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| Field name |
Value |
| Collection Reference Number
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GLC04785
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| From Archive Folder
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Documents Relating to 1791
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| Title
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Alexander Hamilton to William Seton instructing him to spend money to ensure confidence in the credit of the USA
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| Date
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16 August 1791
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| Author
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Hamilton, Alexander (ca. 1757-1804)
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| Recipient
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Seton, William
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| Document Type
|
Correspondence
|
| Content Description
|
A confidential letter instructing the Cashier of the Bank of New York, Seton to spend up to $150,000 on the open market to buy outstanding debt-securities, in hopes that it will shore up confidence in the credit of the United States. At the time of this letter Hamilton was Secretary of the Treasury. Because of the limitations of Seton's funds, this action was only moderately successful.
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| Subjects
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Finance Economics Banking Government and Civics
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| People
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Hamilton, Alexander (ca. 1757-1804) Seton, William (1746-1798)
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| Place written
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Philadelphia, Pennsylvania
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| Theme
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Banking & Economics; Industry; Government & Politics
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| Sub-collection
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The Gilder Lehrman Collection, 1493-1859
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| Additional Information
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Signer of the U.S. Constitution.
|
| Copyright
|
The Gilder Lehrman Institute of American History
|
| Module
|
Settlement, Commerce, Revolution and Reform: 1493-1859
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| Transcript
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Show/hide Private Philadelphia Aug. 16, 1791 My Dear Sir I send you herewith an official letter. This private one I [struck: illegible] write as explanatory of it. I hardly expect that you will be able to procure the debt wither the limits prescribed_ And yet I do not know what effect the imprudent speculations in Bank Script may produce. A principal object with me is to keep the Stock from falling too low in case the embarrassments of the dealer should lead to sacrifices; whence you will infer that it is not my wish that the principals should be below the prescribed limits. Yet if such should unfortunately be the state of the market it must of course govern. The limits aligned for the principals of Three per Cents and deferred debt [inserted: founded] are on a calculation of the Government rate of interest being 5 pCt. The same rule has not been extended to the Stock bearing an immediate interest of 6 pCt. 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 part for it, because of the right to redeem a part. Indeed the law limits the Commissioners in this particular. You 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 proceed the purchase, and it will be left there should be no unnecessary demonstration lest it should raise hopes beyond what will be realized. Yrs. With great regard A. Hamilton Wm. Seton Esqr. See the other side P.S. If [inserted: pieces of] the stocks should exceed the prescribed limits, you [struck: need] may retain the letter to the D[illegible]. If there are any Gentlemen who support the funds and others who depress them, I shall be pleased that your purchases may aid the former. This is great confidence__
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