there will be a still greater diffidence in others, and
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? HAMILTON. 305
that its authority will not only be distrusted, controverted,
but contemned.
I wish, too, congress would always consider, that a kind-
ness consists as much in the manner as in the thing. The best
things, done hesitatingly, and with an ill grace, lose their
effect, and produce disgust rather than satisfaction or grati-
tude. In what congress have at any time done for the army,
they have commonly been too late. They have seemed to
yield to importunity, rather than to sentiments of justice, or
to a regard to the accommodation of their troops. An at-
tention to this idea is of more importance than it may be
thought. I, who have seen all the workings and progress
of the present discontents, am convinced that a want of
this has not been among the most inconsiderable causes.
You will perceive, my dear sir, this letter is hastily writ-
ten, and with a confidential freedom, not as to a member
of congress, whose feelings may be sore at the prevailing
clamour; but as to a friend, who is in a situation to remedy
public disorders,--who wishes for nothing so much as truth,
and who is desirous for information, even from those less
capable of judging than himself. I have not even time to
correct and copy,* and only enough to add, that I am, very
truly and affectionately, dear sir,
Your most obedient servant,
A. Hamilton.
Such were the plans which his extensive genius origi-
nated, to raise this country above all the chances of the revo-
lution, -- to give to it a national government, -- to call out
all its resources, and to relieve it from that entire depend-
ence on France, which, though not a native, he felt with all
a native's pride.
* For this document, the author is indebted to a connexion of Mr. Ihiane.
vol. i. 39
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? 306 TUB LIFE OF
This feeling is strongly indicated in the following letter
to congress from head quarters.
*****" We may soon be reduced to the humiliating
condition of seeing the cause of America, in America, up-
held by foreign arms. The generosity of our allies has a
claim to all our confidence and all our gratitude; but it is
neither for the honour of America, nor for the interest of
the common cause, to leave the work entirely to them. "
The measures thus suggested by Hamilton, were before
the times. His remark, that the people were proof against
experience, was too true; and the moment when a govern-
ment, possessing all the energies necessary for its own pre-
servation, and all the checks essential to freedom, might
have been formed, passed away.
A short time after this subject was brought before con-
gress, the news of the defeat of Gates, at Camden, was re-
ceived, and a deeper gloom was spread over the public
mind, now sadly disappointed in the fond hopes which had
been indulged, of the benefits to be derived from the co-
operation of France. Hamilton thus speaks of this event,
in a letter of the sixth of September, written to a near friend
in perfect confidence.
"Most people here are groaning under a very disagree-
able piece of intelligence, just come from the southward,
that Gates has had a total defeat near Camden, in South
Carolina. Cornwallis and he met in the night of the fif-
teenth, by accident, marching to the same point. The ad-
vanced guards skirmished, and the two armies halted and
formed till morning. In the morning a battle ensued, in
which the militia, and Gates with them, immediately ran
away, and left the continental troops to contend with the
enemy's whole force.
"They did it obstinately, and probably are most of them
cut off. Gates, however, who writes to congress, seems
to know very little what has become of his army. He
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? HAMILTON. 307
showed that age, and the long labours and fatigues of a
military life, had not. in the least impaired his activity; for
in three days and a half he reached Hillsborough, one hun-
dred and eighty miles from the scene of action, leaving all
his troops to take care of themselves, and get out of the
scrape as well as they could. He has confirmed, in this
instance, the opinion I always had of him. This event
will have very serious consequences to the southward.
People's imaginations have already given up North Caro-
lina and Virginia; but I do not believe either of them will
fall. I am certain Virginia cannot. This misfortune af-
fects me less than others, because it is not in my temper to
repine at evils that are past, but to endeavour to draw
good out of them, and because I think our safety depends
on a total change of system, and this change of system will
only be produced by misfortune. "
On being informed of this disaster, congress wisely con-
fided to Washington the selection of a successor to the un-
fortunate general. The importance of this trust, was strongly
felt at head quarters, and though Washington preferred
Greene, yet when called upon to act under the resolution
of that body, he duly appreciated the full extent of their
confidence, and with that slow, but sure discretion, which
rarely erred, he weighed every circumstance connected with
the station. Respect for local feelings, might have led him
to prefer a general officer from the south, had any such been
deemed equal to this high command; a regard, also, for the
prejudices of certain members of congress against Greene,
and the injurious conduct which had been exhibited to him
as quarter-master-general, gave rise to a fear that he might
not receive that support which the scene of his operations
eminently demanded. These well-grounded reasons for
hesitation, induced the ardent friendship of Hamilton to ap-
prehend, lest, in the interval of decision, some circumstance
might occur to bias the judgement of the commander-in-
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? 308 THE LIFE OF
chief, and lose to the country the services of a man, in whose
superior qualifications he had unmeasured confidence. He
immediately exerted all his influence to induce an instant
decision. The other members of the family, in whom the
character of Greene had inspired similar sentiments, con-
curred in urging his selection; and Washington, thus sus-
tained by his disinterested and most confidential advisers,
chose a Deliverer for the south, -- a choice which, under the
peculiar circumstances which existed, is perhaps among the
most exalted acts of his life.
"This choice," says La Fayette, "when made public, was
generally approved by the army, but not to the high degree
in which it was afterwards applauded. Congress and the
country supposed the share of friendship in the choice,
greater than it had been. Many suspended, or flatly denied
their approbation, until it was universally acknowledged,
that in General Greene were united all the abilities and
virtues which fitted him for this important command. "
A letter from Colonel Harrison, written at this time
marks the state of opinion in congress on this subject.
HARRISON TO HAMILTON.
October 27, 1780.
MY DEAR HAMILTON,
We are only leaving Philadelphia. The most flattering
attentions have been paid to Meade and myself, and such
as would not permit us to progress before, unless we had
shown ourselves entirely disregardless of the great world;
besides, motives of a public nature concurred to make us
stay thus long. From all I have seen and heard, there is a
good disposition in congress to do all they can for the army
and the public interest, and there are many very sensible
men among them. In general, they are most warmly at-
tached to the General, and his recommendations will have
their weight, while the same spirit prevails. It is said, there
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? HAMILTON. 309
has been infinitely more harmony among them for some time
past, than has appeared since the first years of their appoint-
ment. I am not, however, without some apprehension, that
if they proceed in the case of Lee, &c. the monster (party,)
may show itself again, and that we may have a second
edition of the measures adopted in the instance of Deane.
Our friends Sullivan and Carroll have been of great service;
and gentlemen who are, or pretend to be, in the secrets of the
cabinet, say they have contributed immeasurably, by their
independent conduct, to destroy the eastern alliance.
Bland is very clever, and without question wishes to push on
in the true and right road. Grayson says this is the best
congress we have had since the first. Our dear Laurens
respects many of the members; and General Greene's ap-
pointment, I believe, is entirely consonant to the wishes of
congress in general, though we have heard there were mem-
bers much disposed, if facts had not been so obstinate, to
excuse General Gates. The former is here, and I suppose
will set out in a day or two; Meade and I will serve him
all we can. We have done what we could already. Apro-
pos, you delivered him my letter. Our finances are entirely
deranged, and there is little or no money in the treasury.
1 believe they are a subject of much consideration and puz-
zlement; the supplies of the army are also matters of pre-
sent attention, but I don't know what will be done. I hope
we shall, by Christmas, have some clothing from the West
Indies, if the moth have not destroyed it; -- a quantity it is
said has been lying there. It is much to be wished that
General Greene were at the south. The delegates from
that quarter think the situation of Cornwallis delicate, and
that by management, and a proper application and use of
the force there, the late check given Ferguson might be im-
proved into the Earl's total defeat. This, I fear, is too much
even to hope. The sending the Baron is considered, as far
as I have heard, perfectly right, and Lee's corps give great
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? 310 THE LIFE OP
satisfaction. I am just about to mount my horse, and there-
fore shall say but little more. Laurens will write unto you
in a few days, I suppose, and communicate any new occur-
rences. My love to the lads of the family, -- the same to
you. May you be long happy. My most respectful com-
pliments to the General.
Most truly and affectionately,
Rob. H. Harrison.
P. S. The Board have been absolutely too poor to pro-
cure parchment for the many promotions that have been
required.
Greene, on the annunciation to him of his appointment,
by Hamilton, proceeded to head quarters,* and, after an
interview with Washington, visited Philadelphia, to con-
cert the measures necessary for the supplies of his army;
and having made every exertion to secure the co-operation
of individuals possessing influence, near the scene of his fu-
ture operations, arrived at Charlotte, the head quarters of
the army, on the second of December, where he received
a letter from Hamilton, directing him to call a court mar-
tial on Gates, without delay, and give him every facility for
an immediate defence, -- who wrote to Congress,! com-
plaining of his not being notified, in due time, of his being
superseded. The defeat of King's Mountain induced Corn-
wallis to order a detachment, under Leslie, of three thou-
sand men, which Clinton had sent on to co-operate in Vir-
ginia, to join him by the way of Charleston; and as it was
advancing in the direction of Camden, Greene moved with
his main body to the vicinity of the troops under General
Morgan.
The situation of the country, and of the army, when
Greene took the command, is thus described, in a letter
* October 22d, 1780. t January 3d, 1781.
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? HAMILTON. 311
from him to Colonel Hamilton, written from the camp, at
the falls of the Pedee.
GENERAL GREENE TO COLONEL HAMILTON.
January 10th, 1781.
MY SEAR COLONEL,
General Du Portail being on his way to the northward,
gives me an opportunity to write you, which I should have
done before, had not my letters to his excellency contained
as full information of the state of things as I was able to
give, from the little time I had been in the department.
When I was appointed to this command, I expected to
meet with many new and singular difficulties; but they in-
finitely exceed what I apprehended. This is really carry-
ing on a war in an enemy's country; for you cannot esta-
blish the most inconsiderable magazine, or convey the
smallest quantity of stores from one post to another, with-
out being obliged to detach guards for their security. The
division among the people is much greater than I imagined,
and the whigs and tories persecute each other, with little
less than savage fury. There is nothing but murders, and
devastations, in every quarter.
The loss of our army at Charleston, and the defeat of
General Gates, has been the cause of keeping such shoals
of militia on foot, and their service has been accompanied
with such destruction and loss, as has almost laid waste the
whole country. Nothing has been more destructive to the
true interest of this country, than the mode adopted for its
defence. Two misfortunes happening, one after the other,
may have rendered it unavoidable the last season; but
should it be continued, the inhabitants are inevitably ruined,
and the resources of the country rendered incapable of af-
fording support to an army competent to its defence. Go-
vernment here is infinitely more popular than to the north-
ward, and there is no such thing as national character or
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? 312 THE LIFE OF
national sentiment. The inhabitants are from all quarters
of the globe, and as various in their opinions, projects, and
schemes, as their manners and habits are from their early
education. Those in office, from a vanity to be thought
powerful, join in the measure of imposing upon the public
respecting the strength and resources of these southern
states; and while congress, and the minister of France, are
kept under this fatal delusion, I fear little support will be
given to this department. The inhabitants are numerous;
but they would be rather formidable abroad than at home.
They are scattered over such a vast extent of country, that
it is difficult to collect, and still more difficult to subsist
them. There is a great spirit of enterprise among the back
people, and those that come out as volunteers are not a lit-
tle formidable to the enemy. There are, also, some parti-
cular corps, under Sumpter, Marion, and Clarke, that are
bold and daring; the rest of the militia are better calcula-
ted to destroy provisions than oppose the enemy.
At Philadelphia, and all my journey through the country,
I endeavoured to impress upon those in power, the necessi-
ty of sending clothing, and supplies of every kind, immedi-
ately to this army. But poverty was urged as a plea, in bar
to every application.
mentioned, would make an excellent President of War;
General McDougal a very good President of Marine; Mr.
Robert Morris would have many things in his favour for
the department of Finance. He could, by his own per-
sonal influence, give great weight to the measures he should
adopt. I dare say, men equally capable may be found for
the other departments.
I know not if it would not be a good plan to let the Fi-
nancier be President of the Board of Trade; but he should
only have a casting voice in determining questions there.
There is a connexion between trade and finance, which
ought to make the director of one acquainted with the
other; but the financier should not direct the affairs of
trade, because, for the sake of acquiring reputation by in-
creasing the revenues, he might adopt measures that would
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? HAMILTON. 295
depress trade. In what relates to finance he should be
alone. ,
These officers should have nearly the same powers and
functions as those in France analogous to them, and each
should be chief in his department, with subordinate boards,
composed of assistants, clerks, &c. , to execute his orders.
In my opinion, a plan of this kind would be of inconceiv-
able utility to our affairs; its benefits would be very speed-
ily felt. It would give new life and energy to the opera-
tions of government. Business would be conducted with
despatch, method, and system. A million of abuses now
existing would be corrected, and judicious plans would be
formed and executed for the public good. .
K Another step of immediate necessity is, to recruit the
army for the war, or at least for three years. This must
be done by a mode similar to that which is practised in
Sweden. There the inhabitants are thrown into classes of
sixteen, and when the sovereign wants men, each of these
classes must furnish one. They raise a fixed sum of mo-
ney, and if one of the class is willing to become a soldier,
he receives the money and offers himself a volunteer; if
none is found to do this, a draft is made, and he on whom
the lot falls, receives the money, and is obliged to serve.
The minds of the people are prepared for a thing of this
kind; the heavy bounties they have been obliged to pay
for men to serve a few months, must have disgusted them
with this mode, and made them desirous of another, that
will, once for all, answer the public purposes, and obviate
a repetition of the demand. It ought by all means to be
attempted; and congress should frame a general plan, and
press the execution upon the states. When the confede-
ration comes to be framed, it ought to provide for this, by
a fundamental law ; and hereafter there would be no doubt
of the success. But we cannot now wait for this: we
want to replace the men whose times of service will ex-
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? 296 THE LIFE OF
(SP
pire the first of January; for then, without this, we shaH
have no army remaining, and the enemy may do what
they please. The General, in his letter already quoted,
has assigned the most substantial reasons for paying imme-
diate attention to this point.
Congress should endeavour, both upon their credit in Eu-
rope, and by every possible exertion in this country, to pro-
. -- ). - / vide clothing for their officers, and should abolish the whole
f^f system of state supplies. The making good the deprecia-
te fji tion of the currency, and all other compensations to the
i v? J>'v ! army, should be immediately taken up by congress, and
not left to the states; if they would have the accounts of
depreciation liquidated, and governmental certificates given
for what is due, in specie, or an equivalent to specie, it
would give satisfaction, appointing periodical settlements
for future depreciation.
The placing the officers upon half-pay, during life, would
be a great stroke of policy, and would give congress a
stronger tie upon them than any thing else they can do.
No man, that reflects a moment, but will prefer a perma-
nent provision of this kind, to any temporary compensa-
tion; nor is it opposed to economy; the difference between
this, and what has been already done, will be insignificant.
The benefit of it to the widows, should be confined to those
whose husbands die during the war. As to the survivors,
not more than one-half, on the usual calculation of men's
| ;t ? lives, will exceed the seven years for which the half-pay is
already established. Besides this, whatever may be the
visionary speculations of some men at this time, we shall
find it indispensable, after the war, to keep on foot a con-
siderable body of troops; and all the officers retained for
this purpose, must be deducted out of the half-pay list. If
any one will take the pains to calculate the expense on
these principles, I am persuaded he will find the addition
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? HAMILTON. 297
of expense from the establishment proposed, by no means
a national object.
The advantages of securing the attachment of the army
to congress, and binding them to the service, by substantial
ties, are immense.
We should, then, have discipline; an army in reality, as
well as in name. Congress would then have a solid basis
of authority and consequence; for with me it is an axiom,
that in our constitution an army is essential to the Ameri-
can union.
CThe providing of supplies, is the pivot of every thing
else; (though a well constituted army would not, in a small
degree, conduce to this, by giving consistency and weight
to government,) there are four ways, all which must be
united, -- a foreign loan, -- heavy pecuniary taxes, -- a
tax in kind, -- a bank founded on public and private credit;. '
As to a foreign loan, I dare say, congress are doing every
thing in their power to obtain it. The most effectual way
will be, to tell France that without it, we must make terms
with Great Britain. This must be done with plainness and
firmness,but with respect and without petulance; not as a me-
nace, but as a candid declaration of our circumstances. We
need not fear to be deserted by France; her interest and
honour are too deeply involved in our fate; and she can
make no possible compromise. She can assist us, if she is
convinced it is absolutely necessary, either by lending us,
herself, or by becoming our surety, or by influencing Spain.
It has been to me astonishing, how any man could have
doubted, at any period of our affairs, of the necessity of a
foreign loan. It was self-evident that we had not a fund
of wealth in this country, capable of affording revenues
equal to the expenses. We must, then, create artificial re-
venues, or borrow; the first was done, but it ought to have
been foreseen, that the expedient could not last, and we
should have provided in time for its failure.
vol. i. 38
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? THE LIFE OF
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f 'Here was an error of congress. I have good reason to
believe, that measures were not taken in earnest early
enough to procure a loan abroad: I give you my honour,
that from our first outset, I thought as I do now ; and wished
for a foreign loan, not only because I foresaw it would be
essential, but because I considered it a tie upon the nation
from which it was derived, and as a mean to prop our cause
in Europe.
u\ Concerning the necessity of heavy pecuniary taxes, I
need say nothing, as it is a point in which every body is
agreed; nor is there any danger, that the product of any
taxes raised in this way, will overburthen the people, or ex-
ceed the wants of the public. Indeed, if all the paper in
circulation were drawn annually into the treasury, it would
neither do one nor the other.
'Aa to a tax in kind, the necessity of it results from this
principle, -- that the money in circulation is not a sufficient
representative of the productions of the country, and conse-
quently no revenues raised from it, as a medium, can be
a competent representative of that part of the products
of the country, which it is bound to contribute to the support
of the public. J The public, therefore, to obtain its due, or
satisfy its just demands and its wants, must call for a part
of these products themselves. This is done in all those
countries which are not commercial; in Russia, Prussia,
Denmark, Sweden, &c. , and is peculiarly necessary in our
case.
Congress, in calling for specific supplies, seem to have
had this in view; but their intention has not been answer-
ed. The states, in general, have undertaken to furnish the
supplies by purchase, -- a mode, as I have observed, at-
tended with every inconvenience, and subverting the prin-
ciple on which the supplies were demanded,--the insuffi-
ciency of our circulating medium, as a representative for
the labour and commodities of the country. It is, there-
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? HAMILTON. 209
fore, necessary, that congress should be more explicit;
should form the outlines of a plan for a tax in kind, and re-
commend it to the states, as a measure of absolute neces-
sity.
The general idea I have of a plan is, that a respectable
man should be appointed by the state in each county to
collect the taxes, and form magazines ; that congress should
have in each state an officer to superintend the whole, and
that the state collectors should be subordinate and respon-
sible to them. This continental superintendent might be
subject to the general direction of the quarter-master-gene-
ral, or not, as might be deemed best; but if not subject to
him, he should be obliged to make monthly returns to the
President at War, who should instruct him what propor-
tion to deliver to the quarter-master-general. It may be
necessary, that the superintendents should sometimes have
power to dispose of the articles in their possession, on pub-
lic account; for it would happen, that the contributions,
in places remote from the army, could not be transported
to the theatre of operations without too great expense; in
which case, it would be eligible to dispose of them, and
purchase with the money so raised in the counties near the
immediate scene of war.
I know the objections which may be raised to this plan,
-- its tendency to discourage industry and the like; but
necessity calls for it; we cannot proceed without, and less
evils must give place to greater. It is, besides, practised
with success in other countries, and why not in this? It
may be said, the examples cited are from nations under
despotic governments, and that the same would not be
practicable with us; but I contend, where the public good
is evidently the object, more may be effected in govern-
ments like ours, than in any other. It has been a constant
remark, that free countries have ever paid the heaviest
taxes; the obedience of a free people to general laws, how-
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? 300 THE LIFE OF
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ever hard they bear, is ever more perfect than that of
slaves to the arbitrary will of a prince. To this, it may be
added, that Sweden was always a free government, and
is so now, in a great degree, notwithstanding the late re-
volution.
a-, , t /, y'i' How far it may be practicable to erect a bank on the faint
\ credit of the public, and of individuals, can only be certainly
t ^. ,v determined by the experiment; but it is of so much import-
ance that the experiment ought to be fully tried. When I
saw the subscriptions going on to the bank established for
supplying the army, I was in hopes it was only the embryo
of a more permanent and extensive establishment. But I
have reason to believe I shall be disappointed. It does not
seem to be at all conducted on the true principles of a bank.
The directors of it are purchasing with their stock, instead
of bank notes as I expected; in consequence of which, it
must turn out to be a mere subscription of a particular sum
of money, for a particular purpose.
Paper credit never was long supported in any country,
on a national scale, where it was not founded on the joint
basis of public and private credit. An attempt to establish
it on public credit alone, in France, under the auspices of
Mr. Law, nearly ruined the kingdom. We have seen the
effects of it in America; and every successive experiment
proves the futility of the attempt. Our new money is de-
preciating almost as fast as the old, though it has, in some
states, as real funds as paper money ever had. The rea-
son is, thai the moneyed men have not an immediate interest
to uphold its credit. They may even, in many ways, find
it their interest to undermine it. The only certain manner
to obtainapermanent paper credit, is to engage the moneyed
interest immediately in it, by making them contribute the
whole or part of the stock, and giving them the whole or
part of the profits.
The invention of banks, on the modern principle, origina-
P~
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? HAMILTON. 301
ted in Venice. There, the public, and a company of mo-
neyed men, are mutually concerned. The Bank of England . . 1 \ t>'
unites public authority and faith, with private credit; and . --. "' J. {.
hence we see what a vast fabric of paper credit is raised on'
a visionary basis. Had it not been for this, England would
never have found sufficient funds to carry on her wars; but
with the help of this, she has done, and is doing, wonders.
The Bank of Amsterdam is on a similar foundation.
And why cannot we have an American bank? Are our
moneyed men less enlightened to their own interest, or less
enterprising in the pursuit 1 I believe the fault is in go-
vernment, which does not exert itself to engage them in
such a scheme. It is true, the individuals in America are
not very rich; but this would not prevent their instituting
a bank; it would only prevent its being done with such
ample funds as in other countries. Have they not sufficient
confidence in the government, and in the issue of the cause?
Let the government endeavour to inspire that confidence,
by adopting the measures I have recommended, or others
equivalent to them. Let it exert itself to procure a solid
confederation, -- to establish a good plan of executive ad-
ministration,-- to form a permanent military force,--to ob-
tain, at all events, a foreign loan. If these things were in
a train of vigorous execution, it would give a new spring
to our affairs; government would recover its respectability,
and individuals would renounce their diffidence.
The object I should propose to myself, in the first in-
stance, from a bank, would be an auxiliary mode of sup-
plies; for which purpose contracts should be made between
government and the bank, on terms liberal and advanta-
geous t<j the latter. Every thing should be done, in the first
instance, to encourage the bank ; after it gets well establish-
ed, it will take care of itself, and government may make the
best terms it can for itself. -"\
The first step to establishing the bank, will be to engage j
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? 302 THE LIFE OF
a number of moneyed men of influence to relish the project,
and make it a business. The subscribers to that lately es-
tablished, are the fittest persons that can be found; and their
plan may be interwoven.
The outlines of my plan would be to open subscriptions,
in all the states, for the stock, which we will suppose to be
one million of pounds. Real property, of every kind, as
well as specie, should be deemed good stock; but at least
a fourth part of the subscription should be in specie or
plate. There should be one great company, in three di-
visions; in Virginia^ Philadelphia, and at Boston; or two,
at Philadelphia and Boston. The bank should have aright
to issue bank notes, bearing two per cent, interest for the
whole of their stock; but not to exceed it. These notes
may be payable every three months, or oftener; and the
faith of government must be pledged for the support of the
bank. It must, therefore, have a right, from time to time,
to inspect its operations; and must appoint inspectors for
the purpose.
The advantages of the bank may consist in this: in the
profits of the contracts made with government, which should
bear interest, to be annually paid in specie; in the loan of
money at interest, say six per cent. ; in purchasing lives by
annuities, as practised in England, &c. The benefit result-
ing to the company is evident, from the consideration, that
they may employ in circulation a great deal more money
than they have specie in stock, on the credit of the real
property which they will have in other use. This money
will be employed, either in fulfilling their contracts with
the public, by which, also, they will gain a profit, or in
loans, at an advantageous interest, or in annuities.
The bank may be allowed to purchase plate and bullion,
and coin money, allowing government a part of the profit.
I make the bank notes bear interest, to obtain a readier
currency, and to induce the holders to prefer them to spe-
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? HAMILTON. 303
cie, to prevent too great a run upon the bank, at any time,
beyond its ability to pay.
If government can obtain a foreign loan, it should lend to
the bank, on easy terms, to extend its influence, and facili-
tate a compliance with its engagements. If government
could engage the states to raise a sum of money in specie,
to be deposited in bank, in the same manner, it would be
of the greatest consequence. If government could prevail
on the enthusiasm of the people, to make a contribution in
plate, for the same purpose, it would be a master stroke.
Things of this kind sometimes succeed in popular contests;
and if undertaken with address, I should not despair of its
success; but I should not be sanguine.
The bank may be instituted for a term of years, by way
of trial; and the particular privilege of coining money be
for a term still shorter.
A temporary transfer of it to a particular company can
have no inconvenience, as the government are in no condi-
tion to improve this resource; nor could it, in our circum-
stances, be an object to it, though with the industry of a
knot of individuals, it might be a valuable one to them.
A bank of this kind, even in its commencement, would
answer the most valuable purposes to government, and to
the proprietors; in its progress, the advantages will exceed
calculation. It will promote commerce, by furnishing a
more extensive medium, which we greatly want, in our cir-
cumstances. I mean a more extensive, valuable medium.
We have an enormous nominal one at this time; but it is
only a name.
In the present unsettled state of things, in this country,
we can hardly draw inferences, from what has happened in
others; otherwise I should be certain of the success of this
scheme; but I think it has enough in its favour to be wor-
thy of trial.
I have only skimmed the surface of the different subjects
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? 304 THE LIFE OF
I have introduced. Should the plans recommended come
into contemplation in earnest, and you desire my farther
thoughts, I will endeavour to give them more form and
articularity.
I am persuaded a solid confederation, a permanent ar-
my, a reasonable prospect of subsisting it, would give us
treble consideration in Europe, and produce a peace this
winter.
If a convention is called, the minds of all the states and
the people ought to be prepared to receive its determina-
tions by sensible and popular writings, which should conform
to the views of congress. There are epochs in human af-
fairs, when novelty even is useful. If a general opinion
prevails that the old way is bad, whether true or false, and
this obstructs or relaxes the operations of the public ser-
vice, a change is necessary if it be but for the sake of
change. This is exactly the case now. 'Tis an universal
sentiment that our present system is a bad one, and that
things do not go right on this account. The measure of a
convention would revive the hopes of the people, and give
a new direction to their passions, which may be improved
in carrying points of substantial utility. The eastern states
have already pointed out this mode to congress: they ought
to take the hint, and anticipate the others.
And in future, my dear sir, two things let me recommend,
as fundamental rules for the conduct of congress: to attach
the army to them by every motive, -- to maintain an au-
thority, (not domineering,) in all their measures with the
states. ) The manner in which a thing is done, has more in-
fluence than is commonly imagined. Men are governed
by opinion: this opinion is as much influenced by appear-
ances as by realities. If a government appears to be con-
fident of its own powers, it is the surest way to inspire the
same confidence in others. If it is diffident, it may be cer-
tain there will be a still greater diffidence in others, and
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? HAMILTON. 305
that its authority will not only be distrusted, controverted,
but contemned.
I wish, too, congress would always consider, that a kind-
ness consists as much in the manner as in the thing. The best
things, done hesitatingly, and with an ill grace, lose their
effect, and produce disgust rather than satisfaction or grati-
tude. In what congress have at any time done for the army,
they have commonly been too late. They have seemed to
yield to importunity, rather than to sentiments of justice, or
to a regard to the accommodation of their troops. An at-
tention to this idea is of more importance than it may be
thought. I, who have seen all the workings and progress
of the present discontents, am convinced that a want of
this has not been among the most inconsiderable causes.
You will perceive, my dear sir, this letter is hastily writ-
ten, and with a confidential freedom, not as to a member
of congress, whose feelings may be sore at the prevailing
clamour; but as to a friend, who is in a situation to remedy
public disorders,--who wishes for nothing so much as truth,
and who is desirous for information, even from those less
capable of judging than himself. I have not even time to
correct and copy,* and only enough to add, that I am, very
truly and affectionately, dear sir,
Your most obedient servant,
A. Hamilton.
Such were the plans which his extensive genius origi-
nated, to raise this country above all the chances of the revo-
lution, -- to give to it a national government, -- to call out
all its resources, and to relieve it from that entire depend-
ence on France, which, though not a native, he felt with all
a native's pride.
* For this document, the author is indebted to a connexion of Mr. Ihiane.
vol. i. 39
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? 306 TUB LIFE OF
This feeling is strongly indicated in the following letter
to congress from head quarters.
*****" We may soon be reduced to the humiliating
condition of seeing the cause of America, in America, up-
held by foreign arms. The generosity of our allies has a
claim to all our confidence and all our gratitude; but it is
neither for the honour of America, nor for the interest of
the common cause, to leave the work entirely to them. "
The measures thus suggested by Hamilton, were before
the times. His remark, that the people were proof against
experience, was too true; and the moment when a govern-
ment, possessing all the energies necessary for its own pre-
servation, and all the checks essential to freedom, might
have been formed, passed away.
A short time after this subject was brought before con-
gress, the news of the defeat of Gates, at Camden, was re-
ceived, and a deeper gloom was spread over the public
mind, now sadly disappointed in the fond hopes which had
been indulged, of the benefits to be derived from the co-
operation of France. Hamilton thus speaks of this event,
in a letter of the sixth of September, written to a near friend
in perfect confidence.
"Most people here are groaning under a very disagree-
able piece of intelligence, just come from the southward,
that Gates has had a total defeat near Camden, in South
Carolina. Cornwallis and he met in the night of the fif-
teenth, by accident, marching to the same point. The ad-
vanced guards skirmished, and the two armies halted and
formed till morning. In the morning a battle ensued, in
which the militia, and Gates with them, immediately ran
away, and left the continental troops to contend with the
enemy's whole force.
"They did it obstinately, and probably are most of them
cut off. Gates, however, who writes to congress, seems
to know very little what has become of his army. He
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? HAMILTON. 307
showed that age, and the long labours and fatigues of a
military life, had not. in the least impaired his activity; for
in three days and a half he reached Hillsborough, one hun-
dred and eighty miles from the scene of action, leaving all
his troops to take care of themselves, and get out of the
scrape as well as they could. He has confirmed, in this
instance, the opinion I always had of him. This event
will have very serious consequences to the southward.
People's imaginations have already given up North Caro-
lina and Virginia; but I do not believe either of them will
fall. I am certain Virginia cannot. This misfortune af-
fects me less than others, because it is not in my temper to
repine at evils that are past, but to endeavour to draw
good out of them, and because I think our safety depends
on a total change of system, and this change of system will
only be produced by misfortune. "
On being informed of this disaster, congress wisely con-
fided to Washington the selection of a successor to the un-
fortunate general. The importance of this trust, was strongly
felt at head quarters, and though Washington preferred
Greene, yet when called upon to act under the resolution
of that body, he duly appreciated the full extent of their
confidence, and with that slow, but sure discretion, which
rarely erred, he weighed every circumstance connected with
the station. Respect for local feelings, might have led him
to prefer a general officer from the south, had any such been
deemed equal to this high command; a regard, also, for the
prejudices of certain members of congress against Greene,
and the injurious conduct which had been exhibited to him
as quarter-master-general, gave rise to a fear that he might
not receive that support which the scene of his operations
eminently demanded. These well-grounded reasons for
hesitation, induced the ardent friendship of Hamilton to ap-
prehend, lest, in the interval of decision, some circumstance
might occur to bias the judgement of the commander-in-
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? 308 THE LIFE OF
chief, and lose to the country the services of a man, in whose
superior qualifications he had unmeasured confidence. He
immediately exerted all his influence to induce an instant
decision. The other members of the family, in whom the
character of Greene had inspired similar sentiments, con-
curred in urging his selection; and Washington, thus sus-
tained by his disinterested and most confidential advisers,
chose a Deliverer for the south, -- a choice which, under the
peculiar circumstances which existed, is perhaps among the
most exalted acts of his life.
"This choice," says La Fayette, "when made public, was
generally approved by the army, but not to the high degree
in which it was afterwards applauded. Congress and the
country supposed the share of friendship in the choice,
greater than it had been. Many suspended, or flatly denied
their approbation, until it was universally acknowledged,
that in General Greene were united all the abilities and
virtues which fitted him for this important command. "
A letter from Colonel Harrison, written at this time
marks the state of opinion in congress on this subject.
HARRISON TO HAMILTON.
October 27, 1780.
MY DEAR HAMILTON,
We are only leaving Philadelphia. The most flattering
attentions have been paid to Meade and myself, and such
as would not permit us to progress before, unless we had
shown ourselves entirely disregardless of the great world;
besides, motives of a public nature concurred to make us
stay thus long. From all I have seen and heard, there is a
good disposition in congress to do all they can for the army
and the public interest, and there are many very sensible
men among them. In general, they are most warmly at-
tached to the General, and his recommendations will have
their weight, while the same spirit prevails. It is said, there
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? HAMILTON. 309
has been infinitely more harmony among them for some time
past, than has appeared since the first years of their appoint-
ment. I am not, however, without some apprehension, that
if they proceed in the case of Lee, &c. the monster (party,)
may show itself again, and that we may have a second
edition of the measures adopted in the instance of Deane.
Our friends Sullivan and Carroll have been of great service;
and gentlemen who are, or pretend to be, in the secrets of the
cabinet, say they have contributed immeasurably, by their
independent conduct, to destroy the eastern alliance.
Bland is very clever, and without question wishes to push on
in the true and right road. Grayson says this is the best
congress we have had since the first. Our dear Laurens
respects many of the members; and General Greene's ap-
pointment, I believe, is entirely consonant to the wishes of
congress in general, though we have heard there were mem-
bers much disposed, if facts had not been so obstinate, to
excuse General Gates. The former is here, and I suppose
will set out in a day or two; Meade and I will serve him
all we can. We have done what we could already. Apro-
pos, you delivered him my letter. Our finances are entirely
deranged, and there is little or no money in the treasury.
1 believe they are a subject of much consideration and puz-
zlement; the supplies of the army are also matters of pre-
sent attention, but I don't know what will be done. I hope
we shall, by Christmas, have some clothing from the West
Indies, if the moth have not destroyed it; -- a quantity it is
said has been lying there. It is much to be wished that
General Greene were at the south. The delegates from
that quarter think the situation of Cornwallis delicate, and
that by management, and a proper application and use of
the force there, the late check given Ferguson might be im-
proved into the Earl's total defeat. This, I fear, is too much
even to hope. The sending the Baron is considered, as far
as I have heard, perfectly right, and Lee's corps give great
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? 310 THE LIFE OP
satisfaction. I am just about to mount my horse, and there-
fore shall say but little more. Laurens will write unto you
in a few days, I suppose, and communicate any new occur-
rences. My love to the lads of the family, -- the same to
you. May you be long happy. My most respectful com-
pliments to the General.
Most truly and affectionately,
Rob. H. Harrison.
P. S. The Board have been absolutely too poor to pro-
cure parchment for the many promotions that have been
required.
Greene, on the annunciation to him of his appointment,
by Hamilton, proceeded to head quarters,* and, after an
interview with Washington, visited Philadelphia, to con-
cert the measures necessary for the supplies of his army;
and having made every exertion to secure the co-operation
of individuals possessing influence, near the scene of his fu-
ture operations, arrived at Charlotte, the head quarters of
the army, on the second of December, where he received
a letter from Hamilton, directing him to call a court mar-
tial on Gates, without delay, and give him every facility for
an immediate defence, -- who wrote to Congress,! com-
plaining of his not being notified, in due time, of his being
superseded. The defeat of King's Mountain induced Corn-
wallis to order a detachment, under Leslie, of three thou-
sand men, which Clinton had sent on to co-operate in Vir-
ginia, to join him by the way of Charleston; and as it was
advancing in the direction of Camden, Greene moved with
his main body to the vicinity of the troops under General
Morgan.
The situation of the country, and of the army, when
Greene took the command, is thus described, in a letter
* October 22d, 1780. t January 3d, 1781.
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? HAMILTON. 311
from him to Colonel Hamilton, written from the camp, at
the falls of the Pedee.
GENERAL GREENE TO COLONEL HAMILTON.
January 10th, 1781.
MY SEAR COLONEL,
General Du Portail being on his way to the northward,
gives me an opportunity to write you, which I should have
done before, had not my letters to his excellency contained
as full information of the state of things as I was able to
give, from the little time I had been in the department.
When I was appointed to this command, I expected to
meet with many new and singular difficulties; but they in-
finitely exceed what I apprehended. This is really carry-
ing on a war in an enemy's country; for you cannot esta-
blish the most inconsiderable magazine, or convey the
smallest quantity of stores from one post to another, with-
out being obliged to detach guards for their security. The
division among the people is much greater than I imagined,
and the whigs and tories persecute each other, with little
less than savage fury. There is nothing but murders, and
devastations, in every quarter.
The loss of our army at Charleston, and the defeat of
General Gates, has been the cause of keeping such shoals
of militia on foot, and their service has been accompanied
with such destruction and loss, as has almost laid waste the
whole country. Nothing has been more destructive to the
true interest of this country, than the mode adopted for its
defence. Two misfortunes happening, one after the other,
may have rendered it unavoidable the last season; but
should it be continued, the inhabitants are inevitably ruined,
and the resources of the country rendered incapable of af-
fording support to an army competent to its defence. Go-
vernment here is infinitely more popular than to the north-
ward, and there is no such thing as national character or
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? 312 THE LIFE OF
national sentiment. The inhabitants are from all quarters
of the globe, and as various in their opinions, projects, and
schemes, as their manners and habits are from their early
education. Those in office, from a vanity to be thought
powerful, join in the measure of imposing upon the public
respecting the strength and resources of these southern
states; and while congress, and the minister of France, are
kept under this fatal delusion, I fear little support will be
given to this department. The inhabitants are numerous;
but they would be rather formidable abroad than at home.
They are scattered over such a vast extent of country, that
it is difficult to collect, and still more difficult to subsist
them. There is a great spirit of enterprise among the back
people, and those that come out as volunteers are not a lit-
tle formidable to the enemy. There are, also, some parti-
cular corps, under Sumpter, Marion, and Clarke, that are
bold and daring; the rest of the militia are better calcula-
ted to destroy provisions than oppose the enemy.
At Philadelphia, and all my journey through the country,
I endeavoured to impress upon those in power, the necessi-
ty of sending clothing, and supplies of every kind, immedi-
ately to this army. But poverty was urged as a plea, in bar
to every application.
