Nathan Dane Project: Transcription

Philadelphia May 2 1791

Gentlemen

I received your's of the 6th ----- with the bond as ------, which I lodged in the office of the post master general. He is now at N. York, but I expect to see him soon at that place, or this. Enclosed you have a letter which Mr. F. Cabot left with me, and concerning the papers contained in it I suppose he has written to you - he informed me he had attened to the calculations of the principals and interest of your activities in the office; and that the calculations then make were considerably in your favour, making the interest amount to ore than you computed it; otherwise I should have myself examined those calculations-I understood by him also that the quarter's interest could not be drawn; ??????? which he had omitted to write you; but that you will draw the months interest on the first opportunity - as he could not continue in the city long enough to get your accounting funds. I subscribed for you, the Funded Certificates will be ready in a day or two, when I will take them out, and bring them with me, or forward them to you, agreeable to your request.

In answer to your inquires, gentlemen, as to the value of bank stock, securities - I will give you the best information I have, which is but limited - I believe the price of securities then have been pretty accurately published in Finn's paper, from time to the percents for some months have varied but little from ?? the 3 percents and deferred from ?? - I judge from what is in other papers and from what I occasionally hear - it seems to be the better opinion, that the securities will continue to appreciate further, from a general confidence in the citizens of the country and foreigners on the abilities of it to pay the interest and demand on the government, and disposition to do it -

The Dutch and other foreigners are buying into the funds of this country, and as they are accustomed to view interest on a lower grade than we are, I think on the whole, it is probable they will consider our securities as good property purchased at a price some what higher than they sell for at ???-

As to the securities of Massachusetts I am from a view of all the circumstances that come within my knowledge ??generally to estimate the ?unopened? part of her debt as good as the opened part-

As to bank stock your inquiry naturally involves two questions. 1st will the shares be speedily taken up? And 2nd what will be the probable future value of the stock - we have no data to reason from with certainty - we can from certain general principles and circumstances only infer probable conclusions - I might say these before you somewhat at large or give you my opinion in a forewards - as the latter must be a minor opinion of little consequence, I have preferred the former- by stating the facts and principles on which I form an opinion you will have my opinion with the reasons of it-

As to the first question it appears to me the share will soon be take up - To effect this, three things only are, perhaps, requsisite- 1an ability to furnish the stock - 2 an opinion amongst the monied men that the shares will be good property - and 3rd an opinion that the shares will soon be purchased and taken out of the market - ?? ability a stock often millions of dollars may appear at first, not to be easily furnished; but on reflection we shall find that little or no certain can be required to furnish any part except the two millions to be deposited in gold and silver by the private subscribers - ?? ?? ?? subscribe two millions of dollars with one hand, and at the same time, borrow of the bank two millions, with the other to be repaid in annual installments with interest - this may be done with the greatest care, and no new funds are required to affect this part of the establishment - as to the ? millions to be furnished by individuals - 6 millions is in securities - these securites are already, many of them, in the hands of men most likely to be subscribers - The principal ?? to be made are such as may be necessary to raise the two millions of dollars in ?? - This would not be a great sum, it appears to me or beyond the abilities of monied men in this country to raise in this time allowed were the subscriptions confined to them - But it is a ?? opinion, as far as my information extends, that foreigners will become subscribers to a considerable amount - I think this opinion is well founded - tho, men in general are not naturally fond of ?? their property in foreign countries.. Yet these may be sitrations in which they may prefer it - perhaps some of these circumstances now exist - Republics are, in general, when their governments have assumed formal stability, deemed favourable to public audit and money operations; ?? then the monied men have more ?? influence; and the influence of property while it acts unitedly and with moderation prevails - In ?? governments, property is often silent and public audit especially abound while the tyrant, the army, or the mob bare rule - ???? then mear policy, may, sometimes, dictate the prosperity of supporting property and ??; but a union of interests to that object will be wanting - the Unite States, I believe, appear to many foreigners to be getting into their state favourable to audit sec. our debt is small, our country growing, and afford in their view, a field of ?? and activity - the contrary, perhaps, is now true as to many Countries in Europe - the affairs of France are in an uncertain situation - Great Britain has already a debt swelled to an enormous amount - and in Holland, from ?? we are, probably, to respect most property to be transferred to this county or ?? in our funds or banks, a very considerable degree of dissatisfaction prevails with the most wealthy men, with the ?? change of government then; and it seems to be pretty ?? that the trade and money operations of that country are on the decline - it is said here that the Dutch merchants ? especially have already made considerable preparations for subscribing - - as to the opinion that the share will be good property, it appears to me, so far as I can ?? it, to be generals; and this must have its affect to promote the subscriptions whether will or ill founded - from these circumstances it will be very natural for men to conclude the share will be soon be bought up and, therefore, all who propose to be subscribers with Boston their subscriptions

With regard to the second question - what will be the probable future value of this bank stock.. - ? this though of much the most importance, it is much the most difficult to form an opinion - the value of all property must depend especially on the security it ??, and the annual profit it affords - the shares in this bank, I think, must be secure property - notes and money deposited in the bank must in a common course of things, be secure and safe - the management of this common stock, I think must be good; because it must ever be for the interest of the stockholder to see that it is so - the only difficulty of any consequence is in forming an opinion - I have heard none ?? ?? than 6% annual profit, clear of expenses, and none more than 15% - my own opinion brings me much nearer the first than the last - there may be more or less economy in the management, which may occasion some little uncertainty - but the principle thing in ascertaining the profits is the rising ?? on the quantity of bank notes the bank will be able to ??? - and in forming an opinion as to this, I say the credit of the bank out of the question; presuming it will be good and will ?? for supporting a ?? sum in notes equal to the stock deposited; beyond which it will have no power to ?? its notes - - But there is a principle in this case of importance, which in a small bank would hardly be worth of noting - it is a principle which reports the Just quantity of ? medium a country can use - the good management of the public ??, and a general union in favor of money negotiations among other things, probably, will give life and activity to business in this Country, and consequently make room for an increase medium of trade - But this medium must ? this and ? other country, have it's natural boundaries, and the evil of too much or too little money must infallibly find its' own ?? in time; while gold and silver shall retain their present power and habit of finding when and where they are most and least wanted, and of changing plan accordingly - Some suppose the bank will be able to circulate the whole ten million; Some not more than four or five millions at present; hence the different calculations of profits - it is not easy to say with precision what is a sufficient ?? medium for then states - before the war it was computed at ? millions of dollars I think the better opinion now is that 12 million is wanted to increase it much beyond this, if this be adequate, must produce depreciation and correspondent high prices, which would soon be ? in our commerce with other countries; the evil would be felt; the cause known or inquired into; and a remedy to be applied found necessary - this may be all something - or part something and part paper but a considerable proportion of the former is ?? necessary; because ?? have only a local and limited circulation, and not acrue the purposes of foreign commerce - that ? will be much ? while it can be found in this country pretty certain - the people in general must have it in small payments - In a country as extensive as this many of the people, far removed from the commercial towns, will ever prefer gold and silver; and from ?? experience some districts in paper will remain for some time - what part of this twelve millions can consist of bank notes is uncertain - but to suppose one half, 6 millions in bank notes, seems to me to be going quite far enough; and I believe as far or further than any country has done for those bank notes must be in addition to public negotiable securities, bills and private negotiable notes and other negotiable papers that enter largely into all the transactions of trade of this 6 millions which I ?? appears to me to be a large sum in bank notes for this Country - the banks of Boston, New York, Philadelphia and Baltimore - must furnish a considerable part to put into circulation 10 or even 7 or 6 millions of dollars of the bank notes of this one bank of the United States in addition to the notes of the other banks, I think would be an evil - this 10 millions named in the law is the highest sum; and I suppose contemplates a great ?? increase of the wrath of this country in the 20 years; and also that all the other banks may be swallowed up in this one - but if this bank can circulate 5 millions of dollars, the ? must be good property and afford and annual income of more than 6% - this I should suppose, even in this country, will be generally considered as a good profit on all that property which men can take from their quick stock, and ? by in security as many circumstances may recommend - If the circulation of bank notes are limited as before ? and on this principle mention to a certain sum then deposits in the banks only sufficient to support that sum are required, and all ? there beyond that sufficiency are unnecessary and ? - hence quantity to multiply banks and deposits in them will be ?; and the remedy will be found in uniting them or in ? the property pledges to a state of sufficiency mainly to support a sufficient quantity of bank notes

With sentiments of ?? ??

I am gentlemen your obedient servant reguards N. Dane

Mrs. Brown and Thorndike P.S.

I'll thank you to send the ? to Mrs. Dane - my compliments to Mrs. Brown and to Mrs. Thorndike

NB. On ? further how much ? ? in France England ? ? ? doubt whether we have not always computed the quantity of ? necessary for the Untied State much too low.

	7551 Philadelphia May 2 1791 Gentlemen I received your's of the 6th ----- with the bond as ------, which I lodged in the office of the post master general. He is now at N. York, but I expect to see him soon at that place, or this. Enclosed you have a letter which Mr. F. Cabot left with me, and concerning the papers contained in it I suppose he has written to you - he informed me he had attened to the calculations of the principals and interest of your activities in the office; and that the calculations then make were considerably in your favour, making the interest amount to ore than you computed it; otherwise I should have myself examined those calculations-I understood by him also that the quarter's interest could not be drawn; ??????? which he had omitted to write you; but that you will draw the months interest on the first opportunity - as he could not continue in the city long enough to get your accounting funds. I subscribed for you, the Funded Certificates will be ready in a day or two, when I will take them out, and bring them with me, or forward them to you, agreeable to your request. In answer to your inquires, gentlemen, as to the value of bank stock, securities - I will give you the best information I have, which is but limited - I believe the price of securities then have been pretty accurately published in Finn's paper, from time to the percents for some months have varied but little from ?? the 3 percents and deferred from ?? - I judge from what is in other papers and from what I occasionally hear - it seems to be the better opinion, that the securities will continue to appreciate further, from a general confidence in the citizens of the country and foreigners on the abilities of it to pay the interest and demand on the government, and disposition to do it - The Dutch and other foreigners are buying into the funds of this country, and as they are accustomed to view interest on a lower grade than we are, I think on the whole, it is probable they will consider our securities as good property purchased at a price some what higher than they sell for at ???- As to the securities of Massachusetts I am from a view of all the circumstances that come within my knowledge ??generally to estimate the ?unopened? part of her debt as good as the opened part- As to bank stock your inquiry naturally involves two questions. 1st will the shares be speedily taken up? And 2nd what will be the probable future value of the stock - we have no data to reason from with certainty - we can from certain general principles and circumstances only infer probable conclusions - I might say these before you somewhat at large or give you my opinion in a forewards - as the latter must be a minor opinion of little consequence, I have preferred the former- by stating the facts and principles on which I form an opinion you will have my opinion with the reasons of it- As to the first question it appears to me the share will soon be take up - To effect this, three things only are, perhaps, requsisite- 1an ability to furnish the stock - 2 an opinion amongst the monied men that the shares will be good property - and 3rd an opinion that the shares will soon be purchased and taken out of the market - ?? ability a stock often millions of dollars may appear at first, not to be easily furnished; but on reflection we shall find that little or no certain can be required to furnish any part except the two millions to be deposited in gold and silver by the private subscribers - ?? ?? ?? subscribe two millions of dollars with one hand, and at the same time, borrow of the bank two millions, with the other to be repaid in annual installments with interest - this may be done with the greatest care, and no new funds are required to affect this part of the establishment - as to the ? millions to be furnished by individuals - 6 millions is in securities - these securites are already, many of them, in the hands of men most likely to be subscribers - The principal ?? to be made are such as may be necessary to raise the two millions of dollars in ?? - This would not be a great sum, it appears to me or beyond the abilities of monied men in this country to raise in this time allowed were the subscriptions confined to them - But it is a ?? opinion, as far as my information extends, that foreigners will become subscribers to a considerable amount - I think this opinion is well founded - tho, men in general are not naturally fond of ?? their property in foreign countries.. Yet these may be sitrations in which they may prefer it - perhaps some of these circumstances now exist - Republics are, in general, when their governments have assumed formal stability, deemed favourable to public audit and money operations; ?? then the monied men have more ?? influence; and the influence of property while it acts unitedly and with moderation prevails - In ?? governments, property is often silent and public audit especially abound while the tyrant, the army, or the mob bare rule - ???? then mear policy, may, sometimes, dictate the prosperity of supporting property and ??; but a union of interests to that object will be wanting - the Unite States, I believe, appear to many foreigners to be getting into their state favourable to audit sec. our debt is small, our country growing, and afford in their view, a field of ?? and activity - the contrary, perhaps, is now true as to many Countries in Europe - the affairs of France are in an uncertain situation - Great Britain has already a debt swelled to an enormous amount - and in Holland, from ?? we are, probably, to respect most property to be transferred to this county or ?? in our funds or banks, a very considerable degree of dissatisfaction prevails with the most wealthy men, with the ?? change of government then; and it seems to be pretty ?? that the trade and money operations of that country are on the decline - it is said here that the Dutch merchants ? especially have already made considerable preparations for subscribing - - as to the opinion that the share will be good property, it appears to me, so far as I can ?? it, to be generals; and this must have its affect to promote the subscriptions whether will or ill founded - from these circumstances it will be very natural for men to conclude the share will be soon be bought up and, therefore, all who propose to be subscribers with Boston their subscriptions With regard to the second question - what will be the probable future value of this bank stock.. - ? this though of much the most importance, it is much the most difficult to form an opinion - the value of all property must depend especially on the security it ??, and the annual profit it affords - the shares in this bank, I think, must be secure property - notes and money deposited in the bank must in a common course of things, be secure and safe - the management of this common stock, I think must be good; because it must ever be for the interest of the stockholder to see that it is so - the only difficulty of any consequence is in forming an opinion - I have heard none ?? ?? than 6% annual profit, clear of expenses, and none more than 15% - my own opinion brings me much nearer the first than the last - there may be more or less economy in the management, which may occasion some little uncertainty - but the principle thing in ascertaining the profits is the rising ?? on the quantity of bank notes the bank will be able to ??? - and in forming an opinion as to this, I say the credit of the bank out of the question; presuming it will be good and will ?? for supporting a ?? sum in notes equal to the stock deposited; beyond which it will have no power to ?? its notes - - But there is a principle in this case of importance, which in a small bank would hardly be worth of noting - it is a principle which reports the Just quantity of ? medium a country can use - the good management of the public ??, and a general union in favor of money negotiations among other things, probably, will give life and activity to business in this Country, and consequently make room for an increase medium of trade - But this medium must ? this and ? other country, have it's natural boundaries, and the evil of too much or too little money must infallibly find its' own ?? in time; while gold and silver shall retain their present power and habit of finding when and where they are most and least wanted, and of changing plan accordingly - Some suppose the bank will be able to circulate the whole ten million; Some not more than four or five millions at present; hence the different calculations of profits - it is not easy to say with precision what is a sufficient ?? medium for then states - before the war it was computed at ? millions of dollars I think the better opinion now is that 12 million is wanted to increase it much beyond this, if this be adequate, must produce depreciation and correspondent high prices, which would soon be ? in our commerce with other countries; the evil would be felt; the cause known or inquired into; and a remedy to be applied found necessary - this may be all something - or part something and part paper but a considerable proportion of the former is ?? necessary; because ?? have only a local and limited circulation, and not acrue the purposes of foreign commerce - that ? will be much ? while it can be found in this country pretty certain - the people in general must have it in small payments - In a country as extensive as this many of the people, far removed from the commercial towns, will ever prefer gold and silver; and from ?? experience some districts in paper will remain for some time - what part of this twelve millions can consist of bank notes is uncertain - but to suppose one half, 6 millions in bank notes, seems to me to be going quite far enough; and I believe as far or further than any country has done for those bank notes must be in addition to public negotiable securities, bills and private negotiable notes and other negotiable papers that enter largely into all the transactions of trade of this 6 millions which I ?? appears to me to be a large sum in bank notes for this Country - the banks of Boston, New York, Philadelphia and Baltimore - must furnish a considerable part to put into circulation 10 or even 7 or 6 millions of dollars of the bank notes of this one bank of the United States in addition to the notes of the other banks, I think would be an evil - this 10 millions named in the law is the highest sum; and I suppose contemplates a great ?? increase of the wrath of this country in the 20 years; and also that all the other banks may be swallowed up in this one - but if this bank can circulate 5 millions of dollars, the ? must be good property and afford and annual income of more than 6% - this I should suppose, even in this country, will be generally considered as a good profit on all that property which men can take from their quick stock, and ? by in security as many circumstances may recommend - If the circulation of bank notes are limited as before ? and on this principle mention to a certain sum then deposits in the banks only sufficient to support that sum are required, and all ? there beyond that sufficiency are unnecessary and ? - hence quantity to multiply banks and deposits in them will be ?; and the remedy will be found in uniting them or in ? the property pledges to a state of sufficiency mainly to support a sufficient quantity of bank notes With sentiments of ?? ?? I am gentlemen your obedient servant reguards N. Dane Mrs. Brown and Thorndike P.S. I'll thank you to send the ? to Mrs. Dane - my compliments to Mrs. Brown and to Mrs. Thorndike NB. On ? further how much ? ? in France England ? ? ? doubt whether we have not always computed the quantity of ? necessary for the Untied State much too low.

7551