I think there is nothing in the former regulations of the Salines which hindered merchants or others of the country round about, far or near, from purchasing salt at the Salines, at the stated price, and carrying and vending it elsewhere at their own price; and it was naturally to be expected that competition would in this way reduce it to a proper price wherever sold. If this had taken place, it would have been desirable that the lessees should not have engaged in it, because as the price at a distance must add some profit to the transportation and first cost, this profit might have induced the lessees to sell reluctantly on the spot. As the merchants, however, have not entered into this business, I think it would be well to let the lessees begin it, leaving them open to the effect of future competition; subjecting them to a maximum as they themselves propose, and to have the permission revoked if they obstruct sales at the Salines, or otherwise abuse the permission. I return you their letter.
I return you, also, the papers respecting the lead mines, and think with you that one-fifth for the three last years is not unreasonable.
I propose to inform Mr. Moore (if you know of no objection,) that I approve his proposition for cutting the whole road from Cumberland to Brownsville. We shall by this means secure, at any rate, the benefit of their location, which will of itself have occasioned considerable expense. Affectionate salutations.
TO MR. GALLATIN.
October 31, 1807.
The rent we proposed for the Indiana lead mine was two-tenths of three years' produce=six-tenths of one year's produce for five years' occupation: and one-tenth of five year's produce=five-tenths of one year's produce for five years' occupation, is the option you propose. There can be but one objection to it, that is, the effect which a rent of one-tenth annually might have in lowering the future rents permanently. From the Louisiana standing rent of one-tenth, and the offer of one-tenth for the Indiana mine, I suspect that one-fifth may be too much for a permanent rent. What would you think of continuing the offer of two years free of rent, and one-eighth of the metal afterwards? I think the most important object for the public is to find what rent the tenant can pay and still have an encouraging profit for himself, and to obtain that rent. However, I suggest this merely for your consideration.
I have written to Mr. Moore on the subject of the road. Whom shall we appoint in the room of Kilgore. I have conversed with Morrar, but have had no opportunity of speaking with Governor Tiffin. Affectionate salutations.
TO GOVERNOR CABELL.
Washington, November 1, 1807.
Dear Sir,—Your late letters have been regularly referred to the Secretary at War, who has already answered their several enquiries, or will do it immediately. I am inclined to believe that the departure of the British vessels from our waters must be in consequence of orders from England to respect the authorities of the country. Within about a fortnight we think we may expect answers from England which will decide whether this cloud is to issue in a storm or calm. Here we are pacifically inclined, if anything comes which will permit us to follow our inclinations. But whether we have peace or war, I think the present Legislature will authorize a complete system of defensive works, on such a scale as they think they ought to adopt. The state of our finances now permits this. To defensive works by land they will probably add a considerable enlargement of the force in gun-boats. A combination of these, will, I think, enable us to defend the Chesapeake at its mouth, and save the vast line of preparation which the defence of all its interior waters would otherwise require. I salute you with great esteem and respect.