From John Jay to Peter Augustus Jay, 12 June 1823
To Peter Augustus Jay
Bedford—12 June 1823
Dear Peter
It appears to me adviseable to dispose of some of my Bank Stock, and therefore desire you to sell as many of my Shares in the Merchants Bank, as from Circumstances may in your Opinion be prudent;1 and invest the Proceeds in Stock of the United States.2 I am apprehensive that the State Tax on Dividends3 may eventually, and perhaps soon, diminish the value and price of the one, and increase that of the other—
As Maria will be the Bearer of this Letter, and give you full Information respecting things here, I forbear to enlarge— My Love to Mary & the Children— I am Dear Peter Your affte. Father
John Jay
Peter Augustus Jay Esqr
ALS, NNC (EJ: 11507). Endorsed.
1. “To 109 Shares @ $50 … ^Dollr^3450 / see old Book 85 / P. A. Jay has Certificate from the first 163 shares— of which he sold 128— / 1823 / July, 1 / He having informed me that he had sold all the remaining 109 I that Day included to him the two other certificates I had .. vz—one ^for^ 64 Shares, dated 9 June 1807— the other for 10 shares dated July 1807— / He sold the 109 Shares (deducting Brokerage) for $5599.47—” John Jay Account Book, Lbk. 9, D, NNC. The details of the transaction can also be found in JJ to PAJ, 1 July 1823, ALS, NNC (EJ: 13551).
2. The money was invested in “United States — Six pr. Ct. Stock” realizing a gain in an 1827 accounting: “1823 / July 1 / Paid for 5500 of said stock … Dr / 5707·35” Account marked “(Settled).” This particular investment, just one of many in United States stocks in JJ’s possession, was from the issue of 1814, which became redeemable in 1827. Six percent stocks were issued in 1796, 1812–15, and 1820, as well as a 6 percent Treasury note stock c. 1815, of which JJ owned several, in comparison to 5 percent issues, which he avoided. John Jay Account Book, Lbk. 9, D, NNC. See “Retrenchment of Expenditures (April 1822),” Annals, 39: 1551–52.
3. Taxes levied against corporations can be extracted from the dividends of the shareholder. “An ACT for the Assessment and Collection of Taxes. Passed April 23, 1823.” [New York State] Laws of the State of New York passed at the 46th Session of the Legislature (Albany, 1823), 396.