Yesterday's post about John Hay and William McKinley made me wonder about the relationship between presidents and their closest advisers. Throughout history, it has rarely been the case that a president's closest confidant has been his Vice-President. Sometimes it has been his Chief of Staff, sometimes a member of his cabinet sometimes a member of congress and sometimes a political adviser who was given no formal office. I thought this might make an interesting project to embark on for those days that don't mark any particular anniversary. So let's begin at the beginning.
If I had to guess who George Washington was closest to during his Presidency, my guess would be Alexander Hamilton. I understand that Washington hated factions, and when Hamilton and Jefferson split the Federalists into two competing factions, I don't thing Washington was too pleased about it. Still, my guess is that Washington was probably closer with Hamilton than with Jefferson, John Adams, or any of the others in his government.
The relationship between Hamilton and Washington went back to the Revolutionary War. In 1775, after the first clashes between American and British troops in Boston, Hamilton joined a New York volunteer militia company called the Hearts of Oak, which included some of his fellow students from King's College. He drilled with the company, before classes, in the graveyard of nearby St. Paul's Chapel. Hamilton studied military history and tactics on his own and achieved the rank of lieutenant. He raised the New York Provincial Company of Artillery of sixty men in 1776, and was elected captain.
Hamilton was invited to become an aide to Nathanael Greene and to Henry Knox, but he declined those offers, believing his best chance for improving his station in life was on the battlefield. Hamilton accepted an invitation to serve as Washington's aide, with the rank of Lieutenant Colonel. He served for four years as Washington's chief of staff where he handled letters to Congress, state governors, and the leading generals in the Continental Army. He drafted many of Washington's orders and letters and often acted as Washington's emissary. Washington appeared to have deep confidence in Hamilton's abilities and character.
While on Washington's staff, Hamilton sought a return to active combat. In February 1781, Hamilton resigned his staff position and asked Washington for a field command. After initially refusing to do so, on July 31, 1781, Washington relented and assigned Hamilton as commander of a New York light infantry battalion. In the planning for the assault on Yorktown, Hamilton was given command of three battalions. Hamilton and his battalions fought bravely and captured their objective. This action helped to force the British surrender at Yorktown.
After the Battle of Yorktown, Hamilton resigned his commission. He was appointed in July 1782 to the Congress of the Confederation as a New York representative for the term beginning in November 1782. While Hamilton was in Congress, discontented soldiers began to pose a danger to the young United States. Most of the army had not been paid in eight months. Hamilton wrote Washington to suggest that Hamilton covertly lead the officers' efforts to secure redress. Washington wrote Hamilton back, discouraging this plan. On March 15, Washington defused the situation by giving a speech to the officers. Congress ordered the Army officially disbanded in April 1783. The Continental Congress was never able to secure full ratification for back pay, pensions, or its own independent sources of funding.
Hamilton served as a delegate to the Constitutional Convention in 1787 and on September 11, 1789, Washington appointed Hamilton as the first United States Secretary of the Treasury. He served in that position until January 31, 1795. Washington also sought Hamilton's advice on matters outside the purview of the Treasury Department. In that office, he proposed that the federal government assume state debts incurred during the Revolution. This was opposed by Secretary of State Thomas Jefferson and Representative James Madison because they felt that some states, such as Virginia, had paid almost half of their debts off, and they felt that their taxpayers should not be assessed again to bail out the less provident. The disagreements between Madison and Hamilton led to a split in government. Hamilton's supporters became known as Federalists and Jefferson's as Republicans. In the end, Hamilton's assumption, together with his proposals for funding the debt, overcame legislative opposition and narrowly passed the House on July 26, 1790.
Hamilton suggested that Congress should charter a National Bank, to be governed by a twenty-five member board of directors. Hamilton's bank model had many similarities to that of the Bank of England, except Hamilton wanted to exclude the Government from being involved in public debt, but provide a large, firm elastic money supply for the functioning of normal businesses and economic development. The bill passed through the Senate practically without a problem, but objections of the proposal increased by the time it reached the House of Representatives. Madison and Jefferson opposed the bank bill. The bill eventually passed in an overwhelming fashion 39 to 20, on February 8, 1791.
Washington hesitated to sign the bill, on advice from Attorney-General Edmund Randolph and Jefferson. But Washington eventually signed the bill into law.
One of the principal sources of revenue Hamilton prevailed upon Congress to approve was an excise tax on whiskey. Strong opposition to the whiskey tax in rural regions erupted, leading to the Whiskey Rebellion in 1794. In western Pennsylvania and western Virginia, whiskey was the basic export product and was fundamental to the local economy. In response to the rebellion, Hamilton accompanied a force led by Washington. This overwhelming display of force intimidated the leaders of the insurrection, ending the rebellion virtually without bloodshed.
When France and Britain went to war in early 1793, the Cabinet and Washington unanimously agreed to remain neutral. But in 1794 policy toward Britain became a major point of contention between the two parties. Hamilton and the Federalists wished for more trade with Britain, the new nation's largest trading partner. The Republicans saw Britain as the main threat to republicanism and proposed instead a trade war. To avoid war, Washington sent Chief Justice John Jay to negotiate with the British. Hamilton largely wrote Jay's instructions. The result was Jay's Treaty. It was denounced by the Republicans but Hamilton mobilized for it. The Jay Treaty passed the Senate in 1795 by exactly the required two-thirds majority. The Treaty resolved issues remaining from the Revolution and averted war with Britain for over a decade.
In 1791, Hamilton became involved in an affair with Maria Reynolds that would eventually badly damage his reputation. Reynolds's husband, James, blackmailed Hamilton for money by threatening to inform Hamilton's wife. When James Reynolds was arrested for counterfeiting, he contacted several prominent members of the Democratic-Republican Party, including James Monroe and Aaron Burr, touting that he could expose a top-level official for corruption. When they learned that Hamilton's conduct did not involve the performance of his duties, Hamilton's interviewers did not publish about the affair. When rumors began spreading after his retirement some years later, Hamilton published a confession of his affair.
Hamilton resigned as Secretary of the Treasury in 1795. But he remained close to Washington as an adviser and friend. Hamilton's advice was sought by Washington in the composition of his Farewell Address.
In the election of 1796, John Adams resented Hamilton's influence with Washington and considered him overambitious, while Hamilton thought Adams compared unfavorably with Washington and thought him too emotionally unstable to be President. Hamilton tried to convince electors to vote in such a way that the votes would be split and Charles Cotesworth Pinckney would become President, but his plan did not work.
During the Quasi-War of 1798-1800, with Washington's strong endorsement, Adams reluctantly appointed Hamilton a major general of the army. Hamilton argued that the army should conquer the North American colonies of France's ally, Spain, bordering the United States and he tried to get Congress to pass a direct tax to fund the war. Adams, however, derailed all plans for war by opening negotiations with France. Adams had planned to retain the members of Washington's cabinet, but he found that in 1800 after Washington's death, they were obeying Hamilton rather than himself, and fired several of them.
Hamilton remained involved in politics, but had no influence in the government of Thomas Jefferson. On July 12, 1804, Hamilton was killed in a duel with Aaron Burr.