The Life of Albert Gallatin

My dear friend, you judge yourself with too much severity. For want of greater offences you seek for specks, and your extreme susceptibility magnifies them into unpardonable errors. I tell you the truth, Badollet, when I assure you that in the course of a life which has brought me in contact with men of all ranks and of many nations, I have not known a more virtuous and pure man than yourself. Your education, that of a student, and your simplicity and your unsuspecting integrity, unfitted you for that active life of enterprise which is the characteristic of this nation, and made you unable to cope with the shrewdness of those by whom you were surrounded. Still, you have to the last resisted every temptation and struggled for existence by honorable means. Yet it is true that both you and I, during the years of youthful hopes and those which succeeded of arduous labors, identified with our new country and surrounded by new and dearest objects of domestic affection, it is true that we both neglected to correspond with the friends of our youth and to preserve ties which could not be replaced. The penalty for that offence we have paid, and have been the greatest sufferers. I have been far more to blame in that respect; and yet please to God that I had nothing worse to reproach myself with.

We all went to Greenfield, Connecticut, during the cholera and escaped that calamity; but during our absence we lost Mrs. Nicholson, who died in August of old age (88). It was principally on her account that Mrs. Gallatin wished, on our return from England, to settle here. I found after a while that my income was not sufficient for this conspicuous and expensive city, and this induced me to accept the place of president of a new bank (the National Bank of New York), which I have now filled for near two years, with a salary of 2000 dollars. I might now give it up so far as concerns myself, as the additional income derived from my wife’s property is sufficient for us; but whilst my health permits I may remain in it, as it gives me opportunities of introducing my sons in business. Although I neither suffer pain or can complain of serious illness, I grow gradually weaker, thinner, and more and more liable to severe colds and derangement of the bowels. My faculties, memory of recent events or reading excepted, are wonderfully preserved, and my two last essays on Currency and on the Tariff have received the approbation of the best judges here and in Europe. I had another favorite object in view, in which I have failed. My wish was to devote what may remain of life to the establishment, in this immense and fast-growing city, of a general system of rational and practical education fitted for all and gratuitously opened to all. For it appeared to me impossible to preserve our democratic institutions and the right of universal suffrage unless we could raise the standard of general education and the mind of the laboring classes nearer to a level with those born under more favorable circumstances. I became accordingly the president of the council of a new university, originally established on the most liberal principles. But finding that the object was no longer the same, that a certain portion of the clergy had obtained the control, and that their object, though laudable, was special and quite distinct from mine, I resigned at the end of one year rather than to struggle, probably in vain, for what was nearly unattainable.

The present aspect of our national politics is extremely discouraging; yet, having heretofore always seen the good sense of this nation ultimately prevailing against the excesses of party spirit and the still more dangerous efforts of disappointed ambition, I do not despair. But although I hope the dangers which threaten us may for the present be averted, the discussions and the acts which have already taken place have revealed the secret of our vulnerable points, dissolved the charm which made our Constitution and our Union a sacred object, and will render the preservation of both much more difficult than heretofore. I have always thought that the dangerous questions arising from the conflicting and, in our complex, half-consolidated, half-federative form of government, doubtful rights of individual States and United States should, if possible, be avoided; that the bond of union, if made too tight, would snap; and that great moderation in the exercise even of its most legitimate powers was, in our extensive country, with all its diversified and often opposite interests, absolutely necessary on the part of the general government.

1834.

This is a general observation, and more applicable to futurity than to the present. The acts of South Carolina are outrageous and unjustifiable. The difficult part for our government is how to nullify nullification and yet to avoid a civil war. A difficult task, but, in my humble opinion, not impossible to perform.

Do not write to me long letters which tire you; but now and then drop me three or four lines. All my family unite in affectionate remembrance and sympathy. Give my love to your wife and tell her that, whilst I live, she has a friend to whom she may apply under any circumstances. Farewell, my dear friend. May God throw comfort on your last years!

Ever your own faithful friend.GALLATIN TO BADOLLETNew York, 3d February, 1834.

My dear Friend, – …I sympathized most truly and deeply with you in the irreparable loss with which you have been afflicted. I had no consolation to offer you, and felt so painfully, that very wrongfully and shamefully I postponed and postponed writing to you. Even now what can I say but what must renew and embitter your grief? For no one knew more thoroughly, appreciated more highly than I did, the merits of your beloved partner. She was the solace of your checkered and in many respects troubled life, a singular blessing bestowed on you and long preserved. With heartfelt thanks to Him who gave it, resignation to his will is a duty, but this does not lessen the loss or the pain. May-be it was best that of the two you should have been the survivor. Do you now live with any of your children, and with which of them? I hardly dare ask how your health stands.

I have no other infirmities but a derangement of the functions of the stomach, which I manage without medicine, and an annually increasing debility which none could cure. It is only within the last year that I have discovered a sensible diminution in the facility of thinking and committing thoughts to writing. But this and other symptoms advise me that my active career is at an end, and that I cannot continue to vegetate very long… My daughter has already three children, who engross the attention of my wife. Mine has for some time been turned, and will be still more devoted, to the education of James’s son, who has tolerable talents and a most engaging disposition. He is the only young male of my name, and I have hesitated whether, with a view to his happiness, I had not better take him to live and die quietly at Geneva, rather than to leave him to struggle in this most energetic country, where the strong in mind and character overset everybody else, and where consideration and respectability are not at all in proportion to virtue and modest merit. Yet I am so identified with the country which I served so long that I cannot detach myself from it. I find no one who suffers in mind as I do at the corruption and degeneracy of our government. But I do not despair, and cannot believe that we have lived under a perpetual delusion, and that the people will not themselves ultimately cure the evils under which we labor. There is something more wanted than improved forms of government. There is something wrong in the social state. Moral still more than intellectual education and habits are wanted. Had I another life before me, my faculties would be turned towards that object much rather than to political pursuits. But all this is for our posterity. Farewell, my dear friend.

Ever most affectionately yours.

The only specimen of Mr. Gallatin’s conversation which seems to claim a place in his biography is that recorded by Miss Martineau in her journal. Concise as it is, it has the merits of both the speaker and the listener.

MISS MARTINEAU’S JOURNAL. 1834

New York, 24th September. – Mr. Gallatin called. Old man. Began his career in 1787. Has been three times in England. Twice as minister. Found George IV. a cipher. Louis Philippe very different. Will manage all himself and keep what he has. William IV. silly as Duke of Clarence. Gallatin would have the President a cipher too, if he could, —i. e., would have him annual, so that all would be done by the ministry. As this cannot yet be, he prefers four years’ term without renewal to the present plan, or to six years. The office was made for the man, – Washington, who was wanted (as well as fit) to reconcile all parties. Bad office, but well filled till now. Too much power for one man; therefore it fills all men’s thoughts to the detriment of better things. Jackson “a pugnacious animal.” This the reason (in the absence of interested motives) of his present bad conduct.

New Englanders the best people, perhaps, in the world. Prejudiced, but able, honest and homogeneous. Compounds elsewhere. In Pennsylvania the German settlers the most ignorant, but the best political economists. Give any price for the best land and hold it all. Compound in New York. Emigrants a sad drawback. Slaves and gentry in the South. In Gallatin’s recollection, Ohio, Illinois, and Indiana had not a white, except a French station or two; now a million and a half of flourishing whites. Maize the cause of rapid accumulation, and makes a white a capitalist between February and November, while the Indian remains in statu quo, and when accumulation begins, government cannot reserve land. The people are the government and will have all the lands. Drew up a plan for selling lands. Would have sold at two dollars. Was soon brought down to one dollar and a quarter with credit. Then, as it is bad for subjects to be debtors to a democratic government, reduction supplied the place of credit, and the price was brought down to one-quarter of a dollar.

All great changes have been effected by the Democratic party, from the first up to the universal suffrage which practically exists.

Aristocracy must arise. Traders rise. Some few fail, but most retain with pains their elevation. Bad trait here, fraudulent bankruptcies, though dealing is generally fair. Reason, that enterprise must be encouraged, must exist to such a degree as to be liable to be carried too far.

1836.

Would have no United States Bank. Would have free banking as soon as practicable. It cannot be yet. Thinks Jackson all wrong about the bank, but has changed his opinion as to its powers. It has no political powers, but prodigious commercial. If the bank be not necessary, better avoid allowing this power. Bank has not overpapered the country.

Gallatin is tall, bald, toothless, speaks with burr, looks venerable and courteous. Opened out and apologized for his full communication. Kissed my hand.

GALLATIN TO BADOLLETNew York, 3d September, 1836.

My dear Friend, – Your grandson Gillem arrived here safely, and with great propriety remained but two days and proceeded at once to West Point… I had intended to go myself to West Point, but chronical infirmities, always aggravated by travelling, have kept me the whole summer in the city.

It is not that I have any right to complain, … feeling sensibly the gradual and lately rapid decay of strength both of body and mind. The last affects me most; memory is greatly impaired, and that great facility of labor with which I was blessed has disappeared. It takes me a day to write a letter of any length, and unfortunately the excessive increase of expenses in this city and a heavy loss by last winter’s fire (in fire insurance stock) compel me, for the sake of the salary, to continue the irksome and mechanical labors of president of a bank… Neither I nor my children have the talent of making money any more than yourself, though the Genevese are rather celebrated for it. Mrs. Gallatin enjoys excellent health, and so does the family generally. Your grandson gave me a more favorable account of yours than I had hoped to hear. And I was also much gratified by the appointment of your son as your successor in the land office.

1836.

My last work, written in 1835, at the request of the Antiquarian Society of Massachusetts, is a synopsis of the Indian tribes of the United States east of the Rocky Mountains and of those of British and Russian America north of the United States. It will contain, besides an explanatory map, about two hundred pages of text and three hundred of comparative vocabularies and grammatical notices. I had expected to have sent you a copy before now, but the printing has been unaccountably delayed by the publisher employed by the society. I have materials for supplementary considerations on banking and currency, but I have not courage to reduce them to order, and, though they might perhaps be of some use, the bank-paper mania has extended itself so widely that I despair of its being corrected otherwise than by a catastrophe. The energy of this nation is not to be controlled; it is at present exclusively applied to the acquisition of wealth and to improvements of stupendous magnitude. Whatever has that tendency, and of course an immoderate expansion of credit, receives favor. The apparent prosperity and the progress of cultivation, population, commerce, and improvement are beyond expectation. But it seems to me as if general demoralization was the consequence; I doubt whether general happiness is increased; and I would have preferred a gradual, slower, and more secure progress. I am, however, an old man, and the young generation has a right to govern itself…

I had expected to write only a few lines, and have fallen into digressions of little personal interest to you. The fact is that as I grow less capable of thinking, I have become quite garrulous. I only wish I could enjoy once more the pleasure of practising in that respect with my old friend, as talking is not at all and writing is quite a labor to me. Fare you well, and, whether silent or writing, believe me, ever, whilst I still breathe,

Your old and faithful friend.

… I was rather astonished to hear that Harrison had a majority in Indiana. In the Presidential election I will take no part…

GALLATIN TO MADAME DE BUDÉ, NÉE ROLAZNew York, 1st May, 1845.1835.

… Rappelez-moi au souvenir de vos fils et de votre frère… J’espère qu’il laisse faire les gouvernements et qu’il ne se mêle plus de politique; ce qui est, comme je le sais, fort inutile lorsqu’on n’a point d’influence. Et je puis ajouter que mes quatorze dernières années, c’est-à-dire depuis que j’ai été étranger aux affaires publiques, out été, à tout prendre, les plus heureuses de ma vie. Mes plus belles années avaient été dévouées, je puis dire, exclusivement au service de ma patrie d’adoption; celles-ci l’ont été à mes enfants et aux affections domestiques. De plus, n’étant plus sur la route de personne, l’envie a disparu. On ne m’écoute pas du tout, mais on me considère et personne ne dit du mal de moi…

His opinions on the practical working of our government, especially with reference to taxation, were given at considerable length in a letter written to La Fayette in the year 1833. One portion of this letter is worth quoting, coming as it does from an original Republican of the Jeffersonian school:

“The local taxes in the country, at least where I am acquainted, amount to at least one-sixth of the income, and that on houses here [in New York City] to not more than one-twelfth part. This, merely for local disbursements, is certainly a heavy charge, particularly in the country, and arises partly from local wants, which for some objects, such as roads, are very great in proportion to our wealth. But it is also due in a great degree to our democratic institutions; and the burden, which was extremely light, especially in the country, fifty years ago, has been gradually and is still increasing. The reason appears to me obvious enough. Government is in the hands of the people at large. They are an excellent check against high salaries, extravagant establishments, and every species of expenditure which they do not see or in which they do not participate. But they receive an immediate benefit from the money expended amongst themselves, either as being employed in opening roads, the erection of buildings, &c., or as being more interested in the application of public money to schools, the payment of jurors and other petty offices, and even prospectively in the provision for the poor. They, in fact, pay little or no portion of the direct tax (occasionally enough in towns, but indirectly, by the increase of rents), and receive the greater part of its proceeds. You perceive that I do not disguise what I think to be the defects, and I know no other of any importance, in our system of taxation. I do not know any remedy for it here but in the exertions to obtain the best men we can for our municipal officers. But where institutions are yet to be formed, I may say that I have not discovered any evil to arise from universal suffrage in the choice of representatives to our legislative bodies; but that for municipal officers, who have no power over persons, but only that of applying the proceeds of taxes, those who contribute to such payment ought alone to have the privilege of being electors.”

The threatened rupture with France in 1835, when President Jackson nearly brought on a war on account of the failure of the French Chambers to appropriate money in pursuance of a treaty for the settlement of our claims, disturbed Mr. Gallatin greatly, and at the request of Edward Everett, then a member of Congress, he wrote two very elaborate letters for the use of the Committee of Foreign Relations.168 The following acknowledgment has a certain characteristic interest:

JOHN C. CALHOUN TO GALLATINWashington, 23d February, 1835.

Dear Sir, – I am obliged to you for putting me in possession of your views on a French war. They are such as I entertain. I know of no greater calamity that could befall the country at this time than a French war. I do not believe the Union would survive it. My course is taken. So long as France abstains from force I shall be opposed to war, and I am of the impression that such will prove to be the sentiment of the entire South…

The time was now coming for one more great effort on the part of Mr. Gallatin to control the course of public events, an effort which, considering all the circumstances, was as remarkable as any struggle of his life. It was his last prolonged attempt, and singularly characteristic.

1836.

Time had at length brought the realization of his most ardent hopes as Secretary of the Treasury, and the national debt was paid; all the advantages of that millennium were attained, whatever they might be, and Mr. Gallatin could esteem himself happy that he had lived to see his vision made fact. It was not to be denied that the establishment of republicanism, and even of democracy, had been long antecedent to the discharge of the debt; had proved to be noways dependent on the debt; had, indeed, been most rapid and most irresistible under the influence of a war which his own party had made, and under the burden of a heavy additional debt which he had himself helped to accumulate. This, however, was of little consequence; the results were gained, and the time had long passed when Mr. Gallatin would have been inclined to claim exclusive credit for them.

1837.

Unfortunately, the fact became immediately obvious that, whatever were the ultimate and permanent advantages gained by the extinction of the debt, the immediate consequences were disastrous and alarming in the extreme. Nullification and imminent civil war were at the head of the list, but were neither the most serious nor the most corrupting. Perhaps a worse result than civil war was the rapid decline in public economy and morality; the shameless scramble for public money; the wild mania for speculation; the outburst of every one of the least creditable passions of American character. At this revelation of the consequences of his own favorite political dogma, Mr. Gallatin stood positively appalled. “I find no one who suffers in mind as I do at the corruption and degeneracy of our government. But I do not despair, and cannot believe that we have lived under a perpetual delusion.” So he wrote to his oldest friend. To his alarm he found that extinction of the national debt was a signal for an astonishing increase in the indebtedness of the community at large, one significant sign of which was that the individual States contracted, between 1830 and 1838, new debts to the amount of nearly one hundred and fifty millions, that is to say, very nearly as much as had been discharged by the national government since 1789. Under any circumstances this tendency to extravagance would have been dangerous, but when the President seized this moment for his attack upon the bank, he immensely aggravated the evil. From 1830 to 1837, in anticipation of the failure to renew the bank charter, three hundred new banks were created, with a capital of one hundred and forty-five millions of dollars, precisely doubling the banking capital of the country. Meanwhile, after the discharge of the last instalment of national debt, an alarming surplus rapidly accumulated in the hands of the Treasury officials, until forty millions had been deposited by them in State banks and had become the means of an excessive expansion of credit, acting as a violent stimulus to the wild extravagance of the time.

All these causes produced five or six years of intoxication, during which the public morality was permanently lowered and the seeds of future defalcations, public and private, rapidly matured. Then the tide turned; England stopped lending money and called for payment; the President and Congress attacked the resources and credit of the State banks as earnestly as they had previously helped to create and extend both; the New York banks stopped discounting; a terrible crisis came on; and on the 10th May, 1837, the New York banks suspended specie payments. The universal suspension of all banks throughout the country instantly followed.

Mr. Gallatin’s bank suspended with the rest, not because it was obliged to do so, for it might perhaps have held out, but this would have answered no special object and would have produced considerable inconvenience. Mr. Gallatin himself, therefore, was personally involved in, and partially responsible for, an act of bankruptcy which was to him the substance of everything most galling and reproachful. He could not but remember how, in 1815, he had urged on the government the necessity of specie payments after the war, and how there had arisen almost a coldness between him and his friend Dallas, then Secretary of the Treasury, on the subject; how he had remonstrated against waiting for the restoration of the bank, and had pressed the Treasury to resume at once, by funding the excess of Treasury notes, and rejecting the notes of suspended banks when offered in payments to the government. That he should himself now belie his old teachings and become in practice if not in theory an advocate and supporter of an irredeemable paper currency, was intolerable. He had made every effort to prevent the necessity of suspension. He was now called upon by every feeling of self-respect to bring about resumption.

The State law required that a suspended bank, which did not resume its payments before the expiration of one year from the date of suspension, should be deemed to have surrendered its rights, and should be adjudged to be dissolved. This was the principal lever with which Mr. Gallatin could work. He represented an institution which of itself had very little weight; but, although his only means of interfering at all was in the character of president of a new and unimportant bank, his real authority was wholly personal, and it was fortunate for him that the want of capital behind him was supplied by the active and able co-operation of other bank officers, especially by Mr. George Newbold, of the Bank of America, and by Mr. Cornelius W. Lawrence, of the Bank of the State of New York.

On the 15th August a general meeting was held by the officers of the city banks. A resolution was adopted appointing a committee to correspond with the leading State banks throughout the Union, for the purpose of agreeing on the time and the measures for resumption. This committee consisted of Mr. Gallatin, Mr. Newbold, and Mr. Lawrence, and proceeded almost immediately to carry out its instructions. Three days afterwards, on August 18, a circular-letter was despatched, inviting the other banks to a conference, and laying down in very energetic language the rules which should guide their action: “By accepting their charters the banks contracted the obligation of redeeming their issues at all times and under any circumstances whatever; they have not been able to perform that engagement; and a depreciated paper, differing in value at different places and subject to daily fluctuations in the same place, has thus been substituted for the currency, equivalent to gold or silver, which, and no other, they were authorized and had the exclusive right to issue. Such a state of things cannot and ought not to be tolerated any longer than an absolute necessity requires it… As relates to the banks of this city, we are of opinion that, provided the co-operation of the other banks is obtained, they may and ought to, we should perhaps say that they must, resume specie payments before next spring.”