ment for national exigencies the complete command
of the national resources, the consolidation of public
credit. These were the commanding motives, and it
is believed they were solid.
It is understood that a contrary course has been
a principal cause of embarrassment in the United
Netherlands. The separate debts of the different
30 Alexander Hamilton
provinces have been an endless source of perplexity
and financial imbecility.
But for the same reason that the effect of the
assumption to strengthen the government was a
feeble or ambiguous motive, its importance as an
objection, in the views of those who fear the over-
bearing power of the General Government, has been
much exaggerated. What solid ground was there for
all the declamation which has represented this meas-
ure as a premeditated plan for overthrowing the
State Governments and consolidating the States into
one? What room was there, in a matter of so tem-
porary and partial an operation, for the dreadful
alarms which were felt or affected?
The inconvenience of an early resort to modes of
taxation which run counter to public prejudices, has
been mentioned. Its force was felt; but then, in
addition to the reasons immediately connected with
the measure, — which led to it, there were collateral
ones which united to meet it.
The current of popularity immediately after the
adoption of the government ran strongly in its favor.
The immediate Chief Magistrate justly united in his
person the full confidence and cordial regard of the
nation.
It was not to be doubted that intrigues to un-
popularize the government would go on — that the
passions incident to faction, the natural disease of
popular governments, would grow and multiply — that
the rivalships of power would increase. And it was
to be feared that greater difficulties might exist at a
future day to introduce the most difficult species of
The Funding System 31
revenues, however necessary they might be in the then
stage of our affairs. The delay in establishing them
might even be construed into an implied condemna-
tion of them, and might be rendered an argument
against their future introduction. Even negative
precedents in such cases are not without force. While
the advantages of present situation facilitated the in-
troduction of these revenues at the time, the obstacles
that might be afterwards created rendered it advis-
able to occupy the ground, and to avoid, by anticipat-
ing, difficulties. The presidency of the actual Chief
Magistrate was a more favorable period than was
likely in a short time to recur to establish points
favorable to the just and necessary efficiency of the
government.
Besides that, it would probably have been in the
long run an unwise calculation, even of popularity,
for the government to have omitted the measure of
assumption. A weak and embarrassed government
never fails to be unpopular. It attaches to itself the
disrespect incident to weakness, and, unable to pro-
mote the public happiness, its impotencies are its
crimes. Without the assumption, the government
would have been for a long time at least under all
the entanglements and imbecilities of a complicated
clashing and disordered system of finance.
The foregoing considerations appeared to me de-
cisive for proposing an assumption of the State debts.
Experience has not led me to repent the measure, and
I believe it will more and more recommend itself even
t» its enemies.
In the course of the remarks which have been made,
32 Alexander Hamilton
the considerations which combated the mode of pro-
ceeding with regard to assumption — namely, an entire
assumption of the State debts and a dereliction of the
settlement of accounts, have been anticipated. The
state of public opinion was an insuperable obstacle.
Almost every State flattered itself with being a cred-
itor, and imagined a particular interest in a settle-
ment. The renunciation of it would consequently
have destroyed the confidence and disturbed the
harmony of the States, else it would undoubtedly
have been the best policy and as good justice to
have renotmced it. There was no ground of pro-
cedure more likely to promote mutual justice and
convenience, than to assume as a principle that each
State in the war had exerted itself to the extent of its
faculties, that the subsisting debts were to be paid out
of a common treasury, and that all retrospection and
reliquidation between the States were to be aban-
doned. But this great and liberal measure was
impossible. All parties accordingly concurred in
demanding a settlement.
The course of the argument has stated and replied
to all the objections to the assumption except one.
This is that it has tended to increase the mass of the
debt.
This observation has frequently been so managed
as to infuse into the minds of many, a vague, confused
conception that the public debt of the country has
been augmented in mass to the extent of the aggre-
gate sum of State debts assumed. But it were
absurd to attempt a refutation of this idea. It is
self-evident that the assumption in this respect did
The Funding System 33
nothing more than transfer the particular debts to the
Union. It united fourteen sums in one, and charged
them upon one responsibihty, that of the Union,
instead of leaving them to exist separately, charge-
able on the separate responsibilities of the Union and
the individual States. The debt of the Union was in-
creased, but the debts of the several members of it
were proportionably decreased. The mass of public
DEBT consequently remained the same, on the in-
fallible evidence of a mathematical axiom that a
WHOLE cannot be greater than its parts.
But the objection has had a more particular signifi-
cation. It has amounted to this, that the debts of
the States have been twice provided for, once to the
individual creditors who held evidences of State
debts, and once to the States in whose favor balances
were found at the settlement. This objection, like
most others from the same quarter, has been pre-
sented in a shape so general, inexplicit, and naked
of explanation, that it is not easy even to compre-
hend, much less to answer it. It probably turns
on a sophism or error which supposes the same
item of service or supply twice represented, once
in the evidence or voucher given by the State to
the person who served or supplied, and once in the
account of the State as a charge against the United
States.
But this supposition of double representation over-
looks the material fact that by the plan of settlement
according to the assumption the sums assumed by the
United States to individuals are charged to the State
which incurred them, and so balance and extinguish
VOL. IX.— 3.
34 Alexander Hamilton
the correlative charge for the service or supply which
was the origin of the debt.
Moreover, it is manifest in point of result that the
objection can have little if any foundation/
* The conclusion of this paper is lacking. All that remains imprinted
is an imperfect outline of a proof, by figures, of the proposition that
no part of the debt was paid twice.
PRIVATE CORRESPONDENCE
3S
Note. — A few words of explanation only are needed in addition to
what has already been said in the preface to this edition as to the
private correspondence. The letters are all from Hamilton, and,
being arranged chronologically, constitute to a certain extent an
autobiography. They may be divided into three classes : those which
were printed in the edition of 1850; those which have been printed
elsewhere and were not included in that edition; and those which are
now printed for the first time from the original manuscripts. The
letters in the edition of 1850, except in the few cases where the original
has been lost, have all been carefully collated, thanks to the tmtiring
kindness of Mr. D wight, who was at that time the librarian of the
State Department, with the originals in the Hamilton papers. As first
published, they abounded in errors, for the most part verbal, but some-
times more serious. These errors have been corrected, and the text is
now believed to be correct. The letters now first printed have been
drawn from many sources and have all been carefully transcribed and
collated. Those which have been printed elsewhere than in the edition
of 1850 have been collated with the originals so far as it could be done.
Unfortunately this was impossible in some instances, and particularly
in the case of several letters which are to be found only in J. C.
Hamilton's History of the Republic. Every effort has been made to
secure all the Hamilton letters extant, not only by private research,
but by public advertisement, and the editor believes that compara-
tively few letters of any importance have escaped him. Every letter
of the slightest historical value which has come under the notice of
the editor is given in full in the following pages, and all letters devoid
of historical or personal interest have been scrupulously excluded.
The source of every letter given here is indicated, except in the case
of those reprinted from the edition of 1850. The notes are intended
merely to explain the object of the letter when it is obscure, or to
identify the persons to whom the letters are addressed or who are
mentioned incidentally by the writer.
36
PRIVATE CORRESPONDENCE
TO EDWARD STEVENS'
St. Croix, Nov. ii, 1769.
THIS just serves to acknowledge receipt of yours
per Capt. Lowndes, which was delivered me
yesterday. The truth of Capt. Lightbowen and
Lowndes' information is now verified by the presence
of your father and sister, for whose safe arrival I
pray ; and that they may convey that satisfaction to
your soul that must naturally flow from the sight of
absent friends in health; and shall, for news this
way, refer you to them. As to what you say respect-
ing your having soon the happiness of seeing us all, I
wish for an accomplishment of your hopes, provided
they are concomitant with your welfare; otherwise
not; though I doubt whether I shall be present or
not, for, to confess my weakness, Ned, my ambition
is prevalent, so that I contemn the grovelling con-
dition of a clerk or the like, to which my fortune, etc. ,
condemns me, and would willingly risk my life,
though not my character, to exalt my station. I am
confident, Ned, that my youth excludes me from any
» Edward Stevens, the friend of Hamilton's boyhood, was the son of
Mr. Stevens, a West India planter and merchant. Hamilton's relations
with the Stevens family were very intimate, and young Stevens ac-
companied him to this country where they both were educated.
37
3^ Alexander Hamilton
hopes of immediate preferment; nor do I desire it;
but I mean to prepare the way for futurity. I 'm no
philosopher, you see, and may justly be said to build
castles in the air; my folly makes me ashamed, and
I beg you '11 conceal it; yet, Neddy, we have seen
such schemes successful when the projector is con-
stant. I shall conclude saying, I wish there was a
war.
P. S. — I this morning received yours by William
Smith, and am pleased to see you give such close ap-
plication to study.
TO TILEMAN CRUGER *
St. Croix, Nov. i6, 1771.
In behalf of Mr. Nicholas Cruger ^ (who, by reason
of a very ill state of health, went from this to New
York, the 15th ult.), I have the pleasure to address
you by the long-expected sloop Thunderbolt, Capt.
William Newton, owned by Messrs. Jacob Walton,
John Harris, and Nicholas Cruger, the latter of whom
has written you fully concerning her destination,
which I need not repeat. She has on board besides
a parcel of lumber for yourself, sundry articles on
account of her owners as per inclosed bill of lading;
and when you have disposed of them, you will please
to credit each partner for one third of the proceeds.
Mr. N. Cruger 's proportion of this, and the balance
^ This letter is one of a number of similar letters written by Hamilton
while a clerk in Mr. Cruger's coion ting-room. It is given merely as a
specimen of his business correspondence which was certainly remark-
able for a boy of fourteen.
» The gentleman in whose office Hamilton was employed.
Private Correspondence 39
of your account hitherto, will more than pay for his
one third cost of her first cargo up ; and for the other
two, I shall endeavor to place value in your hands
betimes. I only wish for a line from you to know
what will best answer.
Reports here represent matters in a very disagree-
able light, with regard to the Guarda Costas, which
are said to swarm upon the coast ; but as you will be
the best judge of what danger there might be, all is
submitted to your prudent direction.
Capt. Newton must arm with you, as he could not
so conveniently do it here. Give me leave to hint to
you that you cannot be too particular in your instruc-
tions to him. I think he seems to want experience in
such voyages. Messrs. Walton and John H. Cruger
are to furnish you themselves with their respective
proportion of the cost of the several cargoes.
The staves on board, if by any means convenient, I
beg may be returned by the sloop; they will com-
mand a good price here, and I suppose little or no-
thing with you; could they be got at I would not
send them down, but they are stowed promiscuously
among other things.
If convenient, please to deliver the hogsheads, now
containing the Indian meal, to the captain as water
casks, and others should he want them. I supplied
him with twenty here. I must beg your reference to
Mr. Cruger's last letter of the 2d ult. for other par-
ticulars.
Our crop will be very early, so that the utmost
dispatch is necessary to import three cargoes of
mules in due time.
40 Alexander Hamilton
TO THE PROVINCIAL CONGRESS OF NEW YORK '
New York, May 26, 1776.
Gentlemen:
I take the liberty to request your attention to a
few particulars, which will be of considerable import-
ance to the future progress of the company under
my command : and I shall be much obliged to you for
as speedy a determination concerning them as you
can conveniently give. The most material is respect-
ing the pay. Our company, by their articles, are to
be subject to the same regulations, and to receive the
same pay, as the Continental Artillery. Hitherto I
have conformed to the standard laid down in the
Journal of the Congress, published the loth May,
1775; but I am well informed that, by some later
regulation, the pay of the Artillery has been aug-
mented, and now stands according to the following
rates: Captain, ;^io. 13. 4. Captain-Lieutenant, ;^8.
Lieutenants, each, £"]. 6. 8. Sergeants, £2>' 6. 8.
Corporals, £2>- i- 4- Bombardiers, £2,. i. 4. Gun-
ners, ;^3. Matrosses, £2. 17. 4. Drummers and
Fifers, £2>- ^Y comparing these with my pay-rolls,
you will discover a considerable difference; and I
doubt not you will be easily sensible that such a
difference should not exist.
I am not personally interested in having an aug-
mentation agreeably to the above rates, because my
own pay will remain the same as that it now is : but I
make this application on behalf of the company; as
I am fully convinced such a disadvantageous distinc-
* Hamilton was at this time captain of an artillery company of the
New York troops.
Private Correspondence 41
tion will have a very pernicious effect on the minds
and behavior of the men. They do the same duty
with the other companies, and think themselves
entitled to the same pay. They have been already
comparing accounts ; and many marks of discontent
have lately appeared on this score. As to the cir-
cumstance of our being confined to the defence of the
colony, it will have little or no weight; for there are
but few in the company, who would not as willingly
leave the colony on any necessary expedition, as stay
in it: and they will not, therefore, think it reasonable
to have their pay curtailed on such a consideration.
Captain Beauman, I understand, enlists all his men
on the above terms ; and this makes it difficult for me
to get a single recruit: for men will naturally go to
those who pay them best. On this accoimt, I should
wish to be immediately authorized to offer the same
pay to all who may be inclined to enlist. The next
thing I should wish to know, is, whether I must be
allowed my actual expenses that might attend the
enlistment of men, should I send into the country
for that purpose. The expense would not be great ;
and it would enable me to complete my company at
once, and bring it the sooner into proper order and
discipline.
Also, I should be glad to be informed if my com-
pany is to be allowed the frock which is given to the
other troops as a bounty. This frock would be ex-
tremely serviceable in summer, while the men are on
fatigue ; and would put it in their power to save their
uniform much longer. I am, gentlemen, with the
greatest respect, etc.
42 Alexander Hamilton
TO THE PROVINCIAL CONGRESS
July 26, 1776.
Gentlemen :
I am obliged to trouble you to remove a difficulty
which arises respecting the quantity of subsistence
which is to be allowed my men. Inclosed you have
the rates of rations, which is the standard allowance
of the whole Continental, and even the provincial,
army; but it seems Mr. Curtenius cannot afford to
supply us with more than his contract stipulates;
which, by comparison, you will perceive is consider-
ably less than the forementioned rate.
My men, you are sensible, are, by their articles,
entitled to the same subsistence with the Continental
troops and it would be to them an insupportable dis-
crimination, as well as a breach of the terms of their
enlistment, to give them almost a third less provisions
than the whole army besides receives. I doubt not
you will readily put this matter upon a proper footing.
Hitherto we have drawn our full allowance from
Mr. Curtenius; but he did it upon the supposition
that he would have a farther consideration for the
extraordinary supply.
At present, however, he scruples to proceed in the
same way, till it can be put upon a more certain
foundation. I am, gentlemen, etc.
TO THE HONORABLE CONVENTION OF NEW YORK
New York, August, 1776.
It is necessary I should inform you that there is
at present a vacancy in my company, arising from
the promotion of Lieut. Johnson to a captaincy in one
Private Correspondence 43
of the new Gallies (which command, however, he has
since resigned for a very particular reason). As
artillery officers are scarce in proportion to the call
for them, and as myself and my remaining officers
sustain an extraordinary weight of duty on account
of the present vacancy, I shall esteem it a favor, if you
will be pleased, as soon as possible, to make up my
deficiency by a new appointment. It would be pro-
ductive of much inconvenience should not the inferior
officers succeed in course, and from this consideration
I doubt not you will think it proper to advance
Mr. Gilleland and Mr. Bean, and fill up the third
lieutenancy with some other person. I would beg
the liberty warmly to recommend to your attention
Thomas Thompson, — now first sergeant in my com-
pany, — a man highly deserving of notice and prefer-
ment. He has discharged his duty in his present
station with uncommon fidelity, assiduity, and ex-
pertness. He is a very good disciplinarian — pos-
sesses the advantage of having seen a good deal of
service in Germany, has a tolerable share of common
sense, and will not disgrace the rank of an officer and
gentleman. In a word, I verily believe he will make
an excellent lieutenant, and his advancement will be
a great encouragement and benefit to my company in
particular, and will be an animating example to all
men of merit to whose knowledge it comes. Myself
and my officers will be much obliged to the Hon. the
Convention to favor us with our commissions with all
convenient speed, as they may be highly requisite
under some circumstances that may possibly here-
after arise.
44 Alexander Hamilton
TO THE PROVINCIAL CONGRESS
MoRRiSTOWN, March 6, 1777.
Gentlemen:
It is necessary I should inform you of the changes
which have happened in your company of artillery,
which would have been done long ago, had I not been
prevented by sickness, from which I am but lately
recovered.
General Washington has been pleased to appoint
me one of his aids-de-camp. Captain-Lieutenant
James Moore, a promising officer, and who did credit
to the State he belonged to, died about nine weeks
ago. Lieutenant James Gilleland, some time before
that resigned his commission, prompted by domestic
inconveniences, and other motives best known to
himself. There remain now only two officers, Lieu-
tenants Bean and Thompson, and about thirty men.
The reason that the number of men is so reduced,
besides death and desertions, was owing to a breach
of orders in Lieutenant Johnson, who first began the
enhstment of the company, and who, instead of en-
gaging them during the war, according to the inten-
tion of the State, engaged them for the limited term
of a twelvemonth. The time of those enlisted by
him has expired, and for want of power to re-engage
them they have mostly entered into other corps.
I have to request you will favor me with instruc-
tions as to your future intentions. If you design to
retain the company on the particular establishment
of the State, it will be requisite to complete the num-
ber of officers, and make provision to have the com-
pany filled by a new enlistment. In this case, I
Private Correspondence 45
should beg leave to recommend to your notice, as far
as a captain-lieutenancy, Mr. Thompson. Mr. Bean
is so incurably addicted to a certain failing, that I
cannot, in justice, give my opinion in favor of his
preferment. But if you should determine to resign
the company, as I expect you will, considering it
as an extraordinary burthen without affording any
special advantages, the Continent will readily take it
off your hands so soon as you shall intimate your
design to relinquish it. I doubt not you will see the
propriety of speedily deciding on the matter, which
the good of the service requires.
TO GOUVERNEUR MORRIS, ROBERT LIVINGSTON, AND
WILLIAM ALLISON, ESQS.'
March 20, 1777.
Gentlemen:
With cheerfulness I embrace the proposal of cor-
responding with your convention through you, and
shall from time to time, as far as my leisure will
permit and my duty warrant, communicate such
transactions as shall happen, such pieces of inteUi-
gence as shall be received, and such comments upon
them as shall appear necessary to convey a true idea
of what is going on in the military Hne. Let me
caution you, however, that whatever opinions I shall
give in the course of our correspondence are to be
considered merely as my private sentiments, and are
never to be interpreted as an echo of those of the
' These gentlemen formed a committee of the New York Convention.
46 Alexander Hamilton
General; since they will not be really so, and a con-
struction of the kind may lead into errors and be
productive of inconveniences.
The present season affords nothing of importance.
There are, daily, little skirmishes arising from attempts
of the enemy to forage; but which, though generally
favorable to us, are attended with consequences so
trifling and insignificant as to be scarcely worth men-
tioning. They are, indeed, of great service in the
general scale, as they serve to harass and distress the
enemy, and, by keeping them from forage, will put
them under difficulties as to the transportation of
their baggage and cannon whenever they shall think
of making any capital movement. One thing worthy
of notice is, that hardly a day passes without some
deserter coming in. The fact itself, and the accounts
they concurrently give, prove that the spirit of de-
sertion runs high; and the reason assigned for it is,
that many of the regiments have been a very long
time without pay, and that the men are most bar-
barously treated if they only dare to lisp their dis-
content on the score of it.
'T is rumored that the Congress have received a
letter from Dr. Franklin, by which he seems to be in
such high spirits as to prognosticate a favorable dis-
position of affairs in the quarter where he is. I was
just now also transiently told that he had been re-
ceived in the public character of a plenipotentiary
from the American States. When it receives con-
firmation, I will give it to you.
I shall observe your directions respecting a trans-
ference of the company lately mine to the Continental