Title: To Alexander Hamilton from Thomas Randall, 14 August 1791
From: Randall, Thomas
To: Hamilton, Alexander

New York August 14th 1791
Sir.

Agreeably to your request, I shall endeavor to communicate, in as clear a manner as my abilities will admit, the ideas which result to me, from my experience in the trade from this country to Canton.
It is needless to a gentleman of your historical information to make any remarks on the representation given by writers, on the government of China, as they must be merely speculative, and would not in the least elucidate those points of information, which you wish to consider from the noble motive that actuates you, of endeavoring to promote and secure a happy and prosperous trade to your country; but, it may be necessary to detail to you, how the merchants from this country trading to Canton, actually feel and suffer under the operations of the Chinese government, and which injuries, perhaps, may be remedied by regulating the mode of conducting the trade from hence to that port. I shall therefore begin with a recital of events & facts.
In the year 1784, on the 22d of February, the ship Empress of China, being the first ship that ever sailed from the United States for China, was sent to Canton by a company of American Merchants; her cargo consisted of Spanish dollars, about four hundred peculs of genseng, a pecul being 133⅓ lb English Avoirdu poids, some cordage, wine, lead, iron a few furs, with other trifling articles not worth enumerating. In this ship I went as a joint supercargo with Samuel Shaw Esq, the present Consul at Canton. Our reception from all the European nations who had factories there, viz the English, Dutch, French, Danes, Swedes, and imperialists, was friendly and polite. From them we endeavoured to obtain all the information we could respecting the Chinese, and the mode of transacting business with them. We were informed that our ship must be measured in order to Ascertain the port duties she would have to pay, that the trade was put by the Chinese government in the hands of a body of Merchants, then eight in number, called Hong Merchants, that we must obtain one of these merchants as a security merchant whom the Mandarines

   Mandarine a term for every Officer of government whether civil or military.

 considered as responsible in his own person and fortune for all the improper conduct or trade that might be committed by the ship, that this was expensive, and no one would accept it, unless we dealt with him, and the appearance of our trade promised him a handsome profit. But, in this instance, on our application to the first Hong merchant named Pankikoa, he consented to become Trader, or Security merchant for the ship. However, it may be here necessary to remark, that when the funds of a ship are small, and that every Hong merchant declines the Office, the whole body of them under the name of the cohong are considered as security for said ship, and they name the first merchant of their number to act in that capacity, each paying their portion to him of the loss he sustains, in consequence of the trade of the ship not being sufficient, to enable him to pay the extra fees extorted by the mandarines. This merchant grants all your permits for either discharging or taking in your cargo. Our business of a Security merchant being settled, and our ship measured, we conceived ourselves at liberty to trade with any individual of the Cohong, or whom else we pleased, but in this pursuit we soon found ourselves exposed to intrigues of which we were not apprized. We experienced that this body of Hong merchants possessed more power than we were aware of; that they had an influence over all the other merchants in Canton, who are obliged to trade under the Chop, or permission of one of these Hong merchants, who each of them had their class of friends; and that private merchants could not ship any goods they might vend, or bring up any they might purchase, or even go to look at goods, without the Chop, or particular permission of one of the Hong merchants; that Pankikoa our security merchant was a mandarine, as well as a merchant of great opulence, and had an influence over all the rest of the Hong Merchants; and that not one of them would make us an offer equal to Pankikoa, who himself offered us but one hundred & fifty dollars the pecul, a price we thought far inferior to what we could get, if we could obtain a freedom in our trade. Perhaps Pankikoa in conjunction with the other Hong Merchants, had monopolized the business of purchasing our genseng, the only article of much consequence in our cargo, and over awed the other merchants not of the cohong from making us any offers, for future experience has led me to conclude, and the fact been verified, that this body of Hong merchants sometimes have agreed together to affix a price at which they would purchase merchandise, and that each individual of them has broke his engagement to the other, by giving a higher price, perfectly relying on the integrity of the European, that he would not betray him in the price given, but the fact being discovered, they have come to open rupture, broke their compact, and by court or mandarine influence, if I may be allowed the term, in gratification of their revenge ruined the weak hong merchant of their body, who has been so unfortunate as to be detected, although every one of them had been guilty of similar conduct.
In further confirmation of what I have writ, I must add that we were applied to by private merchants, who did go down to the ship to examine the genseng, came up, and offered us conditional prices according to the quantity we might sell, and that they would leave us earnest money to secure the purchase of our genseng at the price agreed on, which merchants have had the assurance and baseness to return next day, breaking their agreement & telling us they would give but one half of the price they had actually agreed to purchase for the preceding day, and others told us, they would, but could not purchase for fear of drawing on them the resentment of the Hong merchants. Thus situated, new adventurers in this commerce, anxious for the interests of our employers, and our minds agitated with doubts, we advised with an European friend, who told us, he knew of no remedy, but to wait and exhaust the Chinese patience, a difficult thing to do, if we had not resources independant of that article for our return cargo, especially as we had a larger quantity of genseng than ever had been brought to the Chinese market. Thus circumstanced we delayed selling our genseng from the time of our arrival which was the 27th August, ’till the 22d of September, when we sold to Shykinkoa, a hong merchant, for one hundred & fifty five dollars the pecul, but were afterwards obliged to abate five dollars on the pecul in consequence of it not all proving equal to the sample given.
I shall now make a few remarks on the article of genseng, and the quantity at Market that season, and observe upon the sales of the remainder of the Cargo.

Quantity of Genseng at market in the year 1784

brought by ship Empress of China
445

Portuguese ships
300

English ships
135

about ten peculs of old genseng remaining at market
 10

890 Peculs.

The whole of this genseng was sold according to quality, and at various prices, from one hundred & fifty, to three hundred & fifty dollars the pecul, but in the year 1783 it had been sold for three thousand dollars the pecul.
I have further to observe that after the sale of our genseng to Shykinkoa, he offered to release us from our engagement from which we judged that he had no idea himself of its being a very lucrative bargain to him, and he did return us a small quantity of six or seven peculs belonging to the officers of the ship of better quality, and which we afterwards sold for them, at one hundred & eighty, and two hundred dollars the pecul. The remainder of our cargo sold for about the cost, the cordage and wine being bought by Europeans, the lead, iron, furs &c by the Chinese. Lead, is an article though it seldom yields any profit, will always sell for Cash; ours sold at four taels

10 Cash makes a candareen
⎫

10 Candareen a mace
⎬
72 cand. = Spanish dollar

10 Mace a tael
⎭

 per pecul. There was but three or four tons of iron belonging to the officers & I imagine it would have been very difficult to have got rid of a larger quantity.
I shall now proceed to relate a second and third voyage.
My second voyage commenced in February 1786 and we returned 2d August 1787. There is scarcely anything new worthy remarking in the course of this voyage, than that there were four American ships at Canton of about three hundred tons burthen each, that the quantity of genseng brought that season to market was upwards of two thousand peculs, which sold from one hundred & fifty, to two hundred dollars the pecul, according to the quality, and the extortion of the mandarines for fees of every kind had rather increased. Our funds were small, and quite inadequate to the voyage. We were therefore obliged to obtain credit, and was defrauded in the quality of the teas, they not proving equal to the samples tried, and for which we in our next voyage obtained an abatement. I shall therefore without delaying your time proceed to relate my third and last voyage, which commenced in December 1787 and was intended for India & China in one season, but some unexpected delays taking place at Madeira and finding on my arrival at Madrass the markets glutted with wine, the article of which my cargo was chiefly composed, but however having sold a part of the wines, I proceed to Batavia, where they granted me permission to sell the remainder of my wine, which I could not effect the market being glutted, and leave to purchase sugars, which I did, and carried to Bombay, where I sold the remainder of my wine, and obtained a handsome profit on the sale of my sugars. From Bombay I took a freight of cotton for Canton where I arrived the 16th of October 1789 and from thence took in a Cargo for this port where I arrived the 29th July 1790.
From Batavia by an English East India company’s ship, I shipped my genseng to China, which arrived there in the beginning of the year 1789, which was sold by my agent there for 65 dollars the pecul, and to take bohea tea in payment. Large quantities of genseng also arrived in the year 1789, say upwards of two thousand peculs, and the price fell to fifty five dollars, to receive teas in payment, and I believe genseng of a tollerable good quality, would not have sold for Cash, for more than forty dollars the pecul. However, to conclude my remarks on the article of genseng, it appears to me from what I have observed respecting it, that there might be shipped to Canton annually from this country five or six hundred peculs, & perhaps a larger quantity, even to nine hundred peculs, provided none was exported from this country to Europe, although the Hong merchants say two hundred peculs annually, would be sufficient for the supply, and for that quantity they could contract to give a high price, that is four hundred dollars the pecul. This genseng however should be of the best quality, and well garbled, in this situation, and the quantity not exceeding five hundred peculs: I believe it would bring readily four hundred dollars the pecul, especially as teas would be received in payment.
In Canton it is customary, unless a contrary agreement is made, for the Chinese to pay all duties either of import, or export, owing to the difficulty the Europeans have of determining what the duty realy is, or perhaps there is none, but what depends upon the caprice of the Mandarines, and varies very often the same year. They say genseng pays a duty to the Emperor of sixty dollars the pecul. They therefore start into bags all the genseng they purchase from the Europeans, and Americans, previous to their bringing it up from the ship to Canton, as the Mandarines in weighing it, would make little or no abatement for tare if brought up in Casks. It is also to be observed that bad genseng pays a duty the same as good, and the bad being mixed with the good, it is a work of time to seperate it. Therefore every pecul of bad genseng adds to the cost of the good. For this last season although they bought the whole, good & bad together, yet after its being weighed to ascertain the quantity, and having allowed the price agreed for, yet they desired the worst to be thrown away, as not being worth the amount of the duty paid on it.
I am led from an examination of the Tartary genseng, which still sells for nearly its weight in gold, to conclude that this country produces two species of genseng, one of them nearly of equal quality to the Tartary genseng, provided proper pains was taken to gather it in due season, and care taken in properly drying it. But this I think cannot take place at present, as the trade is on the decline, and probably may be totally lost in the hands of individuals, it requiring too much capital for a single merchant to risque, and when a company is formed, it is made up in such a hasty manner, that they are obliged to purchase such genseng as is at market, and have never carefully attended to have it well garbled. Genseng shipped from England, though originally from this country, is in higher repute on this account, for they more carefully cull it.

This year immense quantities of cotton was shipped by the English, on board their own & foreign bottoms from Bombay and a small quantity from Madrass to Canton, estimated to be near one half more than the annual demand, which, however, had increased, it was said owing to the failure of the Chinese crops, and the increased demand for tea, making them attend more to the culture of that article. Near fifty thousand bales of cotton arrived, averaging about four hundred pounds English weight per bale. This reduced the price from fourteen and fifteen taels the pecul, down to eleven and twelve taels cash. The cotton being at a high price, and freight at Bombay, the shippers suffered considerable loss, and were obliged also to credit the Chinese merchants a season over for large balances due them, on account of the sales of their cotton to them. These cotton ships, as well as other ships from Bengali, and other parts of India, (commonly called Country ships) do not frequently get all money for their cargoes, and as they take but little merchandize in return, they therefore sell to the Chinese, and transfer the debt to the English East India company, and receive bills from them on London, at twelve months sight, at 5/3, to 5/6, Stg for the dollar. However this exchange varies, and the rate is declared by the English company’s supercargoes at Canton every season. The English company therefore guard as carefully as they can, against English subjects trading to China, purchasing bills of any other person, as it saves them from making a considerable remittance in specie, but, it is what they cannot intirely prevent.
I shall now relate a few things respecting the sale of the sea Otter skin, that has been lately sold in China, both by the English and American vessels.
The ship Columbia, Robert Grey, Commander, a vessel fitted out from Boston, arrived in Canton November 18th 1789. with about fifteen hundred sea Otter skins of various sizes and quality, the Commander of which ship, valued upon me for the transaction of his business, and I expected to have made a very advantageous sale of those skins, from there being much wanted by the Mandarines. Pinqua, a Hong merchant, and others informed me, that probably, I should eventually obtain my price, if I waited with patience, as the Cohong, or body of Hong Merchants would be obliged to purchase them & present the best to the Viceroy of Canton, and the other Mandarines of rank, that the hong merchants would have to divide the cost of this involuntary present with each other, and that the remaining number of small skins would sell but for a trifling sum, also that no private merchant would dare to purchase them, as they were known to be wanted by the mandarines for their own use. I therefore, in order to make the best of the market, as Captain Gray had no other funds, advanced the necessary money to refit his ship to take in a cargo for America, and upon an estimate of the highest price I might probably obtain for the skins, found the sum would be insufficient, after defraying the expences of the ship, to load her fully with bohea teas. I then determined to fill her up on my own account with that article on freight, in order to render the voyage as lucrative as possible to the owners. With this idea, I contracted for the amount of bohea teas I intended to load on board the ship, and no part of my business as yet suffered any delay. After some difficulties in obtaining a security merchant for the ship, owing to the nature of her cargo, and the smallness of her funds, I was at last informed by the linguist, that she was secured in the name of the Cohong, and that Monqua, the then head hong merchant, would grant a chop for landing my skins at the factory. This was accordingly obtained, but produced an Altercation between Pinqua and myself, who said it would be a great injury to him, as he rented me the factory, the other part being occupied by himself; that on the skins being landed there, the Mandarines would come to look at them, and whatever they took he must pay for, and from policy must give them as a present, or it would draw upon him their resentment if he did otherwise, that I might land them at an European factory, where no Chinese merchant resided, and in that case he would be on a footing with the other Hong merchants, who would have to divide the amount of whatever skins the mandarines might take, and each pay his part of it. Being unwilling to injure Pinqua, with whom I was on friendly terms, I obtained a factory for the purpose. The skins were brought up, and accordingly stored there.

My patience was now exhausted by the various and continued applications to examine the skins, offers made to purchase, accepted by me, and then broke upon the part of the Chinese, who informed me they could not buy for fear of the mandarines. Matters continued thus through the months of December and January, when a private Chinese merchant offered to buy them, provided the Hong merchants would grant me in writing permission to sell them, which I applied for but could not obtain. He then made another proposition, that he would buy them, provided I would secure him from there being taken away afterwards by the Mandarines, or the hong merchants. There appeared to me something insidious in this proposition, and I answered I could not undertake to protect him against his own government. Pinqua soon after informed me, the Viceroy had given orders to Monqua the head hong merchant to purchase them, in order that he might make choice of the best, and there came out from the city a Mandarine of rank, who I was informed was an Officer in the Viceroy’s family. He had them sorted, and made choice of about one hundred of them, and desired me by the interpretation of the linguist to fix my price for them. I told him I meant to sell them altogether, as parting with the best would injure the sale of the remainder. He then desired me to set my price for the whole, and if reasonable he would take them all. I accordingly did, and after some abatement he concluded to buy them, and desired permission to take those he had chose with him into the city. I replied that I could not suffer one of them to go from under my care ’till I was paid for the whole. He appeared incensed, and desired me to name the hong merchant who should pay me for them, which I declined, upon which he mentioned Pankikoa, the son of the Pankikoa named in the commencement of this letter, who was dead, and was succeeded by this son. Knowing him to be an opulent hong merchant, I made no objection. The Mandarine then asked me whether I would consent to have the bundle of skins carried to Pankikoa’s house, and he would see me paid for the whole. I consented and accompanied them there. Pankikoa was at home, and as the Mandarine and he conversed in the Chinese language, I can only conjecture their conversation and trust to the inquiries I made for an interpretation of it. Pankikoa expostulated upon his being obliged to purchase the skins, not having sold me any goods; a reason that did not appear to satisfy the Mandarine, who left him, and went in his Palanquin into the City, after making some remarks which indicated that an incompliance with his request, would be attended with serious consequences. After his departure, the Chinese porters by the direction of Pankikoa took up the bundle of skins, with an intention of carrying them into the city, but I opposed it, and they laid the bundle down again, upon which Pankikoa appeared much agitated, told me I knew not the Chinese government nor what I did, that this was a great disgrace to him, and to use his own broken English expression, said it was, “a kill business”—in fact, what I understood by the tenor of his language was, that the insult offered the Viceroy, was as much as his life was worth, and that it would ruin me, as well as himself, if the skins were not in the city that night, before the gates of it were shut. He asked what I would take for that bundle of skins now in his factory. I told him they were the most valuable part, and I must have half the price I demanded for the whole, which would amount to upwards of ten thousand dollars. And I thought he meant to comply with my demand and pay me the money, for he called for the key of his treasury, but recollecting himself he sent for Monqua, Pinqua, and some other Hong merchants, and the result of a long and passionate conversation, mixed at times with a good deal of adulation towards Pinqua, was, as they interpreted it to me, that they had agreed to settle the matter amicably among themselves, and that Pinqua with whom I had contracted for the bohea tea shipped on board the Columbia, would pay me the price I demanded for the whole of the skins, which Pinqua assented to. As these were Hong merchants whose faces I was familiar with, who dealt for large sums, who trusted, and were trusted by every European, I thought it would be impudent to hesitate longer. I accordingly consented, and they took the skins into the city. The next morning I applied to Pinqua for settlement, who referred me to Pankikoa, and they trifled with me by referring me back to each other for payment. At last Pinqua offered to settle with me for the whole of the skins provided I took four thousand dollars less than the price agreed on before, observing that he would not furnish me with the passport for the ship Columbia to depart, and that I might remain at Canton ’till the next season for ought he cared, that he had been deceived by Pankikoa, and the other Hong merchants who had promised to pay him their respective proportions of the price of the skins taken by the mandarines, that they had broke their promise, saying as he had sold me tea, he must buy the skins and take the profit & loss together, and that he should lose fifteen thousand dollars by the business in consequence of the Mandarines taking away all the best skins, and that I must also suffer some loss. I waited a few days longer in hopes of Obtaining a more favorable conclusion to this business, when chance favored me with an opportunity of seeing the same Mandarine from the City, who had promised to see me paid for the skins. He was at a Mr Beales factory, looking at some other skins of the same kind. I made application to him for redress, but could obtain none. I therefore from necessity was constrained to accept Pinqua proposition, upon which he obtained for me my grand Chop, or permit for sailing, and I left Canton the 15th of February 1790 for America being among the last ships that sailed. Had I refused Pinqua last offer, the ship would probably have lost her passage for that season round the Cape of Good Hope, for on the 17th February their holy days commenced, during which time their Public offices are shut, and no business transacted for near three weeks.
The demand in China, for sea otter skins, and other furs of the best quality is very great, and if you do not depend upon that article for your return Cargo, and can wait the season over you may obtain a good price, but transient merchants are subject to many more frauds and impositions in Canton, than those who have an established residence there. However, the English company are not exempt from them, for in the year 1784 they united with the other supercargoes in Canton in complaint to the Hoppo

   The mandarine who superintends the trade at Canton.

 against the increased extortions & delays in trade, and were promised redress, but an unfortunate accident prevented. An English Country ship in saluting Killed one Chinese and wounded two others. This brought on an event of a serious nature, for the Chinese seized the supercargo of the ship, Mr Smith, and carried him into the City, declaring their laws required blood for blood, and that unless the person who fired the gun was delivered up, they would detain Mr Smith. In this instance also all the foreigners united, and I must say attempted to frighten the Chinese, and had they possessed firmness adequate to the undertaking, I believe they would have succeeded, for in point of real force or consequence, the Chinese are considered by most persons who have seen them, as very contemptible, however importantly they think of themselves. But to proceed. The Europeans brought up to the factories between four & five hundred seamen armed, we also had an armed boat up from our ship. On their passage up from Wampoa to Canton, a distance of twelve miles, they were opposed by so trifling a resistance on the part of the Chinese, as only slightly to wound but one man, the boats passing in the night without returning their fire. On the arrival of the boats from the ships the Chinese Citizens deserted the suburbs, and the Mandarines of war next morning, drew up an Armed force in the Common boats of the river, opposite the factories, their arms consisting of Bows & arrows, swords, spears, and Match lock fusees, with two or three Cannon of about one pound caliber, mounted on a kind of three leg stools, and the boats which contained their soldiers were sculled by the women, who ply on the river for maintenance; the Chinese soldiers preserved the most perfect silence, and paid a ready obedience to orders. Negotiations for settleing the matter amicably now took place, and the Chinese had the address to detach the other foreigners from the English, who at last thought it most prudent to compromise the matter by delivering up the gunner, whom they now said should only be tried by their laws, and as it was well understood to be an accident he would be returned unhurt. In the interim they restored Mr Smith, and trade took place again, but they basely broke their promise with respect to the gunner, for soon after the sailing of great part of the European ships, they hanged him, nor did they afterwards remove any of the impositions on the trade complained of but rather increased them.
I shall now mention an instance to point out the necessity of a nation showing an active protection to their subjects trading to China. The Mandarines for some illicit act of a hong merchant, confiscated all the property in his possession, to whomever belonging, and sent him into banishment in an interior part of the country, nor could the English Country supercargoes get any restitution of their property ’till the British nation sent a frigate, the Sea horse, Capt Panton, with orders officially to demand and insist upon redress, and take such steps as he should think likely to obtain it. Captain Panton by a spirited conduct produced the desired effect, for the Mandarines after giving Captain Panton a hearing, directed the Hong Merchants to compromise the matter with the English company’s supercargoes, which they did, and settled the debt by installments.
Their mode of increasing their impositions upon all strangers is by stopping your trade, and even your supply of fresh provisions, knowing that the delay in your business as the season wears away, would eventually be more expensive to you, than to comply with their demand.
It is supposed that the Emperor is a stranger to this mode of conduct. An Ambassador was lately sent out from England, with an intention to obtain an audience with the Emperor and have some general laws established for the regulation of the English trade at Canton, but the death of the Ambassador during the passage, occasioned the ship to return, there being no successor appointed to carry the commission into execution, but it is expected they will again send one.
The English of late have shipped from England to Canton a quantity of tin, which they say the Chinese prefer to the Calin that the Europeans procure from the different Malay settlements. However, it is my opinion, that the Americans might also make a profit on procuring Calin, and other Articles from the Malays if they were sufficiently united in pursuing the Commerce to China to enable them to extend their views to the different objects of commerce that would present themselves.
I shall enclose to you extracts from the English companies directions to their supercargoes, also a list of the articles of import & export of the port of Canton, with a list of all the ships at China in the year 1789. I must remark that the two ships at Canton in the enclosed list, viz the Washington, and the Moise, were totally foreign property—the Washington & the Moise were I believed owned by Merchants at the Mauritius. The Moise, I had purchased of the Commander, Capt Oriolle, but finding it inconvenient to send her to America, I afterwards resold her to him. The other ship, the Washington, was commanded by an American, but from every inquiry I believe the property belonged to the French, and the American flag used to guard against the French Agent at Canton. The American Schooner Grace, was sold to an English subject, who sailed with her for the Northwest coast of America under American Colours. The unauthorized use of American Colours, may require some particular directions to the Consul at Canton, for his conduct on such an occasion, in the present instance, I thought it most prudent to pass it unnoticed, as a want of instructions upon the subject, might have rendered an interference productive of more evil than good.
On considering the disadvantages, the Americans trade under to Canton, owing to their seperate interests, and their not having an established factory there, it appears to me they require greater encouragement for the prosecution of it, by laying heavier duties on teas imported from Europe, for we still receive a considerable quantity of bohea tea from Amsterdam, although the Dutch are now prohibiting any teas being received in their ports from America. Bohea tea is an article of great consumption here, and being bulky would enable us to employ larger ships in the Canton trade, by which we should save considerably in port expences at Canton, as each ship however small, is obliged to pay besides her other expences, the present to the Hoppo, which is about two thousand eight hundred Spanish dollars.
With respect to Spanish dollars, the only kind of specie which answers to export to China, and the command of which will always give you the preference of the Market, I feel myself unable to judge of the amount that it would be necessary to annually ship, for want of information of the Consumption of teas yearly in this country, and the quantity of Silks, Nankeens Porcelain & other Chinese merchandize that would be requisite for a full supply for the United states. Great quantities of raw silk are bought by the English dutch & french, and would also be an article of import to us, if we established any silk manufactories in this country. You will, with the information you possess of the trade of this country, and observing in the extracts from the English companies directions, the quantity of specie shipped by them, be enable to judge how much it may require to carry on the trade from this country. The danes & Swedes trade principally with money, and I think it probable we should save in the export of specie, considerably by a direct trade to China as we otherwise should be obliged to pay higher by purchasing the Merchandize of China from any other nation.
I shall now close this letter with remarking that frauds and impositions are practised by the Chinese on every nation trading there, but on these being detected in Europe they redress the established companies there who have been cheated, the hong merchants declaring the fraud has been committed on them by the Country merchants, but individuals are much more exposed to them than those companys, from the idea that if they make a losing voyage they will not be able to return and of course will be obliged to bear the loss, nor can individuals obtain redress always, from want of property, and an idea that the Chinese have, that being transient merchants they cannot redress themselves. And of course they can oblige them to suffer the loss.
I know a respectable and opulent mercantile house in this city, who have been greatly defrauded in the quality of their teas and nankeens, and as they owe the Chinese money are determined to retain sufficient in their hands to redress themselves. This leads me to remark the failure of the Imperial company at Canton, who owe the Chinese nearly two hundred thousand dollars, and they attempted to detain the cargo of an English country ship, which came consigned to Mr Reid, the imperial consul, and Chief-supercargo of their company; but on the interference of the English supercargoes it was paid for. How far, one American individual, may be made to pay the debts contracted by another, and thus annihilate the trade, future events may determine. It has been a maxim with the Chinese that when they could find redress at home, never to seek it abroad, and I have heard remarks made by them, that in case of a long & great delay in payment, that it was probable they would seize the property of one American to answer for the debt of another. They therefore to avoid this evil, express their wishes to see the trade carried on by a steady body of Merchants from this country. But supposing no accident of this kind should happen, the act of one American individual may expose the trade of all the rest to be injured. I shall mention an instance respecting the English. A country ship from Bengali, being unable to make an advantageous sale of her cargo, attempted to go away without paying her port duties, upon which the Hong Merchants told the English company’s supercargoes that they would stop the trade of their nation ’till the duties were paid, upon which they interfered & obliged the Country Captain to settle his account. How far these may be guarded against by instructions to a Consul resident at Canton, your good judgement can determine.
I have prolonged the subject of this letter beyond my intention, led by an ardent desire to communicate every thing, I thought might be worthy your perusal. I must confess it is my opinion, that the trade to Canton will never flourish, but in the hands of a well regulated company, which will not be easily formed without the protection of government—for individuals have neither influence, nor consequence enough with the Chinese to withstand the rivalship of established companies. My own experience and situation in the trade enables me perhaps to pursue it with equal advantages to any private merchant, from which I might be excluded by an established company, but the desire of seeing the trade of my country prosper, supersedes every private interest. If what I have communicated should prove any way serviceable, it will afford great pleasure to
Sir   Your most respectful,   very obedient   And most humble servant
Tho: Randalllate Vice Consul atCanton in China

P.S.   I last Saturday night received a letter from Mr. William Whitesides, informing me that he had discovered one chest of Hyson Skin
out of some sold him by me, contained a black leaf—something resembling tea, but of no possible use, a fresh instance of fraud in the Chinese, and an additional distress to the individual, who pays a duty here on an Article of no value, and whose poverty might prevent his return to obtain satisfaction in Canton. I applied once for Doctor Hunt of the Ship Hope, who was cheated in Nankeens, but could get no satisfaction in Canton from the Chinese who sold it to him. However if I detect no further fraud in the sale of the remainder of my teas it will be lucky. We never examine every chest we purchase, only a few, as opening or boring the Chests, injures the tea.
Honorable Alexander Hamilton EsquireSecretary of the TreasuryPhiladelphia


Title: To Alexander Hamilton from Fisher Ames, 15 August 1791
From: Ames, Fisher
To: Hamilton, Alexander

Boston August 15th 1791
Dear Sir

I have heard that the Bank of N York propose to reserve a number of their shares for the acceptance of the U. S. Bank, so as to create a kind of partnership. Tho’ little seems to be known of the particulars, yet it is insinuated that the idea is suggested under your patronage. When I wrote you last, I was ignorant of all this. Tho’ the Bank is to govern itself, yet your opinion of the proper arrangements will, & ought to, have weight.
It is proper you should know how pliant our Massa. Bank wd. probably be found, & what is thought here of blending the general and local Banks. This is all the use that I suppose can be made of my letters—for you are so much and I so little an actor in this Affair that I do not ask your correspondence.
I think that any connection between the Banks wd. be generally disagreeable in this quarter.
I think also that this (Massa) Bank is in the best disposition in the world, ready to give up the ghost, and take a chance for a resurrection as a branch, which will be a joyful one, because the stockholders have a sure & certain hope of getting more Money in their future than their present state. Tho’ a few receive the idea of abolishing the Mass. Bank with great repugnance, yet so many more own shares in the U. S. Bank to a greater Amot., they hope so much from the one and despond so totally of the other, that the present sanguine moment seems to be the critical one. Tho’ this Bank never had much popularity, yet it may hereafter be courted by a certain faction to give weight & activity to their party, by their reputation & property. Other passions & persons may displace the present & change the aspect of things. I draw my information from persons who well know the temper of the stockholders & who have great merit in having prepared them for dissolution. Indeed, with their connections, they are able to carry a major vote.
I know that you are as much an Unitarian in politics as I am, and therefore the reflections which this representation has produced in my mind will rise in your’s without my suggesting them.

No proper means of strengthening the Govt. shd. be neglected. The Bank has been justly considered as one of the best. But it’s efficacy will essentially depend on events posterior to it’s legal establishment. It’s uses to trade and to the Govt. can exist in the highest degree only in case of it’s engrossing the whole business. The state Banks by dividing, not only take away part, but by opposing they will impair the value of the remainder. They are at liberty to issue Bills at pleasure. Their power, used ever so discreetly, will be an evil, and overcharge the channels of circulation, inasmuch as the issues of the U. S. Bank will be sufficient to fill them. If the latter should forbear, it’s capital will lie idle, and it’s rivals will fill the space it may have chosen to leave vacant. But suppose these rivals should want discretion, and, eager for profit, should multiply their bills unduly. This, it is true wd. be at their own risk, perhaps loss, and perhaps ruin. They wd. do a great deal of mischief, however, in the mean time. They wd. pour forth a torrent of paper money as baleful as a pestilence. Industry wd. sicken.
But without proceeding to extremes so hazardous to themselves, they might increase their paper to a point that wd. be injurious to the national Bank. The Massa. Bank under less favorable circumstances has acted this part. With a capital, buildings &c included, of 100,000 Dols., it has pushed it’s operations as far as possible. The dividend of 16 or 18 per Cent proves that they have done much with little. The seeds of public confidence in banks have been lately sown and the state institutions will not fail to gather part of the crop. They may issue bills very freely without much risk. So cheap an augmentation of capital wd. enable them to give longer credit and better terms than heretofore—and, if the national paper should be exchangeable only at Philada, in some measure to exclude it’s currency. In that proportion, the U. S. Bank wd. lose part of it’s profits, trade of it’s facility & Govt. of it’s resource. For the capacity of the Bank to aid Govt. must be measured by the prosperity of the former.
It is true that the increased paper of the state Banks might be rapidly returned upon them because of it’s limited currency. But that may also be equally true of the national Bank paper. The latter, if managed with prudence & skill, wd. probably gain the ascendant at last. The political good effects wd. be delayed however, and some of them might never take place. The scramble of rival Banks wd. sharpen the acrimony of party humours, which at this moment are dulcified by the cream of speculation.
My corollary, or to proceed like a divine, my impr⟨ove⟩ment from all this preaching is, that the present is the most fa⟨vo⟩rable time for making progress with the Bank—that Sub⟨-Banks,⟩ if a safe plan for establishing them could be devised, and ⟨this⟩ I am told some knowing ones have no doubt, wd. be adequate to the object in view—and that any union connection of the general and local Banks wd. be inauspicious. It wd. give life, too long life, to those who are ready & willing to die. Like parasite plants having no root of their own they wd. subsist by sucking the sap from their supporter. They are rivals and I think cannot be partners. To apply a remark of your’s on another occasion not dissimilar, it is establishing a qualified Anarchy—and that too in a system whose perfection is simplicity.
I make no doubt that you wll discern in my remarks that I have not the best means of judging of my subject, and that I have not made the best use of what I possess. For in truth I do not know the principles on whh the supposed ⟨union⟩ of Banks is to be contemplated. I am sure however that you will hold my leading principle as important as I do.
As I impose upon you the task of only reading my letter, you see I do not scruple to make it a long one.
The late rise of paper and bank stock, tho now declining, has excited no small share of envy among those who might have made money by it, yet did not. But the fact redounds to the honor of the public counsels; and in that view, it seems to have it’s full effect.
The price of paper being above par evinces the solidity of the principle on whh you founded your system of finance—as it shews the reduction of the rate of interest to be in fact as well as theory a fair ground of bargain with the creditors. I congratulate you on the vindication of the basis of your plan which some, even of your friends, treated as untenable. But a triumph of a nobler kind is found in the situation of our country. The body politic is certainly in high health. It’s enemies, it’s friends, chance & design seem to have conspired in it’s favor. The very poison of the amendments has been food to it. Weak men feel their fears subside, sanguine men their hopes realized. The federal tree was in blossom almost as soon as it was planted. It is very lately that they have seen it bear fruit—and such fruit as makes their mouths water. They see too that tho every Antifederal puff has shaken it, the motion has given new vigor to the roots.
By seeing the effects of your public duties, you get rewarded for having performed them. With sentiments of respect and attachment, I am, dear Sir, Yr very hble. Srvt
Fisher Ames Mr. Hamilton
P.S.   The subscription for Mrs W’s poetry is closed and the Books are on sale for the Booksellers benefit. Tho I had told her husband that you had desired me to subscribe to the work on your behalf, yet I think it wd. be a departure from your intention to do anything in the matter, under these circumstances.
We have you exhibited here in Wax. You see that they are resolved to get money by you in every form.
Your’s &c
F A


Title: To Alexander Hamilton from Rufus King, [15 August 1791]
From: King, Rufus
To: Hamilton, Alexander

[New York] Monday Evening. [August 15, 1791]

The fall of Bank certificates may have some good effects, it will operate to deter our industrious citizens from meddling in future with the funds, & teach them contentment in their proper vocations. So far as I am informed, the loss will be divided among a great number of individuals, and where it is heaviest, the sufferers will generally be characters who will neither excite nor deserve commiseration. The Fall having been hitherto gradual, the most timid have had an opportunity to retire with something less money, & much more wisdom, than they brought into the market. I see no reason to apprehend an alarming depression of the Stocks; they have risen within the last two months faster, & higher, than any prudent calculation would justify, but notwithstanding the pressing demands for cash, to discharge the contracts for Bank Certificates, as well as to support their credit under the present Check, & in opposition to the united exertions of some of the Dealers to tumble them lower, the other Stocks have not been greatly depressed. The 6 pr Cts. sold this evening for cash at 21/. the three per Cts. & deferred at upwards of 12/. and the Bank certificates at 160 Dollars. If they do not fall below these prices, perhaps we may think ourselves fortunately extricated. The Business was going on in a most alarming manner, mechanicks deserting their shops, Shop keepers sending their goods to auction, and not a few of our merchants neglecting the regular & profitable commerce of the City. A check was necessary, the explosion will restore order, and we shall return to our regular pursuits. Several of the Speculators sold their Bank Certificates from 50 to 100 Dollars. The subsequent rise mortified them, and they don’t fail among other means employed to depress the Stocks, to quote your opinion, that the Stocks are all too high. They go further and mention prices, below the present market, as the value sanctioned by your authority. It can scarcely be believed that these gentlemen have any foundation for their assertions, but the fact will suggest to you the utmost caution on this subject. I know you must have regretted the late extravagance, but at the present juncture, the most unfair advantage may be made of your remarks, and consequences ruinous to individuals, and quite foreign from your wishes, may proceed from them.
In regard to our Bank, although some specie has been drawn from us, and sent to the other States to purchase Stock, and the discounts are large; yet you are sensible of the prudence of the direction, and that they must be extremely well acquainted with the Circumstances of all the Dealers with the Bank. I understand that it has been reported, that the late check has been produced by the bank’s having refused their usual discounts. This has by no means been the case. The Bank has continued, & will continue, to discount as far as their safety will authorize. The present agitation will render them cautious, but they will not under the influence of that temper withold those accomodations, which may be made with safety to the Bank, and which may likewise be essential in preventing a violent depression of the funds.
Yrs affectionately
R King
I think Duer has been injured in being supposed to have been particularly engaged in raising the Bk Certificates. So far as I can learn his conduct has been as correct as any Buyer’s & seller’s could be.


Title: To Alexander Hamilton from Tobias Lear, 15 August 1791
From: Lear, Tobias
To: Hamilton, Alexander

United StatesAugust 15. 1791.

By the Presidents command T. Lear has the honor to transmit to the Secretary of the Treasury a letter from Mr. Governr. Morris to the president respecting the Debt of the United States in France; which the President requests the Secretary to take into consideration, and to draft such an answer as will be proper for the President to give to Mr. Morris on this subject.
Tobias LearS.P.U.S.


Title: Enclosure: Gouverneur Morris to George Washington, 27 May 1791
From: Morris, Gouverneur
To: Washington, George

Paris 27 May 1791
public
Dear Sir

I have the Honor to enclose a Letter and sundry Papers relating to it from Messieurs Schweizer Jeanneret & Co. I have referred these Gentlemen to Mr. Short telling them that it is most fitting in many Respects that they should apply to him.
As it is possible however that this Business may come before you, I think it a Duty to convey some Observations which occur to me, and which may not perhaps strike you because Matters of that Sort have not I believe much occupied your Attention. Previous thereto I beg Leave however to give you a History of my Acquaintance with it. In a Letter to Colo. Hamilton of the 31 of January 1790 I mentioned what had passed between Mr. Necker and me respecting the Debt due by the United States to France and I hinted at the means of turning to useful Account a very precipitate step of the public Agents in Holland. About this Time I received your orders to communicate with the british Ministers and altho I did by no Means consider that in the Light of an Appointment to office yet from Motives of Delicacy I determined to extricate myself from the Affair of the Debt as speedily as I could with Propriety. Various applications were made to me from different Quarters to which I replied evasively but on my Arrival in this City last November I informed the Parties that I had Reasons of a private Nature which deterred me from holding any share in their Speculation. I conversed with Mr. Short on the same Subject and communicated to him confidentially my Reason for declining an Interest as well as my Opinion respecting the use which might be derived from such Negotiation. A few Days after the President of the Committee of Finance happening to meet me at the Count de Montmorin’s mentioned some Proposals then before them which to the best of my Remembrance were extravagant. I declined giving an Opinion without previously seeing and considering the terms upon which he and Mr. de Montmorin agreed together that before any thing was concluded the various Propositions which might be made should be submitted to my Examination. Here the thing dropt and the enclosed Papers shew the Reason why, for it appears from them that a Bargain was made shortly after by the Controleur general with a different Company. Mr. Short mentioned this to me on his Return hither in the End of March telling me that the Parties concerned were as he was informed in Amsterdam Men of no Credit nor Capital. I of Course agreed with him in Opinion that if so it was not worth while to listen to them. A few Days after one of them called on me, and after giving a History of the Affair begged me to make Use of my good Offices. I told him at once that it was ridiculous to ask a Commission of 5 ⅌ % on changing the Nature of our Debt. That it was quite as convenient to owe France as to owe the Subjects of France and further that before any treaty was offered Persons of Credit and Capital should appear. As soon as I made this last Observation he drew out the Letter of the Comptroller general and shewing me the second Clause of it replied that after what was there contained no man had a Right to question the Solidity of the Society. He then added that for my private Satisfaction he would prove that People of the first Fortune were connected therein, and indeed he gave me such Proof. I told him upon this that they must apply to Mr. Short or to their own Ministry whose support would be much more efficacious than the Sentiments of any private Individual. I mentioned nevertheless to Mr. Short the Substance of this Conversation. While he was in the country the enclosed Letter was received. He returned to Town Yesterday and called on me in the Evening when I communicated to him the Purport of it.
I have ever been of Opinion that as we are not in Condition to pay our Debt to France a Bargain by which the Period can be prolonged without Loss to either Party is desirable. I say without Loss because the Conduct of this Nation has been so generous to us that it would be very ungrateful indeed to take Advantage of those Necessities which the Succor afforded to America has occasioned. Such Bargain must be either with the Government or with Individuals. But after the repeated Delay on our Part, to ask longer Time now would not look well. Indeed no such Treaty could be made without the Consent of the Assembly, and their Observations would not be pleasant. A Bargain with Individuals has the Advantage of bringing in the Aid of private Interest to the Support of our Credit, and what is of very great Consequence it would leave us at Liberty to make Use of that Credit for the Arrangement of our domestic Affairs. And on this Head I must mention to you my dear Sir that it has been my good fortune to prevent some publications which would have been particularly injurious to us. Their Object was to complain of the United States for speculating in their own Effects with the Funds of France; Urging that while we owed heavy Installments already due here, all the Loans we obtain in Holland ought to be applied to the Discharge of them and therefore that the Speculations in our domestic Debt were a double Violation of good faith, &ca. &ca. &ca. The present State of things here has occasioned so great a fall in the Exchange that Money borrowed in Holland is remitted with great gain consequently Loans made there just now answer well, & it is evident that the Parties who are endeavoring to contract count on a considerable Profit from that Circumstance. Much however is to be said on this Part of the Subject. First it is questionable whether our Reputation may not be a little affected for you will recollect that about one third of our Debt to France arose from a Loan made on our Account in Holland of five Millions of florins for which the King paid us here ten Million of Livres without any Deduction for Charges of any Sort. The Nation is now obliged to pay these five Millions in Holland and for us to borrow that Amount there and then squeeze them in an Exchange which distresses both their Commerce and Finances looks hard. There was a good Deal of murmuring about it when the last operation of F 1.500,000. Guilders took Place and I should not be at all surprized if some Patriot by way of shewing his zeal should make a violent Attack in the Assembly when the next Payment is made. There are many of these patriots who if they can inculpate Ministers and distress those of different Sentiments don’t Care a Jot for Consequences. But supposing this not to happen it is not possible for a Nation to make the Advantage which Individuals do in such Things because they must employ Individuals each of whom will be too apt to look a little to his own Advantage. There is a Difference also between the Gain made upon Parts and that which would arise on the whole for even if we could borrow all at once so large a Sum there can be no Doubt that the Remittance of it hither would greatly alter the Exchange. But it is not possible to borrow it speedily and the present unnatural State of Things will in all Probability be changed. In fact the leading Characters are very seriously alarmed at it. If their Paper-Currency should be either redeemed or annihilated or abolished To Morrow the Exchange would immediately turn in favor of France and then we should loose on Remittances. So much for this Affair in it’s little Details, but there is a great View of it which forcibly strikes my Mind. If we were at Liberty to turn all our Efforts towards our domestic Debt we should by raising it’s Value prevent Speculations which are very injurious to the Country if not to the Government. Millions have already been bought at low Price and afterwards negotiated in Europe. Neither is that all, for if we can borrow at five per Cent and buy up our six per Cent Debt at Par we gain at once by that operation one fifth of the Interest or twenty per Cent which besides all the other good Consequences is much more than ever we shall get by any Management of our Debts on this Side of the Water.
I have given you my dear Sir these Hints in Abridgement because my Time will not permit of dilating them. Attribute them I pray you to the true Cause and believe me always very sincerely yours


Title: To Alexander Hamilton from Tobias Lear, 15 August 1791
From: Lear, Tobias
To: Hamilton, Alexander

United States August 15th. 1791

By the President’s command T Lear has the honor to transmit to the Secretary of the treasury the proposals which have this day been submitted to the President, for rebuilding the lanthorn story & wooden work of the Light House in South Carolina which has lately been consumed by fire, and likewise proposals for plastering the same—All of which have been approved by the President of the United States.
Tobias LearSecretary to the Presidentof the United States.


Title: From Alexander Hamilton to William Seton, 15 August 1791
From: Hamilton, Alexander
To: Seton, William

Treasury DepartmentAugust 15. 1791
Sir

Inclosed is a resolution of the Trustees of the Sinking Fund appropriating a certain sum for the purchase of public Debt within certain limits therein specified.
In consequence of that resolution I have concluded to apply One hundred and fifty thousand dollars towards purchases in the city of New York and to ask you to undertake the execution of the business. In thus forbearing to employ some officer of the United States and having recourse to your aid, I am governed by the consideration that your situation would lead to such an execution of the business as might at the same time best consist with the accommodation of the Bank of New York.
Inclosed is a letter to the Directors of the Bank requesting them to pay to you the abovementioned sum. You will of course however only avail yourself of this authority in proportion to the actual purchases you shall make, and you will please to advise me weekly of such as you may be able to effect.
The Trustees have never yet determined on any allowance to the persons who have been employed in similar purchases, nor is it clear how much is in their power on this point. I can therefore only say that the same rule will govern in your case, as in that of others.
With great consideration   I am Sir   Your obed servant
Alexander Hamilton William Seton EsquireCashier of the Bank of New York


Title: To Alexander Hamilton from William Seton, 15 August 1791
From: Seton, William
To: Hamilton, Alexander

[New York] 15 Aug. 1791
Sir

I am honored with your Letter of the 4th. From the very sudden turn that Speculation has taken We have only now remaining in Bank of the Treasurers Bills on Collectors undisposed of

No.
1648
for
200
Dollars
on I. Gregory, Cambden

1339

 50

on G. Biscoe, Nottingham

It is certainly of considerable importance & a great accomodation to the mercantile Interest of this City that the Bank be furnished with a proportion of the Treasurers Drafts on the Collectors in the different States. I therefore hope we shall continue to receive that favour from you. The Bills on the Eastern States we can more readily dispose of, but it is also very convenient to have a proportion of those upon the Southern.
I have the honor to enclose a Return of the Disposal of the Bills on Amsterdam for 300,000 Current Guilders amounting to Dollars 121984 71/100.
Mr Brasher the Goldsmith begs that I will hand to you the Letter he has wrote to me upon the subject of the Dublon. I wish it may exonerate him in your opinion, for I am convinced he is a thorough honest Man. I return the piece of Metal enclosed agreeable to your desire and have the honor to be with the greatest respect   Sir   Your Obedt Hum Serv


Title: From Alexander Hamilton to William Seton, 16 August 1791
From: Hamilton, Alexander
To: Seton, William

Private
Philadelphia Aug 16. 1791
My Dear Sir

I send you herewith an official letter. This private one I write as explanatory of it.
I hardly expect that you will be able to procure the debt within the limits prescribed—And yet I do not know what effect the imprudent speculations in Bank Script may produce. A principal object with me is to keep the Stock from falling too low in case the embarrassments of the dealers should lead to sacrifices; whence you will infer that it is not my wish that the purchases should be below the prescribed limits. Yet if such should unfortunately be the state of the market it must of course govern.
The limits assigned for the purchases of Three per Cents and deferred debt are founded on a calculation of the Government rate of interest being 5 ⅌ Ct. The same rule has not been extended to the Stock bearing an immediate interest of 6 ⅌ Ct because the Government have a right to redeem it at par in certain proportions; and though to individual purchasers it is worth more than par, because a part only can be redeemed, yet it is not at present the interest of the government to give more than par for it, because of the right to redeem a part. Indeed the law limits the Commissioners in this particular.
You recollect that the act requires that the purchases should be made openly. This has been construed to mean by a known agent for the public. When you make a purchase therefore it will be proper that it should be understood that it is on account of the United States but this need not precede the purchase, and it will be best that there should be no unnecessary demonstration lest it should raise hopes beyond what will be realised.
Yrs.   with great regard
A Hamilton Wm Seton Esqr.
P S If the prices of Stocks should exceed the prescribed limits, you may retain the letter to the Directors.
If there are any Gentlemen who support the funds and others who depress them, I shall be pleased that your purchases may aid the former. This in great confidence.


Title: Contract with Thomas Marshall, 17 August 1791
From: Marshall, Thomas,Society for Establishing Useful Manufactures
To:

[Philadelphia, August 17, 1791. The minutes of the proceedings of the directors of the Society for Establishing Useful Manufactures for December 9, 1791, read: “The Governor laid before the Board a Letter from Collo Alexander Hamilton, enclosing an Agreement entered into by the said Colo Hamilton in behalf of the Society… and Thomas Marshal dated 17th. August 1791.” Contract not found.]


Title: From Alexander Hamilton to Rufus King, [17 August 1791]
From: Hamilton, Alexander
To: King, Rufus

[Philadelphia, August 17, 1791]

Your letter of Monday Evening has a good deal tranquillized me. I am glad to learn that the mischiefs from the over rise of scripts are not likely to be very extensive.
I observe what you say respecting the quotation of my opinion. I was not unaware of the delicacy of giving any & was sufficiently reserved ’till I perceived the extreme to which Bank Script and with it other stock was tending. But when I saw this I thought it adviseable to speak out, for a bubble connected with my operations is of all the enemies I have to fear, in my judgment, the most formidable—and not only not to promote, but as far as depends on me, to counteract delusions, appears to me to be the only secure foundation on which to stand. I thought it therefore expedient to risk something in contributing to dissolve the charm.
But I find that I have been misquoted. Speaking of sales on time at twenty four shillings for 6 ⅌ Ct. &c. I think it probable, I may have intimated an opinion that they went faster than could be supported. But it is untrue that I have given as a standard prices below those of the market as mentioned by you. On the contrary my standard on pretty mature reflection has been and is nearly as follows—

for Bank Script
195

6 ⅌ Cents
 22/

3 ⅌ Cents
 12/

Deferred now
 12/8

I proceed on the idea of 5 ⅌ Ct. interest—taking at the same time into calculation the partial redeemability of the 6 ⅌ Ct.
I give you my standard that you may be able if necessary to contradict insinuations of an estimation on my part short of that standard for the purpose of depressing the funds.
Yrs. sincerely & Affect
A Hamilton
Aug. 17
R King Esqr


Title: To Alexander Hamilton from William Seton, 18 August 1791
From: Seton, William
To: Hamilton, Alexander

[New York] 18 Aug: 1791
Sir

I am desired by the President & Directors to acknowledge the receipt of your Letter of the 16th. They have ordered the Sum of 150,000 Dollars to be paid to me as it may [be] required for the purchases of public Debt for the Trustees of the Sinking fund agreeable to your request.
The Return of the Sale of the Bills on Holland was furnished last Monday.
I have the Honor to be &c


Title: Treasury Department Circular to the Commissioners of Loans, 18 August 1791
From: Treasury Department,Hamilton, Alexander
To: Commissioners of Loans

Treasury DepartmentAugust the 18th. 1791
Sir

I have directed the Treasurer to remit you drafts for Sixty five thousand Dollars towards payment of the quarters interest ending the last of September next. These Drafts are with blanks for the direction as heretofore, and may be filled with the name either of the Cashier of the Bank of Massachusetts or of New York or of North America or with the name of the Collector of Boston.
One half of these drafts may at once be disposed of, if a demand occurs, upon either of the Banks of North America or New York. The Residue it is presumed will find sufficient sums to answer them in the hands of the Bank of Massachusetts and of the Collector of Boston. You will do well however to consult with the latter in order to ascertain what sum you may rely upon from him in time and you will inform me without delay of the result.
You will also inform me as soon as possible how the probability stands of the sum remitted being adequate to the object, and you will report to me weekly the amount of the sales you may make.
I am, with consideration,   Sir,   your obedient servant
A Hamilton


Title: From Alexander Hamilton to Jeremiah Olney, 19 August 1791
From: Hamilton, Alexander
To: Olney, Jeremiah

Treasury Department Aug 19th 1791
Sir

Your Letter of the 11th instant has come to hand.
Your intended proceedings with regard to the seizure of Sugar You mention, appear to be proper, and conformable to the 13th Section of the Collection Law.
I am, sir   Your obedt Servt
Alex Hamilton Jere Olney EsqrCollectorProvidence


Title: From Alexander Hamilton to Otho H. Williams, 19 August 1791
From: Hamilton, Alexander
To: Williams, Otho H.

Treasury Department August 19th. 1791
Sir,

In the documents which you transmitted to me concerning the goods of MacRae and Morrison which have been seized, I observe—
That one of the cases of Hats both in the Bill of Sale and deposition of Mr Frazer is numbered 12 and that no such number appears in the statement of the packages imported and of which the Goods seized are alleged to have been a part.
The numbers of all the cases stated to have been imported are 11. 10. 9. 11. 13.   1. 3. 4. The numbers of the cases seized are 1. 3. 4. 11. 12. 13.
I presume that this has arisen from some mistake not difficult to be explained, but a due regard to accuracy requires that an explanation should be called for.
I am Sir:   Your obedt Servant
Alex Hamilton Otho H. Williams EsqrCollectorBaltimore


Title: From Alexander Hamilton to Jabez Bowen, 20 August 1791
From: Hamilton, Alexander
To: Bowen, Jabez

[Philadelphia, August 20, 1791. “… It is a rule necessary to be strictly adhered to that the certificates of any state which have once been surrendered to such State shall be deemed to be extinguished and shall cease to be considered as a part of its debt, assumable on the principle of the Funding Act.” Letter not found.]


Title: Contract with William Hall, [20 August 1791]
From: Hall, William,Society for Establishing Useful Manufactures
To:

[Philadelphia, August 20, 1791]

Agreement between AH on behalf of a certain Society or Comp for establis Manufactures in the state of N Jersey &  Hall.
The said  Hall shall superintend and carry on for the said Society or Company the business of printing staining and bleaching of Cottons and Linnens, in all its parts, upon the like principles and in the like method, as the same is now carried on in the Kingdom of Great Britain, and to construct or direct the construction of all such machines as are in use in the said Kingdom in and about the said business; with all which, the said  Hall doth hereby declare himself to be well acquainted.
The said Society shall confide to the said  Hall the superintendence of the said business at such Factory as they shall establish and shall allow & pay to him for his services so long as they shall think fit to continue him in their employment, and he shall so continue, the yearly salary of 600 £ Sterling money of G B per annum together with a share in the nett profits of the said business at the rate of five per Centum of the said profits. In determining such nett profits no deduction shall be made for the interest of the Capital employed except such part of it as may be actually invested in the funds of the United States or in the stock of some public bank or as may be actually borrowed for the carrying on of the said business. The salary aforesaid shall commence from the time of the Incorporation of the said Society.
The said Society shall make a reasonable compensation to the said  Hall for such machines as he shall introduce and furnish to their use, towards the prosecution of the said business—which compensation shall be agreed upon between the said Alexander Hamilton & the said  Hall, or if not so agreed upon, shall be ascertained by indifferent persons to be appointed by the parties.
For the performance of all which agreements severally & respectively the said parties do mutually and respectively bind themselves each to the other in the penal sum of Ten thousand Dollars.
In Witness whereof the said Alexander H  & the said  Hall have hereunto respectively subscribed & set their hands & seals the  day of August 1791.


Title: To Alexander Hamilton from William Polk, 20 August 1791
From: Polk, William
To: Hamilton, Alexander

Wilmington [North Carolina] August 20th. 1791
Sir

When I wrote you last from Hillsborough I suggested to you that I was doubtfull of the Instrument for stamping the Certificates for the Inspectors would not be received before it would be incumbent on me to deliver them to the different Officers. In this I have not been deceived. No such instrument has yet been received & I have delivered to the Inspectors the Certificates without Stamping. No inconvenience will I hope insue, untill such time as the instrument may arive, more especially if the Officers in the different Districts are advertised of the same.
The Collectors in more than half the Counties are appointed & am now on my rout to finish the same. The prospect is but gloomy. The lower Country have but few Stills & distill nothing but fruit, which there is none of this year and [in] the Western Counties many of the people have pulled down their Stills. Some threats have been thrown out; however, disregardless of them I have & will execute the Law with all my power. This will be handed you by Colo. Read, Inspector of Survey No. 1. To him I have committed some communications to be submitted to you, of the necessity of having Inspectors or Collectors with the powers of Inspectors at the Towns of Fayetteville Tarborough & Halifax for the greater security of the revenue & to prevent frauds.
There has [been] some charges for printing & paper already accrued & no means has been provided for the payment. Untill the first is made, which will not be before the last of January, could an order be given for draughts on the Collectors or any of them for such sums as may be wanting to satisfy these claims?
If it is admissable I would be glad to draw my Sallary from the Collector of the Customs at this place. It is contiguous or at least more so than any other in the District. If it could, I wish a form; if not I would wish to know where it is to be paid & the manner of application.
The forms of accounts & Books I have not yet recd. Indeed I have not had any information or instructions from you since Mr. Coxe’s letter of the 14th. of May.
I can never learn whether Inspectors for the Surveys No. 4 & 5 have been made by the President when passing thro’ this State or at any other time.
I have the Honor to be with   consideration your most   Obedient and very   Hbe. Servt.
Will: Polk


Title: Receipt from William Pearce, 20 August 1791
From: Hamilton, Alexander
To: Pearce, William

[Philadelphia, August 20, 1791. “Received Philadelphia Aug. 20, 1791 of Alexander Hamilton, one hundred dollars towards providing the use of Society for the establishment of Manufactures in the State of New Jersey certain machines & models of Machines to be delivered to the said Alexander Hamilton.” Receipt not found.]


Title: From Alexander Hamilton to William Seton, 20 August 1791
From: Hamilton, Alexander
To: Seton, William

[Philadelphia, August 20, 1791. On August 25, 1791, Seton wrote to Hamilton: “I have the honor to acknowledge the receipt of your Letters of the 20 & 22d.” Letter of August 20 not found.]


Title: To Alexander Hamilton from Edmund Randolph, 21 August 1791
From: Randolph, Edmund
To: Hamilton, Alexander

Philadelphia August 21st. 1791
Sir

In the opinion, given by Mr. Bradford and Mr. Ingersoll, I find the case of Mr. Robert Buchanan to be accurately stated; but after paying a respectful attention to the sentiments of those gentlemen, I am compelled to say, that I differ in the conclusion drawn from that statement: for I cannot agree, that any interest is to be received upon ⟨the⟩ certificate for the year 1791.
I acknowledge that the certificate was issued in conformity with the Act of Congress, passed on the 4th. of August 1790; and that it’s silence as to interest is no objection to such a claim, if that Act warrants it.
A subscription to a loan is therein proposed, payable in certificates issued for the domestic debt. Among these are some bearing an interest of six per cent; and others, called indents of interest, bearing no interest at all. Mr. Buchanan’s certificate is founded upon indents of interest; and had they been subscribed, he would have been entitled to a certificate, purporting that the United States owe to him, as the holder, or his assigns, the sum of 7500 dollars, bearing an interest of three per centum per annum.
He has not, however, subscribed those indents; but obtained the certificate from the Register of the Treasury before the first day of June 1791; to wit, on the sixteenth of February 1791; in pursuance of the tenth section of the above-mentioned Act. Upon the construction of that section the decision depends.
The opinion asserts the first part of that Section to be a substantive clause; and yet in the next sentence it connects that clause with the following parts of the section. The truth is, that the section itself forms one integer. The term, creditors, comprehends all holders of the domestic debt, which might be subscribed to the loan, and was not. It is immediately afterwards directed, that such of them as possess the original certificates, should exchange them for others, to be issued by the Register of the Treasury. Consequently all the non⟨sub⟩scribing creditors are under the necessity of making this exchange; and being so, must submit to the conditions prescribed for it.
One of these conditions is, that the new certificate shall not only specify the specie amount of those which are cancelled; but shall be otherwise of the like tenor with those heretofore issued by the Register of the Treasury for the registered debt. These import that the debt bears an interest of six per centum; and it is not denied, that a new certificate given in lieu of cancelled indents, cannot carry an interest of six per centum. The question then is, whether a new certificate, which is not upon the most sanguine construction, capable of a higher interest than three per centum, is of the same tenor with one granting an interest of six per centum?
It does not seem to be correct, to resort to the popular & common acceptation of the words “like tenor,” when they are known to be peculiarly technical. Nor can I admit that this acceptation would establish, in this instance, a likeness of tenor between two papers, so substantially different as in three per cent: per annum. The gentlemen by confining their exposition to popular acceptation, virtually concede the interpretation of law to be against them. And without entering into prolix authorities, I take the liberty of saying, that in every law-proceeding which I can call to mind, it would be decided, that there is a material variance between two such documents; and therefore that they could not be of the same tenor.
But let us not content ourselves with resting on the criticism of single words; let us rather examine the context.
It is not for me here to estimate the merit of any scheme of finance. My office is to ascertain the sense of Congress. It strikes me then immediately, that the principal was far more respected than the interest; and that the higher interest allowed to the former, was intended to correspond with that stipulated by the old certificates; whereas no interest was originally stipulated on the latter. It appears probable, that being anxious that all the indents of interest should be subscribed, they might have satisfied themselves of the propriety of distinguishing between subscribed and unsubscribed indents; because interest not being demandable on the face of them, might in some measure be considered as a gratuity, which the Legislature might apportion at pleasure.
That such was the meaning of Congress, is confirmed by the first clause in the tenth section itself, which gives to non-subscribing creditors, interest during the year 1791, including interest to the last day of December 1790; thus shewing, that creditors whose demands would carry interest to that time, by force of the contract, were the persons contemplated. Of this kind were indents for interest. And this idea receives confirmation from the care, used in the third section, to be explicit as to certificates carrying no interest, when they are really designed.
Upon the whole, I cannot persuade myself, that with these strong features, indicating the purpose of Congress, the Courts of the United States would embarrass a system of finance, by a determination in favor of interest to Mr. Buchanan for the year 1791.
I have the honor, sir, to be   with great esteem & respect   yr. mo. ob. serv
Edm: Randolph Secretary of the Treasury.


Title: Contract with Joseph Mort, 22 August 1791
From: Mort, Joseph,Society for Establishing Useful Manufactures
To:

[Philadelphia, August 22, 1791. The minutes of the proceedings of the directors of the Society for Establishing Useful Manufactures for December 9, 1791, read: “The Governor laid before the Board a Letter from Collo Alexander Hamilton, enclosing an Agreement … with Joseph Mort dated 22d. August.” Contract not found.]


Title: From Alexander Hamilton to Stephen Keyes, 22 August 1791
From: Hamilton, Alexander
To: Keyes, Stephen

Treasury Department, August 22, 1791. “I now request that you will endeavour to procure a Map which delineates the North Western parts of your State from actual Survey … and that you will send me a sketch protracted upon a larger scale … of so much of those parts including Alburgh and its vicinity as will serve to give an accurate idea not only of the situation of that Township but of any other place or places where in your opinion the office may be established with the greatest degree of propriety and utility free from the inconveniences of the situation which has been fixed upon.…”


Title: To Alexander Hamilton from Henry Lee, [22 August 1791]
From: Lee, Henry
To: Hamilton, Alexander

[Alexandria, Virginia, August 22, 1791]
My dear friend.

Mr Cox was about taking to you my riding horse, but my apprehension of yr. necessary hurry & my wish to compare him with a horse I have sent for, concluded a procrastination of my execution of your request & my ardent desire. No other consideration could have induced me to postpone a measure you reckon essential to your health.
Nor shall time be lost in presenting you with this trivial testimony of the zeal with which I engage in any matter which goes to your comfort.
May success & happiness attend you.
Yours affy
Henry LeeAugust 22d. 1791Alexra
I wrote to you some time ago on the business of some of my friends.


Title: From Alexander Hamilton to William Seton, 22 August 1791
From: Hamilton, Alexander
To: Seton, William

Treasury Department Aug 22d 1791
sir

I have to acknowledge the receipt of Yours of the 18th instant.
The Transfers of the stock, which You have purchased on account of the united states, must be made to the vice President, the Chief Justice, the Secretary of the Treasury, the Secretary of State, and the Attorney General for the time being. In all future purchases, it will be most convenient to have the stock in the first instance transferred as here directed.
I am, sir   Your obedt Servt
Alex Hamilton William Seton EsqrCashier of the Bank of New York


Title: To Alexander Hamilton from William Ellery, 23 August 1791
From: Ellery, William
To: Hamilton, Alexander

Collrs Off. [Newport, Rhode Island] 23d. Aug: 1791
Sir,

This will be accompanied by a weekly return of monies recd. and paid, and the copy of an endorsment on Certife No. 22 granted Apl. 23d. 1791 at this Port.
To your letter of the 10th of this month, requesting the particular circumstances that led to a remeasurement of the Brig Sally &c I would answer; that the property of said Brig having been transferred to Messrs Lyon and Lawrance citizens of this District, and by them, before a new Register was granted, to Peleg Clark, a citizen of this Town, as appeared by regular bills of sale, it became necessary that she should be remeasured by the Surveyor of this Port where she then lay. The tonnage at which she was registered in the Port of New Bedford Decr. 18 1789, as will appear by the Certife. of Registry No. 40 which was transmitted to you on the 18th. of July 1791 was sixty six tons; and this also appeared by a Certife. given by the Collector of New Bedford to one of the former Owners of the Brig Sally of the tonnage paid by him, which Certife. was handed to me by Mr. Lyon. The length, breadth and depth of said Brig as taken by the Surveyor of the Port of New Bedford appears in the Certife. of Registry transmitted as before mentioned. Her length as taken by the Surveyor for this Port is Sixty eight feet nine inches, her breadth twenty feet, her depth eight feet, and she measured Ninety five tons and a half, which was twenty nine and one half tons more than the tonnage at which she was registered in New Bedford. This great difference led me to write to Col. Pope on the subject, to which he returned the following answer “On examining the papers in my office find that in making out the Regr. I took the [papers] of another vessel, which was consented to, signed and sworn to by one of the owners of said Brig prior to making out the Register. Whether he did it designedly or ignorantly I know not. William Gordon measured all the vessels within my District as soon as conveniently could be after the Act for Registering Vessels &c took place: And the Certifs. of admeasurement he put on file in the Office, that whenever application was made for a Regr. I might resort thereto. In registering the above Brig I took a wrong Certife. I have sent you inclosed copies of the two Certifs that you may see how nearly Mr. Lymans measurement and Gordons agree. The Registry in your office must rectify the mistake.” Inclosed are the copies referred to by Col. Pope. Upon the receipt of this answer I advised him to inform you of the mistake and how it arose; but have not received an answer to my letter. Thus, Sir, I have given you all the information I am possessed of respecting this matter, and more perhaps than your letter implied. I would only beg leave to observe that admeasurements of vessels anew conduce to an accurate ascertainment of their tonnage, and to correct errors. I have heard that in the reported amendment to the Act for Registering and Clearing vessels, Regulating the Coasting Trade &c it is proposed that on the transfer of the property of a vessel to a person or persons residing in a district different from that in which her former owner or owners resided, she is not to be admeasured anew; but the first admeasurement is to be inserted into every subsequent Certife. of Registry. If this should take place the present form of Certifs. must I conceive be altered, and there will be no check in any case.
On the 11th. of July I transmitted a Statement of the case of the Seven Brothers, and of Joseph Finch her late master, on the 2nd. of this month I advised you of the death of Capt. Browning of whose testimony I hoped to avail myself on the trial of that Brig: of the adjournment of the District Court, of my having seized the Sloop Betsy, and of my apprehensions that vessels condemned would sell for a meer trifle unless the Offrs. of the Customs interfered in the sale.
A Special Court was ordered for the trial of the Betsy on the day after that to which the District Court had adjourned. The Courts have met. Every method was taken to serve summons on persons whose evidences were material in the case of the Seven Brothers; but methods more successful were taken as I suppose by the claimant and others concerned, to elude the service of them. Unfortunately the absence of the Marshall from the State, and the sickness of the Deputy Marshall prevented the summons going out as early as was wished. The Witnesses having secreted themselves, or gone out of the State, the District Atty. moved for a continuance, which was not allowed, and on the Sixth day of the term the claim of Topham was withdrawn and the Libel United States vs Brigantine Seven Brothers John Topham Claimant was discontinued. The cause United States vs Joseph Finch was tried, and the Jury gave a Verdict in favour of the Plaintiffs for Four Hundred Dollars and Cost.
The Libel of the Betsy has been tried, and I believe She will be condemned; if not, and the Atty. of the District should judge it proper, an appeal will be made to the Circuit Courts, there being some Persons absent whose evidences would I think ascertain the quantity of goods delivered from her without a permit, to be of four hundred Dollars value and more. That she did run goods the Witnesses at the trial placed beyond a doubt. These trials in my opinion, and in the opinion of others, will have a beneficial effect. The masters of vessels, and their owners will I think learn from them to pay a strict regard to the Revenue Laws, if they should not no pains will be spared to detect the violations of them. A Writ was issued against the Capt. of the Betsy, but he had departed from the State before the Depy. Marshall was well enough to serve it. It will be served upon him when he returns.
I am, Sir,   Yr. most obedt. servant
W Ellery Collr A Hamilton EsqrSecry of Treasy


Title: From Alexander Hamilton to Jeremiah Olney, 23 August 1791
From: Hamilton, Alexander
To: Olney, Jeremiah

Treasury Department, August 23, 1791. Sends commission for Jeremiah Greenman as second mate for the revenue cutter “for the Connecticut & Rhode Island station.”


Title: From Alexander Hamilton to Timothy Pickering, 23 August 1791
From: Hamilton, Alexander
To: Pickering, Timothy

[Philadelphia, August 23, 1791. On August 26, 1791, Pickering wrote to Hamilton: “I have received … your letter of the 23d instant.” Letter not found.]