Alexander Hamilton Papers
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To Alexander Hamilton from William Duer, [16 August 1791]

From William Duer1

[New York, August 16, 1791]

My dear Friend.

Mr. King delivered me your Letter2 on the Subject of the Sudden Rise of Scrip,3 which I observe has occasioned in your mind a great Alarm. Those who impute to my Artifices the Rise of this Species of Stock in the Market, beyond its true Point of Value do me infinite Injustice. The Fact is that as far as my Opinion public or Private could have an Effect I have mentioned to the Dealers, in Stocks, particularly Scrip that were Straining it beyond its true Point of Value. For the latter I never gave but in one Instance more than 175—although in my Judgment they are fa[i]rly worth £200. And if we do not Support them at that Price at least, you may be Assured (and I speak it from Facts arising within my own Knowledge) that the Major Interest in the Bank will be Foreign Property: how far this is desireable, I leave to your Judgment.

The Instance in which I gave more than 175 for the Sprips is as follows—and Mr. Robert Morris (then in this City) can Witness to the Truth of it. When the Arts of Designing men (combined with the heated Imagination of new Adventurers) had carried the Price of scrip to Nearly 300, and they were then practising on the Fears of the Unskilfull to Induce them to sacrifice them as an Article worth nothing; I united with one or two Gentlemen of Patriotic Principles—and agreed to take about 400, at 240, provided the Sellers would deposit them with us Immediately, and Wait for their Pay till the first day of December. This they did, and the Consequences were allowed by all the City to be Extremely beneficial. Instead of an Instant Depression of the Stock, which would have Involved hundred in Utter Ruin, a Pause of Reflection Succeeded, the true Value of the Article became an Object of Discussion, and of Course a gradual Reduction in Price; the only thing, which by averaging the Loss, can rescue some of the Unvary Adventurers from Utter Ruin.

This is the plain History of my Conduct in this Matter, and of its Motives. I shall Conclude with one Observation; as it Relates to myself, I wish to have avoided it, but Exposed as I find myself to Unjust Clamours in your City, I am Constrained to say what otherwise I would have left to others.

During the whole Time I have been Engaged in Operations of the Public Debt, I can with Truth Aver that I have Scrupulously adhered to the most rigid Principles of Candor, and fair Dealing. Instead of Entering into Combinations to Entrap the Unwary I have Endeavored to make any Knowledge I possest on this Subject, a Common Stock. By my advice & Example, Numbers in this City have by Embark’g in the Funds, supported the Public Credit, and advanced their own Fortunes. If the Price of Stock in the New-York market has had a powerful Influence in other Parts, I can with Truth say that its Effects (if beneficial) are in no small Degree imputable to me. Feeling therefore in this Instance (as I have in the whole Course of my Life) that the Public Good has been a primary Object of my Pursuit, I despise the malicious aspersions of those who Aim to destroy my character in your, and the Public Esteem. The Citizens amongst whom I live have I am persuaded too good an opinion of my heart and head to think me so Weak, and Wicked to pursue that Line, of Conduct, which your Letter Intimates. I feel a Consciousness, that it cannot have made an Impression (even for a moment) on your Mind; and if it has you will I trust do me the Justice not only to Efface Every Trace of such an opinion, in your Breast—but in that of Every other Person within the Circle of your Friends, whose Esteem is Worthy of Preservation.

I have the honor to be with Sentiments of Esteem & Sincere Affection   Yours

Wm. Duer

Alexr. Hamilton Esqr.

New york. Augt. 16th. 1791.

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

1. In PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , IX, 71, this letter is listed as a “letter not found.”

For background to the letter printed above, see Fisher Ames to H, August 15, 1791 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , IX, 55–59); Rufus King to H, August 15, 1791 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , IX, 59–61); “Meeting of the Commissioners of the Sinking Fund,” August 15, 1791 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , IX, 67–68); H to William Seton, August 15, 16, 1791 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , X, 68–69, 71–73); Seton to H, August 15, 1791 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , IX, 69–70); H to the President and Directors of the Bank of New York, August 16, 1791 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , IX, 71); H to Duer, August 17, 1791 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , IX, 74–75); H to King, August 17, 1791 (PAH description begins Harold C. Syrett, ed., The Papers of Alexander Hamilton (New York and London, 1961– ). description ends , IX, 75–76).

2. Letter not found.

3. “Scrip” was the name given to the certificates or receipts for the initial payment of $25 to those buying stock in the Bank of the United States. Such receipts were first issued on July 15, 1791, and in the following weeks intensive speculation in scrip led to a tremendous rise in the price of both scrip and securities issued by the Federal Government. Joseph Stancliffe Davis reports that the price of scrip had risen to $50 by the end of July and to $280 by August 11 (Davis, Essays description begins Joseph Stancliffe Davis, Essays in the Earlier History of American Corporations “Harvard Economic Studies,” XVI [Cambridge, 1917]). description ends , I, 202–03). According to Bray Hammond, these certificates “in August … rose to a market price of $300 or more” (Hammond, Banks and Politics in America from the Revolution to the Civil War [Princeton, 1957], 123).

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    Hamilton Papers
    Title
    To Alexander Hamilton from William Duer, [16 August 1791]
    Author
    Duer, William
    Recipient
    Hamilton, Alexander
    Date
    16 August 1791

    Reference

    Cite as
    “To Alexander Hamilton from William Duer, [16 August 1791],” Founders Online, National Archives, https://founders.archives.gov/documents/Hamilton/01-26-02-0002-0299. [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. 617–619.]

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