Econlib

The Library

Other Sites

 Front Page arrow Titles (by Subject) arrow to rufus ring - The Works of Alexander Hamilton, (Federal Edition), vol. 9

Return to Title Page for The Works of Alexander Hamilton, (Federal Edition), vol. 9

Search this Title:

Also in the Library:

Subject Area: Economics
Subject Area: Political Theory
Topic: The American Revolution and Constitution

to rufus ring - Alexander Hamilton, The Works of Alexander Hamilton, (Federal Edition), vol. 9 [1774]

Edition used:

The Works of Alexander Hamilton, ed. Henry Cabot Lodge (Federal Edition) (New York: G.P. Putnam’s Sons, 1904). In 12 vols. Vol. 9.

Part of: The Works of Alexander Hamilton, (Federal Edition), 12 vols.

About Liberty Fund:

Liberty Fund, Inc. is a private, educational foundation established to encourage the study of the ideal of a society of free and responsible individuals.


to rufus ring

August 7, 1791.

Your letter of Monday evening has a good deal tranquillized me. I am glad to learn that the mischiefs from the over-use of scrip are not likely to be very extensive.

I observe what you say respecting the quotation of my opinion. I was not unaware of the delicacy of giving any, and was sufficiently reserved until I perceived the extreme to which bank scrip, and with it other stock, was tending. But when I saw this I thought it advisable to speak out—for a bubble connected with any operation is, of all the enemies I have to fear, in my judgment the most formidable; and not only not to promote, but, as far as depends on me, to counteract, delusions, appears to me to be the only secure foundation on which to stand. I thought it expedient, therefore, to risk some thing in contributing to dissolve the charm. But I find that I have been misquoted. Speaking of sales on time at seventy-four shillings for 6 per cent., etc., I think it probable I may have intimated an opinion that they went faster than could be supported. But it is untrue that I have given as a standard prices below those of the market, as mentioned by you. On the contrary, my standard, on pretty mature reflection, has been and is nearly as follows:

Forbank scrip.....195
6 per cents.....22
3 per cents.....12
Deferred.....128

I proceed on the idea of 5 per cent. interest—taking at the same time into calculation the partial irredeemability of the 6 per cents.

I give you my standard, that you may be able if necessary to contradict insinuations of an estimation on my part short of that standard—for the purpose of depressing the funds.