To Alexander Hamilton from Philip Livingston, 27 March 1792

From Philip Livingston1

New York 27th. March 1792.

My dear Sir

Your Letter of Sunday,2 was brought to me yesterday morning about eight OClock with its inclosures, I immediately delivered them, the one addressed to Mr. Seton,3 the other for Generl. Schuyler.4 I called upon Mr. G. Verplank, the President of the State Bank, he appears, perfectly to coincide, in opinion, of the propriety of giving aid to the Dealers, as far as is consistent with prudence.5 Schuyler thought there woud be no impropriety, in mentioning to the Dealers the loan which has been negotiated at Amsterdam on behalf of the U.S6—& the good disposition wh: prevailed, between the two Banks, with you, to afford assistance, to the Dealers, within the bounds of discretion. The circumstance of this Loan I found was no secret, among them who pry into, & some how or other find out every thing. Bronson7 lately from Philadelphia told me the Trustees were equally divided in opinion about the propriety of purchasing more of the Debt, & that Mr. Jay was sent for.8 Another Dealer connected with his freinds in Philadelphia, told me that he had heard Burrall9 was to bring on here for this Department, only 100,000 Dollars.—& asked if it was true, I answered of course, I knew of no particular Sum, & that he had better information, than I was possessed of, & cut the matter short, either thro’ Clerks or Low10 I know not, but the Dealers do get at, a great deal of Information.

Our Sales of Stock, begin here at Noon, formerly they were in the Eveng. Upon communicating publickly to the Dealers, as I met them, the Loan in Holland, & my opinion of the probability of aid from the Bank’s, joined probably to what they knew, & personally offering to give 22/, for six per Cents, on any Person’s taking my Bills on London well indorsed in payment—six per Cents which had before the Sales, sold at par, rose to 20/.8d—& half shares in the National Bank, wh: were sold in the Morning at 46, pr. Ct. advance, rose to upwards, of 50—so that if they remain here, there will be no necessity of Mr. Seton’s coming forward into the Market,—but if he retains the power to do it, & the Harpies know it—there will be no occasion I hope for his assistance. In the Evening last night at the Coffee House, little or none of funded debt was sold, that I could hear of—but half Shares, could not be had at 57. Cash. I heard it frequently offered, & refused. The difference then, between the Morning & Evening in the price of half Shares, was from 46, pr. Ct. advance to 57, Cash—and all this has been effected by the arrival of your dispatches, to Seton Schuyler & myself. I think the fit of despondency is now over, but I hope Seton will remain armed with powers, to defeat any Schemes of the Harpies.

The Dealers last Night had a meeting & appointed a Committee, to confer with the Directors of the two Banks. The Propositions which they are to hold out I hear in general is to offer, funded debt, at your price as pledges for their discounts—& they are to sign an Agreement to bind themselves not to draw any Specie from the Banks, on account of the discounts which they shall obtain and in giving checks to each other, if any one, shall part with the Check—except to those, who engage by the agreement, not to draw out Specie, he shall be deemed, infamous—& held up—& that no one of the signers of the agreement will deal with him. This may last sometime, but the Banks cannot with any degree of certainty depend long upon it. If it shall answer, for a time, & not violently raise Stocks, beyond its real value, it will have the desired effect.

I inclose you a Slip, cut out of Child’s Paper11 of Yesterday. I saw Duer in the Gaol on Sunday. The Baron,12 Walker,13 & several other Gentlemen were there, Lady Kitty,14 Madam Duval15 & other Ladies. I pitty poor Kitty from my soul, she bears it like an Heroine. Duer was, perfectly composed, & in better spirits, than I have seen him for some time. I took an opportunity to enquire about the Money of the Jersey Manufactoring society16—he say’s all is right. Low promised to write you on monday last about it in detail wh: I suppose he has done.17 I am with the greatest regard

Yours sincerely

Ph: Livingston

ALS, Sleepy Hollow Restorations, Inc., Tarrytown, New York.

1. This letter concerns H’s efforts to have the Federal Government check the Panic of 1792.

For the Panic of 1792 and the events leading up to it, see William Duer to H, December 24, 1790, August 16, 1791, March 21, 22, May 30, 1792; Robert Troup to H, September 12, 1791, March 24, 1792; Nicholas Low to H, March 25, 1792 (all printed in this volume); Duer to H, March 12, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 126–27); H to Duer, March 14, 23, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 131–32, 170–72); Troup to H, March 19, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 155–58).

For H’s efforts to check the decline in the price of Government securities through the use of the sinking fund, see H to William Seton, March 19, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 154–55); H to John Adams, March 20, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 158–59); H to Thomas Jefferson, March 20, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 159); Adams to John Jay, March 21, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 159–61); Seton to H, March 21, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 163–64); Jay to H, March 23, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 172–73); Philip Livingston to H, March 24, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 174–75); H to Seton, March 25, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 190–92); “Meeting of the Commissioners of the Sinking Fund,” March 26, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 193–94); H to Seton, March 26, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 194); Seton to H, March 26, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 194–95); H to Gulian Verplanck, March 26, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 195–96); Jay to the Commissioners of the Sinking Fund, March 31, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 214–16); H to Livingston, April 2, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 218–19); “Meeting of the Commissioners of the Sinking Fund,” April 4, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 224–25); H to Seton, April 4, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 225–26); Seton to H, April 9, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 257–58); Seton to H, April 11, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 263–64); H to the President and Directors of the Bank of New York, April 12, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 266–67); “Meeting of the Commissioners of the Sinking Fund,” April 12, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 272); H to Seton, April 12, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 272–73); Seton to H, April 16, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 288–89).

For H’s views on the Panic of 1792, see H to William Short, April 16, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 289–91).

2. H’s letter to Livingston, dated March 25, 1792, has not been found.

3. H to Seton, March 26, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 194).

4. Letter not found.

5. See H to Verplanck, March 26, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 195–96).

6. For a description of this loan, see Short to H, December 23, 28, 1791 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , X, 403–04, 472–80).

7. Isaac Bronson was a New York City merchant and moneylender.

8. See Adams to Jay, March 21, 1792; Jay to H, March 23, 1792; “Meeting of the Commissioners of the Sinking Fund,” March 26, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 159–61, 172–73, 193–94).

9. Jonathan Burrall was cashier of the New York branch of the Bank of the United States. Although the bank’s branch in New York did not open until April 2, 1792, the cashier had been elected by the bank’s board on January 12, 1792 (James O. Wettereau, “The Branches of the First Bank of the United States,” Journal of Economic History, Supplement [December, 1942], 75).

10. Nicholas Low.

11. This is a reference to The [New York] Daily Advertiser, which was published by Francis Childs and John Swaine. On March 26, 1792, the following notice was printed in The Daily Advertiser:

“To the Holders of Engagements under the signature of the Subscriber.

“New-York Prison.

“March 24, 1792,

“It is with regret that the subscriber finds himself disappointed in bringing forward to his creditors, on this day, such specific propositions for the ultimate redemption of his debts, as he had once reason to expect.

“At a meeting of a number of gentlemen (all of whom stiled themselves his friends, and amongst whom some were really so) it was thought adviseable to postpone the publication of the plan he had in view, till it was supported by them in such a manner as they conceived most likely to ensure success.

“But (the causes of such change it is not necessary to detail) the malice of open enemies and the insidious insinuations of pretended friends, have chilled the first glow of benevolence; and left to the subscriber the guardianship of his own fame, and that of the interest of all his creditors. A sacred trust! which the subscriber pledges himself to discharge with fidelity and honor.

“In this view it is proposed by him as follows:

“1st. That he will within nine months, computed from the present date (or sooner, if possible) make a settlement of all his concerns, point out the sources and amount of his losses, and constitute an adequate fund for the ultimate redemption of the principal and legal interest of all his debts.

“2d. That this fund shall be so formed as not to place it within his own reach, to divert it from the objects of its destination.

“3d. That he will make prompt arrangements for the reimbursement in the first instance, of all advances made by distressed widows, or orphans, mechanics and tradesmen, to whom any considerable delay would operate as ruin.

“4th. That, till the above objects are effected, the walls of a prison shall secure that confidence which he feels, might have been justly placed in his honor.

“5thly. That, trusting to time and a conscience void of intended injury for justification, he at present leaves to his enemies the cruel triumph of sporting over his afflictions, and to a generous people who may still be mindful of his public and private services, the protection of a virtuous wife and innocent family.

Wm. Duer.”

The same issue of the same paper carried notices by Walter Livingston and Isaac Whippo to their respective creditors.

12. Baron Von Steuben.

13. Benjamin Walker.

14. Catharine Alexander, known as “Lady Kitty,” was the daughter of William Alexander, known as “Lord Stirling” or the “Earl of Stirling.” She was Duer’s wife.

15. Mme. Bacler de Leval, a native of France, migrated to the United States in 1790. She hoped to acquire land for a colony of French refugees, and she agreed to buy property in Maine at $1.25 an acre from Duer, Henry Jackson, and Henry Knox. Before completing the purchase, she went to Maine to inspect the lands in question. Although she bought a hundred-acre farm in Maine, largely because of Duer’s failure she never obtained the larger tract in which she was interested (Frances S. Childs, French Refugee Life in the United States, 1790–1800. An American Chapter of the French Revolution [Baltimore, 1940], 67–68). See also Bacler de Leval to H, April 12, 1792 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , XI, 265–66).

16. See Low to H, March 25, 1792 (printed in this volume).

17. Low to H, March 25, 1792 (printed in this volume).

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You Are Looking At

Source Project: Hamilton Papers
Title: To Alexander Hamilton from Philip Livingston, 27 March 1792
Author: Livingston, Philip
Recipient: Hamilton, Alexander
Date: 27 March 1792

Reference

Cite as: “To Alexander Hamilton from Philip Livingston, 27 March 1792,” Founders Online, National Archives, https://founders.archives.gov/documents/Hamilton/01-26-02-0002-0326. [Original source: The Papers of Alexander Hamilton, vol. 26, 1 May 1802 – 23 October 1804, Additional Documents 1774–1799, Addenda and Errata, ed. Harold C. Syrett. New York: Columbia University Press, 1979, pp. 661–665.]

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