In accepting it, I have only one scruple,
arising from a doubt whether the service I can render in
the present stateWJf things, will be an equivalent for the
compensation.
arising from a doubt whether the service I can render in
the present stateWJf things, will be an equivalent for the
compensation.
Hamilton - 1834 - Life on Hamilton - v1
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? 392 TUB LIFE OF
ved, in the noble spirit of his friend, an excess of that deli-
cacy which he himself cherished.
In the intercourse of these martial youths, there was a
deep fondness of friendship, which approached the tender-
ness of feminine attachment. On the annunciation of his
sad fate, Hamilton writes to La Fayette, -- " Poor Laurens!
he has fallen a sacrifice to his ardour, in a 1 rifling skirmish
in South Carolina. You know how truly I loved him, and
will judge how much I regret him. "
This simple tribute of affection, conveyed a deeper mean-
ing than is expressed; for while his country deplored the
untimely fate of this their favourite youth, cut off in the ca-
reer of honour, his friend knew the deep wound he had re-
ceived at an early period of his life, and that there was that
upon his memory which made the latest moment the most
desired of his existence.
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? HAMILTON.
3U
CHAPTER XV.
(1732. ]
?
At the close of the year, Hamilton, as has been previously
mentioned, returned to Albany.
There, amidst a circle of friends, to whom his social vir-
tues more endeared him than the lustre of his reputation,
he, whose lot from infancy had been cast among strangers,
enjoyed all the happiness of finding in General Schuyler
and his family a second parent, and new relatives.
In this hospitable abode he remained until the ensuing
spring, mingling cheerfully with the small society of a place,
where a simplicity of manners then prevailed, almost patri-
archal; and strengthening the intimacy he had already
formed with Schuyler, who saw, with pride, the develope-
ment of the powers of his mind, and with whom his life
was a continued scene of uninterrupted regard, harmony,
and confidence.
Although no definitive opinion could be formed in the
course of the winter, as to the conclusion of a treaty, and
the measures of congress, prompted by the zealous exhor-
tations of General Washington, indicated a determination
to prepare for a vigorous prosecution of the war, which the
proceedings of the English parliament, at the beginning of
its session evinced no disposition to discontinue, yet the
advices received by Colonel Hamilton from the Marquis
De La Fayette, who wras in close conference with the Ame-
rican negotiators, and lending all his influence to promote
their views, and from the Viscount Dc Noailles, of the tem-
per of the continental powers, with the situation of the Bri-
tish army in the northern states, gave little reason to ex-
pect an active campaign in that quarter.
vol. I. 50
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? 394 THE LIFE OF
The birth of a son imposed on him new obligations; and,
influenced by these considerations, he determined to pre-
pare himself for the duties of private life. He selected the
profession of the law, -- a pursuit which was justly deemed
the most honourable in the country, and in which had been
formed the largest number of its most conspicuous charac-
ters.
On the first intimation of this purpose, liis friends, un-
willing to lose his services to the public, strongly urged
him to defer his purpose. The idea of his being appointed
a commissioner to conclude a peace, was suggested to him,
and the slow advances of the legal profession, in an impo-
verished and inactive community were depicted, to deter him
from making what was then deemed a sacrifice.
But his ideas of personal independence, induced him to
decline the most generous offers of aid from Schuyler, and
to the dark professional prospects which were held up, he
replied, with a modest, but confident expression of his re-
liance on the certainties of perseverance.
With these views, he proceeded to Philadelphia, and, al-
though his sole resources were in himself, addressed the fol-
lowing letters to General Washington, strongly illustrative
of the pride and disinterestedness of his character.
: . r,3t:'-<iU ? ,? ;"! !
HAMILTON TO WASHINGTON.
SIR, -m, c
I need not observe to your excellency, that respect for
the opinion of congress will not permit me to be indifferent
to the impressions they may receive of my conduct. On
this principle, though I do not think the subject of the en-
closed letter of sufficient importance to request an official
communication of it, yet I should be happy it might in some
way be known to the members of that honourable body.
Should they hereafter learn, that though retained on the
list of their officers, I am not in the execution of the duties
?
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? HAMILTON. 395
of my station, I wish them to be sensible, that it is not a di-
minished zeal which induces me voluntarily to withdraw
my services, but that I only refrain from intruding them,
when circumstances seem to have made them either not ne-
cessary, or not desired; and that I shall not receive emolu-
ments, without performing the conditions to which they
were annexed. I also wish them to be apprized, upon
what footing my future continuance in the army is placed,
that they may judge how far it is expedient to permit it. I
therefore take the liberty to request the favour of your ex-
cellency to impart the knowledge of my situation, in such
manner as you think most convenient.
I have the honour to be,
With perfect respect,
Your excellency's
Most obedient and humble servant.
HAMILTON TO WASHINGTON.
SIR,
. Your excellency will, I am persuaded, readily admit the
force of this sentiment, that though it is the duty of a good
citizen to devote his services to the public, when it has oc-
casion for them, he cannot, with propriety or delicacy to
himself, obtrude them, when it either has, or appears to
have, none.
The difficulties I experienced last campaign in obtaining
a command, will not suffer me to make any farther applica-
tion on that head.
As I have many reasons to consider my being employed
hereafter in a precarious light, the bare possibility of render-
ing an equivalent, will not justify to my scruples, the receiv-
ing any future emoluments from my commission. I there-
fore renounce, from this time, all claim to the Compensations
attached to my military station during the war, or after it.
But I have motives which will not permit me to resolve on
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? 396 THE LIFE OF
a total resignation. I sincerely hope a prosperous train of
affairs may continue to make it no inconvenience to decline
the services of persons, whose zeal in worse times was found
not altogether useless; but as the most promising appear-
ances are often reversed by unforeseen disasters, and as un-
fortunate events may again make the same zeal of some
value, I am unwilling to put it out of my power to renew
my exertions in the common cause, in the line in which I
have hitherto acted.
I shall, accordingly, retain my rank, while I am permit-
ted to do it; and take this opportunity to declare, that I shall
be at all times ready to obey the call of the public, in any
capacity, civil or military, (consistent with what I owe to
myself,) in which there may be a prospect of my contribut-
ing to the final attainment of the object for which I em-
barked in the service. I have the honour to be,
Very respectfully,
Your excellency's
Most obedient servant,
A. Hamilton.
Philadelphia, March 1, 1782.
While at Philadelphia, he received a letter relating to the
same subject, from his friend Colonel Meade, to which the
following is a reply.
HAMILTON TO MEADE.
Philadelphia, March, 1782.
An half hour since brought me the pleasure of your let-
ter of December last. It went to Albany and came from
thence to this place. I heartily felicitate you on the birth
of your daughter. I can well conceive your happiness upon
that occasion, by that which I feel on a similar one.
Indeed, the sensations of a tender father of the child of a
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? HAMILTON. 897
beloved mother, can only be conceived by those who have
experienced them.
Your heart, my Meade, is peculiarly formed for enjoy-
ments of this kind. You have every right to be a happy
husband, a happy father. You have every prospect of be-
ing so. I hope your felicity may never be interrupted.
You cannot imagine how entirely domestic I am grow-
ing. I lose all taste for the pursuits of ambition. I sigh
for nothing but the company of my wife and my baby. The
ties of duty alone, or imagined duty, keep me from renoun-
cing public life altogether. It is, however, probable, I may
not be any longer actively engaged in it.
I have explained to you the difficulties which I met with
in obtaining a command last campaign. I thought it in-
compatible with the delicacy due to myself to make any
application this campaign. I have expressed this senti-
ment in a letter to the General, and, retaining my rank only,
have relinquished the emoluments of my commission, de-
claring myself, notwithstanding, ready at all times to obey
the calls of the public. I do not expect to hear any of
these, unless the state of our affairs should change for the
worse, and lest, by any unforeseen accident that should
happen, I choose to keep myself in a situation again to con-
tribute my aid. This prevents a total resignation.
You were right in supposing I neglected to prepare what
I promised you at Philadelphia. The truth is, I was in
such a hurry to get home, that I could think of nothing else.
As I set out to-morrow morning for Albany, I cannot,
from this place, send you the matter you wish.
Imagine, my dear Meade, what pleasure it must give
Eliza and myself to know that Mrs. Meade interests herself
in us. Without a personal acquaintance, we have been
long attached to her. My visit at Mr. Fitzhugh's confirmed
my partiality. Betsey is so fond of your family, that she
proposes to form a match between her boy and your girl,
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? 398 THE LIFE OF
provided you will engage to make the latter as amiable as
her mother.
Truly, my dear Meade, I often regret that fortune has
cast our residence at such a distance from each other, i It
would be a serious addition to my happiness if we lived
where I could see you every day^) but fate has determined
it otherwise. I am a little hurried, and can only request,
in addition, that you will present me most affectionately to
Mrs. Meade, and believe me to be, with the warmest and
most unalterable friendship,
Yours,
A. Hamilton.
Having completed his business at Philadelphia, he return-
ed to Albany ; took a house in the vicinity of General Schuy-
ler, to which he invited, as an inmate, his friend Colonel
Troup, who had previously studied the law, and with his
aid commenced to prepare himself for the practice of it.
To this dull pursuit, so foreign to all his previous habits,
such was his control of the powers of his intellect, that he
devoted himself with the most unremitting labour. His
retentive memory was tasked to its utmost. His habit
was to read while walking to and fro, and so incessant were
his labours, that his intimates would smile at the idea, that
while prosecuting this study, with the same diligence, he
might almost have marched from one end to the other of
the confederacy. At the ensuing July term of the supreme
court, he obtained a licence to practise.
Such was the knowledge he acquired during this short
period of four months, " that he composed a Manual on the
Practice of the Law," which, says Troup, "served as an
instructive grammar to future students, and became the
ground-work of subsequent enlarged practical treatises. "*
* There are gentlemen, now living, who copied this manual as their guide.
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? HAMILTON. 399
In the preceding autumn congress had recommended to
the several states to levy a separate tax for continental re-
quisitions, and had invested the Superintendent of Finance
with the power of appointing an officer in each state to re-
ceive these taxes; an idea not improbably suggested by
Hamilton's letter of September, 1780, intimating the im-
portance of appointing in each state a "continental super-
intendent. " While engaged in the prosecution of his legal
studies, he received the following letter from Robert Mor-
ris.
ROBERT MORRIS TO HAMILTON.
Office of Finance, Philadelphia, May 2d, 1782.
"SIK,
"Mr. Charles Stuart, late commissary general of issues,
has informed me that you are disposed to quit the military
line, for the purpose of entering into civil life. He, at the
same time, induced me to believe that you would accept the
office of receiver of the continental taxes in the state of New-
York. The intention of this letter is to offer you that ap-
pointment. The duties of the office will appear, in a great
degree, from the publications made by me on this subject.
In addition, it will be necessary that you correspond with
me frequently, and give accurate accounts of whatever
may be passing in your state, which it may be necessary
for this office to be acquainted with. For the trouble of
executing it, I shall allow a fourth per cent, on the monies
you receive. The amount of the quota called for from
New-York for the current year is, as you know, three hun-
dred and seventy-three thousand five hundred and ninety-
eight dollars.
"I make no professions of my confidence and esteem, be-
cause I hope none are necessary; but if they are, my wish
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? 400 THE LIFE OF
that you would accept the offer I make, is the strongest
evidence I can give of them. "
Hamilton made the following reply. "I had this day the
honour of receiving your letter of the second instant, and
am much obliged by the mark of your confidence which it
contains, and to Colonel Stuart for his friendly intentions
upon the occasion.
"My military situation has indeed become so negative,
that I have no motives to continue in it, and if my services
could be of importance to the public in any civil line, I
should cheerfully obey its command. But the plan which
I have marked out for myself is the profession of the law,
and I am now engaged in a course of studies for that purpose.
Time is so precious to me, that I could not put myself in
the way of any interruptions, unless for an object of con-
sequence to the public or to myself. The present is not of
this nature. Such are the circumstances of this state, that
the benefit arising from the office you propose, would not,
during the war, yearly exceed one hundred pounds; for
unfortunately, I am persuaded, it will not pay annually into
the continental treasury forty thousand pounds; and on a
peace establishment this will not be, for some time to come,
more than doubled. You will perceive that an engage-
ment of this kind does not correspond with my views, and
does not afford a sufficient inducement to relinquish them.
"I am not the less sensible to the obliging motives which
dictated the offer, and it will be an additional one to the
respect and esteem with which I have the honour to be,
very truly, sir,
"Your most obedient and humble servant. "
On the fourth of June Mr. Morris wrote to him, acknow-
ledging the receipt of this letter, and stating, "I am much
obliged by the friendly sentiments you express for me,
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? HAMILTON. 401
which, be assured, I shall retain a grateful sense of. I see
with you, that the office I had the pleasure of offering, will
not be equal to what your own abilities will gain in the profes-
sion of the law; but I did intend that the whole sum should
have been paid, although the whole quota of the taxes had
not been collected by the state; consequently, the object
is greater than you supposed, and the business might proba-
bly be effected without more attention than you could spare
from your studies. If so, I should still be happy in your
acceptance, and will leave the matter open until I have an
opportunity of hearing from you upon the subject. "
To which Hamilton gave the following answer:
HAMILTON TO MORRIS.
SIR,
* * * * The explanation which you give of your inten-
tion, in your late offer, makes it an object that will com-
pensate fully for the time that it will deduct from my other
occupations.
In accepting it, I have only one scruple,
arising from a doubt whether the service I can render in
the present stateWJf things, will be an equivalent for the
compensation. (The whole system, (if it may be so called,)
of taxation in this state, is radically vicious, burthensome
to the people, and unproductive to governmenfe-^As the
matter now stands, there seems to be little for a continen-
tal receiver to do. The whole business appears to be
thrown into the hands of the county treasurers; nor do I
find that there is any appropriation made of any part of the
taxes collected for continental purposes, or any provision
to authorize payment to the officer you appoint. This,
however, must be made. There is only one way in which
I can imagine a prospect of being materially useful; that
is, in seconding your applications to the state. In popu-
lar assemblies much may sometimes be brought about by
personal discussions, by entering into details, and combat-
vol. i. 51
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? 402 THE LIFE OF
ing objections as they rise. If it should, at any time, be
thought advisable by you to empower me to act in this ca-
pacity, I shall be happy to do every thing that depends
upon me to effectuate your views. I flatter myself, to you,
sir, I need not profess that I suggest this, not from a desire
to augment the importance of office, but to advance the
public interest.
It is of primary moment to me, as soon as possible to
take my station in the law, and on this consideration I am
pressing to qualify myself for admission the next term,
which will be the latter end of July. After this, should you
think an interview necessary, I will wait upon you in Phila-
delphia. In the mean time, I shall be happy to receive your
instructions, and shall direct my attention more particularly
to acquiring whatever information may be useful to my fu-
ture operations. I have read your publications at different
times, but as I have not the papers containing them in my
possession, it will be necessary that their contents should
be comprised in your instructions. A meeting of the legis-
lature is summoned early in the next month, at which, if I
previously receive your orders, it may be possible to put
matters in train. I am truly indebted to you, sir, for the
disposition you have manifested upon this occasion, and I
shall only add an assurance of my endeavours to justify your
confidence.
Alex. Hamilton.
On the second of July following, Mr. Morris writes, en-
closing the warrant of appointment and instructions, to
which he adds the following observations: -- "It gives me
singular pleasure, to find that you have yourself pointed out
one of the principal objects of your appointment. You will
find that it is specified in the enclosure. I must request
you to exert your talents, in forwarding with your legisla-
ture the views of congress. Your former situation in the
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? HAMILTON. 403
army, the present situation of that very army, your con-
nexions in the state, your perfect knowledge of men and
measures, and the abilities with which heaven has blessed
you, will give you a fine opportunity to forward the public
service, by convincing the legislature of the necessity of co-
pious supplies, and by convincing all who have claims on
the justice of congress, that those claims exist only by that
hard necessity which arises from the negligence of the
states. When to this you shall superadd the conviction,
that what remains of the war being a war of finance, solid
arrangements of finance must necessarily terminate favour-
ably, not only to our hopes, but even to our wishes. Then,
sir, the governments will be disposed to lay, and the people
to bear those burthens which are necessary; and then the
utility of your office, and of the officer, will be as manifest
to others as at present to me. "
On the receipt of this communication, Hamilton wrote
the following letter.
HAMILTON TO ROBERT MORRIS.
"I shall to-morrow morning commence a journey to
Poughkeepsie, where the legislature are assembled, and I
will endeavour, by every step in my power, to second your
views, though I am sorry to add, without very sanguine ex-
pectations. I think it probable the legislature will do some-
thing, but whatever momentary effort they make, till the
entire change of their present system, very little will be
done. To effect this, mountains of prejudice and particu-
lar interest are to be levelled. For my own part, consi-
dering the late serious misfortune to our ally, the spirit of
reformation, of wisdom, and of unanimity, which seems to
have succeeded to that of blunder, perverseness, and dis-
sension in the British government, and the universal reluc-
tance of these states to do what is right, I cannot help view-
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? 404 THE LIFE OF
ing our situation as critical, and I feel it the duty of every
citizen to exert his faculties to the utmost to support the
measures, especially those solid arrangements of finance,
on which our safety depends.
"It is not in the spirit of compliment, but of sincerity, I
assure you, that the opinion I entertain of him who presides
in the department, was not one of the smallest motives to
my acceptance of the office, nor will that esteem and con-
fidence which makes me now sensibly feel the obliging ex-
pressions of your letter, fail to have a great share in influ-
encing my future exertions. "
On his arrival at Poughkeepsie, Hamilton addressed a
letter, on the sixteenth July, to Governor Clinton, apprizing
him of his appointment, and requesting the legislature to
vest in him the necessary authority; stating that it was "a
part of his duty, to explain to the legislature, from time to
time, the views of the Superintendent of Finance, in pursu-
ance of the orders of congress, that they may be the better
enabled to judge of the measures most proper to be adopt-
ed for an effectual co-operation, and asking his excellency
to impart his request, to have the honour of a conference
with a committee of the two houses. "
This body had been convened, in an extra session, at the
express instance of a committee of congress, and was open-
ed with a forcible message from the Governor, urging the
importance of a revisal of the tax laws, and calling upon
the legislature to denounce the attempts of the British go-
vernment to make separate treaties with the states, as a
measure inevitably to be attended with ruin and infamy,
and pressing the importance of the most strenuous exer-
tions to expel the enemy from their territory, to which an
answer, prepared by General Schuyler, who was the leader
in the senate, responded in the strongest terms. On the
twentieth July, the senate adopted a series of resolutions,
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? HAMILTON. 405
declaring their opinion, "that the present system of these
states exposes the cause to a precarious issue; that the
radical source of most of the embarrassments is the want
of sufficient power in congress to effectuate that ready and
perfect co-operation of the different states, on which their
immediate safety and future happiness depends; that ex-
perience had demonstrated the confederation to be defect-
ive in several essential points, particularly in not vesting
the federal government, either with a power of providing
revenue for itself, or with ascertained and productive funds,
secured by a sanction so solemn and general, as would in-
spire the fullest confidence in them, and make them a sub-
stantial basis of credit; and that it is essential to the com-
mon welfare, that there should be, as soon as possible, a
conference of the whole states on the subject, and that it
would be advisable, for this purpose, to propose to congress
to recommend, and to each state to adopt, the measure of
assembling a general convention of the states, specially au-
thorized to revise and amend the confederation, reserving
a right to the respective legislatures to ratify their deter-
minations. "
These resolutions, in which the hand of Hamilton so dis-
tinctly appears, were adopted unanimously,* and within
two days after, a joint committee of both houses was, at his
instance, appointed to report, at the next session, a system
for establishing such funds, within the state, as were best
suited to answer its purposes and those of the United
States, and for the more effectual collection of taxes, -- at
the head of which was General Schuyler, through whose
influence Hamilton was, on the same day, elected a Dele-
gate to congress.
It is interesting, in the progress of this work, to remark,
that to him who had so long laboured to impress on others
* July 22d, 1782.
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? 400 THE LIFE OF
the importance of a new organization of the government,
and who had so large a share in its formation, adoption,
and exposition, is to be attributed, with the aid of Schuy-
ler, the first action of the state of New-York, towards this
primary object. * In a letter to Mr. Morris, of this date,
Hamilton thus speaks of the result of his exertions:
HAMILTON TO ROBERT MORRIS.
"Poughkeepsie, July 22, 1782.
"SIR,
"Agreeable to my letter to you from Albany, I came to
this place, and had an interview with a committee of the
legislature, in which I urged the several matters contained
in your instructions. I strongly represented the necessity
of solid arrangements of finance, and by way of argument,
pointed out all the defects of the present system. I found
every man convinced that something was wrong, but few
that were willing to recognise the mischief when defined,
and consent to the proper remedy. The quantum of taxes
already imposed is so great, as to make it useless to impose
any others to a considerable amount; a bill has, however,
passed both houses, payable in specie, bank notes, or your
notes, for eighteen thousand pounds.
"It is at present appropriated to your order, but I doubt
whether some subsequent arrangement will not take place
for a different appropriation. The commander-in-chief has
applied for a quantity of forage, which the legislature is de-
vising the means of furnishing, and I fear it will finish by
diverting the eighteen thousand pounds to that purpose. I
have, hitherto, been able to prevent this; but as it is of
indispensable importance to me to leave this place imme-
diately, to prepare for an examination, for which I have
pledged myself the ensuing term, which is at hand, it is
* It is believed to be the first proceeding of any state on this subject. ?
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? HAMILTON. 407
possible, after I have left it, contrary ideas will prevail.
Efforts have been made to introduce a species of negotiable
certificates, which I have strenuously opposed. It has not
yet taken place, but I am not clear how the matter will
terminate. Should the bill for the eighteen thousand
pounds go out, in its present form, I cannot hope that it
will produce in the treasury above half the sum, -- such are
the vices of our present mode of collection. A bill has
also passed the assembly, for collecting arrearages of taxes,
payable in specie, bank notes, your notes, old continental
emissions at one hundred and twenty-eight for one, and a
species of certificates issued by the state, for the purchase
of horses. This is now before the senate; the arrearages
are very large.
"Both houses have unanimously passed a set of resolu-
tions, to be transmitted to congress and the several states,
proposing a convention of the states, to enlarge the powers
of congress, and vest them with funds. I think this a very
eligible step, though I doubt of the concurrence of the other
states; but I am certain without it, they never will be
brought to co-operate in any reasonable or effectual plan.
Urge reforms or exertions, and the answer constantly is,
what avails it for one state to make them, without the con-
sent of the others? It is in vain to expose the futility of this
reasoning. It is founded on all those passions which have
the strongest influence on the human mind.
"The legislature have also appointed, at my instance, a
committee to devise, in its recess, a more effectual system
of taxation, and to communicate with me on this subject.
A good deal will depend on the success of this attempt.
Convinced of the absurdity of multiplying taxes in the pre-
sent mode, when in effect the payment is voluntary, and
the money received exhausted in the collection, I have la-
boured chiefly to instil the necessity of a change in the
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? 408 THE LIFE OF
plan, and though not so rapidly as the exigency of public
affairs requires, truth seems to be making some progress.
"There is no other appropriation to the use of congress
than of the eighteen thousand pounds.
"I shall, as soon as possible, give you a full and just view
of the situation and temper of this state. This cannot be
till after my intended examination; that over, I shall lay
myself out in every way that can promote your views, and
the public good. I am informed, you have an appointment
to make of a commissioner of accounts for this state. Per-
mit me to suggest the expediency of choosing a citizen of
the state, a man who, to the qualifications requisite for the
execution of the office, adds an influence in its affairs. I
need not particularize the reasons for this suggestion. In
my next I will also take the liberty to mention some cha-
racters. I omitted mentioning, that the two houses have
also passed a bill, authorizing congress to adjust the quotas
of the states, on equitable principles, agreeable to your re-
commendation. "
After the adjournment of the legislature, and his admis-
sion to the bar, Hamilton devoted himself assiduously to the
duties which the urgent solicitations of Mr. Morris earnest-
ly pressed.
The pictures which are given in his letters of this period
are of the most gloomy cast. Double sets of officers,
with conflicting powers and duties, clogging their respec-
tive operations; taxes, far beyond the ability of the peo-
ple, to be collected through a medium reduced to the low-
est point, and almost consumed in the process of collection;
while a general system of connivance and fraud pre-
vailed in many of the subordinate departments, which fur-
nished the strongest inducements to check the inquiries,
and prevent the adoption of the suggestions of an officer,
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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.
? 392 TUB LIFE OF
ved, in the noble spirit of his friend, an excess of that deli-
cacy which he himself cherished.
In the intercourse of these martial youths, there was a
deep fondness of friendship, which approached the tender-
ness of feminine attachment. On the annunciation of his
sad fate, Hamilton writes to La Fayette, -- " Poor Laurens!
he has fallen a sacrifice to his ardour, in a 1 rifling skirmish
in South Carolina. You know how truly I loved him, and
will judge how much I regret him. "
This simple tribute of affection, conveyed a deeper mean-
ing than is expressed; for while his country deplored the
untimely fate of this their favourite youth, cut off in the ca-
reer of honour, his friend knew the deep wound he had re-
ceived at an early period of his life, and that there was that
upon his memory which made the latest moment the most
desired of his existence.
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? HAMILTON.
3U
CHAPTER XV.
(1732. ]
?
At the close of the year, Hamilton, as has been previously
mentioned, returned to Albany.
There, amidst a circle of friends, to whom his social vir-
tues more endeared him than the lustre of his reputation,
he, whose lot from infancy had been cast among strangers,
enjoyed all the happiness of finding in General Schuyler
and his family a second parent, and new relatives.
In this hospitable abode he remained until the ensuing
spring, mingling cheerfully with the small society of a place,
where a simplicity of manners then prevailed, almost patri-
archal; and strengthening the intimacy he had already
formed with Schuyler, who saw, with pride, the develope-
ment of the powers of his mind, and with whom his life
was a continued scene of uninterrupted regard, harmony,
and confidence.
Although no definitive opinion could be formed in the
course of the winter, as to the conclusion of a treaty, and
the measures of congress, prompted by the zealous exhor-
tations of General Washington, indicated a determination
to prepare for a vigorous prosecution of the war, which the
proceedings of the English parliament, at the beginning of
its session evinced no disposition to discontinue, yet the
advices received by Colonel Hamilton from the Marquis
De La Fayette, who wras in close conference with the Ame-
rican negotiators, and lending all his influence to promote
their views, and from the Viscount Dc Noailles, of the tem-
per of the continental powers, with the situation of the Bri-
tish army in the northern states, gave little reason to ex-
pect an active campaign in that quarter.
vol. I. 50
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? 394 THE LIFE OF
The birth of a son imposed on him new obligations; and,
influenced by these considerations, he determined to pre-
pare himself for the duties of private life. He selected the
profession of the law, -- a pursuit which was justly deemed
the most honourable in the country, and in which had been
formed the largest number of its most conspicuous charac-
ters.
On the first intimation of this purpose, liis friends, un-
willing to lose his services to the public, strongly urged
him to defer his purpose. The idea of his being appointed
a commissioner to conclude a peace, was suggested to him,
and the slow advances of the legal profession, in an impo-
verished and inactive community were depicted, to deter him
from making what was then deemed a sacrifice.
But his ideas of personal independence, induced him to
decline the most generous offers of aid from Schuyler, and
to the dark professional prospects which were held up, he
replied, with a modest, but confident expression of his re-
liance on the certainties of perseverance.
With these views, he proceeded to Philadelphia, and, al-
though his sole resources were in himself, addressed the fol-
lowing letters to General Washington, strongly illustrative
of the pride and disinterestedness of his character.
: . r,3t:'-<iU ? ,? ;"! !
HAMILTON TO WASHINGTON.
SIR, -m, c
I need not observe to your excellency, that respect for
the opinion of congress will not permit me to be indifferent
to the impressions they may receive of my conduct. On
this principle, though I do not think the subject of the en-
closed letter of sufficient importance to request an official
communication of it, yet I should be happy it might in some
way be known to the members of that honourable body.
Should they hereafter learn, that though retained on the
list of their officers, I am not in the execution of the duties
?
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? HAMILTON. 395
of my station, I wish them to be sensible, that it is not a di-
minished zeal which induces me voluntarily to withdraw
my services, but that I only refrain from intruding them,
when circumstances seem to have made them either not ne-
cessary, or not desired; and that I shall not receive emolu-
ments, without performing the conditions to which they
were annexed. I also wish them to be apprized, upon
what footing my future continuance in the army is placed,
that they may judge how far it is expedient to permit it. I
therefore take the liberty to request the favour of your ex-
cellency to impart the knowledge of my situation, in such
manner as you think most convenient.
I have the honour to be,
With perfect respect,
Your excellency's
Most obedient and humble servant.
HAMILTON TO WASHINGTON.
SIR,
. Your excellency will, I am persuaded, readily admit the
force of this sentiment, that though it is the duty of a good
citizen to devote his services to the public, when it has oc-
casion for them, he cannot, with propriety or delicacy to
himself, obtrude them, when it either has, or appears to
have, none.
The difficulties I experienced last campaign in obtaining
a command, will not suffer me to make any farther applica-
tion on that head.
As I have many reasons to consider my being employed
hereafter in a precarious light, the bare possibility of render-
ing an equivalent, will not justify to my scruples, the receiv-
ing any future emoluments from my commission. I there-
fore renounce, from this time, all claim to the Compensations
attached to my military station during the war, or after it.
But I have motives which will not permit me to resolve on
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? 396 THE LIFE OF
a total resignation. I sincerely hope a prosperous train of
affairs may continue to make it no inconvenience to decline
the services of persons, whose zeal in worse times was found
not altogether useless; but as the most promising appear-
ances are often reversed by unforeseen disasters, and as un-
fortunate events may again make the same zeal of some
value, I am unwilling to put it out of my power to renew
my exertions in the common cause, in the line in which I
have hitherto acted.
I shall, accordingly, retain my rank, while I am permit-
ted to do it; and take this opportunity to declare, that I shall
be at all times ready to obey the call of the public, in any
capacity, civil or military, (consistent with what I owe to
myself,) in which there may be a prospect of my contribut-
ing to the final attainment of the object for which I em-
barked in the service. I have the honour to be,
Very respectfully,
Your excellency's
Most obedient servant,
A. Hamilton.
Philadelphia, March 1, 1782.
While at Philadelphia, he received a letter relating to the
same subject, from his friend Colonel Meade, to which the
following is a reply.
HAMILTON TO MEADE.
Philadelphia, March, 1782.
An half hour since brought me the pleasure of your let-
ter of December last. It went to Albany and came from
thence to this place. I heartily felicitate you on the birth
of your daughter. I can well conceive your happiness upon
that occasion, by that which I feel on a similar one.
Indeed, the sensations of a tender father of the child of a
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? HAMILTON. 897
beloved mother, can only be conceived by those who have
experienced them.
Your heart, my Meade, is peculiarly formed for enjoy-
ments of this kind. You have every right to be a happy
husband, a happy father. You have every prospect of be-
ing so. I hope your felicity may never be interrupted.
You cannot imagine how entirely domestic I am grow-
ing. I lose all taste for the pursuits of ambition. I sigh
for nothing but the company of my wife and my baby. The
ties of duty alone, or imagined duty, keep me from renoun-
cing public life altogether. It is, however, probable, I may
not be any longer actively engaged in it.
I have explained to you the difficulties which I met with
in obtaining a command last campaign. I thought it in-
compatible with the delicacy due to myself to make any
application this campaign. I have expressed this senti-
ment in a letter to the General, and, retaining my rank only,
have relinquished the emoluments of my commission, de-
claring myself, notwithstanding, ready at all times to obey
the calls of the public. I do not expect to hear any of
these, unless the state of our affairs should change for the
worse, and lest, by any unforeseen accident that should
happen, I choose to keep myself in a situation again to con-
tribute my aid. This prevents a total resignation.
You were right in supposing I neglected to prepare what
I promised you at Philadelphia. The truth is, I was in
such a hurry to get home, that I could think of nothing else.
As I set out to-morrow morning for Albany, I cannot,
from this place, send you the matter you wish.
Imagine, my dear Meade, what pleasure it must give
Eliza and myself to know that Mrs. Meade interests herself
in us. Without a personal acquaintance, we have been
long attached to her. My visit at Mr. Fitzhugh's confirmed
my partiality. Betsey is so fond of your family, that she
proposes to form a match between her boy and your girl,
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? 398 THE LIFE OF
provided you will engage to make the latter as amiable as
her mother.
Truly, my dear Meade, I often regret that fortune has
cast our residence at such a distance from each other, i It
would be a serious addition to my happiness if we lived
where I could see you every day^) but fate has determined
it otherwise. I am a little hurried, and can only request,
in addition, that you will present me most affectionately to
Mrs. Meade, and believe me to be, with the warmest and
most unalterable friendship,
Yours,
A. Hamilton.
Having completed his business at Philadelphia, he return-
ed to Albany ; took a house in the vicinity of General Schuy-
ler, to which he invited, as an inmate, his friend Colonel
Troup, who had previously studied the law, and with his
aid commenced to prepare himself for the practice of it.
To this dull pursuit, so foreign to all his previous habits,
such was his control of the powers of his intellect, that he
devoted himself with the most unremitting labour. His
retentive memory was tasked to its utmost. His habit
was to read while walking to and fro, and so incessant were
his labours, that his intimates would smile at the idea, that
while prosecuting this study, with the same diligence, he
might almost have marched from one end to the other of
the confederacy. At the ensuing July term of the supreme
court, he obtained a licence to practise.
Such was the knowledge he acquired during this short
period of four months, " that he composed a Manual on the
Practice of the Law," which, says Troup, "served as an
instructive grammar to future students, and became the
ground-work of subsequent enlarged practical treatises. "*
* There are gentlemen, now living, who copied this manual as their guide.
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? HAMILTON. 399
In the preceding autumn congress had recommended to
the several states to levy a separate tax for continental re-
quisitions, and had invested the Superintendent of Finance
with the power of appointing an officer in each state to re-
ceive these taxes; an idea not improbably suggested by
Hamilton's letter of September, 1780, intimating the im-
portance of appointing in each state a "continental super-
intendent. " While engaged in the prosecution of his legal
studies, he received the following letter from Robert Mor-
ris.
ROBERT MORRIS TO HAMILTON.
Office of Finance, Philadelphia, May 2d, 1782.
"SIK,
"Mr. Charles Stuart, late commissary general of issues,
has informed me that you are disposed to quit the military
line, for the purpose of entering into civil life. He, at the
same time, induced me to believe that you would accept the
office of receiver of the continental taxes in the state of New-
York. The intention of this letter is to offer you that ap-
pointment. The duties of the office will appear, in a great
degree, from the publications made by me on this subject.
In addition, it will be necessary that you correspond with
me frequently, and give accurate accounts of whatever
may be passing in your state, which it may be necessary
for this office to be acquainted with. For the trouble of
executing it, I shall allow a fourth per cent, on the monies
you receive. The amount of the quota called for from
New-York for the current year is, as you know, three hun-
dred and seventy-three thousand five hundred and ninety-
eight dollars.
"I make no professions of my confidence and esteem, be-
cause I hope none are necessary; but if they are, my wish
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? 400 THE LIFE OF
that you would accept the offer I make, is the strongest
evidence I can give of them. "
Hamilton made the following reply. "I had this day the
honour of receiving your letter of the second instant, and
am much obliged by the mark of your confidence which it
contains, and to Colonel Stuart for his friendly intentions
upon the occasion.
"My military situation has indeed become so negative,
that I have no motives to continue in it, and if my services
could be of importance to the public in any civil line, I
should cheerfully obey its command. But the plan which
I have marked out for myself is the profession of the law,
and I am now engaged in a course of studies for that purpose.
Time is so precious to me, that I could not put myself in
the way of any interruptions, unless for an object of con-
sequence to the public or to myself. The present is not of
this nature. Such are the circumstances of this state, that
the benefit arising from the office you propose, would not,
during the war, yearly exceed one hundred pounds; for
unfortunately, I am persuaded, it will not pay annually into
the continental treasury forty thousand pounds; and on a
peace establishment this will not be, for some time to come,
more than doubled. You will perceive that an engage-
ment of this kind does not correspond with my views, and
does not afford a sufficient inducement to relinquish them.
"I am not the less sensible to the obliging motives which
dictated the offer, and it will be an additional one to the
respect and esteem with which I have the honour to be,
very truly, sir,
"Your most obedient and humble servant. "
On the fourth of June Mr. Morris wrote to him, acknow-
ledging the receipt of this letter, and stating, "I am much
obliged by the friendly sentiments you express for me,
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? HAMILTON. 401
which, be assured, I shall retain a grateful sense of. I see
with you, that the office I had the pleasure of offering, will
not be equal to what your own abilities will gain in the profes-
sion of the law; but I did intend that the whole sum should
have been paid, although the whole quota of the taxes had
not been collected by the state; consequently, the object
is greater than you supposed, and the business might proba-
bly be effected without more attention than you could spare
from your studies. If so, I should still be happy in your
acceptance, and will leave the matter open until I have an
opportunity of hearing from you upon the subject. "
To which Hamilton gave the following answer:
HAMILTON TO MORRIS.
SIR,
* * * * The explanation which you give of your inten-
tion, in your late offer, makes it an object that will com-
pensate fully for the time that it will deduct from my other
occupations.
In accepting it, I have only one scruple,
arising from a doubt whether the service I can render in
the present stateWJf things, will be an equivalent for the
compensation. (The whole system, (if it may be so called,)
of taxation in this state, is radically vicious, burthensome
to the people, and unproductive to governmenfe-^As the
matter now stands, there seems to be little for a continen-
tal receiver to do. The whole business appears to be
thrown into the hands of the county treasurers; nor do I
find that there is any appropriation made of any part of the
taxes collected for continental purposes, or any provision
to authorize payment to the officer you appoint. This,
however, must be made. There is only one way in which
I can imagine a prospect of being materially useful; that
is, in seconding your applications to the state. In popu-
lar assemblies much may sometimes be brought about by
personal discussions, by entering into details, and combat-
vol. i. 51
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? 402 THE LIFE OF
ing objections as they rise. If it should, at any time, be
thought advisable by you to empower me to act in this ca-
pacity, I shall be happy to do every thing that depends
upon me to effectuate your views. I flatter myself, to you,
sir, I need not profess that I suggest this, not from a desire
to augment the importance of office, but to advance the
public interest.
It is of primary moment to me, as soon as possible to
take my station in the law, and on this consideration I am
pressing to qualify myself for admission the next term,
which will be the latter end of July. After this, should you
think an interview necessary, I will wait upon you in Phila-
delphia. In the mean time, I shall be happy to receive your
instructions, and shall direct my attention more particularly
to acquiring whatever information may be useful to my fu-
ture operations. I have read your publications at different
times, but as I have not the papers containing them in my
possession, it will be necessary that their contents should
be comprised in your instructions. A meeting of the legis-
lature is summoned early in the next month, at which, if I
previously receive your orders, it may be possible to put
matters in train. I am truly indebted to you, sir, for the
disposition you have manifested upon this occasion, and I
shall only add an assurance of my endeavours to justify your
confidence.
Alex. Hamilton.
On the second of July following, Mr. Morris writes, en-
closing the warrant of appointment and instructions, to
which he adds the following observations: -- "It gives me
singular pleasure, to find that you have yourself pointed out
one of the principal objects of your appointment. You will
find that it is specified in the enclosure. I must request
you to exert your talents, in forwarding with your legisla-
ture the views of congress. Your former situation in the
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? HAMILTON. 403
army, the present situation of that very army, your con-
nexions in the state, your perfect knowledge of men and
measures, and the abilities with which heaven has blessed
you, will give you a fine opportunity to forward the public
service, by convincing the legislature of the necessity of co-
pious supplies, and by convincing all who have claims on
the justice of congress, that those claims exist only by that
hard necessity which arises from the negligence of the
states. When to this you shall superadd the conviction,
that what remains of the war being a war of finance, solid
arrangements of finance must necessarily terminate favour-
ably, not only to our hopes, but even to our wishes. Then,
sir, the governments will be disposed to lay, and the people
to bear those burthens which are necessary; and then the
utility of your office, and of the officer, will be as manifest
to others as at present to me. "
On the receipt of this communication, Hamilton wrote
the following letter.
HAMILTON TO ROBERT MORRIS.
"I shall to-morrow morning commence a journey to
Poughkeepsie, where the legislature are assembled, and I
will endeavour, by every step in my power, to second your
views, though I am sorry to add, without very sanguine ex-
pectations. I think it probable the legislature will do some-
thing, but whatever momentary effort they make, till the
entire change of their present system, very little will be
done. To effect this, mountains of prejudice and particu-
lar interest are to be levelled. For my own part, consi-
dering the late serious misfortune to our ally, the spirit of
reformation, of wisdom, and of unanimity, which seems to
have succeeded to that of blunder, perverseness, and dis-
sension in the British government, and the universal reluc-
tance of these states to do what is right, I cannot help view-
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? 404 THE LIFE OF
ing our situation as critical, and I feel it the duty of every
citizen to exert his faculties to the utmost to support the
measures, especially those solid arrangements of finance,
on which our safety depends.
"It is not in the spirit of compliment, but of sincerity, I
assure you, that the opinion I entertain of him who presides
in the department, was not one of the smallest motives to
my acceptance of the office, nor will that esteem and con-
fidence which makes me now sensibly feel the obliging ex-
pressions of your letter, fail to have a great share in influ-
encing my future exertions. "
On his arrival at Poughkeepsie, Hamilton addressed a
letter, on the sixteenth July, to Governor Clinton, apprizing
him of his appointment, and requesting the legislature to
vest in him the necessary authority; stating that it was "a
part of his duty, to explain to the legislature, from time to
time, the views of the Superintendent of Finance, in pursu-
ance of the orders of congress, that they may be the better
enabled to judge of the measures most proper to be adopt-
ed for an effectual co-operation, and asking his excellency
to impart his request, to have the honour of a conference
with a committee of the two houses. "
This body had been convened, in an extra session, at the
express instance of a committee of congress, and was open-
ed with a forcible message from the Governor, urging the
importance of a revisal of the tax laws, and calling upon
the legislature to denounce the attempts of the British go-
vernment to make separate treaties with the states, as a
measure inevitably to be attended with ruin and infamy,
and pressing the importance of the most strenuous exer-
tions to expel the enemy from their territory, to which an
answer, prepared by General Schuyler, who was the leader
in the senate, responded in the strongest terms. On the
twentieth July, the senate adopted a series of resolutions,
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? HAMILTON. 405
declaring their opinion, "that the present system of these
states exposes the cause to a precarious issue; that the
radical source of most of the embarrassments is the want
of sufficient power in congress to effectuate that ready and
perfect co-operation of the different states, on which their
immediate safety and future happiness depends; that ex-
perience had demonstrated the confederation to be defect-
ive in several essential points, particularly in not vesting
the federal government, either with a power of providing
revenue for itself, or with ascertained and productive funds,
secured by a sanction so solemn and general, as would in-
spire the fullest confidence in them, and make them a sub-
stantial basis of credit; and that it is essential to the com-
mon welfare, that there should be, as soon as possible, a
conference of the whole states on the subject, and that it
would be advisable, for this purpose, to propose to congress
to recommend, and to each state to adopt, the measure of
assembling a general convention of the states, specially au-
thorized to revise and amend the confederation, reserving
a right to the respective legislatures to ratify their deter-
minations. "
These resolutions, in which the hand of Hamilton so dis-
tinctly appears, were adopted unanimously,* and within
two days after, a joint committee of both houses was, at his
instance, appointed to report, at the next session, a system
for establishing such funds, within the state, as were best
suited to answer its purposes and those of the United
States, and for the more effectual collection of taxes, -- at
the head of which was General Schuyler, through whose
influence Hamilton was, on the same day, elected a Dele-
gate to congress.
It is interesting, in the progress of this work, to remark,
that to him who had so long laboured to impress on others
* July 22d, 1782.
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? 400 THE LIFE OF
the importance of a new organization of the government,
and who had so large a share in its formation, adoption,
and exposition, is to be attributed, with the aid of Schuy-
ler, the first action of the state of New-York, towards this
primary object. * In a letter to Mr. Morris, of this date,
Hamilton thus speaks of the result of his exertions:
HAMILTON TO ROBERT MORRIS.
"Poughkeepsie, July 22, 1782.
"SIR,
"Agreeable to my letter to you from Albany, I came to
this place, and had an interview with a committee of the
legislature, in which I urged the several matters contained
in your instructions. I strongly represented the necessity
of solid arrangements of finance, and by way of argument,
pointed out all the defects of the present system. I found
every man convinced that something was wrong, but few
that were willing to recognise the mischief when defined,
and consent to the proper remedy. The quantum of taxes
already imposed is so great, as to make it useless to impose
any others to a considerable amount; a bill has, however,
passed both houses, payable in specie, bank notes, or your
notes, for eighteen thousand pounds.
"It is at present appropriated to your order, but I doubt
whether some subsequent arrangement will not take place
for a different appropriation. The commander-in-chief has
applied for a quantity of forage, which the legislature is de-
vising the means of furnishing, and I fear it will finish by
diverting the eighteen thousand pounds to that purpose. I
have, hitherto, been able to prevent this; but as it is of
indispensable importance to me to leave this place imme-
diately, to prepare for an examination, for which I have
pledged myself the ensuing term, which is at hand, it is
* It is believed to be the first proceeding of any state on this subject. ?
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? HAMILTON. 407
possible, after I have left it, contrary ideas will prevail.
Efforts have been made to introduce a species of negotiable
certificates, which I have strenuously opposed. It has not
yet taken place, but I am not clear how the matter will
terminate. Should the bill for the eighteen thousand
pounds go out, in its present form, I cannot hope that it
will produce in the treasury above half the sum, -- such are
the vices of our present mode of collection. A bill has
also passed the assembly, for collecting arrearages of taxes,
payable in specie, bank notes, your notes, old continental
emissions at one hundred and twenty-eight for one, and a
species of certificates issued by the state, for the purchase
of horses. This is now before the senate; the arrearages
are very large.
"Both houses have unanimously passed a set of resolu-
tions, to be transmitted to congress and the several states,
proposing a convention of the states, to enlarge the powers
of congress, and vest them with funds. I think this a very
eligible step, though I doubt of the concurrence of the other
states; but I am certain without it, they never will be
brought to co-operate in any reasonable or effectual plan.
Urge reforms or exertions, and the answer constantly is,
what avails it for one state to make them, without the con-
sent of the others? It is in vain to expose the futility of this
reasoning. It is founded on all those passions which have
the strongest influence on the human mind.
"The legislature have also appointed, at my instance, a
committee to devise, in its recess, a more effectual system
of taxation, and to communicate with me on this subject.
A good deal will depend on the success of this attempt.
Convinced of the absurdity of multiplying taxes in the pre-
sent mode, when in effect the payment is voluntary, and
the money received exhausted in the collection, I have la-
boured chiefly to instil the necessity of a change in the
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? 408 THE LIFE OF
plan, and though not so rapidly as the exigency of public
affairs requires, truth seems to be making some progress.
"There is no other appropriation to the use of congress
than of the eighteen thousand pounds.
"I shall, as soon as possible, give you a full and just view
of the situation and temper of this state. This cannot be
till after my intended examination; that over, I shall lay
myself out in every way that can promote your views, and
the public good. I am informed, you have an appointment
to make of a commissioner of accounts for this state. Per-
mit me to suggest the expediency of choosing a citizen of
the state, a man who, to the qualifications requisite for the
execution of the office, adds an influence in its affairs. I
need not particularize the reasons for this suggestion. In
my next I will also take the liberty to mention some cha-
racters. I omitted mentioning, that the two houses have
also passed a bill, authorizing congress to adjust the quotas
of the states, on equitable principles, agreeable to your re-
commendation. "
After the adjournment of the legislature, and his admis-
sion to the bar, Hamilton devoted himself assiduously to the
duties which the urgent solicitations of Mr. Morris earnest-
ly pressed.
The pictures which are given in his letters of this period
are of the most gloomy cast. Double sets of officers,
with conflicting powers and duties, clogging their respec-
tive operations; taxes, far beyond the ability of the peo-
ple, to be collected through a medium reduced to the low-
est point, and almost consumed in the process of collection;
while a general system of connivance and fraud pre-
vailed in many of the subordinate departments, which fur-
nished the strongest inducements to check the inquiries,
and prevent the adoption of the suggestions of an officer,
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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.
