I proceed on the idea of 5 per cent interest-taking at the same time into calculation the partial irredeemability of the 6 per cents. I give you my standard that you may be able, if necessary, to contradict insinuations of an estimation on my part short of that standard-for the purpose of depressing the funds. Yours, sincerely and affectionately, HAMILTON TO SETON. A. HAMILTON. PHILADELPHIA, August 16th, 1791. I send you herewith an official letter; this private one I write as explanatory of it. I hardly expect that you will be able to procure the debt within the limits prescribed, and yet I do not know what effect the imprudent speculations in bank scrip may produce. A principal object with me is to keep the stock from falling too low in case the embarrassments of the dealers should lead to sacrifices; whence you will infer that it is not my wish that the purchases should be below the prescribed limits, yet if such should unfortunately be the state of the market, it must of course govern. The limits assigned for the purchases of 3 per cents and deferred debt are founded on a calculation of the gov ernment rate of interest being 5 per cent; the same rule has not been extended to the stock bearing an immediate interest of 6 per cent, because the government have a right to redeem it at par in certain proportions; and though to individual purchasers it is worth more than par, because a part only can be redeemed, yet it is not at present the interest of the government to give more than par for it, because of the right to redeem a part. Indeed, the law limits the commissioners in this particular. You will recollect that the act requires that the purchases should be made openly; this has been construed to mean by a known agent, for the public: when you make a purchase, therefore, it will be proper that it should be understood that it is on account of the United States, but this need not precede the purchase; and it will be best that there should be no unnecessary demonstration, lest it should raise hopes beyond what will be realized. MY DEAR FRIEND: HAMILTON TO DUER. PHILADELPHIA, August 17th, 1791. I have received your two letters of the 12th and 10th. The subscription-book for the Manufacturing Society did not remain with me nor with either of the two gentlemen who came on with me. Is it with neither of those who accompanied you? If it is not, it must have been left at Brunswick, and you will do well to write to some trusty person there to look it up and send it to you. I am impatient for the alterations which were agreed upon, and a list of the subscribers. La Roche may go to Scioto, if he can be back in the time you mention. I fear that in the hurry of writing my letter on the subject of bank scrip, I must have expressed myself more strongly than was intended, The conversation here was, "Bank scrip is getting so high as to become a bubble," in one breath; in another, ""Tis a South Sea dream;" in a third, "There is a combination of knowing ones at New-York to raise it as high as possible by fictitious purchases, in order to take in the credulous and ignorant;" in another, "Duer, Constable, and some others, are mounting the balloon as fast as possible-if it don't soon burst thousands will rue it," &c., &c. As to myself, my friend, I think I know you too well to suppose you capable of such views as were implied in those innuendoes or to harbor the most distant thought that you could wander from the path either of public good or private integrity. But I will honestly own, I had serious fears for you-for your purse and for your reputation; and with an anxiety for both I wrote to you in earnest terms. You are sanguine, my friend. You ought to be aware of it yourself, and to be on your guard against the propensity. I feared lest it might carry you further than was consistent either with your own safety or the public good. My friendship for you, and my concern for the public cause, were both alarmed. If the infatuation had continued progressive, and any extensive mischiefs had ensued, you would certainly have had a large portion of the blame. Conscious of this, I wrote to you in all the earnestness of apprehensive friendship. I do not widely differ from you about the real value of bank scrip. I should rather call it about 190 to be within bounds, with hopes of better things, and I sincerely wish you may be able to support it at what you mention. The acquisition of too much of it by foreigners will certainly be an evil. Yours, sincerely and affectionately, WM. DUER, Esq. PEARSON TO HAMILTON, A. HAMILTON. CAMBRIDGE, September 10th, 1791. SIR: I feel myself happy in the honor of acquainting a gentleman of Mr. Hamilton's merited distinction, that the American Academy of Arts and Sciences has elected him a Fellow; of which the instrument herewith transmitted is a certificate, executed in the usual form. With sentiments of highest esteem, I have the honor to be, &c. SETON TO HAMILTON. DEAR SIR: NEW-YORK, September 12th, 1791. I had the pleasure to receive your letter of the 7th by Mr. Eddie on Friday morning, but not early enough to answer you with propriety by that post. The bearer of the letter I apprehend knew or conjectured the contents, as it flew over the town like wildfire that I had orders to purchase. Therefore, before I got to the coffee-house, at noon, every one was prepared, and no one would offer to supply at less than the former price. I thought it prudent to accept at that; and, to diffuse the benefit, I divided the purchases into 5,000 dollar lots, and held them at that, so long as to give every one a chance; and be assured it has been a very great relief. Scrip, since I wrote you last, has been down to 110, and great sacrifices made. Saturday and to-day they have gone at 135 to 145, and rather bear the appearance of rising. They are now getting into the proper hands, and I have no doubt will soon come up to their real value, if the price of the other funds can be now and then supported by your purchases. You have the blessings of thousands here; and I feel gratified, more than I can express, at being the dispenser of your benevolence. HAMILTON TO WASHINGTON. PHILADELPHIA, October 11th, 1791. SIR: Lord Wycomb having mentioned to me his intentions to pay you his respects at Mount Vernon, I beg your permission to present him to you. The personal acquirements and merits of his lordship conspire, with a consideration for the friendly dispositions and lib eral policy of his father, the Marquis of Lansdown, towards this country, to constitute a claim in his favor to cordial notice. I have the honor to be, With the most respectful attachment, &c. FRY TO HAMILTON. DEAR SIR: LONDON, November 2d, 1791. The interest you must necessarily take in all information relative to the state of American credit in Europe-having so essentially contributed to its establishment-induces me to communicate some facts, which, from peculiar circumstances, I am possibly better acquainted with than most others. The American funds had inspired no confidence in this market, till they had acquired a high price at home; and three months ago, a sale of them must have been effected here with the greatest difficulty.. The case is now so materially altered, that one friend of mine has bought and sold nearly a million of dollars-chiefly 6 per cent. stock-and another about half that amount, at prices gradually increasing from 98 to 120 per cent.; which latter price, when exchange is at 175 per cent. in Philadelphia, is equal to 25s. Three per cents have also risen, and are now at from 72 to 75 per cent.; and it appears to me that no fluctuations in America will have any essential influence on the rates in this market, whilst the sources of revenue on which the interest depends remain productive and secure. The orders from France for American stock in London, would, indeed, much enhance the present price, had not such unfavorable accounts of stock been lately received in Philadelphia; nevertheless, the price does not sink, because nobody here knows what to do with money. If it be an object with you, sir, now the funds bear so fair a price, to promote the sale of them here, that the incumbered landholder in America may eventually feel the |