$ 372] THE BILL OF RIGHTS 319 punishments. They further guarantee to citizens a right to trial by a jury of the neighborhood, in criminal accusations and in civil cases when the amount in dispute exceeds twenty dollars. The ninth and tenth amendments emphasize the idea that the Federal government is limited to those powers enumerated in the Constitution. 372. The Constitution made it the duty of Congress to provide a Supreme Court. The "original jurisdiction" of that Court was stated in the Constitution; but Congress was left at liberty to regulate the "appellate jurisdiction,” and to provide inferior courts, or not, at its discretion. A Judiciary Act of 1789 established a system of which the main features still remain.1 a. A Supreme Court (a Chief Justice and five Associate Justices) was created, to sit at the Capital.2 b. Two grades of inferior courts were established covering the entire Union. (1) There were thirteen District Courts, each with a resident judge. (2) These districts were grouped into three circuits, each with its Circuit Court intermediate between District Court and Supreme Court. At this time, there were no distinct Circuit Judges: each Circuit Court consisted of a District Judge and of two Justices of the Supreme Court "on circuit." c. Appeals to the Supreme Court were provided for, not only from inferior Federal courts, but also from any State court, in all cases where such a court had denied any right or power claimed under a Federal law or treaty or under the Constitution. This part of the law still makes the Federal judiciary the "final arbiter" between States and Nation (§ 352 a). The Constitution permitted such a law; but Congress might have given very narrow limits to the appellate power. This great law did extend that power so as to include every possible case of conflict between States and Nation. The establishment of the inferior Federal Courts (b above) also greatly magnified the authority of the Federal judiciary at the expense of State Courts, since it made Federal Courts much more accessible than if there had been only one court, fixed at Washington. 1 Cf. Appendix I, and references there, for the most important changes since. 2 The number of Associate Justices is now eight (1917). 373. On the other hand, the power of the Court was soon limited by an amendment to the Constitution. The first decision to draw public attention to the enormous powers of the Supreme Court was in the case of Chisholm v. Georgia, in 1793. Chisholm, a citizen of South Carolina, sued in the Supreme Court to recover a debt from the State of Georgia. The Constitution states that "the judicial power shall extend . . . to controversies between a State and citizens of another State." Georgia, however, claimed that this phrase meant only that a State could sue private citizens in the Federal Court, not that a State could itself be sued by private individuals. The words must be taken in the light of the State-sovereignty ideas of that era; and, beyond all doubt, this understanding of Georgia was the general understanding when the Constitution was ratified. In the ratifying conventions, fear had been sometimes expressed that this clause might enable a private citizen to sue "a sovereign State." In all such cases, the leading Federalists explained that such meaning was impossible. Madison, in the Virginia convention, declared the objection "without reason," because "it is not in the power of individuals to call any State into court." In the same debate, John Marshall (afterwards Chief Justice), in defending the clause, exclaimed: "I hope no gentleman will think that a state will be called at the bar of a Federal Court. It is not natural to suppose that the sovereign power should be dragged before a court. The intent is to enable States to recover elaims against individuals residing in other States." And Hamilton in the Federalist (No. 81) declared any other view "altogether forced and unaccountable," because "it is inherent in the nature of sovereignty not to be amenable to the suit of an individual without its own consent." Now, however, the Court, by a divided vote, assumed jurisdiction. Georgia refused to appear, and judgment went against her. Georgia thereupon threatened death "without benefit of clergy" to any Federal marshal who should attempt to collect the award. Civil war was imminent. Similar suits were pending in other States, and there was widespread alarm. The legislatures of Massachusetts, Connecticut, and Virginia called for a constitutional amendment, and passed vigorous resolutions denouncing the Court's § 373] THE ELEVENTH AMENDMENT 321 decision as "dangerous to the peace, safety, and independence of the several States." Then Congress by almost unanimous vote submitted to the people the Eleventh amendment, which reversed the decision of the Court and upheld Georgia's interpretation of the Constitution. EXERCISE. - Glance back over the chapter with special reference to the bearing of the chapter's title. Our Constitution has grown by written amendment, by judicial decisions, and by custom. No period has been more fruitful in such growth than Washington's administrations. FOR FURTHER READING on chapters xxxii-xxxvii. Francis A. Walker's Making of the Nation, 73-167, gives an admirable brief treatment. Biographies of Washington, Adams, and Hamilton should be accessible (see titles in Appendix). 66 CHAPTER XXXIII HAMILTON'S FINANCE 374. CONGRESS made appropriations the first year amounting to $640,000 — about one hundredth as much per citizen as the cost of government in recent years and it provided for this expense by a low tariff. The rates averaged about 71⁄2 per cent, and the bill was based upon the idea in the attempted revenue amendments" of 1781 and 1783 (§ 331). Pennsylvania members, however, secured some amendments intended to "protect" American manufactures, and this purpose was finally stated in the title of the bill. Strictly speaking, however, the law remained a tariff for revenue, with “incidental protective features." 375. Meanwhile Hamilton, with marvelous skill and industry, had worked out a plan to care for the old debts and to put the chaotic finances of the nation in order. First he recommended that the government "fund" the continental debt (both the $11,500,000 due abroad and the $40,500,000 of "certificates" held at home),' by taking it up, at face value, in exchange for new bonds payable in fifteen and twenty years. To make full provision for the foreign part of this debt was inevitable, if the United States was to have standing among the nations. Congress gave unanimous approval to this part of the scheme, but many members objected to taking over in full the old domestic debt. For the most part, the "certificates" had passed into the hands of speculators, at twelve or fifteen cents on the dollar; and, it was argued, there was neither necessity nor propriety in voting fortunes out of the 1 About a third of this domestic debt consisted of unpaid interest. § 376] HAMILTON'S FINANCE 323 people's money to men who had so traded on their country's needs. Hamilton maintained forcefully, however, that no other course would establish national credit or redeem the faith pledged by the old Congress as the price of Independence; and this view prevailed. On the other hand, the $200,000,000 of Continental currency, held mainly by the common people, was practically repudiated. This was much the larger part of the Revolutionary debt. In view of this, the talk of "redeeming our sacred faith” has a peculiar sound. Hamilton's plan is to be praised because it was wise, not because it was particularly honest. Even before Hamilton's proposals were laid before Congress, his purpose leaked out; and wealthy men in New York and Philadelphia hastily started agents in swift-sailing vessels for distant colonies, and on horseback for back counties, to buy up certificates at the prevailing prices, before the news should arrive. Indeed, many believed that Hamilton himself was corruptly interested in this speculation. From this charge, happily, he can be absolutely acquitted; but he had been careless in letting out official secrets to less scrupulous friends, and some of his strongest supporters in Congress were among these speculators. 376. Hamilton planned also for the Federal government to assume the war debts of the States ($22,000,000). This part of his scheme was long in danger. States that had already paid their debts resented bitterly the prospect of now having to help pay also the debts of other States; and States-rights men denied the right of Congress to assume debts. The measure was finally carried by a log-rolling bargain. Jefferson was persuaded to get two Virginia votes for "assumption," in return for Hamilton's promise of Northern votes to locate the Capital on the Potomac.1 Thus the total debt of the new 1 EXERCISE. Let the student make clear to himself, from the text, the use of the terms funding and "assumption." Is it not clear why this arrangement between Hamilton and Jefferson cannot be called a compromise, but must be styled "log-rolling"? Did Hamilton pay off any of the debt? |