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HAMILTON, ALEXANDER
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final assault on the British works. In 1780 he married Elizabeth, daughter of General Philip Schuyler, and thus became allied with one of the most distinguished families in New York.

Meanwhile, he had begun the political efforts upon which his fame principally rests. In letters of 1779–1780[1] he correctly diagnoses the ills of the Confederation, and suggests with admirable prescience the necessity of centralization in its governmental powers; he was, indeed, one of the first, if not to conceive, at least to suggest adequate checks on the anarchic tendencies of the time. After a year’s service in Congress in 1782–1783, in which he experienced the futility of endeavouring to attain through that decrepit body the ends he sought, he settled down to legal practice in New York.[2] The call for the Annapolis Convention (1786) was Hamilton’s opportunity. A delegate from New York, he supported Madison in inducing the Convention to exceed its delegated powers and summon the Federal Convention of 1787 at Philadelphia (himself drafting the call); he secured a place on the New York delegation; and, when his anti-Federal colleagues withdrew from the Convention, he signed the Constitution for his state. So long as his colleagues were present his own vote was useless, and he absented himself for some time from the debates after making one remarkable speech (June 18th, 1787). In this he held up the British government as the best model in the world.[3] Though fully conscious that monarchy in America was impossible, he wished to obtain the next best solution in an aristocratic, strongly centralized, coercive, but representative union, with devices to give weight to the influence of class and property.[4] His plan had no chance of success; but though unable to obtain what he wished, he used his great talents to secure the adoption of the Constitution.

To this struggle was due the greatest of his writings, and the greatest individual contribution to the adoption of the new government, The Federalist, which remains a classic commentary on American constitutional law and the principles of government, and of which Guizot said that “in the application of elementary principles of government to practical administration” it was the greatest work known to him. Its inception, and much more than half its contents were Hamilton’s (the rest Madison’s and Jay’s).[5] Sheer will and reasoning could hardly be more brilliantly and effectively exhibited than they were by Hamilton in the New York convention of 1788, whose vote he won, against the greatest odds, for the ratification of the Constitution. It was the judgment of Chancellor James Kent, the justice of which can hardly be disputed, that “all the documentary proof and the current observation of the time lead us to the conclusion that he surpassed all his contemporaries in his exertions to create, recommend, adopt and defend the Constitution of the United States.”

When the new government was inaugurated, Hamilton became secretary of the treasury in Washington’s cabinet.[6] Congress immediately referred to him a press of queries and problems, and there came from his pen a succession of papers that have left the strongest imprint on the administrative organization of the national government—two reports on public credit, upholding an ideal of national honour higher than the prevalent popular principles; a report on manufactures, advocating their encouragement (e.g. by bounties paid from surplus revenues amassed by tariff duties)—a famous report that has served ever since as a storehouse of arguments for a national protective policy;[7] a report favouring the establishment of a national bank, the argument being based on the doctrine of “implied powers” in the Constitution, and on the application that Congress may do anything that can be made, through the medium of money, to subserve the “general welfare” of the United States—doctrines that, through judicial interpretation, have revolutionized the Constitution; and, finally, a vast mass of detailed work by which order and efficiency were given to the national finances. In 1793 he put to confusion his opponents who had brought about a congressional investigation of his official accounts. The success of his financial measures was immediate and remarkable. They did not, as is often but loosely said, create economic prosperity; but they did prop it, in an all-important field, with order, hope and confidence. His ultimate purpose was always the strengthening of the union; but before particularizing his political theories, and the political import of his financial measures, the remaining events of his life may be traced.

His activity in the cabinet was by no means confined to the finances. He regarded himself, apparently, as premier, and sometimes overstepped the limits of his office in interfering with other departments. The heterogeneous character of the duties placed upon his department by Congress seemed in fact to reflect the English idea of its primacy. Hamilton’s influence was in fact predominant with Washington (so far as any man could have predominant influence). Thus it happens that in foreign affairs, whatever credit properly belongs to the Federalists as a party (see also the article Federalist Party) for the adoption of that principle of neutrality which became the traditional policy of the United States must be regarded as largely due to Hamilton. But allowance must be made for the mere advantage of initiative which belonged to any party that organized the government—the differences between Hamilton and Jefferson, in this question of neutrality, being almost purely factitious.[8] On domestic policy their differences were vital,

  1. Especially the letter of September 1780 to James Duane, Works, i. 213 (1: 203); also the “Continentalist” papers of 1781.
  2. His most famous case at this time (Rutgers v. Waddington) was one that well illustrated his moral courage. Under a “Trespass Law” of New York, Elizabeth Rutgers, a widow, brought suit against one Joshua Waddington, a Loyalist, who during the war of American Independence, while New York was occupied by the British, had made use of some of her property. In face of popular clamour, Hamilton, who advocated a conciliatory treatment of the Loyalists, represented Waddington, who won the case, decided in 1784.
  3. As Mr Oliver points out (Alexander Hamilton, p. 156), Hamilton’s idea of the British constitution was not a correct picture of the British constitution in 1787, and still less of that of the 20th century. “What he had in mind was the British constitution as George III. had tried to make it.” Hamilton’s ideal was an elective monarchy, and his guiding principle a proper balance of authority.
  4. Briefly, he proposed a governor and two chambers—an Assembly elected by the people for three years, and a Senate—the governor and senate holding office for life or during good behaviour, and chosen, through electors, by voters qualified by property; the governor to have an unqualified veto on federal legislation; state governors to have a similar veto on state legislation, and to be appointed by the federal government; the federal government to control all militia. See Works, i. 347 (1: 331); and cf. his correspondence, which is scanty, passim in later years, notably x. 446, 431, 329 (8: 606, 596, 517), and references below.
  5. Nearly all the papers in The Federalist first appeared (between October 1787 and April 1788) in New York journals, over the signature “Publius.” Jay wrote only five. The authorship of twelve of them is uncertain, and has been the subject of much controversy between partisans of Hamilton and Madison. Concerning The Federalist Chancellor James Kent (Commentaries, i. 241) said: “There is no work on the subject of the Constitution, and on republican and federal government generally, that deserves to be more thoroughly studied. I know not indeed of any work on the principles of free government that is to be compared, in instruction and intrinsic value, to this small and unpretending volume.... It is equally admirable in the depth of its wisdom, the comprehensiveness of its views, the sagacity of its reflections, and the fearlessness, patriotism, candour, simplicity, and elegance, with which its truths are uttered and recommended.”
  6. The position was offered first to Robert Morris, who declined it, expressing the opinion that Hamilton was the man best fitted to meet its problems.
  7. Hamilton’s Report on Manufactures (1791) by itself entitles him to the place of an epoch-maker in economics. It was the first great revolt from Adam Smith, on whose Wealth of Nations (1776) he is said to have already written a commentary which is lost. In his criticism on Adam Smith, and his arguments for a system of moderate protective duties associated with the deliberate policy of promoting national interests, his work was the inspiration of Friedrich List, and so the foundation of the economic system of Germany in a later day, and again, still later, of the policy of Tariff Reform and Colonial Preference in England, as advocated by Mr Chamberlain and his supporters. See the detailed account given in the article Protection.
  8. That is, while Jefferson hated British aristocracy and sympathized with French democracy, Hamilton hated French democracy and sympathized with British aristocracy and order; but neither wanted war; and indeed Jefferson, throughout life, was the more peaceful of the two. Neutrality was in the line of commonplace American thinking of that time, as may be seen in the writings of all the leading men of the day. The cry of “British Hamilton” had no good excuse whatever.