"Would it not be advisable to let all taxes, even those imposed by the States, be collected by persons of Congressional appointment"?* indicates the early direction of his views; and he subsequently wrote, "it has ever been my opinion that Congress ought to have complete sovereignty in all but the mere municipal law of each State." This opinion is expatiated upon in this communication, very important in itself and most important in all its consequences,† generally admitted to be the first proposal made in this country of a Convention to frame a National Government.

"The fundamental defect," Hamilton observed, "is a want of power in Congress. It is hardly worth while to show in what this consists as it seems to be universally acknowledged; or to point out, how it has happened, as the only question is, how to remedy it. It may however be said, that it has originated from three causes-an excess of the spirit of liberty, which has made the particular States show a jealousy of all power not in their own hands; and this jealousy has led them to exercise a right of judging in the last resort, of the measures recommended by Congress, and of acting according to their own opinions of their propriety or necessity,-a diffidence in Congress of their own powers, by which they have been timid and indecisive in their resolutions, constantly making concessions to the States, till they have scarcely left themselves the shadow of power :-a want of sufficient means at their disposal to answer the public exigencies, and of vigor to draw forth those means, which have occasioned them to depend on the States individually to fulfil their engagements with the army, the consequence of which has been to ruin their influence and credit with the army, to establish its dependance on each State separately, rather than on them that is than on the whole collectively. It may be pleaded that Congress had never any definitive powers granted them; and of course could exercise none-could do nothing more than recommend. The manner in which Congress was appointed would warrant, and the public good required, that they should have considered themselves; as vested with full power to preserve the Republic from harm.

"They have done many of the highest acts of sovereignty, which were always cheerfully submitted to-the declaration of independence, the declaration of war,-the levying an army,— creating a navy,-emitting money,-making alliances with * Hist. Repub. i. pp. 4, 7.

† Ibid. ii. 86. Hamilton to James Duane, Sept. 3, 1780.

Foreign powers-appointing a Dictator, etc. All these were implications of a complete sovereignty, were never disputed and ought to have been a standard for the conduct of administration. Undefined powers are discretionary powers, limited only by the object for which they were given;-in the present case, the independence and freedom of America. The Confederation made no difference; for as it has not been generally adopted, it had no operation.

"But, from what I recollect of it, Congress have even descended from the authority which the spirit of that act gives them, while the particular States have no farther attended to it, than as it suited their pretensions and convenience. It would take too much time to enter into particular instances, each of which separately might appear inconsiderable, but united are of serious import. I only mean to remark, not to censure.

"But, the Confederation itself is defective and requires to be altered. It is neither fit for war, nor peace. The idea of an uncontrollable sovereignty in each State, over its internal police, will defeat the other powers given to Congress, and make our Union feeble and precarious. There are instances without number, where acts necessary for the general good, and which rise out of the powers given to Congress must interfere with the internal police of the States; and there are as many instances in which the particular States by arrangements of internal police can effectually, though indirectly, counteract the arrangements of Congress. You have already had examples of this, for which I refer you to your own

memory.

"The Confederation," he proceeds, "gives the States individually too much influence in the affairs of the army. They should have nothing to do with it. The entire formation and disposal of our military forces ought to belong to Congress. It is an essential cement of the Union; and it ought to be the policy of Congress to destroy all ideas of State attachments in the army and make it look up to them. The Confederation too, gives the powers of the purse too entirely to the State legislatures. It should provide perpetual funds in the disposal of Congress by a land-tax, poll tax, or the like. All Imposts upon commerce ought to be laid by Congress and appropriated to their own use. For without certain revenues, a Government can have no power. That power which holds the purse strings absolutely must rule. This seems to be a medium which with

out making Congress altogether independent will tend to give reality to its authority. Another defect in our system is want of method and energy in the administration. This has partly resulted from the other defect, but, in a great degree, from prejudice and the want of a proper Executive. Congress have kept the power too much in their own hands, and have meddled too much with details of every sort. Congress is properly a deliberative corps; and it forgets itself when it attempts to play the Executive." Passing on from particular errors, he advanced to a fuller statement. "The Confederation, in my opinion, should give Congress complete sovereignty; except as to that part of internal police which relates to the rights of property and life among individuals, and to raising money by internal taxes. It is necessary, that every thing belonging to this should be regulated by the State legislatures. Congress should have complete sovereignty in all that relates to war, peace, trade, and finance, and to the management of foreign affairs; the right of declaring war, of raising armies, officering, paying them, directing their motions in every respect; of equipping fleets, and doing the same with them; of building fortifications, arsenals, magazines &c. &c.; of making peace on such conditions as they think proper; of regulating Trade, determining with what countries it shall be carried on, granting indulgences, laying prohibitions on all the articles of export or import imposing duties, granting bounties, and premiums for raising, exporting or importing; and applying to their own use the product of these duties, only giving credit to the State on whom they are raised in the general account of revenues and expense; instituting Admiralty Courts, &c.; of coining money, establishing Banks, on such terms and with such privileges as they think proper; appropriating funds, and doing whatever else relates to the operations of finance, transacting every thing with foreign nations; making alliances, offensive and defensive, treaties of commerce &c. &c."

"The Confederation should provide certain perpetual revenues, productive and easy of collection; a land tax-poll tax-or the like, which, together with the duties on trade, and the unlocated lands, would give Congress a substantial existence; and a stable foundation for their schemes of finance." The next step recommended by him, was, a repetition of that of the previous yearthe appointment of Five "great officers of State." Another step was, the recruiting of the Army for the war, or at least for three

years and eventually a draft—and the placing the officers on half pay. "The providing supplies," he added, "is the pivot of every thing else;" and four ways to be united are mentioned"a foreign loan-heavy pecuniary taxes-a tax in kind-and a Bank founded on public and private credit.”

Having stated the want in Congress of powers, competent to the public exigencies, he observed as to the remedy; "This may happen in two ways: one by resuming and exercising the discretionary powers, I suppose to have been originally vested in them for the safety of the States, and resting their conduct on the candor of their countrymen and the necessity of the conjuncture; the other by calling immediately a CONVENTION of all the States with full authority to conclude finally upon a general confederation; stating to them beforehand explicitly the evils arising from a want of power in Congress and the impossibility of supporting the contest on its present footing; that the Delegates may come possessed of proper sentiments, as well as proper authority to give efficacy to the meeting."... "The reasons for which I require them to be vested with plenipotentiary authority are, that the business may suffer no delay in the execution, and may in reality come into effect. A CONVENTION may agree upon a Confederation, the States individually never will. We must have one at all events, and a vigorous one; if we mean to succeed in the contest and be happy hereafter. I am persuaded a solid confederation, a permanent army, a reasonable prospect of subsisting it would give us treble consideration in Europe and produce a peace this winter. If a CONVENTION is called, the minds of all the States and the people ought to be prepared to receive its determinations by sensible and popular writings which should conform to the views of Congress."... "The measure of a convention would revive the hopes of the People, and give a new direction to their passions, which may be improved in carrying points of substantial utility."

Six days after the date of this remarkable letter, New York, in the person of General Schuyler, who was in intimate communion with Hamilton, in answer to a message from its Governor, avowed its strong convictions.* "Our embarrassments in the prosecution of the war," Governor Clinton then declared, "are chiefly to be attributed to a defect of power in those who ought to exercise a Supreme jurisdiction; for while Congress

* Hist. Repub. ii. 110, 111, 112.

only recommend, and the different States deliberate upon the propriety of the recommendation, we cannot expect a union of force or council." "We perceive," Schuyler answered in behalf of the Senate, "the defects in the present system and the necessity of a supreme and coercive power in the government of these States; and are persuaded, that unless Congress are authorized to direct uncontrollably the operations of war, and enabled to enforce a compliance with their requisitions, the common force can never be properly united."

This idea of enforcing States seemed at these critical times to be the only remedy in view; and in fact, in such a confederation, force was the only possible sanction for the laws. Beside contemplating the appointment of a DICTATOR, with a Vice Dictator in each State, to be recommended by a seventh convention about to meet at Hartford, New York, by a unanimous vote, instructed her delegates to it, "to propose and agree, that Congress, during the present war or until a perpetual Confederation shall be completed, should be explicitly authorized and empowered to exercise every power which they may deem necessary for the effectual prosecution of the war ;" and that, whenever it shall appear to them that any State is deficient in its contributions, they should "direct the Commander in Chief without delay to march the army, or such part of it as may be requisite in such State; and, by military force, compel it to furnish its deficiency."

Rash as this proposal was,* it was only a proposal to carry into effect upon a more extended scale a recent precedent in Pennsylvania; where, a few months before, martial law was proclaimed, to enable the State officers to procure supplies for the army-; Nor was this substitution of the arbitrary violence of military law for the regular and mild processes of civil government, only approved in the Middle States. In the following month, a leading delegate to Congress from Virginia, among his first essays in that body, proposed as an expedient, that the requisite supplies for the army "be impressed with vigor and impartiality, and paid for in certificates not transferable; and to be redeemable at some period subsequent to the war, at specie value, and bearing an intermediate interest." The advantages promised were-an anticipation "of the future revenues of

* Hist. Rep. ii. 112, 1780.

By James Madison-Madison Papers, i. 56. October 1780.