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Subject Area: Economics
Subject Area: Political Theory

GALLATIN TO JEFFERSON. 1 - Albert Gallatin, The Writings of Albert Gallatin, vol. 1 [1879]

Edition used:

The Writings of Albert Gallatin, ed. Henry Adams (Philadelphia: J.B. Lippincott, 1879). 3 vols.

Part of: The Writings of Albert Gallatin, 3 vols.

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GALLATIN TO JEFFERSON.1

Department of the Treasury, December 13, 1803.

Dear Sir,—

Wherever our moneys may be deposited, the Treasurer’s draft for the same has the same credit as any bank-note, and the circulation of those drafts would be more extensive than now, if they were, like bank-notes, payable to bearer. Unless, however, we wanted, which we do not, to issue exchequer bills or paper money of some description or another, it never will happen that our drafts shall be issued except in payment of a demand, and made payable to the person whose demand is thus discharged. The great advantages we derive from banks, and especially from the Bank of the United States, are:

1st. A safe place of deposit for the public moneys.

2d. The instantaneous transmission of such moneys from any one part of the continent to another, the bank giving us immediately credit at New York, if we want it, for any sum we may have at Savannah, or at any other of their offices, and vice versa.

3d. The great facility which an increased circulation and discounts give to the collection of the revenue.

For these reasons I am extremely anxious to see a bank at New Orleans; considering the distance of that place, our own security and even that of the collector will be eminently promoted, and the transmission of moneys arising both from the impost and sales of lands in the Mississippi Territory would without it be a very difficult and sometimes dangerous operation.

Against this there are none but political objections, and those will lose much of their force when the little injury they can do us and the dependence in which they are on government are duly estimated. They may vote as they please and take their own papers, but they are formidable only as individuals and as merchants, and not as bankers. Whenever they shall appear to be really dangerous, they are completely in our power and may be crushed.

As to the answer to the letter, I agree fully with you, and intended only to give a civil answer, without committing us on the question of expediency. It shall be altered so as to answer that object.

What must be done with the New Orleans hospital, and Dr. Bache’s indirect application for increase of salary? One thousand dollars is fully sufficient; we give no more anywhere else.

With sincere respect and attachment, your obedient servant.

GALLATIN TO JEFFERSON.

Department Treasury, January 11, 1804.

Dear Sir,—

Mr. Baring has concluded, notwithstanding Mr. Pichon’s entreaties, not to take the stock till we shall have heard from New Orleans. He urges that it is not just that the risk, however improbable the event, of our not obtaining possession should fall on him, which he says would be the case if he gave a receipt for the stock before we knew that we have possession. I offered to give him the certificates leaving the date of interest in blank, we agreeing merely that it should be filled with the day of taking possession whenever known; and I told him that next week, being the last of the three months, I would insist on his taking the stock, and on his refusal would deliver it to Mr. Pichon. He says that in that case he will take it, as our forcing it upon him will be a pledge of our obligation to pay even if we should not obtain possession.

As Mr. Pichon is much disappointed, I beg that the moment you may hear from New Orleans you will have the goodness to drop me a line stating the day when possession was obtained.

Respectfully, your most obedient servant.

Wednesday.

It was agreed by Mr. Pichon, in the course of the conversation, that our delivery of the stock would be a nullity in case of our not obtaining possession, as the United States were not bound by the treaty to pay if France did not comply with the treaty.

[1 ]See the letter to which this is in reply, in Jefferson’s Writings, iv. 518.