Econlib

The Library

Other Sites

 Front Page arrow Titles (by Subject) arrow to william seton (Private) - 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 william seton (Private) - 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 william seton
(Private)

  • Philadelphia,

March 25, 1792.

If six per cents. should sink below par, you may purchase on account of the United States at par to the extent of fifty thousand dollars. You will not, however, declare on whose account you act, because, though there is, as to a purchase on that principle, no difference of opinion among the trustees, the thing is not formally arranged, and this is Sunday.

It will be very probably, conjectured that you appear for the public, and the conjecture may be left to have its course, but without confession. The purchase ought, in the present state of things, to be at auction, and not till to-morrow evening. But if the purchase at auction will not tend as well to the purpose of relief as a different mode, it may be departed from; the usual note must be made of persons, time, etc. You will consider whether done all at once, or a part now and a part then, will best answer the purpose; in the state of this market the latter mode is found preferable. I have just received a letter from Mr. Short, our minister resident, dated Amsterdam, 28th December, by which he informs me that he has effected a loan for three millions of florins at four per cent. interest, on account of the United States. This may be announced; and as, in the present moment of suspicion, some minds may be disposed to consider the thing as a mere expedient to support the stocks, I pledge my honor for its exact truth. Why then so much despondency among the holders of our stock? When foreigners lend the United States at four per cent., will they not purchase here upon a similar scale, making reasonable allowance for expense of agency, etc.? Why then do individuals part with so good a property so much below its value? Does Duer’s failure affect the solidity of the government?

After paying the present quarter’s interest I shall have near a million dollars in cash, and a million more in bonds from the duties of last year. All this is truly so much beforehand. The duties for the current year being fully adequate to the objects of the year, except the further sum of about five hundred thousand dollars for the western expedition, for which the ways and means have been proposed. Is the treasury of Great Britain comparatively in so good a state? Is the nation comparatively so equal to its debt? Why then so much depression? I shall be answered, The immediate necessity for money. But if the banks are forbearing as to the necessity of paying up, cannot the parties give each other mutual credit and avoid so great a press? If there are a few harpies who will not concur in this forbearance, let such be paid and execrated, and let others forbear. The necessity of great sacrifices among your dealers cannot affect the nation, but it may deeply wound the city of New York by a transfer to foreigners and citizens of other States of a large mass of property greatly below its value. The face of your affairs may undergo for a considerable time a serious change. Would not the plan I suggested to you in my last be a means of securing more effectually the debts due to the bank by accepting in part payment the credits on your books?

While I encourage due exertion in the banks, I observe that I hope they will put nothing to risk. No calamity truly public can happen while these institutions remain sound. They must, therefore, not yield too far to the impulse of circumstances.