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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.

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to william seton
(Private.)

  • Philadelphia,

The post of to-day brought me a letter from you. I am pained beyond expression at the picture you and others give me of the situation of my fellowcitizens, especially as an ignorance of the extent of the disorder renders it impossible to judge whether any adequate remedy can be applied.

You may apply another 50,000 dollars to purchases at such a time as you judge it can be rendered most useful. The prices may be 20s. for 6 per cents., 12s. for 3 per cents., and 12s. 6d. for deferred. The law and the object require that it should be known you purchase for the public. I shall by the next post send an official authorization.

I have doubt, however, whether it will be best to apply this immediately or wait the happening of the crisis, which I fear is inevitable. If, as is represented, a pretty extensive explosion is to take place, the depression of the funds at such a moment will be in the extreme, and then it may be more important than now to enter the market in force. I can in such a a case without difficulty add a hundred thousand dollars—probably a larger sum. But you, who are on the spot, being best able to calculate consequences, I leave the proper moment of operating to your judgment. To relieve the distressed and support the funds are primary objects. As it may possibly become advisable for the bank to receive payments in stock from embarrassed persons, it may not be amiss that you should know as a guide that there are at this moment orders from a respectable Dutch concern to purchase 6 per cents. at 24s. if bills can be sold at par; of this I have the most unequivocal evidence. This is a proof that foreigners will be willing to give that price. How vexatious that imprudent speculations of individuals should lead to an alienation of the national property at such under-rates as are now given! I presume your greatest embarrassments arise from the contracts to pay and deliver not yet at issue. Is it possible to form any conjecture of their extent?