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

to oliver wolcott - Alexander Hamilton, The Works of Alexander Hamilton, (Federal Edition), vol. 10 [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. 10.

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

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to oliver wolcott

  • New York,

Aug. 22, 1798.

My Dear Sir:

No one knows better than yourself how difficult and oppressive is the collection even of taxes very moderate in their amount, if there be a defective circulation. According to all the phenomena which fall under my notice, this is our case in the interior parts of the country.

Again, individual capitalists, and consequently the facility of direct loans, are not very extensive in the United States. The banks can only go a certain length, and must not be forced. Yet government will stand in need of large anticipations.

For these and other reasons which I have thought well of, I have come to a conclusion that our Treasury ought to raise up a circulation of its own. I mean by the issuing of Treasury-notes payable, some on demand, others at different periods, from very short to pretty considerable—at first having but little time to run.

This appears to me an expedient equally necessary to keep the circulation full and to facilitate the anticipations which government will certainly need. By beginning early the public eye will be familiarized, and as emergencies press it will be easy to enlarge without hazard to credit.

Think well of this suggestion, and do not discard it without perceiving well a better substitute.