Title: Introductory Note: To Frederick A. C. Muhlenberg, [16 December 1793]
From:
To:

On December 16, 1793, the Speaker of the House of Representatives “laid before the House a Letter from the Secretary of the Treasury, requesting that a new inquiry into his official conduct may be instituted, in some mode most effectual for an accurate and thorough investigation; which was read, and ordered to lie on the table.” Because of Republican criticism of the manner in which the 1793 investigation into the Treasury Department had been conducted, Hamilton had decided during the early part of the summer to make this request when Congress reconvened.
After Hamilton’s letter had been read, William B. Giles of Virginia, who had directed the 1793 inquiry, proposed several resolutions concerning the examination and suggested that a committee be formed to report to the House. Giles, however, did not press for immediate consideration of his resolutions, for as he pointed out on February 24, 1794, he had thought that it “might have been deemed a violation of delicacy and propriety” to pursue a general investigation while the Fraunces affair was being examined. At the same time he stated that after the Fraunces petition had been disposed of “the delicate crisis of our external affairs” precluded a discussion of the examination of the Treasury. As a result, it was not until late in February, 1794, that the House turned to Giles’s resolutions.
Meanwhile Albert Gallatin had proposed a series of resolutions in the Senate on January 8, 1794, calling for a full statement of Treasury operations from the commencement of the Federal Government. The Senate passed these resolutions on January 20, 1794, but Gallatin’s right to a seat in the Senate was contested, and on February 28, 1794, he was deprived of his seat. In large part because of the absence of their author, these resolutions were never implemented.
On February 24, 1794, in the House of Representatives Giles called up the resolutions which he had proposed the previous December. These resolutions read as follows:
“Resolved, that a committee be appointed to examine into the state of the Treasury Department, and that they be instructed to report to the House, generally, thereon; and, among other things, more particularly:
“1st   Whether the forms of keeping the accounts be calculated to effectuate the dispositions of the public moneys, as prescribed by law.
“2d   Whether the cash receipts, from domestic resources, have exceeded, equalled, or fallen short, of the domestic cash expenditures, from the establishment of the Government, to the first day of January, one thousand seven hundred and ninety-four; remarking the dates and amount of any excess, or deficiency, quarterly.
“3d   Whether the sinking fund, at the time of its establishment, consisted of cash or bonds; specifying, in the latter case, as nearly as may be, the several dates at which any sum or sums of such bonds became payable.
“4th   What proceedings have been had under the laws of the fourth and twelfth of August one thousand seven hundred and ninety, authorizing loans of money, and what authorities were given for those proceedings; That they also state, in dollars and cents, the gross principal of debt in Holland, produced to the United States by the said loans, and the precise amount of the principal of the foreign debt, which has been discharged thereby; what portion of such loans has been drawn to the United States, at what dates and by what authority; in what manner such drafts have been applied; under what forms and checks these drafts were made; and whether the moneys raised thereby were immediately deposited in the Treasury; if not, in what places, and to what amount, were such moneys deposited; how much time elapsed after such loans, before the said moneys came into the Treasury; whether a compleat fulfilment of our engagements to France was, in any degree, obviated by such drafts; whether any portion of the French debt remained unpaid, at the end of one thousand seven hundred and ninety-two; and whether any balance of the said debt is yet unpaid; And that the committee do also report the date of the first information to this House, communicating the said drafts; and whether any call of the House was made upon the Treasury Department, which embraced the ideas of a previous disclosure thereof.
“5th   That the committee be also instructed to report the whole amount of the existing debt of the United States, discriminating the domestic from the foreign debt, and specifying the amount of domestic debt bearing a present interest of six per centum; the amount bearing a present interest of three per centum, and the amount deferred: That they also report the increase or decrease of the whole debt of the United States, and the operation of the sinking fund to the end of the year one thousand seven hundred and ninety-three.”
The House passed Giles’s resolutions on February 24, 1794, and on the same day a committee was appointed which consisted of Abraham Baldwin of Georgia as chairman, John Hunter of South Carolina, Joseph McDowell of North Carolina, William B. Giles, Christopher Greenup of Kentucky, George Dent of Maryland, Henry Latimer of Delaware, William Irvine of Pennsylvania, John Beatty of New Jersey, Philip Van Cortlandt of New York, Nathaniel Niles of Vermont, Zephaniah Swift of Connecticut, Francis Malbone of Rhode Island, Peleg Coffin of Massachusetts, and Paine Wingate of New Hampshire.
On February 27 the House resolved that “the committee appointed to inquire into the state of the Treasury Department, have power to send for persons, papers, and records.” At a committee hearing on March 1, 1794, which Hamilton attended, the committee agreed to “meet every Tuesday and Thursday at 7 O’clock in the evening, and every Saturday at 10 o’clock in the morning, until the object of their appointment be accomplished.” The committee also agreed that its members would “proceed on the execution of the business as follows: 1st. They will enquire into the mode of transacting the business at the Treasury, as to the collection, keeping and disbursement of the public monies, as to the duties of the respective Officers, and as to the forms of Accounts. 2nd. That they will examine each distinct head of enquiry, in succession, in the order specified in the resolutions. 3d. That the Secretary of the Treasury be requested to exhibit to the Committee at their next meeting a view of the subject contained in the first Resolution.” The committee adopted a final resolution requesting the Secretary of the Treasury “to procure a room, as convenient, as possible, to the Treasury Office, in which, the Committee shall hold their meetings.”
The committee continued to meet until its report was completed on May 22, 1794. Hamilton frequently met with the committee and supplied its members with information on his conduct of the Treasury Department. The following extracts from the committee’s minute book indicate its progress from March 1 until completion of its report and Hamilton’s participation in its work:

March 4.
“The Secretary of the Treasury, Comptroller and Register, attended to give information, as to the mode of transacting business at the Treasury &c.…”

March 13.
“Deposits at and other proceedings with the Banks explained.”

March 18.
“2 Statements of receipts & expenditures exhibited by the Secretary of the Treasury.”

March 25.
“Query of the Secry. as to authorities stated, for answer of Comee.”

March 29.
“Resolved, that the Secretary of the Treasury be requested to state to the Committee, by what authority, any portion of the monies borrowed abroad, have been drawn to the United States. Ordered to be transmd. to the Secy.

“Sub-Committee of 3 (Mr. Baldwin, Mr. Giles and Mr. Swift) balloted for to commence the Report on the first part of the Reson.”

April 1.
“Further Statements exhibited by the Secy of the Treasy, as to authorities.”

April 5.
“Resolved, that it would be satisfactory to the Committee, that the paper submitted to them, April 1st. 1794 by the Secretary of the Treasury, respecting the point of authority, under which, monies borrowed abroad, have been drawn to the United States, should be presented to the President of the United States; and that the Secretary should obtain from him, such declaration concerning the same, as the President may think proper to make.”

April 10.
“Secretary of the Treasury attended, and produced the answer of the Presidt. to the resolution of the Commee. on Saturday last, respecting authorities for drawing monies borrowed abroad to the United States.”

April 12.
“Report of Sub-Committee on the forms of keeping public accounts at the Treasury read.

“Sub-Committee to report to the Committee at the next meeting, the practicability of obtaining from the Treasury department, a statement of balances outstanding on the books of the Treasury, & the steps which have been taken to recover the same.”

April 19.
“Sub-Committee presented some additional parts of the report which were adopted by the Committee.”

April 24.
“Sub Committee presented further parts of the report which were adopted.”

April 29.
“Sundry letters from the U. S. Bankers at Amsterdam to the Secy of the Treasury, laid before the Comee. by the Secy. & copies of them left.”

May 1.
“Further part of the Report adopted by the Committee.”

May 3
“Statement of the debt of the United States, from the 1st. Janry. 1791, to the 31st. decr. 1793, for which, certificates have been issued, exhibd. by Comptr.

“Letter from the Secry. of the Treasy. accompanying statement of informal advances.”

May 9.
“Secry. of Treasy. & Comptr. attended & suggested some alterations in the report, some of which were agreed to.”

May 12.
“Bank Officers Affidavidavits refd. to Sub. Comee.”

May 15.
“Statement in regard to the increase or decrease of the whole debt of the United States—refd. to Sub committee.”

May 20.
“Report of the Sub Committee respecting ‘increase or decrease of the public debt,’ read and agreed to be adopted. “Paragraph relating to affidavits of the Bank Officers agreed to.”

May 22.
“Report compleated, and Committee adjourned sine die.”

The report of the committee was submitted to the House of Representatives on May 22, 1794, and was “read, and ordered to lie on the table.” The report is for the most part a clerk’s copy of various reports and papers that Hamilton and Oliver Wolcott, Jr., comptroller of the Treasury, submitted to the committee and to the House of Representatives. Although the differences between the committee report and the Treasury Department papers from which it was taken are few, some of them are indicative of the wide gulf between Hamilton’s views and those of his critics.
From Hamilton’s report of March 4, 1794, the committee deleted a sentence in which Hamilton stated what to him had been a necessary principle of the Treasury Department—that “all monies in the Treasury form a common mass.” During the 1793 debates over Hamilton’s conduct of the Treasury Department it had sometimes appeared that some of Hamilton’s critics believed that moneys received from a specific source and appropriated to a specific purpose should be held apart from other funds in the Treasury until they were expended. In addition, the committee omitted from Hamilton’s discussion of “informal advances” from the banks his statement that “These advances have been made in the confidence, that the Secretary of the Treasury would not request them, but in cases, in which there was a moral certainty of a future provision, and in which, justice and good faith would necessarily oblige the Legislature to make it.” Hamilton’s reports in 1793 had been censured for this kind of interpretive statement. Although Hamilton emphasized to the committee the rapidity and safety of Government operations when conducted through a bank, the committee report, by twice pointing out that Government deposits were “auxiliary to the general operations of the Bank, in the same sense with all other deposits,” underscored the anti-bank contention that public funds were being used for private gain.


Title: Report of the Commissioners of the Sinking Fund, [16 December 1793]
From: Adams, John,Commissioners of the Sinking Fund
To:

[Philadelphia, December 16, 1793]

The Vice President of the United States and President of the Senate, The Chief Justice, The Secretary of State, The Secretary of the Treasury, and the Attorney General, respectfully Report to Congress as follows,
That pursuant to the Act intitled “An Act making provision for the Reduction of the Public Debt” and in conformity to Resolutions agreed upon by them and severally approved by The President of the United States they have since their Report of the 17th. of November 1792. caused purchases of the said Debt to be made through the Agency of Samuel Meredith and Jonathan Burrall respectively to the amount of five hundred twenty three thousand seven hundred and thirty five dollars & twenty one Cents in Stock for which there have been paid in Specie four hundred twenty six thousand eight hundred and forty two Dollars and seventy five Cents.
That pursuant to the Act intitled “An Act supplementary to the Act making provision for the Debt of the United States” and in conformity to resolutions agreed upon by them and severally approved by the President of the United States they have also caused purchases of the said Debt to be made subsequent to their said Report of the 17th. of November 1792 to the amount of one hundred [and twenty two thousand five hundred and thirty Eight Dollars and fourteen Cents] in Stock, for which there have been paid [Seventy five thousand six hundred and sixty Dollars and Eighty seven Cents] in specie.
That the several Documents accompanying this Report marked (Aa) B, A and No 1. to 7 with their Inclosures shew the aforesaid purchases generally and in detail including the places where, the time when, the prices at which, and the persons of whom they have been made.
That the purchases now and heretofore reported amount together to two million & nineteen thousand one hundred & ninety three dollars & ten Cents in Stock for which there have been paid one million three hundred ninety four thousand six hundred sixty four dollars & forty Cents in Specie as will be more particularly seen by the Document aforesaid marked (Aa).
Philadelphia 16th. December 1793.
[On behalf of the Board]
John Adams


Title: To Alexander Hamilton from Oliver Wolcott, Junior, 17 December 1793
From: Wolcott, Oliver, Jr.
To: Hamilton, Alexander

Treasury DepartmentComptrollers Office Decr. 17th. 1793
Sir

I herewith transmit an Account of the Receipts & Expenditures of the United States for the year 1792, stated from the Records of the Treasury Department pursuant to the permanent Order of the House of Representatives of the 30th. of December 1791. It will be observed that the statement of appropriations & Expenditures now presented, varies in the detail of the Arrangement, from that which was exhibited to Congress in February last; all the entries in the public books necessary to this arrangement, not having been compleated when that statement was made. It will however be found, that the amounts of Receipts & Expenditures, and the balance in the Treasury at the end of the year, correspond exactly with the exhibits then made, except, that the sum of 4,772, 5/100 Dolls is deducted in the present statement, both from the aggregate of payments & rects. reported by the Treasurer. The particular sums which compose this amount are Stated, and will be found to consist of certain unexpended balances of monies advanced to sundry persons, which were repaid into the Treasy. during the year, and which are to pass to the Credit of the funds from which the advances were made. This arrangement being a mere matter of form, has no effect upon the resulting balance. In the general statement of appropriations & Expenditures, the balances unexpended at the close of the year 1791, are brot. forward from the account rendered to that period; to which are added, the appropriations, in relation to which expenditures were made at the Treasury during the year 1792. To these sums, there remain to be hereafter added, the Interest on that portion of the domestic debt, which was not subscribed to the loan, or registered at the Treasury so as to be subject to the payment of Interest in Specie; also the Installments of principal & the Interest of the Foreign Debt to the close of 1792, the accounts of which have not been difinitively settled: Though the amot. of both these objects may be estimated with considerable certainty, yet they have been purposely omitted in the accot. now rendered; as it is presumed to have been the intention of the House, that ascertained results, shou’d alone be presented in the annual statements, which are directed by their permanent Order, to be framed.
This construction has been the more readily adopted, as by this means, the annual Statements wou’d be preserved free from those errors which must necessarily attend documents founded on estimates, and render them, a series of compendious & as is presumed, satisfactory histories, of the transaction of the Treasury, for those periods to which they relate. The accounts which respect the foreign Debt are now in a train of settlement; they would have been compleated before this time, had not the public business been unexpectedly interupted the past season; in case the settlements are speedily consummated, as it is expected will be the case, the foreign accounts will form a proper supplement to those now exhibited.
The balance of the Appropriations unsatisfied at the end of 1792, with the additions before referred to, remain a charge against the domestic revenue, except the sum stated as part of the debt to France & the debt due to certain foreign Officers; which sums are payable out of the proceeds of the foreign Loans; & except certain surplusses which will remain, after satisfying the objects for which the appropriations were made—these surplusses may be estimated with tolerable precision, but it is necessary that great care & accuracy shou’d be observed in closing the Accounts in the public books; the sums are therefore for the present Stated according to the Acts of Congress.
I cannot forbear to suggest, that it is a matter of importance, both in respect to the utility of the information to be communicated, & to the reputation of the Officers concerned, that these documents should be printed with accuracy; and in these points of view it would be satisfactory, if the House would direct them to be referred for the purpose of being printed under the superintendance of the Treasury; in case they are pleased so to direct, a suitable number of the annual statements can be hereafter printed & laid before the House in the month of December annually; for the accuracy of which the Treasury Department will be responsible.

I have the honour to be with great respect, Sir, your obedt. servt.

The HonorableAlex: Hamilton EsqrSecy of the Treasy.


Title: To Alexander Hamilton from Tench Coxe, 18 December 1793
From: Coxe, Tench
To: Hamilton, Alexander

[Philadelphia, December 18, 1793. On December 23, 1793, Hamilton wrote to George Washington: “The Secretary of the Treasury has the honor to submit … a communication from the Commissioner of the revenue, dated the 18th of December respecting Mr. James Collins.” Letter not found.]


Title: From Alexander Hamilton to Tench Coxe, 18 December 1793
From: Hamilton, Alexander
To: Coxe, Tench

Treasury Department December 18 1793
Sir

It is my desire that you proceed immediately in the plan of purchasing, for the account of the United States, Spirits lawfully distilled in the western Surveys of Pennsylvania and Virginia, and in Kentucky, in the manner which was directed upon the last occasion. A fund of Ten Thousand Dollars in addition to the former sum of ten thousand Dollars may be applied to the purchases at proper places. The Spirits are to be drawn, so far as practicable in proper proportions from the several surveys abovementioned. When purchased they are to be sent to the most convenient ports on the River Ohio, to be delivered for safe keeping to the Quarter Master with the knowledge and under the direction of the Commandant of the Post. The money to be expended in purchases of the Citizens of Pennsylvania will be paid at the Treasury upon regular and proper Orders of the persons employed and Authorized. The remainder of the Sum of Ten Thousand Dollars you will cause to be extracted from the public Monies in the hands of the Supervisor of Virginia. The Spirits to be purchased are destined as before for the use of the Army.
With great Consideration   I am Sir   Your Obedt Servant

A H
Commissioner of the Revenue


Title: From Alexander Hamilton to Thomas Jefferson, 18 December 1793
From: Hamilton, Alexander
To: Jefferson, Thomas

Treasury Department Decmr. 18th1793
Sir,

I am to acknowledge the receipt of an extract of a letter from you to Mr. Hammond of the 5th. of September 1793.
As a preliminary however to the Instructions to be given to the Collectors, it will be necessary that you inform me, whether Mr. Hammond has assented to the proposed arrangement as well as the number and names of the prizes that come within the description.
I have the Honor to be   with great respect   sir   Your Most Obedient servant

A HamiltonSecy of the Treasy
Thomas Jefferson EsquireSecretary of State


Title: Report on an Account of the Receipts and Expenditures of the United States for the Year 1792, 18 December 1793
From: Hamilton, Alexander
To: Speaker of the House of Representatives

Treasury Department,December 18th, 1793.[Communicated on December 19, 1793]
Sir,
[To the Speaker of the House of Representatives]

I have the honor to transmit herewith, an account of the receipts and expenditures of the United States for the year 1792, pursuant to a resolution of the House of Representatives, of the 30th of December, 1791, accompanied with an explanatory letter to me, from the Comptroller of the Treasury.
I trust the House will consider the interruption to business, occasioned by the late calamity in this City, as a sufficient apology for the short delay which has attended the presenting of the statement.
With perfect respect, I have the honor to be,   Sir, Your most obedient Servant.

Alexander HamiltonSecretary of the Treasury.
The HonorableThe Speaker of the House of Representatives.


Title: Enclosure: [Monies Received into the Treasury], [18 December 1793]
From: Hamilton, Alexander
To: Speaker of the House of Representatives

A Summary Statement of Monies Received into the Treasury  of the United States, in the Year 1792.

From the Collectors of Imports and Tonnage, Agreeably to the Preceding Statement:

On warrants passed to the credit of the respective collectors in the year 1791, which are included in the treasurers accounts for the year 1792.
86,025.42

On warrants included in the treasurers accounts for the year 1792, which are passed to the credit of the respective collectors in the year 1793.
70,714.30

On warrants included in both the accounts of the treasurer, and of the respective collectors for the year 1792.
3,286,331.13

3,443,070.85

From the Supervisors of the Revenue, Agreeably to the Preceding Statement.

On warrants included in both the accounts of the treasurer, and of the respective supervisors for the year 1792
163,704.01

On warrants included in the treasurers accounts for the year 1792, which were paid by supervisors, whose accounts are not finally adjusted
45,238.80

208,942.81

From Clement Biddle marshal for the district of Pennsylvania, for fines and forfeitures arising under the act entitled “An act for the punishment of certain crimes against the United States

118.

From Samuel Hodgdon for arms and accoutrements sold out of the public stores, for the use of the state of South Carolina, by direction of the President of the United States

4,240.

From the president directors and company of the bank of the United States, for the excess of the first half yearly dividend on the capital stock held by the United States, beyond the interest payable on the loan of two millions of dollars, obtained from the said bank

8,028.

Funds Arising from Ballances Found due On Accounts, Which Originated Under the Late Government.

From David Trumbull, on his lottery agency
189.96

James Watson, in the quarter masters department
1,080.76

Samuel Davidson, in the department of the commissary of hides
37.35

John Richards agent for John Moland, in the department of the deputy commissary general for the state of Connecticut
427.83

Henry Hollingsworth, late deputy quarter master general
419.54

William Shippen, late director general of military hospitals
2,547.38

4,702.82

Foreign Loans.

From the president directors and company of the bank of New-York, for the produce of bills of exchange drawn on the agents for negotiating the loans in Hol-land
327,136.22

From the president directors and company of the bank of North America, for the produce of bills of exchange drawn on the said agents
218,766.67

From John Kean cashier of the bank of the United States for the amount of bills of exchange drawn on the said agents, for the purpose of effecting the subscription to said bank, on behalf of the United States
2,000,000.

2,545,902.89

Domestic Loans

From the president directors and company of the bank of the United States, to replace the like sum which was drawn from the funds arising from foreign loans, to effect the subscription to said bank
2,000,000.

From the president directors and company of the bank of the United States, on account of the loan of 523,500 dollars, made by said bank, pursuant to the act entitled “An act for raising a farther sum of money for the protection of the Frontiers, and for other purposes therein mentioned”
400,000.

From the president, directors and company of the bank of North America, for a loan made by said bank, without interest
156,595.56

2,556,595.56

Repayments of Monies Previously Advanced from The Treasury.

No. 1. By Jeremiah Olney, agent for paying military invalids
36.08

2. Joseph Nourse, register of the treasury
821.75

3. Jonathan Trumbull, speaker of the house of representatives
2,435.67

4. Abraham Hunt, agent for purchasing horses for the army
32.

5. Henry Knox, secretary at war
2,304.38

   5,629.88

8,777,230.81

From which deduct the amount of the said repayments No. 3, 4 and 5, being also deducted in the account of expenditures; page 24 and 41.

   4,772.05

Amount carried to a general account of receipts and expenditures, in page 59.

8,772,458.76

Note—The above mentioned repayments No. 1 and 2, were deducted from the expenditures ending December 31st, 1791.