Not only the
grounds of them are vague and uncertain, and it would be
the extremity of folly to abandon an indispensable resource
for continuing the war, because there was a possibility of
its being ended.
grounds of them are vague and uncertain, and it would be
the extremity of folly to abandon an indispensable resource
for continuing the war, because there was a possibility of
its being ended.
Hamilton - 1834 - Life on Hamilton - v1
net/2027/uva.
x000275470 Public Domain, Google-digitized / http://www.
hathitrust.
org/access_use#pd-google
? HAMILTON. 409
whose office itself was an object of the most jealous repug-
nance. *
To overcome these difficulties was an herculean task;
but he engaged in it with all his characteristic patience of
investigation. Though the evils were too extensive, and
laid too deep to be reached by any other means than a total
change of system, yet he hoped, by scrutinizing the whole
train of abuses, such data might be obtained as would ena-
ble the office of finance to apply efficient remedies, and gra-
dually to infuse such opinions as would convince the state
of its errors, and induce a radical change of policy.
During the interval of the appointment and meeting of the
committee, he was constantly engaged in extensive corres-
pondences throughout the state; in circulars to the county
treasurers, to ascertain the receipts and expenses of collec-
tion ; in communications with the army contractors, Messrs.
Duer and Sands, to learn the amount of expenditures and
the quantity of specie, and to promote the circulation and
increase the value of the notes of the financier and of the
bank, and in devising means to defer and lighten the de-
mands on the general treasury.
While thus employed in fulfilling the calls of the finan-
cier, he used the estimate which he obtained, (the incom-
pleteness of which he laments,) as a basis for digesting a
new plan of state taxation, which he proposed to submit to
the legislature.
The rule adopted in the confederation, after much angry
discussion, for fixing the quota of each state, had proved a
source of great delay and controversy. The valuation of
land which it prescribed, had been found impracticable, and
congress had been compelled to adhere to the original sys-
tem of requisitions, on the basis of the population, as com-
* From an entry in the diary of Mr. Morris, it appears that as late as the
twenty-ninth of August, 1782, a committee of inquiry, appointed by congress,
questioned his reasons for appointing continental receivers.
vol. i. 52
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? 410 THE LIFE OF
puted in seventeen hundred and seventy-five. Each state
took advantage of the inaccuracy of this enumeration, and
found a ready excuse for the deficiency of their supplies in
the incorrectness of the estimate.
To avoid this difficulty, and at the same time to extend
the system of taxation as far as was possible, in order to meet
the demands of the public, Hamilton framed anelaborate bill,
in which, agreeably to a resolution of congress of the prece-
ding February, and to the report of the financier, he proposed
to abolish the method which existed, of taxing by arbitrary
quotas and assessments, -- a source of the greatest injustice
and inequality, -- and substituting for it a system of specific
taxation on lands, distinguished by their character, as mea-
dow or arable; on salt by the bushel; on tobacco by the
pound; on carriages. ; plate; on licenses of various kinds;
on menial servants; on houses; and a rate of specific du-
ties on imports.
The bill embraces a very minute and systematic scheme
to render the assessment and collection easy and secure; and
with a view to prevent the confusion and neglect which had
resulted from the proceeds of the taxes being thrown into
a general mass, he suggested the appropriation of them to
various objects; that upon land, to the support of the inter-
nal government; on carriages, to the judicial establishment;
the house tax to congress, for supplementary funds; the
salt, license, and tobacco tax, for constituting a loan office,
which seems to have been connected with the incorporation
of a bank, of which a portion of the income was to be secu-
red to that office. * The surplus of these taxes, and all
others, to form an aggregate fund for contingencies, to sup-
* A plan for a state bank and state loan office, is found among the papers,
which contemplated one state bank to control the currency ; -- the general
banking to be conducted by private bankers. It is not in Hamilton's hand-
writing, and some features of the plan fender it probable that it was a project
submitted for his consideration, but which he could not have approved.
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? HAMILTON. 411
ply the Federal treasury. A plan of a lottery was also at
this time devised by him, containing many ingenious sug-
gestions, and evincing singular care to prevent frauds, from
which a considerable sum was hoped to be derived in aid
of the finances; -- a mode of taxation which had been pro-
posed by a committee of congress in seventeen hundred and
eighty; but which the enlightened sentiment of the present
age has ceased to approve.
Having obtained a license as an attorney in July, he,
notwithstanding his public duties, continued to prosecute
his legal studies, in order to prepare for admission to the
bar as a counsellor, at the ensuing October term of the Su-
preme Court. A letter to his friend Meade, shows his views
on this subject, and gives a pleasing exhibition of his do-
mestic feelings.
HAMILTON TO MEADE.
Albany, August 27th, 1782.
I thank you, my dear Meade, for your letter of the first
of this month, which you will perceive has travelled much
faster than has been usual with our letters. Our corres-
pondence hitherto has been unfortunate,' nor in fact can
either of us compliment himself on his punctuality; but you
were right in concluding, that however indolence or acci-
dent may interrupt our intercourse, (nothing will interrupt
our friendship. Mine for you is built on the solid basis of
a full conviction that you deserve it, and that it is recipro-
cal, and it is the more firmly fixed, because you have few
competitors. Experience is a continued comment on the
worthlessness of the human race, and the few exceptions
we find, have the greater right to be valued in proportion as
they are rare. \J know few men estimable, -- fewer amia-
ble, and when I meet with one of the last description, it is
not in my power to withhold my affectionjl
You reproach me with not having said enough about our
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? 412 TUK LIFE OF
little stranger. When I wrote last, I was not sufficiently
acquainted with him to give you his character. I may now
assure you, that your daughter, when she sees him, will not
consult you about the choice, or will only do it in respect
to the rules of decorum. He is truly a very fine young gen-
tleman, the most agreeable in his conversation and manners
of any I ever knew, nor less remarkable for his intelligence
and sweetness of temper. You are not to imagine, by my
beginning with his mental qualifications, that he is defect-
ive in personal. It is agreed, on all hands, that he is hand-
some; his features are good, his eye is not only sprightly
and expressive, but it is full of benignity. His attitude, in
sitting is, by connoisseurs, esteemed graceful, and he has a
method of waving his hand that announces the future ora-
tor. He stands, however, rather awkwardly, and as his
legs have not all the delicate shmness of his father's, it is
feared he may never excel as much in dancing, which is
probably the only accomplishment in which he will not be
a model. If he has any fault in manners, he laughs too
much. He has now passed his seventh month.
I am glad to find your prospect of being settled ap-
proaches. I am sure you will realize all the happiness you
promise yourself with your amiable partner. I wish fortune
had not cast our lots at such a distance. Mrs. Meade, you,
Betsey, and myself," would make a most affectionate and
most happy partie quarre.
As to myself, I shall sit down in New-York, when it
opens, and the period we are told approaches. No man
looks forward to a peace with more pleasure than I do,
though no man would sacrifice less to it than myself', if I
were not convinced the people sigh for peace. I have been
studying the law for some months, and Ijave lately been
licensed as an attorney. I wish to prepare myself by Octo-
ber for examujation as a counsellor, but some public avoca-
tions may possibly prevent me.
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? HAMILTON. 413
I had almost forgotten to tell you, that I have been pretty
unanimously elected by the legislature of this state, a mem-
ber of congress, to begin to serve in November. I do not
hope to reform the state, although I shall endeavour to do
all the good I can.
Suffer Betsey and me to present our love to Mrs. Meade.
She has a sisterly affection for you. My respects, if you
please, to Mr. and Mrs. Fitzhugh. God bless you.
A. Hamilton.
The committee of the legislature, of which he speaks in
his letter to Mr. Morris, met on the fifteenth of September,
and notwithstanding his labour in devising a system of taxa-
tion, such were his doubts of the tone of the public, that in
a letter written to Mr. Morris on the evening prior to their
meeting, he says, " I am at a loss to know whether I ought
to press the establishment of permanent funds or not, though
unless I receive your instructions, following my own appre-
hensions of what are probably your views, I shall dwell
upon this article. "
On the fifth of October, he writes as follows: "In my
last I informed you that the committee appointed by the
legislature on the subject of taxation were together.
"In spite of my efforts, they have parted without doing
any thing decisive. They have, indeed, agreed on several
matters, and those of importance, but they have not redu-
ced them to the form of a report, which, in fact, leaves
every thing afloat, to be governed by the impressions of the
moment, when the legislature meet.
"The points agreed upon are these: that there shall
be an actual valuation of land, and a tax of so much on the
pound. The great diversity in the quality of land, would
not suffer them to listen to an estimated valuation, or to a
tax by the quantity, agreeable to the idea in your late re-
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? 414 THE LIFE OF
port to congress, that there shall be also a tariff of all per-
sonal property, to be also taxed at so much on the pound.
"That there shall be a specific tax on carriages, clocks,
watches, and other similar articles of luxury: That money
at usury shall be taxed at a fixed rate in the pound, exclu-
ding that which is loaned to the public: That houses in
all towns shall be taxed at a certain proportion of the an-
nual rent: That there shall be a poll tax on all single men
from fifteen upwards; and that the collection of the taxes
should be advertised to the lowest bidder, at a fixed rate
per cent. , barring all subordinate expenses.
"Among other things which were rejected, I pressed
hard for an excise on distilled liquors, but all that could be
carried in this article was a license on taverns.
"The committee were pretty generally of opinion, that
the system of funding, for payment of old debts, and for
procuring farther credit was wise and indispensable; but a
majority thought it would be unwise in one state to contri-
bute in this way alone.
"Nothing was decided on the question of taxes, which
the state was able to pay; those who went farthest did not
exceed seventy thousand pounds, of which fifty were for
the use of the United States. "
An interesting correspondence continued between Mor-
ris and Hamilton, in which the various measures for prop-
ping up the credit of the financier, and introducing his notes
into extensive circulation, as a common currency, are dis-
cussed. In one of these, Hamilton speaks of an address of
the public creditors in Albany to those of the whole United
States, as having originated with himself, and containing
ideas which ought to prevail.
The suspension of interest on the loan office certificates
issued at an early stage of the revolution, had produced
great distress and discontent among the holders, the greater
number of whom resided in Philadelphia. After frequent
-\
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? HAMILTON. 415
consultation, a numerous meeting was convened in that
city, and strong resolutions adopted, urging upon congress
the necessity of granting them immediate relief. On the
appearance of this document, Hamilton conceived the idea
that a powerful influence might be exercised upon the mea-
sures of congress by the co-operation of the creditors in
other states, and with this view a meeting was held at Al-
bany, where General Schuyler presided, at which was pro-
posed a convention of county delegates at Poughkeepsie,
and a state delegation to a general convention at Philadel-
phia, from which he hoped incipient steps might be taken
for the adoption of his favourite measure, -- a re-organiza-
tion of the general government. These resolutions were
accompanied by the following address, urging the establish-
ment of permanent funds.
"TO THE PUBLIC CREDITORS OF THE STATE OF
NEW-YORK. "
The appellation by which we have chosen to address you,
indicates at once the broad and equitable basis upon which
we wish to unite the influence and efforts of those who are
creditors of the public, to obtain that justice, which the ne-
cessities of many, and the rights of all demand. What-
ever distinctions may characterize the different classes of
creditors, either of the United States, or of" this state, --
whatever may be their different degrees of merit as pa-
triots, or their comparative claims upon the gratitude or
generosity of their country, in one circumstance they all
agree, -- they have an equal claim upon the justice and
plighted faith of the public.
Alarmed by the successive violations of public engage-
ments, and by that recent and distressing one, the with-
holding the interest hitherto paid by bills on France, upon
the monies loaned previous to first March, 1778, the public
creditors in this city have thought it necessary to follow
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? 410 THE h I IK OF
the example of those of the city of Philadelphia, and to
convene and consult upon the measures proper to be taken
for their own security. They will not dwell upon the
measure alluded to, farther than to observe, that its weight
is most oppressively felt by those whose zeal in the cause
and confidence in their country have been most conspi-
cuous; who in times of danger, have demonstrated their
concern for the common safety, by voluntary deposits, in
some instances of the whole, in others of a large part of
their fortunes in the public funds; and who now, many of
them at least, feel themselves reduced from affluence to
indigence, -- from circumstances of ease and plenty, to
penury and unaffected distress.
They cannot but add, that there are others, not less me-
ritorious, who have perhaps experienced even a worse fate;
those who, having made subsequent loans, have long since
seen the payment of interest cease, and those who, when
the distresses of the army have had no resource but in the
patriotism of individuals, have cheerfully parted with the
fruits of their industry, scarcely reserving a sufficiency for
the subsistence of their own families, without any compen-
sation since, besides the consciousness of having been the
benefactors of their country.
We entertain not so injurious an idea as lo imagine, that
levity or contempt of the obligations of national faith, or
of the dictates of policy, have influenced those infringe-
ments of the public engagements, which have too often
happened. We have been sensible of the necessity which
has, in some cases, produced them; but we apprehend it
to have resulted, not from the want of ability or means,
but from the want of a proper system for the beneficial
application of them. And we conceive it our duty to ac-
quiesce in that necessity, only so far as there appears to
be an unavoidable sacrifice to the urgent calls of particular
conjunctions, followed by effectual endeavours to prevent
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? HAMILTON. 41T
a continuance or return of the same necessity, or to make
satisfaction in some other way.
Few states have been without their vicissitudes, in which
the strict obligations of good faith have been obliged. to
bend to momentary necessities; but the example of all
wise and happy ones, combine with reason and justice to
establish this truth, that no time ought to be lost in pro-
viding the means of repairing those breaches, and making
compensation for the sufferers.
Unfortunately for us, and for every citizen of the United
States, (for the calamity directly or in its consequences is
general,) the same policy has been too long delayed in this
country; the only expedient in our power for effecting the
object, being still unattempted. We need no arguments to
convince us, that it is not possible for these states, by any
exertions they can make, to pay off at once the principal
of the public debts, and furnish the supplies for the cur-
rent demands of the war, and for the support of civil go-
vernment. We even think it as manifest as experience
and calculation can make it, that our abilities fall greatly
short even of the two latter objects. This, in an infant
country, will not surprise those who know that nations
the most opulent, and in all the vigour of maturity, are
compelled to have recourse to large loans in time of war,
to satisfy the public exigencies.
The quota of the present year has been fixed at eight
millions of dollars, which we are to consider as the sum
requisite for the annual expenditure; and those accustomed
to computations of such a nature, will be convinced that
to make this sum suffice, requires economy and good ma-
nagement. Have we a prospect of raising one third of
this sum within the states? Those who have attended to
the publications of the receipts on the continental account,
will easily answer the question for themselves. If this
vol. i. 53
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? 418 THE LIFE OF
must be in the negative, the inquiry then becomes, what
means have we to supply the deficiency?
Admit that there are defects in the system of taxation
in almost every state, and that more judgement and equali-
ty in the manner of laying them, mere energy and econo-
my in the collection, would be more productive to the re-
venue, and less burthensome to the people, still we cannot
imagine that the reformation of these defeets would aug-
ment the product of the taxes in any proportion to the de-
ficiency.
It is plain, therefore, that the principal part of the ba-
lance must be procured upon credit; nor is it less plain,
that this must chiefly be from individuals at home and
abroad. We are assured, that the situation of our allies
will not permit them to make us governmental loans, in
any proportion to our wants, and without this assurance,
we might have inferred it, from a consideration of the im-
mense land and naval establishments which they are
obliged to support in the prosecution of the war, on their
own part.
It may be asked, if such are the necessities of the pub-
lic, how are they to spare any part of their funds for the
payment of old debts? The answer is easy, -- those ne-
cessities can only be supplied by a sound and healthy state
of public credit, and there is only one way to effect the
restoration of this credit, -- the putting the old debts in a
course of redemption,, or at least securing the punctual pay-
ment of the interest, by substantial funds, permanently
pledged for that purpose.
It cannot be expected, that individuals in this country
will hereafter lend to the public, unless they perceive a dis-
position to do justice to its creditors. If, without providing
for those who have already risked their fortunes, securities
should be held out to invite future creditors, a suspicion of
their faithful application would deter every prudent man.
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? HAMILTON. 419
There must be a good opinion' of public faith, before there
can be a confidence in public securities; and this opinion
can only be created by unequivocal demonstrations of a
disposition to do justice; nor will any thing amount to a
proof of this, short of the measure on which we insist. In
common life, no credit would be given to any man who de-
parted from these principles, and the same rule is not less
applicable to nations.
If individuals among ourselves would not have the ne-
cessary confidence, it were chimerical to expect it from
foreigners. Such of them as, having been already adven-
turers in our funds, are holders of public certificates, would
have little encouragement to adventure farther.
No presumptions of the speedy termination of the war,
will invalidate the force of these reflections.
Not only the
grounds of them are vague and uncertain, and it would be
the extremity of folly to abandon an indispensable resource
for continuing the war, because there was a possibility of
its being ended. But the fullest assurance of the event,
would not take away this irresistible argument, that public
justice, and its inseparable companion, public credit, are
alike essential to the prosperity of a nation in peace and
war.
We scruple not to assert, that these states might, with
ease to themselves, provide the means requisite to fund the
debts already incurred, and to procure farther loans. A
moderate sum would be sufficient. It is an expedient
which we conceive besides calculated to lighten the bur-
thens of the people, and to increase their ability to bear
them. The more we can procure on credit, the less we
need exhaust ourselves in immediate taxation; and the pub-
lic creditors themselves will be enabled to bear a large
share of the future burthen, which will, of course, diminish
the contributions of others. We might expatiate on the
influence of public credit over private industry, and on its
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? 420 THE LIFE OF
tendency in that way to multiply the riches of the commu-
nity, and we might add, that the wheels of circulation and
commerce, now clogged by the want of an adequate me-
dium, would derive new motion and vivacity from the in-
crease of that medium, by rendering the public securities a
valuable negotiable property. We have indulged in these
reflections to show that patriotism, not less than necessity,
interest, and safety, prompt us to an emphatical appeal to the
justice and honour of our country.
What will be the condition of individuals, if a disregard
to the sanctity of public obligations should become the spi-
rit of the public councils? We indeed should be the imme-
diate victims, but who can answer when his turn might
come? It is true, those who are not already embarked,
may avoid hereafter becoming volunteers in their own ruin,
but can they guard against the pressing calls of necessity,
enforced by legislative coertions? Should we see a renew-
al of the distresses of the army, for want of subsistence,
must not the inhabitants of this state again feel the weight
of compulsory laws, and unless justice be done to the pre-
sent creditors, what hope can they have of recompense?
What, in short, will be the security of private property, if
the powers of government may be employed to take it from
us, and no provision hereafter made to render satisfaction?
A purity of faith has ever been the more peculiar attri-
bute of republics, the very being of which depends on vir-
tue in all, and a sacred regard to justice in those to whom
the administration of affairs is entrusted. A contrary dis-
position in these states, would be as novel as pernicious;
and we flatter ourselves, we never shall suffer such a stig-
ma to be fixed upon our national character, especially on
our first emerging into political existence.
The propriety of introducing at large such a document,
may, perhaps, be questioned; but, when it is remembered,
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? HAMILTON. 421
that the fate of the American union depended on the ful-
filment of its engagements; with what difficulty its discor-
dant members were induced to co-operate; and when we
view Hamilton as the great instrument in producing this
result; the knowledge of every circumstance which can
throw light on the state of public opinion; of every obsta-
cle which was encountered; and of every effort which was
made; becomes essential in enabling us to judge of the na-
ture and extent of his services.
There is another view, which has a deep and touching
interest. Amidst the glare of war, the civil sufferers of the
revolution have been little regarded; and the individu-
als who nerved the arm of the country with their wealth;
who parted with the fruits of their industry; who were re-
duced from affluence to indigence; who had none of the
quickening incentives of ambition to sustain them; whose
intelligence disclosed to them all the hazards they incurred;
and who leaned solely on an elevated and self-denying
patriotism, were often remembered only to be stigmatized.
They are brought before us here in person with all their
unrequited wrongs; standing before the altar of public
faith; claiming the fulfilment of its pledges for the sacri-
fices they had made; in the midst of them is seen Hamil-
ton, pleading in their behalf for that justice which, though
long delayed, it was reserved to his hand to administer.
Most of the letters which passed, at this time, between
the subject of this memoir and the Superintendent of Fi-
nance are lost, and it is the more to be regretted, as, from
the manner in which they are referred to, they appear to
have contained full views of the many difficult questions
which arose, connected with the restoration of public credit.
From those which remain, we may infer, how early ri-
pened were Hamilton's financial opinions, and may form a
partial judgement of the extraordinary difficulties, labours,
and capacity of Robert Morris, whose luminous views of
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? 422 THE LIFE OF HAMILTON.
the interests of the country, are only less remarkable than
the energy, firmness, and resource, with which he seemed
to have borne on his shoulders its tottering fortunes.
As the session of congress approached, Colonel Hamil-
ton urged the necessity of a successor being appointed;
and on the last day of October relinquished his office of
continental receiver, to commence the new and more im-
portant career which was opening before him.
END OF VOL. I.
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? HAMILTON. 409
whose office itself was an object of the most jealous repug-
nance. *
To overcome these difficulties was an herculean task;
but he engaged in it with all his characteristic patience of
investigation. Though the evils were too extensive, and
laid too deep to be reached by any other means than a total
change of system, yet he hoped, by scrutinizing the whole
train of abuses, such data might be obtained as would ena-
ble the office of finance to apply efficient remedies, and gra-
dually to infuse such opinions as would convince the state
of its errors, and induce a radical change of policy.
During the interval of the appointment and meeting of the
committee, he was constantly engaged in extensive corres-
pondences throughout the state; in circulars to the county
treasurers, to ascertain the receipts and expenses of collec-
tion ; in communications with the army contractors, Messrs.
Duer and Sands, to learn the amount of expenditures and
the quantity of specie, and to promote the circulation and
increase the value of the notes of the financier and of the
bank, and in devising means to defer and lighten the de-
mands on the general treasury.
While thus employed in fulfilling the calls of the finan-
cier, he used the estimate which he obtained, (the incom-
pleteness of which he laments,) as a basis for digesting a
new plan of state taxation, which he proposed to submit to
the legislature.
The rule adopted in the confederation, after much angry
discussion, for fixing the quota of each state, had proved a
source of great delay and controversy. The valuation of
land which it prescribed, had been found impracticable, and
congress had been compelled to adhere to the original sys-
tem of requisitions, on the basis of the population, as com-
* From an entry in the diary of Mr. Morris, it appears that as late as the
twenty-ninth of August, 1782, a committee of inquiry, appointed by congress,
questioned his reasons for appointing continental receivers.
vol. i. 52
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? 410 THE LIFE OF
puted in seventeen hundred and seventy-five. Each state
took advantage of the inaccuracy of this enumeration, and
found a ready excuse for the deficiency of their supplies in
the incorrectness of the estimate.
To avoid this difficulty, and at the same time to extend
the system of taxation as far as was possible, in order to meet
the demands of the public, Hamilton framed anelaborate bill,
in which, agreeably to a resolution of congress of the prece-
ding February, and to the report of the financier, he proposed
to abolish the method which existed, of taxing by arbitrary
quotas and assessments, -- a source of the greatest injustice
and inequality, -- and substituting for it a system of specific
taxation on lands, distinguished by their character, as mea-
dow or arable; on salt by the bushel; on tobacco by the
pound; on carriages. ; plate; on licenses of various kinds;
on menial servants; on houses; and a rate of specific du-
ties on imports.
The bill embraces a very minute and systematic scheme
to render the assessment and collection easy and secure; and
with a view to prevent the confusion and neglect which had
resulted from the proceeds of the taxes being thrown into
a general mass, he suggested the appropriation of them to
various objects; that upon land, to the support of the inter-
nal government; on carriages, to the judicial establishment;
the house tax to congress, for supplementary funds; the
salt, license, and tobacco tax, for constituting a loan office,
which seems to have been connected with the incorporation
of a bank, of which a portion of the income was to be secu-
red to that office. * The surplus of these taxes, and all
others, to form an aggregate fund for contingencies, to sup-
* A plan for a state bank and state loan office, is found among the papers,
which contemplated one state bank to control the currency ; -- the general
banking to be conducted by private bankers. It is not in Hamilton's hand-
writing, and some features of the plan fender it probable that it was a project
submitted for his consideration, but which he could not have approved.
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? HAMILTON. 411
ply the Federal treasury. A plan of a lottery was also at
this time devised by him, containing many ingenious sug-
gestions, and evincing singular care to prevent frauds, from
which a considerable sum was hoped to be derived in aid
of the finances; -- a mode of taxation which had been pro-
posed by a committee of congress in seventeen hundred and
eighty; but which the enlightened sentiment of the present
age has ceased to approve.
Having obtained a license as an attorney in July, he,
notwithstanding his public duties, continued to prosecute
his legal studies, in order to prepare for admission to the
bar as a counsellor, at the ensuing October term of the Su-
preme Court. A letter to his friend Meade, shows his views
on this subject, and gives a pleasing exhibition of his do-
mestic feelings.
HAMILTON TO MEADE.
Albany, August 27th, 1782.
I thank you, my dear Meade, for your letter of the first
of this month, which you will perceive has travelled much
faster than has been usual with our letters. Our corres-
pondence hitherto has been unfortunate,' nor in fact can
either of us compliment himself on his punctuality; but you
were right in concluding, that however indolence or acci-
dent may interrupt our intercourse, (nothing will interrupt
our friendship. Mine for you is built on the solid basis of
a full conviction that you deserve it, and that it is recipro-
cal, and it is the more firmly fixed, because you have few
competitors. Experience is a continued comment on the
worthlessness of the human race, and the few exceptions
we find, have the greater right to be valued in proportion as
they are rare. \J know few men estimable, -- fewer amia-
ble, and when I meet with one of the last description, it is
not in my power to withhold my affectionjl
You reproach me with not having said enough about our
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? 412 TUK LIFE OF
little stranger. When I wrote last, I was not sufficiently
acquainted with him to give you his character. I may now
assure you, that your daughter, when she sees him, will not
consult you about the choice, or will only do it in respect
to the rules of decorum. He is truly a very fine young gen-
tleman, the most agreeable in his conversation and manners
of any I ever knew, nor less remarkable for his intelligence
and sweetness of temper. You are not to imagine, by my
beginning with his mental qualifications, that he is defect-
ive in personal. It is agreed, on all hands, that he is hand-
some; his features are good, his eye is not only sprightly
and expressive, but it is full of benignity. His attitude, in
sitting is, by connoisseurs, esteemed graceful, and he has a
method of waving his hand that announces the future ora-
tor. He stands, however, rather awkwardly, and as his
legs have not all the delicate shmness of his father's, it is
feared he may never excel as much in dancing, which is
probably the only accomplishment in which he will not be
a model. If he has any fault in manners, he laughs too
much. He has now passed his seventh month.
I am glad to find your prospect of being settled ap-
proaches. I am sure you will realize all the happiness you
promise yourself with your amiable partner. I wish fortune
had not cast our lots at such a distance. Mrs. Meade, you,
Betsey, and myself," would make a most affectionate and
most happy partie quarre.
As to myself, I shall sit down in New-York, when it
opens, and the period we are told approaches. No man
looks forward to a peace with more pleasure than I do,
though no man would sacrifice less to it than myself', if I
were not convinced the people sigh for peace. I have been
studying the law for some months, and Ijave lately been
licensed as an attorney. I wish to prepare myself by Octo-
ber for examujation as a counsellor, but some public avoca-
tions may possibly prevent me.
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? HAMILTON. 413
I had almost forgotten to tell you, that I have been pretty
unanimously elected by the legislature of this state, a mem-
ber of congress, to begin to serve in November. I do not
hope to reform the state, although I shall endeavour to do
all the good I can.
Suffer Betsey and me to present our love to Mrs. Meade.
She has a sisterly affection for you. My respects, if you
please, to Mr. and Mrs. Fitzhugh. God bless you.
A. Hamilton.
The committee of the legislature, of which he speaks in
his letter to Mr. Morris, met on the fifteenth of September,
and notwithstanding his labour in devising a system of taxa-
tion, such were his doubts of the tone of the public, that in
a letter written to Mr. Morris on the evening prior to their
meeting, he says, " I am at a loss to know whether I ought
to press the establishment of permanent funds or not, though
unless I receive your instructions, following my own appre-
hensions of what are probably your views, I shall dwell
upon this article. "
On the fifth of October, he writes as follows: "In my
last I informed you that the committee appointed by the
legislature on the subject of taxation were together.
"In spite of my efforts, they have parted without doing
any thing decisive. They have, indeed, agreed on several
matters, and those of importance, but they have not redu-
ced them to the form of a report, which, in fact, leaves
every thing afloat, to be governed by the impressions of the
moment, when the legislature meet.
"The points agreed upon are these: that there shall
be an actual valuation of land, and a tax of so much on the
pound. The great diversity in the quality of land, would
not suffer them to listen to an estimated valuation, or to a
tax by the quantity, agreeable to the idea in your late re-
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? 414 THE LIFE OF
port to congress, that there shall be also a tariff of all per-
sonal property, to be also taxed at so much on the pound.
"That there shall be a specific tax on carriages, clocks,
watches, and other similar articles of luxury: That money
at usury shall be taxed at a fixed rate in the pound, exclu-
ding that which is loaned to the public: That houses in
all towns shall be taxed at a certain proportion of the an-
nual rent: That there shall be a poll tax on all single men
from fifteen upwards; and that the collection of the taxes
should be advertised to the lowest bidder, at a fixed rate
per cent. , barring all subordinate expenses.
"Among other things which were rejected, I pressed
hard for an excise on distilled liquors, but all that could be
carried in this article was a license on taverns.
"The committee were pretty generally of opinion, that
the system of funding, for payment of old debts, and for
procuring farther credit was wise and indispensable; but a
majority thought it would be unwise in one state to contri-
bute in this way alone.
"Nothing was decided on the question of taxes, which
the state was able to pay; those who went farthest did not
exceed seventy thousand pounds, of which fifty were for
the use of the United States. "
An interesting correspondence continued between Mor-
ris and Hamilton, in which the various measures for prop-
ping up the credit of the financier, and introducing his notes
into extensive circulation, as a common currency, are dis-
cussed. In one of these, Hamilton speaks of an address of
the public creditors in Albany to those of the whole United
States, as having originated with himself, and containing
ideas which ought to prevail.
The suspension of interest on the loan office certificates
issued at an early stage of the revolution, had produced
great distress and discontent among the holders, the greater
number of whom resided in Philadelphia. After frequent
-\
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? HAMILTON. 415
consultation, a numerous meeting was convened in that
city, and strong resolutions adopted, urging upon congress
the necessity of granting them immediate relief. On the
appearance of this document, Hamilton conceived the idea
that a powerful influence might be exercised upon the mea-
sures of congress by the co-operation of the creditors in
other states, and with this view a meeting was held at Al-
bany, where General Schuyler presided, at which was pro-
posed a convention of county delegates at Poughkeepsie,
and a state delegation to a general convention at Philadel-
phia, from which he hoped incipient steps might be taken
for the adoption of his favourite measure, -- a re-organiza-
tion of the general government. These resolutions were
accompanied by the following address, urging the establish-
ment of permanent funds.
"TO THE PUBLIC CREDITORS OF THE STATE OF
NEW-YORK. "
The appellation by which we have chosen to address you,
indicates at once the broad and equitable basis upon which
we wish to unite the influence and efforts of those who are
creditors of the public, to obtain that justice, which the ne-
cessities of many, and the rights of all demand. What-
ever distinctions may characterize the different classes of
creditors, either of the United States, or of" this state, --
whatever may be their different degrees of merit as pa-
triots, or their comparative claims upon the gratitude or
generosity of their country, in one circumstance they all
agree, -- they have an equal claim upon the justice and
plighted faith of the public.
Alarmed by the successive violations of public engage-
ments, and by that recent and distressing one, the with-
holding the interest hitherto paid by bills on France, upon
the monies loaned previous to first March, 1778, the public
creditors in this city have thought it necessary to follow
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? 410 THE h I IK OF
the example of those of the city of Philadelphia, and to
convene and consult upon the measures proper to be taken
for their own security. They will not dwell upon the
measure alluded to, farther than to observe, that its weight
is most oppressively felt by those whose zeal in the cause
and confidence in their country have been most conspi-
cuous; who in times of danger, have demonstrated their
concern for the common safety, by voluntary deposits, in
some instances of the whole, in others of a large part of
their fortunes in the public funds; and who now, many of
them at least, feel themselves reduced from affluence to
indigence, -- from circumstances of ease and plenty, to
penury and unaffected distress.
They cannot but add, that there are others, not less me-
ritorious, who have perhaps experienced even a worse fate;
those who, having made subsequent loans, have long since
seen the payment of interest cease, and those who, when
the distresses of the army have had no resource but in the
patriotism of individuals, have cheerfully parted with the
fruits of their industry, scarcely reserving a sufficiency for
the subsistence of their own families, without any compen-
sation since, besides the consciousness of having been the
benefactors of their country.
We entertain not so injurious an idea as lo imagine, that
levity or contempt of the obligations of national faith, or
of the dictates of policy, have influenced those infringe-
ments of the public engagements, which have too often
happened. We have been sensible of the necessity which
has, in some cases, produced them; but we apprehend it
to have resulted, not from the want of ability or means,
but from the want of a proper system for the beneficial
application of them. And we conceive it our duty to ac-
quiesce in that necessity, only so far as there appears to
be an unavoidable sacrifice to the urgent calls of particular
conjunctions, followed by effectual endeavours to prevent
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? HAMILTON. 41T
a continuance or return of the same necessity, or to make
satisfaction in some other way.
Few states have been without their vicissitudes, in which
the strict obligations of good faith have been obliged. to
bend to momentary necessities; but the example of all
wise and happy ones, combine with reason and justice to
establish this truth, that no time ought to be lost in pro-
viding the means of repairing those breaches, and making
compensation for the sufferers.
Unfortunately for us, and for every citizen of the United
States, (for the calamity directly or in its consequences is
general,) the same policy has been too long delayed in this
country; the only expedient in our power for effecting the
object, being still unattempted. We need no arguments to
convince us, that it is not possible for these states, by any
exertions they can make, to pay off at once the principal
of the public debts, and furnish the supplies for the cur-
rent demands of the war, and for the support of civil go-
vernment. We even think it as manifest as experience
and calculation can make it, that our abilities fall greatly
short even of the two latter objects. This, in an infant
country, will not surprise those who know that nations
the most opulent, and in all the vigour of maturity, are
compelled to have recourse to large loans in time of war,
to satisfy the public exigencies.
The quota of the present year has been fixed at eight
millions of dollars, which we are to consider as the sum
requisite for the annual expenditure; and those accustomed
to computations of such a nature, will be convinced that
to make this sum suffice, requires economy and good ma-
nagement. Have we a prospect of raising one third of
this sum within the states? Those who have attended to
the publications of the receipts on the continental account,
will easily answer the question for themselves. If this
vol. i. 53
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? 418 THE LIFE OF
must be in the negative, the inquiry then becomes, what
means have we to supply the deficiency?
Admit that there are defects in the system of taxation
in almost every state, and that more judgement and equali-
ty in the manner of laying them, mere energy and econo-
my in the collection, would be more productive to the re-
venue, and less burthensome to the people, still we cannot
imagine that the reformation of these defeets would aug-
ment the product of the taxes in any proportion to the de-
ficiency.
It is plain, therefore, that the principal part of the ba-
lance must be procured upon credit; nor is it less plain,
that this must chiefly be from individuals at home and
abroad. We are assured, that the situation of our allies
will not permit them to make us governmental loans, in
any proportion to our wants, and without this assurance,
we might have inferred it, from a consideration of the im-
mense land and naval establishments which they are
obliged to support in the prosecution of the war, on their
own part.
It may be asked, if such are the necessities of the pub-
lic, how are they to spare any part of their funds for the
payment of old debts? The answer is easy, -- those ne-
cessities can only be supplied by a sound and healthy state
of public credit, and there is only one way to effect the
restoration of this credit, -- the putting the old debts in a
course of redemption,, or at least securing the punctual pay-
ment of the interest, by substantial funds, permanently
pledged for that purpose.
It cannot be expected, that individuals in this country
will hereafter lend to the public, unless they perceive a dis-
position to do justice to its creditors. If, without providing
for those who have already risked their fortunes, securities
should be held out to invite future creditors, a suspicion of
their faithful application would deter every prudent man.
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? HAMILTON. 419
There must be a good opinion' of public faith, before there
can be a confidence in public securities; and this opinion
can only be created by unequivocal demonstrations of a
disposition to do justice; nor will any thing amount to a
proof of this, short of the measure on which we insist. In
common life, no credit would be given to any man who de-
parted from these principles, and the same rule is not less
applicable to nations.
If individuals among ourselves would not have the ne-
cessary confidence, it were chimerical to expect it from
foreigners. Such of them as, having been already adven-
turers in our funds, are holders of public certificates, would
have little encouragement to adventure farther.
No presumptions of the speedy termination of the war,
will invalidate the force of these reflections.
Not only the
grounds of them are vague and uncertain, and it would be
the extremity of folly to abandon an indispensable resource
for continuing the war, because there was a possibility of
its being ended. But the fullest assurance of the event,
would not take away this irresistible argument, that public
justice, and its inseparable companion, public credit, are
alike essential to the prosperity of a nation in peace and
war.
We scruple not to assert, that these states might, with
ease to themselves, provide the means requisite to fund the
debts already incurred, and to procure farther loans. A
moderate sum would be sufficient. It is an expedient
which we conceive besides calculated to lighten the bur-
thens of the people, and to increase their ability to bear
them. The more we can procure on credit, the less we
need exhaust ourselves in immediate taxation; and the pub-
lic creditors themselves will be enabled to bear a large
share of the future burthen, which will, of course, diminish
the contributions of others. We might expatiate on the
influence of public credit over private industry, and on its
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? 420 THE LIFE OF
tendency in that way to multiply the riches of the commu-
nity, and we might add, that the wheels of circulation and
commerce, now clogged by the want of an adequate me-
dium, would derive new motion and vivacity from the in-
crease of that medium, by rendering the public securities a
valuable negotiable property. We have indulged in these
reflections to show that patriotism, not less than necessity,
interest, and safety, prompt us to an emphatical appeal to the
justice and honour of our country.
What will be the condition of individuals, if a disregard
to the sanctity of public obligations should become the spi-
rit of the public councils? We indeed should be the imme-
diate victims, but who can answer when his turn might
come? It is true, those who are not already embarked,
may avoid hereafter becoming volunteers in their own ruin,
but can they guard against the pressing calls of necessity,
enforced by legislative coertions? Should we see a renew-
al of the distresses of the army, for want of subsistence,
must not the inhabitants of this state again feel the weight
of compulsory laws, and unless justice be done to the pre-
sent creditors, what hope can they have of recompense?
What, in short, will be the security of private property, if
the powers of government may be employed to take it from
us, and no provision hereafter made to render satisfaction?
A purity of faith has ever been the more peculiar attri-
bute of republics, the very being of which depends on vir-
tue in all, and a sacred regard to justice in those to whom
the administration of affairs is entrusted. A contrary dis-
position in these states, would be as novel as pernicious;
and we flatter ourselves, we never shall suffer such a stig-
ma to be fixed upon our national character, especially on
our first emerging into political existence.
The propriety of introducing at large such a document,
may, perhaps, be questioned; but, when it is remembered,
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? HAMILTON. 421
that the fate of the American union depended on the ful-
filment of its engagements; with what difficulty its discor-
dant members were induced to co-operate; and when we
view Hamilton as the great instrument in producing this
result; the knowledge of every circumstance which can
throw light on the state of public opinion; of every obsta-
cle which was encountered; and of every effort which was
made; becomes essential in enabling us to judge of the na-
ture and extent of his services.
There is another view, which has a deep and touching
interest. Amidst the glare of war, the civil sufferers of the
revolution have been little regarded; and the individu-
als who nerved the arm of the country with their wealth;
who parted with the fruits of their industry; who were re-
duced from affluence to indigence; who had none of the
quickening incentives of ambition to sustain them; whose
intelligence disclosed to them all the hazards they incurred;
and who leaned solely on an elevated and self-denying
patriotism, were often remembered only to be stigmatized.
They are brought before us here in person with all their
unrequited wrongs; standing before the altar of public
faith; claiming the fulfilment of its pledges for the sacri-
fices they had made; in the midst of them is seen Hamil-
ton, pleading in their behalf for that justice which, though
long delayed, it was reserved to his hand to administer.
Most of the letters which passed, at this time, between
the subject of this memoir and the Superintendent of Fi-
nance are lost, and it is the more to be regretted, as, from
the manner in which they are referred to, they appear to
have contained full views of the many difficult questions
which arose, connected with the restoration of public credit.
From those which remain, we may infer, how early ri-
pened were Hamilton's financial opinions, and may form a
partial judgement of the extraordinary difficulties, labours,
and capacity of Robert Morris, whose luminous views of
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? 422 THE LIFE OF HAMILTON.
the interests of the country, are only less remarkable than
the energy, firmness, and resource, with which he seemed
to have borne on his shoulders its tottering fortunes.
As the session of congress approached, Colonel Hamil-
ton urged the necessity of a successor being appointed;
and on the last day of October relinquished his office of
continental receiver, to commence the new and more im-
portant career which was opening before him.
END OF VOL. I.
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