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Subject Area: Economics
Subject Area: Political Theory

GALLATIN TO JEFFERSON. - 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.

Treasury Department, 23d April, 1805.

Dear Sir,—

I enclose the sketch of an Act for organizing the new district of Sacket Harbor, in conformity with the Act of 3d March, 1803 (6th vol. p. 273). If you approve of the form and division, a fair copy shall be prepared for your signature.

Pierce’s plan of a depreciating paper is returned. Herman Husband, the Pennsylvania madman, proposed a similar one to the Legislature of that State in the year 1779; only his paper, instead of depreciating at a regular rate each time it passed in the hands of another man, was to depreciate, instead of bearing interest, regularly every day so as to be worth nothing at the end of three years. Pierce’s paper is to be worth nothing when it shall have passed through the hands of ten persons. It is evident that such paper, without the assistance of severe tender laws, will be worth nothing from the day it is issued. But, supposing such laws to exist and to be enforced, what do such plans amount to? If the depreciation is very gradual, say one per cent., or one per thousand, instead of ten per cent. on each payment, it is perfectly similar to a stamp duty on receipts, notes, &c. If the depreciation be at the rate of ten per cent., as suggested by Pierce, it is the Spanish alcabala.

With great respect, your obedient servant.