Beschreibung
Circular Letter Signed as Secretary of the Treasury, Alexr Hamilton/Secy of the Treasury, to Stephen Smith Esq., Collector of the Customs for the Port of Machias, Massachusetts [Maine], September 22, 1789, New York, New York. 2 pp., 7 3/4 in. x 9 1/4 in. Also see the Alexander Hamilton Collection: The Story of the Revolution & FoundingOn his 11th day as Secretary of the Treasury, Hamilton orders Customs Collectors to accept Bank of North America and Bank of New York notes as the equivalent of gold or silver, and hints at forthcoming procedures to guard against counterfeit currency."In consequence of arrangements lately taken with the Bank of North America, and the Bank of New York for the accommodation of the Government, I am to inform you that it is my desire that the Notes of those Banks payable either on demand, or at no longer period than Thirty days after their respective dates should be received in payment of the duties, as equivalent to Gold and Silver . . ." On September 13, 1789, two days after his appointment by Washington and confirmation by the Senate, Hamilton wrote to Thomas Willing, the president of the Bank of North America, detailing the need for $80,000 to meet the "present exigency." The Bank of New York, which had already advanced the nation $20,000 "for another purpose," agreed to lend another $30,000. Hamilton requested a loan of $50,000 from the Bank of North America which agreed.[1]As those two banks were financing the government, Hamilton instructedcollectors of customs to accept the bank's notes in payment of duties. Three weeks later, on October 14, Hamilton sent the promised follow-up letter with details guarding against counterfeits and the procedures for remitting them to Samuel Meredith, Treasurer of the United States.[2]Historic Background Distrust of government was practically a religious doctrine for Jeffersonians, but Hamilton and the federalists believed in technology (by definition, the application of scientific knowledge for practical purposes). Focusing on the future, his Assumption Plan would counterintuitively pay off Revolutionary War debts in full. The opposition said the nascent government couldn't afford to fund itself and pay prior debts, or that doing so would betray those who had sacrificed everything to purchase our independence. While admitting that default or "discrimination" (between speculators and original holders, many of whom were poor patriot farmers and merchants who had no choice but to sell their government promises for pennies on the dollar) would feel like economic justice, Hamilton argued it couldn't be done. Every state had a different system, with different banks and currencies and record keeping. By 1789, no one could tell where, when, how much, and under what circumstances those debts had been discounted. Hamilton also presciently saw that honoring the prior debt would help to quickly establish the creditworthiness of the new nation, lessening the total cost that citizens would ultimately have to bear.The Bank of North America served as the country's first de facto central bank. Chartered by the Congress of the Confederation on May 26, 1781, and opened in Philadelphia on January 7, 1782, it was based upon a plan presented by US Superintendent of Finance Robert Morris on May 17, 1781, itself based on a plan proposed by Hamilton. Although it was necessary to serve the general war effort, the Pennsylvania government objected to its privileges and reincorporated it under state law, making it unsuitable as a national bank under the federal Constitution. Instead, Congress chartered a new First Bank of the United States, in 1791.The Bank of New York was founded in 1784 by Alexander Hamilton and chartered under the Federal government in 1791. It was instrumental in securing the first loan obtained by the United States. Later loans contributed to the construction of the Erie Canal and the New York City subway system. The Bank of New. (See website for full description). Bestandsnummer des Verkäufers 26524
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