Cæsar's wife. I think the spirit of it applicable to every man concerned in the administration of the finance of a country. With respect to the conduct of such men, suspicion is ever eagleeyed. And the most innocent things may be misinterpreted. Be assured of the affection and friendship of your

WADSWORTH TO HAMILTON.

A. HAMILTON.

DEAR SIR:

HARTFORD, December 17th, 1789.

The author of the Observer has in view to procure the good will of the citizens of this State to the National Government, and to have the State debts adopted. He will go on if none of his projects oppose yours-have you read him? The next week will produce an Observer, which proposes a land tax, and reprobates a mode of collection. I wish you would read them, and if you find nothing which you disapprove, say so.

The time draws near when Congress meet. I shall be called on for a militia bill-you know who I expect it from. Hitherto the merchants of this State have been nearly unanimous in their support of the impost-but they are greatly agitated at the prospect of being obliged to pay the duties which arose before the office was opened. There will be so many actions brought, and such disgust given, that I fear the evil will be greater than the good. I am, dear Sir, Sincerely your friend,

JEREMIAH WADSWORTH.

DEAR HAMILTON:

MORRIS TO HAMILTON.

PARIS, Jan. 31st, 1790.

I did expect that in congratulating you, which I do most sincerely, upon your appointment, I should have communicated a matter which would have administered much ease and convenience to the affairs of your department. I learn this morning, that these expectations are frustrated from a quarter and in a manner which would excite my surprise, had I not long since acquired the habit of wondering at nothing. I will tell you a plain story.

M. Necker, pressed for money, had listened to overtures for selling the debt of the United States, and mentioned the matter to some members of the National Assembly, by which means it became known to the principal Americans, and friends of America here. I own, that upon the first mention of the matter, it appeared to me a thing of indifference, and so I expressed myself. Our duty is to pay to such creditors as may possess the demand. But further information placed the affair in a different point of light. It appeared that the offer was for a small part, at a great discount; and that the terms of the bargain were to be debated in the National Assembly, and consequently our reputation sported with. Mr. Short did every thing in his power, but having no pointed instructions, could only express the result of his own judgment and feelings. But the minister was pressed for money, and he had the offer of money. Under these circumstances, in connection with a society of friends to America, I made M. Necker an offer, such as in my conception was honorable to France, to America, and to the parties. This proposition (after stating the amount of the principal and interest which would be due on the first of January, 1790, and considering that as a new capital on which the interest was to run) contains the following terms: "Ou propose de l'acquérir du gouvernment, et à cet effet de l'acquitter en entier par des rentes perpétuelles de la France montantes à la même somme." This payment was to be made in

the year 1790 and 1791; consequently, so far as France is concerned, the offer went to a full, complete, and entire payment, and that at a much earlier period than is stipulated by the terms of the loans themselves. To this was added a further offer, in case the situation of affairs in this kingdom should require it, in the following terms: "Ou se chargera de solder en argent la moitié de la dite rente aux prix courant des effets royaux." This part of the offer has no other merit than to secure to the minister the sale of the French effects, if he thought proper, and is therefore a matter rather of convenience than advantage. I communicated this plan, beforehand, to Mr. Short and to the Marquis de Lafayette, who both considered it as an excellent means of saving at the same time the honor and interest of America, while it furnished a useful resource to France. I showed it also to Monsieur de Montmorin, who, having well weighed and considered it, assured me that he most heartily approved it, and would do every thing in his power to secure the success.

In the supposition that this plan were adopted here, application was to be made through you to the United States, to pay the amount of this debt in obligations for current guilders, calculating the exchange at par; those obligations to bear five per cent. interest, and to be paid in instalments, the first of which to commence five years hence. Consequently, as the Society was to bear all the charges of negotiation, &c., &c., it follows clearly that the United States would have obtained the needful time required for their accommodation without a farthing of expense, and without the pain of soliciting it from this court. It was therefore equally honorable and useful for them. It was honorable also to the parties. First, because they became eminently useful to the societies of which they are respectively members; and, secondly, because the advantage, if any, which they were to derive, would result merely from a careful and industrious attention to the variations of the exchange and fluctuations in the effects, and from the use of their funds and credit to make investments at the proper times and seasons, which, as far as the sum of forty millions of livres and upwards can go, must necessarily have sus

tained the value of the stocks here. And you will observe that this was clearly stated and understood.

The proposition was delivered to M. Necker, on the fifth of December. You will observe, that in framing it, we counted upon the aid of money-lenders in Holland; and in preference to others, upon the commissioners of the United States. We learned, however, that these gentlemen had, notwithstanding the remonstrances of Mr. Jacob Van Staphorst, who has a real and warm regard for America, joined with those who made the offer to M. Necker.

Through the channel that brought us this information, an interview was brought about between Monsieur de la Chaise and Mr. Van Staphorst, charged with the final proposition to M. Necker and me. I told those gentlemen, that I was convinced their offer could not be accepted, (by the by, M. Necker had told me that the sum offered was not sufficient,) and that, if accepted by the minister, it could not be adopted by the Assembly, and that they risked doing great injury to America without any advantage to themselves; that I would communicate to them an offer I had made, and which I had great reason to believe would be adopted; that I would offer them an interest in it, or a commission, at their option; that if they should not approve of holding a concern, I would then lie still, and let them make the most of their plans without opposition, but asked the assurance on the part of themselves and of their principals, (those whom they represented,) that if they found their own scheme impracticable, and did not choose to adventure with me, they should only not oppose. This being solemnly promised, I stated the matter to them at large, and they came so fully into my views, as to withhold the proposition they were directed to make, and send an express on the subject to Amsterdam.

The interview was on the 11th of December, in the evening. Some further discussions were needful, which we had the next day. I avoided going to M. Necker's, because I was to do nothing which would defeat their plan. On the 26th, Mr. Hubbard, partner of the house of Staphorst, arrived, charged to make their offer, with a budget of reasons in support of it. This

offer was to purchase the 6,000,000 at a discount of about eleven per cent. It was made immediately; and on the morning of the 28th he called on me, in company with Mr. Van Staphorst.

I had been repeatedly assured from different quarters, that M. Necker was ready to treat with me, but I had not put myself in his way. The conversation with Mr. Hubbard was not very long. I heard what he had to say, and replied with great precision, but so as to change entirely his opinion. You will not wonder at this, when I tell you the purport of the objections he had brought forward: first, that it was too profitable to the parties; secondly, too burdensome to France; and thirdly, might injure the credit of America by selling the obligations too low. To the first I replied by a smile, and the assurance that I never expected such an objection from Holland. This disconcerted him. To the second, I answered, that M.Necker understood his own business, and might safely be trusted in making a bargain; but I showed him further, that the bargain was a good one. To the last I made the answer, which I am sure you have already made in your own mind, viz., that if the commissioners of the United States could safely be trusted in making negotiations, where the loss was to be borne by their employers, à fortiori might they be trusted where the loss was to be borne by themselves.

As all this was merely ostensible, I pressed him hard for the real reasons, but could get nothing more than assurances that there were no other than those above mentioned. As these were clearly refuted, of course he acknowledged himself converted; but Hudibras has very well observed, that

"Who's convinced against his will,

Is of the same opinion still."

A more effectual change was wrought by M. Necker, who, on the second of this month, refused their offer. On the morning of the third, Mr. Hubbard called and informed me of this, and in the afternoon of the fifth, he set off for Amsterdam, apparently desirous of bringing all his friends into my views. The business went on but slowly in Amsterdam; and Mr. Jacob Van Staphorst was amused from time to time, and amused me, with