Hamilton’s operations for his brother-in-law, Church, also extended to speculations in public lands; for in the Hamilton Manuscripts there is a letter bearing the date of August 24, 1792, from William Henderson to him relative to the purchase of large quantities of land (45,000 acres).[[240]] It appears that Hamilton, Church, and General Schuyler were involved in this negotiation, and that Church was the principal.
Hamilton was also personally interested in western land schemes, for he held five shares of the Ohio Company, proprietors of land on the Muskingum River.[[241]] Although this concern was organized before the formation of the Constitution, Hamilton as Secretary of the Treasury was called upon to pass upon the validity of claims involving thousands of acres. He felt the delicacy of this situation, for on May 9, 1792, he wrote to Washington that he regretted that he was required by law to decide a case in which he was an interested party, and stated that he had left the matter to be adjusted by the accounting officers of the Treasury acting under an opinion of the Attorney General.[[242]]
Although Hamilton showed great hesitancy in passing upon his own land claims while Secretary, he did not deem it incompatible with his official duties to communicate occasionally with friends as to the probable prices of public securities and bank stock.
For the communication to Willing, mentioned above,[[243]] we have, of course, only Maclay’s testimony; and if his statement is true Hamilton transmitted official secrets of the most significant character to a financier who, however great his integrity, was in a position to take advantage of them, and was engaged in dealing in securities on his own account and for Hamilton’s brother-in-law, Church, under Hamilton’s orders. When we remember that Maclay’s journal was private in its nature, not intended for publication, and not given to the world until long after all the men mentioned in it were dead, we are constrained to give some credence to his straightforward statements like the one in question, even though he was a bitter enemy of the Federalist leaders. But we are not constrained to attribute to Hamilton any improper motives. Those who assume that the Secretary of the Treasury could have carried out his enormous reorganization of the finances without conferring with the leading financiers of the time have only an elementary knowledge of Treasury administration.
As Secretary, he often found it necessary to set rumors at rest. An instance is afforded in a letter written by Hamilton, on August 17, 1791, to Rufus King, in which he mentioned having given out his opinion on prices to counteract an undue rise in script on the stock market, and concluded by giving King his standard of prices on that day, saying “I give you my standard that you may be able if necessary to contradict insinuations of an estimation on my part short of that standard for the purpose of depressing the funds.”[[244]]
This letter from Hamilton was evidently drawn by one from King bearing the date of August 15, 1791, in which the latter cautions the former against giving out any statements which might affect prices, and informs him that his opinions had been quoted in efforts to depress stocks.[[245]] King also adds that Duer had been injured in attempts to raise prices, but is of the opinion that “his conduct has been as correct as any buyer’s and seller’s could be.” King had little liking for popular vagaries in finance, for he tells Hamilton that “the fall of Bank certificates may have some good effects; it will operate to deter our industrious citizens from meddling in future with the funds, and teach them contentment in their proper avocations.”
On the same day that Hamilton replied to King’s letter which had informed him of Duer’s danger, he wrote to Duer cautioning him against pushing prices too high and repeating earlier warnings. He says: “I will honestly own I had serious fears for you—for your purse and for your reputation; and with an anxiety for both, I wrote you in earnest terms. You are sanguine, my friend. You ought to be aware of it yourself and to be on your guard against the propensity.... I do not widely differ from you about the real value of bank script. I should rather call it about 190, to be within bounds, with hopes of better things, and I sincerely wish you may be able to support it at what you mention.”[[246]] There is of course, little beyond friendly advice in this, although Hamilton’s enemies may see impropriety in his communicating his own price to a man deeply engaged in speculation.
There is some evidence, however, which may reasonably be interpreted to imply that Hamilton might have used his official power in behalf of Duer. In reply to a letter from Duer (after his disastrous failure) making some request which is not explained by Mr. Lodge, the Secretary says: “Your letter of the 11th got to hand this day. I am affected beyond measure at its contents, especially as it is too late to have any influence upon the event you were apprehensive of, Mr. Wolcott’s instructions having gone off yesterday.”[[247]] Wolcott was Hamilton’s subordinate in the Treasury Department, and evidently he had issued some instructions which affected Duer’s fortunes. Wolcott was the auditor of the Treasury whose duty it was under the act of September 2, 1789, “to receive all public accounts and after examination to certify the balance, and transmit the accounts with the vouchers and certificates to the Comptroller for his decision thereon.” This connection with Duer is the sole piece of evidence of what might be termed the possible use of the Secretary’s office in a private matter. The nature of this is not clear, and the plan was not carried out.
The conclusion to be reached from this evidence is that Hamilton did not have in 1787 any more than a petty amount of public securities which might appreciate under a new system; that he did have some western land; but that an extensive augmentation of his personal fortune was no consideration with him. The fact that he died a poor man is conclusive evidence of this fact. That he was swayed throughout the period of the formation of the Constitution by large policies of government—not by any of the personal interests so often ascribed to him—must therefore be admitted. Nevertheless, it is apparent from the additional evidence given here that it was no mere abstract political science which dominated his principles of government. He knew at first hand the stuff of which government is made.
William C. Houston, of New Jersey, was of no consequence in the Convention, and little is known of his economic interests. He was a Princeton graduate, and was for a time professor of mathematics and natural philosophy. He entered the practice of law at Trenton, and from 1784 until his death in 1788 he was clerk of the Supreme Court of his state. On account of ill health he was unable to remain through the sessions of the Convention. A search among the New Jersey loan office records in the Treasury Department failed to reveal Houston as a holder of securities; but the records for that state are incomplete and Houston’s death in 1788 would have prevented his appearing on the Treasury Records of the new government. A William Houston is recorded in the New York books for small amounts of deferred sixes,[[248]] but, although William Churchill Houston had a son by that name, the identity of the son and the public creditor cannot be established.