Sunday, July 5, 2026

ARP392 Treaty with Spain

On October 7, 1795, the Ambassador Thomas Pinckney agreed to the first treaty between the US and Spain.  During the Revolutionary War, Spain had used the American rebellion against Britain to attack British colonies and territories.  Spain, however, was not interested in independence.  Spain controlled a vast system of colonies that controlled the western portion of North America and all of central and South America other than Brazil and a few other small colonies.  It also controlled the largest and wealthiest colonies in the Caribbean. 

King Carlos was in no hurry to join the spirit of revolution and liberty that had infected France and eventually led to the overthrow of King Louis. He was also in no hurry to encourage the colonies under Spanish control to think that fighting for independence was a good idea.

Spanish Louisiana

When Spain first received the Louisiana Territory from France at the end of the Seven Years War, it really wasn’t sure what to do with it.  Most of the territory was inhabited by Indian tribes, with very few colonists from any European power.  Almost all the colonists that were there were French.  Spain mostly ignored the colony, leaving many French officials in power for years, even after it took ownership.  

Thomas Pinckney
New Orleans was the one town of any significant size in the territory.  When the first Spanish commander, Alejandro O’Reilly came in 1769, a census revealed a population of about 3200.  About 40% of those were African slaves.  The remainder were primarily French speaking colonists.  The New Orleans population was about one-third of the entire non-Indian population in all of Louisiana.

O’Reilly had come to crush a rebellion against Spanish rule.  Spain, however, was not interested in displacing the French-speaking colonists.  It had no one who really wanted to settle there.  Instead, the French population and the Spanish government reached an accommodation, much like the French colonists in Quebec did with their new British leaders.

After Spain joined the war with Britain in 1779, Louisiana became vulnerable to attack, and also useful as a staging area for Spanish offensives into British territory along the Gulf Coast.  Bernardo de Gálvez took command there and pushed Spanish control as far east as Pensacola. Gálvez also encouraged more Spanish immigrants to move to Louisiana, pushing many people from the Canary Islands to move there.

When the Revolution ended, Spain found its interests in direct conflict with those of the United States.  Spain retook control of East and West Florida, which it had held until the end the Seven Years War, then received back when Britain ceded it at the end of the Revolutionary War.  This resulted in Spanish borders pushing up against US borders in Georgia.  

America’s peace treaty with Britain also gave the US control of all lands east of the Mississippi River, meaning that the US bordered directly against Spanish Louisiana along a more than 2000 mile border. 

Colonization and Trade

Spain’s concern was that the US was growing in power and in size, and aggressively expanding its population westward into new territories.  It was only a matter of time before US growth would threaten control of Spanish territories.

Spain needed a larger population to counter this American pressure.  After the Revolution, officials encouraged a new wave of immigrants.  In 1785 it was the Acadians.

Recall that the Acadians were French colonists who had lived in what is today called Nova Scotia in Canada.  When Britain took control of that region at the beginning of the Seven Years War, it expelled the Acadians.  Some of them moved to Louisiana at that time.  A great many others moved to French Guyana or the Falkland Islands.  Some moved back to France, settling in Poitou.  These refugees were generally unhappy, so when Louisiana welcomed them, more than 1500 Acadians moved there.

Moving French colonists into this former French colony may have created concerns that France might someday reclaim the colony.  But at the time. Spanish officials were more concerned about the American threat.  Having fellow Catholics as colonists was better than uncontrolled land that might get snatched up by American frontiersmen.

By this time Galvez had moved on to other commands, becoming governor of Cuba for a time and then to serve as Viceroy of New Spain, what is today Mexico and most of the American Southwest.  Esteban Miró took over in Louisiana, but he asked to return to Spain in 1791.  He was succeeded by the Baron de Carondelet.

Governor Carondelet continued the efforts to attract more colonists.  In the era of the French Revolution, Carondelet invited French royalists to find refuge in Louisiana.  These invitations came with generous land grants, and even paid for transportation costs and basic supplies to help them get started.  One agreement granted every family 400 acres plus a cash bonus of one hundred pesos.  Invitations went out to all Europeans, particularly Catholics.  Flemish, German, and Italian immigrants took up these offers.

Spain wanted to keep the Americans away.  This is why they kept the Mississippi River closed to American commercial traffic.  American frontier communities had no other feasible way to get their products to market.  By shutting down the option of the Mississippi River, Spanish authorities hoped to discourage western expansion in America and therefore slow down the eventual border disputes that would inevitably arise.

New Orleans continued to grow at a rapid rate.  In 1788, however, a fire swept through New Orleans destroying virtually every building in the town.  The fire also destroyed all of the food, meaning the population was homeless and starving.  Governor Miro, dropped his orders to block American commerce.  He sent out word that trade was welcome from American shipping, both from the east coast and down the Mississippi.  He pardoned those currently in prison for illegally bringing American products to town, and sent them off trying to request that they bring more.

By 1794, the city had recovered, when another fire struck.  This one took out only around 15%-20% of the city since many of the buildings had been rebuilt with brick or stone instead of wood.  Still, the fire’s devastation created more need for American trade.

Governor Carondelet also installed the city’s first street lighting, added night watchmen for security, and divided the city into four wards that were used to organize police and fire departments.

New Orleans came to accept that it needed more trade to survive and thrive.  Even after opening free trade to all French colonies, New Orleans was still suffering.  As much as officials wanted to discourage American growth by blocking trade with them, they eventually determined that they could not survive without it.

Officials mostly tried to control this with tariffs for any vessels using the Mississippi River.  Spain controlled both banks of the Mississippi below the Ohio River and imposed a fee on any boats or rafts carrying cargo.  These fees could be up to 25% of the cargo’s value. Attempts to evade these tariffs could result in fines, jail, and confiscation of all cargo.

I should also mention that King Charles III of Spain died in 1788, leading to the reign of his son, Charles IV.  The younger Charles was not as active in leading Spain as was his father, and did not demand such a confrontational policy against America.  However, he mostly left his policies up to his ministers, particularly relying on Foreign Minister Manuel de Godoy for matters involving America.

James Wilkinson

Spain liked having the benefits of trade with frontier settlements along the Mississippi.  What they did not like was the fact that these settlements represented US expansion and a long term threat to Spanish control of Louisiana.  To break this threat while keeping the trade benefits, Spain embarked on a plan to break off the western states from the eastern states so that these western areas would become dependent on Spain. 

The key to their plan was an American, James Wilkinson.  I’ve talked about Wilkinson’s history in past episodes.  He was an up and coming Continental officer in the Revolutionary War.  By 1777, he was a 20 year old colonel, breveted as a brigadier general.  But his role as an aide to Horatio Gates came to an end when his gossip revealed the Conway Cabal.  Later, Congress appointed him clothier general, but his poor performance forced his resignation from that role in 1781.

Wilkinson briefly served as a general in the Pennsylvania militia, but then moved to Kentucky after the war.  He played an active role in separating Kentucky from Virginia, and also was a leading voice against ratifying the US Constitution.

Before the Constitutional Convention completed its work, and the Confederation Congress was falling apart, America’s future looked bleak.  Over 1785 and 1786, John Jay as the Confederation’s secretary for foreign affairs, tentatively agreed to a treaty with Spain that would have prevented American use of the Mississippi River for 25 years.  

Spain was demanding this concession for the same reason that the US frontier hated it.  Blocking use of the river would kill western settlements.  Jay seemed willing to sell out western interests in exchange for benefits that would help eastern merchants.  Ultimately, the US refused to ratify any treaty at that time, but the ill feelings of westerners remained raw.

It was in this environment that Wilkinson travelled to New Orleans in 1787 to meet with Governor Miró.  He offered his services as a Spanish agent, and took a secret oath of allegiance to the King of Spain.  Wilkinson encouraged Spain to deny American frontier towns access to the Mississippi River, believing that this would eventually force Kentucky to abandon the US and join with Spain.  

He arranged for special exceptions for himself and some of his friends to use the Mississippi, essentially giving himself a trade monopoly on the river that would enrich him.  On top of that, he received pay from Spain and negotiated for lifetime pensions for himself and others who would help bring Kentucky under Spanish influence.  Spain authorized a $200,000 bribe fund to encourage the leaders of Kentucky to separate from the Union and form an alliance with Spain.

In addition to enriching himself, Wilkinson envisioned himself as the leader of a new buffer country between the US and Louisiana, controlling what is today the states of Kentucky, Tennessee, Alabama, and Mississippi.

After Kentucky ratified the Constitution, Spain largely gave up on the idea that this would happen anytime soon, but still kept Wilkinson on the Spanish payroll as Agent 13.  Wilkinson would go on to play important roles in suppressing the Whiskey Rebellion and Indian resistance in Ohio, all while remaining a Spanish agent. While some Americans suspected Wilkinson’s duplicity, he remained a senior officer in the US Army.

Pinckney Treaty

In 1795, Spain finally decided it needed a treaty with the US.  Spanish minister Godoy sent word that they would like to discuss the matter.

Thomas Pickney, the US ambassador to Britain ended up being tasked with the negotiations..  Pinckney came from a prominent South Carolina family. His mother, Eliza Lucas Pickney introduced indigo as a cash crop in South Carolina.  His father moved the family back to England when he was three, so Thomas grew up there.  After studying law at Oxford and Middle Temple, he returned to America in 1774, just before the war began.  He received a commission as a captain in the Continental Army and served as an aide-de-camp to Horatio Gates.  He was captured at Camden and spent more than a year on parole.  After being exchanged, he fought under Lafayette in Virginia.

Pickney got elected Governor of South Carolina in 1787.  In 1792, he accepted an appointment from President Washington to serve as ambassador to Britain.  During the disputes with Britain, Pinckney was unable to reach any agreement. That was when Washington sent Chief Justice John Jay to negotiate with British leaders.  Pinckney assisted Jay with those negotiations.

It was the results of these negotiations, the Jay Treaty, that finally got Spain’s attention.  To Spain, the Jay Treaty marked the establishment of a new Anglo-American alliance that would probably work to Spain’s detriment.  Officials even feared that there might be secret articles in that treaty that agreed to a joint British and American invasion of Spanish colonies in America.

Following word of the Jay Treaty, Spain saw itself in a difficult situation.  Spain had joined Britain in the war with Revolutionary France in 1793.  Spain suspected that France would be weak and disorganized after the execution of King Louis.  France was also at war with Prussia, the Netherlands, several German states, and had just gone to war with Britain.

Spain looked on the situation as would any European power at the time; their neighbor was weak, so this was a good time to attack and take some territory from them.  Spain joined the coalition against Revolutionary France and went to war.  The war did not go as Spain had hoped, resulting in the ministry wanting to bail and end the war with France.

During treaty negotiations with France, Spain wanted the return of certain border regions that the French Army had taken from them.  In return, French negotiators demanded the return of Louisiana, but Spain refused.  Instead, Spain gave France its claims on Santo Domingo, where French Haiti shared the island with Spanish Dominica in the West Indies. France would now control the entire island. 

The negotiations, which took place in Basel, Switzerland, not only ended the war between Spain and France. Prussia and Hesse-Kassel also reached agreements with France.  This left Britain without its major allies in its war with France.  These peace agreements angered Britain, which began attacking Spanish shipping.  The result was that Spain was in an even weaker position, especially if America was allying itself with Britain.  So Spanish officials were motivated to get on America’s good side by signing an agreeable treaty.

Even before the Basel treaty between Spain and France was signed, Spanish minister Godoy invited Secretary of State Pinckney to Madrid to begin talks.  Pinckney arrived in Spain at the end of June, 1795, just days before Spain completed its peace treaty with France.

Godoy hoped to join the US into a triple alliance with France and Spain to fight against Britain.  Pickney would not agree to anything like that.  President Washington’s policy was to remain neutral and to stay out of all European alliances that might drag the US into war.

Pinckney wanted a treaty that would establish the borders between Spain and the US, and which would guarantee free US navigation of the Mississippi River.  For the first month or so of negotiations, neither side seemed willing to cede much.

One of the big disputes, other than use of the Mississippi River, was over the southern US border.  East of the Mississippi, Spain controlled all the land along the gulf coast.  Spain had established military outposts as far north as Vicksburg, on the Mississippi River, about 170 miles north of New Orleans.  This area between the Mississippi and Chattahoochee Rivers covers about one third of the modern day states of Mississippi and Alabama.  Spain claimed that all of this was Spanish territory.  Britain had made it part of East and West Florida, which it had ceded to Spain after the Revolution.

US negotiators countered that Britain had set the southern border at 31 degrees parallel in its peace treaty with the US.  This was about 100 miles south of the border that Spain wanted.  At first, neither side seemed willing to budge on this issue.

Once the Treaty of Basel became public in August though, everything seemed to change. Godoy was ready to agree to just about any treaty with the US, just hoping to keep them from acting in an alliance with Britain.

Spain gave in on just about everything.  It set the east-west border in the center of the Mississippi River and guaranteed free navigation of the river out to the Gulf of Mexico.  The only limitation would be that free navigation would only be for Americans and Spanish.  Third parties were still prohibited from using the river.

Spain accepted the US southern border at 31 degrees parallel.  It abandoned all claims north of that line and agreed to evacuate all of its forts in the territory within six months after treaty ratification.

Finally, Spain dropped its demands for any sort of military alliance with the US.  The US would not be under any obligation to protect any Spanish land claims against third parties, not even in America.

There were a few other minor disputes to be worked out, such as the requirement that US merchants pay government fees for goods stored in New Orleans.  The two parties agreed that there would be no such fees for at least three years.  There was also a dispute over US merchant ships that Spain had already seized.  The parties agreed on the establishment of a commission to hear those claims.

US Reaction

The two parties signed the treaty at the end of October, 1795 at San Lorenzo el Real, the summer residence of the Spanish Court.  

Some Spanish officials were aghast at the terms that Spain had given away.  Louisiana Governor Carondelet was convinced the treaty would never be finalized when the king saw the terms to which Godoy had agreed.  Spanish colonial leaders saw the treaty as a complete sellout of everything they had worked for, for years.  Despite these feelings, King Carlos approved the treaty.

In the US, the feeling was quite different.  News of the treaty reached Philadelphia in January, 1796 and a copy arrived a few weeks later.  The treaty gave the US everything it wanted, especially the long sought-after use of the Mississippi River, and required almost no concessions.  It mostly sought the good will of America, which was happily given. 

There was virtually no opposition or concerns expressed about the terms. The Senate unanimously ratified the treaty in March, 1796. The final formal ratifications were exchanged in Spain on April 25.  Pinckney became the toast of America.

Next Week: The Yazoo Land Scandal in western Georgia

 - - -

Next Episode 393 Yazoo Land Scandal (coming soon)

Previous Episode 391 Washington Admin Scandals and Resignations

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Further Reading

Websites

Treaty of San Lorenzo/ Pinckney’s Treaty, 1795 https://history.state.gov/milestones/1784-1800/pickney-treaty

Pinckney Treaty 1795 - Transcript https://www.emersonkent.com/historic_documents/pinckney_treaty_1795_transcript.htm

Whitaker, Arthur Preston. “New Light on the Treaty of San Lorenzo: An Essay in Historical Criticism.” The Mississippi Valley Historical Review, vol. 15, no. 4, 1929, pp. 435–54. JSTOR, https://doi.org/10.2307/1897880

Young, Raymond A. “Pinckney’s Treaty-A New Perspective.” The Hispanic American Historical Review, vol. 43, no. 4, 1963, pp. 526–35. JSTOR, https://doi.org/10.2307/2509900

Free eBooks
(from archive.org unless noted)

Bemis, Samuel F. Pinckney’s Treaty: A Study of America’s Advantage from Europe’s Distress, Baltimore: Johns Hopkins Press, 1926. 

De Pedro, Jose The Spanish in New Orleans and Louisiana, Gretna: Pelican Publishing, 2000. (borrow only) 

Din, Gilbert C. (ed) The Spanish Presence in Louisiana 1763-1803, Center for Louisiana Studies, 1996 (borrow only). 

Gayarre, Charles History of Louisiana: The Spanish Domination, New York: Redfield, 1854. 

Holmes, Jack D.L. A Guide to Spanish Louisiana, [self-published] 1970 (borrow only). 

Monette, John W. History of the discovery and settlement of the valley of the Mississippi, by the three great European powers, Spain, France, and Great Britain, and the subsequent occupation, settlement, and extension of civil government by the United States, until the year 1846. New York: Harper & Brothers, 1848. 

Pickney, Charles C. The Life of General Thomas Pinckney, Boston: Houghton Mifflin and Co. 1895. 

Robertson, James A. Louisiana Under the Rule of Spain, France and the United States 1785-1807, Vol. 2, Cleveland: Arthur H. Clark Co. 1911. 

Books Worth Buying
(links to Amazon.com unless otherwise noted)*

Elkins, Stanley M. and Eric McKitrick, The Age of Federalism: The Early American Republic, 1788–1800, Oxford Univ. Press, 1993 (borrow on archive.org). 

Linklater, Andro An Artist in Treason: The  Extraordinary Double Life of General James Wilkinson, Walker Publishing, 2009.

Roderiguez, John E. Spanish New Orleans: An Imperial City on the American Periphery, 1766–1803, LSU Press, 2021. 

 * As an Amazon Associate I earn from qualifying purchases.

Sunday, June 28, 2026

AR-SP51 The Banker Who Made America, with Richard Vague

Our special guest at our June 2026 roundtable was Richard Vague, author of The Banker Who Made America, a biography of Thomas Willing. Vague, a veteran of the financial services sector and former Secretary of Banking and Securities for Pennsylvania, discovered Willing while researching the history of banking leverage ratios. He found that Willing was not only the first president of the first two major banks in the United States but also the senior partner of the well-known financier Robert Morris. Vague describes Willing as a "deep cut" of the American Revolution whose legacy was obscured because he voted against the Declaration of Independence.

Early Life and Business Success

Thomas Willing’s father, Charles Willing, immigrated from Bristol, England, and established a merchant trading firm in Philadelphia that became the largest in the city. When Charles died unexpectedly, Thomas, then only 23 years old, took over the business. Despite his youth, Thomas displayed a mix of boldness and conservatism, immediately purchasing another ship to expand the firm.

The firm’s success was largely driven by the partnership between Willing and Robert Morris, whom Thomas promoted to equal partner after Morris served as a teenage apprentice. Vague characterizes their relationship as a perfect balance: Willing was the conservative anchor, while Morris was the aggressive "Wheeler-dealer". Together, they grew the business 70-fold during Willing’s tenure.

Beyond commerce, Willing was a central figure in Philadelphia’s civic life. He served as Mayor of Philadelphia, an associate Supreme Court Justice in Pennsylvania, and a member of the Pennsylvania Assembly. He was a leader in the early protests against British overreach, drafting and serving as the principal signatory for the merchant protest against the Stamp Act and the Townshend Acts.

The Revolution and the 1776 "Coup"

One of the most complex aspects of Willing’s life was his opposition to independence in July 1776. Vague explains this through the lens of social history and economic stability. Philadelphia’s elite, including Willing, were often wealthy, Anglican, and English-leaning merchants who had benefited from unprecedented economic growth within the British Empire. They believed the conflict with Parliament could be resolved through negotiation.

In contrast, a massive influx of Scotch-Irish Presbyterians and other groups had tripled Pennsylvania's population; these newcomers were often farmers who felt unrepresented and unprotected by the Philadelphia elite. This internal tension led to what Vague and the host describe as a "coup d'etat" in Pennsylvania’s government, where radical elements overthrew the conservative assembly to push for independence. While Morris and others avoided the final vote to allow a unanimous declaration, Willing showed up and voted "no," a move that significantly damaged his historical reputation.

Wartime Conduct and "Hedging Bets"

During the British occupation of Philadelphia, Willing chose to remain in the city. Vague suggests this was a practical move to keep his business alive and to continue supplying the revolutionary army. However, this led to accusations of loyalist sympathies. Willing navigated a precarious middle ground: he refused to sign a loyalty oath to King George III when pressured by General Howe, but he also hesitated to sign an oath to the new United States government.

We discussed the possibility that Willing and Morris may have been hedging their bets as a business strategy, ensuring that at least one partner remained in good standing regardless of which side won the war. Despite the "taint" of his 1776 vote and his conduct during the occupation, Willing’s financial expertise made him indispensable to the struggling Continental Congress.

The Father of American Banking

Willing’s most significant contribution was the establishment of the Bank of North America in 1781, the first true bank in the United States. At the time, the revolutionary cause was nearly bankrupt; the Continental currency had become worthless, and the budget for the year of the victory at Yorktown had dwindled to just $2.6 million.

Willing and Morris effectively funded the government using their personal credit. Morris issued personal notes, colloquially known as "Short Bobs" and "Long Bobs," which merchants accepted when they would not take government paper. As president of the Bank of North America, Willing maintained a reputation for impeccable prudence. He famously denied a loan request from his own partner, Robert Morris, demonstrating that the bank was an independent institution rather than a personal "slush fund".

Vague argues that Willing established the model for banking in America. When the Bank of New York and the Massachusetts Bank were founded, their directors traveled to Philadelphia to learn the trade from Willing. He described the early days of American banking as a "pathless wilderness".

The First Bank of the United States and Political Power

Following the war, Willing’s influence grew as he became the first president of the Bank of the United States (BUS). This bank had a capitalization of $10 million, which was triple or quadruple the lending capacity of all other American banks combined. This massive concentration of power was the primary reason figures like Thomas Jefferson feared the institution; Willing held the "implicit power" to influence votes by potentially denying loans to political opponents.

Willing remained fiercely independent of political pressure. In 1796, he even forced the federal government to make an early repayment on a loan, a move that Vague notes would be "unbelievable" today. Despite political differences, Willing maintained a "fundamental graciousness". When Jefferson was vice president and socially shunned in Federalist-dominated Philadelphia, the Willing and Bingham families were among the few who continued to welcome him. This pragmatism allowed Willing to develop a productive working relationship with Albert Gallatin, Jefferson’s Secretary of the Treasury, who eventually became a "huge fan" of the bank's power.

Relationships with the Founders

The recording highlights Willing’s connections to other legendary figures:

  • Alexander Hamilton: Hamilton viewed Willing as a mentor. Interestingly, as a 16-year-old clerk in St. Croix, Hamilton had actually conducted business correspondence with Willing’s firm in Philadelphia.
  • George Washington: Washington was extremely close to both Morris and Willing, even staying in a house owned by Willing in Philadelphia after the Battle of Yorktown.
  • William Bingham: Bingham, a "privateer" who amassed a fortune in the Caribbean during the war, married Willing’s daughter. Vague credits Bingham with potentially conceiving the idea for the Louisiana Purchase.
  • The Baring Family: Willing’s daughter’s marriage linked him to Francis Baring, the principal merchant banker in London. This connection was vital for the Louisiana Purchase, which was financed by the Barings and Willing’s Bank of the United States, effectively funding Napoleon even as he prepared for war with Britain.

Legacy and the Fate of Robert Morris

The partnership between Willing and Morris eventually fractured over land speculation. While Willing remained conservative, owning about 100,000 acres, Morris leveraged himself to the "hilt," buying millions of acres of western land. When the market collapsed, Morris ended up in debtor's prison. In a "poignant moment," George Washington visited Morris in prison to have dinner and relive the moments of the Revolution they had "pulled out" together.

Vague concludes that Willing’s legacy is the transformation of the American economy. Under his guidance, the U.S. moved from a "pathless wilderness" to an economy with over 100 banks by 1820, eventually surpassing Britain as the world’s largest economy. Living into his 90s, Thomas Willing survived most of his contemporaries, witnessing the full maturation of the financial system he helped build. Vague summarizes him as the true "Father of American Banking".

* * *

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Sunday, June 21, 2026

ARP391 Washington Admin Scandals and Resignations

George Washington had made no secret of the fact that he really didn’t want to be president.  National leaders had to convince and cajole him into doing it, telling him that without his leadership, the Constitution would not survive and, without the Constitution, the United States would fall apart.  Washington served for four years, expecting to get the new nation off to a good start, then finally retire to his plantation in Virginia.  Once again, national leaders begged him to remain for a second term.

I think Washington really regretted his decision to remain for a second term.  Some of his most controversial issues arose in that term, including the Citizen Genet Affair, the Whiskey Rebellion, the Jay Treaty controversies.  Also, by half-way through his second term, his cabinet members all abandoned him.

Postmaster General

Resignations were normal in government.  Postmaster General John Osgood had left during the first term.  The Postmaster General was not a part of the cabinet at the time and really didn’t have any role in policy making aside from running the post office.  Osgood, originally from Massachusetts, had been living in New York, working first under the Confederation Congress then under President Washington.  When the capital moved from New York to Philadelphia in 1791, Osgood did not want to move and resigned instead.

Edmund Randolph
Washington’s second postmaster, Timothy Pickering, deserves a little more background because he will play larger role going forward.  He had been adjutant general and quartermaster general of the Continental Army during the Revolution.   Although Pickering was born and raised in Massachusetts, he moved to the Wyoming Valley in Pennsylvania after the war.  

There, he got caught up in the Yankee-Pennamite Wars, which I discussed a bit in earlier episodes during the Revolutionary War.  This ongoing fight was between Yankees from Connecticut and Pennsylvanians who both claimed control of the Wyoming Valley. The Pennsylvania State Assembly appointed Pickering as an official in the newly-formed Luzerne County, tasked with mediating conflicting land claims between settlers.

It was in this capacity that some Connecticut settlers kidnapped Pickering in 1788, trying to force him to recognize their land claims.  Pickering refused to negotiate with his kidnappers and was dragged through the forest while Pennsylvania militia were trying to track them down.  After nearly three weeks, his captors released him.  

Pickering spent the next few years taking time away from his farm to help negotiate some of the treaties with Indians regarding control of land in western Pennsylvania and the Ohio Territory.  President Washington offered him several jobs, including Quartermaster General of the new army, but Pickering declined.  He finally accepted the role of Postmaster General in 1791. 

Pickering would serve as postmaster for about three and a half years before moving on to become Secretary of War.  We'll get into the reasons reasons for that shortly. Joseph Habersham succeeded him in the role, and continued in that role until the Jefferson Administration.

Habersham was from Georgia. He had served as a colonel in the Continental Army, but resigned after serving as Lachlan McIntosh’s second in the 1777 duel that killed Button Gwinnett, a signer of the Declaration of Independence.

After the war, Habersham remained active in Georgia politics where he served as Speaker of the Georgia House.  He was serving as mayor of Savannah when Washington appointed him Postmaster General.  

Secretary of State

The first cabinet member to resign was Secretary of State Thomas Jefferson.  When Washington first appointed Jefferson the two men seemed to get along well.  As Washington’s first term came to an end, Jefferson was among those who begged Washington to accept a second term.  Washington, in turn, asked that Jefferson stay on as Secretary of State.

Jefferson and Hamilton regularly found themselves on opposite sides of many issues.  The Bank of the United States was a big one.  But what really divided the two men was foreign policy.  Hamilton wanted a good economic relationship with Britain, while Jefferson wanted closer ties to France.  

Washington’s effort to form consensus on these divergent views was to begin having cabinet meetings where they could all sit around a table together, hash out their differences, and reach an agreeable solution.  Jefferson hated these meetings. He referred to his conflicts with Hamilton there as being “daily pitted in the cabinet like two cocks.”  This was a reference to cock fighting, a popular pastime where gamblers would throw two chickens into an arena, known as a cock pit, where the two animals would try to peck each other to death.

Jefferson came to believe that Hamilton had a growing influence over Washington, who seemed to be siding more and more with policies that favored Britain abroad and rich bankers and investors domestically.  To counter this, Jefferson began subsidizing Philip Freneau, who published the National Gazette, which regularly attacked Washington.  When the paper published a cartoon showing Washington being sent to the guillotine, Washington lost his temper and railed against the paper that Jefferson continued to support.

Finally, at the end of 1793, less than a year into Washington’s second term Jefferson had had enough.  He submitted his resignation.  Washington said he accepted it with regret and felt deserted by Jefferson.  

After returning to private life, Jefferson continued to attack Washington as becoming too senile and becoming the puppet of Hamilton and the Federalists.  In 1796, Jefferson wrote a letter to a friend where he referred to former revolutionary heroes as “apostates” who had been “shorn by the harlot England”.  This letter eventually became public and Washington took personal offense at this, wrote Jefferson a letter bluntly expressing his offense, and the men ceased all communication. They would never reconcile.

Attorney General Edmond Randolph took over as Secretary of State following Jefferson’s departure.  Randolph resigned after about a year and a half, for reasons we’ll get into in a moment.  Timothy Pickering completed the remainder of Washington’s term as Secretary of State. 

Secretary of War

The next secretary to depart was Henry Knox.  During the Revolutionary War, the 25 year old Boston bookseller became one of General Washington’s most reliable general officers.  After the war, Knox moved to a capacity, serving in charge of the army under the Confederation Congress.  Washington happily asked Knox to continue in that role when he became President.

Washington tended to regard most of his cabinet secretaries as advisors.  His relationship with Knox was a little different.  Perhaps it was because Washington felt most knowledgeable personally in military matters, he tended to treat Knox more like a staff assistant than an advisor.  He would give Knox instructions rather than ask his opinion on many matters of military policy.

At the same time though, Knox held Washington’s trust and confidence.  Hamilton once remarked near the beginning of President Washington’s first term that Washington spoke with Knox the way a man does with his wife.  Knox generally aligned himself with Hamilton as a Federalist and seemed to have a solid relationship with the president.

That relationship began to fall apart in 1794. The incident that caused the rift came during the Whiskey Rebellion. 

After the Revolutionary War ended, Knox lived extravagantly.  He rented a downtown mansion in Philadelphia where he lived with Lucy and his children.  Lucy also enjoyed gambling and loved to play cards with Philadelphia's elite.  The salary of a government bureaucrat simply did not support this lifestyle.  So Knox engaged in land speculation to supplement his wealth.

Knox borrowed heavily to make investments in the Ohio Company.  He also partnered with William Duer to purchase two million acres of land in Maine.  During this time, Knox built a 19 room mansion in Thomaston, Maine, which he named Montpelier.

I mentioned Duer back in Episode 379 when his speculation led to the financial panic of 1792 and his bankruptcy.  Knox was hit hard by those events and was struggling on the edge of bankruptcy himself. 

By the summer of 1794 Knox’s financial situation had reached a crisis point.  Knox had to request six week’s leave from his position so that he could travel to Maine and settle some of the financial problems related to his property there.

The timing could not have been worse.  This was at the height of the Whiskey Rebellion and just around the time that Washington issued his call to raise a militia army to crush that rebellion.  This was one of the most critical times for the Secretary of War.  Washington reluctantly approved the leave but he was not happy about it.  When Knox ended up being gone for, not for six weeks but for more than two months, Washington grew even angrier.

Hamilton happily filled in for Knox, accompanying Washington to western Pennsylvania.  But while he was going to war, the president wanted his secretary of war by his side, not the treasury secretary.  When Knox returned to Philadelphia in October, he sent a note to Washington, who was still out in the field with the army, whether he wanted Knox to join him.  Washington sent a curt response, essentially saying it was too late to be useful.  Washington was already on his way back to Philadelphia by this time.

Two months later, at the end of December, Knox submitted his resignation. Knox cited financial reasons for his resignation.  Washington, still annoyed by Knox’s absence during the Whiskey Rebellion, accepted the resignation, in a way which witnesses called frosty and overly formal. Knox returned to Maine, where he sold much of his lands to stay out of debtor’s prison.  He eventually resolved his finances, but his public life was at an end.  Despite Washington's coolness toward Knox at the end of his term, the to men remained close friends and continued to correspond with each other until Washington's passing.

Timothy Pickering replaced Knox as Secretary of War, serving in that role for less than a year before moving on to Secretary of State in 1796. James McHenry replaced Pickering at the War Department.  McHenry was a surgeon from Maryland.  He served as a Continental officer during the Revolution.  After the war, he served in the Maryland Senate and as a delegate to the Continental Congress.  McHenry would remain in that position for the rest of Washington's term and into Adams' term.

Secretary of Treasury

Alexander Hamilton also left for money reasons.  Hamilton had been the youngest member of the cabinet, and arguably the most impactful on the new government.  He had served as an aid to Washington for most of the Revolution. Washington had come to admire and respect his abilities, especially in matters of finance.

During his tenure as Treasury Secretary, Hamilton became the de facto leader of the Federalists and also a lightning rod for abuse from the Democratic Republicans.  The main cause of criticism was that Hamilton was imposing a British style economy, where much of the nation’s wealth went to speculators and financiers who did not really work for a living.  Opponents believed that this would eventually result in a form of aristocracy, similar to the system in Britain, which they hated.

At the beginning of Washington’s second term, William Branch Giles, a Congressman from Virginia introduced a resolution to investigate Hamilton.  Giles was a young man, only 27 years old when first elected to Congress.  Giles was the first Representative to win a special election in 1790, replacing Theodorick Bland, who had died in office.

Giles aligned himself with the Jefferson-Madison faction in Congress. This faction not only opposed many of Hamilton’s economic plans, they also suspected that there was an element of corruption.  Hamilton might be enriching himself or his friends in these transactions, at the expense of the treasury.

At the end of December, 1792, Congress demanded a full accounting of some loans that Hamilton had taken in order to repay other loans that had a higher interest rate.  Hamilton submitted a report to congress a week later, on January 3, 1793, explaining the transactions.  That was not good enough for Giles.  A few weeks later, he introduced a series of resolutions, demanding much more details including the names of people who profited from the transactions.  

These resolutions essentially accused Hamilton of financial misconduct.  Specifically, private investors in the Bank of the United States would benefit from these transactions.  The resolutions censored Hamilton’s behavior and attacked his honesty.

Giles did not come up with this on his own.  Jefferson had worked secretly with Giles in developing the resolutions.  Jefferson was still a member of Washington’s cabinet at this time.  Jefferson was open about his opposition. He spoke with Washington about his concerns that Hamilton was hiding financial problems with the bank with these transactions.  But he kept his cooperation with Giles a secret.

In the end, Congress refused to pass the resolutions.  Their attacks on Hamilton were unfounded.  Jefferson probably knew this from the beginning, but figured that some mud from the discussion would stick to Hamilton, even if he was ultimately exonerated. 

Hamilton would remain as Treasury Secretary for several more years.  But, like Henry Knox, Hamilton’s lifestyle was not possible on his salary as a member of the Cabinet.  

Ironically, the attacks by Giles and the other Democratic Republicans delayed Hamilton’s departure. He would have resigned sooner than he did, but stayed on until he was absolved of all the accusations in the Giles Resolutions.  Had he quit before, many would have taken that as an admission of guilt.

When Hamilton finally resigned on January 31, 1795, he was nearly broke.  He returned to private practice as an attorney in New York in order to rebuild his wealth.

Following Hamilton’s departure, Oliver Wolcott took over at Treasury.  Wolcott was from Connecticut.  He began working with the Treasury Department under Hamilton as soon as it was formed.  He first worked as an auditor, then serving as Comptroller.  When he replaced Hamilton as Secretary, little changed. Wolcott greatly admired Hamilton and even kept up a vigorous correspondence with Hamilton when Hamilton returned to New York.  Hamilton’s critics complained that Hamilton was still running the Treasury Department and influencing President Washington, just using Wolcott as the conduit for his policies and ideas.

Attorney General

Attorney General Edmund Randolph was the last to go.  He had served as the President’s legal advisor for many years, even before he became president.  Unlike other members of the cabinet, he was also able to take on other private legal clients to supplement his government salary. We saw last week when Randolph represented Chisholm in the case of Chisholm v. Georgia that led to the adoption of the 11th Amendment.

After Jefferson resigned as Secretary of State, Randolph moved over to State.  William Bradford took over as the new Attorney General.  Bradford was from Philadelphia.  He had served as attorney general of Pennsylvania and on the state Supreme Court before joining the administration.  Bradford seemed to be a man with a great legal future ahead of him.  He was still in his late 30s while serving as attorney general.  Sadly, he became ill and died during the summer of 1795.

Charles Lee next took over as Attorney General. This is not General Charles Lee from the Revolution.  This Charles Lee was the younger brother of Henry “Light-Horse Harry” Lee.  He was a capable attorney who had some experience in the Virginia legislature.  I suspect his being a part of the powerful Lee family contributed to Washington’s decision to appoint him.

Fauchet Scandal

Randolph’s final departure as Secretary of State came under a cloud of scandal involving French minister Jean Antoine Fauchet.  Recall that France had sent Fauchet in late 1793 to clean up the mess created by Citizen Genet that destroyed relations between France and the US.

During Fauchet’s first year in America the Whiskey Rebellion took center stage.  That same year, John Jay was in London negotiating a treaty with Britain that French officials worried would destroy the Franco-American alliance.

Fauchet tried to build relationships with top US officials, including Edmund Randolph.  In late October, Fauchet sent a secret dispatch, known as dispatch number 10, to officials in Paris.  His report attacks the Washington administration on a number of issues  It describes the Washington administration as decrepit.  It mentions Randolph as a “confidant” and reports Randolph’s concerns that federalist policies supported by Washington are giving rise to what he calls a “financiering class” that wants to restore monarchy in America and enslave American trade to England.

He also reports that Randolph suggests that for a few thousand dollars, he can influence the outcome of the Whiskey Rebellion in a way that would benefit France.  The dispatch is a cynical analysis of American politics that suggests a few bribes could influence government policy and says explicitly that all of these patriots have their price.

Fauchet put the dispatch aboard a ship headed to Paris.  A British warship intercepted it, and sent the letter to London.  Officials there forwarded the dispatch to British Ambassador George Hammond in Philadelphia.  In late July, Hammond shared the document with Treasury Secretary Wolcott, who, in turn, shared it with Secretary of War Pickering.  At the time, Washington was home at Mount Vernon.

Pickering and Wolcott viewed the dispatch as evidence that Randolph has asked the French Ambassador for a bribe, and is also committing treason by undercutting American policy in favor of France.

All of these events are unfolding in the period just after the Senate has ratified the Jay Treaty, the public is just learning about the Treaty’s terms, and President Washington is debating whether to sign it.

Washington returns to Philadelphia to deal with the matter.  After reading the dispatch and discussing it with Wolcott and Pickering, the president determines that Randolph is essentially a French agent.  At the time, Randolph was the only cabinet member opposing the Jay Treaty.  

After Washington returned to Philadelphia in August, he decided to end this dithering and sign the Jay treaty right away, before the scandal over Randolph broke.  He ordered Randolph to inform Minister Hammond and to send a signed copy of the treaty to London.

Once that was done, Washington called Randolph into his office.  There, with Wolcott and Pickering present, Washington showed the dispatch to Randolph and demanded an answer.  Randolph read the document as best he could.  It was in French.  After a short discussion, Randolph was asked to leave the room while Washington discussed the matter with the others.  When Randolph returned, Washington demanded a written explanation of the allegations in the dispatch.  Since these involved some matters that took place more than a year ago, Randolph said he wanted to consult with other records before writing his version of events.

Randolph believed that Washington was convinced that he was guilty of something, maybe treason, maybe just disloyalty, but it was clear that the President did not believe there was an innocent explanation for the allegations made in the dispatch.  Instead of writing an explanation, Randolph returned home and drafted his letter of resignation.

Randolph’s departure marked the last of the men who made up Washington’s original cabinet.

Next Week: A treaty with Spain changes US borders and opens up the Mississippi River to America for the first time.

 - - -

Next Episode 392 The Treaty of San Lorenzo 

Previous Episode 390 The Eleventh Amendment

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Further Reading

Websites

George Washington Cabinet Members: https://www.mountvernon.org/library/digitalhistory/digital-encyclopedia/article/cabinet-members

Timothy Pickering Papers: https://www.masshist.org/collection-guides/view/fa0256

Jefferson and Hamilton: Political Rivals in Washington's Cabinet https://www.mountvernon.org/george-washington/the-first-president/washingtons-presidential-cabinet/jefferson-and-hamilton-political-rivals

Jefferson and the Giles Resolutions https://founders.archives.gov/documents/Jefferson/01-25-02-0259-0001

“Introductory Note: Report on the Balance of All Unapplied Revenues at the End of the Year 1792 and on All Unapplied Monies Which May Have Been Obtained by the Several Loans Authorized by Law, [4 February 1793],” Founders Online, National Archives, https://founders.archives.gov/documents/Hamilton/01-13-02-0299-0001

Giles Resolutions: https://rationalwalk.com/the-giles-resolutions

Sheridan, Eugene R. “Thomas Jefferson and the Giles Resolutions.” The William and Mary Quarterly, vol. 49, no. 4, 1992, pp. 589–608. JSTOR, https://doi.org/10.2307/2947173 

Clifford, John Garry. “A Muddy Middle of the Road: The Politics of Edmund Randolph, 1790-1795.” The Virginia Magazine of History and Biography 80 (1972): 286-311. JSTOR http://www.jstor.org/stable/4247732 

Bonsteel Tachau, Mary K. “George Washington and the Reputation of Edmund Randolph.” The Journal of American History, vol. 73, no. 1, 1986, pp. 15–34. JSTOR, https://doi.org/10.2307/1903604

Translation [of a letter from] ... Joseph Fauchet, minister plenipotentiary of the French Republic near the United States, to Mr. Randolph, Secretary of State of the United States https://babel.hathitrust.org/cgi/pt?id=hvd.hxj4gf&seq=1

Free eBooks
(from archive.org unless noted)

Fauchett, Joseph A Translation of Citizen Fauchet's Political Dispatch, No. 10 , Philadelphia: T. Bradford, 179

Conway, Moncure Daniel. Omitted Chapters of History Disclosed in the Life and Papers of Edmund Randolph, New York: G.P. Putnam’s Sons, 1889. 

Randolph, Edmund A Vindication of Edmund Randolph, Richmond, Charles H. Winne, 1855. 

Books Worth Buying
(links to Amazon.com unless otherwise noted)*

Chernow, Ron Alexander Hamilton, Penguin Press, 2004. 

Chernow, Ron Washington, A Life, Penguin Press, 2010. 

Chervinsky, Lindsay M. The Cabinet: George Washington and the Creation of an American Institution, Belknap Press, 2020. 

Elkins, Stanley M. and Eric McKitrick, The Age of Federalism: The Early American Republic, 1788–1800, Oxford Univ. Press, 1993 (borrow on archive.org). 

Ellis, Joseph J. His Excellency. George Washington, Alfred A. Knopf, 2005. 

Heidler, David S. & Jeanne T. Washington's Circle: The Creation of the President, Random House, 2015. 

Leibiger, Stuart Founding Friendship George Washington, James Madison, and the Creation of the American Republic, Univ. of Virginia Press, 1999. 

Malone, Dumas Jefferson and the Ordeal of Liberty, Little Brown & Co. 1962 (borrow on archive.org).

Meacham, Jon Thomas Jefferson: The Art of Power, Random House, 2012

Miller, John C. Alexander Hamilton and the Growth of the New Nation (or Portrait in Paradox), Harper & Brothers, 1959 (borrow on archive.org

Nester, William The Hamiltonian Vision, 1789-1800, Potomac Books, 2012. 

Randall, Willard Sterne Thomas Jefferson: A Life, Henry Holt and Co. 1993.

Reardon, John J. Edmund Randolph: A Biography, Macmillan, 1975 (borrow on archive.org

Unger, Harlow G. "Mr. President": George Washington and the Making of the Nation's Highest Office, Da Capo Press, 2013.

Warren, Jack D. The Presidency of George Washington, Univ. of Va. Press, 1996 (borrow on archive.org).

Winik, Jay  The Great Upheaval: America and the Birth of the Modern World, 1788-1800, HarperCollins, 2007. 

 * As an Amazon Associate I earn from qualifying purchases.