Congress Founds U.S. Treasury

On this day, September 2, 1789, the United States Treasury Department is founded.

The institution’s roots can be traced to 1775, when America’s leaders were looking for ways to fund the Revolutionary War. Their solution–issuing cash that doubled as redeemable “bills of credit”–raised enough capital to fuel the revolution. but also led to the country’s first debt. The Continental Congress attempted to reign in the economy, even forming a pre-Constitutional version of the Treasury. Neither this move, nor the signing of the Declaration of Independence, which enabled the U.S. to seek loans from foreign countries, proved effective. The debt kept mounting, while war notes rapidly deflated in value.

With the ratification of the Constitution in 1789, the American government established a permanent Treasury Department in hopes of controlling the nation’s debt. President George Washington named his former aide-de-camp, Alexander Hamilton, to head the new office. The former New York lawyer and staunch Federalist stepped in as Secretary of the Treasury on September 11. Hamilton soon outlined a practical plan for reviving the nation’s ailing economy: the government would pay back its $75 million war debt and thus repair its badly damaged public credit.

Hamilton had been elected to the Continental Congress from New York in 1782. He demonstrated a near-reactionary political philosophy and quickly became known as a determined proponent of a stronger national government. Hamilton published several papers with James Madison and John Jay arguing for the ratification of the U.S. Constitution that are now known as the “Federalist Papers.” As the first secretary of the treasury, Hamilton established most of the centralized monetary institutions of the new nation, including the national bank, before resigning in January 1795. Hamilton then returned to the private sector and a law practice in New York City, but remained a close advisor to President Washington.

In 1800, Hamilton became embroiled in a bitter dispute when he threw his support behind President John Adams’ reelection campaign instead of presidential candidate Aaron Burr’s. After his defeat, Burr ran for governor of New York in 1804; Hamilton again opposed his candidacy. Humiliated, Burr challenged Hamilton to a duel on July 11, 1804, in Weehawken, New Jersey. Alexander Hamilton was shot in the duel and died of his wound the following day, July 12, in New York at the age of 49.

www.history.net

Jack Manning

Treasurer General

National Society Sons of the American Revolution

www.sar.org  

"Foreign influence is truly the Grecian horse to a republic. We cannot be too careful to exclude its influence."

Alexander Hamilton (1793)

McCulloch’s Leap

On this day in history, September 1, 1777, McCulloch’s Leap goes down as one of the greatest escapes of the American Revolution, when Major Samuel McCulloch jumps over a 300 foot cliff from attacking Indians to safety.

Fort Henry had guarded the small village of Wheeling from Indian attack, in what was then part of Virginia, since 1774. The Ohio Valley tribes, aligned with the British, began a new campaign against the frontier settlements in the summer of 1777. Fort Henry was fortified and prepared, having received intelligence that it would be a target. On August 31, a party of 200 Mingo, Wyandot and Shawnee attacked the village and the fort. Most of the 25 or so families from Wheeling got to the fort safely.

Several messengers were able to get away and inform other nearby forts that Fort Henry was under attack. Captain Van Swearingen soon arrived from nearby Cross Creek with forty men on horses. They successfully fought their way to the fort, swelling its number of defenders. Other reinforcements arrived from Fort Shepherd and Fort Holliday.

On September 1, Major Samuel McCulloch arrived from Fort Van Metre with another 40 men. As they raced to the gate of the fort, the Indians attacked in full force. As some of the men were forced into hand-to-hand combat, McCulloch waited till the last to make sure they were all inside the fort. With the Indians getting very near the open doors, the settlers inside were finally forced to close the gates, leaving McCulloch alone on the outside.

McCulloch took off in the direction of nearby Wheeling Hill being pursued by the Indians. He was not fired upon because the Indians wanted to take him alive. Every Indian knew McCulloch, who was a notorious and feared Indian fighter on the frontier.

As McCulloch galloped along the crest of the hill, a 300 foot precipice on one side and a band of Indians chasing him from behind, he was confronted with another group of Indians to his front, who were just arriving to help with the siege of the fort. Now surrounded and with no way of escape, McCulloch knew his capture would mean the most excruciating torture. He made an instant decision to go over the edge of the precipice. Dying on the way down would be easier than being tortured at the hands of the Indians.

McCulloch held the reigns with his left hand and his gun in his right hand and spurred his horse over the edge. It is said that they did not hit ground until half way down the hill, which is nearly vertical. The rest of the way, they slid down the almost 90 degree hill, being pummeled with branches and stones until they hit bottom, but McCulloch’s horse never lost his footing.

At the bottom of the hill lie Wheeling Creek. The stunned Indians watched McCulloch cross the creek and ride away in amazement. The Indians continued the siege of Fort Henry only for another day or so. With the reinforcements that had already arrived and those that McCulloch would likely bring back with him, continuing was futile and they gave up the mission. McCulloch’s Leap has gone down as one of the bravest escapes of the American Revolution and, indeed, in all of the history of warfare.

http://www.revolutionary-war-and-beyond.com

Jack Manning

Treasurer General

National Society Sons of the American Revolution

www.sar.org  

"There exists in the economy and course of nature, an indissoluble union between virtue and happiness; between duty and advantage; between the genuine maxims of an honest and magnanimous policy, and the solid rewards of public prosperity and felicity."
George Washington (1789)