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

Paris August 23. 1791.
Sir

I acknowleged the reciept of your letter of the 24th. of May in my last of the 8th. of August. I have now the honor of acknowleging that of the 30th. of June inclosing one of the 25th. of the same month (both duplicates) which came to my hands yesterday by the way of the French packet.
My former letters will have informed you of the progress & issue of the affair of the reduction of interest. Although abandoned for the present I have hopes that this flattering idea may be realized ere long either at Amsterdam or elsewhere. Every preparation should be made for effecting it at latest in June next, when the first reimbursement is to take place on the loans made at Amsterdam. The proper previous steps seem to me to be for the U. S. to get as soon as possible all the money which they are in absolute want of, so as to leave a considerable term without making loans before the month of June. This being done gives time to their bonds to appreciate which will of course happen on the probability of no more loans being made at so high a rate of interest, & particularly if the U. S. shall have been able in the mean time to have established a credit in some other place.
The sums which may be considered as indispensable to the U.S. are those due to France—the interest of the debt to foreign officers—the interest due on the loans in Amsterdam next february—& as the 2½ million of florins to be sent to America are to be taken out of the loans made, they may be considered of the same description. Supposing these sums to be provided for in the early part of the next winter so that the U. S. may be presented to the view of money jobbers as free of the necessity of making loans for some time, the practicability of reducing their rate of interest for June next at latest seems to me assured. Its being possible sooner will depend on the resources the U. S. may in the mean time find out of Holland. Their aspect is promising at present, but it would be wrong to rely too much on them until the experiment shall be fully made.
I informed you in my last on what footing the intended loan at Amsterdam stood. Since then I have heard nothing from the bankers on the subject although I expected it long before this. The only mode I had of attempting to reduce their charges was by leaving them the alternative of doubling the loan in the case of their fixing them at 3½ instead of 4. pc. I expected then to have recieved their answer early enough to have authorized them (as the loan was not to be opened before the beginning of the next month) to extend it even without the reduction of the charges. They know that you were satisfied with the late reduction of them to 4 pr c. They know also the advantages the U. S. derive from the payments they make at present to France, on the purchase of their own funds, by means of these loans: of course I fear much they will refuse the reduction. Still I thought it my duty to try it by every means in my power as well for the interest of the U. S. as my own personal satisfaction. I gave them to understand the possibility which the U. S. had of liquidating their debt to France by arrangements independent of loans at Amsterdam so as to make them suppose that we were not absolutely in their power at present. I did not chuse to say any thing to them about an idea of loans elsewhere. This would be dangerous so long as the U.S. are in the indispensable necessity of procuring so large sums as those at present in arrears. In such a case I should fear the malevolence of a combination of those concerned either directly or indirectly in our loans at Amsterdam, & know not what effect they might produce on our credit in other places. I do not precisely see what they would or could do, but still I should have apprehensions of them if they knew our wants of money to be great & so our credit not firmly established. The more we shall have obtained from them & the less we shall be in arrears with our debt to France, when they come to know our desire of making loans elsewhere the less we shall have to fear from their attempts or their power to injure us.
With respect to the practicability of our making loans in other places I have every reason at present to believe they may be ere long obtained either at Antwerp London or Genoa. It must be observed however that my information on these subjects coming only from persons who are employed in making loans & who of course have hopes of being preferred if the U.S. should determine to make them, must be recieved with much caution & cannot be absolutely & unconditionally relied [upon]. It is however the only source of information that can be opened previous to actual experiment.
I have already put you in possession of this subject as far as it regards Antwerp. I wrote some time ago to a person in London, Mr. Alexander Donald, partner of a rich house established there, informing him that it had been hinted to me that it was not improbable that moneyed men of that country would be disposed to place their cash in loans if such were opened there for the U.S. & desiring him to give me his opinion on the subject. Mr. Donald though not personally known to me, seemed the most proper person to be applied to in such a case as well on account of his commercial connexions with the U.S. as the high opinion which I know to be entertained of him by the Secretary of State to whom he has been long known & who will be able to tell you how far his information is to be relied on. I therefore send you in his own words the answer which I have this day recieved from him—it is dated London Aug. 19.
“I have had several conversations with the money brokers upon the subject of a loan to the U.S. From all of which I am inclined to think that the thing is practicable, but this cannot be ascertained unless I was empowered to make some specifick proposal. I said that I had no authority for doing so, nor did I even know if application would be made for a loan, that I was only desired by a friend to enquire if such application should be made whether it could be accomplished & upon what terms. All the brokers I have spoken to are of opinion that the regular payment of the interest must be guaranteed to be paid here—one more shrewd than the rest observed that men who had money to spare would rather purchase into the American funds, which he observed allowed an interest of 6. p. cent p. ann. & could now be purchased for 17. to 18/. in the pound. I could only say in reply to this observation, that if the moneyed men of this country were to turn their attention that way, that the 6. p. cents would soon rise to 120 or perhaps 130. I do think that the credit of Congress stands so well & money is so very abundant in this country that a loan for half a million could be done provided the terms are made agreeable. If any further steps are taken in this business, the first to be adopted here will be inserting an advertisement in the publick newspapers intimating the business & calling a meeting of those who are disposed to lend the money at which time proposals will be laid before them for their consideration. I believe sir that the guarantee of Donald & Burton would be accepted for the payment of the interest which they have no objection to do upon being allowed a reasonable commission for their trouble.”
I shall write to Mr. Donald & inform him that the U.S. being able to make loans at Amsterdam at the present rate of 5. p. cent interest, the great inducement to make them elsewhere would be a reduction of that rate, & desire him to ascertain whether that can be done at 4½ p. cent p. ann. on a loan inferior to the one he proposes—& also to see if the advertisement he speaks of cannot be dispensed with, as it would be disagreeable in the extreme to take such a measure until the success was insured & then it would be useless. I have no idea of the commission which he would consider reasonable, but it will be necessarily higher than at Amsterdam where there is no guarantee. In England the loans cannot be opened in the name of a foreign power & of course the houses who undertake it must render themselves responsible to the lenders. I shall propose therefore to Mr. Donald in the case of this business being begun to join some other rich banking house with his, as presenting an additional security. If it were not for this security one house alone would be to be preferred for the reasons I have formerly mentioned to you.
Mr. Grand has written also to his correspondent at Genoa to sound him about the practicability of the U.S. making a loan there. He has just recieved an answer which gives hopes that one might be made for about a million of dollars at 5. p. cent interest, the whole of the revenues of the U.S. being pledged in general as well as some sufficient part in particular. This difficulty however I have no doubt might be got over. Should it be possible to effect a reduction of the interest in England or at Antwerp one of course would not be undertaken at 5. p. cent at Genoa. I have wished such inquiries to be made however as well to make us acquainted with the ground, without committing the U.S., as to excite the attention of those concerned in loans who being thus pushed on to be acquainted with the resources of America will necessarily consider them in a more favorable manner. I have formerly mentioned to you the inquiries that would be made by a relation of the Minister of Genoa at this court. These circumstances will of course facilitate the business should the U.S. find it for their advantage to open them in that country. I shall take care to keep you progressively informed of these several matters.
It seems difficult to obtain particular information respecting the mint of Holland. It is kept at Dordrecht & carried on by contract. I have as yet been able to get only the inclosed account of the alloy, sent me from Amsterdam with a promise of further lights, which will be forwarded to you when recieved.
You will have learned from the secretary of State that Drost agrees to go to America to establish the mint agreeably to your wishes. You will find him useful I think in other parts of the subject as well as those which are merely mechanical. He seems to have considered it with a good deal of attention both in its theory & practice. I communicated to him the result of your enquiries & reflexions. He approves much the decimal division you propose & the values annexed to the several pieces—except the small piece of gold. I mentioned to him your object in adopting it & the small number you purposed having struck. He thought it would be injurious, on account of its extreme diminutiveness, to the beauty & regularity of proportions which might otherwise be observed & that it would be wrong to have dyes made on purpose & as the U.S. have an entirely new ground to begin on he thinks they may with ease by avoiding the errors & abuses of the mints of all other countries, have the most perfect coin that has ever existed. He seems to be well acquainted with these errors & abuses & will be able to point them out.
One which he considers as among the most considerable is the introducing alloy into money. He has fully examined all the arguments on both sides of the question & is well convinced of the propriety of money being struck only of pure metal. I have spoken on the subject with others supposed to be skilled in it. There is variance in their opinion but the soundest among them are in favor of pure metal & say that nothing introduced or has so long supported the doctrine of alloy, but the facility which it gives to those employed in the mints to fraud government. The principal argument which I observe in favor of alloy, is that it hardens the metal & also that the part which is lost by rubbing & usage being mixed the loss is less. You mention doubts on the subject & Drost insists that the loss is less when the metal is pure. In this he is supported as well by his own experience as the opinions of the learned here. The other advantages which he attributes to pure metal are the security against counterfeits (as the eyes of every one, in a simple experiment of putting them in a common fire will immediately discover impurity without affecting the substance) & the superior value of the metal since the same weight when pure is intrinsically worth more than when joined to others. He agrees that an observation which I made to him has weight & that is that our coin, being to be taken from the monies of other countries which are alloyed, the purifying them will be an object of trouble & expence. On the whole I am much too ignorant of this subject to appreciate the various ideas of Mr. Drost, but should your determination be suspended until his arrival you will perhaps find some of them useful.
You seem to be fully convinced of the propriety of attending to beauty in coinage. Mr. Drost observes that it is important before the diameters be fixed that it should be known what are the subjects that are to be represented that they may be proportioned thereto—as well as thickness of the piece. He is much in favor of the idea of representing an eagle on the coins & particularly the large gold piece. This bird all the artists consider as the most proper for presenting a fine form. For that purpose however it would be necessary to remove those heraldic parts which cover the body in the arms of the U.S. It is probable I think you will find it proper to employ Mr. Drost to engrave the dyes of the several pieces of money. He has much merit in this act & has applied himself to study it in its relations to coinage much more than engravers in general. What has happened here lately shews the necessity of the engravers having this kind of knowlege. The artist they have employed as the engraver for their new coinage is considered as the most eminent engraver of medals. By an error which he has committed for want of this practical knowlege the dyes have failed & been obliged to be renewed already several times & it is not yet certain whether the new figures represented on that money by his advice, though handsome & well adapted to a medal, can be executed in coinage, on account of the multiplication of the pieces. On one side is the effigy of the King with his constitutional title—on the other the genius of France in the figure of an Angel writing down the constitution on a table placed perpendicularly before it. The pieces which have been hitherto struck are somewhat better executed than their former coinage (they are of silver only & are of six louis & of fifteen sols) but are infinitely inferior to copper pieces struck by Drost’s machine in England for Bolton & Co.
I have the honor to be with perfect respect & attachment   Sir Your most obedient humble servant
W. Short Alexander Hamilton secretary of the Treasury, Philadelphia


Title: Conversation with George Beckwith, 24 August [1791]
From: Beckwith, George
To:

PhiladelphiaAugust 24th [1791]
An Officer at the Head of an Executive Department.Extract
Mr. —— The National Assembly of France passed a decree a short time before Mr. Ternants embarkation, authorizing the formation of a new treaty of commerce with this country; if the influence of La Fayette and his friends, shall finally prevail in The French Councils, their general dispositions towards us, will tend greatly to forward this object.
George Beckwith


Title: Election to the American Academy of Arts and Sciences, [24 August 1791]
From: American Academy of Arts and Sciences
To: Hamilton, Alexander

[Cambridge, Massachusetts, August 24, 1791]
To all Persons to whom these Presents shall come,Greeting.
The American Academy of Arts and Sciences, established by a Law of the Commonwealth of Massachusetts, at a Meeting held the twenty fourth Day of August One Thousand Seven Hundred and Ninety one for the purpose of promoting the design of their institution, elected Alexander Hamilton Secretary of the Treasury of the United States of America a Fellow of their Society, and have granted unto him all the rights and privileges of a Member.
And In Testimony thereof, have affixed their Seal to this certificate and caused the same to be duly attested.

John Adams   President
Joseph Willard   Vice Presidt.

Attest
}
Secretaries

Eliphalet Pearson

John Clarke


Title: From Alexander Hamilton to William Ellery, 24 August 1791
From: Hamilton, Alexander
To: Ellery, William

[Philadelphia, August 24, 1791. Ellery endorsed the letter book copy of his letter to Hamilton of August 8, 1791, “Answered Augt. 24th 1791.” Letter not found.]


Title: From Alexander Hamilton to Joshua Wentworth, 24 August 1791
From: Hamilton, Alexander
To: Wentworth, Joshua

[Philadelphia, August 24, 1791. On September 7, 1791, Wentworth wrote to Hamilton: “I was honored by your’s of 24th Ulto.” Letter not found.]


Title: To Alexander Hamilton from Joseph Whipple, 24 August 1791
From: Whipple, Joseph
To: Hamilton, Alexander

Portsmouth, New Hampshire, August 24, 1791. “The Revenue Cutter being ready for Sea will proceed on a Cruize immediately; no arms or Military Stores having yet come to hand, I will borrow for the first Cruize Such as may be necessary. The person named for 3rd mate Should have been Samuel Hobart instead of Saml Hubert as copied in your letter of the 12th. Ulto. Herewith is inclosed a description of the Cutter received from the Surveyor. She will be accompanied with a Certificate from the Custom House by the Name of the  till the instrument intended in lieu of a Register with Such Name as you will be pleased to give her Shall be received. I find that notwithstanding my Utmost endeavors to compleat this Vessel within your limitations the cost will exceed them.…”


Title: From Alexander Hamilton to George Cabot, 25 August 1791
From: Hamilton, Alexander
To: Cabot, George

[Philadelphia, August 25, 1791. On September 6, 1791, Cabot wrote to Hamilton: “Being absent from home when your letter of the 25th ultimo arrived, it has been out of my power to answer the enqueries it contains until this day’s post.” Letter not found.]


Title: From Alexander Hamilton to Jedediah Huntington, 25 August 1791
From: Hamilton, Alexander
To: Huntington, Jedediah

Treasury Department August 25th 1791
Sir,
I have considered the case you State in your letter of the 22nd July respecting the repairs of a french vessel.
I am of opinion that she will not be entitled to an American register if rebuilt in any manner whereby the identity of the Vessel is preserved. But if she be wholly taken to pieces, I perceive there can be no impropriety in making use of her Timber in the building of a new Vessel.
I am Sir   Your obedt Servant
A Hamilton Jedh Huntington EsqrCollr New London


Title: To Alexander Hamilton from William Seton, 25 August 1791
From: Seton, William
To: Hamilton, Alexander

[New York] 25 Augt. 1791
Sir
I have the honor to acknowledge the receipt of your Letters of the 20 & 22d. Agreeable to your desire Mr. William Hill has been paid 4000 Dollars on account of his Clothing Contract & enclosed you have his receipt for the same.
The Transfers of the Stock purchased on account of the United States shall be made in the names you point out. Since my last I have only purchased 6810 30/100 Dollars of the deferred debt @ 12/6. The transfers are not all made but will be between this and Monday when I shall transmit a proper return.
I have the honor to be with the greatest respect


Title: To Alexander Hamilton from Wilhem and Jan Willink, Nicholaas and Jacob Van Staphorst, and Nicholas Hubbard, 25 August 1791
From: Willink, Wilhem,Willink, Jan,Van Staphorst, Nicholaas,Van Staphorst, Jacob,Hubbard, Nicholas
To: Hamilton, Alexander

[Amsterdam, August 25, 1791. On August 29, 1791, Willink, Van Staphorst, and Hubbard wrote to William Short: “Begging leave to confirm our Respects to you of 25 Instant, We have now the honor to inclose you Triplicate of our Letter of same date to the Secretary of the Treasury of the United-States.” Letter not found.]


Title: To Alexander Hamilton from William Ellery, 26 August 1791
From: Ellery, William
To: Hamilton, Alexander

Collector’s Office [Newport, Rhode Island]Augt. 26th 1791
Sir,
Agreeably to my expectation the Sloop Betsy is condemned, and is to be sold on the 14th. day of the next month. I should be happy to receive your direction with respect to the conduct of the Officers of the Customs as to the sale of said Sloop, prior to the day of sale; and it would add to my happiness if at the same time you would give me your opinion how the monies arising from the sale should be distributed among the Offrs. of the Customs. The forfeiture of the Betsy was for a breach of the old Collection Law made at a time when the Surveyor for North Kingstown had not received his Commission; nor I believe any other Surveyor for this District excepting the Surveyor for this Port; and there is a difference between the old and new Collection Law with regard to the manner of distribution. By the old Law the United States are to receive one moiety, and the other moiety is to be divided into three equal parts, and paid to the Collector Naval Offr. and Surveyor of the District wherein the same shall have been incurred &c. By the new Law the moiety which falls to the Offrs. is to be divided into equal parts, and paid to the Collector and Naval Offe. of the District, and Surveyor of the Port, wherein the same shall have been incurred, or to such of the sd. Offrs. as there may be in the said District. Has any Offr. a right to a share of the moiety to be distributed in the present case, beside the Collr. & Naval Offr., and if any what Surveyor?
I am Sir   Yr. most obedt. servant
W Ellery Collr A: Hamilton Secry of Treasy


Title: From Alexander Hamilton to Le Roy and Bayard, [26 August 1791]
From: Hamilton, Alexander
To: Le Roy and Bayard

[Philadelphia, August 26, 1791]
Gentlemen
Being informed that you are drawing bills, if it is convenient to you to let me have 1000 pounds Sterling at 4 ⅌ Ct above par payable in London on my note at thirty days, including the discount, you may remit that sum by the Packet to John Barker Church Esquire & on notice of its being done my note shall be given accordingly.
I remain with much consideration & esteem   Gentlemen   Your Obed ser

A Hamilton
Aug 26. 1791
Messrs. Le Roy & Bayard


Title: From Alexander Hamilton to James Brown, John Graham, and George Pickett, 27 August 1791
From: Hamilton, Alexander
To: Brown, James,Graham, John,Pickett, George

Treasury DepartmentAugt 27 1791
Sir
I learn, with real regret, the disappointment you experienced in your intended subscriptions to the Bank of the United States. It was very much my wish that the property in the Stock of that Bank should be generally diffused throughout the States.
But its not having been foreseen, any where, that so rapid a subscription would take place, has been the cause that adequate provisions were not made in the law: which might have been favorable to greater distribution.
I am sorry to be obliged to add that I do not at present perceive any mode by which the object of your letter may be attained.
With great consideration,   I am, Gentlemen,   Your obed Servant
A Hamilton Messrs Geo Picket, John Graham & James Brown,Richmond


Title: Enclosure: [Account on the State of Argriculture], 27 August 1791
From: Peters, Richard
To:

The farms I have selected keep on an average 16 head horned Cattle, 4 horses, 12 Sheep & 12 Swine.

Dr. Farm

To annual Int: on capital 200 a[cre]s £ 8 ⅌ acre £1600 @ £ 6 ⅌ cent
£ 96. 0. 0

Stock and implements.
{
4 horses at £ 15 each
£60. 0. 0

8 Cows at £6. do.
48. 0. 0

cart, waggon, ploughs Harrows, geers &c
}
60. 0. 0

12 Swine
 12. 0. 0

£ 180. 0. 0

on the above £180. I only charge £6 ⅌ ct.
10.16.
£ 106.16. 0

tho’ the annual loss in some articles is £20 ⅌ Ct. & in none less than £10. decrease in value by age in Horses & cattle, accidents, wear & tear, are the causes. I have made no accot. of annual Losses by wear of buildings, or accidents to stock.

Annual expenditures besides the personal labour of the farmer & family, and the produce & cash used for their support.

one hired man & his maintenance
£ 37.10. 0

Extra wages at hay & harvest, & expences
10. 0. 0

Days hire for occasional business
5. 0. 0

Smith’s bill
3. 0. 0

all the hay consumed by the Stock
90. 0. 0

Rye 30 bls. at 4/6
6.15. 0

corn 100 bls. @ 3/.
15. 0. 0

Buckwheat 100 @ 2/6
12.10. 0.

Potatoes 80 bls. @ 1/6
6. 0. 0

Fire wood 20 cords @ 5/.
5. 0. 0.

Seed Wheat 15 bls. @ 7/6 rye 5. @ 4/6
6.15. 0.

Potatoes 12 bls. @ 1/6
0.18. 0

Corn & Buckwheat
 1.10. 0
199.16.

Direct Taxes of various descriptions have in some years been £20. now perhaps—but these are lessening

  15.

£ 321.12. 0.

Contra

  By
  130 bls. wheat a 7/6.

   50 rye @ 4/6

  180 corn @ 3/.

   30 Oats @ 2/6

  175 buckwheat @ 2/6

  100 potatoes @ 1/6

  Roots & other vegetables in the garden

  2 Cattle raised annually

  Wool of 12. Sheep 36 lbs @ 2/.

  Pork 1400 @ 3 d.

  Poultry in value

  Hay 30 tons @ £ 3

£ 48.15. 0

11. 5. 0.

27. 0. 0.

3.15. 0

21.17. 6

7.10. 0.

6. 0. 0.

4. 0. 0.

3.12. 0.

17.10. 0

3. 0. 0

90. 0. 0

Dairy 8 Cows

   6 Calves sold @ 20/. each
£ 6. 0. 0.

   (memo.—I allow 2 Calves raised).

   Butter 832 @ ⅓
52. 0. 0.

   Cheese 100 @ 6d.
2.10. 0.
60.10. 0.

As to offal, milk &c. except a small part for the family, it is consumed by the calves & pigs, & accounted for in their value.

Flax 150 lbs @ 7d.
£ 4. 7. 6.

deduct ½ for breaking &c.
   2. 3. 9.

£ 2. 3. 9.

4 Bls. of seed @ 5/. to be added
}
1. 0. 0.
    3. 3. 9.

£ 316.18. 3.

4.13. 9.

Balce. agt. farmer

£ 321.12. 0

N B. about 8 bushls. wheat pr. acre is a full allowance for the better kind of Farms in these parts. Some do not yield 6., and 8 out of 10 do not come up to 8 bushls. per acre. The farms I have selected sow from 15 to 20 a[cre] s. winter Grain. The average of actual crops is however less than 8 bushls. to the acre.


Title: To Alexander Hamilton from William Ellery, 29 August 1791
From: Ellery, William
To: Hamilton, Alexander

Collectors Office [Newport, Rhode Island]Augt. 29th 1791
Sir,
I wrote a letter to you by the Post, last Friday, because I wished to receive as early an information on the subjects mentioned in it as might be convenient.
I am informed that the situation and circumstances of Thomas Cotterell late owner of the Sloop Betsy are such that if the prosecutions to which he is liable should be commenced against him, and be successful he and his family would be utterly ruined. Not long after he had transgressed the Law, he sold said Sloop for six hundred Dollars, and the purchaser has since laid out upon her between two and three hundred Dollars, which Cotterell must repay. He must also pay for the detention of the vessel, and a bill of a cost arising from the trial of the Libell against her amounting to about one hundred and fifty dollars. The intention of the Law, in inflicting fines, penalties and forfeitures in the violation of Law will, I think, by the seizure and condemnation of the Sloop Betsy be fully answered with regard to Cotterell, and it will restrain others, if there should be others, disposed to perpetrate like offences. I would therefore submit it to your better judgment whether prosecutions against him may not be suspended for the present.
I forgot to mention in my letter of the 23d: of this month, that the Ushers submitted judgment, and their Council said that their causes would be carried up to the Circuit Court by writ of Error, to gain time that an application might again be made to you to mitigate the penalties they have incurred.
I have received your circular Letter of the 5th. of this month, and shall carefully attend to the several matters contained in it.
I have not deviated in any instance from the instruction communicated in your circular Letter of the 30th. of Nov. 1789, unless the taking of ninety cents for the Licenses of vessels under twenty tons should be considered as such, and this was done for the reasons which I assigned in my letter of the 12th of July 1790, and because I found that such fees were taken in the District of Boston and Charlestown.
In this District a practice has obtained of measuring vessels of the United States previously registered, and of charging for such admeasurement; but only where there has been a transfer of property of the vessel from citizens of another District to Citizens of this, and the Vessel has been in this District at the time of Registry; and the remeasurement in such cases has been thought proper for the reasons suggested in my letter of the 23d. of this month, and has not excited any dissatisfaction here. Permit me to be more explicit by adding to the reasons suggested in that letter that Sec. 8 of the Act for Registering and clearing vessels &c expressly requires the Surveyor previous to the registering or granting of any Certife. of Registry &c. to deliver a true account in writing of the built &c of every vessel to the person authorized to make such Registry and grant such Certificate thereof: and the form of the Certife. of Regy. expresses that  Survey or of this District having certified to Us &c. Where no Certificate under the hand of a Surveyor of a port or District has been delivered to the Collector of a District in which a subsequent Register made, would it not be improper to issue a Certife. of Regy. expressing that the Surveyor of another District had certified to Us what he had not certified. Must not defacements by erasements and interlineations take place in subseqt. Certifs. of Regy. if new admeasurements should not be made, and would there be any check upon tonnaging? Perhaps the paragraph referred to doth not extend to admeasurements in the cases mentioned. There may have been admeasurements in Districts where vessels may have happened to come.
Inclosed is a copy of the table of fees set up in my office, No Offr. of the Customs is more desirous than I am, that Uniformity may take place with regard to fees, and all proceedings in the Custom Houses of the United States.
This letter is accompanied by a weekly return of monies received and paid, By a List of eight bank notes of the bank of N. York amg. to eight hundred dollars, one moiety of which is now transmitted to the Treasr.
I am, Sir, yr. most obedt. servant
Wm Ellery Collr A Hamilton EsqrSecry of Treasy


Title: To Alexander Hamilton from William Hall, 29 August 1791
From: Hall, William
To: Hamilton, Alexander

New York 29th Augt. 1791
Sir
Mr. Mort & myself have examin’d the Delaware as high as Pequest about 94 miles above Philadelphia & have found several good situations. On the Raritan there are none. Our Money running short oblig’d us to come to New York for a supply. We propose going up the Pasaic in a few Days, after which you shall receive a report of our observations.
I call’d on Mr. Marshall and deliver’d your Letter. He answered very freely every question I put to him. He seems to understand the theory of the Business but I am very doubtful if He is much acquainted with the practice. The Modells He is making will not work & I much fear some money will be expended and delays ensue on that acct. Mr. Mort I expect will be in Philadelphia in 6 or 8 days. To him I beg leave to refer you for particulars. He was present during the conversation but did not see the Modells. Mr. Marshall might have made the Modells to have worket much easier than larger Machines.
I have the honor to be   Sir   Your most obed. Servt.
William Hall No. 57 Maiden Lane


Title: To Alexander Hamilton from Nathan Keais, 29 August 1791
From: Keais, Nathan
To: Hamilton, Alexander

Washington [North Carolina] August 29, 1791. “Inclosed is a Copy of John Braggs & Stephen Tinkers Bond, taken in Consequence of a Contract for Staking out the Channel of news River leading to New Bern. I have also Contracted with John Payne for Staking out the Channel leading to Edenton for Fifty dollars.…”


Title: To Alexander Hamilton from William Seton, 29 August 1791
From: Seton, William
To: Hamilton, Alexander

[New York] 29th Augt. 1791
Sir
I have the honor to enclose a Return of the Stock I have purchased on account of the United States to this day inclusive, being 13291 8/100 of 3 ⅌ Cents & 173708 88/100 Deferred, amounting to Dollars 116542 69/100 which Sum has been ⟨received⟩ from this Bank. I expect in a day or two to compleat the whole investiture of 150,000 Dollars.
I have the honor to be with the greatest respect   Sir &c


Title: To Alexander Hamilton from William Skinner, 29 August 1791
From: Skinner, William
To: Hamilton, Alexander

United States Loan Office, [Hillsboro] NorthCarolina August 29th. 1791.
Sir
I have heretofore at different times taken the liberty of communicating to you the desire this State had of subscribing to the Loan for the Certificates in the Treasury and Comptroller’s offices, and that attempts had been made for that purpose, in behalf of the State, That not answering their wish, That another attempt had been made to subscribe for them in the name of the Comptroller, this much I believe I have heretofore communicated to you;
Wishing your particular directions respecting that business; None such having as yet come to hand, I take the Liberty of observing further that I have sufficient reasons to believe, a third attempt is intended, and indeed in part has been accomplished. A young man, a stranger whom I did not suspect, on the 20th. Curt. became a Subscriber on my Books for 22,415. dolls. 10 Cents, for which he obtained a rect. in the name of a Merchant at Fayetteville; Since that the same young man came forward a second time with Certificates to a larger amount; Previous to his coming in I had reasons to believe a Deception had been made use of. I observed to the young man my suspicions, and wished to be satisfyd. whether the Certificates by him handed in were not the Pubs: he evaded giving me any satisfactory answer, the Business rests here, the young man has no rect. for the last Deposit nor have I suffered him to Subscribe. I shall keep him off until the close of the Subscription in expectations of your directions. I wish I might be ordered to administer an Oath, to suspected persons, which if it should not come to hand before the close of the Subscription, it might be complyd. with before issuing the Certificates on Interest. I expect the young man to come forward a third time (hourly). At present there dont appear to be a probability of the Loans being filld, in this State, as the whole Sum subscribed at this day amounts to only 991.600 Dollars & 90 Cents.
The Governor of this State since taking the advice of Council has observed to me, that he had [been] misinformed; that New York has not Subscribed to the Loan but to the Bank.
I am most respectfully   Your most obedient Servant

W Skinner
The Honble Alexander Hamilton Esqr


Title: Enclosure: Bucks County Pennsylvania, 29 August 1791
From: Wynkoop, Henry
To:

Quantity. 200 acres. value 3.200 Ds.
Two hundred acres being nearly the average quantity of the Farms in this quarter, have taken that as the most convenient portion from which to form the required Estimates.

Arable land 125 acres.
The arable Land divided into five fields of twenty five acres each, makes in the whole 125 Acres.

Pasture 50 acres
The course of cropping pursued here requiring three fields to be under tillage—two of course will be left for pasture, which make 50 acres.

Orchard &c. 10 ac.
Orchard, Garden, House & barn yards, lanes &c. supposed to occupy ten acres.

Meadow 15 acres.
The natural meadows in this part of the country being few—yet as every farmer finds means for alloting some portion of his land for that use, suppose the nearest average 15 acres.

Woodland 50 acres.
Timber being an article indispensably necessary for fuel, fencing, building &c. have allowed fifty acres for that use.

Wheat 200 bushls. 90 Cents 180 dolls.
One of the aforesaid fields is alloted in rotation for wheat & rye, suppose twenty thereof to be sown with wheat, will yield, communibus annis, ten bushels per acre—for altho’ in seasons, on well improved grounds twenty, thirty and even thirty five bushels may be produced from the acre—yet from the many casualties to which land tillage is exposed, so that in some seasons the best improved grounds may not produce even five bushels, have from my own observation, and that of an intelligent neighbouring farmer, taken the above as the nearest supposed medium—making two hundred bushels, which at 90 cents pr. bushl. is 180 Dollars.

Rye 50 bushels @ 60 cents. 30 dolls.
Rye likewise ten bushels to the acre, the remainder of the field being five acres will yield fifty bushels, which at 60 cts. pr. bush: makes 30 dollars. N.B. the field on which the wheat & rye is sowed, is generally also put in with grass, and lays for pasture two years.

Corn 300 bushs. 40 cents 120 dols.
One field is generally alloted to Indian corn & Buckwheat in the same proportion with wheat & Rye. The twenty acres of Corn will average fifteen bushels pr. acre making in the whole 300 bushels at 40 cts. ⅌ bush: is 120 dolls.

Buckwheat 75 bushs. 30 cents 22½ dols.
This Grain is so precarious in it’s growth that it is extremely difficult to form an estimate of its general produce; but suppose 15 bushs. pr. acre, which from five acres, being the remainder of that field occupied by the Corn, will be seventy five bushels, valued at thirty cents pr bushl. is 22 dollars 50 cents.

Barley.
So little of this Grain is raised here, that I did not think it worth notice.

Oats 100 bushs. @ 20 cents is 20 dolls.
By the course of cropping commonly used here, this Grain is sowed, for the sake of ease & convenience to the Farmer, upon some part of the fallow intended for wheat, to which it generally proves injurious—therefore is not largely propagated—have only allotted five acres which will average twenty bushels ⅌ acre—making in the whole one hundred bushls. at 20 cents pr. bushl. is 20 dollars.

Flax & Seed. 30 dolls.
This is also generally raised on part of the fallow—suppose two—which on an average may yield two hundred and fifty pounds of swingled Flax, & twelve bushels of Seed, which both together may be worth 30 dolls.

apples & cyder 30 dolls.
Every Farm has more or less of orcharding. Eight acres allowed for that use—the product whereof in apples & cyder cannot be worth less than thirty Dollars.

Hay 20 tons @ 6. dols. each. 120 Ds.
Altho’ fifteen acres only are allotted for meadow, which probably on an average will not yield more than that number of tons, yet as the farmers by sowing grass seed on their arable land, improved with dung, plaister of Paris &c., annually mow more or less of those, I have allowed 20 tons, worth 6 dollars each—120 Dollars.

Cattle annual product 70 Dolls.
I suppose a Farm of two hundred acres will on an average support twelve head of cattle. Of those I suppose five milch cows, which will each yield per annum one Calf; two of them to be raised and three fatted, the latter worth 6 dollars. Five milch cows will produce fifteen pounds butter pr. month each, for seven months which makes in the whole 525 lb. at nine cents pr. pound—is 47. Dollars & 25 cents. Five months allowed for their being farrow, or fatting the Calves. Two calves annually raised, affords opportunity for disposing of that number of Cattle annually, either in Beef or milch Cows, which being worth 16 dollars each, makes 32 dollars: making in the whole 79 dollars 25 cents. Deduct for accidents &c. 9 Dollars 25 Cents—leaves an annual product of 70 Dollars.

Horses. ☞
Whatever these may produce must be considered as included in the general product of the Farm, for the cultivation of which they are made—by the propagation of this animal—unless it be in the more interior parts of the country where no market can be procured for Grain &ca.

Sheep annual product 28. dolls.
Twenty store-sheep may be conveniently kept on a 200 acre farm. Their wool will average forty pounds per year, worth 23 Cents per pound, which makes 10 Dollars. Their increase in Lambs twelve—this number being to be disposed of annually either in Lamb, or fatted Mutton—they may be worth 1⅓ dollars each—makes 18 Dollars. Thus the whole annual product on Sheep will be 28 Dollars.

Hogs annual product 80 Dollars
Ten Hogs may be considered as the average number raised annually on a two hundred acre farm—weighing 200 lb. nett each; making 2000 lb., @ 4 cents per pound. The value of the annual product will be 80 Dollars.

Poultry ann. prot. 10. Ds.
Suppose on an average ten dozen may be raised, worth one Dollar per Doz: their product will be Ten Dollars.

Wood consumd. in fuel 25 Cords.
Allowing one Kitchen fire which burns, more or less, the whole year; and one other fire during the winter, for the convenience of the Family, I suppose the two fires will consume twenty five cords.

Consumed by Cattle, Horses, Sheep, Hogs and Poultry—Indian Corn 200 bushels. Rye 25 do—Buckwheat 40 do.—Potatoes 75. do.—Hay 20 Tons.

The family consumption may be estimated by what will support nine persons vizt. the man, his Wife & three Children, one man hired by the year, one bound boy & Girl, the extra hiring of hands in harvest, & Hay making, spinsters, Visitors &ca equal to the maintenance of one person more during the year.

Tax paid annually for defraying the expences of the Country, supporting the poor & repairing the Roads, will average about 8 Dollars.


Title: To Alexander Hamilton from William Short, 30 August 1791
From: Short, William
To: Hamilton, Alexander

Paris Aug. 30. 1791.
Sir
I make use of this conveyance by the English packet merely to announce to you that the bankers at Amsterdam have in consequence of my letters to them had a loan contracted for in behalf of the U.S. for six millions of guilders. The celerity with which it was taken up, as they inform me, shews the continuance of the high ground on which the credit of the U.S. stands at that place.
The bankers inform me that, agreeably to my desire, they announced this loan to you immediately on its being contracted for. It will be considered as a double loan & appropriated as directed in your letter of the 24th. of May.
Having an opportunity by the way of Havre to-morrow I defer till then the details respecting the commission on this loan as contained in a letter of the bankers to me of the 25th. inst.
I have the honor to be, Sir, your most obedient servant
W: Short The Honble.Alexander Hamilton Secretary of the Treasury—Philadelphia.


Title: From Alexander Hamilton to Thomas Jefferson, [31 August 1791]
From: Hamilton, Alexander
To: Jefferson, Thomas

[Philadelphia, August 31, 1791]
Mr. Hamilton presents his compliments to the Secretary of State. He would think the turn of expression on the whole safer, if instead of what follows the words “depreciated medium” the following was substituted—“and that in the final liquidation of the payments, which shall have been made, due regard will be had for an equitable allowance for the circumstance of depreciation.”


Title: From Alexander Hamilton to Tobias Lear, [31 August 1791]
From: Hamilton, Alexander
To: Lear, Tobias

[Philadelphia, August 31, 1791]
Dr. Sir
The only person definitively concluded upon by the President, is Philip Thomas, as Inspector of the revenue for Survey No. 2, in the District of Maryland, comprehending the counties of Alleghany, Washington, Frederick, & Montgomery.
It is his intention also to appoint Mr. Morris, the now 3d. mate of the Cutter at N.Y., to the Office of first mate, Mr. Boudenot having written me a letter of resignation; but, as he has not yet sent in his commission, the execution is suspended.
Mr. Carrington wishes that a duplicate commission for Colo. Marshall of Kentuckey may be forwarded through him, for fear of accident. I did not mention this to the President, but I believe it will be right to do it. Will you take the President’s directon?
Yours wth great regard

A. Hamilton
August 31st. 91.

Be so good as to deliver the papers herewith to the President.


Title: To Alexander Hamilton from Benjamin Lincoln, 31 August 1791
From: Lincoln, Benjamin
To: Hamilton, Alexander

Boston Aust 31 1791
Sir
When I reported to you that I had contracted for the Cutter to be built in this State I mentioned that she was to be compleated fit for the sea that is with riging sails boats &c for 1440 dollars. After Captain Williams was appointed master he suggested to me his wishes that there might be some deviation from the plan I had given and on which the agreement was founded. On this I wrote to the builders that they might gratify the wishes of Captain Williams but that they must always bear it on their minds that they must not as they regarded their own interest do any thing to augment the expence for no additional allowance could be made them. Notwithstanding this caution they attended so far to the request of Captain Williams as to increase the size of the vessel about seven tons besides she is orniminted with a handsom head, quarter badges and a considerable carved work about her stern. By building a larger vessel it not only increased the expence of the hull but also of the riging. After the vessel was finished the builders wished me to see their accounts. I told them as I could not make any allowance it would not be of any importance and therefore declined examining them. I understood however that the vessel cost them about two thousand & fifty dollars (six hundred more than the contract). As I could not make them any allowance for their extra expences, they wished to build an other vessel smaller and receive this back when the second should be finished & delivered. I did not feel my Self authorized to close with them on their proposition. I think notwithstanding that It will be for the interest of the United States to do it. This vessel is really too heavy for the number of hands assigned her. A vessel of the size I first mentioned of about 58 tons would in my opinion be much better than the one we now have all circumstances considered. She would be big enough to answer every purpose and the expences of repairs much smaller. If the builders should build a smaller one they will, I think, build her at the rate of 1440 dollars for 63 tons & 63/95. This will reduce the expences and bring them nearer to your wishes.
On receiving directions to compleat the light house at Portland I employed for this purpose the same Gentlemen who had been appointed by this state to inspect the building of it in the first instance. The business being compleated I called for a settlement of their accounts. They have given them in & have charged to the United States the whole expence of the whole Light house and given credit for the sum they received in pay from this common wealth from which there is a large ballance due to them. I do not feel my self authorized to settle this account as stated. I do not consider the U. S. chargable with any expences prior to the Cession of the light house. The trustees are not satisfied with this decision. If I am wrong your suggestion of it will lead at once to close their accounts as stated. If right, your confirmation will end the dispute.
You mention in yours of the 20 inst the importance of prosecuting the receiver of run goods. How will this do after we have been obliged to use them as witnesses in a cause?
Here with you will receive my accounts for the last quarter, the exportation return is making out, and also my weekly return.
Secretary of the Treasury


Title: To Alexander Hamilton from William Short, 31 August 1791
From: Short, William
To: Hamilton, Alexander

Paris August. 31 1791
Sir
I had the honor of announcing to you yesterday by the way of the English packet the loan contracted for at Amsterdam for six millions of florins. I thought it best to give you the details of what has happened with respect to the charges & commission by this conveyance which is a person going to embark at Havre.
My several letters will have informed you of the several attempts I made to bring the bankers to undertake the loan at a rate of commission lower than the last. As I was unable to persuade them by arguments drawn from the interests of the U.S. I endeavoured to prevail on them by considerations of their own advantage & therefore making use of the authority given me in your late letters of repeating the loans, I agreed they should extend it to six millions, as they had asked to do; provided they would reduce the commission ½. p. cent—adding that if they refused this they must confine the loan to three millions only. It was possible that apprehending the U.S. might find other means of liquidating their debt to France through those who they knew wished to speculate in it, they might consider it more advantageous to make a loan of six millions at 3½. p. cent commission, than one of three at four p. cent. This was the only means left me of attempting to reduce them & I intended as I mentioned to you, that if they continued to refuse the reduction, then to authorize the extension of the loan to six millions, as I was persuaded at that time that it was the most advantageous measure that could be adopted for the U.S.
The bankers however, making use of their knowlege of the present situation of the U.S. & the advantages they derive from monies borrowed at Amsterdam, counting from past experience on the approbation of government, & supporting the measure by reasons of a local & momentary nature which they observe were necessarily unknown to me, have made this loan for six millions of florins & insist absolutely on the commission of four p. cent for the whole, notwithstanding the express condition of the contrary in the authority I gave them.
They have written me a voluminous letter to prove their right to this commission in consequence of their agreement as mentioned in their letter to you of Dec. 23. 90. approved & forwarded by me & also to shew that their present conduct cannot fail to be applauded. I do not send you a copy of this letter on account of its immense length & because I am persuaded they will have forwarded it to you as it contains all the reasons they could collect for their approbation.
It is dated the 25th. of August & came to my hands by the last post so that I have not yet answered it. They assert that they acquired a right to insist on 4. p. cent commission on all future 5. p. cent loans & produce the clause of their letter of Dec. 23 to you, & my forwarding it as evidence of this right. My letter to you of Jan. 15. will explain that circumstance & shew that I did not suppose myself authorized to make any contract for any other loan than the one immediately undertaken. I even had the clause of their letter changed & forwarded it in the form you received it (as mentioned in my letter to you of Jan. 18.) because what they told me was their reason for inserting it was to shew that they had not engaged to accept 4. p. cent commission on loans at a lower rate of interest. I made the less difficulty in forwarding their letter in the corrected form because as was understood necessarily between us every future loan was to be an object of future discussion & the more so as I could not know whether I should be employed to negotiate them. I own however I had no idea at that time of the commission’s being reduced as it appeared to me certain that the profits of those employed were reduced as low as the usage of that place could admit of. Still I thought it useful to leave the subject open, that the U.S. might take such advantages as experience or their improved situation might give them & proper, that if any other person should succeed me in this business he might have the free exercise of his exertions for serving the U.S. in attempting to reduce the charges. Besides, a permanent engagement for the rate of commission wd. have been impolitic as it would have been binding on government & not on the commissioners, & of course never would have been consented to by me under any circumstance & particularly when I did not know how long I should continue to negotiate these loans for the U.S.
All the right which they claim therefore under their letter of the 23d. of Dec. I consider as groundless & their conduct in thus extending the loan contrary to the authorization contained in my letters, as by no means justifiable.
The reasons which they give for thus precipitating the loan as derived from local circumstances unknown to me, & which they say would have removed all their doubts of being approved if those mentioned above had left any, are 1. that the Province of Holland is to bring a loan immediately on the market for eight or ten millions of guilders for the service of the East India company & that it was therefore necessary to contract previously with the undertakers. 2. that it is now certain a tax is to be laid of 1. p. cent on all loans negotiated in Holland by foreign powers & that it will probably commence about the beginning of the next year, & of course it was to be desired to commence this loan immediately so as to make another before the new tax takes place. 3. that experience has shewn that a loan for six millions can be filled in nearly the same time as one of half of that sum.

These considerations add to my former persuasion that it is much for the advantage of the U.S. to push their loans at present, on the terms of the last as to charges, if they cannot be reduced (the probability of success in London not being yet so established as to authorize the abandoning the resources of Amsterdam) yet they will not prevent me from still endeavouring to bring the bankers as to the present loan to the conditions proposed in my letters. I fear much however they are too fully masters of our situation to consent to the reduction, being fully persuaded the wants of government would prevent their disapproving a loan otherwise agreeable, on account of ½ p. cent commission. They will certainly have taken their precautions with the undertakers in the case of my accepting the loan only for three millions, or if they have recieved or should recieve the money they would pay it to the French government probably counting on your approbation, which they would see you in the impossibility of refusing under those circumstances.
Thus it would be imprudent for me to reject altogether the latter three millions of this loan; besides that would prevent me from announcing to you at present the sums at your disposal, since if the loan were three millions only, 1½. would be the part you destine for your service at home & if the whole six millions are accepted it will be 2½. And farther as matters stand at present, the question whether it is for the interest of the U.S. to accept the whole of this loan on the terms proposed, if they cannot be reduced, leaving no doubt I have thought it best to announce to you that you may consider 2½. millions of florins at your disposal as soon as you shall recieve this information, & without informing the bankers of this endeavour, by all the means in my power to bring them to the conditions of my letters, finally assenting to those they insist on, if they persevere. In the mean time the cash as recieved by them will be immediately paid to this government that there may be no double interest. I will inform you regularly of the progress of this business.
The bonds for this loan will be the same as those for the last, the conditions of re-imbursement &c. being the same. I shall go to Amsterdam to sign them. The bankers recommend it to me to go there towards the end of this year for that purpose as they observe that by then signing the bonds for a new Loan, the tax may be avoided. I shall defer my journey until I know fully what may be hoped for in London or Genoa as our proceedings in Amsterdam will of course be directed by the prospects elsewhere. The undertakers have until the end of January to complete their engagements, being obliged however to pay an equal proportion of the sums they have contracted for, in each month. The bankers are persuaded that they will for their own advantage anticipate the epochs agreed on.
I omitted mentioning to you in my letter of the 23d. inst. that the f 350,000 balance in the hands of the bankers had been paid to this government under your order for extending the payments out of the last loan, to 1½. million of florins—this payment in addition to the f 1,000,000 already paid out of the same loan making f 1,350,000. I formerly mentioned to you the amount in livres of that million of florins. The f 350,000 produced agreeably to the exchange agreed on with the commissaries of the treasury 941,175₶. 9s.
I have the honor to be with sentiments of the most perfect ⟨respect⟩
The Honble.Alexander Hamilton Secretary of the Treasury, Philadelphia


Title: Enclosure: Wilhem and Jan Willink, Nicholaas and Jacob Van Staphorst, and Nicholas Hubbard to William Short, 25 August 1791
From: Willink, Wilhem,Willink, Jan,Van Staphorst, Nicholaas,Van Staphorst, Jacob,Hubbard, Nicholas
To: Short, William

Amsterdam 25 August 1791
Sir
We had the pleasure to address you the 22nd. Inst. and now come to reply particularly to your respected favors of 12 & 14 ditto.
We must confess to you Sir, that your sticking to reduce the Charges We fixed with you for the Five per Cent Loans of the United-States, after We had placed them upon the very lowest footing, is truly surprizing to us, more especially as It is striving to recede from a Bargain already agreed between us, and approved by the Secretary of the Treasury of the United-States, as well as militating against the Mode ever practised here, in agreeing for the Charges in this Line of Business by the Lump; From which We informed you personally and You knew thro’ the Communication of our Letters to the Treasury, It ought not to be expected We should depart.
To demonstrate the Truth of these Assertions, and thereby to convince you, that our Charges of Four per Cent for all Expences on the Five per Cent Loans, are already fixed, and independant of any Change in the Premium We may pay to the Undertakers, We beg leave to refer you to this Part of our Letter of 23 Decbr last to the Secretary of the Treasury,
“Mr. Short informed us It was expected also, He should be able to fix more advantageous Conditions for the Charges of the future Loans, and notwithstanding We assured him the last Loan at Four and an half per Cent for Commission, Premiums, Brokerage and all other Expences was as reasonable as It ought to be, as well as much cheaper than Russia and the other Powers of Europe paid, He stuck to this Point, with a Perseverance We must confess not to have a little surprized us: But considering the Relation We already have with the United-States, and the Injury any Application to others, would certainly have caused to their Credit and Interests, We consented to negotiate the future Five per Cent Loans, at Four per Cent, for Commission, Premiums, Brokerage & all other Charges, thereby offering a most unequivocal Testimony of the Value We set upon our Connexion with the United-States, and our Desire to satisfy and accomodate their Government all in our Power. Mr. Short having assented to the Offer authorised us &c.”
The aforesaid Letter We delivered open to you—Sir, inclosed in One directed to yourself, with this Request, “We take the liberty to inclose you open, our Letter of this Date to the Secretary of the Treasury of the United-States, entreating you to peruse same, and approving the Contents to forward it.” The bare Inspection of this our Letter of 23 Decbr to the Secretary of the Treasury, wherein We tell him, You had consented to allow us Four per Cent, for Charges of Negotiation on the Five per Cent Loans, and your full Approbation in forwarding it without any remark, much less reclamation, establishing most incontrovertibly, that the Charges of Four per Cent were fixed for all the future Loans at Five Per Cent Interest; We shall now proceed a Step further, and wave for a Moment only, our Right to decline entering into any disenssion upon (the premium) an abstract Part of a general & compound Arrangement, moulded by our Agreement with you into a single Result, by evidencing in an equally strong Light, that this Agreement was however as well by you as ourselves, concluded upon the Basis, that the premium upon the American Loans would be more than 1½ per Cent; Which We do by a Reference to our Letter of the 1 March last to the secretary of the Treasury, that was approved of by you here in all its Parts; We therein merely satisfy the Secretary of the Treasury (as He confesses) of the Mode of conducting and closing the Business of Loans here, dissected the Charges upon the last Loan of March as follows
“You’ll thereby see, that after deducting

2
pr. Cent Premium

½
⅌ Ct. Brokerage

½
⅌ Ct. for Seals, Notary’s Signatures, Charges &c. Advertisements, Papers for the Bonds and other incidental Expences, there remains but

1
“ “ for our commission

4
Per Cent that We fixed with Mr. Short to do the Business for:

We at that time calculated to give but 1½ per Cent Premium to the Undertakers, But when It was question of only a Sacrifice of our Interest, to accelerate Mr. Short’s Wish to open the Loan immediately, We did not balance a Moment to make it, by allowing Two per Cent premium, the least We could obtain the Money for.”
In the aforegoing Instance, We to hasten the Accomplishment of your Wishes, by giving up One half per Cent in the Premium, reduced the Compensation for each of our Houses, below the Basis upon which was calculated the Agreement between You and Us, and even to what is paid for Brokerage only; An Allowance too disproportionate in every respect, the Brokers having but very little Trouble and none of our great risques & responsibility, to be just in any degree, and much less to be rendered permanent, thro’ your endeavors to establish our Resignation and Surrender of our Rights in one Instance, to be a Precedent for our being stripped of them in future Transactions, notwithstanding they are guaranteed to us by express Agreement.
Being most fully persuaded, that the aforegoing Eclaircissements, are more than abundantly sufficient, to convey irresistible Conviction to your Mind, of our being incontestably entitled to four per Cent Charged on the future Five per Cent Loans for the United States, and thus removing all Objections to extending the Loan You order us to open; We have presented it for Six Millions of Guilders at Five per Cent per Annum Interest, to be dated the First Day of September next, and reimbursable in Five Instalments of f 1,200,000—.— each, commencing the First Day of September 1802 and ending the First Day of September 1806. Which Loans by means of our preparatory Measures, has been immediately undertaken with all the Eclat You can wish, and has exhibited a new Proof of the Degree which the Credit of the United-States has attained here, to the great Satisfaction of their Friends, and Astonishment of some Persons, To whom the Prosperity and rising Power of the United-States, are by no means pleasing prospects.
Had We entertained any the least Particle of Doubt, of this our Conduct, meeting your hearty Approbation and securing us your Thanks, It would have been removed by the following Reflexion, The most important of which You could not know, and the others perhaps You were not perfectly acquainted with.
Before the Fifth Day of next Month, a Loan will be determined upon, to be raised by the Province of Holland for the Service of our East-India Company, to the large Amount of Eight or Ten Million of Guilders; To precede which was essentially necessary for the Success of the Loan for the United-States, and there every Moment was precious, to conclude the Bargain with the Undertakers.
It is now reduced to a Certainty, that One of the new Taxes to be laid upon this Country, and that will it is presumed take place about the Commencement of the ensuing Year, is a Duty of One per Cent upon the principal of all Loans that will be raised here for Foreign Powers, A very heavy Incumbrance; to spare which as much as possible for the United-States, demanded every exertion, to bring as soon as could eligibly be effected, the greatest Amount of Loans for the United-States upon our Market that might be practicable, especially as exclusive of the Honor and Advantage, of reimbursing at once all the Arrears of Interest and Reimbursment of the Instalments due upon the principal of their Debt to France; The United-States are subject to no useless Interest, as the Payments can be made to the National-Treasury of that Country as fast as We receive the Monies.
Experience has demonstrated by the last Loan of March, that It will be possible to launch a new Loan upon the Market for the United-States, as soon or very nearly so after the present Loan for Six Millions, as if We had confined it to half that Sum; Wherefore as the Credit of the United-States justifies our entertaining the hope, to have it in our Power to raise another Loan for them, towards the end of the present or Commencement of the New Year, We may flatter ourselves, that by arranging your Journey, so as to remain here about that Period, You may at same time as You sign the Bonds for the Loan of next Month, pass those for another Loan, so as to save the new Duty upon that also; An Economy much more essential and important than a triffling Difference upon our Charges.
Besides Sir, We have taken into consideration, What probably has not yet attracted your Attention, that the Time is now fast drawing near, when the United-States will have to reimburse the Instalments of the first Loan they borrowed here, and that those will gradually become consequential.
Thus, the United-States having to provide here for
The Reimbursment of the Arrears of Interest & Instalments due on the principal of the French Debt.
The Payment by anticipation of the Instalments of ditto not yet due, to avail the United-States of the actual unprecedented favorable Exchange.
The large Sums annually to be paid here, for Interest upon the Loans raised in Holland, and which the Secretary of the Treasury, has given us a standing Order to discharge from the Monies in our hands.
The Reimbursments of the Instalments upon the Dutch Loans as they fall due.

And It being highly probable, the Secretary will wish to provide for all these Objects by Loans here, until the full Organisation & complete Operation of the Bank of the United-States, and until the produce of the Taxes already laid or that yet are to be laid, to face the Civil List, Interest upon the Domestic-Debt, Interest upon the State-Debts assumed & other Objects of Expenditure of the United-States, shall yield a Surplus, to be remitted here to the Discharge of their Foreign Engagements; We cannot but judge, You will be deeply impressed as We are, with the propriety nay the absolute Necessity, of letting slip no Opportunity, to raise Monies for the United-States, to secure the punctual Fulfilment of all these Objects, since the Reimbursments to France, can be made to such immense Advantage to the United-States, without subjecting them to any useless Interest; And consequently fully approve our Zeal & Exertions to promote their Interests, and to facilitate the Plans of the Secretary of the Treasury; Who has in the most flattering Terms, sanctioned the whole of our Conduct in the Management of the Affairs of the United-States, and done Justice to our Moderation, in fixing the Conditions with you, for negotiating the future Five per Cent Loans.
The Bonds of the Six Millions Loan will be dated the First of next Month; But It would not have been possible to deviate from the constant practice here, of leaving to the Underwriters the faculty to receive them immediately after their signing a Contract or whenever they please, with the Enjoyment of the running Month’s Interest as customary, that is, They benefit of the Interest upon the Months they take their Bonds in, and thus pay no more for them the last Day of the Month than they would have done the first Day; The reason, Why by far the major Part nay almost the whole Receipts of Monies, are on the very last Days of Months; Thus, by allowing Interest only from the First Day of September, We should have postponed the Opening of the Loan and Receipts of Money as for whole Month, without any good purpose whatever; But on the contrary, We should thereby have subjected the United-States, to a longer risque for profiting of the favorable French Exchange, and protracted for a Month, the Opening of a fresh Loan for the United-States, Which might have precluded the possibility to effect it, timely to save the Duty upon Foreign Loans. The Undertakers are allowed until the last Day of next January to receive their Bonds in, an equal Portion however in each Month. But You may depend Most of the Capital ones, will avail themselves of their priviledge to furnish their Monies as soon as they choose, to call for large Parcels of them early, and thus that our Receipts of Money will be important in the first Months: We even do not doubt, We shall have a good Sum the Commencement of next Month at your Disposal, About which We shall therefore expect your immediate Orders. At present the Exchange at Paris is more favorable for the United-States than at this place: Perhaps You may be able to fix with the Commissioners of the Treasury, the Course as at Paris, at which the United-States shall have credit, for our Payments to Messrs. Hogguer Grand & Cy. Or, if You prefer leaving the Settlement of this Point to us, or that We should make Remittances for the Monies, You may depend upon our utmost Attention, to fulfill your directions, to the greatest advantage of the United-States.
By a Vessel on the point of sailing for New-York and likewise by way of England, We communicate to the Secretary of the Treasury as You desire, the Success and particulars of this Loan, at our Charges fixed with you and approved of by him, for the future Five per Cent Loans.
Your draft on us advised in your Letter of 18 August for f 220—.— order Grand & Co: for your Salary, will meet usual punctual Honor.
We are respectfully   Sir   Your most obedient and very humble Servants

Wilhem & Jan Willink
N & J. Van Staphorst & Hubbard
Willm. Short Esqr.


Title: From Alexander Hamilton to George Washington, [31 August 1791]
From: Hamilton, Alexander
To: Washington, George

[Philadelphia, August 31, 1791]
The Secretary of the Treasury has the honor to transmit herewith to the President of the United States the result of the enquiry on the subject of Mr. Drayton.
August 31.


Title: To Alexander Hamilton from Henry Guest, August 1791
From: Guest, Henry
To: Hamilton, Alexander

[New] Brunswick [New] Jersey, August, 1791. Urges Hamilton to establish at New Brunswick “the public Manufactory” of the Society for Establishing Useful Manufactures.


Title: Prospectus of the Society for Establishing Useful Manufactures, [August 1791]
From: Society for Establishing Useful Manufactures
To:

[Philadelphia, August, 1791]
The establishment of Manufactures in the United States when maturely considered will be fo⟨und⟩ to be of the highest importance to their prosperity. It ⟨is⟩ an almost self evident proposition that that com⟨muni⟩ty which can most completely supply its own w⟨ants⟩ is in a state of the highest political perfection. ⟨And⟩ both theory and experience conspire to prove that a nation (unless from a very peculiar coincidence of circumstances) cannot possess much active wealth but as the result of extensive manufactures.
While also it is manifest that the interest of the community is deeply concerned in the progress of this species of Industry, there is ⟨as⟩ little room to doubt that the interest of individuals may equally be promoted by the pursuit of it. What ⟨is⟩ there to hinder the profitable prosecution of manufact⟨ures⟩ in this Country, when it is notorious, that, independent of impositions for the benefit of the revenue and for the encouragement of domestic enterprise—the natural commercial charges of the greater part of th⟨ose⟩ which are brought from Europe amount to from fiftee⟨n to⟩ thirty per Cent—and when it is equally notorious that provisions and various kinds of raw materials are ev⟨en⟩ cheaper here than in the Country from which our principal supplies come?
The dearness of labour and the want of Capital are the two great objections to the success of manufactures in the United States.
The first objection ceases to be formidable when it is recollected how prodigiously the proportion of manual labour in a variety of manufactures has been decreased by the late improvements in the construction and application of Machines—and when it is also considered to what an extent women and even children in the populous parts of the Country may be rendered auxiliary to undertakings of this nature. It is also to be taken into calculation that emigrants may be engaged on reasonable terms in countries where labour is cheap, and brought over to the United States.
The last objection disappears in the eye of those who are aware how much may be done by a proper application of the public Debt. Here is the resource which has been hitherto wanted. And while a direction of it to this object may be made a mean of public prosperity and an instrument of profit to adventurers in the enterprise, it, at the same time, affords a prospect of an enhancement of the value of the debt; by giving it a new and additional employment and utility.
It is evident that various fabrics, under every supposed disadvantage, are in a very promising train. And that the success has not been still more considerable may be traced to very obvious causes.
Scarcely any has been undertaken upon a scale sufficiently extensive or with a due degree of system. To insure success it is desireable to be able to enter into competition with foreign fabrics in three particulars—quality, price, term of credit. To the first, workmen of equal skill is an essential ingredient. The means employed have not generally been adequate to the purpose of procuring them from abroad and those who have been procureable at home have for the most part been of an inferior class. To cheapness of price, a capital equal to the purpose of making all necessary advances, and procuring materials on the best te⟨rms⟩ is an indispensible requisite—and to the giving of ⟨Credit⟩ a Capital capable of affording a surplus beyond wh⟨at⟩ is required for carrying on the business is not less indispensible. But most undertakings hitherto have been bottomed on very slender resources.
To remedy this defect an association of the Capitals of a number of Individuals is an obvious expedient—and the species of Capital which cons⟨ists of⟩ the public Stock is susceptible of dispositions which will render it adequate to the end. There is good reason to expect that as far as shall be found necessary money on reasonable terms may be procured abroad upon an hypothecation of the Stock. It is presumeable that public Banks would not refuse their aid in the same way to a solid institution of so great public utility. The pecuniary aid even of Government though not to be counted upon, ought not wholly to be despaired of. And when the Stock shall have attained its due value so that no loss will attend the sale all such aids may be dispensed with. The Stock may then be turned into specie without disadvantage whenever specie is called for.
But it is easy to see that upon a good Capital in Stock an effective Credit may be raised in various ways which will answer every purpose in specie, independent of the direct expedient of borrowing.
To effect the desired association an incorporation of the adventurers must be contemplated as a mean necessary to their security. This can doubtless be obtained. There is scarcely a state which could be insensible to the advantage of being the scene of such an undertaking. But there are reasons which strongly recommend the state of New Jersey for the purpose. It is thickly populated—provisions are there abundant and cheap. The state having scarcely any external commerce and no waste lands to be peopled can feel the impulse of no supposed interest hostile to the advancement of manufactures. Its situation seems to insure a constant friendly disposition.

The great and preliminary desideratum then is to form a sufficient capital. This it is conceived, ought not to be less than Five hundred thousand Dollars. Towards forming this capital subscriptions ought immediately to be set on foot; upon this condition that no subscriber shall be bound to pay until an Act of Incorporation shall have been obtained—for which application may be made as soon as the sums subscribed shall amount to One hundred thousand Dollars.
As soon as it is evident that a proper Capital can be formed means ought to be taken to procure from Europe skilful workmen and such machines and implements as cannot be had here in sufficient perfection. To this the existing crisis of the affairs of certain parts of Europe appears to be particularly favourable. It will not be necessary that all the requisite workmen should be brought from thence. One in the nature of a foreman for each branch may in some branches suffice. In others it may be requisite to go further and have one for each subdivision. But numbers of workmen of secondary merit may be found in the United States; and others may be quickly formed.
It is conceived that there would be a moral certainty of success in manufactories of the following articles—

1st
Paper and Pasteboard

2nd
Paper hangings

3rd
Sail cloth and other coarse linen cloths, such as sheetings, shirtings, diaper, oznaburgs &ca.

4th
The printing of Cottons and linens; and as incident to this but on a smaller scale the manufacturing of the article to be printed.

5th
Womens shoes of all kinds.

6th
Thread, Cotton and Worsted Stockings.

7th
Pottery and Earthen Ware.

8th
Chip Hats

9th
Ribbands & Tapes

10th
Carpets

11th
Blankets

12th
Brass and Iron wire.

13th
Thread and Fringes.

It will be unnecessary to enter into the det⟨ails⟩ of the execution further than to observe that the employment of the labor-saving mills and machines is particularly contemplated.

In addition to the foregoing a brewery for the supply of the manufacturers, as a primary object, may be thought of.
When application shall be made for an act of Incorporation it ought to include a request that provision may be made for incorporating the Inhabitants of the district within a certain defined limit which shall be chosen by the Company as the principal seat of their factories and a further request that the Company may have permission to institute a lottery or lotteries in each year for the term of five years for a sum or sums not exceeding in one year One hundred thousand dollars. The State of Jersey if duly sensible of its interest in the measure will not refuse encouragements of this nature.
An incorporation of this sort will be of great importance to the police of the establishment. It may also be found eligible to vest a part of the funds of the Company in the purchase of ground on which to erect necessary buildings &c. A part of this ground divided into town lots may be afterwards a source of profit to the Company.
The lottery will answer two purposes. It will give a temporary command of Money and the profit arising from it will go towards indemnifying for first unproductive efforts.
The following scheme for the organisation of the Company will probably be an eligible one—
1.  The Capital of the Company as before remarked to consist of Five hundred thousand dollars, to be divided into Five thousand Shares, each share being One hundred Dollars, [The Company nevertheless to be at liberty to extend their capital to one Million of Dollars.]
2.  Any person Copartnership or body politic may subscribe for as many shares as he she or they may think fit. The sums subscribed to be payable—One half in the funded six per Cent Stock, or in three per Cent Stock at two dollars for one, and the other half in deferred Stock. The payments to be in four equal parts. The first at the time of subscription, the second in six months after, the third in six months after the second, and the fourth in six months after the third. Those who prefer paying in Specie to be permitted to do so, computing the funded six per Centum at par, and the deferred according to its present value at the time of payment discounting the interest thereupon during the suspension of payment at the rate of Six per Centum per annum.
3rd.  The affairs of the Company to be under the management of thirteen Directors to be chosen annually on the first Monday of October in each year by plurality of suffrages of the Stockholders. The Directors by plurality of voices to choose from among themselves a Governor and Deputy Governor.
4th.  The number of votes to which each Stockholder shall be intitled, shall be in proportion to the number of shares he shall hold that is to say one vote for each share. But neither the United States nor any State which may beco⟨me⟩ a Subscriber shall be entitled to more than One hundred votes. The United States or any State nevertheless, which may subscribe for not less than One hundred Shares may appoint a Commissioner who shall have a right at all times to inspect the proceedings of the Company and the state of its affairs but without any authority to controul. Every Subscriber may vote by Attorney duly constituted.
5th.  There shall be a statea meeting of the Directors on every first monday of January, April, July and October at the place which is the principal seat of the Manufactory. But the Governor for the time being or any three Directors may by writing under his or their hands, directed to the other Directors and left at their respective places of abode at least fourteen days prior to the day for Meeting, or by advertisement in one public Gazette printed in the State where the Corporation shall be established and in another public Gazette printed in the City of Philadelphia, and in another public Gazette printed in the City of New York for the space of thirty days prior to the time of Meeting convene a special meeting of Directors, for the purpose of transacting business of the company.
6th  No Director shall receive any emolument unless the same shall have been allowed by the Stockholders at a General meeting. But the Directors may appoint such Officers and with such compensations as they shall think fit.
7th  Not less than seven Directors, if the Governor or Deputy Governor be not one shall constitute a Board for the transaction of business. But if the Governor or Deputy Governor be one four shall suffice. In case it should at any time happen that there are two separate meetings of five or more Directors each, but both less than a majority of the whole, one having the Governor, and the other the Deputy Governor, that at which the Governor shall be present shall be the legal one.
8th.  The Directors to have power to make all Bye-laws, rules and regulations requisite for conducting the affairs of the Company.
9th  At every annual Meeting of the Stockholders for the purpose of choosing Directors the Directors shall lay before them a general state of the affairs of the Company exhibiting the amount of its Stock, Debts and Credits, the different kinds of Manufactures carried on, the number of persons employed in each and their respective compensations together with an account of profit and loss.
10th.  [The persons not exceeding five in number who at any general meeting shall have next after the Directors chosen the highest number of votes for Directors shall by force thereof be a committee of Inspection and shall have a right of access to all the books of the Company and of examination into all its affairs, and shall at each succeeding meeting report all such authentic facts as shall come to their knowlege to the Stockholders for their information.] The Stockholders may [also] if they think fit at any general meeting appoint by plurality of suffrages any five of their number for the purpose of making such inquiries and investigations as they may think necessary.
11th.  The Stockholders at a General meeting may annul or alter any of the Regulations established by the Directors and make such others as they may think necessary.
12th.  Any Board of Directors or either of the Committees above-mentioned may at any time call a general meeting of Stockholders; giving thirty days previous notice thereof in three Gazettes, one published in the state in which the Factory shall be established another in the City of Philadelphia and another in the City of New York.
13th.  Every Cashier or Treasurer of the Corporation shall before he enters upon the duties of his Office give Bond with one or more sureties to the satisfaction of the Directors for the faithful execution of his duty in a sum not less than Twenty thousand Dollars.
14th.  So much of the Capital Stock of the Company as may consist of public Debts shall be placed on the Books of the Treasury of the United States in the name of the Corporation; and every Stockholder shall be entitled to a license under the Seal of the Corporation to inspect the account of the said Stock at his pleasure as far as may comport with the rules of the Treasury. This however shall not prevent the investment of the said Debt in Stock of the Bank of the United States, reserving to each Stockholder the like right of Inspection in relation to the Stock of the Company so invested.
15th  There shall be a yearly dividend of [so much of] the profits of the Company [as the Directors shall think proper] for the first five years, and after that period a half yearly dividend.
16th  The Stock of the Corporation shall be assignable and transferable according to such rules as shall be instituted in that behalf by its laws & Ordinances.
17th.  The Corporation shall be at liberty to make and vend all such Articles as shall not be prohibited by law: Provided that it shall only trade in such articles as itself shall manufacture in whole or part or in such as shall be received in payment or exchange therefor. Provided nevertheless that this shall not prevent the investment of any sums paid in specie in Stock of the United States or in Bank Stock.
18.  It shall be understood that a Majority of the Stockholders may at any time dissolve the Corporation; but this shall only be done at a general meeting which shall have been specially summoned for the purpose with public notice of the intent. And upon such dissolution the Directors for the time being shall be ipso facto trustees for settling all the affairs of the Corporation disposing of its effects paying its debts and dividing the surplus among the Stockholders in proportion to their respective interests in the Stock; [unless the Stockholders at a General Meeting previous to such dissolution shall have nominated other persons as trustees; in which case those persons shall be trustees for the purposes aforesaid.]
19.  The Stock and other property of the Corporation to be exempt from Taxes.

The management of the Affairs of this Company will require that an Agent should be appointe⟨d⟩ to Superintend all the different works and the disposition of the Articles manufactured in conformity to the general regulations of the Directors. This Agent ought to have such a compensation as will command the services of a man every way competent and trustworthy. Such a man may doubtless be found. It is not necessary that he should be a technical man in any of the branches of manufacture; but a man of information, thoroughly a man of business, of probity, and diligence and energy.
We the Subscribers for ourselves respectively and not one for the other and for our respective heirs, executors and administrators do severally covenant promise and agree to and with each other and with the heirs Executors and Administrators of each other that we will respectively contribute and pay in the manner and at the times specified in the plan hereunto annexed the respective sums against our respective names hereunder set for the purpose of establishing a company for carrying on the business of manufactures in one of the States of New York New Jersey and Pennsylvania (giving a preference to New Jersey if an incorporation can be obtained from the said State on advantageous terms) according to the general principles of the plan aforesaid, but subject to such alterations as shall be agreed upon at any time previous to the obtaining an Act of Incorporation either in the principles or details thereof by the major part of us whose names are hereunto subscribed, or in the details thereof only, as shall be thought fit by the major part of the persons hereinafter named. And we do hereby jointly and severally constitute and appoint  one and each of our Attornies who or the major part of them or the major part of the survivors of them are hereby empowered as soon as the sum of One hundred thousand Dollars shall be subscribed hereto to make application on our behalf to either of the States aforesaid (giving such preference as aforesaid to the State of New Jersey) for an Act or Acts of Incorporation according to the principles of the plan aforesaid with such alterations in the details thereof as shall appear to them eligible, or with such alterations whatsoever, as shall be previously agreed upon by us; And further to take such measures at our joint expense as shall appear to them necessary and proper for engaging workmen in the several branches of manufacture mentioned in the said plan.
In testimony whereof We have hereunto subscribed and set our hands and seals, the  day of  in the year of our Lord One thousand seven hundred and ninety One.


Title: To Alexander Hamilton from Nathaniel Appleton, 1 September 1791
From: Appleton, Nathaniel
To: Hamilton, Alexander

[Boston, September 1, 1791. On September 27, 1791, Hamilton wrote to Appleton: “You observe in your letter of the first instant.” Letter not found.]


Title: From Alexander Hamilton to Theodore Foster, 1 September 1791
From: Hamilton, Alexander
To: Foster, Theodore

Philadelphia, 1 Sept., 1791.
Dear Sir:
I have had the pleasure of receiving your two letters of the 23rd July & 4th of August. You concluded rightly that it could require no apology for entering into the detail with which you have favored me. On a subject so interesting to your State, your desire to communicate information was indulged with peculiar propriety, & on any subject I shall always esteem myself obliged by your sentiments. Thoroughly impressed with the hardship of a decision against the certificates which had been surrendered to the State by their Proprietors, I did not come to it without a serious struggle between my Judgment & my Wishes; but after mature deliberation I saw no way of allowing those Certificates to be received on the proposed loan which would not involve inextricable embarrassment. All the States have called in large portions of their respective Debts.
There is good reason to believe, that on a close investigation Rhode Island might not be found to be the only State in which they had been so called in for a very inadequate consideration. And tho’ it might be urged to distinguish the case, that Rhode Island alone compelled the surrender, on pain of forfeiture, it might be answered that in sound equity, there is no very material distinction between obliging Persons to surrender their property for less than its value, under the penalty of confiscation and laying them under a necessity of doing the same thing, from the total and deliberate neglect of a better provision. Be this as it may, I saw no safe rule, that would be admitted to be such by even the candid part of those, whose interest it might be to dispute it, by which I could pronounce that Certificates surrendered and cancelled by the Mutual Acts of the Creditor and Debtor should be permitted to receive and acquire validity in respect to one State and not in respect to another. And without such rule, all the extinguished portions of the Debts of all the States might, if they should think proper to make it so, acquire a capacity of being subscribed towards the assumption. Where this would lead it is not necessary to say. The two Carolinas have actually passed laws for subscribing the portions of their respective Debts which have been extinguished by them—the only answer I can give is that a Bond surrendered as discharged constitutes no Debt and that in every such case, there is no Debt to be assumed.
I cannot allow an after act of a State to create a Debt within the meaning of the funding Act, which it cannot be admitted to have contemplated as then in existence. It may be asked, How then shall the Certificates which remained in the hands of Individuals, but which were forfeited by the law of the State, be admitted upon the Loan, any more than those which were surrendered? This is a question not wholly free from difficulty; but if I had found no distinction satisfactory to my own mind, I should have been obliged to reject the whole. Such a distinction, however, was in my opinion to be found. Upon principle, it is a general rule, that the dissolution of a contract by one party without the concurrence of the other, is void.
The Creditors who did not concur may claim the benefit of that rule and it is to be supposed that it was the intention of Congress, they should have it. It may be said to be a legal presumption that Congress, at the time of passing the funding Act, was acquainted with the laws of Rhode Island respecting the Certificates. And in point of fact the generality of them were so at least in substance. They must, therefore, have been apprised, that if the forfeiture annexed in those laws to the not bringing in the certificates for payment was to prevail, there was no debt of the State of Rhode Island to be assumed. By assuming a Sum of 200,000 Dollars, a sum by the way nearly corresponding with the amount of the outstanding Certificates, the clear inference is that they meant to consider those Certificates as in force, and the forfeiture as far as regarded the assumption, as inoperative. But it is not a reasonable presumption, that they could have intended to comprise the surrendered Certificates, which could not even be repossessed by the individual proprietors without a subsequent act of the State.
I have made some suggestions in this letter, which I should perhaps have omitted if I had considered it as strictly official, and therefore request that it may be received as a private and in some sort a confidential communication.
I cannot lose the opportunity of expressing to you that I feel myself truly and very much indebted to the Senators of Rhode Island for the very flattering manner in which they have made mention of the Secretary of the Treasury in their late communication to the State.
The measure of their approbation certainly exceeds that of his services or pretentions.
With respectful consideration and real regard, I have the honor to be   Dear Sir   Your obedient Servant.


Title: To Alexander Hamilton from Le Roy and Bayard, 1 September 1791
From: Le Roy and Bayard
To: Hamilton, Alexander

Newyork 1 Septber 1791
Dr Sir!
Your Esteemed Favor of the 26 Ulto. only reached us this day, and that after the Sailing of the Packet. We were done drawing, or Should have been happy in Supplying you with a bill for £1000. Stg. We desired Mr. Mc.Evers to Spare you whatever he had left of those, we sent him for Sale. The Exchange we sold at was from 4½ to 4 p ct Cash. Probably we may again Shortly be drawing, when we will cheerfully furnish you with the Sum required if Still wanted. Constable is drawing now at 4½ p ct. We have this day received a Letter from a Committee chosen by the Subscribers [to the] National Bank, requesting that a meeting of the Stockholders may be called here, in order to devise some plan of coopperation as to voting for Directors. An opinion here we think Seems prevalent, as to the choice of Electors, wch. if we recollect, was what you wished to take place. We presume that a meeting Shortly will be called here. We Subscribe ourselves respectfully & with much Esteem   Dr Sir.   Your humble Servants
LeRoy & Bayard Alexander Hamilton Esqr


Title: To Alexander Hamilton from Oliver Wolcott, Junior, [1 September 1791]
From: Wolcott, Oliver, Jr.
To: Hamilton, Alexander

[Philadelphia, September 1, 1791]
Mr. Wolcott respectfully informs the Secretary of the Treasury, that Stephen Drayton Esq: of south Carolina, is charged on the Books of the Quarter Master Department, with between, three & four Millions of Dollars in old emissions recd. by him, principally during the years 1779. & 1780. Also that certificates of Specie value, to a large amount, were issued by said Drayton & his assistants, which have been settled by the State of So. Carolina, & for which the said Drayton will be held accountable.
On enquiry I have full reason to believe that no accounts or documents have been transmitted to the late commissioner for the Quarter Master Department, or to the Treasury, respecting the expenditure of moneys, or the applications of supplies for which certificates were issued; & therefore no opinion can be given of the manner in which Mr. Drayton will account.
Thursday Sept. 1. 1791.