"* Congress had
delayed to act upon it, until, a formal demand of its ratifi-
cation being made by France, the convention was deliber-
ately examined by the secretary of foreign affairs.
delayed to act upon it, until, a formal demand of its ratifi-
cation being made by France, the convention was deliber-
ately examined by the secretary of foreign affairs.
Hamilton - 1834 - Life on Hamilton - v2
G.
193 to 347.
39
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? 300
THE LIFE OF
of nations, would seem to have been an event fraught with
the most important and immediate interest to the civilized
world, and an American might have hoped to have seen
her vast prospective greatness attracting the eyes of Eu-
rope, and commanding all its attention. But the impo-
tence of the confederacy and the visionary objects of this
commission defeated those hopes. From these causes a
larger view of our foreign relations would seem unneces-
sary, were it not for the powerful influence which the
policy of the great leading powers produced on the social
condition of the American states.
Those with France, their ancient ally, first attract atten-
tion. Nothing is more obvious in all her policy than the
sagacity of her statesmen, who foresaw that the moment
her political influence over the confederacy ceased, every
other connection would become a minor consideration.
Hence her solicitude that all the American negotiations
should be conducted near her court. But England and
Spain were both unwilling that Paris should be the centre
of political action. Great Britain insisted as a previous
condition to any negotiation an embassy to London, "as
more suitable to the dignity of either power. " The Span-
ish minister declared, that in matters between its crown
and any other power, " the custom of its court (the most
regular and systematic of all others) was to negotiate be-
tween themselves, without availing themselves of a third
place. " Franklin having resigned his seat in the commis-
sion, Adams, in consequence of these intimations, was ac-
credited to the court of St. James; Jefferson to that of
Versailles; and Spain appointed a sort of intermediate
minister--a "plenipotentiary charge d'affaires," to reside
at the seat of congress.
While the force of habit formed during her colonial
relations, similarity of language, laws, and manners, all
attracted the American people to England, other causes
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? HAMILTON.
307
operated as insuperable obstacles to an extensive com-
merce between the United States and France.
The poverty of the American people denied to them the
luxuries of their ally. The inferior fabric and peculiar
fashion of articles of primary necessity, prevented their
being introduced into general use. For those which were
sought, few American products would be received in ex-
change; while the commercial system of France, yet in
its infancy, charged the objects of commerce with such a
multiplicity of duties, and those so oppressive as to deter
enterprise. The principal article of exchange was the
subject of a monopoly, and charged with a duty to the
crown, of too much value to be relinquished by a needy
monarch. * On other articles accumulated duties were le-
vied, and these were partitioned among so many recipients,
as placed it beyond the power of the financier to reduce
them to one denomination; while the political influence
of the beneficiaries would not permit them to be diminished
or suppressed. These were some of the embarrassments
to a direct trade. The colonial trade had been long con-
ducted under a most rigid system, and as the treaty of
seventeen hundred and seventy-eight had secured to France
the free admission of her manufactures into the United
States, they had nothing to offer in the shape of immunities
to open the sealed commerce of her islands. f
Soon after his return to Europe, La Fayette, at whose
* Tobacco yielded twenty. eight millions. It constituted one-third of the
whole exports of the United States prior to the revolution.
t Compelled by necessity, France opened her colonial ports during the war,
but at its close, by an arret, dated thirtieth of August, seventeen hundred and
eighty-four, she permitted the importation into them only of a few articles of
primary necessity, and confined the exports to rum, molasses, and goods
brought from France, which paid Hie local duties with an iidvalorem of one
per cent. A discriminating duty was also imposed on salted beef and dried
fish, to form a fund for the encouragement of the French fisheries.
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? 308
THE LIFE OF
instance the free ports stipulated in the treaty of seventeen
hundred and seventy-eight were designated, made strong
representations to his court of the benefits to be anticipated
from enlarging the commercial intercourse of the two
countries. The representations were renewed by Jeffer-
son often and with much detail, but the progress of the
negotiation was slow--indicative of the altered temper
of Vergennes, from his failure to control the definitive
treaty with England--and attended with circumstances not
a little wounding to American pride.
The first letter addressed to that minister received no
other answer than that it had been transmitted to the
comptroller-general. To subsequent communications it
was replied, "that not a sufficient dependence could be
placed on arrangements taken with us;" and an act of one
of the states, by which a discrimination of duties was made
between natives and foreigners, became the subject of a
letter from the premier, which, after reproaching the
American minister with a disregard of reciprocity in our
navigation laws and commercial regulations, closed with a
threat, " that the king will be under the necessity, contrary
to his wishes, to fall upon such means as will tend to put
matters upon a perfect equality. "*
These complaints were referred to the secretary of fo-
reign affairs, whose report admitted that the French mer-
chants enjoyed fewer privileges than the merchants of the
United States did in France, and that the act of Massachu-
setts " had deviated both from the letter and spirit of the
treaty. "f While the impotence of the confederation thus
subjected it to the just reproach of a breach of faith to-
wards their ally, it also gave rise to reclamations for indi-
vidual claims, the justice whereof could not be denied, and
which there were no means to discharge. The disappoint-
* 2 D. c. 488.
t 1 D. C. 243.
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? HAMILTON.
309
ments that followed produced great irritation among the
French residents in the United States, which extended to
her legation, and drew from them remonstrances, wherein
the respect due to an independent government was often
forgotten.
In vain did congress renew their assurances of eventual
payment, founded on the good faith of the states. Dis-
criminations in the provision for the interest on their
debts, from which provision foreigners were expressly ex-
cluded by some of the states, were pointed out, and the
very ground on which the delay of justice was excused,
the inability to compel the collection of taxes, gave rise to
the taunting inquiry, "Is there one, or are there eleven
republics V
It being a leading maxim in Jefferson's politics " to mul-
tiply the points of contact and connection" with France,
it will be seen, that he used every means to promote inter-
course with a people whose habits, manners, tastes, and
morals he admired.
The insufficient provision for the interest and instal-
ments then due of the debt to France, led to a proposition
to purchase it. The terms of this proposition are found in
the secret journal of congress of the second of October,
seventeen hundred and eighty-seven, giving an extract of
a letter from Jefferson to the secretary of foreign affairs:--
"That a proposition has been made to Monsieur de Ca-
lonne, minister of the finances of France, by a company
of Dutch merchants, to purchase the debt due from the
United States to the crown of France; giving for the said
debt, amounting to twenty-four millions of livres, the sum
of twenty millions of livres. That information of this
proposition has been given to him by the agent of the
said company, with the view of ascertaining whether the
proposed negotiation would be agreeable to congress.
That the said minister suggests, 'that if there is a danger
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? 310
THE LIFE OF
of the public payments not being punctual, whether it might
not be better that the discontents which would then arise,
should be transferred from a court of whose good will we
have so much need, to the breasts of a private company. '
That the credit of the United States is sound in Holland;
and that it would probably not be difficult to borrow in
that country the whole sum of money due to the court of
France, and to discharge that debt without any deduc-
tion; thereby doing what would be grateful to the court,
and establishing with them a confidence in our honour. "*
This subject was resumed in a letter from Jefferson to
Jay of the twelfth of November following-f He wrote:
"In a letter which I had the honour of writing you on the
twenty-sixth December, I informed you that a Dutch com-
pany were making propositions to the minister of France
here, to purchase at a discount the debt due from the Uni-
ted States to this country. I have lately procured a copy
of their memoir, which I now enclose. Should congress
think this subject worthy their attention, they have no
time to lose, as the necessities of the minister, which alone
have made him to listen to this proposition, may force him
to a speedy conclusion. "
The former of these letters was referred to the board
of Treasury, who on the second of October of the follow-
ing year made a report; which, after reciting the previous
extracts of the letter of Jefferson, contains comments full
of meaning:--
"That at the time the debt due from the United States
to the crown of France was contracted, it could not have
been foreseen that the different members of the union
would have hesitated to make effectual provision for the
discharge of the same, since it had been contracted for
the security of the lives, liberties, and property of their
* 4 S. J. 386.
t 3 D. C. 175.
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? HAMILTON.
311
several citizens, who had solemnly pledged themselves for
its redemption; and that, therefore, the honour of the
United States cannot be impeached, for having authorizea
their minister at the court of France to enter into a formal
convention, acknowledging the amount of the said debt,
and stipulating for the reimbursement of the principal and
interest due thereon.
"That should the United States at this period give any
sanction to the transfer of this debt, or attempt to make a
loan in Holland for the discharge of the same, the persons
interested in the transfer, or in the loan, would have rea-
son to presume that the United States in congress would
make effectual provision for the punctual payment of the
principal and interest.
"That the prospect of such provision being made within
a short period, is by no means flattering; and though the
credit of the United States is still sound in Holland, from
the exertions which have been made to discharge the in-
terest due to the subscribers to the loans in that country,
yet, in the opinion of this board, it would be unjust as well
as impolitic, to give any public sanction to the proposed
negotiation. Unjust, because the nation would contract
an engagement without any well-grounded expectation of
discharging it with proper punctuality. Impolitic, because
a failure in the payment of interest accruing from this ne-
gotiation (which would inevitably happen) would justly
blast all hopes of credit with the citizens of the United
Netherlands, when the exigencies of the union might ren-
der new loans indispensably necessary.
"The board beg leave further to observe, that although a
grateful sense of the services rendered by the court of
France, would undoubtedly induce the United States in
congress to make every possible exertion for the reim-
bursement of the moneys advanced by his most christian
majesty, yet, that they cannot presume that it would tend
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? 312 THE LIFE OF
<<
to establish in the mind of the French court an idea of
the national honour of this country, to involve individuals
in a heavy loan, at a time when congress were fully sensi-
ble that their resources were altogether inadequate to dis-
charge even the interest of the- same,* much less the instal-
ments of the principal, which would from time to time be-
come due. How far the idea of transferring the discontents
which may prevail in the French court, for the want of the
punctual payment of interest, to the breast of the private
citizens of Holland, would be consistent with sound policy,
the board forbear to enlarge on.
"It may be proper, however, to observe, that the public
integrity of a nation is the best shield of defence against
any calamities to which, in the course of human events, she
may find herself exposed.
"This principle, so far as it respects the conduct of the
United States in contracting the loans with France, cannot
be called in question. The reverse would be the case,
should the sanction of the United States be given either
to the transfer of the French debt, or to the negotiation of
a loan in Holland for the purpose of discharging it.
"If it be further considered, that the consequences of a
failure in the punctual payment of interest on the moneys
borrowed by the United States, can by no means be so
distressing to a nation, (and one powerful in resources,) as
it would be to individuals, whose dependence for support
is frequently on the interest of the moneys loaned, the
board presume that the proposed negotiation cannot be
considered at the present juncture, in any point of view,
either as eligible or proper. Under these circumstances,
* Jefferson wrote to Carmichael at Madrid, June 14, 1787 :--" New-York
still refuses to pass the impost in any form, and were she to pass it, Pennsyl-
vania will not uncouple it from the supplementary funds. These two states
and Virginia, are the only ones, my letters say, which have paid any thing
into the continental trcasary for a twelvemonth past. "
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? HAMILTON. 313
they submit it as their opinion, " that it would be proper
without delay to instruct the minister of the United States
at the court of France,* not to give any sanction to any
negotiation which may be proposed for transferring the
debt due from the United States, to any state, or compa-
ny of individuals, who may be disposed to purchase the
same. "
So jealous were congress of the injury which this pro-
position might inflict on the national character, that on the
day on which this report is dated, they instantly passed
an act instructing Jefferson not to promote any negotia-
tion for transferring the debt due to France from the
United States. f
Thus the national honour was saved, but the lure had
succeeded. In prosecution of the project, a letter was ad-
dressed by Jefferson to Dumas,J to ascertain its practica-
bility; whose reply evinced a preference of a purchase
for a sum less than its face, to a loan for the whole amount,
and urged prompt action, stating that the sacrifice on
the part of France, would be very small. An arret was
accordingly framed and submitted to Calonne. That min-
ister, grasping at such a prospect of relief from his finan-
cial difficulties, soon after this purchase was suggested,
addressed a letter to Jefferson, giving the assurance that
the monopolies on particular articles would not be renew-
ed, and that the duties on most of the imports, the growth
of the United States, in French or American vessels, were
"suppressed. "? The execution of this arrangement was,
? 3D. C. 183. t3D. C. 289.
X Dumas had a pension from France, revertible to his daughter.
? 3 Dip. Cor. 163. --Oct. 22,1786. --Tins letter also states, that as Virginia
had ordered arms for her militia from France, the duties and prohibition of
them should be abolished. Similar supplies had been furnished by France
to her during the war, which gave rise to questions in the settlement of the
accounts. A more serious difficulty grew out of an act of that state, passed
pending Jefferson's negotiation about the debt, giving a preference to French
40
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? 314 THE LIFE OF
?
however, suspended, not improbably in consequence of the
rejection by congress of the proposed transfer of the debt.
But the disturbances in Holland, and the hostile appear-
ances in Europe, notwithstanding a temporary pacification,
ultimately induced the issuing of arrets, enlarging in some
particulars, and abridging in others, the former arrange-
ment.
One topic of discussion yet remained. It has been pre-
viously mentioned that the treaty with France provided
for the mutual appointment of consuls, under a convention
to be framed between the respective governments. This
subject was not acted upon until July, seventeen hundred
and eighty-one; immediately after the resolutions, submit-
ting the terms of a treaty with Great Britain, had been
passed. A memoir was at that time presented by La Lu-
zerne, containing a draft of a consular convention, pre-
pared at Paris.
It was in its essential features approved by congress the
following January, with one material difference. The
French plan proposed the presentation, by their consuls, of
their commissions to the respective states, which were to
grant them their exequaturs. The American draft required
that the consuls should, " in the first instance," present their
commissions to congress, to be recognised by them by a
public act, and then to have validity in the states. This
plan was sent to Franklin, with instructions to exercise his
discretion as to the words or arrangement of it, but to
confine himself in all important respects to its substance.
brandies. The minister of the Netherlands presented a remonstrance against
this preference, as a breach of treaty. In this treaty, Adams had omitted
an important provision, securing compensation for privileges; but the United
States considered this as a gratuitous favour. The injury was acknowledged,
and resolutions were adopted by congress, urging Virginia to repeal the act,
founded on a report from the department of foreign affairs, censuring the
granting of favours by any state. --i S. J. 401.
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? HAMILTOX. 315
?
A convention was entered into by him, and was submitted
to congress in seventeen hundred and eighty-four; France
having in the mean time appointed Marbois consul-gener-
al, with a subordinate corps of consuls and vice-consuls.
On the consideration of this convention, congress, at the
instance of Jay, unanimously resolved, that instructions
should be given that the signature of the convention
should be delayed until further advices, unless it had been
already signed. A despatch from Franklin announced that
h had been already signed, and that a copy had been so
long since transmitted to congress, that its ratification was
expected; he added," I am not informed what objection has
arisen in congress to the plan sent me. Mr. Jefferson
thinks it may have been to that part which restrained the
consuls from all concerns in commei-ce.
"* Congress had
delayed to act upon it, until, a formal demand of its ratifi-
cation being made by France, the convention was deliber-
ately examined by the secretary of foreign affairs.
On this examination it appeared that it proposed three
principal objects, in the promotion of which, it was mani-
fest, that the United States had no interest.
The first was, a provision against the infraction of the
French and American laws of trade. As the United
States had no laws for the regulation of her commerce with
France or her dominions, there could be no use in a pro-
vision against the' infraction of them. The second was,
a restriction of the emigration to the other, of the people
of either country, which, as there was no reason to ap-
prehend emigration from the United States to France, was
superfluous. The third, established a corps of "consuls,
vice-consuls, and agents," so coherent, so capable of acting
jointly and secretly, and so ready to obey the order of
their chief, that it could not fail of being influential in two
2 Dip. Cor. 44.
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? 316 THE LIFE OF
?
very important political respects--the acquisition and
communication of intelligence, and the dissemination and
impression of such advices, sentiments, and opinions, of
men and measures, as it might be deemed expedient to dif-
fuse and encourage. " An arrangement, which, in France,
"where nothing could be printed without being licensed,
or said without being known, and, if disliked, followed
with inconvenience, and where the people being perfectly
unimportant, every measure to influence their opinions
must be equally so, could be of no use to America," but
which in the United States would be most dangerous to
her institutions.
The powers and immunities with which this corps was
clothed, were equally objectionable. By one article, certi-
fied declarations made before the consuls, were to be re-
ceived in evidence as conclusive. By another, the consuls
were invested with jurisdiction over all offences in which
the citizens of the respective countries were parties, to the
exclusion of the civil tribunals constitutionally created,
while full immunity was conferred on their persons, pa-
pers, houses, and dependants. Consular chanceries were
also created, which in many respects clashed with the in-
ternal policy of the United States, and a complete jurisdic-
tion was given over French vessels in American harbours.
It is also not a little remarkable, that the original feature
in the French plan, which directed the commissions to
be presented on their arrival to the respective states, ac-
cording to the forms established there, was retained, not-
withstanding the express instruction to follow the plan of
congress, which directed these commissions, "in the first
instance" to be presented to them. This, connected with
the suggestion of Vergennes to Adams, that each state
should appoint its own ministers, combined with the other
circumstances of a direct loan being made by France to
Virginia, and a commercial exemption being obtained from
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? HAMILTON. 317
her, leaves a strong implication that France had in view
relations with the individual states, independent of congress,
and in direct violation of the articles of confederation, and
that Jefferson was not insensible of the advantages Vir-
ginia might derive from these dispositions. The position of
the United States was not a little embarrassing. The
scheme having been framed by a former legislature, was
conclusive upon the country, and its execution was ur-
gently pressed by the French charge d'affaires.
As the only alternative, instructions Were transmitted to
Jefferson to state the objections to the present form, and to
give assurances of their readiness to ratify a convention
agreeable to the scheme originally framed, on the condition
of its being limited to eight or ten years, instead of its be-
ing perpetual, as was first agreed. After much negotia-
tion, a convention liable to fewer objections than that
signed by Franklin, was concluded in seventeen hundred
and eighty-eight; and after an inquiry how far it was ob-
ligatory upon the country, was ratified from necessity by
the present government.
The fruitless efforts made by the Spanish resident at
Paris to induce Jay to enter into a treaty, the basis of
which was a sacrifice of a large part of the undoubted ter-
ritory of the United States, and, as a consequence of such
sacrifice, the total abandonment of the Mississippi, have
been the subject of previous comment.
On the third of June, seventeen hundred and eighty-four,
a few days after Jay had been elected secretary of foreign
affairs, and Jefferson chosen commissioner in his place, it
was thought advisable to renew the instructions of seven-
teen hundred and eighty-two; and a resolution, moved by
Nathan Dane, of Massachusetts, passed, directing the Amer-
ican commissioners " not to relinquish or cede, in any event,
the right of the citizens of the United States to the free
navigation of the Mississippi from its source to the ocean. "
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? 318
THE LIFE or
It has been seen that, notwithstanding the recent nego-
tiation with Jay at Paris, the commissioners, or some of
them, were required to repair to Madrid. This was not
acceded to, and Spain, sensible of her error, sought to re-
move the prejudices of the United States by a course of
conciliation. She mediated a peace between them and the
emperor of Morocco, on terms favourable to the former.
She released a number of Americans, who had been im-
prisoned at Havana for breaches of her navigation laws,
and she commissioned Gardoqui, a partner of a commercial
house at Bilboa, who had been the medium of aids from
Spain at an early period of the revolution, to negotiate a
treaty. He arrived in seventeen hundred and eighty-five,
when the secretary of foreign affairs was authorized to
treat with him.
The point upon which the former negotiation had broken
off, still remained an insuperable obstacle. While Spain
offered to treat on terms, in other respects deemed by Jay
of the greatest advantage, she still insisted upon the reten-
tion of the territory east of the Mississippi, and consequent-
ly upon the exclusion of our citizens from its navigation.
Late in the preceding year she had caused it to be announced
to the United States, that vessels trading through that river
would be exposed to process and confiscation. The obstruc-
tion of them, by her garrison at Natchez, was indicative
of her determination to enforce her pretensions. The
question now assumed a new aspect. The navigation
could not be permanently relinquished. To submit to the
enforcement of her restrictions, while their justice was de-
nied, would be humiliation; to resist by arms, was war.
Influenced by this state of things, by his impression of
the other advantages of the treaty, and by the consider-
ation that Spain was in possession of posts on both branches
of the river, rather than the United States, without money,
without credit, and without an army, should be plunged
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? HAMILTON.
319
into a war. " with very little prospect of terminating it by
a peace, either advantageous or glorious," the American
secretary attended congress, and enforced* the propriety
of a treaty, limited to twenty-five or thirty years; one of
the articles of which would have stipulated the forbear-
ance of our citizens to use its navigation below their own
territories to the ocean for a like term. This proposition
gave great offence. The delegates from the northern
stales approving it, while those of the southern condemned
it. A motion was made to revoke his commission, which
was defeated; and a resolution was introduced, repealing
the instruction to stipulate the free navigation of the Mis-
sissippi to the ocean, consenting to a modified use of it,f
but with a proviso to insist upon the territorial limits fixed
by the definitive treaty with Great Britain. A strong re-
monstrance was made by the delegates of Virginia, in
which, not merely these questions, but the whole plan of
the treaty, was objected to. J
Jayrs plan proposed to give to the merchants, vessels, pro-
ductions, and manufactures of each country, the same
privileges as if they were those of the country itself. It
was urged that as Spain made no discrimination in her
ports between her merchants and those of other nations,
by this article the United States relinquished the right of
making any discrimination, however beneficial it might be
to her, without any consideration. As to the vessels, it
was objected that as Spain admitted those of all coun-
* 6 D. C. 165. --August 3d, 1786.
t These modifications were, permission to land and store American produc-
tions at New-Orleans; an advalorem duty to be paid to Spain on all ship-
ments thence by American citizens; permission to our merchants to re-
side there; a privilege to American vessels to return from its month to that
port, but not to carry any goods, contrary to the regulations of Spain, under
pain of confiscation.
t 4 S. J. 87.
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? 320
THE LIFE OF
tries, even in the carriage of her own productions, " the
United States bound themselves up again without a valuable
consideration. " As to productions, by the policy of Spain
we now enjoyed the free admission of them; nothing
therefore could be gained to us in this respect; and when
our " commerce is subjected to the most severe restric-
tions in almost every foreign port--fish being excluded by
France and Britain--the Mediterranean shut against us--
the West Indies occluded almost altogether--the wheat
and rice trade thus greatly injured--tobacco in France a
monopoly, in Spain contraband--one would suppose it
the duty of every wise American statesman to secure our
rights and interests at home--to give in our own ports to
our own citizens exclusive privileges; but of this advan-
tage the project would deprive them. " This proposed stip-
ulation was objected to on other grounds. It would be
contrary to the policy of the British navigation act," by
the wisdom of which, and of her other regulations in com-
merce, it was stated, Britain had attained to such a height
of power and grandeur on the seas as to be at the same
time the terror and the admiration of the world;" and yet of
the benefits of such a policy and making such discrimina-
tions this project would deprive us. As to manufactures,
it was urged that the right of prohibition or restriction on
exports or imports was given up. This was without a pre-
cedent, unless it was the "family compact," which proved
inconvenient and was annulled; independent nations hav-
ing always retained the right of regulating their own inte-
rior police, and thus of securing reciprocity; a right, the ex-
ercise of which would be subservient to various purposes--
the promotion of virtue and frugality, by the prohibition of
foreign luxuries--the encouragement of manufactures and
of the mechanical arts, by the prohibition of imports. The
treaties with France and other powers stipulated to each
the right of the most favoured nations. These nations
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? HAMILTON.
321
coming into the terms of Spain, in doing which they will
give up nothing, will be entitled to these benefits ; "the
evils of this project will be therefore almost universal, and of
course without remedy. " The surrender or forbearance of
the use of the Mississippi was objected to as inconsistent with
the compact with Virginia as to the western territory. And
it was also contended that its effect would be to dismem-
ber the government by a treaty of commerce, which could
not be done under a limited power to treat.
It would be difficult to select an instance in which the
United States had less motive to reserve or to exert the
power of discrimination or prohibition. As to vessels,
from the course of the trade, the cargoes and the superior
economy of American navigation, a successful competition
on the part of Spain was hopeless. How the policy of
the British navigation act could, under such circumstan-
ces, the United States being the carriers, have been ad-
vantageously adopted, it is not easy to suppose. As to
productions, the only object of Spanish traffic the impor-
tation of which this country has found it expedient to pro-
hibit, is that of slaves. As to manufactures, those of
Spain have never sought the American market.
But it was urged, if the commerce with Spain should be
placed on the footing of natives, that France and Sweden
would in virtue of their treaties be entitled to the same
terms, only by reciprocating to the United States the same
privilege. Was this an evil to be deprecated?
It cannot escape observation how entirely the principles
of this report are at variance with the instructions pro-
posed by Jefferson. Its details have been given chiefly to
show how great and rapid had been the change of opinion
as to the commercial policy of this country, two years
only having elapsed since the approval of those instruc-
tions by congress. That Virginia should have been the
first state since the peace to have proposed, and the first
41
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THE LIFE OF
to have objected to a system of free trade, is only an in-
stance of the error of applying rigidly general maxims of
policy to the conduct of nations, without regard to the
modifications circumstances may indicate. Nor will it fail
to be remarked as additional evidence of the timid coun-
sels by which that state had been governed, that though
in seventeen hundred and eighty-one, her legislature had
instructed Madison to authorize Jay to cede the right of
navigating the Mississippi to Spain absolutely and for
ever, she now declared that to consent to a suspension of
that right would be "to dismember" the government.
The importance Spain attached to that right, is shown
not only by her conduct during the war, but by the
promptitude witli which she opened a negotiation respect-
ing it after the peace. Claiming the exclusive right, and
denying the pretensions of this country, it was thought to
be an important object attained if a treaty could be made
which would imply that she accepted the use of the river
as the lessee of the United states for a specified time, and
thus virtually recognised the reversionary right to be in
them; thus terminating all questions of ownership.
Impelled by this strong motive, and little anticipating
the rapid growth of the western territory, Jay considering
that by this treaty the United States "gained much, and
sacrificed or gave up nothing," continued his negotiation
with the charge of Spain. He fortunately refused "to
admit the navigation of the Mississippi below their limits
on any terms, nor would he consent to any article acknow-
ledging their right in express terms, and stipulating to for-
bear the use of it for a given time," a difficulty that Jay
supposed could be overcome by implication, in which idea
Gardoqui concurred.
The vote prohibiting a surrender of the navigation of
the Mississippi. was a vote of nine states; that authorizing
this compromise was given by seven states. The consti-
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? II A MILTON.
323
tutionality of this vote was denied by the southern states:
and as the division was geographical, gave rise to much
excitement. On the part of the south, it was alleged that
New-England was solely actuated by a desire to check
the population of the west, and thus maintain her prepon-
derance in the union. The eastern states having opposed
the alienation or suspension of this right when the south-
ern states were its advocates, repelled the charge, and
urged that this temporary cession would fix the permanent
right in favour of this country, and prevent a coalition then
apprehended between Great Britain and Spain. A resolu-
tion passed directing Jay to report the state of the negotia-
tion; and as soon as the disposition of congress to consent
to a limited use of the navigation was disclosed, a wide
alarm was spread along the western frontier, and mutual
complaints of aggression by the borderers were heard.
These complaints were referred to Jay, who having stated
acts of hostility by both parties, and his conviction of the
right of the United States to navigate that river from its
source to the ocean, expressed the opinion that if inter-
rupted by her " it will be proper to declare war against
Spain. "
In this state of the question Madison proposed to refer
the consideration of the American grievances to a com-
mittee, but was unsuccessful. In the mean time the agents
of France had manifested great solicitude. It was their
wish* that the negotiation should be committed to Jeffer-
son and transferred to Madrid. With this view Madison,
* March 19, 1787--Madison to Jefferson:--" I discover, through several
channels, that it would be very grateful to the French politicians here to see
our negotiations with Spain shifted into your hands, and carried on under
the mediating auspices of their court. "
April 15, 1787--Madison to Edmund Randolph:--" We mean to propose
that Jefferson be sent under a special commission, to plead the cause of the
Mississippi at Madrid. "--Madison Papers, vol. 2, p. 625, 637.
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? 321
THE LIFE OF
on the eighteenth of April, proposed that a special com-
mission should be issued to Jefferson to proceed to Ma-
drid " to enter into commercial stipulations, and to make
such representations and urge such negotiations as will
be most likely to impress on Spain the friendly disposition
of the United States, and to induce her to make such con-
cessions touching the southern limits and their right to
navigate the Mississippi below them, as might most effec-
tually guard against a rupture of the subsisting harmony,
and promote the mutual interests of the two nations. "
This proposal was referred to Jay; he had previously
made a report showing the disposition of France to pro-
mote the views of Spain, and he now strongly dissuaded
this measure. He stated that it was more advantageous
and more honourable to negotiate at home; that this trans-
fer would offend the Spanish charge^ who would confirm
the suspicions which this measure might excite in his court
of an intention to amuse her, a suspicion to which the lan-
guage of this resolution, as it only empowered him to con-
fer, but not to conclude a treaty,* would be too apt to
give colour. Twelve months after, the excitement in the
western region having increased by the extended rumour
of a disposition to surrender this right, the delegates from
North Carolina proposed a declaration by congress that
the United States " have a clear, absolute, and unalienable"
claim to it. Jay, to whom it was referred, reported that a
declaration ought to be made that this rumour was not
* In this report, Jay observed in reference to the terms of this resolution:
"Perhaps this may only be an inadvertent inaccuracy in the motion; if not,
it gives much colour to the inferences above suggested. "--4 S. J. 342. At
the sitting of the Virginia convention, Monroe reproved the conduct of this
negotiation. Madison replied:--" From the best information, it never was the
sense of the people at large or the prevailing characters of the eastern states
to approve of the measure. "--2 Elliot's Debates, 262-3. But see Madison
Papers, v. 2, p. 637, 642.
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? HAMILTON.
325
founded in fact; but objected to an assertion that the right
was unalienable, lest it might exclude the possibility of
such modifications as, without impairing it, might be ad-
vantageous to the country and satisfactory to its citizens.
A new committee was then raised, of which Hamilton was
chairman. He introduced resolutions, which were adopt-
ed,* that the reported purpose to surrender this right, not
being founded in fact, the delegates be at liberty to com-
municate all such circumstances as may be necessary to
contradict it and remove misconceptions: "That the free
navigation of the river Mississippi is a clear and essential
right of the United States, and that the same ought to be
considered and supported as such. "
The same disposition which had been evinced upon this
question in seventeen hundred and eighty-two, continued
to be manifested by Vergennes. In answer to an inquiry
as to the extent of the guarantee in the treaty of alliance,
he intimated that "our limits were not fixed;" and the
French charge d'affaires was selected by Spain to commu-
nicate to congress the menace of confiscation, previously
mentioned, if their vessels continued to commerce on the
Mississippi.
The jealousies to which this negotiation gave rise, were
fanned by the partisans of France, and were among the
means of exciting hostility against some of the most promi-
nent friends of the federal constitution.
The relations with Great Britain still more exhibit the
disunion and impotence of this assemblage of states.
As soon as her restrictive proclamations were known, a
general shock was felt throughout the confederacy. Com-
merce was thrown out of its usual channels, and the mer-
chants, largely indebted for the extensive importations they
had made, looked round in despair for an outlet to the produc-
* September 16, 1788.
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39
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? 300
THE LIFE OF
of nations, would seem to have been an event fraught with
the most important and immediate interest to the civilized
world, and an American might have hoped to have seen
her vast prospective greatness attracting the eyes of Eu-
rope, and commanding all its attention. But the impo-
tence of the confederacy and the visionary objects of this
commission defeated those hopes. From these causes a
larger view of our foreign relations would seem unneces-
sary, were it not for the powerful influence which the
policy of the great leading powers produced on the social
condition of the American states.
Those with France, their ancient ally, first attract atten-
tion. Nothing is more obvious in all her policy than the
sagacity of her statesmen, who foresaw that the moment
her political influence over the confederacy ceased, every
other connection would become a minor consideration.
Hence her solicitude that all the American negotiations
should be conducted near her court. But England and
Spain were both unwilling that Paris should be the centre
of political action. Great Britain insisted as a previous
condition to any negotiation an embassy to London, "as
more suitable to the dignity of either power. " The Span-
ish minister declared, that in matters between its crown
and any other power, " the custom of its court (the most
regular and systematic of all others) was to negotiate be-
tween themselves, without availing themselves of a third
place. " Franklin having resigned his seat in the commis-
sion, Adams, in consequence of these intimations, was ac-
credited to the court of St. James; Jefferson to that of
Versailles; and Spain appointed a sort of intermediate
minister--a "plenipotentiary charge d'affaires," to reside
at the seat of congress.
While the force of habit formed during her colonial
relations, similarity of language, laws, and manners, all
attracted the American people to England, other causes
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? HAMILTON.
307
operated as insuperable obstacles to an extensive com-
merce between the United States and France.
The poverty of the American people denied to them the
luxuries of their ally. The inferior fabric and peculiar
fashion of articles of primary necessity, prevented their
being introduced into general use. For those which were
sought, few American products would be received in ex-
change; while the commercial system of France, yet in
its infancy, charged the objects of commerce with such a
multiplicity of duties, and those so oppressive as to deter
enterprise. The principal article of exchange was the
subject of a monopoly, and charged with a duty to the
crown, of too much value to be relinquished by a needy
monarch. * On other articles accumulated duties were le-
vied, and these were partitioned among so many recipients,
as placed it beyond the power of the financier to reduce
them to one denomination; while the political influence
of the beneficiaries would not permit them to be diminished
or suppressed. These were some of the embarrassments
to a direct trade. The colonial trade had been long con-
ducted under a most rigid system, and as the treaty of
seventeen hundred and seventy-eight had secured to France
the free admission of her manufactures into the United
States, they had nothing to offer in the shape of immunities
to open the sealed commerce of her islands. f
Soon after his return to Europe, La Fayette, at whose
* Tobacco yielded twenty. eight millions. It constituted one-third of the
whole exports of the United States prior to the revolution.
t Compelled by necessity, France opened her colonial ports during the war,
but at its close, by an arret, dated thirtieth of August, seventeen hundred and
eighty-four, she permitted the importation into them only of a few articles of
primary necessity, and confined the exports to rum, molasses, and goods
brought from France, which paid Hie local duties with an iidvalorem of one
per cent. A discriminating duty was also imposed on salted beef and dried
fish, to form a fund for the encouragement of the French fisheries.
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? 308
THE LIFE OF
instance the free ports stipulated in the treaty of seventeen
hundred and seventy-eight were designated, made strong
representations to his court of the benefits to be anticipated
from enlarging the commercial intercourse of the two
countries. The representations were renewed by Jeffer-
son often and with much detail, but the progress of the
negotiation was slow--indicative of the altered temper
of Vergennes, from his failure to control the definitive
treaty with England--and attended with circumstances not
a little wounding to American pride.
The first letter addressed to that minister received no
other answer than that it had been transmitted to the
comptroller-general. To subsequent communications it
was replied, "that not a sufficient dependence could be
placed on arrangements taken with us;" and an act of one
of the states, by which a discrimination of duties was made
between natives and foreigners, became the subject of a
letter from the premier, which, after reproaching the
American minister with a disregard of reciprocity in our
navigation laws and commercial regulations, closed with a
threat, " that the king will be under the necessity, contrary
to his wishes, to fall upon such means as will tend to put
matters upon a perfect equality. "*
These complaints were referred to the secretary of fo-
reign affairs, whose report admitted that the French mer-
chants enjoyed fewer privileges than the merchants of the
United States did in France, and that the act of Massachu-
setts " had deviated both from the letter and spirit of the
treaty. "f While the impotence of the confederation thus
subjected it to the just reproach of a breach of faith to-
wards their ally, it also gave rise to reclamations for indi-
vidual claims, the justice whereof could not be denied, and
which there were no means to discharge. The disappoint-
* 2 D. c. 488.
t 1 D. C. 243.
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? HAMILTON.
309
ments that followed produced great irritation among the
French residents in the United States, which extended to
her legation, and drew from them remonstrances, wherein
the respect due to an independent government was often
forgotten.
In vain did congress renew their assurances of eventual
payment, founded on the good faith of the states. Dis-
criminations in the provision for the interest on their
debts, from which provision foreigners were expressly ex-
cluded by some of the states, were pointed out, and the
very ground on which the delay of justice was excused,
the inability to compel the collection of taxes, gave rise to
the taunting inquiry, "Is there one, or are there eleven
republics V
It being a leading maxim in Jefferson's politics " to mul-
tiply the points of contact and connection" with France,
it will be seen, that he used every means to promote inter-
course with a people whose habits, manners, tastes, and
morals he admired.
The insufficient provision for the interest and instal-
ments then due of the debt to France, led to a proposition
to purchase it. The terms of this proposition are found in
the secret journal of congress of the second of October,
seventeen hundred and eighty-seven, giving an extract of
a letter from Jefferson to the secretary of foreign affairs:--
"That a proposition has been made to Monsieur de Ca-
lonne, minister of the finances of France, by a company
of Dutch merchants, to purchase the debt due from the
United States to the crown of France; giving for the said
debt, amounting to twenty-four millions of livres, the sum
of twenty millions of livres. That information of this
proposition has been given to him by the agent of the
said company, with the view of ascertaining whether the
proposed negotiation would be agreeable to congress.
That the said minister suggests, 'that if there is a danger
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of the public payments not being punctual, whether it might
not be better that the discontents which would then arise,
should be transferred from a court of whose good will we
have so much need, to the breasts of a private company. '
That the credit of the United States is sound in Holland;
and that it would probably not be difficult to borrow in
that country the whole sum of money due to the court of
France, and to discharge that debt without any deduc-
tion; thereby doing what would be grateful to the court,
and establishing with them a confidence in our honour. "*
This subject was resumed in a letter from Jefferson to
Jay of the twelfth of November following-f He wrote:
"In a letter which I had the honour of writing you on the
twenty-sixth December, I informed you that a Dutch com-
pany were making propositions to the minister of France
here, to purchase at a discount the debt due from the Uni-
ted States to this country. I have lately procured a copy
of their memoir, which I now enclose. Should congress
think this subject worthy their attention, they have no
time to lose, as the necessities of the minister, which alone
have made him to listen to this proposition, may force him
to a speedy conclusion. "
The former of these letters was referred to the board
of Treasury, who on the second of October of the follow-
ing year made a report; which, after reciting the previous
extracts of the letter of Jefferson, contains comments full
of meaning:--
"That at the time the debt due from the United States
to the crown of France was contracted, it could not have
been foreseen that the different members of the union
would have hesitated to make effectual provision for the
discharge of the same, since it had been contracted for
the security of the lives, liberties, and property of their
* 4 S. J. 386.
t 3 D. C. 175.
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? HAMILTON.
311
several citizens, who had solemnly pledged themselves for
its redemption; and that, therefore, the honour of the
United States cannot be impeached, for having authorizea
their minister at the court of France to enter into a formal
convention, acknowledging the amount of the said debt,
and stipulating for the reimbursement of the principal and
interest due thereon.
"That should the United States at this period give any
sanction to the transfer of this debt, or attempt to make a
loan in Holland for the discharge of the same, the persons
interested in the transfer, or in the loan, would have rea-
son to presume that the United States in congress would
make effectual provision for the punctual payment of the
principal and interest.
"That the prospect of such provision being made within
a short period, is by no means flattering; and though the
credit of the United States is still sound in Holland, from
the exertions which have been made to discharge the in-
terest due to the subscribers to the loans in that country,
yet, in the opinion of this board, it would be unjust as well
as impolitic, to give any public sanction to the proposed
negotiation. Unjust, because the nation would contract
an engagement without any well-grounded expectation of
discharging it with proper punctuality. Impolitic, because
a failure in the payment of interest accruing from this ne-
gotiation (which would inevitably happen) would justly
blast all hopes of credit with the citizens of the United
Netherlands, when the exigencies of the union might ren-
der new loans indispensably necessary.
"The board beg leave further to observe, that although a
grateful sense of the services rendered by the court of
France, would undoubtedly induce the United States in
congress to make every possible exertion for the reim-
bursement of the moneys advanced by his most christian
majesty, yet, that they cannot presume that it would tend
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? 312 THE LIFE OF
<<
to establish in the mind of the French court an idea of
the national honour of this country, to involve individuals
in a heavy loan, at a time when congress were fully sensi-
ble that their resources were altogether inadequate to dis-
charge even the interest of the- same,* much less the instal-
ments of the principal, which would from time to time be-
come due. How far the idea of transferring the discontents
which may prevail in the French court, for the want of the
punctual payment of interest, to the breast of the private
citizens of Holland, would be consistent with sound policy,
the board forbear to enlarge on.
"It may be proper, however, to observe, that the public
integrity of a nation is the best shield of defence against
any calamities to which, in the course of human events, she
may find herself exposed.
"This principle, so far as it respects the conduct of the
United States in contracting the loans with France, cannot
be called in question. The reverse would be the case,
should the sanction of the United States be given either
to the transfer of the French debt, or to the negotiation of
a loan in Holland for the purpose of discharging it.
"If it be further considered, that the consequences of a
failure in the punctual payment of interest on the moneys
borrowed by the United States, can by no means be so
distressing to a nation, (and one powerful in resources,) as
it would be to individuals, whose dependence for support
is frequently on the interest of the moneys loaned, the
board presume that the proposed negotiation cannot be
considered at the present juncture, in any point of view,
either as eligible or proper. Under these circumstances,
* Jefferson wrote to Carmichael at Madrid, June 14, 1787 :--" New-York
still refuses to pass the impost in any form, and were she to pass it, Pennsyl-
vania will not uncouple it from the supplementary funds. These two states
and Virginia, are the only ones, my letters say, which have paid any thing
into the continental trcasary for a twelvemonth past. "
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? HAMILTON. 313
they submit it as their opinion, " that it would be proper
without delay to instruct the minister of the United States
at the court of France,* not to give any sanction to any
negotiation which may be proposed for transferring the
debt due from the United States, to any state, or compa-
ny of individuals, who may be disposed to purchase the
same. "
So jealous were congress of the injury which this pro-
position might inflict on the national character, that on the
day on which this report is dated, they instantly passed
an act instructing Jefferson not to promote any negotia-
tion for transferring the debt due to France from the
United States. f
Thus the national honour was saved, but the lure had
succeeded. In prosecution of the project, a letter was ad-
dressed by Jefferson to Dumas,J to ascertain its practica-
bility; whose reply evinced a preference of a purchase
for a sum less than its face, to a loan for the whole amount,
and urged prompt action, stating that the sacrifice on
the part of France, would be very small. An arret was
accordingly framed and submitted to Calonne. That min-
ister, grasping at such a prospect of relief from his finan-
cial difficulties, soon after this purchase was suggested,
addressed a letter to Jefferson, giving the assurance that
the monopolies on particular articles would not be renew-
ed, and that the duties on most of the imports, the growth
of the United States, in French or American vessels, were
"suppressed. "? The execution of this arrangement was,
? 3D. C. 183. t3D. C. 289.
X Dumas had a pension from France, revertible to his daughter.
? 3 Dip. Cor. 163. --Oct. 22,1786. --Tins letter also states, that as Virginia
had ordered arms for her militia from France, the duties and prohibition of
them should be abolished. Similar supplies had been furnished by France
to her during the war, which gave rise to questions in the settlement of the
accounts. A more serious difficulty grew out of an act of that state, passed
pending Jefferson's negotiation about the debt, giving a preference to French
40
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? 314 THE LIFE OF
?
however, suspended, not improbably in consequence of the
rejection by congress of the proposed transfer of the debt.
But the disturbances in Holland, and the hostile appear-
ances in Europe, notwithstanding a temporary pacification,
ultimately induced the issuing of arrets, enlarging in some
particulars, and abridging in others, the former arrange-
ment.
One topic of discussion yet remained. It has been pre-
viously mentioned that the treaty with France provided
for the mutual appointment of consuls, under a convention
to be framed between the respective governments. This
subject was not acted upon until July, seventeen hundred
and eighty-one; immediately after the resolutions, submit-
ting the terms of a treaty with Great Britain, had been
passed. A memoir was at that time presented by La Lu-
zerne, containing a draft of a consular convention, pre-
pared at Paris.
It was in its essential features approved by congress the
following January, with one material difference. The
French plan proposed the presentation, by their consuls, of
their commissions to the respective states, which were to
grant them their exequaturs. The American draft required
that the consuls should, " in the first instance," present their
commissions to congress, to be recognised by them by a
public act, and then to have validity in the states. This
plan was sent to Franklin, with instructions to exercise his
discretion as to the words or arrangement of it, but to
confine himself in all important respects to its substance.
brandies. The minister of the Netherlands presented a remonstrance against
this preference, as a breach of treaty. In this treaty, Adams had omitted
an important provision, securing compensation for privileges; but the United
States considered this as a gratuitous favour. The injury was acknowledged,
and resolutions were adopted by congress, urging Virginia to repeal the act,
founded on a report from the department of foreign affairs, censuring the
granting of favours by any state. --i S. J. 401.
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? HAMILTOX. 315
?
A convention was entered into by him, and was submitted
to congress in seventeen hundred and eighty-four; France
having in the mean time appointed Marbois consul-gener-
al, with a subordinate corps of consuls and vice-consuls.
On the consideration of this convention, congress, at the
instance of Jay, unanimously resolved, that instructions
should be given that the signature of the convention
should be delayed until further advices, unless it had been
already signed. A despatch from Franklin announced that
h had been already signed, and that a copy had been so
long since transmitted to congress, that its ratification was
expected; he added," I am not informed what objection has
arisen in congress to the plan sent me. Mr. Jefferson
thinks it may have been to that part which restrained the
consuls from all concerns in commei-ce.
"* Congress had
delayed to act upon it, until, a formal demand of its ratifi-
cation being made by France, the convention was deliber-
ately examined by the secretary of foreign affairs.
On this examination it appeared that it proposed three
principal objects, in the promotion of which, it was mani-
fest, that the United States had no interest.
The first was, a provision against the infraction of the
French and American laws of trade. As the United
States had no laws for the regulation of her commerce with
France or her dominions, there could be no use in a pro-
vision against the' infraction of them. The second was,
a restriction of the emigration to the other, of the people
of either country, which, as there was no reason to ap-
prehend emigration from the United States to France, was
superfluous. The third, established a corps of "consuls,
vice-consuls, and agents," so coherent, so capable of acting
jointly and secretly, and so ready to obey the order of
their chief, that it could not fail of being influential in two
2 Dip. Cor. 44.
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? 316 THE LIFE OF
?
very important political respects--the acquisition and
communication of intelligence, and the dissemination and
impression of such advices, sentiments, and opinions, of
men and measures, as it might be deemed expedient to dif-
fuse and encourage. " An arrangement, which, in France,
"where nothing could be printed without being licensed,
or said without being known, and, if disliked, followed
with inconvenience, and where the people being perfectly
unimportant, every measure to influence their opinions
must be equally so, could be of no use to America," but
which in the United States would be most dangerous to
her institutions.
The powers and immunities with which this corps was
clothed, were equally objectionable. By one article, certi-
fied declarations made before the consuls, were to be re-
ceived in evidence as conclusive. By another, the consuls
were invested with jurisdiction over all offences in which
the citizens of the respective countries were parties, to the
exclusion of the civil tribunals constitutionally created,
while full immunity was conferred on their persons, pa-
pers, houses, and dependants. Consular chanceries were
also created, which in many respects clashed with the in-
ternal policy of the United States, and a complete jurisdic-
tion was given over French vessels in American harbours.
It is also not a little remarkable, that the original feature
in the French plan, which directed the commissions to
be presented on their arrival to the respective states, ac-
cording to the forms established there, was retained, not-
withstanding the express instruction to follow the plan of
congress, which directed these commissions, "in the first
instance" to be presented to them. This, connected with
the suggestion of Vergennes to Adams, that each state
should appoint its own ministers, combined with the other
circumstances of a direct loan being made by France to
Virginia, and a commercial exemption being obtained from
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? HAMILTON. 317
her, leaves a strong implication that France had in view
relations with the individual states, independent of congress,
and in direct violation of the articles of confederation, and
that Jefferson was not insensible of the advantages Vir-
ginia might derive from these dispositions. The position of
the United States was not a little embarrassing. The
scheme having been framed by a former legislature, was
conclusive upon the country, and its execution was ur-
gently pressed by the French charge d'affaires.
As the only alternative, instructions Were transmitted to
Jefferson to state the objections to the present form, and to
give assurances of their readiness to ratify a convention
agreeable to the scheme originally framed, on the condition
of its being limited to eight or ten years, instead of its be-
ing perpetual, as was first agreed. After much negotia-
tion, a convention liable to fewer objections than that
signed by Franklin, was concluded in seventeen hundred
and eighty-eight; and after an inquiry how far it was ob-
ligatory upon the country, was ratified from necessity by
the present government.
The fruitless efforts made by the Spanish resident at
Paris to induce Jay to enter into a treaty, the basis of
which was a sacrifice of a large part of the undoubted ter-
ritory of the United States, and, as a consequence of such
sacrifice, the total abandonment of the Mississippi, have
been the subject of previous comment.
On the third of June, seventeen hundred and eighty-four,
a few days after Jay had been elected secretary of foreign
affairs, and Jefferson chosen commissioner in his place, it
was thought advisable to renew the instructions of seven-
teen hundred and eighty-two; and a resolution, moved by
Nathan Dane, of Massachusetts, passed, directing the Amer-
ican commissioners " not to relinquish or cede, in any event,
the right of the citizens of the United States to the free
navigation of the Mississippi from its source to the ocean. "
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? 318
THE LIFE or
It has been seen that, notwithstanding the recent nego-
tiation with Jay at Paris, the commissioners, or some of
them, were required to repair to Madrid. This was not
acceded to, and Spain, sensible of her error, sought to re-
move the prejudices of the United States by a course of
conciliation. She mediated a peace between them and the
emperor of Morocco, on terms favourable to the former.
She released a number of Americans, who had been im-
prisoned at Havana for breaches of her navigation laws,
and she commissioned Gardoqui, a partner of a commercial
house at Bilboa, who had been the medium of aids from
Spain at an early period of the revolution, to negotiate a
treaty. He arrived in seventeen hundred and eighty-five,
when the secretary of foreign affairs was authorized to
treat with him.
The point upon which the former negotiation had broken
off, still remained an insuperable obstacle. While Spain
offered to treat on terms, in other respects deemed by Jay
of the greatest advantage, she still insisted upon the reten-
tion of the territory east of the Mississippi, and consequent-
ly upon the exclusion of our citizens from its navigation.
Late in the preceding year she had caused it to be announced
to the United States, that vessels trading through that river
would be exposed to process and confiscation. The obstruc-
tion of them, by her garrison at Natchez, was indicative
of her determination to enforce her pretensions. The
question now assumed a new aspect. The navigation
could not be permanently relinquished. To submit to the
enforcement of her restrictions, while their justice was de-
nied, would be humiliation; to resist by arms, was war.
Influenced by this state of things, by his impression of
the other advantages of the treaty, and by the consider-
ation that Spain was in possession of posts on both branches
of the river, rather than the United States, without money,
without credit, and without an army, should be plunged
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? HAMILTON.
319
into a war. " with very little prospect of terminating it by
a peace, either advantageous or glorious," the American
secretary attended congress, and enforced* the propriety
of a treaty, limited to twenty-five or thirty years; one of
the articles of which would have stipulated the forbear-
ance of our citizens to use its navigation below their own
territories to the ocean for a like term. This proposition
gave great offence. The delegates from the northern
stales approving it, while those of the southern condemned
it. A motion was made to revoke his commission, which
was defeated; and a resolution was introduced, repealing
the instruction to stipulate the free navigation of the Mis-
sissippi to the ocean, consenting to a modified use of it,f
but with a proviso to insist upon the territorial limits fixed
by the definitive treaty with Great Britain. A strong re-
monstrance was made by the delegates of Virginia, in
which, not merely these questions, but the whole plan of
the treaty, was objected to. J
Jayrs plan proposed to give to the merchants, vessels, pro-
ductions, and manufactures of each country, the same
privileges as if they were those of the country itself. It
was urged that as Spain made no discrimination in her
ports between her merchants and those of other nations,
by this article the United States relinquished the right of
making any discrimination, however beneficial it might be
to her, without any consideration. As to the vessels, it
was objected that as Spain admitted those of all coun-
* 6 D. C. 165. --August 3d, 1786.
t These modifications were, permission to land and store American produc-
tions at New-Orleans; an advalorem duty to be paid to Spain on all ship-
ments thence by American citizens; permission to our merchants to re-
side there; a privilege to American vessels to return from its month to that
port, but not to carry any goods, contrary to the regulations of Spain, under
pain of confiscation.
t 4 S. J. 87.
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? 320
THE LIFE OF
tries, even in the carriage of her own productions, " the
United States bound themselves up again without a valuable
consideration. " As to productions, by the policy of Spain
we now enjoyed the free admission of them; nothing
therefore could be gained to us in this respect; and when
our " commerce is subjected to the most severe restric-
tions in almost every foreign port--fish being excluded by
France and Britain--the Mediterranean shut against us--
the West Indies occluded almost altogether--the wheat
and rice trade thus greatly injured--tobacco in France a
monopoly, in Spain contraband--one would suppose it
the duty of every wise American statesman to secure our
rights and interests at home--to give in our own ports to
our own citizens exclusive privileges; but of this advan-
tage the project would deprive them. " This proposed stip-
ulation was objected to on other grounds. It would be
contrary to the policy of the British navigation act," by
the wisdom of which, and of her other regulations in com-
merce, it was stated, Britain had attained to such a height
of power and grandeur on the seas as to be at the same
time the terror and the admiration of the world;" and yet of
the benefits of such a policy and making such discrimina-
tions this project would deprive us. As to manufactures,
it was urged that the right of prohibition or restriction on
exports or imports was given up. This was without a pre-
cedent, unless it was the "family compact," which proved
inconvenient and was annulled; independent nations hav-
ing always retained the right of regulating their own inte-
rior police, and thus of securing reciprocity; a right, the ex-
ercise of which would be subservient to various purposes--
the promotion of virtue and frugality, by the prohibition of
foreign luxuries--the encouragement of manufactures and
of the mechanical arts, by the prohibition of imports. The
treaties with France and other powers stipulated to each
the right of the most favoured nations. These nations
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? HAMILTON.
321
coming into the terms of Spain, in doing which they will
give up nothing, will be entitled to these benefits ; "the
evils of this project will be therefore almost universal, and of
course without remedy. " The surrender or forbearance of
the use of the Mississippi was objected to as inconsistent with
the compact with Virginia as to the western territory. And
it was also contended that its effect would be to dismem-
ber the government by a treaty of commerce, which could
not be done under a limited power to treat.
It would be difficult to select an instance in which the
United States had less motive to reserve or to exert the
power of discrimination or prohibition. As to vessels,
from the course of the trade, the cargoes and the superior
economy of American navigation, a successful competition
on the part of Spain was hopeless. How the policy of
the British navigation act could, under such circumstan-
ces, the United States being the carriers, have been ad-
vantageously adopted, it is not easy to suppose. As to
productions, the only object of Spanish traffic the impor-
tation of which this country has found it expedient to pro-
hibit, is that of slaves. As to manufactures, those of
Spain have never sought the American market.
But it was urged, if the commerce with Spain should be
placed on the footing of natives, that France and Sweden
would in virtue of their treaties be entitled to the same
terms, only by reciprocating to the United States the same
privilege. Was this an evil to be deprecated?
It cannot escape observation how entirely the principles
of this report are at variance with the instructions pro-
posed by Jefferson. Its details have been given chiefly to
show how great and rapid had been the change of opinion
as to the commercial policy of this country, two years
only having elapsed since the approval of those instruc-
tions by congress. That Virginia should have been the
first state since the peace to have proposed, and the first
41
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? 322
THE LIFE OF
to have objected to a system of free trade, is only an in-
stance of the error of applying rigidly general maxims of
policy to the conduct of nations, without regard to the
modifications circumstances may indicate. Nor will it fail
to be remarked as additional evidence of the timid coun-
sels by which that state had been governed, that though
in seventeen hundred and eighty-one, her legislature had
instructed Madison to authorize Jay to cede the right of
navigating the Mississippi to Spain absolutely and for
ever, she now declared that to consent to a suspension of
that right would be "to dismember" the government.
The importance Spain attached to that right, is shown
not only by her conduct during the war, but by the
promptitude witli which she opened a negotiation respect-
ing it after the peace. Claiming the exclusive right, and
denying the pretensions of this country, it was thought to
be an important object attained if a treaty could be made
which would imply that she accepted the use of the river
as the lessee of the United states for a specified time, and
thus virtually recognised the reversionary right to be in
them; thus terminating all questions of ownership.
Impelled by this strong motive, and little anticipating
the rapid growth of the western territory, Jay considering
that by this treaty the United States "gained much, and
sacrificed or gave up nothing," continued his negotiation
with the charge of Spain. He fortunately refused "to
admit the navigation of the Mississippi below their limits
on any terms, nor would he consent to any article acknow-
ledging their right in express terms, and stipulating to for-
bear the use of it for a given time," a difficulty that Jay
supposed could be overcome by implication, in which idea
Gardoqui concurred.
The vote prohibiting a surrender of the navigation of
the Mississippi. was a vote of nine states; that authorizing
this compromise was given by seven states. The consti-
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? II A MILTON.
323
tutionality of this vote was denied by the southern states:
and as the division was geographical, gave rise to much
excitement. On the part of the south, it was alleged that
New-England was solely actuated by a desire to check
the population of the west, and thus maintain her prepon-
derance in the union. The eastern states having opposed
the alienation or suspension of this right when the south-
ern states were its advocates, repelled the charge, and
urged that this temporary cession would fix the permanent
right in favour of this country, and prevent a coalition then
apprehended between Great Britain and Spain. A resolu-
tion passed directing Jay to report the state of the negotia-
tion; and as soon as the disposition of congress to consent
to a limited use of the navigation was disclosed, a wide
alarm was spread along the western frontier, and mutual
complaints of aggression by the borderers were heard.
These complaints were referred to Jay, who having stated
acts of hostility by both parties, and his conviction of the
right of the United States to navigate that river from its
source to the ocean, expressed the opinion that if inter-
rupted by her " it will be proper to declare war against
Spain. "
In this state of the question Madison proposed to refer
the consideration of the American grievances to a com-
mittee, but was unsuccessful. In the mean time the agents
of France had manifested great solicitude. It was their
wish* that the negotiation should be committed to Jeffer-
son and transferred to Madrid. With this view Madison,
* March 19, 1787--Madison to Jefferson:--" I discover, through several
channels, that it would be very grateful to the French politicians here to see
our negotiations with Spain shifted into your hands, and carried on under
the mediating auspices of their court. "
April 15, 1787--Madison to Edmund Randolph:--" We mean to propose
that Jefferson be sent under a special commission, to plead the cause of the
Mississippi at Madrid. "--Madison Papers, vol. 2, p. 625, 637.
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? 321
THE LIFE OF
on the eighteenth of April, proposed that a special com-
mission should be issued to Jefferson to proceed to Ma-
drid " to enter into commercial stipulations, and to make
such representations and urge such negotiations as will
be most likely to impress on Spain the friendly disposition
of the United States, and to induce her to make such con-
cessions touching the southern limits and their right to
navigate the Mississippi below them, as might most effec-
tually guard against a rupture of the subsisting harmony,
and promote the mutual interests of the two nations. "
This proposal was referred to Jay; he had previously
made a report showing the disposition of France to pro-
mote the views of Spain, and he now strongly dissuaded
this measure. He stated that it was more advantageous
and more honourable to negotiate at home; that this trans-
fer would offend the Spanish charge^ who would confirm
the suspicions which this measure might excite in his court
of an intention to amuse her, a suspicion to which the lan-
guage of this resolution, as it only empowered him to con-
fer, but not to conclude a treaty,* would be too apt to
give colour. Twelve months after, the excitement in the
western region having increased by the extended rumour
of a disposition to surrender this right, the delegates from
North Carolina proposed a declaration by congress that
the United States " have a clear, absolute, and unalienable"
claim to it. Jay, to whom it was referred, reported that a
declaration ought to be made that this rumour was not
* In this report, Jay observed in reference to the terms of this resolution:
"Perhaps this may only be an inadvertent inaccuracy in the motion; if not,
it gives much colour to the inferences above suggested. "--4 S. J. 342. At
the sitting of the Virginia convention, Monroe reproved the conduct of this
negotiation. Madison replied:--" From the best information, it never was the
sense of the people at large or the prevailing characters of the eastern states
to approve of the measure. "--2 Elliot's Debates, 262-3. But see Madison
Papers, v. 2, p. 637, 642.
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? HAMILTON.
325
founded in fact; but objected to an assertion that the right
was unalienable, lest it might exclude the possibility of
such modifications as, without impairing it, might be ad-
vantageous to the country and satisfactory to its citizens.
A new committee was then raised, of which Hamilton was
chairman. He introduced resolutions, which were adopt-
ed,* that the reported purpose to surrender this right, not
being founded in fact, the delegates be at liberty to com-
municate all such circumstances as may be necessary to
contradict it and remove misconceptions: "That the free
navigation of the river Mississippi is a clear and essential
right of the United States, and that the same ought to be
considered and supported as such. "
The same disposition which had been evinced upon this
question in seventeen hundred and eighty-two, continued
to be manifested by Vergennes. In answer to an inquiry
as to the extent of the guarantee in the treaty of alliance,
he intimated that "our limits were not fixed;" and the
French charge d'affaires was selected by Spain to commu-
nicate to congress the menace of confiscation, previously
mentioned, if their vessels continued to commerce on the
Mississippi.
The jealousies to which this negotiation gave rise, were
fanned by the partisans of France, and were among the
means of exciting hostility against some of the most promi-
nent friends of the federal constitution.
The relations with Great Britain still more exhibit the
disunion and impotence of this assemblage of states.
As soon as her restrictive proclamations were known, a
general shock was felt throughout the confederacy. Com-
merce was thrown out of its usual channels, and the mer-
chants, largely indebted for the extensive importations they
had made, looked round in despair for an outlet to the produc-
* September 16, 1788.
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