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II FEDERALISM AND REPUBLICANISM AS OPPONENTS

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Fortunately for the American nation the unionists, who wrought the Constitution, were substantially the same body of men as the Federalist party who organized under its provisions an efficient national government. The work of Washington, Hamilton, and their associates during the first two administrations was characterized by the same admirable qualities as the work of the makers of the Constitution, and it is of similar importance. A vigorous, positive, constructive national policy was outlined and carried substantially into effect—a policy that implied a faith in the powers of an efficient government to advance the national interest, and which justified the faith by actually meeting the critical problems of the time with a series of wise legislative measures. Hamilton's part in this constructive legislation was, of course, more important than it had been in the framing of the Constitution. During Washington's two administrations the United States was governed practically by his ideas, if not by his will; and the sound and unsound parts of his political creed can consequently be more definitely disentangled than they can be during the years when the Constitution was being wrought. The Constitution was in many respects a compromise, whereas the ensuing constructive legislation was a tolerably pure example of Hamiltonian Federalism. It will be instructive, consequently, to examine the trend of this Hamiltonian policy, and seek to discover wherein it started the country on the right path, and wherein it sought to commit the national government to a more dubious line of action.

Hamilton's great object as Secretary of the Treasury was that of making the organization of the national finances serve the cause of a constructive national policy. He wished to strengthen the Federal government by a striking exhibition of its serviceability, and by creating both a strong sentiment and an influential interest in its favor. To this end he committed the nation to a policy of scrupulous financial honesty, which has helped to make it ever since the mainstay of sound American finance. He secured the consent of Congress to the recognition at their face value of the debts incurred during the war both by the Confederacy and by the individual states. He created in the National Bank an efficient fiscal agent for the Treasury Department and a means whereby it could give stability to the banking system of the country. Finally he sought by means of his proposed fiscal and commercial policy to make the central government the effective promoter of a wholesome and many-sided national development. He detected the danger to political stability and self-control which would result from the continued growth of the United States as a merely agricultural and trading community, and he saw that it was necessary to cultivate manufacturing industries and technical knowledge and training, because diversified activity and a well-rounded social and economic life brings with it national balance and security.

Underlying the several aspects of Hamilton's policy can be discerned a definite theory of governmental functions. The central government is to be used, not merely to maintain the Constitution, but to promote the national interest and to consolidate the national organization. Hamilton saw clearly that the American Union was far from being achieved when the Constitution was accepted by the states and the machinery of the Federal government set in motion. A good start had been made, but the way in which to keep what had been gained was to seek for more. Unionism must be converted into a positive policy which labored to strengthen the national interest and organization, discredit possible or actual disunionist ideas and forces, and increase the national spirit. All this implied an active interference with the natural course of American economic and political business and its regulation and guidance in the national direction. It implied a conscious and indefatigable attempt on the part of the national leaders to promote the national welfare. It implied the predominance in American political life of the men who had the energy and the insight to discriminate between those ideas and tendencies which promoted the national welfare, and those ideas and tendencies whereby it was imperiled. It implied, in fine, the perpetuation of the same kind of leadership which had guided the country safely through the dangers of the critical period, and the perpetuation of the purposes which inspired that leadership.

So far I, at least, have no fault to find with implications of Hamilton's Federalism, but unfortunately his policy was in certain other respects tainted with a more doubtful tendency. On the persistent vitality of Hamilton's national principle depends the safety of the American republic and the fertility of the American idea, but he did not seek a sufficiently broad, popular basis for the realization of those ideas. He was betrayed by his fears and by his lack of faith. Believing as he did, and far more than he had any right to believe, that he was still fighting for the cause of social stability and political order against the seven devils of anarchy and dissolution, he thought it necessary to bestow upon the central government the support of a strong special interest. During the Constitutional Convention he had failed to secure the adoption of certain institutions which in his opinion would have established as the guardian of the Constitution an aristocracy of ability; and he now insisted all the more upon the plan of attaching to the Federal government the support of well-to-do people. As we have seen, the Constitution had been framed and its adoption secured chiefly by citizens of education and means; and the way had been prepared, consequently, for the attempt of Hamilton to rally this class as a class more than ever to the support of the Federal government. They were the people who had most to lose by political instability or inefficiency, and they must be brought to lend their influence to the perpetuation of a centralized political authority. Hence he believed a considerable national debt to be a good thing for the Federal national interest, and he insisted strenuously upon the assumption by the Federal government of the state war-debts. He conceived the Constitution and the Union as a valley of peace and plenty which had to be fortified against the marauders by the heavy ramparts of borrowed money and the big guns of a propertied interest.

In so doing Hamilton believed that he was (to vary the metaphor) loading the ship of state with a necessary ballast, whereas in truth he was disturbing its balance and preventing it from sailing free. He succeeded in imbuing both men of property and the mass of the "plain people" with the idea that the well-to-do were the peculiar beneficiaries of the American Federal organization, the result being that the rising democracy came more than ever to distrust the national government. Instead of seeking to base the perpetuation of the Union upon the interested motives of a minority of well-to-do citizens, he would have been far wiser to have frankly intrusted its welfare to the good-will of the whole people. But unfortunately he was prevented from so doing by the limitation both of his sympathies and ideas. He was possessed by the English conception of a national state, based on the domination of special privileged orders and interests; and he failed to understand that the permanent support of the American national organization could not be found in anything less than the whole American democracy. The American Union was a novel and a promising political creation, not because it was a democracy, for there had been plenty of previous democracies, and not because it was a nation, for there had been plenty of previous nations, but precisely and entirely because it was a democratic nation—a nation committed by its institutions and aspirations to realize the democratic idea.

Much, consequently, as we may value Hamilton's work and for the most part his ideas, it must be admitted that the popular disfavor with which he came to be regarded had its measure of justice. This disfavor was indeed partly the result of his resolute adherence to a wise but an unpopular foreign policy; and the way in which this policy was carried through by Washington, Hamilton, and their followers, in spite of the general dislike which it inspired, deserves the warmest praise. But Hamilton's unpopularity was fundamentally due to deeper causes. He and his fellow-Federalists did not understand their fellow-countrymen and sympathize with their purposes, and naturally they were repaid with misunderstanding and suspicion. He ceased, after Washington's retirement, to be a national leader, and became the leader of a faction; and before his death his party ceased to be the national party, and came to represent only a section and a class. In this way it irretrievably lost public support, and not even the miserable failure of Jefferson's policy of embargo could persuade the American people to restore the Federalists to power. As a party organization they disappeared entirely after the second English war, and unfortunately much that was good in Hamilton's political point of view disappeared with the bad. But by its failure one good result was finally established. For better or worse the United States had become a democracy as well as a nation, and its national task was not that of escaping the dangers of democracy, but of realizing its responsibilities and opportunities.

It did not take Hamilton's opponents long to discover that his ideas and plans were in some respects inimical to democracy; and the consequence was that Hamilton was soon confronted by one of the most implacable and unscrupulous oppositions which ever abused a faithful and useful public servant. This opposition was led by Jefferson, and while it most unfortunately lacked Hamilton's statesmanship and sound constructive ideas, it possessed the one saving quality which Hamilton himself lacked: Jefferson was filled with a sincere, indiscriminate, and unlimited faith in the American people. He was according to his own lights a radical and unqualified democrat, and as a democrat he fought most bitterly what he considered to be the aristocratic or even monarchic tendency of Hamilton's policy. Much of the denunciation which he and his followers lavished upon Hamilton was unjust, and much of the fight which they put up against his measures was contrary to the public welfare. They absolutely failed to give him credit for the patriotism of his intentions or for the merit of his achievements, and their unscrupulous and unfair tactics established a baleful tradition in American party warfare. But Jefferson was wholly right in believing that his country was nothing, if not a democracy, and that any tendency to impair the integrity of the democratic idea could be productive only of disaster.

Unfortunately Jefferson's conception of democracy was meager, narrow, and self-contradictory; and just because his ideas prevailed, while Hamilton toward the end of his life lost his influence, the consequences of Jefferson's imperfect conception of democracy have been much more serious than the consequences of Hamilton's inadequate conception of American nationality. In Jefferson's mind democracy was tantamount to extreme individualism. He conceived a democratic society to be composed of a collection of individuals, fundamentally alike in their abilities and deserts; and in organizing such a society, politically, the prime object was to provide for the greatest satisfaction of its individual members. The good things of life which had formerly been monopolized by the privileged few, were now to be distributed among all the people. It was unnecessary, moreover, to make any very artful arrangements, in order to effect an equitable distribution. Such distribution would take care of itself, provided nobody enjoyed any special privileges and everybody had equal opportunities. Once these conditions were secured, the motto of a democratic government should simply be "Hands Off." There should be as little government as possible, because persistent governmental interference implied distrust in popular efficiency and good-will; and what government there was, should be so far as possible confided to local authorities. The vitality of a democracy resided in its extremities, and it would be diminished rather than increased by specialized or centralized guidance. Its individual members needed merely to be protected against privileges and to be let alone, whereafter the native goodness of human nature would accomplish the perfect consummation.

Thus Jefferson sought an essentially equalitarian and even socialistic result by means of an essentially individualistic machinery. His theory implied a complete harmony both in logic and in effect between the idea of liberty and the idea of equality; and just in so far as there is any antagonism between those ideas, his whole political system becomes unsound and impracticable. Neither is there any doubt as to which of these ideas Jefferson and his followers really attached the more importance. Their mouths have always been full of the praise of liberty; and unquestionably they have really believed it to be the corner-stone of their political and social structure. None the less, however, is it true that in so far as any antagonism has developed in American life between liberty and equality, the Jeffersonian Democrats have been found on the side of equality. Representing as they did the democratic principle, it is perfectly natural and desirable that they should fight the battle of equality in a democratic state; and their error has been, not their devotion to equality, but their inability to discern wherein any antagonism existed between liberty and equality, and the extent to which they were sacrificing a desirable liberty to an undesirable equality.

On this, as on so many other points, Hamilton's political philosophy was much more clearly thought out than that of Jefferson. He has been accused by his opponents of being the enemy of liberty; whereas in point of fact, he wished, like the Englishman he was, to protect and encourage liberty, just as far as such encouragement was compatible with good order, because he realized that genuine liberty would inevitably issue in fruitful social and economic inequalities. But he also realized that genuine liberty was not merely a matter of a constitutional declaration of rights. It could be protected only by an energetic and clear-sighted central government, and it could be fertilized only by the efficient national organization of American activities. For national organization demands in relation to individuals a certain amount of selection, and a certain classification of these individuals according to their abilities and deserts. It is just this kind or effect of liberty which Jefferson and his followers have always disliked and discouraged. They have been loud in their praise of legally constituted rights; but they have shown an instinctive and an implacable distrust of intellectual and moral independence, and have always sought to suppress it in favor of intellectual and moral conformity. They have, that is, stood for the sacrifice of liberty—in so far as liberty meant positive intellectual and moral achievement—to a certain kind of equality.

I do not mean to imply by the preceding statement that either Jefferson or his followers were the conscious enemies of moral and intellectual achievement. On the contrary, they appeared to themselves in their amiable credulity to be the friends and guardians of everything admirable in human life; but their good intentions did not prevent them from actively or passively opposing positive intellectual and moral achievement, directed either towards social or individual ends. The effect of their whole state of mind was negative and fatalistic. They approved in general of everything approvable; but the things of which they actively approved were the things which everybody in general was doing. Their point of view implied that society and individuals could be made better without actually planning the improvement or building up an organization for the purpose; and this assertion brings me to the deepest-lying difference between Hamilton and Jefferson. Jefferson's policy was at bottom the old fatal policy of drift, whose distorted body was concealed by fair-seeming clothes, and whose ugly face was covered by a mask of good intentions. Hamilton's policy was one of energetic and intelligent assertion of the national good. He knew that the only method whereby the good could prevail either in individual or social life was by persistently willing that it should prevail and by the adoption of intelligent means to that end. His vision of the national good was limited; but he was absolutely right about the way in which it was to be achieved.

Hamilton was not afraid to exhibit in his own life moral and intellectual independence. He was not afraid to incur unpopularity for pursuing what he believed to be a wise public policy, and the general disapprobation under which he suffered during the last years of his life, while it was chiefly due, as we have seen, to his distrust of the American democracy, was also partly due to his high conception of the duties of leadership. Jefferson, on the other hand, afforded an equally impressive example of the statesman who assiduously and intentionally courted popular favor. It was, of course, easy for him to court popular favor, because he understood the American people extremely well and really sympathized with them; but he never used the influence which he thereby obtained for the realization of any positive or formative purpose, which might be unpopular. His policy, while in office, was one of fine phrases and temporary expedients, some of which necessarily incurred odium, but none of which were pursued by him or his followers with any persistence. Whatever the people demanded, their leaders should perform, including, if necessary, a declaration of war against England. It was to be a government of and by the people, not a government for the people by popular but responsible leaders; and the leaders to whom the people delegated their authority had in theory no right to pursue an unpopular policy. The people were to guide their leaders, not their leaders the people; and any intellectual or moral independence and initiative on the part of the leaders in a democracy was to be condemned as undemocratic. The representatives of a Sovereign people were in the same position as the courtiers of an absolute monarch. It was their business to flatter and obey.

The Promise of American Life

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