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Subject Area: Economics
Subject Area: Political Theory

MADISON TO GALLATIN. - 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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MADISON TO GALLATIN.

Montpelier, August 14, 1810.

Dear Sir,—

I understand that the measures taking by the Bank of the United States for provisionally winding up its affairs are likely to bear hard on the other banks, and that the evil will be increased by the drain on the latter for paying the bonds as they become due in the hands of the former. Would not some remedy be afforded by a distributive transfer (which would also have provisional reference to the fate of the Bank of the United States) of the public money from its present vaults to those of State banks? In that case the sum locked up in the Bank of the United States would be limited to its ten millions, and the State banks be, at the same time, aided in discounting for persons whose discounts are curtailed elsewhere. It is not difficult to foresee the impressions that will be made if, in addition to the general embarrassment resulting to the moneyed interest from the bank operations, they should be chargeable with checking enterprise in purchasing and exporting the produce of the farmers and planters. How far was the aid given the Manhattan Bank a precedent for the course here suggested?

The unsigned letter from New York is enclosed, as well to have your assistance in ascertaining the writer as your advice on the merits of the case.

I have received your favor on the subject of my nephew Macon, but have not yet received the final determination of his father, who is at present absent, as well as his son.

Mr. Jefferson left me this morning, with a request that I would forward to you a paper he has drawn up on the case of the Batture. It will go by the next mail.

As you have seen Irvine, I presume you have gathered the amount of P.’s despatches, and more too. It appears that on the 13th of June no answer had been given to the question whether a repeal of the primitive blockade was objected to; nor any formal offer made of reparation for the attack on the Chesapeake. It was inferred, however, the offer was intended.

Mrs. M. sends her best regards to Mrs. Gallatin. Be pleased to add mine, and to be assured of my affectionate respects.