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they had suffered, and His Majesty's Commissioners were hopeful at least
of obtaining a proviso similar to the one relating to the collection of
debts. John Adams, however, expressed the prevailing American idea
when he said that "paying debts and compensating Tories" were two very
different things, and Jay asserted that there were certain of these
refugees whom Americans never would forgive.

But this was the one thing needed to complete the negotiations for
peace, and the British arguments on the injustice and irregularity of
the treatment accorded to the Loyalists were so strong that the American
Commissioners were finally driven to the excuse that the Government of
the Confederation had no power over the individual States by whom
the necessary action must be taken. Finally, in a spirit of mutual
concession at the end of the negotiations, the Americans agreed that
Congress should "recommend to the legislatures of the respective states
to provide for the restitution" of properties which had been confiscated
"belonging to real British subjects," and "that persons of any other
description" might return to the United States for a period of
twelve months and be "unmolested in their endeavours to obtain the
restitution."

With this show of yielding on the part of the American Commissioners it
was possible to conclude the terms of peace, and the preliminary treaty
was drawn accordingly and agreed to on November 30, 1782. Franklin had
been of such great service during all the negotiations, smoothing
down ruffed feelings by his suavity and tact and presenting difficult
subjects in a way that made action possible, that to him was accorded
the unpleasant task of communicating what had been accomplished to
Vergennes, the French Minister, and of requesting at the same time "a
fresh loan of twenty million francs." Franklin, of course, presented
his case with much "delicacy and kindliness of manner" and with a fair
degree of success. "Vergennes thought that the signing of the articles
was premature, but he made no inconvenient remonstrances, ill procured
six millions of the twenty."* On September 3, 1783, the definite
treaty of peace was signed in due time it was ratified by the British
Parliament as well as by the American Congress. The new state, duly
accredited, thus took its place in the family of nations; but it was
a very humble place that was first assigned to the United States of
America.


* Channing, "History of the United States," vol. III, p.
368.



CHAPTER II. TRADE AND INDUSTRY

Though the word revolution implies a violent break with the past, there
was nothing in the Revolution that transformed the essential character
or the characteristics of the American people. The Revolution severed
the ties which bound the colonies to Great Britain; it created some new
activities; some soldiers were diverted from their former trades and
occupation; but, as the proportion of the population engaged in the war
was relatively small and the area of country affected for any length
of time was comparatively slight, it is safe to say that in general the
mass of the people remained about the same after the war as before. The
professional man was found in his same calling; the artisan returned
to his tools, if he had ever laid them down; the shopkeeper resumed
his business, if it had been interrupted; the merchant went back to
his trading; and the farmer before the Revolution remained a farmer
afterward.

The country as a whole was in relatively good condition and the people
were reasonably prosperous; at least, there was no general distress or
poverty. Suffering had existed in the regions ravaged by war, but no
section had suffered unduly or had had to bear the burden of war during
the entire period of fighting. American products had been in demand,
especially in the West India Islands, and an illicit trade with the
enemy had sprung up, so that even during the war shippers were able to
dispose of their commodities at good prices. The Americans are commonly
said to have been an agricultural people, but it would be more correct
to say that the great majority of the people were dependent upon
extractive industries, which would include lumbering, fishing, and even
the fur trade, as well as the ordinary agricultural pursuits. Save for
a few industries, of which shipbuilding was one of the most important,
there was relatively little manufacturing apart from the household
crafts. These household industries had increased during the war, but as
it was with the individual so it was with the whole country; the general
course of industrial activity was much the same as it had been before
the war.

A fundamental fact is to be observed in the economy of the young nation:
the people were raising far more tobacco and grain and were extracting
far more of other products than they could possibly use themselves; for
the surplus they must find markets. They had; as well, to rely upon the
outside world for a great part of their manufactured goods, especially
for those of the higher grade. In other words, from the economic point
of view, the United States remained in the former colonial stage of
industrial dependence, which was aggravated rather than alleviated by
the separation from Great Britain. During the colonial period, Americans
had carried on a large amount of this external trade by means of their
own vessels. The British Navigation Acts required the transportation
of goods in British vessels, manned by crews of British sailors, and
specified certain commodities which could be shipped to Great Britain
only. They also required that much of the European trade should pass by
way of England. But colonial vessels and colonial sailors came under
the designation of "British," and no small part of the prosperity of
New England, and of the middle colonies as well, had been due to the
carrying trade. It would seem therefore as if a primary need of the
American people immediately after the Revolution was to get access to
their old markets and to carry the goods as much as possible in their
own vessels.

In some directions they were successful. One of the products in greatest
demand was fish. The fishing industry had been almost annihilated by the
war, but with the establishment of peace the New England fisheries began
to recover. They were in competition with the fishermen of France and
England who were aided by large bounties, yet the superior geographical
advantages which the American fishermen possessed enabled them to
maintain and expand their business, and the rehabilitation of the
fishing fleet was an important feature of their programme. In other
directions they were not so successful. The British still believed in
their colonial system and applied its principles without regard to the
interests of the United States. Such American products as they wanted
they allowed to be carried to British markets, but in British vessels.
Certain commodities, the production of which they wished to encourage
within their own dominions, they added to the prohibited list. Americans
cried out indignantly that this was an attempt on the part of the
British to punish their former colonies for their temerity in revolting.
The British Government may well have derived some satisfaction from the
fact that certain restrictions bore heavily upon New England, as John
Adams complained; but it would seem to be much nearer the truth to
say that in a truly characteristic way the British were phlegmatically
attending to their own interests and calmly ignoring the United States,
and that there was little malice in their policy.

European nations had regarded American trade as a profitable field
of enterprise and as probably responsible for much of Great Britain's
prosperity. It was therefore a relatively easy matter for the United
States to enter into commercial treaties with foreign countries. These
treaties, however, were not fruitful of any great result; for, "with
unimportant exceptions, they left still in force the high import duties
and prohibitions that marked the European tariffs of the time, as well
as many features of the old colonial system. They were designed to
legalize commerce rather than to encourage it."* Still, for a year or
more after the war the demand for American products was great enough
to satisfy almost everybody. But in 1784 France and Spain closed their
colonial ports and thus excluded the shipping of the United States. This
proved to be so disastrous for their colonies that the French Government
soon was forced to relax its restrictions. The British also made some
concessions, and where their orders were not modified they were evaded.
And so, in the course of a few years, the West India trade recovered.


* Clive Day, "Encyclopedia of American Government," Vol. I,
p. 340.


More astonishing to the men of that time than it is to us was the fact
that American foreign trade fell under British commercial control again.
Whether it was that British merchants were accustomed to American ways
of doing things and knew American business conditions; whether other
countries found the commerce not as profitable as they had expected, as
certainly was the case with France; whether "American merchants and
sea captains found themselves under disadvantages due to the absence
of treaty protection which they had enjoyed as English subjects";* or
whether it was the necessity of trading on British capital - whatever the
cause may have been - within a comparatively few years a large part
of American trade was in British hands as it had been before the
Revolution. American trade with Europe was carried on through English
merchants very much as the Navigation Acts had prescribed.


* C. R. Fish, "American Diplomacy," pp. 56-57.


From the very first settlement of the American continent the colonists
had exhibited one of the earliest and most lasting characteristics
of the American people adaptability. The Americans now proceeded to
manifest that trait anew, not only by adjusting themselves to renewed
commercial dependence upon Great Britain, but by seeking new avenues of
trade. A striking illustration of this is to be found in the development
of trade with the Far East. Captain Cook's voyage around the world
(1768-1771), an account of which was first published in London in 1773,
attracted a great deal of attention in America; an edition of the New
Voyage was issued in New York in 1774. No sooner was the Revolution over
than there began that romantic trade with China and the northwest coast
of America, which made the fortunes of some families of Salem and Boston
and Philadelphia. This commerce added to the prosperity of the country,
but above all it stimulated the imagination of Americans. In the same
way another outlet was found in trade with Russia by way of the Baltic.

The foreign trade of the United States after the Revolution thus passed
through certain well-marked phases. First there was a short period of
prosperity, owing to an unusual demand for American products; this
was followed by a longer period of depression; and then came a gradual
recovery through acceptance of the new conditions and adjustment to
them.

A similar cycle may be traced in the domestic or internal trade. In
early days intercolonial commerce had been carried on mostly by water,
and when war interfered commerce almost ceased for want of roads. The
loss of ocean highways, however, stimulated road building and led to
what might be regarded as the first "good-roads movement" of the new
nation, except that to our eyes it would be a misuse of the word to call
any of those roads good. But anything which would improve the means of
transportation took on a patriotic tinge, and the building of roads and
the cutting of canals were agitated until turnpike and canal companies
became a favorite form of investment; and in a few years the interstate
land trade had grown to considerable importance. But in the meantime,
water transportation was the main reliance, and with the end of the war
the coastwise trade had been promptly resumed. For a time it prospered;
but the States, affected by the general economic conditions and by
jealousy, tried to interfere with and divert the trade of others to
their own advantage. This was done by imposing fees and charges and
duties, not merely upon goods and vessels from abroad but upon those of
their fellow States. James Madison described the situation in the words
so often quoted: "Some of the States,... having no convenient ports
for foreign commerce, were subject to be taxed by their neighbors, thro
whose ports, their commerce was carryed on. New Jersey, placed between
Phila. & N. York, was likened to a Cask tapped at both ends: and N.
Carolina between Virga. & S. Carolina to a patient bleeding at both
Arms."*


* "Records of the Federal Convention," vol. III, p. 542.


The business depression which very naturally followed the short revival
of trade was so serious in its financial consequences that it has even
been referred to as the "Panic of 1785." The United States afforded
a good market for imported articles in 1788 and 1784, all the better
because of the supply of gold and silver which had been sent into the
country by England and France to maintain their armies and fleets and
which had remained in the United States. But this influx of imported
goods was one of the chief factors in causing the depression of 1785, as
it brought ruin to many of those domestic industries which had sprung
up in the days of nonintercourse or which had been stimulated by the
artificial protection of the war.

To make matters worse, the currency was in a confused condition. "In
1784 the entire coin of the land, except coppers, was the product of
foreign mints. English guineas, crowns, shillings and pence were still
paid over the counters of shops and taverns, and with them were mingled
many French and Spanish and some German coins.... The value of the gold
pieces expressed in dollars was pretty much the same the country over.
But the dollar and the silver pieces regarded as fractions of a dollar
had no less than five different values."* The importation of foreign
goods was fast draining the hard money out of the country. In an effort
to relieve the situation but with the result of making it much worse,
several of the States began to issue paper money; and this was in
addition to the enormous quantities of paper which had been printed
during the Revolution and which was now worth but a small fraction of
its face value.


* McMaster, "History of the People of the United States",
vol. I, pp. 190-191.


The expanding currency and consequent depreciation in the value of money
had immediately resulted in a corresponding rise of prices, which for a
while the States attempted to control. But in 1778 Congress threw up its
hands in despair and voted that "all limitations of prices of gold and
silver be taken off," although the States for some time longer continued
to endeavor to regulate prices by legislation.* The fluctuating value
of the currency increased the opportunities for speculation which
war conditions invariably offer, and "immense fortunes were suddenly
accumulated." A new financial group rose into prominence composed
largely of those who were not accustomed to the use of money and who
were consequently inclined to spend it recklessly and extravagantly.


* W. E. H. Lecky, "The American Revolution," New York, 1898,
pp. 288-294.


Many contemporaries comment upon these things, of whom Brissot de
Warville may be taken as an example, although he did not visit the
United States until 1788:

"The inhabitants... prefer the splendor of wealth and the show of
enjoyment to the simplicity of manners and the pure pleasures which
result from it. If there is a town on the American continent where the
English luxury displays its follies, it is New York. You will find here
the English fashions: in the dress of the women you will see the most
brilliant silks, gauzes, hats, and borrowed hair; equipages are rare,
but they are elegant; the men have more simplicity in their dress; they
disdain gewgaws, but they take their revenge in the luxury of the table;
luxury forms already a class of men very dangerous to society; I mean
bachelors; the expense of women causes matrimony to be dreaded by men.
Tea forms, as in England, the basis of parties of pleasure; many things
are dearer here than in France; a hairdresser asks twenty shilling a
month; washing costs four shillings a dozen."*


*Quoted by Henry Tuckerman, "America and her Commentators,"
1886.


An American writer of a later date, looking back upon his earlier years,
was impressed by this same extravagance, and his testimony may well be
used to strengthen the impression which it is the purpose of the present
narrative to convey:

"The French and British armies circulated immense sums of money in gold
and silver coin, which had the effect of driving out of circulation
the wretched paper currency which had till then prevailed. Immense
quantities of British and French goods were soon imported: our people
imbibed a taste for foreign fashions and luxury; and in the course of
two or three years, from the close of the war, such an entire change had
taken place in the habits and manners of our inhabitants, that it almost
appeared as if we had suddenly become a different nation. The staid
and sober habits of our ancestors, with their plain home-manufactured
clothing, were suddenly laid aside, and European goods of fine quality
adopted in their stead. Fine rues, powdered heads, silks and scarlets,
decorated the men; while the most costly silks, satins, chintzes,
calicoes, muslins, etc., etc., decorated our females. Nor was their diet
less expensive; for superb plate, foreign spirits, wines, etc., etc.,
sparkled on the sideboards of many farmers. The natural result of this
change of the habits and customs of the people - this aping of European
manners and morals, was to suddenly drain our country of its circulating
specie; and as a necessary consequence, the people ran in debt, times
became difficult, and money hard to raise."*


*Samuel Kercheval, "History of the Valley of Virginia," 1833,
pp. 199-200.


The situation was serious, and yet it was not as dangerous or even as
critical as it has generally been represented, because the fundamental
bases of American prosperity were untouched. The way by which Americans
could meet the emergency and recover from the hard times was fairly
evident first to economize, and then to find new outlets for their
industrial energies. But the process of adjustment was slow and painful.
There were not a few persons in the United States who were even disposed
to regret that Americans were not safely under British protection
and prospering with Great Britain, instead of suffering in political
isolation.



CHAPTER III. THE CONFEDERATION

When peace came in 1783 there were in the United States approximately
three million people, who were spread over the whole Atlantic coast
from Maine to Georgia and back into the interior as far as the Alleghany
Mountains; and a relatively small number of settlers had crossed the
mountain barrier. About twenty per cent of the population, or some
six hundred thousand, were negro slaves. There was also a large alien
element of foreign birth or descent, poor when they arrived in America,
and, although they had been able to raise themselves to a position of
comparative comfort, life among them was still crude and rough. Many
of the people were poorly educated and lacking in cultivation and
refinement and in a knowledge of the usages of good society. Not only
were they looked down upon by other nations of the world; there was
within the United States itself a relatively small upper class inclined
to regard the mass of the people as of an inferior order.

Thus, while forces were at work favorable to democracy, the gentry
remained in control of affairs after the Revolution, although their
numbers were reduced by the emigration of the Loyalists and their power
was lessened. The explanation of this aristocratic control may be found
in the fact that the generation of the Revolution had been accustomed
to monarchy and to an upper class and that the people were wont to
take their ideas and to accept suggestions from their betters without
question or murmur. This deferential attitude is attested by the
indifference of citizens to the right of voting. In our own day, before
the great extension of woman suffrage, the number of persons voting
approximated twenty per cent of the population, but after the Revolution
less than five per cent of the white population voted. There were many
limitations upon the exercise of the suffrage, but the small number of
voters was only partially due to these restrictions, for in later years,
without any radical change in suffrage qualifications, the proportion of
citizens who voted steadily increased.

The fact is that many of the people did not care to vote. Why should
they, when they were only registering the will or the wishes of their
superiors? But among the relatively small number who constituted the
governing class there was a high standard of intelligence. Popular
magazines were unheard of and newspapers were infrequent, so that men
depended largely upon correspondence and personal intercourse for the
interchange of ideas. There was time, however, for careful reading of
the few available books; there was time for thought, for writing, for
discussion, and for social intercourse. It hardly seems too much to say,
therefore, that there was seldom, if ever, a people-certainly never
a people scattered over so wide a territory-who knew so much about
government as did this controlling element of the people of the United
States.

The practical character, as well as the political genius, of the
Americans was never shown to better advantage than at the outbreak of
the Revolution, when the quarrel with the mother country was manifesting
itself in the conflict between the Governors, and other appointed
agents of the Crown, and the popularly elected houses of the colonial
legislatures. When the Crown resorted to dissolving the legislatures,
the revolting colonists kept up and observed the forms of government.
When the legislature was prevented from meeting, the members would come
together and call themselves a congress or a convention, and, instead of
adopting laws or orders, would issue what were really nothing more
than recommendations, but which they expected would be obeyed by their
supporters. To enforce these recommendations extra-legal committees,
generally backed by public opinion and sometimes concretely supported by
an organized "mob," would meet in towns and counties and would be often
effectively centralized where the opponents of the British policy were
in control.

In several of the colonies the want of orderly government became so
serious that, in 1775, the Continental Congress advised them to form
temporary governments until the trouble with Great Britain had been
settled. When independence was declared Congress recommended to all the
States that they should adopt governments of their own. In accordance
with that recommendation, in the course of a very few years each
State established an independent government and adopted a written
constitution. It was a time when men believed in the social contract
or the "compact theory of the state," that states originated through
agreement, as the case might be, between king and nobles, between king
and people, or among the people themselves. In support of this doctrine
no less an authority than the Bible was often quoted, such a passage for
example as II Samuel v, 3: "So all the elders of Israel came to the King
to Hebron; and King David made a covenant with them in Hebron before
the Lord; and they anointed David King over Israel." As a philosophical
speculation to explain why people were governed or consented to be
governed, this theory went back at least to the Greeks, and doubtless
much earlier; and, though of some significance in medieval thought, it
became of greater importance in British political philosophy, especially
through the works of Thomas Hobbes and John Locke. A very practical
application of the compact theory was made in the English Revolution of
1688, when in order to avoid the embarrassment of deposing the king, the
convention of the Parliament adopted the resolution: "That King James
the Second, having endeavored to subvert the Constitution of the
Kingdom, by breaking the original Contract between King and People, and


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Online LibraryMax FarrandThe Fathers of the Constitution; a chronicle of the establishment of the Union → online text (page 2 of 13)