Title: From Alexander Hamilton to Sharp Delany, 2 December 1790
From: Hamilton, Alexander
To: Delany, Sharp

Treasury DepartmentDec. 2. 1790
Sir,
I have received this morning your letter in answer to mine of the 19th. ultimo from which I find that Messrs. Willing Morris & Swanwick’s bond given for duties on goods imported from Rhode Island on the 1st. of June, falls due this day.
The Legislature having declared that the Section of the act to regulate the Collection of duties, which subjected foreign goods from N. Carolina & Rhode Island to impost “did by virtue of the adoption of the constitution cease to operate” in respect to N. Carolina, the operation of that act must also have ceased in respect to Rhode Island on the 29th. of May, when the constitution was adopted by the Convention of that State. It is therefore my opinion that any bond given for duties on goods entered into your district after the 29th. of May is considered null. It is however necessary that satisfactory proof be adduced to you that such goods were imported into the State of Rhode Island prior to that day.
I am, Sir, Your obedt. servant
Alexander Hamilton
Sharp Delany Esq.Collector.


Title: From Alexander Hamilton to George Washington, [2 December 1790]
From: Hamilton, Alexander
To: Washington, George

[Philadelphia, December 2, 1790]
Sir
The day before yesterday I received a letter from Mr. Woodbury Langdon declining the appointment offered him. There was a letter with it for you which I immediately forwarded.
Since that time I have conversed with Mr. Langdon & have heared from Mr. Gilman; the former is warm in his recommendation of Mr. Keith Spence; he states that his insolvency was owing to the loss of a valuable ship & Cargo, and was attended with the most honorable circumstances; that an immediate adjustment with the Creditors took place to their entire satisfaction; that the deficiency was only of 1000 pounds, which he considers as remitted; that Mr. Spence was in partnership with Mr. Sherburne; that they have both been since in good business, and are now more than able to pay whatever they may owe; that the failure happened some years ago; that Mr. Spence tho’ a native of Scotland, came early to this Country; is a man of Education, and abilities, well known & respected, a firm friend to the revolution & to the National Government; married to a Lady of New Hampshire with whom he has several children: he shewed me a letter from Mr. Spence, which gives a favorable impression of his modesty & capacity.
Mr. Gilman talks of Mr. Spence as a man not generally known, & who being by birth a foreigner, is not as acceptable as a native to the people of that Country, that his attachment to the American cause was rather ambiguous; that he married the daughter of a person who is now in Office in the Island of Bermuda and lately made a visit there; that his insolvency would throw a shade on his appointment in the Public opinion. He on the other hand warmly recommends a Mr. William Gardiner the present Treasurer of New Hampshire; speaks decidedly of his good character & abilities as a man of business, and of his general good standing in the State.
Mr. Langdon admits Mr. Gardiner to be a good and a qualified man—says he was formerly his first clerk, but affirms that Mr. Spence has greatly the superiority in point of qualification—hints at an arrangement between Mr. Gardiner & Mr. Gilman the late Loan Officer, by which Mr. Gilman expects to succeed to the Office of Treasurer, if the other obtains that of Commissioner of Loans.
Thus stands my information as far as it goes; I conjecture on the whole that Mr. Spence is an unexceptionable man in every respect but that of his late insolvency & that he is probably better qualified than Mr. Gardiner, or in other words a man of more ability.
That nevertheless Mr. Gardiner is qualified for the office & in other respects an eligible person. Perhaps the appointment of him will be upon the whole a safer one; freer from hazard of imputation of any kind.
You are I presumed not apprised of a Langdon & Gilman party in New Hampshire. Tho’ it is desireable this business should be finished; yet if it be supposed likely that the arrival of the Eastern members will afford any new light, a few days delay cannot be very important.
I have the honor to remain   Sir   Yr. Affectionate and Obedt. Servant
A Hamilton
PhiladelphiaDecr. 2d. 1790


Title: Enclosure: [Notes Respecting the Holland Loan], [2–6 December 1790]
From: Hamilton, Alexander
To:

“In pursuance of the authority granted for negociating a loan not exceeding  application was made in Holland, and I have the pleasure to inform you, that a sum equal to  dollars has been subscribed. This loan, which shews by its success the confidence placed in the U. States, cannot fail by its intended application to give additional support to the public credit. The terms of it, with the disposition as far as made, the Secretary of the Treasury is directed to communicate.”


Title: To Alexander Hamilton from Jedediah Huntington, 3 December 1790
From: Huntington, Jedediah
To: Hamilton, Alexander

New London [Connecticut] December 3, 1790. “… The Light, which has been usually kept in the Light House, cannot be maintained for a less Sum than 380 dollars Per Annum, allowing the Contractor any Thing for his Trouble and Risque it consumes in a year about 800 Gallons of the best strained Sperma Ceti Oil, which, delivered at the House, will cost at the common Price, 350 dollars. I have made experiments of several Oils of a cheaper Kind, but the Light they afford is too faint & the Trouble of finding it too great for the Purpose, they require the Wicks to be snufled almost incessantly.…”


Title: From Alexander Hamilton to William Seton, [3 December 1790]
From: Hamilton, Alexander
To: Seton, William

[Philadelphia, December 3, 1790]
Dear Sir
I thank you for the attention you are so obligingly paying to the matters I have troubled you with.
The interest, which yourself and my other friends in New York are so good as to take in my health is no small compensation for the temporary diminution of it. We are always glad to find that we are not forgotten by those to whom we are much attached. My Complaint has been nothing more than my usual fall-cold, a little more obstinate than common. It continues, but I think with some abatement.
I am not certain whether I did not request you by letter some days since, to cause different parcels of Dollars and Crowns say of 100 in each to be weighed for me. I mean those now most generally to be met with in circulation; which I take it for granted are of the newest kinds. My object is to ascertain with precision the average weight of each, as a farther assistance to which the separate weighing of some of the freshest and least worn may be useful. If I have not made it before I now make this request; and pray you to send me the result as soon as may be.
A hint has been given me through the Treasurer that the Bank of N America stands ready to take such drafts as I shall deposit with them on the different Collectors, to their own account giving the U States immediate Credit for them as Cash. Their project is to sell them on Credit and obtain to themselves the discount; while they know that there is little danger of the money being called for sooner than it will be received of those to whom they sell the drafts. My answer was that I would consider of it. But you will perceive at once that I cannot well decline it.
The consequence will be that I must in propriety give them all the drafts, unless your Bank will come forward with a like offer. I deferred answering in order to give an opportunity for this. It is clear to me that there ought to be no hesitation in your directors. They can turn it to as good account as the Bank of N America; and the loss of the accommodation of the drafts to your trade would be immense.
You will be sensible of the delicacy of this communication & while you are at liberty to make the use of it which the occasion requires I trust that it will be considered in such a light by all concerned as that I may be in no danger of hearing of it through any other channel.
I remain with sincere regard & esteem   Dr Sir   Yr. Obed serv
A Hamilton
When you write to me any thing confidential—Write over the Superscription or Direction the word “private” and put the letter sealed & so directed under another cover directed simply to me.
May I also request you to obtain from Mr. De Silva, an answer to the following Questions
What is the present real standard of the gold and silver coins of Portugal?
What is the proporti[on]al value of the two metals compared with each other as they are rated in the Coins?
The information I have on these points is rather of long standing & I wish to aid that and the assays by the accounts of persons who have had an opportunity of knowing the fact.

  Philadelphia Decr. 3d. 1790
  Wm Seton Esqr


Title: From Alexander Hamilton to John Adams, [4 December 1790]
From: Hamilton, Alexander
To: Adams, John

[Philadelphia, December 4, 1790]
The Secretary of the Treasury has the honor to enclose to the Vice President of the United States the letter of the Lieutenant Governor of Massachusetts, with that of Captain Lyde. These papers were duly transmitted to the President of the United States, but could not be attended with any favorable consequences to Captain Lyde, as a commander for the Cutter on the Massachusetts Station had been appointed before they reached him.
Treasury DepartmentDec. 4. 1790


Title: From Alexander Hamilton to Nathaniel Appleton, 4 December 1790
From: Hamilton, Alexander
To: Appleton, Nathaniel

Treasury DepartmentDec. 4. 1790.
Sir
In your future receipts of old emission money it will be well if possible to cancel it when you are counting it. The operation may perhaps be performed then without loss of time. In that sent on from some of the offices a number of counterfeits have been found. I wish to know if you have discovered any considerable proportion, and I must request that the greatest care be used in examining the bills when received. You will inform me whether you issue certificates for that which you receive before it is sent on to the Treasury.
With respect to the old emissions which you shall have taken before the receipt of this you may divide the bills into moderate sums, put them in sealed boxes first making them up into bundles securely wrapt in sealed papers and directed to the Auditor of the Treasury. In this way, if you cannot cancel them, they may be sent forward. You will take care in every instance to dispatch one bill of lading by the post next after the date of it.
The several questions in your letter of the 20.th Nov. will be answered in my next.
The last mail brought the return for October and sundry other papers.
I am, Sir, Your obedt. servant
Alexander Hamilton
Nathanl. Appleton Esq.Commissioner of LoansBoston


Title: To Alexander Hamilton from Benjamin Lincoln, 4 December 1790
From: Lincoln, Benjamin
To: Hamilton, Alexander

Boston December 4 1790
Sir
In your letter of 22 Ulto you refer to several letters which I had written but do not mention the one on the subject of a cutter I am apprehensive therefore that you have not received it. If you have not, I will hereafter repeat the Ideas.
I hardlay think Captain Tucker would serve as a Lieutenant under Captain Williams as he is the senior officer. He wishes to command. The boat I mentioned for the service of this harbour need not be on float untill the first of april next so that no new expence for hands will be experienced untill that period; when ever it shall become necessary duty & inclination will lean to the side of œconomy.
A vessel arrived here a few days since the proprety of Mr Burges, now of London. A question arose whetter she could be considered a vessel of the united States and entitled to the benefits peculiar to them. I determined that she could not be so considered, accordingly received the foreign Tonnage and did allow the freighters the 10 p Cent which they expected. Many think this detirmination wrong. I am therefore induced to state to you the facts in the case as they exist and request your direction on the Subject. Mr Burgess is a partner in the house of champney and Dickerson. He came to the United States before the close of the war, to settle the accounts of the company. After some years residence he was naturallized by this state & has always been considered as a good citizon & much attached to the interest of the Union. About three years since Mrs Burgess came from England with his children but after remaining here a year or two she returned. Soon after her return Mr Dickerson his brother came out with his family, and Mr Burgess went to london with a declared intention however of returning in a few years and resettling in this country for which he always expressed a very great partiality. While here he purchased a Brigantine and received a register as the sole owner of her. She has returned here from London Since Mr Burgess Arrived there. The 5th Section of the coasting act provides that no Ship or vessel owned in whole or in part by any Citizon of the United States usually residing in a foreign country Shall during the time he shall continue so to reside by deemed a vessel of the united States intitled to be registered by virtue of this act unless he be an Agent for and partner in some house or copartnership, consisting of Citizons of the United States actually carring on trade in the said States. It is my opinion, as Mr Burgiss is not an agent for and partner in any house or copartnership consisting of Citizons of the United States, that he falls under the control of this act. It is acknowledged on the other side that if his vessel was not now registered that she could not be, but being registered he must avail himself of It. The register conveys, no rights, is only the evidence of the rights conveyed. It appears to me that the rights conveyed to Mr Burgiss by the laws of the United States ceased, as it respects his vessel, the moment he returned to his family with an intention of remaining with them and cannot operate during such Absence from this country unless connected As by law required. If the constuction which I have given to the law is not a just one it appears to me that Congress must soon interfere in the business or every house in Britian may own as many Ships here as they can build. Nothing more is necessary than for one partner to cross the Atlantic build his ships. By the time he could well compleat the buisness he might become a Citizon, & by law receive his register then return to his connections for life in Europe and his Ships receive all the benefits of ships of the United States. Where would this idea carry us incase of a war between England & France Spain &c and what would be the state of our own Shipping? These observations may be thought calculated rather to Shew the importance of a change in our law than to establish what is now law. I will thank you most sincearly for your opinion on the Subject. You observe in your last letter that if the Nature of the business of this district requires an other set of Scales weights you would have me get them but remark that but one set has been called for in any other district. What Substitute they may have had in other districts I do not know. The business cannot with Satisfaction to the Merchant or œconomy to public be done here with three sets. We have never been with out that I borrowed two of the state besides those we have very frequently used two private scales. If vessels were compelled to load & unload at the same wharf one sets of Scales and weights might possibly do but as the business is now transacted at fifty different wharfs at the distance of two miles at the least and it is not uncommon to have four or five West India vessels at time unloading at different parts of the town & as many loading with fish which requires weighing, in this situation no person can execute the business here and pay a proper regard to the intrest of the whole without three sets at the least. After procuring an other good beam & weighs at the expence of the United States I must be obliged to the State or to some private Gentleman an other or I must adop a method much more expencive of keeping trucks & a team of horses constantly with the scales so as that they may be conveyed hourely from one wharf to an other. If you shall discover a mode in which our business can be conducted with less expence I shall be happy to hear how.
Secetary of the TreasuryMr Hamilton.


Title: To Alexander Hamilton from Benjamin Lincoln, 4 December 1790
From: Lincoln, Benjamin
To: Hamilton, Alexander

Boston Decr 4th. 1790
Dear sir
I received by the wednesday post your private letter with the news paper containing the piece you referred to which has been republished in a number of our papers.
The Virginia Resolve is not very alarming here much less so than might have been expected. Indeed it seems to have produced in some instances a good rather than an evil, by confirming the doubtful in the importance of a firm energetic head to the Union, sufficiently strong to control the whole. I am much Surprised at the policy and conduct of Virginia, she ought to remember that there are other States in the Union, who were as early in the habits of resolving as they, and who have proved themselves as notable resolvers as perhaps any in the world. But what would be the consequence should the individual States, as soon as they found that the laws of the Union did not in their opinion, operate in every respect towards them, with the same mildness, as they did toward some of their Sister States, feel themselves authorised, to call in question the power, and to attempt to counteract the doings of Congress. We shall soon, when ever this comes into general practice, be without a federal government and with its fall we shall probably be deprived, for ages to come, of the power of again assembling, and forming a system for the general government of the United States, by the voice of the people.
If instead of embracing the present constitution with affection and gratitude, and giving it every possible support, we suffer it to be impaired by incroachments from different States, and finally lost because the operation of every law framed under its influence doth not apply with equal advantage to every State we shall for the same reason reject every system which can be formed for our government.

States unequally divided, as these States are, must, from the nature of things, beget an unequal representation; and extending from North to South must by their limits, embrace various climates, yeilding different productions, and thereby enciting different views, among citizens of different States. Hence laws, having a general operation, may not render the most perfect individual justice, yet it may not be very difficult, to form a code of laws, which on the whole, shall effect this interesting purpose, and promote equally the happiness of the pople at large.
I hope and trust, that the different States will not ape the doings of the Assembly of Virginia. They may suppose that being dissatisfied with the Acts of Congress they had a right publicly to express that dissatisfaction, in the manner which they have done. I very much doubt their right, I hope it never will become a general practice, for the Assembly of the several States publicly to decide on the doings of Congress. Should this mode be generally adopted, resolutions for and against their measures, would be constantly crouding before them, keep the minds of the people at large in a constant state of ferment and irritation, and lead things out from their proper course of system and order, into channels filled with obstructions, and would fast progress to an unfriendly termination.
It appears to me, that there never was a period when the United State had a brighter sun shine of prosperity, and nothing but folly, in the extreem, can cloud the prospect. It is pleasing indeed to see the general satisfaction which reigns among every class of citizens in this part of the Union. The earth has yeilded an abundant increase by which, after a full supply to all, there is a large surplus which finds a ready market and commands a satisfactory price. The Merchant is finding an advantagous sale for his imports, and the means of discharging his foreign obligations. While it has been optional with the husbandmen in general to receive their pay in specie or not, for their produce. In short our agricultural interest smiles, our commerce is blessed, our manufactures flourish, and every man, in some way or other, has a tender of a full imploy, and a just compensation for his labour.
These I think are the generally received opinions, and our flattering situation is justly ascribed, by many, to be owing, under the great source of good, to the just & equal operations of the New goverment. I think Congress has nothing to do but to pursue with fortitude the system commenced firmly adhear to it and all, I have no doubt, will terminate according to the best wishes of those who love the government most.
I have the honour of being Dr Sir with great esteem your affectionate friend
B Lincoln
Hon Alexander Hamilton Esqr


Title: To Alexander Hamilton from Sharp Delany, [6 December 1790]
From: Delany, Sharp
To: Hamilton, Alexander

[Philadelphia, December 6, 1790.] “In the Impost Law Hemp pays a Duty of five ⅌ Cent ad Valorem. By a special Clause in sd Law, this Article from the first of Decr Inst: is to pay 60 Cents ⅌ Cwt. Quere Whether Hemp is to pay the 5 ⅌ Cent ad Valorem & the 60 Cents ⅌ Cwt.…”


Title: To Alexander Hamilton from Peter Anspach, 7 December 1790
From: Anspach, Peter
To: Hamilton, Alexander

New York Decr. 7th. 1790
Sir,
Yours of the 2nd. inst. was handed to me this morning. At present am not able to attend much to any kind of business, owing to a long spell of sickness of which I am but just recovering; and am in hopes in eight or ten days hence to be able to attend to business; and as soon as I can; shall have no objections to complying with your wish, to wit, of undertaking to collect immediately the necessary documents and of receiving all such claims against the late Q.M.G’s Department, as were intended to be provided for by Congress in their Act of Augt. last. And of stating such claims in a return from time to time to the Auditor of the Treasury: And to receive and be accountable for the money adequate for discharging such of the claims as may be admitted, and to pay the same as soon as it gets into my possession, to such persons as may be entitled to it.
In order to account regularly for the monies which may at any time be placed into my hands for the above mentioned purpose, I beg leave to submit the following mode; in case one has not already been adopted by you, to wit. That every claimant on delivering to me his, her or their claim or claims, obtain from me a receipt particularly describing such claim or claims; which receipts to be returned by them to me on paying them for their claims or such of them as may have been admitted: They on payment giving me a Rect. on the back of the one to be returned for the sum that shall be paid to them mentioning the same to be in full for such & such claims as are described in the rect. given to them by me; which rects. afterwards being filed with the return or returns made by me to the Auditor will always correspond with the same.
Hitherto some of these Specie claims have been put into my hands, on condition of receiving ten per cent from the owners as a compensation for my trouble & expence of obtaining the money for them: Some of them making a reserve that in case any compensation was made to me by goverment, that then they should not be liable to pay the commission; and others again made no such reserve and for some of them have not only undertaken their business in hand for nothing, but have even been obliged to advance them some cash in order to keep them from starving and freezing. However since your proposals to me so fully correspond with Col. Pickerings ideas of doing justice to public creditors, without making them pay for that which has been so long their just due, I shall therefore in all cases relinquish such commissions as may heretofore have been agreed upon between the parties & myself: And conform intirely to the instructions I may receive from you: And you may rely on it, that I shall make use of every exertion which may tend to shortening the time and thereby save extra charges to government.


Title: To Alexander Hamilton from Tench Francis, 7 December 1790
From: Francis, Tench
To: Hamilton, Alexander

Philadelphia 7 decemr. 90
Sir
There is no question you can Ask that I will not most chearfully Answer, nor any Commands that you may be pleased to Honor me with that shall not to the best of my Abilities be attended to with pleasure. When our Bank first began its Operations, a Set of Chambered weights were provided for ascertaining the Number of dollars by weighing. We then found that 500 drs weighed 433. oz 12 wt 12 grs and at this day we are entirely governd by the same Weights, and should never Attempt to count were it not to discover base money.
I am with the greatest respect   Yr Most Ob st
Tench Francis
A Hamilton Esqr Sy to the Ty. US


Title: To Alexander Hamilton from John M. Pintard, 7 December 1790
From: Pintard, John M.
To: Hamilton, Alexander

Madeira 7th. December 1790
Dear Sir
I take the first opportunity of droping a few lines to you after my arrival at this Island, to mention a Circumstance, which I conceive to be of importance to the Revenue of the United States. The Clearance from the Custom House at this Island mentions in general Terms that the Brig or Ship (here is inserted the name of the Vessel & Commander) has permission to depart with a Cargo of Wines: She may have two Pipes or two Hundred: and also may have a Quantity of fruit & Citron. The Master under these Circumstances certainly has it in his power, to defraud the Revenue of the United States. The British Government found the Inconvenience of these sort of Clearances: and now oblige their Vessels sailing from this Port to have the manifest of the Cargo they take in here, certifyed under the official Seal of the British Consul. I wou’d submit to your Consideration whether a Regulation of that Kind with Vessels belonging to the United States trading here wou’d not be improper. The 32d. Section of the Collection Act, recites that no Persons shall be entiled to recieve the draw Back, allowed on any Goods, Wares, or Merchandize, exported from the United States, until he shall produce a Certificate in writing of two Respectable Merchants, at the foreign Port, or Place at which the same were deliver’d &c. I think it wou’d be more proper that the Consul of the United States at the Foreign Port, shou’d certify the landing of the goods under his official Seal. I shall Occasionally take the Liberty of addressing a few lines to you: and shall mention such matters, as Occurs to me to be of any Importance to the Trade of the United States. I shall always feel happy when your Leisure will permit to receive a few lines from you. I beg leave to tender you an offer of my best Services at this Island, & am


Title: From Alexander Hamilton to William Seton, 7 December 1790
From: Hamilton, Alexander
To: Seton, William

Philadelphia Decr 7. 1790.
Dr Sir,
If I recollect right my requests have hitherto referred your experiments to the newest dollars. I want however to know the different kinds in common circulation & their average weight and respective dates.
Will you be so obliging then as to cause different parcels to be taken promiscuously out of the Mass in bank—say about 100 in each parcel, to cause them to be accurately weighed together, and to transmit me the result together with the dates of the different kinds in each parcel?
The sooner I can have this, the more it will oblige.
My anxiety respecting the assays chiefly relates to dollars and of course I wish them to be extended to the several kinds in common circulation and that the dates may be transmitted with the results of the experiments.
I remain Dear sir with sincere regard   Dr sir Your Obedt Servt.
A Hamilton.
These assays ought not to be stinted to too small portions of metal. Any loss will be thankfully made good.


Title: From Alexander Hamilton to George Washington, 7 December 1790
From: Hamilton, Alexander
To: Washington, George

Treasury Department, December 7, 1790. Submits “a provisional agreement entered into by the Collector of Newport for keeping the Light house on the Island of Conanicut for one year from the 13th. of September last.…”


Title: To Alexander Hamilton from William Seton, 9 December 1790
From: Seton, William
To: Hamilton, Alexander

[New York] 9th December 1790.
Sir,
The Merchants of this City who have lately gone to, & returned from Philadelphia, have asserted at the Coffee House they were well informed that the Bank of Pensilvania had offered to give immediate Credit to the Treasurer of the United states for such drafts on the Collectors of the Imposts &c as he should lodge there for Sale.
The President and Directors of this Bank anxious to do every thing that may tend to facilitate the business of the Treasury, desire me to Inform you, that immediate Credit shall be given in account to the Treasurer of the United states for whatever drafts may be sent to this Bank for sale.
I have the honor to be with the greatest respect &c.


Title: From Alexander Hamilton to John Cochran, 10 December 1790
From: Hamilton, Alexander
To: Cochran, John

Treasury DepartmentDec. 10. 1790
Sir
The instructions given to you originally in regard to the transmission of certificates are rightly construed by you in your letter of the 1st. instant. The certificates of the Register of the Treasury and all others of which you have no checks or registers are to be sent hither for examination: And moreover, in all other cases wherein you actually find reason to entertain doubts of the authenticity of the certificates presented to you for loaning, you are likewise to transmit them for examination. The reasons of these precautions, on the part of the Treasury, are so manifest and they are so important to persons who have or hereafter may place large sums upon the foundation of the national funds, that I conceive a little reflection will convince those of the propriety of the instruction, who may have been of different opinions. I am however to observe that it is stated to me that you transmit for examination indiscriminately all certificates even those of which you have the checks. This must be attended with inconvenience to the lenders and ought not in any case to be done unless you point out in a letter, with the certificates, the circumstances which occasion you to entertain doubts of their authenticity. The post office have requested that your papers transmitted may be made up in smaller and firmer packets, several of them having burst by reason of their oversize and slight covering.
I have authorized the old Emissions, which I presume you carefully examine with an eye to counterfeits, to be put up in moderate sized parcels and transmitted by several successive mails, being first punched. In case your quantity is too great for that plan, you may, after punching, ship it in any good vessel for this port in boxes carefully sealed, taking regular bills of lading and forwarding one of them with an account of the money to me by the post that shall first leave New York after the bills of lading are signed.
It has been stated to me that you have declined to receive subscriptions to the loan in the State Debt, and have informed applicants that you have no instructions. This if my information be right, is a very inconvenient misconception. You will find in one of the latter pages of the first circular instruction (referring to the form No. 6.) the necissary directions in the present stage of the business—also that form No. 6, among the papers sent, for registering the loans in them, on receiving which, with the certificates, you are instructed to give a descriptive receipt. I request that you will make application to such as have offered to loan state certificates informing them you are now ready; and that you will proceed in the business with as much dispatch as may be in your power.
I am, Sir, very respectfully   Your obedient servant
A Hamilton
John Cochran Esq.Commissioner of LoansNew York


Title: From Alexander Hamilton to George Washington, 10 December 1790
From: Hamilton, Alexander
To: Washington, George

Treasury DepartmentDecr. 10th. 1790.
The Secretary of the Treasury has the honor respectfully to inclose to the President of the United States a letter that has been transmitted under cover to him, together with some papers that accompanied it.
A: Hamilton


Title: To Alexander Hamilton from Joseph Whipple, 10 December 1790
From: Whipple, Joseph
To: Hamilton, Alexander

Portsmouth, New Hampshire, December 10, 1790. “On the receipt of your letter of the 1st of June last containing directions respecting the Lighthouse in this State, I made proposals to the person employd by the State in the care of the Fort & Lighthouse, but having reason to expect the Cession of the latter by the Legislature then in Session the Contract was delayed; On the rising of the Court finding this event had not taken place & unwilling to hasten the Contract without the knowledge of the executive authority, I applied to the President of the State, whose answer sometime after received informd me that he had laid my letter before the Council who chose to refer the Matter to the Legislature. I therefore proceeded on the Contract, which having concluded on & formed I now transmit for your examination that on finding it right you will please to lay it before the President of the United States for his approbation.… I have made an agreement seperate from the Contract ‘that no payment shall be made untill the approbation of the President shall be signified’ to me, and that ‘if the President shall disapprove the Contract, it shall be void.’ I have also, to avoid dispute, taken the further precaution of lodging the counterpart of the Contract in other hands than the party Contracting till such approbation shall be received & which I mention for your satisfaction as a penalty is inserted in the Contract.…”


Title: To Alexander Hamilton from Tobias Lear, 11 December 1790
From: Lear, Tobias
To: Hamilton, Alexander

[Philadelphia] December 11, 1790. “… I have the honor to enclose for your inspection a letter from, & recommendation of, Mr. David Phipps of Connecticut, for the command of one of the revenue Cutters. Also a letter and recommendation for a similar appointment from Mr. Henry Putnam of Georgia.”


Title: Treasury Department Circular to the Collectors of the Customs, 11 December 1790
From: Treasury Department,Hamilton, Alexander
To: Collectors of the Customs

Treasury DepartmentDec. 11. 1790
Sir
The Comptroller of the Treasury having happily recovered his health, and being consequently able to superintend as usual the business of his office, I am to request that you will in future make your applications to him on all questions or enquiries relative to the forms transmitted to you and to the mode of acting in cases arising under them. Such enquiries as you may have addressed to me prior to the receipt of this letter I shall take care to have duly answered either from this office or that of the Comptroller.
I am, Sir, very respectfully   Your obedt. servant
A Hamilton


Title: From Alexander Hamilton to George Washington, [11 December 1790]
From: Hamilton, Alexander
To: Washington, George

[Philadelphia, December 11, 1790]
The Secretary of the Treasury presents his respects to the President. As the instruction concerning Capt. Howell is not definitive, The Secretary, unless directed to the contrary will retain the Communication till he has had an opportunity of submitting to the President some other candidates & recommendations from the same quarter, merely to afford an opportunity of comparison, & to acquaint himself towards those who have made applications, & those who have seconded them.
Saturday Decr. 11th. 1790.


Title: From Alexander Hamilton to Thomas Arnold, 13 December 1790
From: Hamilton, Alexander
To: Arnold, Thomas

Treasury DepartmentDecember 13th. 1790.
Sir
Your letter of the 29th. October has been received. It will be proper for you to make application on the subject of fees to the Collector of your District. It is his duty, both as it regards the persons who hold the employment of surveyor and the public service, to pay to the several surveyors the lawful portion of the compensations, according to their several services. And I presume if any error has taken place through misapprehension it will on re-examination be set right.
I am, Sir, Your Obedient servant
A Hamilton
Thomas Arnold EsquireSurveyor, East Greenwich.


Title: From Alexander Hamilton to John Daves, 13 December 1790
From: Hamilton, Alexander
To: Daves, John

Treasury Department, December 13, 1790. “I learn from your letter of the 7th. of October, that you have sent for a set of Scales & Weights, and that you have determined to rent a store for the Public Use, as also to build a scale house. Some of these things you will perceive by consulting the Acts of Congress cannot be lawfully done without Permission first obtained. Before I authorize you to charge them to the United States, I wish to know, what will be the Cost of the scales & weights, the rent and size of the store and the expence of building the Scale-house. This latter building must be erected on some lot, the nature of the tenure of which I request you to explain.…”


Title: From Alexander Hamilton to the President and Directors of the Bank of New York, 13 December 1790
From: Hamilton, Alexander
To: President and Directors of the Bank of New York

[Philadelphia, December 13, 1790. On December 20, 1790, William Seton wrote to Hamilton: “The President & Directors desire me to acknowledge the receipt of your two Letters of the 13th.” One letter not found.]


Title: Introductory Note: First Report on the Further Provision Necessary for Establishing Public Credit, [13 December 1790]
From:
To:

There are two drafts of this document in the Hamilton Papers, Library of Congress. The final version, which was submitted to the House of Representatives, is the National Archives. The first draft, which is in Hamilton’s handwriting, is printed below in essentially the same form in which it was written by Hamilton. In the margin of the first draft are queries and insertions in the text which were written by at least two unidentified writers. These marginal notes and insertions are indicated in the footnotes. The final version is also printed below. The second draft, which is partly in Hamilton’s writing and partly in that of a clerk, has been omitted, for it is exactly the same as the final version.
In this report all notes of a substantive nature have been made to the final version and not to the draft.


Title: First Draft: First Report on the Further Provision Necessary for Establishing Public Credit, [13 December 1790]
From: Hamilton, Alexander
To:

Respectfully reports
That the object which appears to be more most immediately  essentialnecessary essential  to the further support of public Credit, in pursuance of the principles of the plan adopted during the last session of Congress is the establishment of proper and sufficient funds for of such additional funds as shall be planned competent both to as well to the payment of paying the interest which will shortly begin to accrue, will become payable after the year 1791 on the assumed amount of the debts of the particular several states; having regard, at the same time, to any the probable or estimated computed deficiency in those heretofore already established; appropriated to as they respect, the primitive or original debt of the United States.
In order to this, it is necessary requisite in the first place to take a view of advert to the sums requisite for those purposes.

The amount, which has been assumed, of the State-Debts is
Dolls. 21 500 000

Upon the The annual sum of annual interest upon that for which amount, which according to the terms of the proposed loan which will begin to accrue after the year 1791, is
Dolls 788.333 & 33

The estimated deficiency in the funds already established, as they respect the original debt of the United States is
}
38.291.40

Making which make Making together
Drs. 826 624.73

For procuring which this sum, the most mature and reiterated reflections of the Secretary of the Treasury have suggested nothing so eligible and unexceptionable, in his judgment, as a further duty on foreign distilled spirits, and a duty on spirits distilled within the United States; to be collected in the mode delineated in the plan of a bill, which forms a part of his Report to the House of Representatives, of the 9th day of January last.
And under this Under which this impression, he begs leave, with all deference, to propose to submit for consideration to the consid propose to the consideration of the House—
That the following additions be made to the duties, on distilled spirits imported from foreign Countries, abroad, which are specified in the Act making further provision for the payment of the debts of the United States, namely—

on those of the first class of proof therein mentioned
… … …
⅌ Gallon 8 Cents

on those of the second class of proof
… … …
⅌ ditto Gallon 8½ Cents

on those of the third class
… … …
⅌ do Gallon 9 Cents

on those of the fourth class
… … …
⅌ ditto Gallon 10 Cents

on those of the 5th Class
… … …
⅌ do gallon 10 Cents

on those of the 6th Class
… … …
⅌ do gallon 15 Cents

And that the following duties be laid on spirits distilled within the United States per gallon namely—
If from molasses sugar or other foreign Materials; and
of the said first Class of proof ⅌ Gall ⅌ Gall 11 Cents
of the said second class of proof ⅌ Gall ⅌ Gall 12 Cents
of the said third class of proof ⅌ Gall 13 Cents
of the said 4th Class of proof ⅌ Gall 15 Cents
of the said 5 Class of proof ⅌ Gall 20 Cents
of the said 6 Class of proof ⅌ Gall 30 Cents

If from Materials of the growth or production of the U. States distilled within any City Town or Village; and
of the said first class of proof, ⅌ Gallon 9 Cents
of the said second Class of proof ⅌ Gall 10 Cents
of the said third Class of proof ⅌ Gall 11 Cents
of the said 4 Class of proof ⅌ Gall 13 Cents
of the said 5 Class of proof ⅌ Gall 16 Cents
of the said 6 Class of proof ⅌ Gall 25 Cents
And, if in lieu of those rates upon each still employed in distilling spirits from the like Materials distilled in any other place than a City, town or Village the that in lieu of the above rates per Gallon there be laid upon all stills each actually employed in distilling spirits in lieu of the rates abovementioned the yearly duty sum of sixty Cents, for every gallon English Wine measure of the capacity of such still including its head; exempting nevertheless all such stills, within a certain defined dimension, as are used essentially for domestic purposes of their respective proprietors.
Which several These rates correspond with these proposed in the Report above referred to of the 9th of January last.
The product of these several duties (which correspond in their rates with those proposed in the Report above referred to, of the 9th of January last) may, upon as good grounds as the nature of the case will permit, admit,can afford prior to an experiment, be computed at 975 000 Dollars the particulars of which computation estimate may are contained in the schedule hereunto annexed marked A. The diff ——— The different Their respective rates correspond with those proposed in the report above referred to of the 9th of January last
This computed product exceeds the sum which has been stated as necessary to be provided, by 148.375.27—: an excess, which if it should be happily realized by the actual product, of the duties may be very beneficially applied towards encreasing constituting a the sinking fund
The Secretary has been encouraged to renew the proposition of these duties, in the same form in which they were it was they were before submitted form a persuasion, from a belief founded in circumstances which appeared in the different discussions of the subject, which was produced by which has resulted from the circumstances of the transaction as they appeared to him at the time, that collateral considerations (which have been since  were afterwards obviated) rather than objections to the measure itself prevented the its adoption of the plan during the last session; that from an the impracticability which he conceives to exist inability on his part to devise of devising any substitute equally conducive to the ease and interest of the community; and from an opinion that the extention of the plan of collection, which it contemplates, is, in reference to the duties already imposed on Wines and distilled spirits, is necessary to a well grounded reliance and on their efficacy and productiveness.
The expediency of improving the resource of distilled spirits, as
   an article object of revenue, to the greatest practicable extent, has been noticed upon another occasion. Many Various considerations might be added to those then adduced suggested to evince it. But they are too obvious to justify the detail. There is scarcely an attitude or light in which it which it the object can present itself, which does will not invite the legislative ure arm by all the inducements of sound policy and public good, effective effectual to take a strong and decisive hold of it.

The manner of doing it, or in other words, the mode of collection, appears to be the only point, about which a difficulty or question can arise. If that suggested be liable to just objections, the united information & wisdom of the legislative body ensure the substitution of a more perfect plan.
The Secretary however begs leave to remark that there appear to him are two leading principles, one or the other of which must necessarily characterise whatever plan may be adopted devised. One of them makes the security of the revenue to depend chiefly on the vigilance of the public officers; the other rests it essentially on the integrity of the interested interested individuals, interested to avoid the payment of it.
The former first is the basis of the plan submitted by the Secretary; the latter last has pervaded most, if not all the systems, which have been hitherto practiced upon, in different parts of the United States.
The oaths of the dealers have been almost the only security for criterion evidence of what they were bound by the laws to pay measures, of their compliance with the laws.
It cannot be too much lamented, that these have been found an insufficient inadequate dependence security. But experience, has has too frequently on  every trial, has manifested pronounced them to be such the case. Duties Taxes or duties relying in many instances resting for their collection on that security wholly or almost wholly merely depending on that test for the collection are uniformly unproductive: And they cannot fail to be unequal as long as men continue to be discriminated distinguished by unequal portions of rectitude, they must also of necessity prove unequal, therefore and consequently consequently of course oppressive: The most conscientious scrupulous will pay most; and the least conscientious scrupulous least.
The impulse of interest, in too many minds, not a few is, under such circumstances in not a few minds, an overmatch for, the sense of obligation.duty And the evasions, which are perceived or suspected to be chargeable in practiced by some prompt others to imitation, by the powerful motive of self defence. They infer that they must follow the example, or be unable to maintain an advantageous competition in the business; an alternative with very perplexing trying to all but men nicest strict of exact probity; who are thereby thus rendered in a great measure the victims to a principle of legislation, which does not sufficiently accord with consult the interested byass of human nature. And thus the laws become instruments sources of discouragement and loss to virtuous honest instruments industry and sources of profit and advantage to perf perjury and fraud.
It can is a truth which that cannot be kept too often recollected constantly in view, that all Revenue laws which are so constructed as to involve produce a lax and defective execution are instruments sources of oppression to the most meritorious part of those, on whom they immediately operate, and of additional burthens on the community at large.

The last effect is produced in two different ways. The deficiencies in the funds (which in the main only afford only partial exemptions) must be supplied from other taxes: And the charges of collection, which in most cases are nearly the same, whether any particular a tax or duty yield produce much or little, occasion an accumulation of the ultimate expence of furnishing a given sum to the Treasury.
A farther Another and a very serious evil, chargeable on the system opposite system to that proposed, is that it leads to frequent and familiar violations of oaths; which by loosening one of the strongest bands of society, and weakening one of the principal securities to life and property, offends not less against the maxims, of good government, and sound policy than against those of religion and morality.
It may not be improper further to remark, in addition, that the two great objections to the class of duties, denominated excises, are inapplicable to the plan suggested. These objections are— First The summary jurisdiction of confided to the Officers of Excise; in derogation from the course of the common law and the right of trial by jury. And secondly the general power vested in the same officers of visiting and searching indiscriminately the houses, stores and other buildings of the dealers in excised articles. But by that the plan proposed the officers to be employed are to be cloathed with no such summary jurisdiction, and their discretionary power of visiting and searching is to be restricted to those places, which the Dealers themselves shall designate by public insignia or marks as the depositories of the articles on which the duties are to be laid. Hence it is one of the recommendations of the plan that it steers clear of it is not liable to those objections.
Duties of the kind here proposed as has been before intimated are not novel in the United States; as has been intimated in another place. They have obtained under existed to a considerable extent, under several of the state governments, particularly in Massachusettes Connecticut and Pensylvania. In Connecticut, a state exemplary for its attachment to popular principles, not only all ardent spirits but foreign articles of consumption generally have been the subjects of an excise, or inland duty.
If the supposition that duties of this kind are attended are attended with greater expence in the collection, than taxes on land, should seem an argument for preferring the latter, it may be observed that the fact ought not too readily to be taken for granted. The state of things in England is sometimes referred to as an example on this point. But there the smallness of the expence in the collection of the land tax is to be ascribed to the peculiar modification of it; which proceeding without new assessments according to a fixed standard not long since adjusted, totally disregards the comparitive value of lands and the variations in their value. The consequence of this is an inequality, so palpable and extreme, as would be likely to be ill relished by the land holders of the United States. If in pursuit of greater equality, accurate periodical valuations and or assessments are to afford a rule, it may be well be doubted whether the expence of a land tax will not always exceed that of the kind of duties proposed.
The ingenious but fallacious hypothesis that all taxes on consumption fall finally with accumulated weight on land is now too generally and too satisfactorily exploded, & too solidly exploded, in theory, as well as in practice to require to be combatted here. It has become an agreed truth, that in the operation of those taxes every species of capital and industry contribute their proportion to the revenue; and consequently that as far as they can be made substitutes for taxes on lands they serve to exempt it them from an undue share of the public burthen.
Among other substantial reasons, which recommend, as a provision for the public debt, duties upon articles of consumption, in preference to taxes on houses and lands, is this—It is very desireable. if practicable, to reserve the latter fund for objects, and occasions, which which will more immediately interest the sensibility feelings of the whole community, and more directly affect the public safety. It will be a consolatory reflection, that so capital a resource remains untouched by that provision; which, while it will have a very sensible influence in favour of public Credit, will be materially conducive to the tranquillity of the Public mind, in respect to external danger, and will truly really operate as a powerful guarantee of peace. In proportion as the estimation of our resources is exalted in the eyes of foreign Nations, the respect for us must increase; which will and this must beget a proportionable caution neither to insult nor injure us with levity. The While on the contrary the appearance of exhausted resources, to satisfy obligations contracted for the past (which would be very apt likely to be produced by perhaps be a consequence of mortgaging the revenue of to be derived from land for the interest of the public debt) would might tend to invite both insult and injury, but by inspiring an opinion, that our efforts to resent or repel them were little to be dreaded.
It may not be unworthy of a reflection, that while the idea of residuary resources in so striking a particular & so certain in their nature cannot fail to have many importantly beneficial consequences; the suspension of taxes on real estate can as little fail to be pleasing to the mass of the community; and it may reasonably be presumed that so provident a forbearance on the part of the Government will ensure a more chearful acquiescence on that that of the class on the part of those more immediately concerned; whenever experience, and the evidence of facts and the exigency of conjunctures shall dictate a resort to impositions of that nature that species of revenue.
But in order to be at liberty to pursue this salutary policy course, it is indispensable that an efficacious use should be made of those articles of consumption, which are the most proper and the most productive; of this to which class distilled spirits very most evidently are belong: And a prudent energy will be requisite as well in the mode of collection as in the quantum of the duty.
It need scarcely be observed that the duties on the great mass of imported articles have reached a point at which it would be in not be expedient to exceed. To attempt to extract wholly from that source the intire sum necessary to a complete provision for the public debt would probably be both deceptive and pernicious; incompatible with the interests not less of revenue than of Commerce. Inland duties of one Resources of a different kind must of necessity be explored; sought found and the selection of the most fit objects appears to be the only Inquiry thing which can occupy Inquiry.
Besides the establishment of supplementary funds, it is requisite to the support of the Public Credit that those already instituted established should stand upon a footing which will give all reasonable security to assurance of their effectual Collection.

Among the articles enumerated in the Act making further provision &c, there are two, wines and teas, in regard to which some further provision other regulations, than have been yet adopted, seem necessary for the security of the revenue and desireable for the accomodation for the Merchant.
With these views, it is submitted, that the term for the payment of the duties on wines be enlarged, as it respects Madeira Wines, to Eighteen Months, and as it respects other Wines, to nine Months; and that they be collected on a plan similar to that proposed in relation to imported distilled spirits.
And that a third option (they have (two being allowed them by the present law) be given to the importers of Teas; which shall be, to give bond without surety for the amount of the duty in each case, payable in two years, upon the following terms.
The teas to be deposited at the expence and risk of the Importers in the in ware Store houses or stores to be agreed upon between them him and the Inspector proper officer of the Revenue; each Ware house or storehouse having two locks the key of one of which to be in the keeping custody of th an Inspector officer, and the key of the other of which to be in the custody of the particular importer or his Agent, and the key of the other of which to be in the custody of an Officer, whose duty it shall be made to attend at all reasonable times for the purpose of deliveries.
That These deliveries whether for home sale or for exportation to a foreign Country to be warranted by permits from the Chief Officer of Inspection of the place.
If for home sale, the permits to be granted after the duties shall have been paid or secured to paid.
When the amount of the duties shall not exceed one hundred Dollars, four months to be allowed for payment. When it shall exceed one hundred and not exceed five hundred Dollars the term of payment to be Eight months and twelve months whenever the amount shall exceed five hundred dollars; provided that the Credit shall in no case extend beyond the period of four months over and above two years originally allowed for the intire sum. If all the teas shall not have been delivered the duties of on the whole quantity deposited shall not have been paid or secured to be paid before the expiration of that time, it shall be lawful for the proper officer to cause a sale to be made of so much as shall be sufficient to satisfy discharge what shall remain unsatisfafied. In every case, it shall be at the option of the party applying for the permit, either to pay the amount of the duties on the quantity to be delivered or to give bond for it, with one or more sureties to the satisfaction of the officer whose province it shall be to grant the permits.
If the deliveries are to be made for exportation abroad, the permits to may be granted upon the proper usual bonds being entered into to secure and ascertain the exportation. for the due exportation teas being duly exported. There will This consequently be This may require some formal alterations of form, in the manner of proceeding, relatively to the exportation of this article.
All teas to be landed under the care of the Inspectors of the Revenue; the chests and other packages containing them to be marked and certificates which shall accompany them, to be granted, as in the case of distilled Spirits. There is at least satisfactory evidence, that they cannot be extended further without contravening the sense of the body of the Merchants; and though it is not to cannot be admitted as a general rule that this circumstance ought to conclude against the expediency of a public measure; yet when a due regard to is had to when the disposition which that enlightened class of citizens has manifested towards the National government, to the alacrity chearfulness with which they have hitherto seconded its operations, and it to the accommodating temper spirt of acquiescence with which they look forward to those additional impositions on the objects of Trade which are to commence with the ensuing year, & to the greatness of the innovation which in this particular has already taken place in the former state of things, there will be perceived to exist the most solid reasons against lightly passing the bounds, which coincide with their impressions of reasonableness what is reasonable and eligible. proper It would be in every view inauspicious to give occasion for a supposition that Trade alone is destined to feel the immediate weight of the immediate hand of government in every new emergency exigency of the Treasury.
However true as a general position that the Consumer pays the duty; yet to make the advances it will not follow that Trade may not be essentially distressed and injured by carrying duties on importation to a height which is disproportioned to the Mercantile Capital of the a Country. It may not only be the cause of diverting too large a large share of it from the exigencies of business; but the requisite advances which they require will be requisite to satisfy the duties will in many if not in most cases precede the receipts from the product sale of the articles subject to duty on which they are laid imposed and the consequence will often either be a pos often be sacrifices which cannot be afforded the Merchant cannot afford to make.. The inconveniences of them exceeding the salutary proper limit in this respect, & which will be felt every where will be peculiarly grievous in particularly will fall with particular severity on those places which have not the advantage of public banks & which abound least less in pecuniary resources. Appearances do not justify such an estimate of the extent of the Mercantile capital of the United States as to encourage to material accumulations on the already considerable rates of the duties, on the mass of foreign importations.
Another motive for caution, on this point arises results, from the reflection, that that the effect of an important augmentation, made by a law of the last session, is hitherto a mere matter of speculative calculation, and has not yet even begun to be tried.
It is presumeable too that a still further augmentation would have an influence the reverse of favourable to the public Credit. The operation would be apt to be regarded as artificial, as destitute of solidity as presenting a numerical increase, but involving an actual diminution of Revenue. The distrust of the efficacy of the present provision might also be accompanied with a doubt of a better substitute being founded hereafter. The inference would not be unnatural that a defect of other means resources or an inability to command them could alone have given birth to so unpromising an effort to draw all from one source.
A diversification of the nature of the funds is desireable on other accounts. It is clear, certain that less dependence can be placed on one species of funds and that too liable to the vicissitudes of the continuance and or interruptions of foreign intercourse Communication than upon a variety of different funds formed by a combination the union of internal with external resources objects.
The inference from these important and various and important considerations is that
To these more direct expedients for the support of public Credit, the institution of a National Bank presents itself as an indispensable a necessary auxiliary. This the Secretary regards an an essential indispensable engine in the Administration of the finances. To present this important object in a more distinct and comprehensive light, he has concluded to make it the subject of a separate Report, which he begs leave herewith to submit No. II.
All which &c


Title: Schedule A: [Estimate of the Funds Proposed in the Annexed Report], [13 December 1790]
From:
To:

SCHEDULE A.

Estimate of the Probable Product of the Funds Proposed in the Annexed Report

Dollars

4000.000 Gallons of distilled spirits imported from foreign Countries  at8 Cents ⅌ Gallon
}
320 000

3500 000 Gallons of spirits distilled in the United States from foreign Materials at 11 Cents ⅌ Gallon
}
385 000

3000 000 ditto distilled from Materials of the United states at 9 Cents ⅌ Gall.
}
270 000

Total Dollars
975 000


Title: Final Version: First Report on the Further Provision Necessary for Establishing Public Credit, [13 December 1790]
From:
To:

Treasury DepartmentDecember 13th. 1790[Communicated on December 13, 1790]
[To the Speaker of the House of Representatives]
In obedience to the order of the House of Representatives, of the ninth day of August last, requiring the Secretary of the Treasury to prepare and report, on this day, such further provision as may, in his opinion, be necessary for establishing the public credit
The said Secretary
Respectfully reports
That the object, which appears to be most immediately essential to the further support of public credit, in pursuance of the plan adopted during the last session of Congress, is, the establishment of proper and sufficient funds, for paying the interest which will begin to accrue, after the year one thousand seven hundred and ninety one, on the amount of the debts of the several States, assumed by the United States; having regard at the same time, to the probable, or estimated deficiency in those already established, as they respect the original debt of the Union.
In order to this, it is necessary, in the first place, to take a view of the sums requisite for those purposes.

  The amount, which has been assumed, of the State Debts is
Dollars 21,500,000

  The sum of annual interest upon that amount, which, according to the terms of the proposed loan, will begin to accrue after the year one thousand seven hundred and ninety one, is
CentsDollars  788,333.33

  The estimated deficiency, in the funds already established, as they respect the original debt of the United States, is
38,291.40

Making together
Dollars.  826,624.7⟨3⟩

For procuring which sum, the reiterated reflections of the Secretary have suggested nothing so eligible and unexceptionable, in his judgment, as a further duty on foreign distilled spirits, and a duty on spirits distilled within the United States, to be collected in the mode delineated in the plan of a bill, which forms a part of his report to the house of Representatives, of the ninth day of January last.
Under this impression, he begs leave, with all deference, to propose to the consideration of the House—
That the following additions be made to the duties, on distilled spirits, imported from foreign countries, which are specified in the act making further provision for the payment of the debts of the United States, namely—

    On those of the first class of proof therein mentioned
    ⅌ Gallon. eight Cents

    On those of the second class.
    ⅌ Gallon eight & a half Cents

    On those of the third class.
    ⅌ Gallon nine Cents

    On those of the fourth class.
    ⅌ Gallon ten Cents

    On those of the fifth Class.
    ⅌ Gallon ten Cents

    On those of the sixth class.
    ⅌ Gallon fifteen Cents

And that the following duties be laid on spirits distilled within the United States, namely—If from molasses, sugar or other foreign materials; and of the first class of proof …

    ⅌ Gallon Eleven Cents

    — Of the said second Class of proof
    ⅌ Galln. twelve Cents

    — Of the said third Class of proof
    ⅌ Galln. thirteen Cents

    — Of the said fourth Class of proof
    ⅌ Galln. fifteen Cents

    — Of the said fifth Class of proof
    ⅌ Galln. Twenty Cents

    — Of the said sixth Class of proof
    ⅌ Galln. Thirty Cents

If from materials of the growth or production of the United States distilled within any city, town or village; and

    — Of the said first class of proof
    ⅌ Gallon nine Cents

    — Of the said second class of proof
    ⅌ Galln. ten Cents

    — Of the said third class of proof
    ⅌ Galln. eleven Cents

    — Of the said fourth class of proof
    ⅌ Galln. thirteen Cents

    — Of the said fifth class of proof
    ⅌ Galln. seventeen Cents

    — Of the said sixth class of proof
    ⅌ Galln. twenty five Cents

And upon each still employed in distilling spirits from the like materials in any other place than a city, town or village, in lieu of the rates above mentioned, the yearly sum of sixty Cents, for every gallon english wine measure of the capacity of such still, including its head; exempting nevertheless all such stills, within a certain defined dimension, as are used essentially for domestic purposes of their respective proprietors.
The product of these several duties (which correspond in their rates with those proposed in the report above referred to, of the ninth of January last) may, upon as good grounds as the nature of the case will admit, prior to an experiment, be computed at Eight hundred and seventy seven thousand and five hundred Dollars; the particulars of which computation are contained in the statement which accompanies this report.
This computed product exceeds the sum which has been stated as necessary to be provided, by fifty thousand eight hundred and seventy five Dollars, and twenty seven Cents; an excess, which if it should be realised by the actual product, may be beneficially applied, towards increasing the sinking fund.
The Secretary has been encouraged to renew the proposition of these duties, in the same form, in which they were before submitted, from a belief, founded on circumstances, which appeared in the different discussions of the subject, that collateral considerations, which were afterwards obviated, rather than objections to the measure itself, prevented its adoption, during the last session; from the impracticability, which he conceives to exist of devising any substitute equally conducive to the ease and interest of the community; and from an opinion, that the extension of the plan of collection, which it contemplates, to the duties already imposed on wines and distilled spirits, is necessary to a well grounded reliance on their efficacy and productiveness.
The expediency of improving the resource of distilled spirits, as an article of revenue, to the greatest practicable extent, has been noticed upon another occasion. Various considerations might be added to those, then adduced, to evince it. But they are too obvious to justify the detail. There is scarcely an attitude, in which the object can present itself, which does not invite, by all the inducements of sound policy and public good, to take a strong and effectual hold of it.
The manner of doing it, or in other words, the mode of collection, appears to be the only point, about which a difficulty or question can arise. If that suggested be liable to just objections, the united information and wisdom of the legislative body ensure the substitution of a more perfect plan.
The Secretary, however, begs leave to remark, that there appear to him two leading principles; one, or the other, of which, must necessarily characterise whatever plan may be adopted. One of them makes the security of the revenue to depend chiefly on the vigilance of the public officers; the other rests it, essentially, on the integrity of the individuals, interested to avoid the payment of it.
The first is the basis of the plan submitted by the Secretary; the last has pervaded most, if not all the systems, which have been hitherto practiced upon, in different parts of the United States. The oaths of the dealers have been almost the only security for their compliance with the laws.
It cannot be too much lamented, that these have been found an inadequate dependence. But experience has, on every trial, manifested them to be such. Taxes or duties, relying for their collection on that security, wholly, or almost wholly, are uniformly unproductive: And they cannot fail to be unequal, as long as men continue to be discriminated, by unequal portions of rectitude. The most conscientious will pay most; the least conscientious, least.
The impulse of interest, always sufficiently strong, acts with peculiar force in matters of this kind; in respect to which a loose mode of thinking is too apt to prevail. The want of a habit of appreciating properly the nature of the public rights renders that impulse, in such cases, too frequently an overmatch for the sense of obligation: And the evasions, which are perceived, or suspected to be practiced by some, prompt others to imitation, by the powerful motive of self defence. They infer, that they must follow the example, or be unable to maintain an advantageous competition in the business; an alternative very perplexing to all but men of exact probity, who are thereby rendered in a great measure victims to a principle of legislation, which does not sufficiently accord with the bias of human nature. And thus the laws become sources of discouragement and loss to honest industry, and of profit and advantage to perjury and fraud. It is a truth, that cannot be kept too constantly in view, that all revenue laws, which are so constructed, as to involve a lax and defective execution, are instruments of oppression to the most meritorious part of those, on whom they immediately operate, and of additional burthens, on the community at large.
The last effect is produced in two ways: The deficiencies in the funds (which, in the main, afford only partial exemptions) must be supplied from other taxes: And the charges of collection, which, in most cases, are nearly the same, whether a tax, or duty yield much or little, occasion an accumulation of the ultimate expence of furnishing a given sum to the Treasury.
Another, and a very serious evil, chargeable on the system opposite to that proposed, is, that it leads to frequent and familiar violations of oaths; which, by loosening one of the strongest bands of society, and weakening one of the principal securities to life and property, offends not less against the maxims of good government and sound policy, than against those of religion and morality.
It may not be improper further to remark, that the two great objections to the class of duties, denominated excises, are inapplicable to the plan suggested. These objections are: First The summary jurisdiction confided to the officers of Excise; in derogation from the course of the common law, and the right of trial by jury. And, secondly, the general power vested in the same officers of visiting and searching indiscriminately the houses, stores and other buildings of the dealers in excised articles. But by the plan proposed, the officers to be employed are to be clothed with no such summary jurisdiction, and their discretionary power of visiting and searching is to be restricted to those places, which the Dealers themselves shall designate, by public insignia or marks, as the depositories of the articles, on which the duties are to be laid. Hence, it is one of the recommendations of the plan, that it is not liable to those objections.
Duties of the kind proposed are not novel in the United States; as has been intimated in another place. They have existed to a considerable extent, under several of the State Governments, particularly in Massachusetts, Connecticut and Pennsylvania. In Connecticut, a State exemplary for its attachment to popular principles, not only all ardent spirits, but foreign articles of consumption, generally, have been the subjects of an excise, or inland duty.
If the supposition, that duties of this kind are attended with greater expence in the collection, than taxes on land, should seem an argument for preferring the latter, it may be observed, that the fact ought not too readily to be taken for granted. The state of things in England is sometimes referred to as an example on this point. But, there, the smallness of the expence, in the collection of the land tax, is to be ascribed to the peculiar modification of it; which proceeding, without new assessments, according to a fixed standard, long since adjusted, totally disregards the comparative value of lands and the variations in their value. The consequence of this is an inequality, so palpable and extreme, as would be likely to be ill relished by the landholders of the United States. If in pursuit of greater equality, accurate periodical valuations, or assessments, are to afford a rule, it may well be doubted, whether the expence of a land tax will not always exceed that of the kind of duties proposed.
The ingenious, but fallacious hypothesis, that all taxes on consumption fall finally, with accumulated weight, on land, is now too generally and too satisfactorily exploded, to require to be combated here. It has become an acknowleged truth, that in the operation of those taxes, every species of capital and industry contribute their proportion to the revenue; and, consequently, that as far as they can be made substitutes for taxes on lands, they serve to exempt them from an undue share of the public burthen.
Among other substantial reasons, which recommend, as a provision for the public Debt, duties upon articles of consumption, in preference to taxes on houses and lands, is this: It is very desireable, if practicable, to reserve the latter fund for objects and occasions, which will more immediately interest the sensibility of the whole community, and more directly affect the public safety. It will be a consolatory reflection, that so capital a resource remains untouched, by that provision; which, while it will have a very material influence, in favour of public credit, will be also conducive to the tranquility of the public mind, in respect to external danger, and will really operate as a powerful guarantee of peace. In proportion as the estimation of our resources is exalted in the eyes of foreign nations, the respect for us must increase; and this must beget a proportionable caution neither to insult nor injure us with levity. While on the contrary, the appearance of exhausted resources, (which would perhaps be a consequence of mortgaging the revenue to be derived from land, for the interest of the public debt) might tend to invite both insult and injury, by inspiring an opinion, that our efforts to resent or repel them were little to be dreaded.
It may not be unworthy of reflection, that while the idea of residuary resources, in so striking a particular, cannot fail to have many beneficial consequences; the suspension of taxes on real estate can as little fail to be pleasing to the mass of the community; and it may reasonably be presumed, that so provident a forbearance on the part of the Government will ensure a more chearful acquiescence on that of the class of the community, immediately to be affected; whenever experience and the exigency of conjunctures shall dictate a resort to that species of revenue.
But in order to be at liberty to pursue this salutary course, it is indispensable, that an efficacious use should be made of those articles of consumption, which are the most proper and the most productive; to which class distilled spirits very evidently belong: And a prudent energy will be requisite, as well in relation to the mode of collection, as to the quantum of the duty.
It need scarcely be observed, that the duties on the great mass of imported articles have reached a point, which it would not be expedient to exceed. There is, at least, satisfactory evidence, that they cannot be extended further, without contravening the sense of the body of the Merchants; and though it is not to be admitted, as a general rule, that this circumstance ought to conclude against the expediency of a public measure; yet, when due regard is had to the disposition, which that enlightened class of citizens has manifested towards the National Government, to the alacrity with which they have hitherto seconded its operations, to the accommodating temper, with which they look forward to those additional impositions on the objects of Trade, which are to commence with the ensuing year, and to the greatness of the innovation, which, in this particular, has already taken place, in the former state of things: there will be perceived to exist the most solid reasons against lightly passing the bounds, which coincide with their impressions of what is reasonable and proper. It would be, in every view, inauspicious to give occasion for a supposition, that trade alone is destined to feel the immediate weight of the hand of government, in every new emergency of the Treasury.
However true, as a general position, that the consumer pays the duty; yet it will not follow, that trade may not be essentially distressed and injured by carrying duties, on importation, to a height, which is disproportioned to the mercantile capital of a country. It may not only be the cause of diverting too large a share of it from the exigencies of business; but as the requisite advances to satisfy the duties will, in many, if not in most cases precede the receipts, from the sale of the articles, on which they are laid, the consequence will often be sacrifices, which the merchant cannot afford to make.
The inconveniencies of exceeding the proper limit, in this respect, which will be felt every where, will fall with particular severity on those places, which have not the advantage of public banks; and which abound least in pecuniary resources. Appearances do not justify such an estimate of the extent of the mercantile capital of the United States, as to encourage to material accumulations on the, already considerable, rates of the duties, on the mass of foreign importation.
Another motive for caution, on this point, arises from the reflection, that the effect of an important augmentation, made by a law of the last session, is hitherto a mere matter of speculative calculation, and has not yet even begun to be tried.
It is presumeable, too, that a still further augmentation would have an influence, the reverse of favourable to the public credit. The operation would be apt to be regarded as artificial, as destitute of solidity, as presenting a numerical increase, but involving an actual diminution of revenue. The distrust of the efficacy of the present provision might also be accompanied with a doubt of a better substitute hereafter. The inference would not be unnatural, that a defect of other means, or an inability to command them, could alone have given birth to so unpromising an effort to draw all from one source.
A diversification of the nature of the funds is desireable on other accounts. It is clear that less dependence can be placed on one species of funds, and that too liable to the vicissitudes of the continuance, or interruption of foreign intercourse, than upon a variety of different funds formed by the union of internal with external objects.
The inference, from these various and important considerations, seems to be, that to attempt to extract wholly from duties on imported articles, the sum necessary to a complete provision for the public debt would probably be both deceptive and pernicious, incompatible with the interests, not less of revenue than of commerce: That resources of a different kind must of necessity be explored: And that the selection of the most fit objects is the only thing, which ought to occupy inquiry.
Besides the establishment of supplementary funds, it is requisite to the support of the public credit, that those established should stand upon a footing which will give all reasonable assurance of their effectual collection.
Among the articles enumerated in the act making further provision for the payment of the debt of the United States, there are two, Wines and Teas, in regard to which some other regulations, than have yet been adopted, seem necessary for the security of the revenue and desireable for the accommodation of the merchant.
With these views, it is submitted, that the term for the payment of the duties on wines be enlarged, as it respects Madeira wines, to eighteen months, and as it respects other wines, to nine months; and that they be collected on a plan similar to that proposed in relation to imported distilled spirits.
And that a third option (two being allowed by the present law) be given to the importers of teas; which shall be, to give bond without surety for the amount of the duty in each case, payable in two years, upon the following terms:
The teas to be deposited at the expence and risk of the importer in store houses to be agreed upon between him and the proper officer of the revenue; each storehouse having two locks, the key of one of which to be in the custody of the importer, or his agent, and the key of the other of which to be in the custody of an officer, whose duty it shall be made to attend, at all reasonable times, for the purpose of deliveries.
These deliveries, whether for home sale, or for exportation to a foreign Country, to be warranted by permits from the chief officer of inspection of the place.
If for home sale, the permits to be granted after the duties shall have been paid, or secured to be paid.
When the amount of the duties shall not exceed one hundred Dollars, four months to be allowed for payment. When it shall exceed one hundred Dollars, and not exceed five hundred Dollars the term of payment to be eight months; and twelve months whenever the amount shall exceed five hundred Dollars; provided that the credit shall in no case extend beyond the period of two years originally allowed for the intire sum. If the duties on the whole quantity deposited shall not have been paid, or secured to be paid, before the expiration of that time, it shall be lawful for the proper officer to cause a sale to be made of so much as shall be sufficient to discharge what shall remain unsatisfied. In every case, it shall be, at the option of the party applying for the permit, either to pay the amount of the duties on the quantity to be delivered, or to give bond for it, with one or more sureties, to the satisfaction of the officer, whose province it shall be to grant the permits.
If the deliveries are to be made for exportation, the permits to be granted upon bond being entered into to secure and ascertain the exportation. This may require some alterations of form, in the manner of proceeding, relatively to the exportation of this article.
All Teas to be landed under the care of the Inspectors of the revenue; the chests and other packages containing them to be marked; and certificates, which shall accompany them, to be granted, as in the case of distilled spirits.
To these more direct expedients for the support of public credit, the institution of a National Bank presents itself, as a necessary auxiliary. This the Secretary regards as an indispensable engine in the administration of the finances. To present this important object in a more distinct, and more comprehensive light, he has concluded to make it the subject of a separate report, which he begs leave herewith to submit No. II.
All which is humbly submitted
Alexander HamiltonSecretary of the Treasury

Estimate of the probable product of the funds proposed in the annexed report

4.000,000 Gallons of distilled spirits imported from foreign  countries at 8 cents per Gallon
}
Dollars320.000

3,500,000 Gallons of spirits distilled in the United States  from foreign materials at 11 Cents ⅌ Gallon
}
385,000

3,000,000 ditto distilled from materials of the United States  at 9 Cents ⅌ Gallon
}
270,000

Total Dollars …
975,000

Deduct for Drawbacks and expence of collection 10 ⅌ Cent
}
97.500

Net Product Dollars

877.500


Title: From Alexander Hamilton to George Washington, 13 December 1790
From: Hamilton, Alexander
To: Washington, George

Treasury Departmt. Decr. 13th. 1790.
Sir
I have the honor to transmit herewith the copy of a report intended to be presented to the House of representatives on the subject of a National Bank.
This communication would have been earlier made if it had been in my power, but it has been impossible for me to prepare it sooner.
With the most perfect respect   I have the honor to be   Sir, Your most Obedient & most humble Servant
Alexander HamiltonSecy. of the Treasury