Washington thought it
prudent to send an army of 16,000 men. This formidable display of
federal power suppressed the insurrection without bloodshed.

[Sidenote: Tariff.]
Nowhere was there any such violent opposition to Hamilton's scheme of
custom-house duties on imported goods. People had always been familiar
with such duties. In the colonial times they had been levied by the
British government without calling forth resistance until Charles
Townshend made them the vehicle of a dangerous attack upon American
self-government.[32] After the Declaration of Independence, custom-house
duties were levied by the state governments and the proceeds were paid
into the treasuries of the several states. Before 1789, much trouble had
arisen from oppressive tariff-laws enacted by some of the states against
others. By taking away from the states the power of taxing imports, the
new Constitution removed this source of irritation. It became possible
to lighten the burden of custom-house duties, while by turning the full
stream of them into the federal treasury an abundant national revenue
was secured at once. Thus this part of Hamilton's policy met with
general approval. The tariff has always been our favourite device for
obtaining a national revenue. During our Civil War, indeed, the
national, government resorted extensively to direct taxation, chiefly in
the form of revenue stamps, though it also put a tax upon
billiard-tables, pianos, gold watches, and all sorts of things. But
after the return of peace these unusual taxes were one after another
discontinued, and since then our national revenue has been raised, as in
Hamilton's time, from duties on imports and excise on a few domestic
products, chiefly tobacco and distilled liquors.

[Footnote 32: See my _War of Independence_, pp. 58-83; and my
_History of the United States, for Schools_, pp. 192-203.]

[Sidenote: Origin of American political parties.]
Hamilton's measures as secretary of the treasury embodied an entire
system of public policy, and the opposition to them resulted in the
formation of the two political parties into which, under one name or
another, the American people have at most times been divided. Hamilton's
opponents, led by Jefferson, objected to his principal measures that
they assumed powers in the national government which were not granted to
it by the Constitution. Hamilton then fell back upon the Elastic
Clause[33] of the Constitution, and maintained that suc