9. The revelation of the Hamilton-Reynolds affair nearly led to a duel
When Callender’s story broke, it included references to the documents Hamilton had provided to Monroe several years earlier. An outraged Hamilton accused Monroe of exposing the story, which Monroe denied. Hamilton publicly implied Monroe was lying, and the latter issued a challenge to a duel. The combat was averted when Aaron Burr interceded, smoothing over the argument and cooling the tempers of both men. Hamilton next composed a pamphlet of his own, titled Observations on Certain Documents, known to history as The Reynolds Pamphlet. His frank discussion of the extramarital affair damaged his personal reputation and set tongues wagging across the country. But it also led to his exoneration regarding his conduct as Secretary of the Treasury. Hamilton’s wife, Eliza, publicly forgave his indiscretion, and Washington continued to support him.
By the time the affair was exposed Hamilton no longer served as Secretary of the Treasury, but he remained a potent political force for the Federalists. During the administration of President John Adams, Hamilton was appointed Inspector General of the Army of the United States. His appointment was endorsed by George Washington. Hamilton also worked behind the scenes to create methods of taxation to raise funds to support the Army and the Navy. Among the taxes were excised on whiskey, which led to the Whiskey Rebellion in western Pennsylvania. But despite his continued influence, Hamilton never shed much of the disgrace to which the affair exposed him, and the Democratic-Republicans ensured it remained a subject of national discussion. In 1798, the Alien and Sedition Acts forced Callender to flee Philadelphia, entering temporary exile in Virginia. There the influence of Jefferson, Monroe, and James Madison afforded him protection.