Opposition to the Bank of the U.S.
Did Slavery Motivate Resistance to Hamilton’s Fiscal Policies?
In his most recent book, historian Joseph Ellis argues that protecting slavery influenced Jefferson and Madison to oppose Hamilton's federal economic policies.
Hamilton’s Fiscal Policies
In the late 1780’s, with the United States mired in debt, Treasury Secretary Alexander Hamilton devised a fiscal policy designed to repay foreign creditors and establish financial stability. The plan involved, among other things, shifting to a more centralized paper money system, encouraging more domestic manufacturing and, the most controversial proposal, establishing a government sponsored Bank of the United States (BUS). Thomas Jefferson and James Madison strongly opposed Hamilton’s plan arguing that it was an unconstitutional expansion of federal powers violating the Tenth Amendment.
Author and historian Joseph Ellis however, sees a different motivation behind the opposition. In his recent book, American Creation: Triumphs and Tragedies at the Founding of the Republic, Ellis argues that protecting the institution of slavery was a driving factor behind Jefferson and Madison’s opposition to the Hamilton plan. He bases his claim on three key premises: First, that the founders failure to mention slavery in arguments against Hamilton’s plan is, in and of itself, evidence of its influence; second, that the Virginia planter class would readily see any expansion of federal power as a threat to slavery; and third, that Madison’s use of the Constitution to oppose anti-slavery legislation was not uncommon. But, perhaps even more interesting than this original proposition itself, is the way in which Ellis teases out evidence to support his premises.
Founder’s Use of the Word Slavery
It may seem odd to attempt to support an argument by stating that there is no direct evidence for it, however this is precisely what Ellis does. Ellis states that the fact that Madison and Jefferson never mention slavery in their discussions concerning the BUS may be the most salient evidence for its influence. To do this Ellis points out that founders were quite adept at not mentioning slavery even when it was the specific topic they were discussing. Citing the wording of the Constitution, the social mores of the Virginia elite and the fact that discussing slavery as motivator for opposing reform would in fact damage their cause, Ellis manages to take an improbable proposition and make it seem possible.
Expansion of Federal Powers and Slavery
Ellis provides less of an underpinning for his expansion of federal powers premise but this may have more to do with starting from a much higher believability plateau than there being less available evidence. The main support of his explanation is provided by an 1818 letter from Virginia politician Nathaniel Macon. In the letter Macon breaks the code of silence and comes straight out with the argument that if the Federal government can fund internal improvements and establish banks, what’s stopping them from abolishing slavery? Now, while this letter was written nearly two decades after the Hamilton-Madison debate, Ellis argues that it is reasonable to conclude that its sentiments were established earlier.
Madison, the Constitution and Slavery
As noted above, Madison based his public opposition to the BUS from the position of constitutionality. Madison contended that since the power to establish a bank was not specifically enumerated in the Constitution then that power rested with the states and not the Federal government. And while this may seem to be a reasonable legal argument, Ellis proposes that this is just one more example of southern Republicans using the constitution to defend slavery. He then specifically cites a 1791 floor debate regarding Quaker petitions requesting that congress begin debates on the slavery question. Madison argued against the petitions on constitutional grounds, proposing that not only the principles of federalism but also the non-importation clause made even debating the question out of congressional jurisdiction.
While Ellis’ interpretation of Jefferson and Madison’s motivations in opposing the BUS is no way a slam-dunk argument – there are certainly other equally or perhaps more plausible explanations – it, like much of the book, is thought provoking.
Source:
Ellis, Joseph J. American Creation: Triumphs and Tragedies at the Founding of the Republic. NY: Alfred A. Knopf. 2007.
