235 YEARS OF FOUNDING ERA HISTORY (CHAPTER 7)

Үүң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң үң So, until a federal taxing system could be created with a constitutional amendment to the Articles of Confederation, the Federalist-Nationalist-Monarchist had to confine themselves to establishing a federal taxing power within the Articles of Confederation's present framework. That power, after all, was the critical linchpin of the entire counter-revolutionary Anti-Declaration of Independence program. Now, the requisition system, leaving power in the hands of the several states, could never supply the firm basis for centralized sovereignty, and no one knew this better than the Federalists. In early 1781, they proposed a federal impost, or import duty, of five percent on all goods imported into the United States. The import revenue was to go to repay interest in principle on the federal debt contracted during the revolution, both domestic and foreign. The impost power was to continue as long as there was a public debt, in other words, forever. The states were asked to agree to this power as to be vested in Congress. Implicit along with that was to be the collection of this tax by federally appointed and not state-appointed tax collectors. Now, folks, this was a big issue back then. Who's going to be collecting your taxes, the state or the feds? Now, this impost would only yield about a half a million dollars a year, no more than a million in peacetime, and this did not suffice to pay even the interest on the public debt that Morris and his henchmen had accumulated before the end of the war. But Morris and his fellow Federalists envisioned it as an entering wedge to be eagerly followed by taxes on poles, property, and commodities. Indeed, Morris considered this impost, proposed and adopted by Congress before his accession to office, the key to the success of his entire program. Referring to this impost, Morris would declare, and I quote, the political existence of America depends on the accomplishment of this taxation plan, unquote. Hmm, so America's political existence. Notice he said political existence depends on taxation. Take that to heart, folks. The impost concept had previously been proposed in Congress by Gouverneur Morris and by none other than Thomas Burke, who by 1780 had totally shifted toward nationalism. But the 1781 plan was basically steered through Congress by Robert L. Livingston and John Sullivan of New Hampshire. Now, it passed Congress on February the 3rd, 1781. Originally, some of these Federalists wanted to present the impost plan as a simple revenue measure which would become effective after ratification by the legislatures of nine states. But it was clear to the most ignorant that the creation of a federal taxing power was a fundamental amendment to the Articles, and therefore it must be ratified by every state. That is what these Federalists absolutely hated Articles 2 and 13 of the Articles of Confederation. These Federalists, firmly in control of every state legislature at the time, were very optimistic that they could get these taxing schemes through, and Morris threatened, bullied, and whined and dined the state legislatures. He pulled out every stop. First, the tax was supposedly absolutely essential to obtain foreign loans, and next, he said, without it, they couldn't win the war. Well, with the war over in 1781, after Yorktown, now here's the critical part. We're always told the war ended in 1783. The actual fighting on the field of battle ended after Yorktown. It was two years before a treaty was signed, but there was no active war going on from 1781 to 1783. Well, Morris's harassment reached the height of absurdity in early 1782, as he ranted that he, and I quote, who opposes this grant of revenue, labors to continue the war, and of consequence, to shed more blood, to produce more devastation, and to extend and prolong the miseries of mankind. What a hell of a speech to be making a year after the war is over. But he and Gouverneur Morris, in their letters, mentioned that they needed to talk with the media, and they needed to, so that the people wouldn't even know the war was over. That is exactly how fraudulent these Federalists are, still today, because we still got Federalists running the government, have been since 1787. But Morris was embarrassed by obtaining foreign loans without the tax, but he relieved his embarrassment simply by keeping information of the French loan from the states in order to keep up the pressure for the impost. Though he didn't want anyone to know about the amount of the French loan he seized for his bank, when the war argument had become nonsensical to everyone, he shifted his tune to bellow about the sacredness of the public debt and the payment of the creditors, which was he and a lot of the other Federalists. He went so far as to refer to the existence of a large public debt as an inestimable public jewel. So sacred did the cynical Morris regard the public debt contract that he deliberately stopped all interest payments on Federal loan certificates in 1782, in a deliberate attempt to force the public creditors into the aforementioned pressure campaign. He exalted to Benjamin Franklin about his, and I quote, well-grounded expectation that the claims of the public creditors would induce the states to adopt the impost, unquote. Hmm, Morris and Franklin still big buddies, huh? Imagine that. Now Morris and his Federalist buddies even used threats and even sent teams of congressmen into the individual states to persuade those state legislatures, joined to tighten nationalist control of the politics of the country, and they drove the impost through all the states except one by the autumn of 1782. Only Rhode Island remained, and it seemed inconceivable that this little state could refuse to ratify when all the others had agreed. Furthermore, Rhode Island Congressman General James M. Barnum was one of the leaders of the Federalists, and he and fellow congressman Daniel Mowry had been in control of the politics of Rhode Island for some time. So Congress confidently demanded an immediate decision from Rhode Island, and Robert Morris declared that the impost, and I quote, may be considered as being already granted, unquote. That's how sure he was that Rhode Island was going to capitulate and agree. But the element that opposed Morris was kind of out of sorts by this time. They had just been fighting this over and over, and there seemed to be no force in the entire country that could stop these Federalists and their taxing juggernaut. Now even Thomas Paine sold out his heretofore freedom rebel principles by secretly hiring out his eloquent and renowned writing abilities to the Federalist moneyed interest, first to the briber and French intriguer, La Hucerne, and then to the land speculators themselves. Almost miraculously in Rhode Island, an unknown David, if I can use that analogy, rose to slay the Philistine giant Robert Morris and his well-constructed Federalist machine. So the man's name? David Howell, H-O-W-E-L-L. A political upheaval in Rhode Island in the spring of 1782 had ousted General Varnum and his colleagues from the Continental Congress and replaced them by others who were more friendly to the interests of the people in Providence, Rhode Island. So the war and the British invasion had all but wrecked Newport, Rhode Island, and it had shifted the trade and thus the prosperity to Providence, Rhode Island, which was now the center of Rhode Island trade. And for its prosperity, this primarily entrepreneurial commerce required freedom of trade unhobbled by any tariffs. Furthermore, the merchants sensibly saw no reason why Rhode Island trade had to be penalized and crippled in order to pay public creditors from other states. Imagine that. Hmm. What was that Civil War over? Oh, I'm sorry. David Howell, as I said, leader of this Morris Federalist opposition, was a professor at Brown University and he was chosen for Congress along with his Providence colleagues, Dr. Jonathan Arnold and John Collins. Upon arriving at Philadelphia in early June, Howell began a well-orchestrated campaign against Morris's taxing schemes and attacked other centralizing measures as well. Emboldened by his efforts, the Rhode Island legislature postponed considering the impost in early September, leading the Congress to make its preemptory demand for Rhode Island's acceptance. At that point, Howell and Arnold advised the state legislatures to reject the impost, which, if granted, would bring about a huge permanent federal machine with ever larger expenditures and taxes. Now here was his written, Mr. Howell's written plea, and I will quote that for you, or read it for you. Quote, bureaucrats would multiply a numerous train of officers concerned in the collection and after-management of the revenue, the tribes of half-pay officers, pensioners, and public creditors. This program eloquently warned the two Rhode Island delegates would indeed complete the bond of union. Unquote. In the favorite phrase of Morris and his supporters, he said, but we will add the yoke of tyranny fixed on all the states and the chains riveted. Mr. Morris's statement, the lead federalist here, let me read that for you again. Quote, we will add the yoke of tyranny fixed on all the states and the change will be riveted. Unquote. This reminded the Rhode Island legislature that the object of the seven years of revolution had been to preserve the liberties of the country and not to assume into our own hands the power of governing tyrannically. So, have you ever really wondered why Rhode Island didn't send delegates to the Constitutional Convention? And why did Rhode Island vote down ratifying the Constitution? And Rhode Island was the only state to submit the Constitution of 1787 to the people for a vote, and it was overwhelmingly defeated, well over 90 percent. So, suddenly Morris and the Federalists find themselves between a rock and a hard place. What are we going to do here? To counter the Howell forces, Morris and his Federalists organized a heavy pressure barrage upon Rhode Island. We can't allow those people to think for themselves, not if it opposes our plans. Thus, with only the knowledge of Livingston, Washington, and Gouverneur Morris, Robert Morris secretly hired Thomas Paine to write articles attacking Rhode Island's opposition to this taxing scheme. The Federalists organized a hysterical campaign of vilification of Howell, which led to his censure by Congress, unanimously, but by Rhode Island, for disclosing important facts about the progress of foreign loans that Congress had deliberately kept secret in order to build up pressure for more taxes. Sound familiar, anyone? Well, just as Congress prepared to send a commission to Rhode Island to put pressure upon their delegates there, probably had a pocketful of bribe money too, they received, Congress, received the stunning news at the end of December that Virginia had repealed ratification of the impost. The critical, necessary, imperative part of the Nationalist program, federal taxation, had failed in the Articles of Confederation, and that, people, is why they call them weak, because it didn't provide the taxing powers the Federalists demanded. Well, the repeal by the Virginia legislature of this taxing scheme occurred so quickly and quietly that such Federalist leaders as Edmund Randolph and Gouverneur Benjamin Harrison could not understand, for the world of them, what had happened in Virginia that this tax had been approved and then had been disapproved. Well, you want to know what happened, people? Patrick Henry happened, that's what it was, because he was telling the people of Virginia the truth. He smelled a rat leaning toward a monarchy in Philadelphia, did he not? But with the English invasion of Virginia over, an impost passed as an emergency war measure, had now been considered more soberly, and because they had been presented the truth by Patrick Henry. But as in the case of the rest of the public creditors, Morris's arguments had backfired, and Virginia balked at allowing federal tax officials to levy a tax that could be retained permanently. The impost plan was dead in the water, and the Federalist juggernaut had been stopped in its tracks, it would appear, at the last minute. So the Nationalists were forced to focus on a new constitution, unrestrained by the limits of Article 13 of the Articles of Confederation. So, kind of sewing up the bag here, Robert Morris last year in office was a far cry from his all-powerful role as the dictator of the country during the war. Just absolutely upset at the failure of the Federalist dreams, Morris found his power confined to administrative tasks in his own department, and to set about redeeming the Morris notes. Many leading Federalists quit federal office and discussed. Hamilton retired from Congress to practice law in New York. James Madison just walked out and left his term in Congress. Livingston resigned as the Secretary of Foreign Affairs to resume his old post as Chancellor of New York, and Gouverneur Morris resigned as Robert Morris' assistant. The rotation in office, or term limits as we call them, imposed by the Article's injunction against more than three consecutive years in Congress, ensured the retirement of many of these ultifederalists. Furthermore, after being subjected to harassment by hundreds of mutinous Pennsylvania troops in late 1783, demanding the pay due to them, Congress left Philadelphia, the home of Robert Morris and the public creditors pressure, and retired first to Princeton and then to Annapolis. Even the government got out of Pennsylvania because of this crap. This change of atmosphere helped considerably to shift Congressional opinion from Federalist to Confederation, ending what David Howell called the poisonous influence of the Pennsylvania metropolis. The young Massachusetts opposer of nationalism and what we know today as Federalism, Samuel Osgood, claimed that the removal from Philadelphia of the government eliminated systems which would finally have tended an absolute aristocracy. Well, we have it today, folks. But Morris' Bank of North America was also eased out of its status as a central bank during 1783 to revert to the status of a private bank chartered by the state of Pennsylvania. By mid-1782, the bank had $400,000 of loans outstanding to the U.S. government, and the government in turn owned five-eighths of its capital. In December, Robert Morris, uneasy at the close link between government and the bank as his political power threatened to evaporate, he began in December to systematically disengage the two institutions. By July of 1783, all of the federal government stock in the Bank of North America had been sold to private interest, and by the end of 1783, all the U.S. government to the bank had been repaid. Remember that. By the end of 1783, all of the U.S. government debt to the bank had been repaid. Now, that's going to get critical here in a few minutes as we move on, not today, but as we move on, remember that the debt was paid. The danger of a central bank was ended, at least for the time being, though Alexander Hamilton would quickly re-establish it under the Federalist New Constitution. Even so, the bank continued to discount short-term notes for the government. Morris once more came under congressional fire for the mixing of the public and his private interest. I don't understand why his Federalist buddies had given him that power, but it was revealed that by quietly giving special redemption status and specie to his own notes, he was aiding his business partners who were speculating in these forms of currency. The grasping and once dictatorial Robert Morris had become, in a brief period, a personal liability to the Federalist cause, a liability that stimulated local state interest in such Massachusetts delegates as the wealthy merchant Stephen Higginson. Higginson's major objection to the impost was that it was part of the scheme or the web of Morris and his Federalist cohorts. Much of the Southern opposition was also inspired by the hostility to Robert Morris. Do you understand now why he turned down the office of Secretary of Treasury? I'm sure he would have loved to have had that. But the Federalist forces had succeeded in some of their plans. Executive departments had been established within the Articles of Confederation, which was, in essence, a centralizing of power beyond what the Continental Congress had intended. The Northwestern lands were being nationalized into the hands of Congress, and a great deal of the Revolutionary War debt had been assumed by the Federal authority. But in the primary areas, the perpetuation of control by Robert Morris and the financial oligarchy, the establishment of a permanent federal taxing power, and a permanent national standing army, the Federalist had lost. So they had to set about, post haste, to get busy and to make sure that they got a constitution which would allow them to continue the corruption of 1780-1781. Well, folks, we are nearing the end of Chapter 7 of the 235 years of founding era history you weren't taught about. And I feel most confident that the majority of people in this country had never even heard of Robert Morris, much less knew anything about the scheme of the central government, of these Federalist monarchists who control everything, which they eventually gained with the Constitution of 1787 by holding it in secret, and then changing the method and mode of ratification from the state legislatures to state conventions. And that perfected their plan. The Constitution of 1787 was a bloodless revolt against the principles of the Articles of Confederation and the Declaration of Independence. Maybe that's why we don't talk. About anti-Federalists. Have a wonderful day, people. God bless, and we'll see you with Chapter 8.