things. It is my wish that the Bank of New York may, by all means, continue to receive deposits from the Collector in the paper of the Bank of the United States, and that they may also receive payment for the Dutch bills in the same paper. This paper may either be remitted to the Treasurer, or remain in the bank, as itself shall deem most expedient. I have explicitly directed the Treasurer to forbear drawing on the Bank of New York without special direction from me. And my intention is to leave you in possession of all the money you have or may receive till I am assured that the present storm is effectually weathered.

Everybody here sees the propriety of your having refused the paper of the Bank of the United States in such a crisis of your affairs. Be confidential with me; if you are pressed, whatever support may be in my power shall be afforded. I consider the public interest as materially involved in aiding a valuable institution like yours to withstand the attacks of a confederated host of frantic and, I fear, in too many instances, unprincipled gamblers.

Adieu. Heaven take care of good men and good views!

MY DEAR DUER: PHILADELPHIA, March 14, 1792. Your letter of the 11th got to hand this day. I am affected beyond measure at its contents, especially as it was too late to have any influence upon the

I Duer had speculated deeply and failed disastrously.

event you were apprehensive of, Mr. Wolcott's instructions having gone off yesterday.

I trust, however, the alternative which they present to the attorney of the and the discretion he will use in managing the affair, will enable you to avoid any pernicious éclat, if your affairs are otherwise retrievable.

Be this as it may, act with fortitude and honor. If you cannot reasonably hope for a favorable extrication, do not plunge deeper. Have the courage to make a full stop. Take all the care you can in the first place of institutions of public utility, and in the next of all fair creditors.

God bless you, and take care of you and your family. I have experienced all the bitterness of soul on your account which a warm attachment can inspire. I will not now pain you with any wise remarks, though if you recover the present stroke, I shall take great liberties with you. Assure yourself, in good and bad fortune, of my sincere friendship and affection.

TO WILLIAM SETON

(Private)

PHILADELPHIA, March 25, 1792.

If six per cents. should sink below par, you may purchase on account of the United States at par to the extent of fifty thousand dollars. You will not, however, declare on whose account you act, because, though there is, as to a purchase on that principle,

no difference of opinion among the trustees, the thing is not formally arranged, and this is Sunday.

It will be very probably conjectured that you appear for the public, and the conjecture may be left to have its course, but without confession. The purchase ought, in the present state of things, to be at auction, and not till to-morrow evening. But if the purchase at auction will not tend as well to the purpose of relief as a different mode, it may be departed from; the usual note must be made of persons, time, etc. You will consider whether done all at once, or a part now and a part then, will best answer the purpose; in the state of this market the latter mode is found preferable. I have just received a letter from Mr. Short, our minister resident, dated Amsterdam, 28th December, by which he informs me that he has effected a loan for three millions of florins at four per cent. interest, on account of the United States. This may be announced; and as, in the present moment of suspicion, some minds may be disposed to consider the thing as a mere expedient to support the stocks, I pledge my honor for its exact truth. Why then so much despondency among the holders of our stock? When foreigners lend the United States at four per cent., will they not purchase here upon a similar scale, making reasonable allowance for expense of agency, etc.? Why then do individuals part with so good a property so much below its value? Does Duer's failure affect the solidity of the government?

After paying the present quarter's interest I shall have near a million dollars in cash, and a million

more in bonds from the duties of last year. All this is truly so much beforehand. The duties for the current year being fully adequate to the objects of the year, except the further sum of about five hundred thousand dollars for the western expedition, for which the ways and means have been proposed. Is the treasury of Great Britain comparatively in so good a state? Is the nation comparatively so equal to its debt? Why then so much depression? I shall be answered, The immediate necessity for money. But if the banks are forbearing as to the necessity of paying up, cannot the parties give each other mutual credit and avoid so great a press? If there are a few harpies who will not concur in this forbearance, let such be paid and execrated, and let others forbear. The necessity of great sacrifices among your dealers cannot affect the nation, but it may deeply wound the city of New York by a transfer to foreigners and citizens of other States of a large mass of property greatly below its value. The face of your affairs may undergo for a considerable time a serious change. Would not the plan I suggested to you in my last be a means of securing more effectually the debts due to the bank by accepting in part payment the credits on your books?

While I encourage due exertion in the banks, I observe that I hope they will put nothing to risk. No calamity truly public can happen while these institutions remain sound. They must, therefore, not yield too far to the impulse of circumstances.

TO WILLIAM SETON

(Private)

PHILADELPHIA, April 4, 1792. The post of to-day brought me a letter from you. I am pained beyond expression at the picture you and others give me of the situation of my fellowcitizens, especially as an ignorance of the extent of the disorder renders it impossible to judge whether any adequate remedy can be applied.

You may apply another 50,000 dollars to purchases at such a time as you judge it can be rendered most useful. The prices may be 20s. for 6 per cents., 12s. for 3 per cents., and 12s. 6d. for deferred. The law and the object require that it should be known you purchase for the public. I shall by the next post send an official authorization.

I have doubt, however, whether it will be best to apply this immediately or wait the happening of the crisis, which I fear is inevitable. If, as is represented, a pretty extensive explosion is to take place, the depression of the funds at such a moment will be in the extreme, and then it may be more important than now to enter the market in force. I can in such a a case without difficulty add a hundred thousand dollars-probably a larger sum. But you, who are on the spot, being best able to calculate consequences, I leave the proper moment of operating to your judgment. To relieve the distressed and support the funds are primary objects. As it may possibly become advisable for the bank to receive payments in stock from embarrassed persons, it may not be amiss that you should know as a guide that there are at