Title: To Alexander Hamilton from Samuel Osgood, 20 January 1790
From: Osgood, Samuel
To: Hamilton, Alexander

General Post Office, New York, January 20, 1790.
In obedience to the orders of the Supreme Executive, I have the honor of laying before you such remarks and observations as have occurred to me, in attending to the Department of the Post Office; many of these observations will be found to be of a general nature, and founded in opinion: for there are not documents in the office on which to found estimates that would afford satisfaction.
The existing ordinance for regulating the Post Office, though very defective in many things, has not probably ever been put fully in execution; yet the smallness of the revenue arising under the same may have been the effect of various causes, some of which could not, and others might have been remedied, but not so fully as they may under the present Government.
As to the revenue of the Post Office, it may be observed—
First. That there may be so few letters written that, under the best regulations, it would not amount to any thing considerable; and the dispersed manner of settling the country may operate powerfully against the productiveness of the Post Office.
Second. The franking of letters may have been extended too far.
Third. Ship letters may not have been properly attended to.
Fourth. The rate of postage may have been too high in some instances, and too low in others.
Fifth. Stage drivers and private post riders may have been the carriers of many letters which ought to have gone in the mail.

Sixth. The Postmasters may have consulted their own interest in preference to that of the public.
Remedies may be applied to all these causes, except the first. With respect to that article, I have no documents on which to found an opinion that may be relied on.
The amount of revenue will undoubtedly be considerable, if the Department is well regulated. If we should form an opinion from a comparative view of the wealth, numbers, and revenue, of the Post Offices of other countries, it would be, that the Post Office of the United States ought to bring in annually nearly half a million of dollars, under similar regulations; whereas the gross receipts in any one year have not exceeded thirty-five thousand dollars; and for the two last years have been at about twenty-five thousand dollars a year.
The revenue of the Post Office, at present, arises principally from letters passing from one seaport to another, and this source will be constantly increasing.
If we average the postage paid on letters at five cents, five hundred thousand letters would produce the sum that now arises from the Post Office annually.
A revenue of five hundred thousand dollars would require ten millions, at five cents; five millions, at ten cents; and three millions and one third, at fifteen cents; which last rate is probably nearer the true average than either of the other sums.
If there be one hundred thousand persons that write in the course of a year, each of them, thirty letters, it will nearly make the number, or twenty-five thousand write severally one hundred and twenty letters.
Foreign letters should also be taken into the computation, which are very numerous, and in other countries are subjected to a heavy rate of postage.
If, however, we should place the nett revenue at one hundred thousand dollars, even this sum must be an object of great importance to the treasury of the United States. But it will require some time to get a system into operation so as to produce it.
Unless a more energetic system is established than the present one, there will be no surplus revenue that will be worth calculating upon.

The great extent of territory over which three millions of people are settled, occasions a great expense in transporting the mail; and it will be found impracticable to accommodate all that wish to be accommodated unless a great proportion of the revenue is given up for this object.
The applications for new Post Offices and new post roads are numerous; cross roads must be established, and of very considerable extent, in order to open a communication with the treasury and revenue officers.
On franked letters I have to observe, that the accounts have not been so kept in the Post Offices as that we can ascertain what the amount would be if they were charged with the usual rates of postage.
Newspapers, which have hitherto passed free of postage, circulate extensively through the Post Offices; one or two cents upon each would probably amount to as much as the expenses of transporting the mail.
The third article, if properly regulated, would be a source of great revenue. If the postage could be collected, the present rates would not produce a revenue much short of fifty thousand dollars a year. But upon the construction that has heretofore been put upon the ordinance of Congress, ship letters have operated as a clear loss to the revenue.
The clause of the ordinance is as follows: “For any distance not exceeding sixty miles, one penny-weight eight grains; upwards of sixty miles, and not exceeding one hundred miles, two pennyweights—and so on; and for all single letters to and from Europe, by the packet or despatch vessel, four penny-weights; and to the foregoing rates shall be added a sum not exceeding four-ninetieths of a dollar upon any letter, packet, or despatch, which shall come into the Post Office from beyond sea, by any other conveyance than by packet or despatch vessels.”
The meaning of this clause, as it relates to ship letters, appears to be plain. Packet, or despatch vessel, can intend none other than American. All letters coming into the post office from beyond sea by other conveyance than American packets, should be charged with the four-penny weight, equal to twenty ninetieths, and the additional sum of four-ninetieths, making twenty-four-ninetieths. And, if such letters are forwarded by land through the Post Offices, the usual rates for travelling letters should be charged over and above the twenty-four-ninetieths. The rates correspond nearly with the British rates for the like kind of letters. But whether so high a rate of postage ought to be put on letters that come by French or British packets, is a matter that is questioned by many.
The practice has been to charge two-ninetieths on ship letters delivered out of the same place where they were first received, and four-ninetieths in addition to the fixed rate of travelling letters on those forwarded to other places, if they came from beyond sea by any other conveyance than French or British packets. The two-ninetieths has been considered as a prerequisite to the Postmaster; the General Post Office has not been credited with it. And, as the Postmasters are authorized to pay one-ninetieth a letter to the captains or masters of vessels bringing the same, they take credit to themselves for the one-ninetieth in their account current with the General Post Office. In one of the Post Offices, this one-ninetieth has amounted to one hundred and sixty dollars a year, and, consequently, the twenty-four-ninetieths, if it had been charged, would have amounted to three thousand eight hundred and forty dollars a year.
The late Postmaster at this place had as perquisites over and above his commission of twenty per cent. more than all the money that arose from ship letters, and one hundred and twenty pounds a year for his trouble with respect to French and British packets.
The foregoing rates of postage were reduced twenty-five per cent. by an act of Congress, of the , 1787.
On the fourth article, I will give my reasons for apprehending that the rates of postage are, in some instances, too high.
Wherever Congress may hold their sessions, it will be considered as the centre of the United States, and will necessarily occasion a great deal of letter writing to that place. The extremes are, in my opinion, entitled to an easy and cheap access to that place through the Post Office. Their comparative advantages derived from the General Government are smaller than those of the more central, and ought not to be diminished by the heavy rates of postage that now exist. The postage of a single letter from Georgia, or rather Savannah, to New York, is thirty-three-ninetieths of a dollar, which amounts almost to a prohibition of communication through the Post Office. If it should be reduced to about sixteen cents, the revenue would not probably be injured by it.
So far as I have been able to collect the opinions of others relative to the fifth article, the injury the general revenue has sustained in this way is greater than I had expected; perhaps no complete remedy can be devised for this evil, yet it may undoubtedly be remedied in a great measure.
In the present manner of contracting to carry the mail, especially by stage carriages, the contractors labor under disadvantages, on account of the shortness of the time. One of them has property to the amount of nearly twenty thousand dollars employed in the transportation of the mail. Whenever they undertake to carry it one or two hundred miles, it costs them several thousand dollars for horses and carriages. This property sinks considerable in his hands, if he fails to contract the next year: many of them urge this contingency as a reason for a higher charge. The advertising for proposals for carrying the mail places the Postmaster General in a disagreeable predicament: for many poor people make proposals at so low a rate that it is obvious the business cannot be done as it ought to be, and consequently there cannot be a strict adherence to the lowest proposals. Discretion must be used, and the contract must be given to him who will most probably perform the duty with punctuality. A few failures in a year injure the General Post Office more than the public can be benefited by the recovery of the penalties in the contractor’s bonds.
Whether it will not be proper to give the contractors that carry the mail by stage carriages the exclusive privilege of driving stages on the post roads, is submitted for consideration.
There are, at this time, about twenty different contracts for carrying the mail, which has a greater tendency to put the business into confusion than I apprehended: every contractor consults his own interest as to the days and hours of arrival and departure of the mail, without having a due regard to the necessary connexion of the Post Office. A regular system of days and hours of departure has never been established further southward than Alexandria.

The contracts for carrying the mails to the southward of New York the ensuing year amount to
$14,973 75

And to the eastward of the same place to
  6,003 15

$20,977 00

With the exclusive privilege of driving stages, and the contracts being for a greater length of time, this sum would probably be sufficient to induce men of property to come forward, when character and reputation would be the best kind of security for the Post Office. It is so necessary to establish regularity, in order to promote a well founded confidence in the Post Office, which I think can hardly be effected upon the present mode of contracting, that, if a different one should eventually cost something more, yet the Department would be benefited by it.
It is not difficult to ascertain what ought to be given for carrying the mail a mile; if the Legislature should fix the sum, it would then be the duty of the Postmaster General to find out such as he could place the most confidence in, to execute the business well. This method has always been practised in England, so far as I understand the regulations of the Post Office there.
On the sixth article it may be observed that very small advantages taken by those concerned in the receipt of postage, will, in a year, amount to a great sum. In some instances these may be justifiable: for example, the postage of a single letter from New York to Philadelphia, is one pennyweight eight grains, or sixpence two-thirds Pennsylvania currency. This cannot be made out in any pieces of coin current in the United States. The letters are charged with sevenpence, which is right: for if there must be a fraction it ought always to be taken in favor of the Post Office.
This, however, may be remedied in two ways; the one is to make the rates of postage to be received in each State conformable to the currency thereof. The other is for the United States to coin pieces that might correspond with the rates of postage.
The dead letters may afford an opportunity for defrauding the revenue; but if the deputies’ accounts are properly examined in the General Post Office, many evils that might otherwise exist, will naturally vanish.
With respect to the present ordinance regulating the Post Office, I beg leave to suggest the propriety of sundry alterations and additions.
If the views of the Legislature should be to raise a revenue from the Post Office, the defects of the present system are many, and may easily be pointed out. But if there should be no such views, yet, for the purpose of establishing more security in the Department, sundry alterations will be found essentially necessary.
The two following articles operate most powerfully against the productiveness of the Post Office at present:
Any person may receive, carry, and deliver, inland letters, and is subject to no penalty, if it be done without hire or reward.
The following alterations appear to me to be necessary for greater security in the Post Office, whether revenue be or be not an object:
A more accurate description of offences and frauds that may be committed by any person employed in any way or manner whatever in the Department; and the establishment of penalties proportioned to the injuries that may happen from the committing such offences, or being guilty of such frauds.
Those that will naturally present themselves first, will be such as may be committed by the Postmaster General, and those employed in his office.
And such as may be committed by the contractors for carrying the mail, and by their agents and servants.
Many offences may probably be pointed out that have never been committed in the United States: but the opportunity to commit them is great, and when committed the injury may be irreparable, as property to a very great amount is frequently entrusted in the mail.
It therefore appears to me that it will be only exercising a due degree of caution to guard against them by defining the crimes and affixing to the commission of them such penalties as will be most likely to deter from and prevent the actual commission of them.
The duties of the Postmaster General are at present to keep an office in the place where Congress may hold their sessions. To obey such orders and instructions as he may from time to time receive from the President of the United States. To appoint Deputy Postmasters, and instruct them in their duty in conformity to the acts of Congress. To receive and examine their accounts and vouchers, and draw out of their hands, quarterly, the balances due to the United States. To render to the treasury, annually, an account of the receipts and expenditures, for examination and allowance, and to pay over the surplus moneys. To provide by contract and otherwise for carrying the mail; and to pay the necessary expenses thereof. To establish and open new Post Offices and new post roads, whenever and wherever they may be found necessary, within certain limits marked out by the acts of Congress. And in general to superintend the department, and to be accountable for it in the various duties assigned to it, except the carrying of the mail.
On any breach of oath, on due conviction, he forfeits one thousand dollars.
With respect to the accountability of the Postmaster General, I beg leave to observe that no man can, however sagacious and cautious he may be in his appointments, without subjecting himself to certain loss, be responsible for the conduct of his deputies. The calculations of loss being certain in case of responsibility, if he has not a salary sufficient to compensate such loss, he must, to save himself, transact the business, and keep the accounts in a manner that the treasury shall not be able to charge him with any more money than he chooses to be charged with; or he may endeavor to transact the business fairly, and hold the office until he finds he cannot preserve his reputation and credit, and then, if he is an honest man, he will resign.
The number of times the mail shall be carried weekly, the advertising for proposals for carrying the mail, and the establishing of new Post Offices and new post roads, appear to me to be matters that should be left in the direction of the Supreme Executive. Very great embarrassments ensue when business is pointed out in detail, and there is no power at hand that can alter the same, however necessary it may be to alter it.
The Postmaster General should be subjected to suitable penalties, in case he neglects or refuses to render true and just accounts of the receipts and expenditures, and to pay over the moneys to the treasury that may be over and above the annual expenditures, at such periods as may be required.
It may be a question whether the Postmaster General should keep an office separate from the one in which common and ordinary business is done. There may be some reasons why he should not have a separate office. Irregularities and interruptions of communications will happen, and those who have the receiving and delivering of the mail are most likely to be acquainted seasonably with them.
When the Postmaster General keeps a separate office many things that he ought to be acquainted with may entirely escape his notice.
I found the General Post Office not blended with one in which common and ordinary business was transacted, and it remains in the same situation.
The prohibition at present against receiving and carrying letters, extends to such only as do it for hire or reward; but it ought to extend to all who receive and carry letters, whether with or without reward; and penalties should be annexed to enforce an observance of it. Some few exceptions may be found necessary, where masters of vessels carry letters respecting the merchandises under their immediate care; and letters sent by a special messenger, by a friend, or by a common known carrier of goods.
Regulations may probably be found necessary respecting bye or way-letters; embezzling or destroying letters on which the postage has been paid; detaining or opening letters; secreting, embezzling, and stealing any valuable papers out of any letters; against the carriers of the mail in case they neglect or desert it; to oblige the ferrymen to set the mail across in all possible cases in a given time; to recover debts due to and from the Deputy Postmasters in a summary way.
These are some of the principal alterations that have occurred to me as being necessary to be introduced into the regulations of the Post Office, and no doubt many others may suggest themselves to the wisdom of the Legislature.
With respect to appropriating to a particular object any supposed surplus of revenue that may arise in the Department, I beg leave to observe that it will undoubtedly tend to awaken the attention of the citizens to the Department, if a certain sum should be required to be paid quarterly or semi-annually into the treasury, and be appropriated to the payment of the interest of the domestic debt, as far as it might go.
This might interest a powerful body of citizens in attending to the operations of the Department, and would probably have a greater tendency to keep the Postmasters strictly to their duty, if any should be otherwise disposed, than any authority with which the Postmaster General might be clothed.
I have enclosed the form of an act, or rather such principles as appear to me proper to be introduced into the arrangement of the Post Office, which will tend, more fully than the foregoing observations, to explain my views of the alterations that are necessary.
I am, sir, with esteem, your most obedient humble servant,
Samuel Osgood
The Honorable Alexander Hamilton, Secretary of the Treasury.


Title: From Alexander Hamilton to Roger Alden, [21 January 1790]
From: Hamilton, Alexander
To: Alden, Roger

[New York, January 21, 1790]
Sir
If you have in the Office the laws of North Carolina, I will thank you for the perusal of them. As I want them in haste, I shall be glad they may be sent by the bearer.
I am, Sir Yr Obed serv
A HamiltonS of the Treasy
New York January 21. 1789
Roger Alden Esq


Title: From Alexander Hamilton to John Davidson, 22 January 1790
From: Hamilton, Alexander
To: Davidson, John

Treasury Department, January 22, 1790. “I am favored with your letter of the 2d Instant Enclosing a Bank Note for Fifty Dollars; all the Remittances which you make in future must be sent … to the Treasurer of the United States.…”


Title: To Alexander Hamilton from William Livingston, 23 January 1790
From: Livingston, William
To: Hamilton, Alexander

[January 23, 1790. On February 8, 1790, Hamilton wrote to Livingston: “I had the honor of receiving a few days since your Excellencys letter of the 23d. of January.” Letter not found.]


Title: To Alexander Hamilton from Tobias Lear, 24 January 1790
From: Lear, Tobias
To: Hamilton, Alexander

United States, January 24th, 1790
Sir,
In obedience to the commands of the President of the United States, I have the honor to transmit to you a letter from His Excellency Beverley Randolph Governor of Virginia, dated January the 14th 1790, relating to the materials which were placed upon Cape Henry by the States of Virginia and Maryland for the purpose of building a Light House; and likewise the report of General Wood upon the same subject, which report was enclosed in Governor Randolph’s letter to the President of the United States.
I have the honor to be,   with perfect respect,   Sir,   Your most Obedt. Servt.
Tobias Lear.Secretary to the Presidentof the United States.
The Honorable The Secretary of the Treasury of the U.S.


Title: To Alexander Hamilton from Sharp Delany, [25 January 1790]
From: Delany, Sharp
To: Hamilton, Alexander

[Philadelphia, January 25, 1790]
Sir
From the Journals of Congress I see You have reported a Bill to the consideration of the Legislature respecting Duties, which gives me much pleasure even if the Imposts you wish to take place should not carry, as the deficiencies & contrarieties in our collection & Registering Acts may be remedied. The office of Naval officer as a controuling officer is absolutely necessary—but as the collection Act now stands that officer at present is nugatory & has not any essential check. Sometime this week I intend to wait on You—as in person I think I can give more information & satisfaction to You than by Letter. I inclose the Acct. of Liquidated Bonds by this conveyance and am Sir &c
S Delany
25th Jany 1790 Alexander Hamilton EsqrS of the T.


Title: From Alexander Hamilton to Jedediah Huntington, 25 January 1790
From: Hamilton, Alexander
To: Huntington, Jedediah

Treasury Department, January 25, 1790. “I am favored with your letter of 9th. instant, transmitting the Accounts of the Lighthouse under your Superintendance. As the regulations for this establishment have not yet been determined on by the President I cannot at present do any thing with respect to your compensation on this Account.…”


Title: From Alexander Hamilton to Benjamin Lincoln, 25 January 1790
From: Hamilton, Alexander
To: Lincoln, Benjamin

(Duplicate)
Treasury DepartmentJanuary 25th. 1790
Gentlemen
As it has become my duty to prepare a plan for the consideration of Congress, respecting the encouragement of Manufactures it is of course my wish to ⟨secure in⟩formation, which can be had on the Subject.

I shall therefore be obliged to you, for such ⟨– – particular⟩s, as may assist me in forming a right judgement of the means, which may be proper to be pursued.
The several kinds of Manufactures carried on in the State—the places where they are carried on, the times of their Commencements, and the progress they have made—the situation in which they now are—the value of the raw material, and the expences of the Manufacture are all circumstances of which I should be glad to have as precise a knowledge, as can be obtained.
Manufactories of Cannon, Arms, & Gun powder are objects to which I am directed to pay particular attention.
I request an answer to these inquiries as speedily as it can be afforded with due regard to accuracy. Perhaps the information will best be conveyed successively.
I flatter myself the importance of the object in a public view, will be a sufficient apology for the trouble I give.
And am   Gentlemen   Your Obedient & humble Servant


Title: To Alexander Hamilton from Otho H. Williams, 25 January 1790
From: Williams, Otho H.
To: Hamilton, Alexander

Baltimore, January 25, 1790. Discusses the official value of the rix-dollars of Denmark, Sweden, and various German states.


Title: To Alexander Hamilton from Wilhem and Jan Willink, Nicholaas and Jacob Van Staphorst, and Nicholas Hubbard, [25 January 1790]
From: Willink, Wilhem,Willink, Jan,Van Staphorst, Jacob,Van Staphorst, Nicholaas,Hubbard, Nicholas
To: Hamilton, Alexander

[Amsterdam, January 25, 1790]
(Triplicate)
Sir!
We had the Honor to address you the 29 Ulto. since when we have not received any of your respected favors.
We have now to acquaint you that the Persons employed by the Court of France here, and the principal Broker in the French funds, foreseeing that the Situation of the Finances of that Country would put it out of the Power of the Governmt. to make timely Provision for the payement of the interest and reimbursment of the instalment of Capital due the 5 Decr. last on the loan raised here by the Court of France under Guarantee of their High Mightinesses, the Monies of which were applied to the services of the united states; They made ouvertures to Mr. Necker the first minister of the Finances to purchase the title of Six Millions of livres, furnished by the Court of France to the united States in 1783. and the arrears of interest due thereon in order to furnish monies for the above & other pressing Objects. As this transaction tended to commit the credit & reputation of the united States to the Management of Persons unconnected with their Government and without any strong Motives to induce them to uphold it, but who on the contrary would be spurred by the urging necessities to raise Monies, to effect the same on terms injurious to the rising credit of America. We on the first intelligence of any Movements here, exerted ourselves to prevent the success of the business, and Succeeded So far, that in order to remove the ground of our Objections, the french house offered to assume us in the execution of the business, as the only Certain way of Securing the Event, and hindering any depression to the Credit of the united States. We refused so long as we could imagine that by keeping aloof, we might defeat the business but when we saw that the Minister had touched upon the negotiation here, in his Memorial to the National Assembly, and were informed from an Authority we would have been injustifiable in doubting, that if we did not determine to Coalesce the affair would be proposed and certainly be accepted by the french Minister, so great were his then actual wants, and thus the credit of the united States be Sported with, owing to our declining to interfere in its Support, which we were enabled to do, by the confidence the Money lenders place in us, from the care we have always taken to insure the regular Payment of their interests, we judged it our duty to Submit notwithstanding we constantly entertained the most eager wish, that the matter could have been postponed, until we should receive the directions of the united States upon what we wrote the Commissioners of the Treasury, and communicated to his Excellency Thomas Jefferson, respecting the transfer to the Money Lenders here, of the debt due by the united States to France. In the Interval of the negotiations upon this Subject, and the time the offer could be formally made to the Minister for his final determination a Settlement of considerable Magnitude of the french Finances by rendering the Minister more easy in Money matters, thro’ the receipt of eight millions of Livres the caiste d’Escompte Supplied to the Government inclined him not to accept the proposal one of us went to Paris, expressly to make him for the Purchase of six millions livres Capital and the arrears of interest, alledging that this was too Small an object to trouble the national assembly with, but that if we would treat for the whole debt He was ready to enter into arrangements for it. This issue to the business was highly agreeable to us, as would be the possibility of the matter laying dormant, untill we received instructions from the united States, subsequent to the arrival of our letter of 11 Sepr. and of his Excellency Thomas Jefferson; but we have had the chagrin to learn that some Gentlemen have formed, and presented to the Minister a Plan for the Purchase of the whole Claim of France against the united States. Half of the consideration to be paid in french Effects, and the other half in Money at the Current Prices of these Effects, which afford the Prospect of a most enormous profit to the Speculators, and we have but too much reason to apprehend there are Persons concerned in the affair, capable of influencing its acceptance by the French Ministry.
The parties confident that no house could succeed to negotiate the business, or at least with any thing near the facility or advantage as the Commissioners of Congress Loans, applied to us to know if we would consent to undertake it, and to obtain our acquiesence offered us the alternative of a share in the Profits, or a Valuable Commission. Deeming ourselves the natural Guardians of the Honor and credit of the united States in their Financial Concerns here, we stood in need of no other Consideration to induce us to forego Any personal advantages, in order to ward off the depression such a Bargain would cause to the credit of the united States. These being our sentiments even if we had had the chief direction in the Business and consequently a great controul over the timely Opening of the Loans, you’ll easily conceive, how much Stronger our objections are against assuming the Commission to negotiate upon the credit of the united States, for these Speculators, and the eager desire we have by every possible Means to prevent the realization of this project, to avoid that from the certain Knowledge our Money lenders would have of this Transaction, as it must pass thro’ and be ratified by the National Assembly, they would learn that the credit of the united States is held in So litle repute, that the french Ministry at an enormous great Profit to the speculators, uncompensated by any early desirable Supply of Money to that Nation, had abandoned it to the mercy of Speculating individuals who to fullfill their Engagements of paying off the whole in two Years, would be compelled to camish upon this Market American loans to the extent at least of twelve Millions of Guilders, to purchase the necessary french Funds, an information that would immediately Check nay destroy the credit of the united states, as the Money Lenders would naturally conclude, that by waiting until the Speculators must make good their payments they would be necessitated to vend their American Bonds at almost any rate, exclusive of the danger, that when the french Funds should be low they might find it their benefit to force the sale of the american Bonds at low prices, to profit of the fall of French Stocks. To remedy which evils our remonstrances or opposition might provely entirely fruitless, as when once possessed of these Claims upon our refusal to open the Loans requisited to enable them to compleat their Views or Engagements, they might commission any other House to do it, which not having the same relation with the United States and consequent Interest to support their credit would not hesitate sacrificing it to give satisfaction to their Employers, adding to all which the impossibility there would be for the united states during the long time it would take, to place the nineteen Millions in Bonds that would issue from the Exchange of debts, as the value at par of that due by the united States to the Court of France and the Still longer Period that would be necessary to raise the credit of the united States from the injury it would unquestionably Sustain to negotiate any other monies they might desire to appropriate to the Support of their credit here, their inferior arrangements or Ameliorations, and we are persuaded the government will fully applaud our anxious Sollicitude to avert the Many and great Evils that would flow from the completion of this purchase, and thankfully approve of the only Step we have judged efficacious to overturn it immediately; which is of availing ourselves of the present plenty of Money here to open a loan the 1st. Proximo of Three millions Florins for account of the united States, reimbursable by yearly Instalments of f600,000.—Commencing in 1801. and ending in 1805—which we communicate to the French Ministry with information of our having So done, from our knowledge of the wishes and intentions of the united states to evince their friendship to the French Nation, by reimbursing so soon as in their Power the debt due to France, and that we would be ready to pay them these three Millions, on receipt of directions from the United States to negotiate monies for this object, which we had reason to expect Shortly and assuring them that we would Second with all our power the wishes of our Employers, to transfer this debt from the French nation, unto the Money lenders here in a Manner not derogatory to the dignity & honor of the Government of the united States or injurious to their Credit, which flattering ourselves to be able to compleat within the Course of the next year, and at all events with more expedition than the money could be procured in any Other manner or thro’ any other Persons, we trusted the Ministry would refrain by any Bargain with individuals for the sale or Transfer of the claim against the united States, from compromising the dignity and honor of their allies, and overturn their well established credit here, in committing it to the direction of Persons whose Engagements or Interests may tempt them to sacrifice it. We make not the least doubt of the Success of this Measure, to defeat entirely all further treaty between the French Ministry and the Persons offering to purchase the claims of France against the united States. However to render our object the more certain, we transmit the duplicate of this letter open to Mr. Short chargé des affaires of the United States to be forwarded to you by him, acquainting him of our proceedings, and urging his utmost Exertions to engage the French Ministry to suspend the Idea of treating with Individuals about the claim against the united States until the desire and intentions of their Government Shall be known on the Subject, and we are without Apprehension of this Gentleman’s obtaining the Promise we are so Sollicitous the french Ministry shall make from our experience of his Zeal for the Service of the united States and the Opinion he testified to us in Paris, that the Commissioners here were unquestionably the most fit Persons to decide upon every thing relating to the credit of the united States in Holland.
The actual state of the credit of the united states will permit us to open the Loan upon the most favorable terms any Nation borrows Monies here, so that there will be only a deduction of 4½ pCt. for Premiums, Brokerage, Commissions and all other Charges, and we the more readily agreed to open this Loan for three Millions as we now avail the united States of the plenty of money here, which will probably have subsided or be less brisk on arrival of their orders, and because there will be no Question of obtaining a lower rate of interest than 5 pCt. now universally established here by all the Powers borrowing Money, which rise of interest is the only reason why the united States pay the same for this as for the first Loan opened for their account, altho’ their credit now is equal to that of any European Government accustomd to raise monies in Holland.
To Spare the united States all possible Advances of Interest while the Money shall remain unappropriated, we shall issue the recepisses at the option of the buyers to take them so late as they please, on the Expectation the three Millions will be placed in a few months. Having thus explained our motives for opening this Loan, and our attention to the Interest and credit of the United States in its price and conditions. We firmly rely upon our obtaining that approbation and Ratification from the United states which they have hitherto constantly bestowed upon all our discretionary proceedings, dictated as this has been by our Sincere Zeal to cherish and promote their Credit; But if after all this our conduct shall not be honored with their approbation, youll please to observe that we have not assumed to bind the United States to accept the Monies arising from this Loan, which the Purchasers will furnish solely upon our Personal credit, and the Confidence they place in us, and in Such case we Shall have to return back the Monies with one Years Interest to the Proprietors of the Bonds sold. A Sacrifice that with the other charges we chearfully submit to the decision of your Government If it ought to be borne by us, who expose ourselves thereto only thro’ Zeal for the credit of the united States, or whether the United States will not deem it Just to assume the same.
A Speedy decision be it either way, is of to great Consequence to render it necessary for us, to press your obtaining and transmitting it to us with the least possible delay possible. If as we do not doubt the united states will accept and confirm this Loan, we will follow their directions for disposal of the Monies, on receipt of the necessary powers to enable us to pass the Bonds on their behalf and may we request your care sir, that these may be ample and Satisfactory, to prevent all reclamation of that Point.
We further submit to you, whether considering that the wants and necessities of the French Nation may render it extremely desirable, to the Ministry to raise all the Monies they can, and thus tempt them to hearken to Proposals for purchasing Parts or the whole of their claims against the united-States, it would not be proper to lodge the needfull Powers and Authority in an Agent or with us, to negotiate Monies here as Opportunities might offer, upon favorable Terms to be paid to the French Ministry against their delivring us discharged the Titles of the claims of the French Nation against the united States, until their final Extinction, which would be the sure means of defeating any other projects of individuals by rendering themSelves Possessors of such enormous claims, to become massers of the credit and in some degree of the dignity of the Government of the United States, and the only possible mode, by which the United States could in the interval of the realisation of the transfer of this Object to our money Lenders, apply any part of the Monies raised upon its Engagements to the Support of its credit here, temporary or permanent Provision for the Interests of its foreign debts or other Engagements in Europe exclusive of any Sums they may wish to appropriate for the Purposes of their domestick Finances or local improvements.
We are very respectfully   Sir!   Your most obedient & most Humble Servants.
Wilhem & Jan WillinkN & J. Van Staphorst & Hubbard
Amsterdam 25 Jany. 1790.
To the Hble A. Hamilton Esqr. Secretary of the Treasury at Newyork


Title: To Alexander Hamilton from Benjamin Lincoln, 26 January 1790
From: Lincoln, Benjamin
To: Hamilton, Alexander

Boston, January 26, 1790. Discusses the problems involved in the re-exportation of imported wines. Suggests placing imported raisins, lemons, pepper, and pimento on the enumerated list, and states that the additional levies would produce a “handsome” sum.


Title: To Alexander Hamilton from Thomas Mifflin, 26 January 1790
From: Mifflin, Thomas
To: Hamilton, Alexander

Philadelphia, January 26, 1790. Encloses a statement of Pennsylvania’s public debt. States that a supplementary statement of the United States securities in the state treasury will be transmitted in the near future.


Title: From Alexander Hamilton to Baron von Steuben, 26 January 1790
From: Hamilton, Alexander
To: Steuben, Baron von

[New York, January 26, 1790. “Among the documents which relate to the circumstances of your entrance into the service of the United States, are—a letter from you to Congress, dated at Portsmouth, the 6th Decr. 1777—a report of the Committee which conferred with you at York Town—and a letter from you to the President of Congress, dated in December 1782. Inclosed you will find copies of the two first, and an Extract from the last. As these may seem to militate against your claim, as founded in Contract, I think it proper, before I report to the House of Representatives upon your memorial, to afford you an opportunity of making such remarks upon those documents, as may appear to you advisable.” Letter not found.]


Title: To Alexander Hamilton from Benjamin Lincoln, 27 January 1790
From: Lincoln, Benjamin
To: Hamilton, Alexander

[Boston] January 27, 1790. “Your faver of the 20th respecting Christopher Sadler is before us. In the morning of his arrival he came directly to the office with his papers in order to enter his vessel. His papers from Hallifax Nova Scotia were regular. He appeared to be very unhappy on his finding his mistake and applied for advice and has attended fully to the directions given him. No circumstance has taken place which leads us to believe there was any fraud committed or that he ever had any intention of fraud.…”


Title: From Alexander Hamilton to Beverley Randolph, 27 January 1790
From: Hamilton, Alexander
To: Randolph, Beverley

Treasury Department, January 27, 1790. Acknowledges receipt of a certificate from the auditor of Virginia on the manner of calculating the state’s debt.


Title: Treasury Department Circular to the Collectors of the Customs, 27 January 1790
From: Treasury Department,Hamilton, Alexander
To: Collectors of the Customs

Treasury Department Jany 27th. 1790
Sir
The adoption of the Constitution of the United States by the state of North Carolina, having raised a question concerning the operation of the 39th. Section of the Collection bill and the 3d. Section of the Act for suspending part of that Act and for other purposes; it is incumbent upon me to give my opinion upon the subject; which is, that they were virtually repealed by that adoption.
Among other reasons for this opinion, is that article of the Constitution which declares that all duties, imposts and excises shall be uniform throughout the United States.
I am Sir   Your Obedt. servant
A HamiltonSecy of the Treasy


Title: From Alexander Hamilton to Benjamin Lincoln, 28 January 1790
From: Hamilton, Alexander
To: Lincoln, Benjamin

Treasury Department, January 28, 1790. Directs Lincoln to distribute ship registers to the Massachusetts collectors.


Title: To Alexander Hamilton from William Short, 28[–31] January 1790
From: Short, William
To: Hamilton, Alexander

Paris Jan. 28. [–31] 1790
Sir
I had the honor of addressing you a letter on the 30th. of November last in answer to yours of the 7th. of October. In it I mentioned in what manner our debt to France had become an object of ministerial consideration before the arrival of Count de Moustier, who was charged with your letter, & the influence which his arrival had on some of those who were negotiating with the minister. Although I knew from your letter that he was not charged with the powers which he had mentioned to several, yet I did not think proper to contradict it, as he was endeavouring to operate what I thought for the advantage of the United States. Since that time the proposals made by different persons to the minister on the subject of our debt have been of two sorts. I mentioned them in my letters to Mr. Jay & begged the favor of him to communicate it to you, not being willing to trouble you before something definitive was done. This however being deferred longer than I had supposed possible after what I had heard M. Montmorin say on the proposition now before the minister, & it being not improbable that the delay may still continue I have thought it my duty to inform you of it.
The offer now before the minister is made by Mr. G. Morris & Mr. Parker of Boston—it is to pay the full amount of the American debt (capital & interest) in French funds which at present produce an annual interest equal to that of the American debt after the interest in arrear is added to the capital & also to oblige themselves, after they shall have deposited the French funds in the ministers hands to recieve them from him again & give him in their stead for a certain part of them to be agreed on, cash agreeable to their present value. This last article is to enable the minister to raise a certain sum of money on the American debt—or rather on the French funds given for the American debt, in the case of public exigencies requiring it. It is certain the Minister was determined to have accepted the offer, & has been prevented only by the want of confidence in the pecuniary abilities of those who made it. He asked security & they replied that no house could or would give security for a sum of nearly forty millions of livres—they desired that he should retain the American obligations as his security, & should deliver them only as he recieved their value in the French stocks. It seems he did not chuse to commence such a negotiation except with some house of established reputation, & this probably that his own might not be committed in the case of the contract not being carried into full execution. Mr. Morris is I believe now in correspondence with the bankers of the United States in order to engage them to join him in this offer—one of them who resides at Paris is much disposed to engage in it—the others I believe think differently. Thus Sir stands the affair at present—it comes to my knowledge as a private person. I have thought it best throughout the whole of these negotiations to take the least part possible in them, as it will leave the most entire liberty to the decisions of Congress, whose ratification will certainly be considered as one of the conditions of the contract.
It is useless after what I have said to add that nothing has been done by me on the subject of delaying the installments & arrears of interest agreeably to your desire. As I know Count de Moustier is desirous of doing whatever he supposes agreeable to the United States, & at the same time may prove to the Minister their confidence in him, I think this negotiation better in his hands than any other & also suppose it more conformable to your idea that the arrangement should be effected by his means than mine. He has told me that he had no doubt he should get Mr. Necker to make the offer of delay on the conditions & in the manner you desired. He added also, what I think not so certain that he had put a stop to the negotiation for the purchase of the American debt. Since that time I have had a conversation with M. Montmorin which convinced me that if any house of extensive & established credit should make the same offer with that of Mr. Morris, that it would be accepted without hesitation. On the whole however sir I think you may consider it as certain, either that the debt will be purchased by a company who will subscribe to your proposals, or that the minister will make an offer of what you desire.
I have obtained from the farmers general a return of the Vessels & cargoes which arrived in France from the United States under the premium of the last year. Supposing it may contribute as a datum to the calculations which you will necessarily be induced to make on the American commerce I do myself the honor Sir of forwarding it to you. My letters to Mr. Jay long ago, will have made known the continuation of this premium to the first of July next—a like return at that period will be easily obtained. A late letter from Bordeaux informs me that several vessels have already arrived there from the United States with flour & wheat of the last crop.
I beg leave to congratulate you Sir on the return of happiness & unexampled prosperity to our country, & on the effect which it has already produced in the dispositions of Europe towards us. My ardent wishes for their long continuance are as sincere as the assurances of those sentiments of profound respect & attachment with which I have the honor to be Sir, your most obedient & most humble servant
W. Short
P.S.   Jan. 31, 1790. In the moment of sending off my letter I recieved the inclosed from the bankers of the United States at Amsterdam with a desire that I should read & forward it to you. I think it unnecessary to mention to you Sir my astonishment at the measure they have taken with respect to the loan, as well as the reasons on which they ground it: they go so fully into them that they need no comment on my part; I cannot avoid however taking notice of the paragraph which regards me as they have given an extent to my expressions which change entirely the nature of them, & seemed disposed to make an use of them in which you will easily see they are not warranted. When Mr. Hubbard was in Paris he came to explain to me the nature of the proposition he was about to make to Mr. Necker. Our only conversation was in presence of Mr Van Staphorst, who recollects perfectly that what I said to him was in answer to his arguments in favor of the plan by which the Minister was to dispose of a part of our debt at a discount of 11½ p Cent. After telling him that my determination was to remain as passive as possible in this business, I asked him whether he thought Congress would like better that their debt should be transferred with that loss to the French court—or at par in the French stocks agreeable to the latter proposal which had been made. He answered after some hesitation that he thought his plan most for the credit & honor of the United States. I added that he was the best judge of that, & that the commissioners of the United States should best know what would be most agreeable to Congress in such a case. On the whole what I said must have fully convinced Mr. Hubbard that I should be far from taking on myself to advise so precipitate a measure as that which has been adopted. I suppose further that he must have been apprehensive of my objections to it, as no hint has been given me of it until it was past the season of objections on my part. My letters which will have informed you of the nature of the proposals made to the minister by other parties & which are the causes of this precipitation in our bankers, together with the letter here inclosed will put you fully in possession of whatever relates to the subject on this side of the Atlantic. I have no doubt that the loan will be filled as I take it for granted that these gentlemen are too judicious to have risked such an enterprise without having before hand insured its success. In the advertisement for the loan they state that the United States having no minister in Europe authorized to direct such an operation, they have determined to open it for them. It will thus appear that it is their personal credit which has procured the loan, whilst it is certain that those who furnish the money have an ultimate view to Congress.
I have no doubt that this measure will prevent any thing further being done by the minister with respect to the American debt until the sentiments of Congress shall be known. He will not treat but with some house of honor & established credit, & no house of that sort will undertake such an operation against the council of the commissioners of the United States. I shall not be easy until I hear something from you Sir on these subjects. I hope the line of conduct which I have thought it proper to observe respecting them will not be disapproved by you, as by being passive I avoided risking to commit the United States when it was impossible for me to know what would be their wishes.
The Honble. Alexr. Hamilton


Title: From Alexander Hamilton to Benjamin Lincoln, 30 January 1790
From: Hamilton, Alexander
To: Lincoln, Benjamin

[New York, January 30, 1790. On February 7, 1790, Lincoln wrote to Hamilton: “I received last night your several favors of the 27th. 28 & 30th Ulto.” Letter of January 30 not found.]


Title: From Alexander Hamilton to Joseph Whipple, 30 January 1790
From: Hamilton, Alexander
To: Whipple, Joseph

[New York, January 30, 1790. On May 31, 1790, in a letter to Hamilton, Whipple referred to “your letters of the 30th January & 24th March last.” Letter of January 30th not found.]


Title: From Alexander Hamilton to Otho H. Williams, 30 January 1790
From: Hamilton, Alexander
To: Williams, Otho H.

Treasury Department, January 30, 1790. Informs Williams of regulations on payment of invalid pensions.


Title: To Alexander Hamilton from Gouverneur Morris, 31 January 1790
From: Morris, Gouverneur
To: Hamilton, Alexander

Paris 31 January 1790
Dear Hamilton
I did expect that in congratulating you, which I do most sincerely, upon your Appointment, I should have communicated a Matter which would have administred much Ease and Convenience to the Affairs of your Department. I learn this morning that these Expectations are frustrated from a Quarter and in a Manner which would excite my Surprize had I not long since acquired the Habit of wondering at Nothing. I will tell you a plain story.
Mr. Necker, pressed for Money, had listened to overtures for selling the Debt of the United States, and mentioned the Matter to some Members of the national assembly by which Means it became known to the principal Americans and Friends of America here. I own that upon the first Mention of the Matter it appeared to me a Matter of Indifference and so I expressed myself. Our Duty is to pay to such Creditors as may possess the Demand. But further Information placed the Affair in a different Point of Light. It appeared that the Offer was for a small Part at a great Discount, and that the terms of the Bargain were to be debated in the national Assembly and consequently our Reputation sported with. Mr. Short did every thing in his Power, but having no pointed Instructions, could only express the Result of his own Judgment and Feelings. But the minister was pressed for Money and he had the Offer of Money. Under these Circumstances in Connection with a Society of Friends to America, I made Mr. Necker an Offer such as in my Conception was honorable to france, to America, and to the Parties. This Proposition (after stating the Amount of the Principal and Interest which would be due on the first of January 1790 and considering that as a new Capital on which the Interest was to run) contains the following Terms “On propose de l’acquerir du Gouvernement, et a cet Effet de l’acquitter en entier par des Rentes perpetuelles de la france montantes a la meme Somme.” This Payment was to be made in the Year 1790 & 1791, consequently so far as france is concerned, the Offer went to a full compleat and entire Payment and that at a much earlier Period is stipulated by the Terms of the Loans themselves. To this was added a further Offer, in Case the Situation of Affairs in this Kingdom should require it, in the following terms “On rechargera de soldes en Argent la Moitie de la dite Reule au prix courant des Effets royaux.” This Part of the offer has no other Merit than to secure to the Minister the Sale of the french Effects if he thought proper and is therefore a Matter rather of Convenience than advantage. I communicated this Plan before hand to Mr. Short and to the Marquis de la fayette who both considered it as an excellent Means of saving at the same time the Honor and Interest of America, while it furnished an useful Resource to france. I shewed it also to Monsieur de Montmorin, who having well weighed and considered it, assured me that he most heartily approved and would do everything in his Power to secure the Success. In the Supposition that this Plan were adopted here Application was to be made thro you to the United States to pay the Amount of this Debt in Obligations for current Guilders, calculating the Exchange at Par. Those Obligations to bear five per Cent Interest and to be paid in Installments, the first of which to commence five Years hence; consequently, as the Society was to bear all Charges of Negotiation &ca. &ca. &ca. it follows clearly that the United States would have obtained the needful Time required for their Accomodation without a farthing of Expence and without the Pain of soliciting it from this Court. It was therefore equally honorable and useful for them. It was honorable also to the Parties. First because they became eminently useful to the Societies of which they are respectively Members. And secondly because the Advantage (if any) which they were to derive, would result meerly from a careful and industrious Attention to the Variations of the Exchange and fluctuations in the Effects, and by the Use of their Funds and Credit to make Investments &ca. &ca. at the proper Times and Seasons which (as far as the Sum of forty Millions of Livres & upwards can go) must necessarily have sustained the Value of the Stocks here. And you will observe that this was clearly stated and understood.
The Proposition was delivered to Mr. Necker on the fifth of December. You will observe that in framing it, we counted upon the Aid of Money Lenders in Holland, and in Preference to others upon the Commissioners of the United States. We learnt however that these Gentlemen had (notwithstanding the Remonstrances of Mr. Jacob Van Staphorst who has a real and warm Regard for America) joined with those who made the Offer to Mr. Necker. Thro the Channel that brought us this Information an Interview was brought about between Monsieur de la Chaise and Mr. Van Staphorst charged with the final Proposition to Mr Necker, and me. I told those Gentlemen I was convinced that their Offer could not be accepted (by the bye Mr. Necker had told me that the Sum offered was not sufficient) and that if accepted by the Minister it could not be adopted by the Assembly and that they risqued doing great Injury to America without any Advantage to themselves. That I would communicate to them an Offer I had made and which I had great Reason to believe would be adopted. That I would offer them an Interest in it, or a Commission at their Option. That if they should not approve of holding a Concern, I would then lie still and let them make the Most of their Plans without Opposition but asked the Assurance on the Part of themselves and of their Principals (those whom they represented) that if they found their own Scheme impracticable and did not chuse to adventure with me, that they should only not oppose. This being solemnly promised, I stated the Matter to them at large, and they came so fully into my Views as to withhold the Proposition they were directed to make and send an Express on the Subject to Amsterdam. This Interview was on the eleventh of December in the Evening. Some farther Discussions were needful which we had the next Day. I avoided going to Mr. Neckers because I was to do Nothing which would defeat their Plan. On the twenty sixth Mr. Hubbard Partner of the House of Staphorst, arrived charged to make their Offer and with a Budget of Reasons in Support of it. This offer was to purchase the 6,000,000 ₶ at a Discount of about 11 ⅌ Ct. It was made immediately, and on the Morning of the 28th. he called on me in Company with Mr. Van Staphorst. I had been repeatedly assured from different quarters that Mr. Necker was ready to treat with me but had not put myself in his Way. The Conversation with Mr. Hubbard was not very long. I heard what he had to say and replied with very great Precision, but so as to change entirely his Opinion. You will not wonder at this when I tell you the Purport of the Objections he had brought forward. 1st. that it was too profitable to the Parties. 2ly too burthensome to france and 3ly might injure the Credit of America by selling the Obligations too low. To the first I replied by a Smile, and the Assurance that I never expected such an Objection from Holland. This disconcerted him. To the second I answered that Mr. Necker understood his own Business and might safely be trusted in making a Bargain: but I shewed him farther that the Bargain was a good one. To the last I made the Answer which I am sure you have already made in your own Mind viz That if the Commr. of the United States could safely be trusted in making Negotiations where the Loss was to be borne by their Employers a fortiori might they be trusted where the Loss was to be borne by themselves. As all this was meerly ostensible, I pressed him hard for the real Reasons, but could get Nothing more than Assurance that there were no other than those abovementioned. As these were clearly refuted, of Course he acknowleged himself converted; but Hudibras has very well observed that Who’s convinced against his Will is of the same opinion still. A more effectual Change was wrought by Mr. Necker who on the 2d of this Month refused their Offer. On the Morning of the third Mr. Hubbard called and informed me of this, and in the Afternoon of the fifth he set off for Amsterdam, apparently desirous of bringing all his friends into my Views. The Business went on but slowly in Amsterdam, and Mr. Jacob Van Staphorst was amused from Time to Time and amused me with the Expectation that each succeeding Post would bring their definitive Answer, but this Morning he tells me with very sincere Regret what has been done. The Letter to you on this Subject I have read, and will make a few Remarks on it, but shall not be very precise perhaps, as it is only from Memory of what it contained that I write. The Idea of an enormous Profit, admitting for a Moment that such were to accrue would hardly have been with them what Candid calls the sufficient Reason for Refusal, altho perhaps it might have been for Acceptance. But you can judge of the Extent of that Profit, and you will with me smile at the Absurdity of connecting with such Profit a Sacrifice in the Price of American Obligations on the vending of which at or near Par the profit must certainly depend. There is something else which perhaps is more ridiculous still viz that the United States (whose Obligations belonging to numerous Individuals are daily sold on the Change of Amsterdam) should apprehend an Injury to their Credit from trusting a farther Negotiation to Persons whose immediate Interest in supporting that Credit would be so great. They state as a great Difficulty the borrowing of twelve Millions within the Term when on the same Pledge they can borrow twenty. Their Statement of Sums is not I believe very accurate or perhaps my Memory is not accurate. However I am sure the Idea is that the greater Sum can be borrowed more easily than the lesser. There is also the further very extraordinary Idea that it is for the Interest of the United States to pay between four and five per Cent upon a Negotiation, rather than get it done for Nothing. I shall not notice many Expressions which are injurious but make, to their Affectation of Disinterestedness, the answer which Jacob Van Staphorst made to me. It is very strange that they should say all this when they must remember that in Mr. Calonne’s time, they offered him only fourteen millions of Livres for one Half of the thirty two and arrearages of Interest, but would not take the whole even at that Rate which is the Reason why the Bargain was broken off. I should make but a poor Excuse for so long a Story if I stopped here; but I will now proceed to give you what I conceive to be the Key of the Riddle.

These Gentlemen are engaged, as I suppose you knew in very extensive Speculations upon the funded Debt of America. They have lately worked this Matter to a most astonishing Benefit. Above three Millions of that Debt which cost them five Shillings in the Pound has been made the Basis of a Loan on which they receive sixty per Cent and are bound to repay it by Installments from the Interest receivable in America. The Dutch however prefer lending at five per Cent to the Congress direct. It is therefore essential to the Success of their Schemes that they should be able to suspend the one Loan always till they have compleated the other, and thus our national Interests are rendered subservient to their particular Negotiations. You will easily see that one such Operation in which there is no Risque is better worth pursuing than the very great Profit they complain of. With this Hint I think you will understand the Matter thoroughly. I must come to a Conclusion.
I did not see Mr. Necker as I expected this Afternoon, because he was gone to Council; however I must suspend (at least) the Matter with him; but you may rely on it that if the Minister at this Court, or any other Agent, be authorized fully to deal in the Business, and if the Court will not readily agree to a new arrangement respecting the Debt to contract with Individuals that the Matter can be yet managed in the Manner abovementioned; provided it be not too long delayed. As to the Loan which the Commissioners have undertaken of their own Heads, you may I think derive great Advantage from it: for in the first Place your Minister or Agent can make Terms with them to that Amount at Pleasure for the Benefit of the United States. And you may in the next Place convert the Money to very useful Purposes by sinking three or four times as much of the domestic Debt and raising the Price at the same time towards Par which will prevent the Success of Speculations by foreigners which are a Loss to America.


Title: To Alexander Hamilton from Otho H. Williams, 2 February 1790
From: Williams, Otho H.
To: Hamilton, Alexander

Baltimore 2d February 1790
Sir
I had, before the receipt of your circular letter of the 20th. Ulto, communicated to you “a statement of the amount of the emoluments which have accrued to the officers of this port respectively, under the existing regulations, up to the first of Jany.”
I have communicated your letter to the Naval officer, and the Surveyor; and, that you may have the greater reliance on the statement, I will inclose herewith an Abstract account corresponding with the receipts which are filed in my office. I will also subjoin a statement, of actual expence, for Stationary, and printing, only. A comparison of the proportion of those expences paid, in the first instance respectively by the Collector, and by the Naval Offi⟨cer⟩ will manifest, in some measure, the proportions of services requ⟨ired⟩ of each by the existing laws.
Foreseeing the inadequacy of the compensations to the reward of the services required; and to the discharge of the necessary, and contingent, expences, I have been attentive to economy in all things. The Collector’s, and the Naval Officer’s Office, are in my own House: and the latter gives me the use of a stable for the rent of the room. But this accomodation is not so convenient, as necessary. By Law It is requisite for the Collector to have a public store for the receipt of goods which are to be kept at the ex⟨pence⟩ and risque of the Owner. At what rate storage is to be ⟨paid⟩ or how the acct. of that business is to be kept? The law is ⟨such⟩ I presume that it was not the intention of the Legislature to ⟨make it⟩ a private business between the Collector and the Owners of Merchandize, But that the United States should have Credit By the profits if any, or be charged with the loss, which might appear upon the settlement of that account, after being audited and admitted by the secretary. As the Collector of this port is allowed one half ⅌ Cent on the monies only which shall be paid into the Treasury, I apprehend that he is not entitled even to one half Per Cent on the monies which he is directed to receive and pay otherwise. To save, therefore, the expence of a store keeper I made the Owners accountable for all goods (in the circumstances alluded to) where I could place confidence; and where I could not, I made use of a part of my own House or the Surveyors office for a Store without making any charge. Consequently I have not in fact, to the 31 Decr. inclusive, any Account of that sort to settle; yet in my general estimate of expences I have included a very moderate charge for the hire of a Store keeper, as I discover that under almost any arrangement that will probably exist such a provision will be proper.
It is to be regretted that the Impost system commenced with an aspect very inauspicious to the respectability of the Officers of the customs. I need not suggest to you sir that the present plan has a tendency to render them despicable, or that men who dispair of respectability will but too commonly stoop to unj⟨ust ex⟩pedients to gratifie a passion yet less patriotic than ambitio⟨us.⟩
It would not become me thus to express myself if I were resolved at all events, to preserve my present station.
I am, Sir,   Your Most obedient,   Humble Servant
O. H. Williams
⟨A. Ha⟩milton Esqr. Secretary ⟨of⟩ the Treasury.


Title: Enclosure: [Estimate of Emoluments of Collectors Office], [2 February 1790]
From: Williams, Otho H.
To: Hamilton, Alexander

Upon a presumption the propriety of which ought to be admitted, that the Importations of the 10th. of August to 31 Decmr. are equal to half the business of the Year at this port, a just estimate of the emoluments of the Collectors Office will appear thus.

in addn.
6.51

The Gross amount of duties is

56,995.62½

57,002.13½

Deductions on UStates bottoms

  3,268.98.
  }

   293.34

3,562.32

Ditto prompt payments

53,439.81½

Deduct also for payts. to Subaltern Officers 1152.28½ and incidental charges &c. 490.82½ upon which no Commission is allowed by Law}

1,643.11

51,796.70½

Charge Com ½ ⅌ Cent on 51,796.70½. payable @ four, Six, and twelve, Months}

258.98.

Fees ⅌ dividend with Naval Officer
709.15

From the gross amount of Commission and fees
968.13

Deduct for actual expences to assistants
400.00.

Actual do. Stationary & Blanks
112.26⅓

Allow for House rent, Office & Store keeper
200.00. very low

do. for fuel, chandlery and a Servant, Subsiste, &c.
87.73.⅔

800.00

residue
168.13

In forming his estimate I have no consideration of the circumstances of a necesity to reside in Baltimore, and the inconvenience of doing so without my family—a residence in the Country would be much cheaper and The tenement which I occupy would bring me a much higher rent than I have calculated upon in the estimate. My assistants are the same, and are employed at the same rates as those who served me under the late state laws. I cannot wish for assistants more capable, but they are insufficient for the effectual execution of the comparitively exorbitant task imposed upon the Collector. My Personal application is as constant as my health will permit and my office hours are regulated only by the hours of rising—necessary refreshment, and resting.


Title: From Alexander Hamilton to Thomas Mifflin, 3 February 1790
From: Hamilton, Alexander
To: Mifflin, Thomas

Treasury Department, February 3, 1790. “I am honored with the Receipt of your letter of the 26th of last month, inclosing a Statement of the Public Debt of Pennsylvania.…”


Title: To Alexander Hamilton from Angelica Church, 4 February 1790
From: Church, Angelica
To: Hamilton, Alexander

London february the 4. 1790
You are happy my dear friend to find consolation in “words and thoughts.” I cannot be so easily satisfied. I regret America, I regret the separation from my friends and I lament the loss of your society. I am so unreasonable as to prefer our charming family parties to all the gaieties of London. I cannot now relish the gay world, an irresistible apathy has taken possession of my mind, and banished those innocent sallies of a lively Imagination that once afforded pleasure to myself and friends—but do not let me pain your affectionate heart, all will be well and perhaps I may return to America.
My fathers letters have releived me from the dread of having offended him. He speaks of you with so much pride and satisfaction, that if I did not [love] you as he does, I should be a little Jealous of his attachment.
I shall send by the first ships every well written book that I can procure on the subject of finance. I cannot help being diverted at the avidity I express to whatever relates to this subject. It is a new source of amusement or rather of interest.
Adieu my dear Brother, remember me affectionately to Eliza. I have this moment received her letter, and have received three from you. I accept this attention on your part as I ought, and if in return I cannot give you any agreeable information, I can at least give you the History of my Mind, which is at present very much occupied by a very great, and very amiable personage. Adieu my dear friend.


Title: From Alexander Hamilton to Benjamin Lincoln, 4 February 1790
From: Hamilton, Alexander
To: Lincoln, Benjamin

Treasury Department feby 4th. 1790.
Sir
I have received the report of the Collector, Naval Officer and Surveyor of the Port of Boston & Charlestown.
As some little delay may attend the process of obtaining relief, I would advise that the Vessel and Cargo be released, upon competent Security being given to pay their value, in case the forfeiture be not remitted.
I am, Sir
Benjamin Lincoln Esquire
Collector for the Port of Boston &c Massachusetts.


Title: From Alexander Hamilton to Jeremiah Olney, 4 February 1790
From: Hamilton, Alexander
To: Olney, Jeremiah

Treasury Department, February 4, 1790. Announces that Olney has been selected by the President to pay “pensions to Invalids for the Space of one year.”


Title: To Alexander Hamilton from Benjamin Lincoln, 5 February 1790
From: Lincoln, Benjamin
To: Hamilton, Alexander

Boston Feby 5th. 1790
Sir
Agreeably to your directions I now Inclose the return of the fees of the several officers of the district of Boston and Charlestown together with an account of all the money paid to the weighers, gaugers, which was received by them respectively from the 10th. of August to the end of December last. At one view you will see what ⅌ Cent the collection in this district has cost.
The emoluments of the Collector, Naval officer, and surveyor are very far short of the sum the public suppose they have received. When Congress limited the collectors of the large ports to half ⅌ Cent for receiving and paying out the money and that only on part of the sum they do actually receive and pay, they hardly considered how little the half ⅌ Cent was compared with the trouble of receiving, paying out the money, the safe keeping of it while on hand, the high responsible light in which the collectors are held and the heavy bonds by which the public interest in their hands is covered. Nor did they I think fully attend to the circumstance that in all large ports, where our considerable sums are received, and for that reason the sum given for collecting was reduced from one to half ⅌ Cent, that the officers were liable to much greater expences than in ports more private and where the manner of living is different & less costly.
Congress say that the half ⅌ Cent shall be received on money paid into the treasury of the United States. No consideration therefore is made for the receiving and paying all fees, pay of inspectors wieghers, gaugers and measurers and many other small expences. Nor is anything allowed for receiving and paying out the money ordered to be paid as drawbacks and bounties. This will cause a great deduction of the half ⅌ Cent.
One ⅌ Cent on the whole sum received and paid out is a sum which an interested person thinks ought at the least to be the establishment.
I ought to remark that a very considerable proportion of the fees which have arisen from the operation of the coasting act are from the necessity the people are under to take out new registers that is an advantage to the office which probably will never again arise.
Permit me farther to observe that from our return now before you, you will not be able to judge very critically of the business we shall do in this office in the term of one year. Little is transacted from the inclemency of our seasons in the months of Jany. Feby. & half March while in many other ports no check of business is experienced from the same cause.
From the fees of all the several offices some expenses are to be deducted. From those I receive as collector I have to pay an assistant, a book keeper, office room fire wood Stationary, Candles &c &c these are very heavy deductions indeed.


Title: To Alexander Hamilton from Otho H. Williams, 6 February 1790
From: Williams, Otho H.
To: Hamilton, Alexander

Baltimore, February 6, 1790. Will “cheerfully execute the pleasure of the President respecting the payment of pensions to Invalids in this State.” Transmits “Account Current against the United States, with Bond account; both accompanied with Notes to explain the circumstance of their disagreeing from the Weekly returns heretofore transmitted.”


Title: From Alexander Hamilton to Sharp Delany, 8 February 1790
From: Hamilton, Alexander
To: Delany, Sharp

Treasury Department Feby 8th 1790.
Sir
Hurry of business has prevented my answering till now your favours of the 21st of December and 9th of January.
I am of opinion that in strictness after the passing of the Registering Act, nothing but the Register or Enrollment could be evidence of an American bottom, or entitle a vessel to the privileges of one. Yet where from absence it was impossible for a vessel (“evidently and bona fide” entitled to be registered) to have previously obtained one and relaxations have taken place in her favour, I have not disapproved them.
I differ in opinion from Mr. Fisher, though I am aware that there is room for that which he entertains. I conceive that at each entry a Tonnage of fifty cents is to be paid by all Foreign Vessels, except those built in the United States, and owned wholly or in part by subjects of foreign powers which are to pay at each entry only thirty cents, unless employed in trading between different districts when they also pay fifty cents. I reason thus:
Tonnage at different rates is to be paid on all vessels entered into the United States. The entry is then the Criterion. This entry cannot mean one from abroad merely, because on that construction, the second section which exempts Coasters from paying more than once a year would be useless, as they are not to be presumed whilst employed in the Coasters Trade to enter from abroad.
But it may be asked, why the provision of the third section? The answer is, that this will still have some effect by supposing it to operate on that description of foreign Vessels, which in other cases would pay only thirty cents. And this construction will best reconcile all the parts of the Act together.
With regard to Vessels applying for licenses I incline to think, that when tonnage has been paid on entry the license ought to be granted without it; but where tonnage has not been paid, it ought to be paid previous to granting the license.
I am, sir,   Your Obdt Servt
A Hamilton.
Sharp Delaney, Esquire,Collector of the Port of Philadelphia.


Title: From Alexander Hamilton to Nathaniel Fosdick, 8 February 1790
From: Hamilton, Alexander
To: Fosdick, Nathaniel

Treasury DepartmentFebruary 8th. 1790.
Sir:
I have received your letter of the twelfth of January, enclosing your returns. With respect to the question you submit, I am of opinion that the true construction of the Act, is that the duties on the Cargo must be paid or secured to be paid in the first district at which a vessel arrives, except where she puts in from necessity, as provided for by the twelfth Section of the Collection Bill; consequently she cannot, in any other case, proceed with her cargo, or any part thereof, without having previously paid or secured the duties on the whole, at the port of her first arrival.
I am, Sir,   Your obedient Servant.
A. Hamilton.Secretary of the Treasury
Nathaniel F. Fosdick,Collector for the Port of Portland Massachusetts.


Title: From Alexander Hamilton to Richard Law, 8 February 1790
From: Hamilton, Alexander
To: Law, Richard

[New York, February 8, 1790. The dealer’s catalogue description of this letter reads: “Refers to the salary of Judge Law.” Letter not found.]


Title: From Alexander Hamilton to Otho H. Williams, 8 February 1790
From: Hamilton, Alexander
To: Williams, Otho H.

Treasury Department 8th. feby 1790.
Sir
I inclose you the extract of a letter from the Collector of the District of Chester.
As I recollect nothing which authorises the practice he speaks of, I conclude there must be some misapprehension; but it is proper I should communicate the matter to you, and understand from you, what can have given rise to the representation.
I remain, Sir,   Your obedt. Servt.
A Hamilton
Otho H. Williams Esqr. Collector for the port of Baltimore


Title: To Alexander Hamilton from James Jarvis, 10 February 1790
From: Jarvis, James
To: Hamilton, Alexander

New York February 10th. 1790.
Sir!
The ideas which I proposed to submit to your consideration some days ago, a variety of interruptions have prevented my comitting to paper, in an orderly manner until this day. They are now presented and claim, an exertion of indulgence and patience in the perusal, that I could hope for from no man but yourself in the station you fill.
In your report of the 9th. January last there appear two great and predominant principles, namely the preservation of Public faith, inviolate, and the creation, to the community of the United States of America, of a powerful and active representation of their Agriculture commerce and manufactures, the most solid and desireable evidences of the industry, wealth, and power of nations!
Permit me to say, that in general, your plan, is so happily adapted to the genius of our country-men, and to the real interests of America as, in my opinion, leaves little to apprehend, with respect to its success, so far as is dependent on that deliberate wisdom, which has from the commencement of the rupture with Britain, to the present hour, so strongly characterized the people of these States. Indeed! I will venture to predict, that notwithstanding the delays which may rise, from the opposition of ignorant and designing men, that the good sense of our legislature, will eventually triumph; and prove to the world, by the general adoption of your plan, that justice is as well practised, as understood, in America.
After having clearly proved it both just and politic to fund the debts of the General and State governments of America, you proceed to offer to the consideration of the legislature, such propositions as will not only prove honorable and safe for the Public, but sufficiently tempting to induce a general acceptation by the creditors especially that portion to be denominated the enlightened & discriminating.
Tho’ the success of this part of the plan, will most probably, in the event, be as compleat, as of that which depends on the decision of the legislature; yet the progress of it may be so slow, as in a great measure to defeat one of the most desireable objects in view, namely, to prevent as much as possible, foreign speculators entering the markett, but at a fair and just price, relatively to the interests of this country.
It must be granted by every reasonable and considerate mind, that each dollar in the hundred which the American funds sell for to foreigners, less than their nominal value, is that proportion of loss to this country; and therefore it will follow as the true policy of the United States that every effort be made, to excite the price up to that standard; and in order to produce this effect, in the most speedy and certain manner, it will be prudent that preparation be made by government, to enter the market, as a purchaser, with vigorous and active means. That this is a measure you contemplate as an important one, is evident from your proposals for the combined loan of ten millions of dollars, specie and debt; and that for twelve millions of specie, the possession of which, from the success of either, will furnish to government the opportunity of raising the credit of America to a level at least, with that of any nations of Europe.
The immediate want of that active engine, money, is the only impediment to the rapid appreciation of our funds; and this want must long be felt, from the natural and slow progress of any funding plan in a government so entirely republican as ours; and where each member of the legislature, is either authorized, or imagines himself qualified, not only to discuss the subject, but to offer measures, better adapted to the ability and honor of the country, than any which can possibly originate from others.
To remedy this evil of delay, as much as possible it would be well perhaps if proposals were ready the moment the system should be established, or as soon after as practicable, offering, to the Commissioners or other authorized persons on the part of the United States, loans of specific sums in specie, and in specie and domestic debt combined, on certain terms and within the authority vested by the United States. In such case foreign speculators would be, in a manner, precluded the market, until it became good policy to admit them; which must be at the time of the market and nominal price being nearly equal; and which, necessarily would happen, at the discretion of government, they entering the market full-handed before foreigners could act, by having prepared to operate on given principles, at the moment of legislative decision.
Should it be admitted, that a plan of the sort suggested would be eligible, it now remains to point out the means of effecting it; and which will be found to be exhibited in paper No. 1 annexed hereto.
The reasons why it is proposed that the limited sum of ten millions of dollars, should be extended, vested in Commissioners, and the interest made payable either in Europe or America at the discretion of the Commissioners, as may be found most advantageous to the interest of Ama. to form the engagements, are as follows.
First—If the sum is extended beyond the ten millions it will hold up an idea, and very justly, to the Citizens of America, that foreigners will seize the opportunity to become stock-holders, for the whole amount, and therefore that an increased demand will ensue. Of course the price will enhance from the temporary with-holding, which must follow; or from a prudential conduct in the new lenders to become possessed as soon & as certainly as possible, of the sums they may have engaged to deliver. But on the other hand if no more than ten millions of dollars, is the sum proposed, it will be understood to embrace about the amount already in the hands of foreigners, and of course that any new purchases by the Europeans, will be at limited prices, and merely on speculation, as they can be under no necessity to buy in order to fulfil engagements made with the United-States.
Second—If the power of making the negotiation is vested in commissioners, the treaty will be short, the sums agreed for, most probably large, and the supply of the money to the United States, certain and speedy. On the part of the United States, there can be no objection to this measure, because the power vested by them, will be a limited discretion. If I may so term it—limited as to what they may have right to do, and discretionary as to what may be proposed by the lenders within that power.
Third—If the interest is made payable, or a power granted to agree to pay it, in Europe, it will more immediately meet the views of European lenders who are unaccustomed to look abroad for their annual interest. For if engagements are not made with them, to pay interest at their doors, still it is virtually the same thing, as long as they can, by the facility of exchange, calculate with certainty to receive their interest at stated periods, without the contingencies of winds & waves, and farther negotiation.
To this measure, there is an equal inducement to the lender and the borrower. The latter receives as an equivalent for paying interest in Europe 11¹⁄₉ ⅌ Ct. difference between the 5 ⅌ Ct. payable in Ama. and 4½ ⅌ Ct. proposed to be paid in Europe. The former by having the interest paid at his door, has the power of selling his stock, or share of the loan, as readily as an action on any European loan, the security between that and the American loan, with other inducements, being equal.
At the expiration of the time, for which a loan may be made, it may become inconvenient either for the borrower to pay off, or the lender to reloan—and as the money lenders of Europe, will never agree to have their money, re-imbursed or not, at given periods; or that annual instalments be paid, or not, at the option of the borrowers; but on the contrary will demand explicit engagements, so therefore the optional instalments of 1 ⅌ Ct., held up in the proposal for borrowing ten millions of dollars, half specie and half debt, may appear exceptionable. In order to obviate this difficulty as well as to induce the United States to the measure, an annual instalment of 1½ ⅌ Ct. is proposed to be paid by positive stipulation; which with 4½ ⅌ Ct. interest will not require a larger annual sum, than is proposed by the ten million plan; provided the one ⅌ Ct. ann: instalment, thereby proposed should be paid; and which in all events must be calculated for, in forming an adequate revenue system.
The inducement to the United States is that 6 ⅌ Ct. annually from their treasury, regularly appropriated, will extinguish the amount borrowed, in about thirty two years.
If I mistake not, the most stubborn obstacles to your plan, will be found to be, in general, the idea of perpetual burthen on the country and that no positive engagements are proposed, for the final extinction of the debts; except in the self-extinguishing plans, of the life annuities and tontine, both which, however, should they prove acceptable to that certain class of stock holders to which they are peculiarly applicable can afford but very feeble assistance to the great and leading objects in view.
It is with reluctance, that I submit to doctrines teeming with mischief to the executive branch of our government; but there is no other mode of combating their most destructive effects, but by being willing to provide for that, which never will, most probably, and perhaps never ought to happen namely, total payment of our Public-debt, the great cement of interest between the Public and the individuals which compose it.
If the question is deliberately considered it will be found that powerful and vigorous executives are less dangerous to the liberties of the people in limited governments, than those of a tone more feeble; because, the line being drawn where the jealousy of the people begins to be excited, that vigilant principle will ever prove the best safeguard against encroachments. On the other hand, where perfect security is imagined, and nothing to be apprehended, the fairest opportunity of surprize and advantage presents.
If this reasoning is just, it becomes good policy to strengthen the executive arm; and which cannot be effected by any means so certain, and gently diffusive, as that of collecting efficient revenue. Hence the impolicy of paying the principal of national debts, beyond that certain point, which not burthensome, becomes a stimulant to industry and commerce, and a gentle compulsion to the Citizens of a country, to pay that homage and respect to government, which is really necessary to its existence!
In a country so extensive as ours border’d by hostile tribes of Indians on the one side; and by Jealous and ambitious powers at each extreme it will most probably be found impracticable to avoid Public debt. As we encrease in population and revenue, new sources of expenditure will arise in equal proportion; as well from the necessary encouragement to Agriculture, commerce, and the Arts as from many other national and important causes; so that what in sound policy may be termed the evil of being out of debt, cannot be apprehended by America.
An additional inducement to the plan now submitted to you, will be the actual acquisition to these States of a large capital in specie, which will not only prevent the loss and expence of negotiating bills of exchange, if found even at any rate practicable but will restore in a great measure that equilibrium between current money, and the articles it represents in this country, which has so long ceased to exist; & the want of which has been so injurious to the great community of America. It will be an immediate means in the hands of government of establishing a national coinage, and which may be so calculated as to prevent in future the evil which arises from exporting specie.
And here it may not be improper to observe that thro’ the operation of a National bank, the capital sum obtained by the proposed loan, will give currency to three times its amount, in bank notes, and which, as they will in effect, be the payment from foreigners for the domestic debt they purchase of us, must prove a valuable consideration, the amount being larger, and the property more active and negotiable.
The value or rate at which the gold and silver is proposed to be received into the treasury of the United-States, may be varied and determined by some just standard, between their current prices in Europe and America; but at present it is necessary to form some data, in order to find aggregate sums, which is the reason why specific rates have been set down.
In conformity to your plan for borrowing twelve millions of dollars, in order to pay off such parts of the foreign loans as bear an interest of 5 ⅌ Ct. as well as the instalments and interest that will be due at the end of the year 1790; and to co-operate with other means for the establishment of a National bank; It is proposed that what is termed the Royal French loan, consisting of twenty four millions of livres may be considered as so much specie subscription to the new loan; the priviledge of doing which will most probably induce an equal amount in actual money in addition.
The United States will derive the benefit of hlf ⅌ Cent. ⅌ Ann., remission of interest, and the immediate relief from a heavy sum due on demand and for the payment of which they are momently liable to be called on.
The whole amount of the new loan, now proposed, is thirty four millions of Dollars at 4½ ⅌ Ct. interest and one & one hlf ⅌ Cent. annual instalment; which for thirty two years would require annually two millions and forty thousand Dollars. This Sum together with the residuary parts of the Foreign and domestic debt, stating them at ten millions of dollars at 4 ⅌ Ct. interest, and the annual current services, would demand annually three millions and forty thousand dollars.
The difference between this sum and the provision to be made by your estimate is 200.837(Dolls).81(cents)—a sum in itself trifling, and when compared to the object in view, namely the extinction of so large a portion of the debts of the United-States, not worthy the objection of any sensible man, or real friend to his country.

In paper No. 2. is exhibited a statement of the aggregate debt, as ⅌ your report, and the situation in which it will be when changed to what the proposed operation, will give the power of doing.
There are sufficient inducements connected with a good management of the french debt and in the purchase of the domestic debt, to incite the first houses in Europe to undertake the whole of the proposed amount, or at least so much of it, as would excite rivalship in the present European holders, of the American debt; and tend to alarm them into a compliance with your views of reloaning what they possess, combining an equal amount in specie.
There now remains an objection to combat, which will present itself with some plea of reason, namely, that by converting so large a part of the domestic debt into foreign, as is proposed, it will constitute the necessity of larger annual remittances to Europe than America can endure. But in answer, as the saving proposed is 11¹⁄₉ ⅌ Ct on the amount of annual interest, any rise in bills of exchange, within that amount, is provided for and when it is taken into consideration that as well from the migrations from Europe, as from the probable increase of commercial advantages in consequence of the immense increase of capital, the balance of trade in favour of this country must grow in proportion, the substance of the objection must in a great measure vanish.
Another consideration should be, that, as by this creation of wealth to America, its inhabitants will become enriched, so in any future exigence, there will be no necessity to demand on Europe for supplies of money on loan.
If what I have said should appear connected with an intention to invade your plan; or with the presumption to offer one of my own; I pray you to be assured, that no ideas of the sort, have ever suggested themselves to me; and that on the contrary, were my sentiments of your report, to be expressed corresponding with the impression it has made on my mind, you would conclude me weak enough to attempt your good opinion thro’ the path of flattery!
Desiring most ardently! the happiness & aggrandizement of my country, I confess myself ambitious enough, to wish some Agency, in the promotion and accomplishment of these objects; but at the same time, if not blinded by self-love I would not accept of any situation, or pursue any measures, that did not combine those objects, however advantageous to myself!
I will now conclude by observing, if it should not appear to you incompatible with the interest and dignity of America, to adopt ideas similar to what are submitted, and to employ a person to procure consonant, or more advantageous, proposals that I should consider myself very fortunate in the appointment, whether official or from your private capacity. I am so confident of being able to succeed that if it is requested, I will go to Europe on the business by the March packett, at my own expence, and engage to return, if my life and health should continue, with[in] six months, at farthest, from this time, calculating common passages; or if it should be deemed proper for me to remain, will within that period, transmit the issue of my mission; & which I doubt not will be successful and satisfactory!
If I express myself, at any time, in too bold and aspiring a manner, I pray you to ascribe it to a desire of becoming serviceable to my country under your patronage; and to be assured, that in no event, I can feel myself other than,
Sir!   Your very Respectful! & Obedient Servant.
James Jarvis