From John Adams to James Sullivan, 17 September 1789
To James Sullivan
New York Septr 17, 89
Sir
In your letter of the 18th of August, you ask why we may not have as much paper in circulation in proportion to our circulating silver and gold, as Great Britain has in proportion to hers?1 Give me leave to answer you without hesitation. We may as soon as we shall have any credit.— We have none. No man of common sense will trust us. As soon as an unlimited democracy tyrannized over the rich, no man of property was safe. If ever an unlimited Aristocracy shall tyrannize over the poor, and the moderately rich at once, the greater portion of society will not dare to trust the less. But if a government well ordered mixed and counterpoised should take place, and in consequence of it the commandment Thou shalt not steal, be observed, then and not till then you may circulate what paper you may find necessary— But I doubt very much whether our circumstances will require any paper at all. The cash paid in imposts, will immediately be paid to creditors and by them circulated in society
I am sir &
John Adams
LbC in CA’s hand (Adams Papers); internal address: “Judge Sullivan.”; APM Reel 115.
1. Sullivan, who had successfully defended participants in Shays’ Rebellion, was anxious to address the ongoing scarcity of paper currency (, p. 41). He wrote to JA on 18 Aug., comparing America’s financial plight with that of Britain and suggesting the creation of a national bank for economic relief: “I do not like private Banks because it enriches private men & does no good to the public, but I beleive a public bank may Emit paper equal to the money we possess. the people when pressed for Money will be prone to blame the Government for their distresses” (Adams Papers).