Chapter XII: Part 12

Out of this is to be deducted the expense of the interior administration of Government, and the money necessary for the levies of men. The first amounts to about twelve thousand pounds, as you will perceive by the inclosed statement; but I suppose the Legislature would choose to retain fifteen thousand pounds. The money hitherto yearly expended in recruits, has amounted to between twenty and thirty thousand pounds; but, on a proper plan, ten thousand pounds might suffice. There would then remain forty thousand pounds for your department.

But this is on the supposition of a change of system; for, with the present, I doubt there being paid into the Continental treasury one-third the sum.

I am endeavoring to collect materials for greater certainty upon this subject; but the business of supplies has been so diversified, lodged in such a variety of independent hands, and so carelessly transacted, that it is hardly possible to get any tolerable idea of the gross and net product. With the help of these materials I shall strive to convince the committee, when they meet, that a change of measures is essential. If they enter cordially into right views, we may succeed: but I confess I fear more than I hope.

I have taken every step in my power to procure the information you have desired in your letter of July ’81; the most material part of it, an account of the supplies furnished since March seventeen hundred and eighty, has been committed to Colonel Hay. I have written to him, in pressing terms, to accelerate the preparation.

You will perceive, sir, I have neither flattered the State, nor encouraged high expectations. I thought it my duty to exhibit things as they are, not as they ought to be. I shall be sorry if it give an ill opinion of the State, for want of equal candor in the representation of others; for, however disagreeable the reflection, I have too much reason to believe, that the true picture of other States would be, in proportion to their circumstances, equally unpromising. All my inquiries, and all that appears, induces this opinion. I intend this letter _in confidence_ to yourself, and therefore I endorse it private.

Before I conclude, I will say a word on a point that possibly you would wish to be informed about. The contract up this way is executed generously to the satisfaction of officers and soldiers; which is the more meritorious in the contractor, as, in all probability, it will be to him a losing undertaking.

I have the honor to be,
With sentiments of unfeigned respect,
Sir, your most ob’t and humble serv’t,
A. Hamilton.

To the Hon. Robert Morris, Esq.

GOVERNOR CLINTON TO HAMILTON.

Poughkeepsie, August 18, 1782.

Sir:

I have received your letter of the third instant. I am not authorized to direct the printer to deliver any of the laws, except a certain number of sets which are by law directed for particular purposes. I have, however, mentioned your desire to the gentlemen of the committee appointed to superintend the printing and distribution of them, and requested them to furnish you with a set, which I doubt not will be complied with.

Some short time before the appointment of a Superintendent of Finance, I transmitted to Congress the most perfect information I was able to collect, of many of the matters mentioned in your letter; and it was my intention, from time to time, to have continued these communications to Mr. Morris; but our laws remaining so long unprinted, the dispersed situation of the different public officers, and the difficulty, from this circumstance, as well as the want of authority, in some instances, to command the necessary returns, rendered it a business, if not impracticable, requiring more time and attention than the indispensable duties of my office afforded leisure to bestow. I shall, however, be happy to give you every aid in my power to facilitate it. The laws, with the returns which have lately been made by the different public officers, and may be found on the files of the Legislature, and in the treasurer’s office, will answer most of the questions stated. The answers to the others, appear to me to depend, in some measure, on matter of opinion; and, as the operation of our laws is often obstructed, and the intended consequences defeated, by unforeseen events arising from our embarrassed situation, they cannot be given with any great degree of precision.

You will readily perceive, sir, that the treasurer, from the nature of his office, is not, except in cases provided for by law, subject to my control. I am persuaded, however, that he, as well as the clerks of the Legislature, will readily give you every information and assistance consistent with the duties of their respective offices.

I am, with great respect and esteem,
Sir, your most obedient servant,
Geo. Clinton.

To Col. Alexander Hamilton.

PICKERING TO HAMILTON.

New-Windsor, August 20, 1782.

Dear Sir:

I have some Bills of Exchange, drawn by Mr. Morris on John Swanwick, which I am authorized to exchange with the receivers of the Continental Taxes in any of the States eastward of Pennsylvania. Mr. Morris informed me, that he had advised the Receivers of this measure, and directed their taking up the bills whenever they were in cash. By taxes or by loan, I expect this State will shortly furnish you with money. I am indebted to the subjects of it by many special engagements, which I am anxious to fulfil. You will therefore greatly oblige me, by giving me, from time to time, information of the money you shall receive; and in order to secure the earliest supply, I would lodge, if you please, some of the bills in your hands. Bank notes or Mr. Morris’s notes will be useful to me, though not so beneficial as cash.

I am, dear Sir,
With respect and esteem,
Your most obedient servant,
Tim. Pickering,
_Q. M. G._

Col. Alex. Hamilton.

HAMILTON TO MORRIS.

Albany, August 25, 1782.

Sir:

This letter serves only to transmit the two last papers. I wish the measures I have taken to satisfy you on the points you desire to be informed of, had been attended with so much success as to enable me now to transmit the result. But I find a singular confusion in the accounts kept by the public officers from whom I must necessarily derive my information, and a singular dilatoriness in complying with my application, partly from indolence, and partly from jealousy of the office. I hope, by the next post, to transmit you information on some particulars.

I have the honor to be, Sir,
Your most obedient servant,
A. Hamilton.

To Robert Morris, Esq.

HAMILTON TO MEADE.

Albany, August 27, 1782.

I thank you, my dear Meade, for your letter of the first of this month, which you will perceive has travelled much faster than has been usual with our letters. Our correspondence, hitherto, has been unfortunate; nor, in fact, can either of us compliment himself on his punctuality; but you were right in concluding, that however indolence, or accident, may interrupt our intercourse, nothing will interrupt our friendship. Mine for you is built on the solid basis of a full conviction that you deserve it, and that it is reciprocal; and it is the more firmly fixed because you have few competitors. Experience is a continual comment on the worthlessness of the human race; and the few exceptions we find have the greater right to be valued in proportion as they are rare. I know few men estimable, fewer amiable; and when I meet with one of the last description, it is not in my power to withhold my affection.

* * * * *

As to myself, I shall sit down in New-York when it opens; and this period, we are told, approaches. No man looks forward to a peace with more pleasure than I do; though no man would sacrifice less to it than myself, if I were not convinced the people sigh for peace.

I have been studying the law for some months, and have lately been licensed as an attorney. I wish to prepare myself by October for examination as a counsellor; but some public avocation may possibly prevent me.

I had almost forgotten to tell you, that I have been pretty unanimously elected, by the Legislature of this State, a member of Congress, to begin to serve in November. I do not hope to reform the State, although I shall endeavor to do all the good I

* * * * *

God bless you,
A. Hamilton.

To Colonel Meade.

MORRIS TO HAMILTON.

Office of Finance, August 28, 1782.

Sir:

I have duly received your several favors of the twenty-second and twenty-seventh of July, and tenth and thirteenth of August. My not answering them is owing to causes which you will easily conceive, because you will easily conceive the multiplicity of objects to which I must turn my attention. I am very sorry to learn that you can no longer continue in the office of Receiver. It would have given me great pleasure that you should have done so, because I am sure that you would have rendered very signal service to the public cause: this you will now do in another line, more important, as it is more extensive: and the justness of your sentiments on public affairs, induces my warm wish, that you may find a place in Congress so agreeable as that you may be induced to continue in it.

I should readily have complied with your wish, as to a successor, but there are many reasons which have called my attention to, and fixed my choice upon, Doctor Tillotson. We will converse on this subject when we meet. I am, however, very far from being unmindful of your recommendations; and although I cannot name the citizen of any State to settle the accounts of that particular State, consistently with the general line of conduct I have laid down for myself; yet I shall do, in other respects, what is in my power. I have not hitherto been able to fix on a proper Commissioner for the State of New-York. The office is vacant for New Hampshire and Rhode Island. I inclose you a copy of the Ordinance on the subject, that you may know the powers, duties, and emoluments; and I have to request that you offer these places to Colonel Malcolm and Mr. Lawrence. You will make the first offer, including the choice, as your own judgment may direct. Should the gentlemen, or either of them, accept, you will be so kind as to give me early notice. I will then immediately recommend them to the States respectively; and on receiving their approbation, the proper instructions, etc., can be expedited.

I am sorry to learn that any letter of mine should have given offence; but I conclude that this effect must follow from many parts of my writings and conduct; because the steady pursuit of what appears to be the true line of duty, will necessarily cross the various oblique views of interest and opinion. To offend is sometimes a fault, always a misfortune. The letter in question is, I suppose, under the date of the eleventh of December, of which I inclose you a copy. Let me, at the same time, assure you, that in all your excellent letter of the thirteenth instant, I most esteem the clause now in question; because it contains that useful information which is least common. I will make no apologies for the letter to any one, because apologies are rarely useful; and where the intention has been good, they are, to candid minds, unnecessary. Possessed of the facts, you can guard against misrepresentation; and I have ever found that to be the most hostile weapon which either my personal or political enemies have been able to wield against me.

I have not, _even yet_, seen the Resolutions of your Legislature relative to an extension of the powers of Congress. I had supposed the same reason for them which you have expressed. Indeed, power is generally such a darling object with weak minds, that they must feel extreme reluctance to bid it farewell; neither do I believe that any thing will induce a general consent to part with it, but a perfect sense of absolute necessity. This may arise from two sources; the one of reason, and the other of feeling: the former more safe and more uncertain; the latter always severe and often dangerous. It is, my dear sir, in circumstances like this, that a patriot mind, seeking the great good of the whole, on enlightened principles, can best be distinguished from those vulgar souls whose narrow optics can see but the little circle of selfish concerns. Unhappily, such souls are but too common, and but too often fill the seats of dignity and authority. A firm, wise, manly system of federal government is what I once wished, what I now hope, what I dare not expect, but what I will not despair of. Your description of the mode of collecting taxes, contains an epitome of the follies which prevail from one end of the continent to the other. There is no end to the absurdity of human nature. Mankind seem to delight in contrast and paradox; for surely nothing else could sanctify (during a contest on the precise point of being taxed by our own consent) the arbitrary policy which, on this subject, almost universally prevails. God grant you success in your views to amend it. Your ideas on the subject are perfectly correspondent to my own. As to your doubt on the mode of collecting it, I would wish to obviate it by the observation, that the farther off we can remove the appointment of Collectors from popular influence, the more effectual will be their operations; and the more they conform to the views of Congress, the more effectually will they enable that body to provide for general defence. In political life, the creature will generally pay some deference to both. The having a double set of officers is indeed an evil; but a good thing is not always to be rejected because of that necessary portion of evil which, in the course of things, must be attached to it. Neither is this a necessary evil; for, with a proper Federal Government, Army, Navy, and Revenue, the Civil Administration might well be provided for by a Stamp Act, Roads by Turnpikes, and Navigations by Tolls.

The account you give of the State is by no means flattering: and the more true it appears, the more concern it gives me. The loan, I hope, will be completed; and I wish the _whole_ amount of the tax may be collected. The Forage plan I have disagreed to; and inclose, for your information, the copy of my letter, on that subject, to the Quartermaster General. I believe your State is exhausted: but perhaps even you consider it as being more so than it is. The Certificates, which now form a useless load, will (if the United States adopt, and the several States agree to, a plan now before Congress) become valuable property. This will afford great relief. The scarcity of money, also, may be immediately relieved, if the love of popular favor would so far give way to the love of public good, as to enforce plentiful taxation. The necessity of having money will always produce money. The desire of having it, produces, you see, so much as is necessary to gratify the desire of enjoying foreign luxuries. Turn the stream, which now flows in the channels of Commerce, to those of Revenue, and the business is completed. Unfortunately for us, this is an operation which requires fortitude, perseverance, virtue; and which cannot be effected by the weak or wicked minds who have only partial, private, or interested views.

When I consider the exertions which the country you possess has already made, under striking disadvantages, and with astonishing prodigality of national wealth, by pernicious modes of applying it; I persuade myself, that regular, consistent efforts, would produce much more than you suppose.

* * * * *

I am, with perfect respect,
Your most obedient
And humble servant,
Robert Morris.

To Alexander Hamilton, Esq.

HAMILTON TO ROBERT MORRIS.

Albany, August 31, 1782.

Sir:

I send you herewith all the acts of the Legislature of this State since the Government has been organized; on the margin of which I have numbered all the acts relative to the matters you mention in your letter of July, ’81, to the States agreeable to the within list. I inclose you the papers of the last week.

The indolence of some, and the repugnancy of others, make every trifle lag so much in the execution, that I am not able at this time to give you any further information. I wish to hear from you on the subject of my former letters previous to the meeting of the Committee--the 15th of the ensuing month.

I have the honor to be very truly,
Sir, your most obedient servant,
A. H.

To the Honorable Superintendent of Finance.

GOVERNOR CLINTON TO HAMILTON.

Poughkeepsie, September 2, 1782.

Sir:

I am favored with your letter of the 25th instant, previous to which, with a view of accelerating the collection of the last Tax, I had prepared, and have since dispatched a circular letter to the several County Treasurers, urging them and the other officers concerned, to a prompt execution of their duty, or that in case of neglect the penalty of the law will without favor be put into execution.

I have not received information from all the Counties, but in this and some others, I know the business is in good train, and am led to hope that the taxes will be speedily collected and paid in.

My agents employed to procure moneys on loan had some time since transmitted me a small sum, but not sufficient to answer the orders of the Legislature in favor of the Delegates and some other public matters. As the channel through which this money is procured is subject to interruption and disappointment, I cannot at present inform you of any sum to be depended on, but I expect soon to see or hear from the gentlemen, and you may rest assured of being informed of the result without delay.

I am, with great respect and esteem,
Sir, your most obedient servant,
Geo. Clinton.

Col. Hamilton.

HAMILTON TO THE COUNTY TREASURERS.

Albany, September 7, 1782.

Sir:

The fifteenth of this month is the period fixed for the payment of the tax imposed at the last meeting of the Legislature for the use of the United States. The public exigencies, and the reputation of the State, require that every exertion should be made to collect this tax with punctuality and dispatch; and it is, therefore, my duty to urge you, that you employ the powers vested in you, and all your personal influence, to induce the collectors to expedite the collection with all the zeal and vigor in their power. While the other States are all doing something, as a citizen of this, I shall feel a sensible mortification in being obliged to continue publishing to the others, that this State pays nothing in support of the war, as I have been under the necessity of doing the last two months. Besides this, and other still more weighty considerations, a regard to the subjects of the State itself demands every exertion in our power. They have parted with their property on the public faith, and it is impossible for the public to fulfil its engagements to individuals, unless it is enabled to do it by the equal and just contributions of the community at large.

I am, Sir,
Your most obedient servant,
A. Hamilton.

HAMILTON TO MORRIS.

Albany, September 7, 1782.

Sir:

I have had the inclosed ready for some time; but in hopes of receiving the returns of the certificates mentioned in memorandum B, I delayed sending the present sketch. Having even received no answers from some of the parties, who live at a distance from me, I suspect they have done their business in so disorderly a manner (to say nothing worse of it) that they are at a loss how to render the accounts; and I have, therefore, concluded not to detain any longer what I have procured.

I do not take the step mentioned in memorandum A, because I doubted its propriety. It might raise expectations about the old money, which, possibly, it may not enter into your plans to raise: and, besides this, by knowing what has been called in, in each State (which from the sketch I send you, will appear as to this), you can determine the balance of emissions remaining out, except what may have worn out and been accidentally destroyed. If you desire this step to be taken, I will obey your commands.

I have said nothing of the rates of depreciation, because I imagine your letter, written in July, ’80, had reference to the rates at which the money was then actually circulating, and the circulation has now totally ceased. The laws I sent you by the last post, will inform you of the rates fixed at different periods by the Legislature: forty, seventy-five, and lastly, one hundred and twenty-eight. I am obliged to infer there is a studied backwardness in the officers of the State, who ought to give me the information you require respecting the supplies of different kinds which have been furnished to the use of the United States. Indeed, I find, on inquiry, that their joint information will not be so full as to satisfy your intentions; and that this cannot be done till you have appointed a commissioner of accounts, authorized to enter into all the details, aided by some legislative arrangement which may be obtained the next session.

I have the honor to be,
With great respect and esteem,
Sir, your most obedient servant,
A. Hamilton.

To Robert Morris, Esq.

HAMILTON TO TIMOTHY PICKERING.

Albany, September 7, 1782.

Dear Sir:

I this day received your letter of the 20th August. Mr. Morris has advised me of the bills you describe, and directed my purchasing them, together with his notes, and the bank notes; with what money shall come into my hands on public account. They are now beginning to collect the tax imposed for the use of the United States, though I can as yet form no judgment with what success or expedition. I shall with pleasure give you the information you ask, but I would rather wish to be excused from anticipation by previous deposits in my hands, as that will in some measure pledge me to give a preference to the bills deposited, and may hereafter expose me to a charge of partiality. There have been several applications to me for a similar anticipation which I have avoided; reserving to myself the power of paying the bills as they shall be presented, and in proportion to the nearness or remoteness of the periods of payments.

You may, however, depend that I shall be happy to assist your department, and will keep in view your present request. I hope, towards the latter end of the month, I shall receive something considerable on the late tax.

I am, dear Sir, very truly,
Your obedient servant,
A. Hamilton.

To Timothy Pickering,
D. Q. Gen.

HAMILTON TO ROBERT MORRIS.

Albany, Sept. 14, 1782.

Sir:

I have the honor to acknowledge the receipt of your letter of the 29th of August, the contents of which shall be executed.

I have just received by the post accounts of the specific supplies furnished by the State; copies of which I shall prepare to be transmitted to you by the next post, as I am to return the originals, which are for the inspection of the Legislature. I hope to add to these accounts of the moneys supplied.

I have written to you a number of letters since my journey to Poughkeepsie, of which, as they contain some things of a confidential nature, I am not without anxiety to learn the safe arrival.

I should also have been happy to have received your instructions against the meeting of the Committee, which is to take place to-morrow. As they will have other business, if I hear from you by the next post, I shall not be too late. I am at a loss to know whether I ought to press the establishment of permanent _funds_ or not; though unless I receive your instructions, following my own apprehensions of what are probably your views, I shall dwell on this article.

I have the honor to be,
With perfect respect,
Sir, your most ob’t serv’t,
A. Hamilton.

I inclose you a copy of a letter of the Governor, of the 2d inst., from which you will see his hopes. Mine are not so good. In this vicinity, always delinquent, little is doing.

HAMILTON TO ROBERT MORRIS.

Albany, Sept. 21, 1782.

Sir:

The hurry in which I wrote to you by the last post, prevented my examining particularly the papers which I informed you I had received. On a more careful inspection of them, I found them not so complete as I had hoped. There is a general state of specific supplies; but the returns referred to in that for the particulars, were by some mistake omitted. I have written for them, but they have not yet arrived; when they do, I shall lose no time in forwarding them.

I observe there is nothing respecting transportation; and there is a part of the supplies for the period before Col. Hay came into office, which is estimated on a scale of proportion--too vague a method to be satisfactory. I have urged him to send me an account of the transportation, and to collect, as speedily as possible, official returns of the supplies above mentioned.

There is a practice obtaining which appears to me to contravene your views. The Contractors, I am informed, have gotten into a method of carrying your bills immediately to the Collectors and drawing the specie out of their hands, by which means the paper never goes into circulation at all; but passes, so to speak, immediately out of one hand of the public into the other. The people, therefore, can never be familiarized to the paper, nor can it ever obtain a general currency.

If the specie were to come into the Receivers’ hands, and the Contractors were left under a necessity of exerting their influence to induce the inhabitants to take your notes, to be afterwards redeemed by the Receivers agreeably to your plan, this would gradually accustom the people to place confidence in the notes; and though the circulation at first should be momentary, it might come to be more permanent.

I am in doubt, whether on the mere speculation of an evil, without your instructions, I ought to take any step to prevent this practice. For, should I forbid the exchange, it might possibly cause a suspicion that there was a preference of the paper to the specie, which might injure its credit.

I have thought of a method to prevent, without forbidding it in direct terms. This was to require each collector to return the names of the persons from whom he received taxes, and in different columns, specify the kind of money, whether specie, your notes, or bank notes, in which the tax was paid; giving the inhabitants receipts accordingly; and paying in money in the same species in which it was received. This would cover the object.

I have tried to prevail upon the county treasurer of this place, to instruct the collectors accordingly; but the great aim of all these people is to avoid trouble; and he affected to consider the matter as a Herculean labor. Nor will it be done without a legislative injunction.

A method of this kind would tend much to check fraud in the collectors; and would have many good consequences.

I thought it my duty, at any rate, to apprise you of the practice, that, if my apprehensions are right, it may not be continued without control. I have reason to believe it is very extensive--by no means confined to this State.

Permit me to make one more observation. Your notes, though in credit with the merchants by way of remittance, do not enter far into ordinary circulation, and this principally on account of their size; which even makes them inconvenient for paying taxes. The taxes of very few amount to twenty dollars a single tax; and though the farmers might combine to sell their produce for the notes, to pay the taxes jointly; yet this is not always convenient, and will seldom be practised. If the notes were, in considerable part, of five, eight, or ten dollars, their circulation would be far more general; the merchants would, even in their retail operations, give specie in exchange for balances; which few of them care to do, or can do, with the larger notes; though they are willing to take them for their goods.

A. Hamilton.

HAMILTON TO MORRIS.

September 28, 1782.

Sir:

I have been honored this week with your letters of the twenty-eighth of August, and the sixth, twelfth, and seventeenth instant, with their inclosures.

It gives me the most real pleasure to find that my past communications have met with your approbation; and I feel a particular satisfaction in the friendly confidence which your letters manifest. I am persuaded that substantial reasons have determined your choice in a particular instance to Doctor Tillotson; and I am flattered by the attention you have obligingly paid to my recommendations of Colonel Malcolm and Mr. Lawrence. Those gentlemen are now here. They make you the warmest acknowledgments for your offer, but decline leaving the State; which, indeed, is not compatible with the present prospects of either of them.

I am glad to have had an opportunity of perusing your letter to this State, at which so much exception has been taken; because it has confirmed me in what I presumed, that there has been much unjustifiable ill-humor upon the occasion. I will make use of the knowledge I have to combat misrepresentation.

Yours of the twenty-ninth of July to Congress, is full of principles and arguments as luminous as they are conclusive. It is to be lamented that they have not had more weight than we are to infer from the momentary expedient adopted by the resolutions of the fourth and tenth; which will, alone, not be satisfactory to the public creditors; and I fear will only tend to embarrass your present operations, without answering the end in view. The more I see, the more I find reason for those who love this country to weep over its blindness.

The committee on the subject of taxation are met. Some have their plans; and they must protect their own children, however misshapen: others have none; but are determined to find fault with all. I expect little, but I shall promote any thing, though imperfect, that will mend our situation.

With sentiments of
The greatest respect and esteem,
I have the honor to be, Sir,
Your most obedient servant,
A. Hamilton.

P.S. The public creditors in this quarter, have had a meeting, and appointed a committee to devise measures. The committee will report petitions to Congress and the Legislature; and an address to the public creditors in other parts of the State, to appoint persons to meet in convention, to unite in some common measure. I believe they will also propose a general convention of all the creditors in the different States.

A. H.

To the Hon. Robert Morris, Esq.

HAMILTON TO MORRIS.

Albany, Oct. 5, 1782.

Sir:

In my last I informed you, that the committee, appointed by the Legislature on the subject of taxation, were together. In spite of my efforts, they have parted without doing any thing decisive. They have, indeed, agreed upon several matters, and those of importance; but they have not reduced them to the form of a report; which, in fact, leaves every thing afloat, to be governed by the impressions of the moment, when the Legislature meets.

The points agreed upon, are these: That there shall be an actual valuation of land, and a tax of so much in the pound.

The great diversity in the qualities of land would not suffer them to listen to an estimated valuation, or to a tax by the quantity, agreeably to the idea in your late report to Congress. That there shall be also a tariff of all personal property, to be also taxed at so much in the pound; that there shall be a specific tax on carriages, clocks, watches, and other similar articles of luxury; that money, at usury, shall be taxed at a fixed rate in the pound, excluding that which is loaned to the public; that houses, in all towns, shall be taxed at a certain proportion of the annual rent; that there shall be a poll tax on all single men from fifteen upwards; and that the collection of the taxes should be advertised to the lowest bidder, at a fixed rate per cent., bearing all subordinate expenses.

Among other things which were rejected, I pressed hard for an excise on distilled liquors; but all that could be carried on this article was a license on taverns.

The committee were pretty generally of opinion, that the system of funding for payment of old debts, and for procuring further credit, was wise and indispensable; but a majority thought it would be unwise in one State to contribute in this way alone.

Nothing was decided on the quantum of taxes which the State was able to pay: those who went furthest, did not exceed seventy thousand pounds, of which fifty for the use of the United States.

I send you my cash account, which is for what has been received in this county. We have not heard from the others.

I have the honor to be, Sir,
Your most obedient servant,
A. Hamilton.

To the Hon. Robert Morris, Esq.

MORRIS TO HAMILTON.

Office of Finance, October 5, 1782.

Sir:

I have now before me your letters of the fourteenth and twenty-first of last month. I am sorry to find that you are less sanguine in your pecuniary expectations than the Governor appears to be; for I have always found that the worst forebodings on this subject are the truest. You will find, at the bottom of this letter, a list of all those which I have hitherto received from you. I think they have all been already acknowledged; but lest they should not, you will see in one moment, by the list, whether any have miscarried.

I am not surprised to find that the contractors apply with their paper, in the first instance, to the Receivers and Collectors. This I expected, because much of that paper is not fit for other purposes. Some of it, however, which is payable to the bearer, is calculated for circulation; which you observe is not so general as otherwise it might have been, by reason of the largeness of the sums expressed in the notes. Mr. Duer’s letters contain the same sentiment.

In issuing this paper, one principal view was to facilitate the payment of taxes by obviating the too general (though unjust) complaint of the want of a circulating medium. In substituting paper to specie, the first obstacle to be encountered, was the total diffidence which had arisen from the late profusion of it. Had a considerable quantity been thrown into the hands of that class of the people, whose ideas on the subject of money, are more the offspring of habit than of reason, it must have depreciated. That this apprehension was just, is clear from this fact, that the paper I first issued, and the Bank paper which came out after it, did depreciate from ten to fifteen per cent. in the Eastern States, notwithstanding all the precautions which were used. If I had not taken immediate measures to create a demand for it on the spot, and to stop issues to that quarter, its credit would have been totally lost for a time, and not easily restored. Besides that, the quantities which were pouring in from thence would have done mischief here. Confidence is a plant of very slow growth; and our political situation is not too favorable to it. I am, therefore, very unwilling to hazard the germ of a credit, which will, in its greater maturity, become very useful. If my notes circulate only among mercantile people, I do not regret it, but rather wish that the circulation may, for the present, be confined to them, and to the wealthier members of other professions. It is nothing but the greater convenience, which will induce people to prefer any kind of paper to the precious metals; and this convenience is principally felt in large sums. Whenever the shopkeepers, in general, discover that my paper will answer as a remittance to the principal ports, and will be readily exchanged by the Receivers, they will as readily exchange it for other people. When the people, in general, find that the shopkeepers receive it freely, they will begin to look after it, and not before. For you must know, that whatever fine plausible speeches may be made on this subject, the farmers will not give full credit to money, merely because it will pay taxes: for that is an object they are not very violently devoted to. But that money which goes freely at the store and the tavern, will be sought after as greedily as those things which the store and the tavern contain. Still, however, your objection remains good; that the traffickings in which the greater part of the community engage, do not require sums so large as twenty dollars. This I shall readily acknowledge: but you will observe there is infinitely less danger that large notes, which go only through the hands of intelligent people, will be counterfeited than small ones, which come to the possession of illiterate men. When public credit is firmly established, the little shocks it receives from the counterfeiters of paper money, do not lead to material consequences; but, in the present ticklish state of things, there is just ground of apprehension. Besides this, the value of paper will depend much upon the interchanges of it for specie: and these will not take place when there is a circulation of small paper. Lastly, I have to observe, that until more reliance can be placed on the revenues required, I dare not issue any very considerable amount of this paper, lest I should be run upon for more than I could answer: and as the circulation of what I dare issue, by increasing the general mass, enables people (so far as it goes) more easily to get hold of other money, it consequently produces, in its degree, that object of facilitating taxation which I had in view.

I am, Sir,
Your most obedient, humble servant,
Robert Morris.

Alexander Hamilton, Esq.,
Receiver for New-York.

HAMILTON TO DE NOAILLES.

1782.

Esteem for your talents and acquirements is a sentiment which, from my earliest acquaintance with you, my dear Viscount, I have shared in common with all those who have the happiness of knowing you; but a better knowledge of your character has given it, in my eyes, a more intrinsic merit, and has attached me to you by a friendship founded upon qualities as rare as they are estimable. Averse as I am to professions, I cannot forbear indulging this declaration, to express to you the pleasure I felt at receiving (after an inexplicable delay) the letter you were so obliging as to write me before your departure from Boston. It was of that kind which is always produced by those attentions of friends we value; which, not being invited by circumstances, nor necessitated by the forms of society, bespeak the warmth of the heart. At least my partiality for you makes me fond of viewing it in this light, and I cherish the opinion.

I was chagrined to find that you left us with an intention not to return. Though I should be happy if, by a removal of the war, this country should cease to be a proper theatre for your exertions, yet, if it continues to be so, I hope you will find sufficient motives to engage you to change your resolution. Wherever you are, you will be useful and distinguished; but the ardent desire I have of meeting you again, makes me wish America may be your destination. I would willingly do it in France, as you invite me to do; but the prospect of this is remote. I must make a more solid establishment here before I can conveniently go abroad. There is no country I have a greater curiosity to see, or which I am persuaded would be so interesting to me as yours. I should be happy to renew and improve the valuable acquaintances from thence, which this war has given me an opportunity of making; and, though I could not flatter myself with deriving any advantage from it, I am persuaded it is there I should meet with the greatest number of those you describe, who, etc.: but considerations of primary importance will oblige me to submit to the mortification of deferring my visit.

In the mean time I should be too much the gainer by communication with you, not gladly to embrace the offer you so politely make for writing to each other.

The period, since you left us, has been too barren of events to enable me to impart any thing worth attention. The enemy continue in possession of Charleston and Savannah, and leave us masters of the rest of the country. General Greene has detached Wayne to Georgia; but I believe his views do not extend beyond the mere possession of the country. It is said the Assemblies of the two invaded States are about meeting, to restore the administration of government. This will be a step to strengthening the hands of General Greene, and counteracting the future intrigues of the enemy. Many are sanguine in believing that all the southern posts will be evacuated, and that a fleet of transports is actually gone to bring the garrisons away. For my part, I have doubts upon the subject. My politics are, that while the present ministry can maintain their seats, and procure supplies, they will prosecute the war on the mere chance of events; and that while this is the plan, they will not evacuate posts so essential as points of departure; from whence, on any favorable turn of affairs, to renew their attack on our most vulnerable side. Nor will they relinquish objects that would be so useful to them, should the worst happen in a final negotiation. Clinton, it is said, is cutting a canal across New-York island, through the low grounds, about a mile and a half from the city. This will be an additional obstacle; but if we have, otherwise, the necessary means to operate, it will not be an insurmountable one. I do not hear that he is constructing any other new works of consequence. To you, who are so thoroughly acquainted with the military posture of things in this country, I need not say that the activity of the next campaign must absolutely depend on effectual succors from France. I am convinced we shall have a powerful advocate in you. La Fayette, we know, will bring ‘the whole house’ with him if he can.

There has been no material change in our internal situation since you left us. The capital successes we have had, have served rather to increase the hopes than the exertions of the particular States. But in one respect we are in a mending way. Our financier has hitherto conducted himself with great ability, has acquired an entire personal confidence; revived, in some measure, the public credit; and is conciliating fast the support of the moneyed men. His operations have hitherto hinged chiefly on the seasonable aids from your country; but he is urging the establishment of permanent funds among ourselves: and though, from the nature and temper of our governments, his applications will meet with a dilatory compliance, it is to be hoped they will by degrees succeed.

The institution of a Bank has been very serviceable to him: the commercial interest, finding great advantages in it, and anticipating much greater, is disposed to promote the plan; and nothing but moderate funds, permanently pledged for the security of lenders, is wanting to make it an engine of the most extensive and solid utility. By the last advices there is reason to believe the delinquent States will shortly comply with the requisition of Congress for a duty on our imports. This will be a great resource to Mr. Morris; but it will not alone be sufficient.

Upon the whole, however, if the war continues another year, it will be necessary that Congress should again recur to the generosity of France for pecuniary assistance. The plans of the financier cannot be so matured as to enable us, by any possibility, to dispense with this; and if he should fail for want of support, we must replunge into that confusion and distress which had like to have proved fatal to us, and out of which we are slowly emerging. The cure, on a relapse, would be infinitely more difficult than ever.

I have given you an uninteresting but a faithful sketch of our situation. You may expect, from time to time, to receive from me the progress of our affairs; and I know you will over-pay me.

I am, my dear Viscount,
Yours faithfully,
A. Hamilton.

To the Viscount De Noailles.

HAMILTON TO GREENE.

Albany, October 12, 1782.

Dear General:

It is an age since I have either written to you or received a line from you; yet I persuade myself you have not been the less convinced of my affectionate attachment, and warm participation in all those events which have given you that place in your country’s esteem and approbation which I have known you to deserve, while your enemies and rivals were most active in sullying your reputation.

You will perhaps learn, before this reaches you, that I have been appointed a Member of Congress. I expect to go to Philadelphia in the ensuing month, where I shall be happy to correspond with you with our ancient confidence; and I shall entreat you not to confine your observations to military subjects, but to take in the whole scope of national concerns. I am sure your ideas will be useful to me and to the public.

I feel the deepest affliction at the news we have just received of the loss of our dear and estimable friend Laurens. His career of virtue is at an end. How strangely are human affairs conducted, that so many excellent qualities could not insure a more happy fate! The world will feel the loss of a man who has left few like him behind, and America of a citizen whose heart realized that patriotism of which others only talk. I shall feel the loss of a friend I truly and most tenderly loved, and one of a very small number.

* * * * *

I am, dear Sir,
Truly your friend and servant,
A. Hamilton.

To General Greene.

HAMILTON TO ROBERT MORRIS.

Albany, October 26, 1782.

Sir:

I am honored with your letters of the 5th, 15th, and 16th instant.

The detail you have been pleased to enter into in that of the 15th, exhibits very cogent reasons for confining yourself, to pretty large denominations of notes; some of them had occurred to me, others had not; but I thought it my duty to state to you the operation which that circumstance had; as in the midst of the variety and extent of the objects which occupy your attention, you may not have so good opportunities of seeing the effect of your plans in detail. While I acknowledge that your observations have corrected my ideas upon the subject, and shown me that there would be danger in generally lessening the denominations of the paper issued, I should be uncandid not to add, that it still appears to me, there would be a preponderance of advantages in having a part of a smaller amount. I shall not trouble you at present with any further reasons for this opinion.

I have immediately on the receipt of your letter taken measures for the publication of your advertisement in the newspapers of this State.

You will perceive by the inclosed cash account that I have received five and twenty hundred dollars; this was procured in part of the loan I mentioned to you. It was chiefly paid to me in specie, and I have exchanged it with Colonel Pickering and Mr. Duer for your notes; the latter had twelve hundred dollars. Taxes collect slowly, but I must shortly receive two or three hundred pounds more, of which Mr. Duer will have the principal benefit, as it appears by your letter to him, that you hoped he might receive three thousand dollars from me.

As I may shortly set out for Philadelphia, I wish to surrender to Mr. Tillotson, as soon as you think proper, the office in which he is to succeed.

I have the honor to be,
With sincere respect and esteem,
Sir, your most obedient servant,
Alex. Hamilton.

HAMILTON TO LA FAYETTE.

Albany, November 3, 1782.

Since we parted, my dear Marquis, at Yorktown, I have received three letters from you; one written on your way to Boston, two from France. I acknowledge that I have written to you only once; but the reason has been, that I have been taught daily to expect your return. This I should not have done from my own calculations; for I saw no prospect but of an inactive campaign; and you had much better be intriguing for your hobby-horse at Paris, than loitering away your time here. Yet they seem to be convinced, at head quarters, that you were certainly coming out; and by your letters it appears to have been your own expectation. I imagine you have relinquished it by this time.

I have been employed for the last ten months in rocking the cradle and studying the art of _fleecing_ my neighbors. I am now a grave counsellor-at-law, and shall soon be a grave member of Congress. The Legislature, at their last session, took it into their heads to name me, pretty unanimously, one of their delegates.

I am going to throw away a few months more in public life, and then retire a simple citizen and good _paterfamilias_. I set out for Philadelphia in a few days. You see the disposition I am in. You are condemned to run the race of ambition all your life. I am already tired of the career, and dare to leave it. But you would not give a pin for my letter unless politics or war made a part of it. You tell me they are employed in building _a peace_: and other accounts say it is nearly finished. I hope the work may meet with no interruptions. It is necessary for America; especially if your army is taken from us, as we are told will soon be the case. That was an essential _point d’appui_, though money was the _primum mobile_ of our finances, which must now lose the little activity lately given them. Our trade is prodigiously cramped. These States are in no humor for continuing exertions. If the war lasts, it must be carried on by external succors. I make no apology for the inertness of this country: I detest it: but since it exists, I am sorry to see other resources diminish.

Your Ministers ought to know best what they are doing; but if the war goes on, and the removal of the army does not prove an unwise measure, I renounce all future pretensions to judgment. I think, however, the circumstances of the enemy oblige them to peace.

We have been hoping that they would abandon their posts in these States. It no doubt was once in contemplation, but latter appearances are rather ambiguous. I begin to suspect that if peace is not made, New-York and Charleston, the former at least, will still be held.

There is no probability that I shall be one of the Commissioners of Peace. It is a thing I do not desire myself, and which I imagine other people will not desire.

Our army is now in excellent order, but small.

The temper we are in respecting the alliance, you will see from public acts. There never was a time of greater unanimity on that point.

I wish I durst enter into a greater detail with you; but our cipher is not fit for it, and I fear to trust it in another shape.

Is there any thing you wish on this side the water? You know the warmth and sincerity of my attachment. Command me.

I have not been so happy as to see Mr. De Segur. The title of your friend would have been a title to every thing in my power to manifest.

* * * * *

Yours _pour la vie_,
A. Hamilton.