)bananjayarae Gadgil Library IIl1mmmOmnu IDIOt GIPE-PUNE-014136 BUSINESS ENTERPRISE IN THE AMERICAN REVOLUTIONARY ERA

BY ROBERT ABRAHAM EAST ----- ~- - No. it31 in the "Stwies in History, Economics f..:.Dd Pub~io ~w" or Columbia University.

SUBMITTED IN PARTIAL PULFILLMEN1' OF l'HE REQUIREMENTS rOR THE DEGREE OF DOCTOR OF PHILOSOPHY 11'1 THE FACULTY or POLITICAL ScIENCE COLUMBIA UNIVERSITY

NUMBER. 439

NEW YORK 1938 XS2,7~, n ~~ \4 ,~t:.

COPYl!IGHT, 1938

BY

CoLUMBIA UNIVERSITY PRESS

PRINTED IN THE UNITED STATES OF AMERICA 1to

MY WIFE EUZABETH PADDOCK EAST PREFACE

b seeking the origins of the corporate and other big busi­ DCSS enterprises .-hich appeared in steadily increasing numbers after the American Ra-olution, the first twelve chapters of this study really serve as an introduction to the last two, in which the earliest of those enterprises are analyzed Such a study necessarily emphasizes the constructive rather th1.' the destructive forces at work in the period, but this in no wise invalidates the thesis. For if the facts cited do not explain the resnIts, what facts do? Surely not the destructive ones.. Xor can it be argued that what happened after 1]81 was due solely to the financial leadership of Alexander Hamilton. Xot only were his ideas not to materialize for another decade, but he was then to appear more troly as the spokesman for, rather than as the creator of, a new business element. It is ineritable that some discussion of politics should accom­ pany a monograph like this, since politics and business are closely related In the two chapters which deal with that sub­ ject:. hmll-e,-er, the thesis requires an emphasis on economic factors .-hich resnIts in the rirtna.I exclusion of many others. Such a treatment therefore makes ho pretence to finality, but rather to a tentative hypothesis, to be weighed in the light of subsequent research. I say subsequent, because I do not be­ lia-e that there has as yet been sufficient study of the Revolu­ tion through which to evaluate a work of this type, even from the political angle. Documents of a particnlar kind abound, but only a fnr reaDy critical interpretations, especially those made upon a broad basis of social facts, have been forthcom­ ing. Such an unfortunate situation is largely due to a heavy crust of tradition, .-hich has been only partially db-pelled by the works of such men as \\illiam Graham Sumner, Charles A. Beard, J. Franklin Jameson, Joseph Stancliffe Davis, Allan Xnw, Edward Channing, Charles H. Lincoln, and Thomas p, Abernethy,

7 8 BUSINESS 'ENTERPRISE: REVOLUTIONARY ERA It has been my good fortune to make this study under the direction of an historian fully aware of the need for further critical investigation. To Professor Evarts Boutell Greene of Columbia University I am indebted for my introduction to the problem, in his seminar on the Revolutionary Era. In the years of research since then, he has given me heavily of his time ·3.{Id advice, combining scholarly criticism with a wonderful amount of patience. In all fairness to him, and to those per­ sons mentioned below, I should add that full responsibility for the development of the thesis, the research that lies behind it, and the form of its presentation, rests with myself alone. Also of the Department of History of Columbia University, Professor John Krout gave me the benefit of two readings of the manuscript, Professor Harry Carman kindly criticized an early draft, and Professor Allan Nevins helped in several im­ portant ways to enable me to complete the work. A portion of Chapter Nine was developed in a history seminar conducted by Dr. Dixon Ryan Fox, formerly of Columbia University, and now President of Union College. To Dr. Charles A. Beard of New Milford, Connecticut, I am grateful for the heartening encouragement that followed his reading of a draft, and to Professor Norman ·S. B. Gras, of the Graduate School of Business, Harvard University, for stimulating criticism that resulted in improvement of terminology and the avoidance of error on several points. From his spendid knowledge of manu­ script sources in the period, Mr. Thomas Robson Hay, of Great Neck, Long Island, gave me generous information. The Jona­ than Jackson papers were made accessible through the kindness of Mr. Austin Oark, of Washington, D. c., and helpful in­ formation from the New York State Library, Albany, was supplied by Miss Edna Jacobsen of that institution. Miss Josephine Mayer, of Teachers College, Columbia University, enlarged my knowledge about several important characters, and Mr. Joseph Bailey, of New York City, and Dr. Leith Skinner, M.D., of Albany, New York, both criticized portions of the manuscript. Through the aid of Mr. Gerald Snedeker PREFACE 9 of The National Archives, Washington, D. c., the task of proof reading was lightened. The dedication of the book to my wife is inadequate tribute to the person most responsible for the ultimate completion of the work, not only by her steady encouragement but by her assistance in preparing it for the press. As an invaluable guide to the problems and personalities appearing in this study, the index should be carefully noted I>y the reader. It is a product of the fine scholarship of Mr. David M. Matteson, to whom all students of history have long had so much reason to be grateful. I am also indebted to the following institutions for opening their resources to me, and to their staff members who were uniformly courteous and helpful: The Essex Institute, Salem, The Baker Library of the Graduate School of Business, Har­ vard University, The Massachusetts Historical Society, Bos­ ton, The American Antiquarian Society, Worcester, The Con­ necticut Historical Society, Hartford, The Connecticut State Library, Hartford, The Rhode Island Historical Society, Providence, The New York Historical Society, The New York Public Library, The Library of the Chamber of Commerce of New York State, The New York Bank and Trust Com­ pany, The American Jewish Historical Society, The Library of Columbia University, New York City, The Historical Soci­ ety of Pennsylvania, Philadelphia, The Library of Congress, The Division of Old Records of the War Department, The Treasury Department, Washington, D. c., and the Burton His­ torical Collection, in the Free Public Library, Detroit. ROBERT A. EAST. WASHINGTON, D. C. APRIL, 1938. CONTENTS

rAGa PUFACE ••••••••••...... • • • •• 7 PART I

INTRODUCTION CHAPTER J • The Late Colonial Business Scene . . . . . 13 CHAPTER II The Revolutionary Ec:onomic Forces •. . . . . • • . . . • .. 30

PART II

YEARS OF CHANCE, 1775-1782 CHAPTER III Massachusetts and Rhode Island. • ...... 49

CHAPTER IV

Jeremiah Wadsworth and His Associates •• So

CHAPTER V Hudson Valley Business . • . • • . . IOI

CHAPTER VI Robert Morris and His Group ......

CHAPTER VII Pennsylvania to Northern Virginia .•... 149 CHAPTER VIII

Activities Under Two Flags ...•• ISo

CHAPTER IX The Question of Business Freedom.. • .• ...... 195

CHAPTER X

Some Economic Consequences of the War • • • • • • • • . . 213

II 12 CONTENTS

PAGE PART III

YEARS OF CONSOLIDATION AND EXPANSION, 1783-1792 CHAPTER XI Economic Developments in the 1780's . • . • . . . • • . . . . • • 239

CHAPTER XII A• Counter-Revolution and its Benefits • • . . • • . . . . • . • • . 263 CHAPTER XIII Commercial Banks, 1781-1792 • • • • . . . • ...... • . . 285

CHAPTER XIV Other New Enterprises: Conclusion . 306 ApPENDIX A ••• 327 BIBLIOGRAPHY • 330 INDEX ••••• 357 CHAPTER I THE LATE COLONIAL BUSINESS SCENE

THE early colonial period in America was largely devoted to the conquest of nature by persons possessed with an abun­ dance of purposeful energy but with little surplus wealth. As the frontier receded, however, and the flow of foreign capital increased, an element slowly emerged in the seacoast region• blessed with an accumulation of more of the things of this world than were required for daily living. By the eve of the American Revolution an impressive amount of personal riches, together with the control of large sums of mercantile capital, were at the disposal of certain persons fortunate enough to dwell in urban eastern communities, or in those small but vigorous towns which fringed the rivers and harbors of the Atlantic seaboard. So greatly, indeed, had the pursuit of profits enriched the . successful northern colonial merchant-the typical sedentary business man-that he could not only build up an elaborate commercial establishment frequently representing ten thousand pounds in ships and buildings, but could also acquire additional riches which enabled him to invest in many other fields. Nor was it the merchant alone who had such interests, for non­ merchant capitalists had also appeared in the character of those leisured persons called "gentlemen." These two categories of capitalist were not sharply distinguished one from the other, however, since members of commercial families both entered the more cultured professions and inter-married with the landed gentry and provincial office-holders. In'pre-Revolutionary New York the merchant De Peysters and Rutgers were inter­ married with the land-owning Van Cortlandts; the Ludlows, Alsops, and Floyds were connected with each other and with landed families. In Pennsylvania the commercial Willings, McCalls, and Francises of Philadelphia were related by kinship and marriage with the land-owning Shippens and Yeateses. 13 14 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Commercial, landed, and office-holding interests were similarly united in Massachusetts through such marriages as those con­ necting the Hutchinsons and Olivers, the Royalls, Olivers, and Vas salls, the Ervings and Shirteys.l The upper crust of society thus became fairly identical with its wealthy group, and an interest in commercial capitalism was accordingly wide-spread among members of the favored social groups. • Since the well-being of commerce affected the interests of many persons other than merchants, it, together with agri­ culture, became fundamental for the business economy of young America. When ships made quick and prosperous returns from foreign lands, and when wharves bustled with the activi­ ties of longshoremen, then times were good for many a gentle­ man who knew not jib from jury sail; then local industry and local borrower were apt to receive the capital they had long since needed. When the contrary was true and commercial depression was felt, as frequently happened particularly because merchants would sometimes import excessive quantities of goods, then the whole internal economy and social structure of the colonies was disturbed. Hence it was that political conse­ quences of a most serious and widespread character resulted from new British commercial regulations in the. pre-Revolu­ tionary decade. This political situation should not, however, disguise the high potentialities which American shipping and its related enterprise presented in those same troubled years. Business had been especially developed by the late French and Indian War which, capping a half-century of steady business growth expedited by the neglect of imperial officials in enforcing British regulations, had stimulated colonial merchants and ex-

1 Cf. statements as to this tendency by the genealogist W. S. Whitmore, in the Memorial History of Boston, II, 563, 564. and his geIleQlogical tables following j cf. also biographical sketches of members of such families in works of E. A. JOIreS and J. H. Stark, Loyalists of Massachusetts; V. D. Harrington, New York Merchant on Eve of the Revolution, Chap. I ; Thomas Balch, ed., Papers Relating Chiefly to the Provincial History of Penna., Intro., giving genealogical tables. THE LATE COLONIAL BUSINESS SCENE IS panded their interests. The conflict gave valuable opportunities to those interested in supplying the British forces, produced smuggling and privateering, fostered new trade routes, en­ larged certain seaports, and opened roads to the West over which traders promptly drove their pack horses in wake of the armies which conquered Pittsburg and Niagara.2 It is true that the war was succeeded by the inevitable depression during which many of the more extreme adventurers went bankrupt! but the business scene immediately after 1763 was in most places one of promise, American merchants particularly demon­ strating their aggressiveness by continuing to reach out to non­ British ports, in legal and illegal trade.- Though it may be argued that the interest of New Eng­ landers in such new routes of trade was especially indicative of the increasingl,c burdensome nature of British commercial restrictions, it should be understood that it was still possible for some merchants there to make profits even in the pre­ Revolutionary decade: Jackson and Bromfield of Newburyport, Massachusetts, cleared £7,591 profits on the slender trading capital of £1600 between 1766 and 1774.4 Moreover, it is clear that the whole question of the prosperity of shippers in New England, as elsewhere, was becoming contingent upon other than imperial factors alone: it was the steady growth

2 The war introduced a period of the greatest potential conune:rcial activity in colonial times, according to John Stevens, p,.og,.ess of New Yo,.k Us • Cefllury, p. 36. For general effects from the conflict see William Weeden. E."/y RhoM IswM, p. 264; Henry C. Dorr in Rhode Island Hist. T,.ai:ts, no. IS, 197; F. M. Caulkins, Norwich, Chap. XXII; on Albany, Mrs. Grant, MefflDi,.s of All AmemOll Lody, W. 51, 2s8; on new road construction and western trade, see May Burd, in p,.oc. Northumberland Hi9t:. Soc., III, 82 ff .. and Thomas Bakb, ed., P,.crvi",ial Penna., Intro., xcii. Merchants who bene­ fited from the sale of supplies to the British army included Robert Ogden of New Jersey, John Watts and William Alexander of New York, and Charles Apthorp of Boston. 3 E. R. Johnson, eeL, Domestic aM Fo,.eign Comme,.ce of tile U. S., I, 51; on clandestine trade with the Baltic region, see Harrington, 01. cit., pp. 198. 191). . 4 K. W. Porter, JtJCksolll tiM Lees, I, 257. 16 BUSINESS ENTERPRISE: REVOLUTIONARY ERA of a national economy which rendered Yankee commerce ever more tortuous, relating it to the interests and rivalry of mer­ chants from the middle provinces especially. 5 Boston, for example, had lost her West India trade monopoly of 1700, and, though she was still foremost in the sloop and schooner distri­ bution of goods to coastal towns, New York was pressing her even in that line in Rhode Island and Connecticut. The latter situation• was especially significant since Boston, lacking a rich agricultural hinterland, had already become partly dependent upon the middle colonies for cereals and upon Connecticut for beef. Yet such an inter-dependence of provinces was excellent for the Boston commercial element, however distasteful the rivalry. Connecticut merchants were, on the whole, equally aware of expanding opportunities by 1775; though still largely dominated by Boston and New York interests, they increas­ ingly traded with the West Indies in their own vessels. They possessed a productive hinterland of their own, the Connecticut Valley having been the first region to produce a wheat surplus, e though before the Revolution other native products, especially beef and pork, were more plentiful for shipment.' In Rhode Island still other favorable business circumstances were in evidence, particularly benefiting Providence which was be­ coming a serious rival of Newport. In contrast with colonial Boston, both New York and Phila­ delphia had direct access to wheat-growing districts which gave foreign shipping the breadstuffs even England was beginning

5 This and the following generalizations are largely based upon a com­ parative analysis of Harrington, New York Merchant, Chaps. V; VI; S. E. Morison, .. Commerce of Boston ort Eve of the Revolution," in Amer. Antiq. Soc. Proc., n. 5., XXXII; M. A. Hanna, .. Trade of the Delaware Distriot before the Revolution," Smith. College St'lldies in Hist., II. 6C. B. Kuhlmann, Development of Flour Milling Industr'JI in U. S .. p. 8. He points out that this declined ullltil, by 1800, Connecticut had to import wheat. '1 See Henry B. Stiles, Ancient Wethersfield, I, 542-552; on Connecticut doing business through New York instead of Boston after 1751, see A. M. Schlesinger, Coioniaillferchants and the American Revolution, p. 26. THE LATE COLONIAL BUSINESS SCENE 17 to demand.· Merchants of both cities also participated in the commercial exploitation of the West on a scale naturally un­ equaled by Bostonians. Philadelphians, like Willing and Morris, had another special interest in the tobacco trade of the neighboring South where British factors, however, were still dominant The commerce of the Pennsylvania port was further stimulated by enterprising Irish merchants who had settled there in considerable numbers after 1740, at least thirty of .them having achieved prominence by 1775, taking their place along with the earlier established Norrises, Meades, and Conynghams. New Jersey continued to be dominated by the trading capital of her wealthy neighbors, but south of Phila­ delphia, Baltimore was achieving commercial independence, partly also at the expense of Annapolis, and was growing rapidly after 1750 as a result of the increased production of wheat in her back country.· Another important wheat and tobacco port was Alexandria, which was competing with Dum­ 1 fries by 1775 for commercial supremacy in northern Virginia. • Such growth of town, and of even something like national, economy, surely gave promise of an expanding commercial future (except for Newport and Annapolis, about which less can be said with confidence), del\Pite the troublesome events of the age of George III. The prospects for business expansion were even further demonstrated by the number of other in­ terests which wealthy persons in such towns continually utilized, and these probably amounted to more in the aggregate than those confined to the purely commercial field. These other types of investment amply demonstrate that, by the eve of the

lOG England'. cIanand for wheat, c/. Harrington, o~. cit., p. 170; Ha.ma. 0'. cit .. p. a6.t. baa IDIICIi to say 011 the increasing of wbeat exports frOID Philacklphia to IOUtherD Europe. • C. P. GoaIcI, • Economic ea- of the Rise of Baltimore." in EssaY. PrrMflktl ,. C. M • .drtdrnn, pp. 240, 247; 011 Philadelphia's inftueuce in the Delaware rqioa, however, lee hi... MOIIq' and Transportation in Mary- 1aD4." lobi Ho~k" Strulie., XXXllI, IJ. 10 Fairfax Harrisoa, Lortd",.,.b of Old PrifIe, WilliD .... II, pp. 407-410. 18 BUSINESS, ENTERPRISE: REVOLUTIONARY ERA Revolution, a considerable amount of surplus capital was al­ ready available for any new business opportunities time and circumstance might bring forth. But they also point to the lack of anything like a highly specialized investment system in colonial America, since the individual capitalist still per­ sonally performed a variety of financial functions in much the same way as his commercial ancestors had done for centuries. • The most important of these other investments were in real estate, wealthy men securing lands in cultivation~ business buildings, or houses and wharves which assured an income in produce or rent. Notable examples of such investors in New York were the Bayards and Robinsons,a member of the last family having a "rent-roU" estimated at £1,257.11 Joseph Galloway, a Philadelphia lawyer with a mercantile fortune, claimed an annual rental of £500 from one city house alone, and income from seventy-five to £460 from each of nine other estates, besides an annual £300 from" money on interest.U12 Such landlords, as distinguished from home seekers, also sought uncultivated lands for pure speculation, though these were sometimes patented as political favors. Merchants were fre­ quently foremost in this practice, even ~n small places. In Philadelphia a wealthy Indian trading group repeatedly ad­ vanced money at interest after 1763 to Geo;ge Croghan, a vigorous preemptor of the West. Affiliated with this group, however, were several persons not in trade, such as Goldsbrow Banyar, secretary of the province of New York.18 Crude manufactures occasionally attracting capitalists were distilleries, sugar refineries, flour mills, pot and pearl ash works, iron furnaces and bloomeries. Merchants were naturally interested in enterprises so closely related to their trading ac­ tivities. In Boston, for example, the Apthorps, Coffins, and

11 HarringtOtll, op. cit., pp. 134, 135. 12 Loyalist Transcripts, vols. '3, 49, So. Such claims were possibly exaggerated. 13 Harrington, op. cit., Chap. IV; A. T. Volwiler, Croghan and the West­ ward Movement, pp. 260, 281, 288 •. THE LATE COLONIAL BUSINESS SCENE 19 Brinleys were owners of distilleries, though even a counsellor­ at-law of that place could claim £500 annual income from the same source.'· Iron-works attracted even greater amounts of local capital, in addition to much drawn from England.15 Sev­ eral other Boston business men made investments in this field in late colonial times; and in Rhode Island Stephen Hopkins and the Brown brothers became concerned with Jabez Bowen.- in a well-known iron furnace at Scituate. Several New York merchants, retired and active, invested in local and N ew Jersey works, while the AlIens and Morrises of Philadelphia ad­ vanced iron manufactures for many years in Hunterdon County, New Jersey, and Bucks County, Pennsylvania.'" Non­ merchant capitalists similarly financed such enterprises, as did Peter Oliver, Chief Justice of Massachusetts, who helped con­ struct a slitting mill in Plymouth County in 1751.1f The Livingstons of Livingston Manor on the Hudson owned the Ancram works, while the wealthy Maryland landowner, Charles Carroll, held a one-fifth interest in the famous Patapsco iron industry and was a capitalist to the additional extent of having over £24,000 owed him by debtors in 1762.18 Indeed, it has been pointed out that at least six signers ,of the Declaration of Independence were directly connected with the iron industry, and that many important Revolutionary leaders had an interest in it. However, a depression in the industry around 1770 is said to have been partially caused by a lack of capital.lO There is, on the other hand, virtually no proof that the

II putting-out" system of textile manufacture involved colonials

.. E. A. Jones, Loyalistl of MOIl., pOIsim; Loyalist Transcripts, vols. 3, 49. 15 Victor S. Clark, Histo,.y of ManufactIWeI in U. S., I, 145, 146., 16 Loyalist Transcripts, vol. 3; A. C. BiDing, British Regulation of the Colonial 1,.0,. IrwlUltry, pp. 126, 127; J. M. Swank, I,.on in All Agel, POIsim. 17 Loyalist Transcripts, vol. 3. 181Gate Rowland, CluJrlel Ca"oll, I, 60; Gould, "Money and Trans­ portation in Maryland," 1oc. cil., pp. 113-120. 19 Bining, Coloniall,.on Indus".y, pp.14. III, 112. 20 BUSINESS ENTERPRISE: REVOLUTIONARY ERA in a capitalist capacity: 20 household manufacture was largel) for home use. Nor did the decade of imperial strife and occa· sional commercial bOycott, 1764-1775, appreciably interest Americans in the textile industry. A linen" manufactory" was organized in Boston in 1764, a "Society for the Promotion of Arts, Agriculture and Oeconomy" in N ew York the same year, a silk company in Lancaster in'1770, and a textile" pro­ .rioting" company in Philadelphia in 1776; but these and other efforts were shortlived though their joint-stock character is significant. Public subscriptions were insufficient on several such occasions; men of capital generally refused to back the schemes. 21 Moreover, popular suspicion was characteristically aroused in Boston in 1768 lest a subscription committee which was to run, at its own risk, a manufactory to employ the poor, should make undue profits. 22 The colonials were much better acquainted with simple in­ vestments secured by paper obligations in the form of personal notes, bonds, and mortgages. Persons thus lending money were enumerated by John Adams as .. Men of fortune, who liv~ upon their income, and these generally choose to have a' sur­ plusage to lay up every year to increase their capitals," in' addi­ tion to opulent merchants, widows, guardian.s of orphans, a few lawyers and clergymen, an occasional farmer or trades­ man, together with schools, colleges, towns, parishes and other societies.28 A few specific examples may be mentioned. Phineas Bond, a Philadelphia lawyer, in 1776 had" money at Interest on Mortgage Obligations and Notes" to the amount of £1792, while in New Jersey, Elias Boudinot, son of a retired merchant, was another lawyer who held numerous personal notes. The

20A. H. Cole, American Wool Manufacture, I, I!). 21 Cf. Schlesinger, Colonial Merchants, pp. 65, 109, IIO, 123. 130, 492, 502. Pre-war boycotts encouraged the Mass. shoe industry, however: Blanche Hazard, Boot and Shoe Industry, p. 29. 22 Doc ••02517, in Mass. Hist. Soc. 23 E. C. Burnett, ed., Letters of Members of the Continental Congress, U,248• THE LATE COLONIAL BUSINESS SCENE 21 estate of the wife of Sampson Blowers of Boston" consisted of houses, but chiefly of money lent on personal and real se­ curities." 2. Lieutenant-Governor Thomas Hutchinson had money invested in " Bonds and Debts," and Sir John Bernard claimed that nearly £6000 were due him in America when the Revolution broke out. A great landowner in Massachusetts, Harrison Gray, also had large sums out in the form of bond", while the estate of Cadwallader Colden, who had been an office holder in New York, listed in 1776 loans due from seventy .. three persons. U Even among the clergy the Reverend Mather Byles, the younger, of Massachusetts, held several bonds; and the Reverend Alexander Murray of Reading, Pennsylvania, owned both bonds and mortgages. An example of a doctor with large sums represented by paper obligations was Sylvester Gardiner of the Bay Colony.28 Merchants accepted such security in extending commercial credit as well as in making personal loans. Several New Yorkers on the eve of the Revolution had more than £17,000 invested in bonds and notes, though these amounts were ex­ ceptional.t1 Possibly it was such merchants there who adver­ tised, in 1769, cash to discount bonds, bills, notes, and to lend on bottomry, and who also offered sums to be loaned on real or personal security." Peter Faneuil of Boston claimed to have lost £2500 in paper security as a result of the Revolution, and James Bowdoin also loaned extensively.28 In smaller towns, too, the trader was naturally the moneyed man. In Beverly, Massa­ chusetts, a merchant Cabot's widow left in 1781 a "Total of 24 Loyalist Transcripts, vol. 49; Elias Boudinot Ledger, passim; E. A. Jones, op. cit., pp. 16, :rI. 25 Loyalist Transcripts, vol. 2; E. A. Jones, dP. cit., pp. 29t 151; Colden Pape,.I, New YOI'k Hist. Soc. Coli., LVI,:rI4- 26 E. A. Jones, op. cit., passim; Loyalist Transcripts, vol. So. 'J!1 Hacrington, op. cit .. pp. 131, 132. 28NnII Yori CA,.o";ck, June 5-8, J76g, as quoted in Adolph Eliason, RiI, of C_fUf'cial BaJlkinglflStitlltioflS in U. S., pp. 33, 34; Crooks Estate Sntlement Book gives the invcstmmts of a wealthy New York trader. 29 Loyalist Transcripts, vol. 3; Mass. Hist. Soc. p,.oc., VI, 360. 22 BUSINESS' ENTERPRISE: REVOLUTIONARY ERA Bonds & Notes" amounting to £7399, as compared with a " Total of Inventory" of only £2619. Philip Schuyler, a lum­ ber dealer and landed gentleman near Albany, was constantly acquiring personal notes. 80 If the merchant, was not the only colonial money lender, he was most frequently the banker for his neighbors. John J!Iancock loaned his friends money and credit for travel and general accommodation, and cashed pension certificates; he also held cash deposits in his big iron chest. Such was also the practice of Captain Richard Derby of Salem.81 More modern types of paper investment open to the colonials were the "stocks" of the British national debt and the " funds" of the Bank of England, investments closely related to the development of the modern state. However, the evidence for colonial interest in these or in the stocks of English trading companies is scanty, though several New York mer­ chants and Henry Lloyd of Boston did invest in the" stocks," and though Thomas Hutchinson and General Bradstreet of Massachusetts did become interested in the" funds." 82 A prob­ able explanation of the general reluctance to utilize such oppor­ tunities was the difficulty of manipulating securities for a rise and fall in the market at such a distance from England, as John Watts of New York found when he tried" gaming" in them. Moreover, interest rates from local investments were higher. Securities of colonial municipalities were readily pur- 30 Lloyd Briggs, History and Genealogy of Cabot Family, I475-I927 (Boston, 1927), 1,54; Schuyler Papers, Box 42. 31 A. E. Brown, John Hancock, His Book, pp. 250, 251; R. E. Peabody, Merchant Venturers of Old Salem, p. 23; cf. also Edward Edelman, "Thomas Hancock, Merchant," in J. Econ. Bus. Hist., I, 89. Henry Laurens acted similarly in Charleston: Leila Sellers, Charleston Business on Eve of Revo­ lution, pp. 49, 74; so apparently did Robert Morris in Philadelphia: cf. Morris to Mrs. McCall, Aug. 16, 1780, Morris Papers ion New York Public Library. " 32Letter Book of lohn Watts, New York HiM. Soc. Coli., LXI, 142; Lloyd Papers, New York Hist. Soc. Coil., LX, 745; Loyalist Transcripts, vol. 3. Hutchinson held 4000 of the Funds when he died in 1780; the Bradstreet family "originally" held £6000 of them. THE LATE COLONIAL BUSINESS SCENE 23 chased, however, notably New York City bonds after 1750. Massachusetts treasury notes, bearing six per cent interest, were also considered good buys even by New York business men." Though so many colonials had surplus wealth for these varied investments there was no widespread cooperation among them in financing business enterprise, even in trade. Investmen~ technique was still rudimentary since business organization, of which the simple partnership was typical, was commonly confined to but a f!,!w persons. An exceptionally large inter­ colonial business venture was the United Company of Sperm­ aceti Chandlers, organized in 1761, which combined Boston, Providence, Newport, and Philadelphia firms to monopolize the candle market by controlling raw materials, manufacture, and prices; but its partners were not more than twenty in addition to the Brown brothers of Providence.'6 Even the underwriting of marine insurance was a strictly voluntary practice by individual merchants from time to time, and not a company-controlled activity, except possibly for the \Villing-Morris concern mentioned below. It was the most important kind of cooperative colonial business, however, and has long heen recognized as a starting point for greater capital­ ist interests everywhere. It even involved inter-provincial re­ lations: New York merchants underwrote for shippers else­ where, particularly in Rhode Island.1Ii There was a group of marine insurance investors established in Boston for many years before the Revolution at the II office" of Ezekiel Price, secretary to three provincial governors"· Another Boston of- 33 C/. Harrington, ot. tit., pp. 128-133.

34 C. G. Mason, H The United Company of Spermaceti Chandlers, 1761," Mag. NnD E"!/. Hist., VII, 166-168. There is ref«ence to a .. New Spermaceti Manufactory," owned by Providence merchants after 1769, in the Nightingale-Jencks Papers, in Rhode Island Hisl Soc., under Jan., J772. 35 Harrington, o~. tit., p. ISS. 36 C/. brief sketch of Price and his business in New Eng. Hist. Genealog. Soc. R~g., XIX, J29, J3O. 24 BUSINES~ ENTERPRISE: REVOLUTIONARY ERA fice was that of Edward Payne, a connection of the Amorys.

In New York two such offices existed after 1759: the II Old Insurance Office" at the Coffee House, and its rival, the II N ew­ York Insurance Office," set up by Anthony Van Dam and pat­ ronized by the Crugers and Waltons.87 Possibly the greatest place for this activity, however, was Philadelphia where Quaker capital often participated in it.88 The organization effected there in 1757 by Thomas Willing and Company, in which Rob­ ert Morris was a partner, was a notable advance beyond the

loose association of the II offices." It consisted of II Six Gentlemen of Fortune, their Stock cant be less than £80,000 which will make an addition of £600 to the Sum we could formerly have done here on anyone Risque." 88 Further cooperation by business men was badly needed, espe­ cially for the establishment of commercial banks, and it be­ came increasingly feasible since the use of modern credit instruments partially broke down the independent business character of the colonial merchant and gradually developed something like a " community of interest" point of view. For example, bills of exchange were sometimes used for com­ mercial remittances by open market purchasers who might transmit them through several other persons before they were finally "received" by the drawees.'10 In Maryland bills on London passed freely from hand to hand in the settlement of local debts.n The stoppage of payment on bills in 1765 by a 37 Stevens, Progress 0/ New York,p. 42; T. H. Montgomery, History of the Insurance Company of North America, p. 22. 38 Morutgomery, op. cit., pp. 15-19, 165; J. A. Fowler, History 0/ I~ surance in Phila., p. 28; H. E. Gillingham, Marine Insurance in Phila., p. 55 ff. 39 Quoted from Gillingham, op. cit., p. 31. 40 Harrington, op. cit., p. II 5, only briefly mentions such open market . purchasing of bills. Their importance is possibly minimized by A. H. Cole, in I. of Bcon. Bus. Hist., I, 386 ff.

41 Gould, II Money and Transportation in Maryland," loco cit., p. 402. It is interesting that in colonial Ma-ryland protested bills had special claims over other kinds of debts in the courts, evidence of the development of the legal basis necessary for this capitalistic function: wid., p. 38. THE LATE COLONIAL BUSINESS SCENE 25 Mr. Wheelwright of Boston occasioned general distress in mercantile circles there because; as John Rowe said, .. a great number of people will suffer by iL" a Such developments at least helped to give merchants a common credit consciousness, and showed the need of institutional banking discipline to dis­ criminate in commercial paper at a time of business crisis. Yet the colonials did not organize a single commercial ~, though Robert Morris later claimed to have laid the founda­ tions for one in Philadelphia.a There were of course a few coIonialland speculating and iron manufacturing .. companies .. and several trading and mining .. companies," all possibly organized on some vague kind of joint-adventure basis; but shares of ollrDership in them were never circulated freely or nen speculated in." This condition prevailed in spite of the contemporary development in England of commercial banks as well as of chartered and unchartered joint-stock trading companies; in spite of the fact that transferable stocks had long been mOllrD abroad.a A stock exchange was finally estab­ lished in London in 1773, but there was not the remotest de­ mand for one in colonial America. This lag in the financial organization of colonial business was not due to an inadequacy of capital. as the foregoing paragraphs prove. but to other factors. Firstly, simple. per­ sonaIly supervised investments were both fairly safe and paid good interest, so that people were not disposed to seek new openings. Secondly, there was insufficient cooperative discipline

G A. R. Cuoaingbam, eel.. LltlNs" Di4ry "f I"b RtnDr. p. 74- 43Yatbrw Can7, pit.. D~baks ita 1M PnlASJh:IfIaUJ Aur.bly .•. , p. g. 44 1. s. oms. Eu.,s ita tM E.rlier Histllr:l "f A..mc.. Ctwtoratitnu. I. 91'111l. IDmtions nrioas 1IDincorpontcd business .. companies," and Swank. lIt. rit~ toui-. mmtioos iroa manufacturing .. ampanies "; bat the true joint-stock charackr of these is dcdJtfal. The word bad a loose meanmg. G Tbe!c Eagtish banks wen of the par1IIenhip Yariety, because of the IDQIIOPCIlistic cbancter of the joint-stock Bank of EugIaDd.. Yr. Armand DuBois of the Columbia Coiwrsity La... SchooI,.ho bas made an extmsive SbId7 of eicbtaath c:mlur)' E.ogtish corporations, assures me that the • Babble Aa." far froaa destroyed lII1iDcoIpurated joint-stock companies. as it popularlY sapposecl 26 BUSINESS ;ENTERPRISE,: REVOLUTIONARY ERA and a lack of constructive leadership in provincial business, built as it was upon the British empire. For example, the tra­ ditional reliance on British commercial credit-developing into a condition of economic bondage--retarded the establishment of commercial banks in America. Thirdly, imperial restrictions prohibited many distant trading ventures, hampered some cQlonial industries, and forbade the formation of unincor­ porated joint-stock companies which such greater group enter­ prises might have utilized. Moreover, the power of colonial governors or assemblies to incorporate was questionable and always cautiously exercised.46 But the fad that the law for­ bidding unincorporated companies was, obeyed better in the colonies than in England also reflects the colonial lack of in­ terest in such companies. Possibly an equally important retarding influence was the hostility in the colonies themselves toward the merchants and their advanced methods. The colonial mind was predominantly agrarian-almost medieval-in many respects!' There were. innumerable colonial restrictions against regrating, engrossing, and forestalling-the old protests against a refinement of trade methods by "big business" wholesalers. Privilege through charters was especially feared by the common people. "My son, fear thou the Lord and the King; and meddle not with, them that are given to change" (Proverbs 24:21), was: a sentiment expressed in Boston in 1714 in protest even against incorporation of the town, because "then the Rich will exert that right of Dominion, which they think they have exclusive of all others." 48 Even manufactures in pre-Revolutionary Con­ necticut were jealously regarded by "the people." '9

46 Davis, op. cit., I, 2g, 107 et passim" shows that this was true, though he attri'butes absence of corporations primarily to economic and social factors. 47 This was especially true in eady colonial America: ct. E. A. J. JohnsOll, Americall Economic Thought ill the Seventeenth Century, pp. 30, 83; ct. also Oive Day, co Capitalistic and Socialistic Tendencies in the Puritan Colonies," Annual Re'p. Amer. His.t. Assoc., 1920, esp. pp. 233, 234- 48 Col. Soc. Mass. Pub., X, 348-352. 49 ct. L. H. Gipson, Jared Ingersoll, p. 264. THE LATE COLONIAL BUSINESS SCENE 27 Such hostility against business men revealed itself in politics on the paper money question, which arose because the system of private investment fell far short of supplying the capital wants of the whole provincial society. Hence, in the eighteenth century, there were loud demands for the "capitalism" of land banks and provincial loan offices. While the merchants were not opposed to paper currency as such (for busines'i needed a convenient kind of money), they did want it issued with restrictions. Unfortunately, popular opinion was against them and their own private schemes.·o Governor Pownall of Massachusetts saw in the public paper money agitation-and he was not wholly unsympathetic with it-the fear that there was danger of the benefits of trade becoming " a monopoly to the monied merchant only." 11 Much of the hostility was due simply to the speculative tendencies of profit-seeking individuals. Serious complaint was raised in Maryland against paper money itself being used for such purposes by "infamous Jobbers ... merciless wretches that grind the very Poor," as Secretary Calvert himself said.1I A pamphlet attacking" capitalists" who were said to speculate in exchange bills and in gold and silver at a time of public necessity, was published in Boston in 1750, entitled Massa­ chusetts in Agony. •• In part such feeling was due to sectional animosity, as suggested by Charles Biddle in his Autobiography when he wrote that .. those from the westward look upon the people in any of the commercial towns as little better than swindlers.... JJ .. Even the lending of money aroused similar resentment, as undoubtedly among Pennsylvania farmers be-

50 ct. E. s. Sparks, Agricultural Cr~d,' ill U. S., p. 77 d lassim; cf. also A. M. Davis, .. Currency and Banking in Massachusetts-Bay," lassim, in 3 Pub. Amer. EcOil. Assoc., I, Part 4. II, Part 2. 11 Thomas Pownall, TIte Adm'1Ii.sIratio" of lite Colonies (London, (768), p. 227. 53 Quoted in Gould, .. Money and Transportation in Maryland," loc. tit., pp. 105-107. 53 A. M. Davis, o~. tit., Part 2, P. 186, refers to it. MP.I420 28 BUSINESS ENTERPRISE: REVOLUTIONARY ERA cause, according to Robert Morris, money lenders preferred to deal with citizens of the city, and country folk could not ob­ tain 10ans.&5 An Act of Maryland's legislature in 1704 set six per cent as the legal interest rate and retained it until the Revo­ lution. The South Carolina legislature not only reduced the rate to eight per cent in 1748, but even threatened to forbid ~e charging of interest on "book debt."56 Anti-urban and anti­ commercial feeling was indeed very evident in colonial politics on the eve of the revolt,51 and in face of all such hostility elaborate business organizations were perhaps inadvisable. It may possibly be argued that business failed to develop further simply because the colonials were not possessed of a sufficiently aggressive business mentality. It is a dubious point, however. Even in early Puritan communities some apprecia­ tion of the necessity for competitive business enterprise was manifest.58 That the colonial period produced forward-looking merchants, needs small proof. Even little Providence had its restless Captain James Browne, who set his famous trading· progeny an inspiring example by boldly striking out into new fields of trade, and into distilling and fabrication-thus effect­ ing a system of vertical business interests. ~8 And there were business men of his caliber in other towns in the eighteenth century. They all worked largely along isolated rather than cooperative lines, however; they were never completely" entre­ preneurs" in the sense of persons possessed with visions of big business organizat~on. The expansive character of late colonial busi~ess was never- theless evinced by the steady growth of both trade and sea- 55 Carey, Debates in the Pennsylvania Assembly, p. g6. 56 Gould, ofr. cit., p. II3; D. A. Wallace, Henry La"rens, p. 49. 57 Cf. Gel'trude Kimball, Providence in Colonial Times, p. 286; J. W. Griffith, Annals of Baltimore, p. 73; Charles Lincoln, Revolutiolaary Move­ ment in Penna., p. 83; W. G.Sumner, Financier and Finances of American Revolution, I, 110. 58Johnson, American Economic Thought, pp. 213-219. 59 There is an excellent sketch of his Career in G. P. Krapp, ed., The Letter Book of James Browne of Providence, Me,.chant, Intro. THE LATE COLONIAL BUSINESS SCENE 29 ports, together with the accumulation of considerable surplus wealth in the hands of a socially prominent element which made investments in a variety of enterprises. There would be good reason to argue from all this that even more rapid business advances would inevitably have followed, were it not for the additional fact that there was a conspicuous lag in colonial business organizations at that very same time. Group invest­ ment mechanisms were largely lacking, less by reason of re~ straints inherent in the unspecialized nature of commercial capitalism than because of the traditional reliance' of colonials on British commercial credit, accompanied by serious imperial restrictions and by a general economic provincialism which an agrarian public opinion intensified. Should such drawbacks be removed, however, and private enterprise be given a freer hand, and should reasons arise for investors to become dis­ satisfied with some of their older interests, it is evident that the basis was already partly laid for the growth of large scale business upon the English pattern. How the Revolution con­ tributed greatly to that end is the theme of the following chapters. CHAPTER II THE REVOLUTIONARY ECONOMIC FORCES

CONSTRUCTIVE .forces for advancing the modern economy have accompanied all recent wars. Those which appeared dur­ ~ng the American Revolution include the encouragement of a gainful and speculative business spirit; the expansion of some markets, foreign and domestic, along with the loss of others; the stimulus for new investment ideas, resulting from war loans and from the discouragement of older investment habits; the rise of new business groups and the idea of large scale busi­ ness association, as a result of extraordinary war activities. A brief sketch here of such important developments will serve as an introduction to the detailed material on business con­ ditions, and to a discussion of the struggle in politics against the old anti-commercial prejudices, found in the following chapters. There is considerable evidence of a gainful spirit at work during the Revolution. "That Speculation, peculation, and an insatiable thirst for riches" which "seems to have got the better of every other consideration and almost of every o~d~r of Men" was a frequent complaint of Washington. He was particularly bitter against forestallers at army expense in addi­ tion to "Speculators, various tribes of money makers, and stock jobbers of all denominations" whose" avarice and thirst for gain" he declared threatened the country's ruin.1 Yet this attitude was but an aspect of that temper which, by promoting exceptional profit-taking, has ever encouraged greater business activities. As Walter Bagehot said, a provincial mind cannot be stimulated to make risky investments without such spec-

1 J. C. Fi·tzpatrick, ed., The Writillgs of Georg, Washington, XIII. 335. 383.467. XIV. 300. d passim. 30 THE REVOLUTIONARY ECONOlllC FORCES 31 ulative inducrments. S Had it not been at a time when "the passion for spccu1ation was peculiarly active" that the Bank of England had been founded?· Such a spccu1ative attitude was that of numerous merchants .-ho now sought new opportunities for profit, frequently re­ ganlless of the political consequences since many of them were quite unsympathetic with the American cause. For the Revo- ~ lution was not a .ClI" of the "nation in anns," but a civil war in .-hich oo1y a third. according to John Adams. was vig­ orously Whiggish. Furthermore. the merchants had the tra­ dition of trade being a law unto itself. as it had been to the great profit of some of them and considerably to the advantage of the French in the last colonial .ClI". Illegal trading methods were common and generally condoned, and the English spirit of the times was most conducive to irregularity in relations brta·een business and the state. The generation of Dean Tucker and Adam Smith. identifying social gain with self-interest, and adhering to the theories of John Locke (who had been fore­ most in his own day in defending profit on the loan of money). increasingly resented political restraints on private enter­ prise. • Thus. though Great Britain was under Congressional ban as an import source and an export destination during the war. ~ere is evidence that hazardous English trade .45 carried on by many American merchants. A lingering taste for English goods. even at exorbitant prices. whetted mercantile zeal. The Virginian. Carter Braxton. wrote in 1779: "They [English manufactures] are so much to be preferred that America now winks at every importation of their goods." S Nathaniel Little-

2 See • COII5MaatioD of the argummt for speculation by Ray Morris. in the AI:-tic Jiard/y. J-. 1914. P. 804 If.. quoting Bagdtot. 3J. E T. 1UJca's. FinI I,Ute YNn til llIe BaU til Eagr-l (Oxford. dI87). p. 50 4 OD TacbF and Locke, cl. E I.ip5oa. EctlfltlWlic History til Ellflr-l, m. 224. 3Z1. 5 QaocecI ia SIIIDDCI', F~. I, 12!). Sumnu adds tb3t the 1etter was CGIISidcrcd dislo,-U 32 BUSINESS ENTERPRISE: REVOLUTIONARY ERA ton Savage of that state drew on the credit of John Norton and Sons of London in 1777 for goods delivered at St. Eus­ tatius. 6 To London went David H. Conyngham during the war, to pay " 8000 guineas for bills drawn by houses in Philadel­ phia.'" One voyage actuaIly made directly from England to Boston was later described by Lord Sheffield, who also stated that there was a tremendous indirect war-time flow of English & goods by way of the West Indies and Nova Scotia.s William Cabot of Salem, Massachusetts, was in England " on business" in December, 1777, it is said.9 The bulk of British goods, how­ ever, came by way of Amsterdam, in which fashion WiIIiam D. Cheever of Boston, who was bitter against the war, re­ ceived shipments.1o Codman and Smith of that town sent a representative to Europe in 1781, and advised George Meade and Company of Philadelphia that he would go " first to HoIld fm thence not impossible to E--d. his plans wiII be of a mercantile nature in which it would give him pleasure to serve you." 11 Jonathan Amory of Boston advised a brother. abroad in 1782, "And the English goods except they be prize goods are prohibited by Congress, yet I think they might be so managed that by Invoice and mixed with HoIland goods, that there would be but little difficulty. And English goods seIl best. . . ." 12

6 Susie M. Ames, "A Typical Virginia Business Man of the Revolution­ ary Era," in 1. Econ. Bus. Hist., III, 416. 7 D. H. Conyngham, "Reminiscences," in Wyoming Hist. Genealog. Soc. Proc., VIII, 206. Perhaps such payments were in part for pre-war debts. 8J. B. H. Sheffield, Obsert'ations on the Commerce of the American States (London, 1784), p, 250 et passim; cf. also David MacPherson, Annab of Commerce, III, 590, 591, 719,720. 9Samuel Curwen, Journal and Letters (London, 18(4), p. 250. 10 Cheever to various English merchants, Jan. IS, Feb. 2, 1779, Sept 29, 1781, in Caleb Davis Papers, 26, 23. 11 Feb. 22, 1781, in Codman and Smith Letter Book. 12 G. E. Meredith, Descendants of Hugh Amory (Londoru, 19(1), p. 231. On the English trade of a Rhode Island merchant, see Commerce of Rhode Islalld, 7 Coil. Mass. Hist. Soc., II, 98. . THE REVOLUTIONARY ECONOMIC FORCES 33 In addition to such illegal adventures, gainful opportunities arose in a variety of unusual ways. Noah Webster declared that a large number of persons participated in an "itinerate commerce" in paper money. Such speculation was possible in 1780, for example, when exchange in Boston was seventy-five currency dollars for one" hard" dollar, against seventy for one in Providence. In May, 1781, Continental money wa!'~ actually exchanged at seventy-five for one in Boston against two hundred and twenty-five in Philade1phia.18 According to an army contractor, depreciation was in part due that month to the" intervention of a Company of Jobbers who have made the exchange of money a matter of commerce." At that very time there were on the road from Philadelphia to Boston .. numbers of men, loaded with the old currency; among the rest a Mr. Timo Palmer who has made three Tours to Phila­ delphia; he started yesterday from Hartford and will put up at Moore's [?] in Boston; he has a quantity which he ob­ tained at the rate of three hundred for one. . . ."" Similar opportunities were available for importers who could juggle goods and currency at different places.u Speculation also offered in bills of exchange with relation to the currency: Jonathan Amory wrote in March, 1781, that since the state legal tender act was repealed, "If I could receive it [paper money for debts] now as Bills of Exchange are low, I could do very well with it." 11 A year later Caleb Davis of Boston attributed fluctuation in bills to the work of "sundry Spec­ ulators." "

13 CI. Albert Balles, Penna., p,.OfJinee and State, II, 40, 41; Comme,.ce 01 Rhode Island, II, 101; William Gouge, Sho,.t Hm. 0/ Pop" Money and Bonking in the U. S. (Phila., 1833), p. 27. It Oliver Phelps to Caleb Davis. May 13. 1781, Davis Papers, loa; cl. also statement of Oliver Wolcott, March, 1;81, in Burnett, Lette,.s, VI, 35: also. Pelatiah Webster, Political Essays, pp. 179. 18S. 15 Ct. Sumner, Finonciet', I, Bg, citing John Adams as authori·ty. 111 Meredith, Amory, p. 225. 17 To John Van der Funk, Amsterdam, Davis Papers, 23. 34 BUSINES~ ENTERPRISE: REVOl-UTIONARY ERA There were other indications of the gainful spirit of the times. "If you have not bought any more Powder I beg you would not as it sells very Dull," wrote aNew Hampshire mer­ chant to a correspondent in 1780.18 John Brown of Providence is said to have been accused by neighbors of holding up work on Continental frigates to give better attention to private ~nterprise.19 A monopolistic agreement was made by several merchants of Philadelphia together with General Arnold in June, 1778, to "do" the inert Quaker City on merchandise supplies.20 Illicit trade was considerable, as we shall see, and contact with British-held ports not infrequent. Jeremiah Wads­ worth of Connecticut, late Commissary General, received prices of goods in the enemy controlled 'New York City in May, 1780, from merchant Nathaniel Shaler, for use of various Hartford business men,21 and Samuel Breck of Boston actually visited Manhattan in the summer of 1781.22 The merchants were not alone, however, in keeping an eye on their own in­ terests in such ways. The Reverend William Gordon, the future American historian, was not averse to getting English goods by way of Amsterdam.28 The participation of Congressman Samuel Chase in flour " cornering" activities, on the approach of the French fleet,26 is but one example of the general desire

18 Edmund Roberts to John Rogers, Nov. 2, 1780, Hudson-Rogers Papers, Box 2. 19" John Brown" in Diet. A mer. Biog.; his brother, Moses, was not in sympathy with the war at ali: ct. Augustine Jones, Moses Brown, p. IS. 20 The agreement is printed in Scharf and Westcott, Hist. of Phila., I, 390n. 21 S·haler to Wadsworth, May 2S. 1780, in Wadsworth Corresp. in the Conn. Hist. Soc., as are all references to Wadsworth Papers unless ooted to the contrary. . 22 Breck to Wadsworth, July 22, 1781, ibid.; Daniel Parker, the U. S. army cootractor, was apparently purchasing goods in New York City, through Mason and Malbine, as early as July, 1781: cf. Parker to Captain Watson, July 17, 1781, ibid. 23 To Gordon, May IS, 1781, de Neufville Letter Book.

24 II Samuel Chase" in Diet. Amer. Biog.; ct. also political s.peech against Chase in Maryland Journal and Baltimore Advertiser, Oct. 7, 1788, accusing THE REVOLUTIONARY ECONOMIC FORCES 35 of the public to profit at the expense of the French forces. Opinion from another quarter was strongly expressed by sev­ eral sailors, when requested to remain in the service of Vir­ ginia in 1777: "Country here or Country there damn my Eyes and limbs but I'll serve them that give the best wages." 21 General Henry Knox expressed the viewpoint of many when he wrote regarding his privateering ventures, "I am exceed-» ingly anxious to effect something in these fluctuating times, which may make us lazy for life." 26 Privateering did indeed encourage this spirit everywhere, as is seen in an advertise­ ment in Wethersfield, Connecticut, in 1778, addressed to "All Gentlemen Volunteers who are desirous of making their for­ tunes in eight weeks ...." Luxurious public tastes were in line with such attitudes and reveal the use of a greater variety of consumers' goods. Jef­ ferson was painfully aware of "our disposition to luxury." If Samuel Hazard wrote in 1780 that, while some were reduced to pitiable straits, "the rich . . . are more luxurious and ex­ travagant than formerly. Boston exceeds even Tyre; for not only are her merchants princes, but even her tavern-keepers are gentlemen." 21 Philadelphia was a gay place in 1779 for a man with means, having" advanced so far in luxury in the third year of our Independency as the old musty Republics of Greece and Rome did in twice as many hundreds." 28 The soldiers remained so poor, Timothy Pickering wrote his wife in 1782, "while the citizens in general of the United States indulge a luxury to which, before the war, they were him of illicit trade activities in 1782 and 1783; c/. also Jeremiah Wadsworth to James Calhon, Feb. 4. 1779. in Wadsworth Papers in New York Hist. Soc. 25 Tyler's QtuJ,.,. Mag., I, ISJ. 26 Francis Drake, He""y Krws, p. 61. 'r1 WritiNgs of/effe"soN, Ford, eeL, IV, 188. 28 Quoted in Me_rial Hist. 0/ Boslo,," III, 171; c/. statement by Jonathan Amory, Dec. 14. 1781, as to extravagant dress in Boston, in Meredith, Amory, Po 229- 29 Quoted in B. Steiner, James JfcHeMY, p. 25. 36 BUSINESS ENTERPRISE: REVOLUTION ARY ERA strangers! "30 Holland gin and French claret became popular drinks. 31 General Greene called it all "the common offspring of sudden riches." Boston, he said, was nothing compared to Philadelphia, where even public dinners gave evidence of dis­ 32 sipation. The « habits of Luxury contracted in the Late War" continued to be lamented in Boston after 1783.33 ... It follows that there must have been considerable business activity to supply the needs of such high civilian living, in addition to army wants. Even the French and Indian War had not so greatly increased foreign trade connections nor so stim­ ulated the domestic exchange economy as the Revolution now did. The need for inter-regional shipments, for example, is illustrated by the fact that not only did Boston continue to send to New York and Chesapeake Bay for flour, but that even Con­ necticut sometimes bought it from Maryland. Rhode Island, also in need of such provisions for, military use, received them from Pennsylvania, Virginia, and elsewhere. 34 In New Jersey, Trenton became a great provisions center for the American forces, shipments of supplies, especially flour, being sent from Pennsylvania and other places. North Carolina beef and pork were necessary for the forces in Virginia,3s while the northern

30 O. Pickering, Timothy Pickering, I, 376. 31 According to Edward Channing, "Commerce During the Revolutionary Epoch," in Mass. Hist. Soc. Proc., XLIV, 375-377. 32 Greene qt10ted in Oberholtzer, Philadelphia, I, 287; see the desc,dptioo of a public dinner by Thompson Westcott, "History of Philadelphia," in Phila. Sunday Dispatch, April 14, 1872; also Writings of Washington, Fitz­ Jl'Itrick, ed., XIII, 4>7. 33 Records Commissioners, Reports of City of Boston, XVIII, 130. 34 Cf. Rhode Island Hist. Soc. Pub., n. s., VIII, 253; New London County Hist. Soc. Papers, I, Part 4, p. 35; Rhode Island Hist. Soc. Call., VI, 224; Col. Recs. State of Rhode Island, VIII, 142; Official Letters of Governors of Va., I, 357. I·t is true that state emba,rgoes Olll foodstuffs eSipecially were sometimes laid, but they were freely violated. Congress resolved on several occasions against such inter-state trade restrictions. It does not follow from the above that business as a whole enjoyed a net gain. See Chapter Ten. 35 Letters of Moore Furman, pp. 5, 19, 55 et passim; Scharf, Baltimore City and County, p. 99n; Tyler's Quart. Mag., I, 147. THE REVOLUTIONARY ECONOMIC FORCES 37 Continental troops relied upon the beef and forage of Massa­ chusetts and Connecticut, and upon the cereals of Pennsylvania and the upper Hudson Valley. In such fashion did the produce of the country move, despite all war obstacles. As for foreign trade, the "commercial declaration of inde­ pendence" of April, 1776, completely broke the navigation laws for the first time and opened American commerce to. the world .• Soon after most colonial import duties were separately ex­ tinguished by the several states; not until 1780 did Pennsyl­ vania, followed by other states, re-impose low import tariffs.s° Meantime, provincial custom house monopolies, such as Anna­ polis held in Maryland and Newport in Rhode Island, were abolished to the advantage of their rapidly growing rivals, Baltimore and Providence. The resulting new trade was largely with northern European countries from which American merchants were no longer warned away by the forbidding finger of Cape Finisterre. Sweden established direct trade relations in 1780, after having " gradually" admitted American ships prior to that date, and also acted as a depot for the new American trade with Russia.81 The French were particularly eager to develop the American market for their manufactures and to secure tobacco in ex­ change, as illustrated by activities of the merchants of Nantes whose American trade boomed until 1778 or 1779.88 Six French commercial houses were established at Baltimore dur­ ing or immediately after the war.88 Though Bordeaux was not

36 Albert A. Giesecke, Americlllt Commef"ciGl Legislation belore I789, pp. I28-J30- 37 Adolph Bensun, Swede" and the America" Rewlutio", pp. 42, 44; on the whole question of American foreign trade, cl. Channing, .. Commerce During the Revolutionary Epoch," loco cit. passim. 38 CI. Gaston Martin, .. Commercial Relations between Nantes and the American Colonies during the WM of Independence," in J. Eco". Bus. Hist., IV, esp. pp. 826, 827; its abrupt decline after J779 from Nantes possibly throws some adverse light on what is said about Bordeaux's trade illl J78J. 39 Griffith, A"Kau 01 Baltimore, p. J02. 38 BUSINES,S ENTERPRISE: REVOLUTIONARY ERA the. leading port for the American trade, ninety-five vessels cleared from there for the States between January, 1777, and March, 1778. French exports were still large in 1781.40 This commerce seemed a road to riches to young John Trumbull; and Michael Hillegas, an office holder who considered himself .. a poor slave to his country," wanted a merchant of Baltimore • to invest for him five hundred or a thousand pounds in a venture to France in 1778,,1 The Franco-American treaty of that year had indeed pre­ pared the way for a new commercial age. Numerous Americans even went to France and set up branches of commercial houses: " ... there are now so many Americans in France that almost every one has their friend to apply to," wrote John Welsh of Boston, who had a brother there in 1782,,2 Indeed, by the end of the war rumor had it that some of these were even in league with French manufacturers to keep up prices of exports to America.·8 Jonathan Williams, Jr., of Boston, Franklin's great-nephew, settled at Nantes to handle public goods as well as private ships like the Robin Hood which Caleb Davis, W. D. Cheever and other Boston merchants sent out in 1781." One of the Nesbitts of Philadelphia settled at Nantes in 1777 also, representing Robert Morris; there, too, was the strenuous Elkanah Watson, late an employee of the Browns of Provi­ dence. Watson formed a firm with a Frenchman and kept his American acquaintances supplied with printed lists ·of .. Mer­ chandises at Nantes, for and from America."·5 At L'Orient 40 John Bondfield to Robert Morris, Bordeaux, March, 1778, in Morris Papers in New York PubHc Library; c/. statement by Morris, Dec. 5,1781, in Sparks, ed., Diplomatic Correspondence 0/ the American Rroolution, XII, 62; Daniel Parker to Wadsworth, June 4, 1781, Wadsworth Corresp., mentions 14 ships from France bound for Boston. 41 Autobiography 0/ John Trumbull, !p. 80; Penno. Mag. Hist. Biog., XXIX, 233, 235. 42 To Jacob Welsh, Nov. I, 1782, John Welsh Letter Book. 43 To Jacob Welsh, April 23, 1783, ibid. 44 Cheever to Williams, Aug. 29, 1781, Caleb Davis Papers, 23. 45 One of these is in ibid., loa, under March 2, 1781. THE REVOLUTIONARY ECONOMIC FORCES 39 were a Mr. Bromfield and William Gibbs from Boston, the latter a friend of Andrew Craigie and Watson, and also Joseph Irwin of Philadelphia, representing Blair McClenachan. Other Americans-Greenleaf of Newburyport, Codman, Welsh, and Austin of Boston, Hopkins of Hartford, Ray of Albany, Conyngham of Philadelphia-made hurried business trips to France. Some of them also found opportunities in Spain, as did Richard Harrison of Alexandria and John Jones of Bos~ ton, both of whom settled at Cadiz; but the Spanish-American commerce which such merchants as the Tracys of Newbury­ port and Aaron Lopez of Rhode Island carried on with Joseph Gardoqui and Sons of Bilbao, was not new like most of the French trade. The new Revolutionary commerce which Spain did offer to Americans in 1780 was with her colonies in the West Indies, a lucrative market for lumber and provisions.41 Dutch firms similarly developed many American interests. Like the French and Spanish, they invested in American pri­ vateers out of Baltimore.61 American trade directly with Hol­ land, and with the Dutch West Indies, grew rapidly. In 1779 Nicholas Brown of Providence sent" Loan Office Certificates .. to be invested in goods at Amsterdam:· and Griffin Greene of Newport went to Holland the following year with a cargo of tobacco and rice." The Boston merchants Davis and Cheever had financial relations with London through John Hodshon of Amsterdam, and imported goods from the latter. 50 William Bingham of Philadelphia established a partner in Holland. A Jewish firm of Amsterdam shipped goods in 1781 to Aaron Lopez of Rhode Island and Isaac Moses of Philadelphia, while

46 MacPherson, A"tlQ/s 01 Com"."C~, III, 719 n. It was said that Ameri­ cans could lose half their ships in this trade and Min profit largely. 47 E. E. Reid in Clayton Halt, ed., Hist. of Ballimore, I, 50S. 48 William Weeden, Early Rlwd~ IsloM, Po 347; similarly, John Welsh of Boston sent Loan Office II bills II to Cadiz. 49WiUiam Littlefield to Wadsworth, Aug. 28, 17&, Wadsworth Corresp. 5OW. D. Cheever to James Treedthick and John HocIShon, Feb. 19, 1779, Feb. 29, 17&, Ocl s. 1i'Sz, in Caleb Davis Papers, 26. 40 BUSINESS ENTERPRISE: REVOLUTIONARY ERA the Crommelins of Amsterdam carried on American trade throughout the war with various patriotic merchants/1 and doubtless with their loyalist relatives in New York. Perhaps the most active Dutch house in the American commerce was John de Neufville and Son of Amsterdam. Their eagerness to participate in itis revealed in their letter books: in the latter half of the war they solicited the attention of every American merchant of parts. For example, they sent sixteen ships to the States in 1780 and 1781, engaging particularly with Alexandria merchants in the tobacco trade and also selling goods to the Continental army clothiers, Otis and Henly of Boston. As early as 1778 the de Neufvilles had been keenly interested in a pro­ posed commercial treaty with the United States. 52 It is not surprising that in May, 1783, twenty-one out of fifty ships in the port of Philadelphia were Dutch; 58 nor that many vessels continued to be fitted out in Holland for the States after that date; nor that American houses, such as LeRoy and Bayard of New York and Bingham and Gilmo~ of Philadelphia, enjoyed the backing of Dutch capital after the war; nor that Dutchmen continued to invest in American se­ curities and in land, canal, and bank schemes in the following decade. Revolutionary developments prepared the way for all these things. Though the lending of money to private persons was sadly discouraged by the upheaval, war borrowing by Congress and

51 Commerce of Rhode Island, II, 152 et passim. 52 de NeufvilIe Letter Book, p. J2 et passim; cf. also Mass. Hist. Soc. Proc., XLIV, 372; also Friedlick Edler, .. Dutch Republic and American Revolution," Johns Hopkins Studies, XXIX, pp. 80, 81, though this may have been a different John de NeufvilIe. 53 A. H. Kohlmeier, "Commerce Between the United States and the Netherlands, 1783-1789," in Studies Inscribed to J. A. Woodburn, p. 12, quoting a contemporary news·paper. P. J. van Winter, Het aandeel "IIan den Amsterdamischen handel Gall den opbOfl,w van het Amerikaansche gemeenebest (The Hague, 1927), I, is said to deal exhaustively w~th this American-Dutch trade. There were also many ships fitting out for America in 1783 from Ghe!lJ1:, and an Antwerp Society intended to found a branch house in Phila. THE REVOLUTIONARY ECONOMIC FORCES 41 the states was a new development with far-reaching conse­ quences: financial capitalism is said to have originated largely in the financial necessities of modem states. M The bulk of the domestic loans was represented by the Loan Office certificates, estimated in principal at over eleven million dollars, an enor­ mous sum for those times. This seems to indicate immense borrowing by Congress, with certain important qualifications. These certificates were also used for the payment of supplies received from merchants." Moreover, what loans were made were not commonly in specie: the Anti-Federalists probably correctly declared in 1790 that little or no domestic" hard" money had been loaned to Congress. ,& The certificates were more usually secured in exchange for Congressional bills of credit (Continental currency), or for goods priced in that cur­ rency!' They were always more desirable than bills of credit because they carried a promise of interest, amounting to six per cent after February, 1777, to be paid in bills of exchange on the commissioners to France. The acquisition of certificates, in short, was good policy for getting rid of Continental cur­ rency. After 1780 holders of certificates also benefited by Con-

M Henry see, Modem Capitalism (New York, 1926), pp. 28, 33. M C/. Henry Laure"" statement in Burnett, Letters, III, 248. There is mention of Loan Office certificates being sent to army supply purchasers in the Chaloner and White Letter Books, and in the Nightingale-J enckes Papet"s. The Penna. Loan Office books in the Treasury Dept. show that many mer­ chants received enormous sums of them, undoubtedly in exchange for sup­ plies. C/. also Anti-Federalist charges in 1790 in C. A. Beard, Economic OrigiJII 0/ Jeffet"lonian Democracy, p. 139. We have noted above that mer­ chants sent them abroad to pay for goods. The merchants as a class prob­ ably did not retain them at this time; indeed, there is a memorandum of .. Remarks on raising supplies," 1779, in the Robert Morris Papers in the Library of Congress, in which Morris argues thai Loan Office certificates should be taxed; that.many persons have whole estates in them, receiving 6% interest, on which lID taxes are laid; that the burden of taxation accord­ ingly falls on merchants, farmers, and manufacturers. 56 Beard, Jefferlonian D,mocracy, p. 140. 57 Charles Bullock, .. Finances of the United States, 1775-1789," Bur. Univ. Wise. Hist. Ser., I, Po 142. 42 BUSINESS ENTERPRISE: REVOLUTIONARY ERA gress reckoning their specie value on the basis of a table of currency depreciation which was behind real depreciation in point of time: that is, the market value of the bills of credit at the time their possessor might " loan" them for the certifi­ cates, was invariably less than the value which the ruling of 1780 fixed upon them. 58 Nevertheless, even merchants selling goods to Congress in this way were creditors; and so were any persons who received the certificates from the merchants. For the securities immedi­ ately took on a negotiable quality which, Elias Boudinot said, was the original idea. 59 They thus became instruments of " pure" capital (though not completely realized as such until the days of Hamilton's funding measures) and sometimes assumed a credit character for business transactions at once.60 Other evidences of Congressional debt were received en­ tirely for supplies: such were various commissaries' notes,

58 Settled April 18, and June 28, li80: " ... this table does not show the full amount of the depreciation; and consequently the holders of the loan certificates lost nothing by the action of Congress in repudiating the paper money." Ibid., p. 143. Ct. Pelatiah Webster's suggestions for a scale of depre­ ciation for the certificates in 1780, in his Political Essays, p. 94. and also his table of currency depreciation according to Phila. merchants, ibid., pp. 501-502, which does not jibe well with the official table. In May, 1778, Henry Laurens wrote of rumors of a .. gainful infamous traffic •.. by means of loan office Certificates whioh have been ... passed for ready Money; but the prices of articles produced by them were enhanced 25 to 30 Pro Ct. to the emolument of the contracting parties •... " (Burnett, Letters, III, 248.) In 1782, John Wi~herspoon admitted that Loan Office certificateS always had greater value than other kinds of government paper, but he denied that many had gained by paying for them in depreciated money "because of Tender laws value." (Ibid., VI, 416.) Bullock is undoubtedly correct in his summary, though the a~ount of gain thereby cannot be settled here: 59 Beard, Jeffersonian Democracy, p. 144. A. Bolles, Financial Hist. ot the U. S., I, 260, 261, says that thls was not the original illitentiolll of Congress, but gives 00 authority for his statement. 60 Margaret M. Myers, New York Money Market, I, II, denies this; but there is some evidence to 'the contrary: ct. the use of the certificates' in commerce in 1778 in the Huntington Papers, Conn. Hist. Soc. Coli. XX, 130, and their use in foreig>n trade as cited above. THE JlEVOLUTIONARY ECONOMIC FORCES 43 treasurers' promises to pay, etc. These, too, eventually entered the credit system of the country, though also at depreciated values. Goods were offered for sale in New Haven in 1784 for" banknotes, Morris' notes, Mr. Hillegas' notes, Pickering'S certificates, soldiers' notes, state money, lumber, grain, oxen" and other things. "R. Morris & Mr. Hillegas' notes, new emission money, all sorts of public securities" would be taken by Albany traders.e1 Soldiers' pay certificates of some states were similarly accepted in many places, as in New York after 1781, when they could be exchanged for land grants. Wealthy investors like John Delafield the broker and Nicholas Low the merchant then secured them for this purpose.1S In fact, all evidences of Congressional debt, and probably most state se­ curities, eventually turned into business credit paper or invest­ ment securities. The funds of societies and individuals became tied up in them. The influence such transactions had in con­ solidating economic interests and in acquainting the public with new investment ideas, can never be ascertained. That the cumulative effects of it all were great cannot be doubted. Borrowing in foreign countries a~o stimulated private busi­ ness since it introduced much specie and the first large amount of non-English capital into America. From 1781 to the end of 1783 over five hundred thousand dollars in hard money arrived through loans," in addition to that spent by the English and French forces and to that secured from the new Spanish Havana trade. War loans more frequently assumed the nature of commercial credits. Those by Dutch capitalists, for example,

61 New Haven Col. Hist. Soc. Pater-I, IV, 129; Howel1 and Tenny, Hin. of Albtmy Co ..flly, p. 620; cf. also statement of George Minot, Insurrection in Ma.rl., p. 21, that Federal and State debt notes were becoming substitutes for cash. 62 Docs. 9113. 14383. 4484. 32597, Adjutant General's Office: Division of Old Records (hereafter referred to as Div. of Old Rccs.). 63 Bullock, ot. cit., p. 147; withdrawals of specie, early in the war, were probably heavy, but figures 011 them are sheer guesswork. 44 BUSINESS, ENTERPRISE: REVOLUTIONARY ERA paralleled the new Holland-American trade.84 This extension of commercial credits by both French and Dutch, through loans or commercial practice, made possible for Americans a partial escape from English commercial domination. Moreover, loans at the end of the war by such Dutch houses as the Willinks, Staphorsts, and De la Lande and Fynje led them to other American speculations in the post-war years. They came to believe in !he economic future of America, of which Robert Morris painted a roseate picture: "Our Establishments," he once wrote Willink and Staphorst, "have not yet taken that Form and obtained that Solidarity which public Credit requires but there is a Basis of national Wealth which like a new and rich Mine must yield profusely to the first well directed Efforts of taxation. Besides which we have an extent of uncultivated territory which alone form one respectable Security to our Creditors." 85 In October, 1782, such Dutch financiers pur­ chased 50,000 dollars worth of stock in the Bank of North America, sold them by Morris for the United States 88_an, excellent example of the close connection between private in­ terests and public finance. Above all, the war encouraged the business group idea since it gave cooperative experience to numerous individuals. Priva­ ateering ventures were financed as in earlier wars by an elab­ orate share system involving many persons in single under­ takings. It is said that in Beverly, Massachusetts, " Shares in vessels were reckoned in eights and multiples of ,that fraction and, in absence of other kin.ds of investment, the -inhabitants of the seaport towns bought and sold them as stocks are bought and sold today. Men used their shares in ship~. as collateral; bought and sold futures; hedged against possible losses; sold

64 Alexander Gillon of Charleston, S. C., is an example of persons appreciat­ ing the connection between anticipated Dutch loans and trade: cf. South Carolina Hist. Genealog. Mag., X, 3, 4. 65 Financier's Letter Books, E, p. 446; on interests of Dutch capitalis,ts in America after 1780, cf. Paul D. Evans, Holland Land Company, p. 3 ff. 66 Lawrence Lewis, Bank of North America, p. 4& THE REVOLUTIONARY ECONOMIC FORCES 45 short and played the game for all it was worth.... Under these conditions the control of vessels passed rapidly from hand to hand." 8T Such activities were not peculiar to that place. A rum distiller of Ipswich, Massachusetts, bought up many shares, usually from sailors.a8 War risk was modified for most trading ventures by a similar cooperative spreading of investments. The merchant Lopez family held a one-sixty­ fourth interest in a West Indies voyage in 1780; eo a Hartford merchant actually bought a one-ninety-sixth interest in a ship in I778.TO Another group activity encouraged by the war was in marine underwriting. High insurance rates, ranging from twenty to fifty per cent on ship and cargo, afforded tempting profits which had the same results in Revolutionary America as in England "--of enlarging and standardizing marine insurance practice. Earlier wars had illustrated the tendency of high rates to increase greatly the number 6f persons cooperating to under­ write single policies.72 During the Revolution two new insur­ ance companies were opened in Charleston, South Carolina, in 1776; the first marine insurance company of Newburyport, Massachusetts (Tristram Dalton, secretary), was established that same year; in 1782 James Jeffrey opened an office in Salem; two new offices appeared in New York City; Barnabas Deane established an office in Wethersfield, Connecticut, in 1777, possibly because Connecticut shippers seem to have had

67 O. T. Howe, "Beverly Privateeers," Col. Soc. Mass. Pub., XXIV, p. 421; for examples, c/. Curwen, Jounwl and Letters, p. 257, Ralph Paine, Ships and Sailor, 0/ Old Salem, p. 64 If.; Stewart and Jones Accounts, Feb. 18, 1781, evince such practices in New York City. 68 Ipswich Hist. Soc. Pub., XXI, 10. 69 Commeru of Rhode Island, 11,93. 70 Wadsworth Cash Book, 177f>.I779. under Jan. IS, 1778. 71 C/. W. D. Winter, Marine Insurance (1929 ed.), pp. 14-16. In 1m, insurance men at Charleston, S. C., were said to be making big profits: Deane Paper" Conn. Hist. Soc. Coli., XXIII, 78. 72 A Boston Ship Insurance Book, 1747-1756. in the Essex Institute, is an excellent illustration of such developments during an earlier war. 46 BUSINESS, ENTERPRISE: REVOLUTIONARY ERA to rely upon Philadelphia for insurance at the beginning of the war; John Hurd organized a most successful company in Boston in these years. And older insurance groups continued to flourish along side of the newer in all of the leading seaports.78 Army provisioning also tended to create private business associations of larger size and greater complexity than those existing in colonial days. This was especially the case after 1781 under the contract system of Morris, and British and French contracts offered excellent opportunities of which Americans were ever aware. Eliphalet Dyer wrote from Phila­ delphia in December, 1775: "Indeed, they mean to engross everything if possible at this place and are Constantly Intrig­ uing with one or another of the Delegates for places, Pensions, Employments, Contracts etc."" Wherever an army was, there soon congregated a host of private traders. II Merchants as far Eastwardly as Boston have brought goods to Yorktown since the capitulation of Cornwallis," a correspondent informed Bernard Gratz in late 178I.TD Loyalist merchants similarly followed the British army to Yorktown and elsewhere. Cooperative discipline and the national point of view were inherent in all army organization. Even the aides-de-camp of Washington's military family formed a significant group when one considers how many persons of post-war business impor­ tance were members: Stephen Moylan of the Philadelphia trading brothers; John Fitzgerald, an Alexandria merchant and future bank organizer; Alexander Hamilton; James

73 David Ramsay, Hist. 01 South Carolina (Charleston; 1809), II, 236; Esse" Instit. Coil., XXV, 17; Colonial Records New York Stat' Chamber 01 Commtrce, p. 346; Mary K. Talcott, Hartlord, p. 533; HUlltiligtOlf Paper" p. 28z. Alexander Dorsey of Baltimore possibly only establi~ his office during the war. Thomas Brereton of Baltimore reswned his insurance busi­ ness in 1781. John Jenckes in Providence moved into a regular business office in 1782. (Gillingham, Marin, llisurance ilf Phila., p. 107; Rhode I,lalld Hist. Tract" no. 5, p. 207n.). 74 Burnett, Leller" I, 279. 75 W. V. Byars, ed., B. and M. Grat., Mlrchallts ill Phila., p. 207. THE aEVOLUTIOXAar ECOX01UC FoaCES 47 lIcHenry of the mercantile family of BaJrilJV)re; Richard VaricIc, futun: Ja...,-er for' business interests in New York; Benjamin WaD..-er. a New Yorlt broker in later years; Tench Til.,ofunan. a post-1raI' partner of Robert Morris.. Still other persons ..-ho were to bemme prominent in the business organiZ3tjoos of the new nation were employW in the army mmmissariat. Such were the Con..<>ressional pun:ba.s­ ing and prize ~omt in the West Indies. William Binaobam. and SIfTC1"3l of the host of commercial ~"l!Ilts acting for Con­ gress abroad. DOtabIy Jonathan \rilliams of Boston and the Xesbitts of Phi1adeIphia. Continental prize and porchasing ~vmts at home including such outstanding merchants as Daniel Tillinghast in Rhode Island. William Lox at Balrimon; and John I..a.n..~ at POltsmout:h, New Hampshire..IS E1'eIl IJV)re important as a great post-1raI' capitalist was Jeremiah Wadsworth of Coonccticut, the Commissary General of the Continental folttS in 1j78 and 1779. among whose deputies ..ere maDJ f1ltm'e ~"l!Ilts of big business. Deputy Quarter­ master Gencnls included the enterprising Nehemiah Hubbard of Coonccticut, Henry Hollingsworth of llaIy1and. and Moore Furman of New Jc:rsey. all ~<>er "participants in post-1raI' actffities.. To these should be added the names of those por­ TeyOr5 of miscellaneous supplies ..ho also became active in the new nation's basiness-such as OIin:r Wolcott. Jr.. of Coonccticut, the Lo~ of New Jc:rsey. and Robert Lettis Hooper of Permsylnnia. lbny of them ..ere merchants. or had mercantile relatitts and frienck. AU were learning the importance of natiooal business organization and cooperation. As to the dIccts of these or other activities upon private fo~ the case frequently will be f01Dld quite clear. Indeed. our story might 1rdl be written in biographical form. discuss­ ing the careers of but a handful of the IJV)te fortunate. includ­ ing not traders ~ but also SUCttSSfuI privateer owners. army

':I.o\IQ G. \\"~ • CoarinrntaJ ~ ill A-rica, r;;6-rm: ia A-nr-" \"I, ILM fr.; o",....l..nIns _/ ,. JI...w B..-i, I. ~ d ".m... AIl tbeIc pcnaas aft ..". "'"' ia bII:r c:II;apkn. 48 BUSINESS ENTERPRISE: REVOLUTIONARY ERA contractors, millers, prize agents, lawyers, and speculators in confiscated loyalist estates. Such figures will appear in the motley throng of our review, replacing older persons who were elbowed out of the spotlight of wealth and power, for the names of such newcomers were frequently those of leaders in the future business undertakings in the northern states. With such points in mind regarding the business spirit and oppor­ tunities of the times, we can now consider in greater detail the changing economy, from both regional and personal angles. CHAPTER III MASSACHUSETTS AND RHODE ISLAND

THE evacuation of Boston by the British in 1776 resulted in the alienation of a minority of the local merchants as loyal­ ists, many long representative of the most important economic and social groups. Those remaining, however, were not neces­ sarily without respectable antecedents. Though in the eyes of Thomas Hutchinson even John Hancock and James Bowdoin were from relatively newly risen families/ certain Whig mer­ chants of Boston already headed wealthy alliances in the late colonial period, such as had been built up around the Phillipses and Wendells. In the smaller towns of northern Massachusetts also, important commercial groups had been established through colonial marriages such as those made by the Tracys of New­ buryport and the Lees of Marblehead To the war-time com­ mercial opportunities of such groups and to the activities of other persons more recently prominent we now tum our atten­ tion. Massachusetts was fortunate in enjoying a war-time com­ merce from which her rival, New York, was largely excluded. Alexander Hamilton wrote, in 1781: "Massachusetts is in a different situation from any other [state]. Its position has made it impossible for the enemy to intercept its trade; while that of all the others has been greatly injured or totally ob­ structed It has become, in consequence, the mart of the States northward of Pennsylvania; and its commerce has enlarged itself much beyond its former limits." a He might have added that illicit trade with Nova Scotia was carried on under a variety of guises, occasionally winked at by the authorities; that the State Council often gave permits for vessels to go to

I Thomas HutchiDsoa, Hist. 0/ MIJUtlCMueifs-B/J1 (Loadoa, 1828), III. 29J" 2W, 2gI1. 2 WIWb, Federal eeL, III,3SJ. 49 50 BUSINES$ ENTERPRISE: REVOLUTIONARY ERA neutral nations when embargoes forbade such trade directly.8 There was also a gainful spirit marking the activities of many persons there: an agent in Boston on clothing business for the Congress in January, 1777, wrote of " the many Dificulties we have mett with in this Business from People whose station in life ought to make them above the Art & Chicanery going forward; the grasping disposition· of those People to seize every Opportunity in their Power to increase their private Interest, & the Duplicity daily carried on makes this Business exceedingly disagreeable." , The commercial opportunities of 1776 are evident in the statement by Elias Hasket Derby of Salem, that one hundred per cent profits were made on importations of cocoa, sugar, and powder, and one hundred and fifty per cent "more than common" on linens, cottons, and paper. Though the Derbys were owners of many successful privateers, Richard Derby found more profit in trade than in privateering as the war progressed,s this, however, being a distinction between activi;­ ties which were in fact closely related. Such early opportunities may not have been open to Boston merchants because of the British occupation,6 and the year after was doubtless a time of confused recovery there, but goods were soon available from privateering voyages and the demand for many commodities was accelerated by Continental army needs. One of the latter was clothing which Boston imported principally from France

3 Ct. o. T. Howe, in Col. Soc. Mass. Pub., XXIV, 362, 364,375. 4 Abraham Livingston to Robert Morris, Jan. 23, 1777, Morris Corresp .• in Library of Congress. ct. also the complaint in the Boston Gazette, April 6, 1778, that" the thirst after gain is grown so insatiable." Quoted by R. V. Harlow, "Economic Conditions in Massachusetts during the American Revolution," in Col. Soc.· Mass. Pub., XX, 176. 5 R. E. Pe3lbody, Merchant Venturers 0/ Old Salem, pp. 40, 41. 6 However, Curson and Seton of New York wrote, May 10, 1775, quoting a London correspondent,'" However extraordinary it may appear, yet we find there is now shi.pping from this place [London] for Bosto!ll nearly as much goOds as ever for the Merchants there •.. 0 Worthy Boston." Misc. MS, "Alsop," in New York Hist. Soc. MASSACHUSETTS AND RHODE ISLAND 51 and Spain. In July, 1778, for example, seven vessels had re­ cently arrived with this article,' which fact also indicates the resumption of direct importations generally. In April, 1778, trade was at a "low ebb" in Boston, but now because of a "want of money" and the caution of pur­ chasers 8 rather than from a lack of goods. In February, 1779, prices of West India goods were actually falling, doubtless because of a surplus, and in March there were "Great Quan­ tityes of Melasses at Markett and more Dayly droping in." II­

There was a large influx of European goods also by I 779 p Serious attention was given by the Boston town meeting in. August of that year to control of prices of importations, "so various in their kinds and qualities." 10 Jonathan Amory began to import all kinds of things from Europe in I779-ribbons, knives, window glass, and Iinens.ll Word came to Jeremiah. Wadsworth in September, 1780, that Boston had plenty of cloth j that three or four vessels had arrived within a week: and that more were expected daily. If Boston could not supply­ what one needed, commodities were available at Salem, Beverly,. or Newburyport from prize captures.12 Goods must have been: more than plentiful by March, 1780, when John Eliot wrote that return cargoes were worth less than shipments from: Boston j yet sales prices remained so high above costs that the. importing business continued to be attractive.18

7 Doc. 22714. Div. of Old Recs. 8 Henry Livingston to .. Father," April 3, 1778, Redmond Coli., in New­ York Public Library. Under March 16, 1778, in Boston Records Conunis­ lioners, Reportl, XXVI, 10, .. The great Decline of Trade" is mellltioned. 9 Hunli"f/Ion Paperl, pp. 116, 129. 10 Boston Reportl, XXVI, 78. 11 Meredith, A_y, p. 21!)- 12 From M. Merrill, Sept. 14. 1;80, from S. Broome, Aug. 7, 1780, Wads­ worth Corresp. 13 Eliot cited in Sumner, Financier, I, 84; Codman and Smith wrote Moses Michael Hays, Oct. 31, 1780, that prices in Boston were three· times. sterling costs. Codman-Smith Letter Book. . 52 BUSINESS ENTERPRISE: REVOLUTIONARY ERA In December, 1780, Amory set up two relatives in trade, and they did very well. He began to remit money abroad for his brother to save or invest in goods; he sent 100,000 livres in December, writing that trade continued better because regu­ latory price acts had been abandoned and gold and silver could be demanded for goods.u The presence of the French fleet and army at that time made available the bills of exchange necessary for such remittances and, increased the amount of hard money in Massachusetts, for merchants had been supply­ ing the French fleet, securing bills or gold in payment, and French commissaries were going through the state on purchas­ ing tours.18 In August, 1780, English goods, wines, and cur­ rants were advertised in a Boston newspaper, in exchange for

II Hard or paper money, French, Spanish, or Dutch bills of exchange." 11 There continued to be an abundance of goods in Boston in the last years of the war despite the falling off of prize captures. Not only did English manufactures seep in, but merchant John Welsh even wrote abroad in July, 1782, that, since Americans preferred British goods which were forbidden importation,

French textiles could be II pack'd & marked the same as tho' manufactur'd in England to as great deception as the English formerly imitated the French for Quebec markett. •.." If The result of all this feverish activity along with earlier priva-

14, Meredith, ..411101'3'. pp. U3, 224- 15 ct. R. V. Harlow, in Col. Soc. Mass. Pub., XX, 184, and following remark. by S. E. Morison j on Breck and Halsey, c/. below j on Barrell. Ellen Bulfinch, CllGrlts BHl/illch, p. 41, and also below. 16 Quoted in Mtmort'aJ lIist. BoslolI, IV, 1917. 17 To Jacob Welsh, July 2, 17/b, John Welsh Letter Book j c/. Boston R'/,orI3, XXVI, 214. on importations in 1781. Increasi~1Ig importations even­ tually meant decreasing profits, II prices fell. ,W. Donmson wrote Samuel Nightingale of Providence, from Boston, Jan. II, 1762, of fa'lIing prices j how II vessels of the new Construction have fallen amazin.gly" j how under­ writers were after money "like wolves"; but a Dutchman, Jan Van der Werf, complained to him in Oct., 1783, that he did not make the 20% profits in Providence that he did on goods sold in Boston and Philadelphia. Nightingale­ JelllCkea Papers. MASSACHUSETTS AND RHODE ISLAND 53 tttring successes was the extensive use of luxuries in the mari­ time towns of Massachusetts during the war years. It had reached a climax by January, 1783, when 'Velsh ordered an investment in children's toys. Massachusetts also re-shipped foreign items to other states, receiving foodstuffs largely in payment. Most important of these was flour, which frequently came from the Chesapeake region.'8 It probably was this article which Henry Livingston, who moved from the Hudson Valley and settled in Boston, could offer in exchange for the imported textiles on which in 1779 he expected to make a .. profitt of £15000 L.M."'· Upper New York also furnished Boston at this time with considerable grain and flour 20 which could be used for such inter-regional payments. The state was stimulated in other ways by war conditions. Some manufactures, especially milling and distilling, were en­ couraged. Merchant Caleb Davis developed a chocolate mill in 1778. U Early in the war clothing was made for the army in almost every town," and Samuel Phillips of Andover must have been but one of the many who manufactured gunpowder. Jonathan Winship, Jr., later an important merchant, founded the bed-slaughtering business of Brighton in 1775, subse­ quently supplying American troops and the French fleet." The inland town of Springfield participated in a great flow of trade and in local manufactures, serving especially as a mili­ tary supply depot, as a lumber and beef center, and as a cart-

18 An instance is found in Wadsworth to Jacob CuYler, May 7, 1779. Wad9worth Papers in New York Hist. Soc. 19 Henry Livingston to • Father," May IZ, 1779. Redmond Con. 20 C/. Bostoo R,IOr's, XXVI, 139; c/. also Olapter Five.. 21 Receipt under Aug. I, 1778, Davis Papers, 9b; OIl the stimulus to manu­ facturing, c/. FGfIIilitw lAtINs 0/ Jolt.. tntd Abigail Adams, p. 313. 22 Statanmt of BcrIjamio Ollm:b, in Essex Instil. Coli., XLVII, 2J4. 23 S. E. Morison, Mariti.., Hist. Mtus., P. S9D.; Winship was of a famous mercantile family, boweftr. .54 BUSINESS ENTERPRISE: REVOLUTIONARY ERA ridge-making town.24 Farmers apparently prospered from high prices for food stuffs until 1780, and in that year were even said to have drained all the ready money out of Boston.25 That farmers considered their opportunities inferior to those . of the traders, h9wever, is evident from a statement of Jere­ miah Wadsworth in 1778: "The purchasers of flower from <' the Eastward are, many of them, those who have amassed much wealth by a disgraceful inland trade; and the inhabi­ tants of the New England states in general have neglected the cultivation of wheat and turned their attention to trade and never will return to cultivation till necessity obliges them." 28 The general situation was probably not too incorrectly summed up a year later by Jonathan Amory when he wrote, "Tho our money has depreciated yet the internal strength of the Country is greater than when the war first began as there is hardly a Town but what has got more rateable Polls in it than at the first of the War, but tho' many individuals suffer yet ~e farmer & the bulk of the people get by the war. . . ." 21 Bearing in mind this general condition of affairs, let us survey the business experiences of certain individuals. In Massachusetts, as elsewhere, government needs in clothing and foodstuffs gave employment to numerous persons. For ex­ ample, Messrs. Otis and Andrews of Boston received the ap­ pointment of Collector of Clothing for the Continental forces in November, 1777, from which office the" emoluments were considerable," according to Otis himself. (They may have re­ ceived the appointment because Congress, a year before, had been indignant over the enormous prices and cash demands of

24 Henry Booth, .. S·pringfield during the Revolution," Conn. Valley Hist. Soc. Papers, II, 301 ff. 25 Harlow, in Col. Soc. Mass. PIth., XX, 176-182; Sumner, Financier, I, 84. quoting a contemporary. 26 Public Papers of George Clinton, IV, 303. 27 Meredith, Amory, p. 219. MASSACHUSETTS AND RHODE ISLAND 55

28 ,certain Massachusetts clothing contractors. ) Otis had been on a state committee to buy clothing for the army in 1776. After 1779 he was associated in the Continental business with one Henly.28 Otis, too, had trouble with contractors' prices which continued to provoke Congressional inquiry, as in 1778 with a Mr. Jackson, "a principle Contractor in the Business"

who II owns his asking me 2000 per Cent, and justifies the price he sold the goods for, at the same time avers nobody can say that he sold for 1800 or 2000 per Ct. for he did not sell by advance." 80 Otis and associates handled enormous sums of money and shipped goods all over the country. From De­ cember, 1777, to July, 1778, Otis and Andrews furnished the army 18,000 suits of clothing, in addition to hats, blankets, and other things. They sent shoes and clothing to the army at Providence in 1779; ninety-eight hogsheads of clothing to Springfield in November, 1780; forty" trains" of the same to Newburgh the same month; thirty-one wagon loads to Philadelphia a year later.81 Other goods were handled by them on occasion: Jeremiah Wadsworth addressed "Oatis & Henly" on March IS, 1779, concerning General Greene's request that they send vessels for 6000 casks of rum, .. and if one half goes for the freight of the others the Continent must purchase the other half if wanted.... " 82 Merchant Thomas Cushing was Commissary General of Massachusetts for five years as well as an agent for the Con­ gressional Marine Committee, in which latter capacity he

28 S. E. Morison, HII"ison G,.lIlI Olis, I, 21; Sumner, Fiooncie,., I, 14J. Otis' partner may have been Benjamin Andrews, brother-in-law of Samuel Breck. 29 He may have been of the Henly family whic:h furnished merchant Thomas Russell with a wife. 30 Burnett, Leite,." III, 9B n.; see also, Laurens to Otis, May IJ, 1778, on p. 2JJ, ibid., in regard to payment trOllbles. 31 Morison, Olis, I, 21; Gates Papers, Box XI, DO. 298, XII, no. 228, in New York Hisl Soc.; docs. 25278, 2641J, Div. of Old Recs.; Hugh Hughes Letter Books, U Letten Promiscuous," under Nov. 2, 1781. 32Wadsworth Papers, in New York Hist. Soc. 56 BUSINESS ENTERPRISE: REVOLUTIONARY ERA handled naval funds and superintended the building of a frig­ ate in 1777. 113 Provisions for state troops, however, were more largely the concern of young Oliver Phelps, formerly a trader of Granville, Massachusetts, who was appointed a state super­ intendent of army purchases in 1777, a title apparently re­ tained to the end" of the war.8~ As partner in the private concern of Phelps and Champion he also became a great con­ tractor for beef after 1780 with Wadsworth and Carter, the French agents. Caleb Davis of Boston was even more deeply involved in various kinds of public business, especially in his capacity as state agent for prize vessels, at least after 1781. In 1777 he had also received sums for warrants on the state for supplies furnished the army and for timber used in build­ ing a state vessel, and between November, 1776, and April, 1777, he sent over two thousand pounds worth of goods to the Northern Continental army on account of Massachusetts. Still acting for the state, Davis paid Thomas Russell for rum in August, 1778; twice that year he made similar payments to Samuel Breck for small amounts of sugar.85 After 1781 Davis was also the Boston agent for the Continental Board of War, for whom he settled accounts with such persons as William Bingham and John Holker of Philadelphia. His business acquaintanceship grew accordingly, like that of young Elbridge Gerry, the merchant and politician of Marblehead who did considerable importing for the public in addition to carrying on private trade successfully; 86 or like that of mer­ chant Nathaniel Appleton, the Continental Loan Officer for Massachusetts. Still another Bostonian whose public services provided ex­ cellent training for post-war activities was Andrew Craigie,

Apothecary General of the ,Continental ,forces. With William 33 Lemuel Cushing, CusMng Family (Montreal, 1877), pp. 35, 36 j Out- Letters of tile Marine Committee, I, 10, 39, 169 n. 34 Oliver S. Phelps, Phelps Family in America (Pittsfield, 1899), II, 1321. 35 Mass. Hist. Soc. Proc., LIV, 217 j Davis Papers, gb, 20, passim. 36" Elbridge Gerry," in Diet. Amer. Biog. MASSACHUSETTS AND RHODE ISLAND 57 Brown, one of his army assistants, Craigie made several un­ sucessful attempts during the war to establish a private med­ ical supply house!' He successfully did so soon after the War in New York City, together with another former assistant, Francis Wainwright. Craigie's later speculative career, how­ ever, was largely the result of his friendship with Daniel Parker, the merchant and army contractor of Watertown, Massachusetts, and with Parker's brother, Dr. Benjamin Par­ ker of Newton, an apothecary from whom Craigie may have learned the business. Craigie's Boston connections were cen­ tered around his brother-in-law, the merchant Bossenger Fos­ ter, who owned in 1782 state and Congressional securities of over £4000 specie value which he had received in exchange for goods sold at .. full value." I. Toward the end of the war the name of Thomas Russell of Boston appeared on drafts used in Continental payments since he was a confidential agent of Robert Morris, the Finan­ cier." Still other merchants acquired unusual business experi­ ence in the management of public finances, as, for example, Nathaniel Gorham and Stephen Higginson who were a special committee on finance in the Massachusetts legislature in 1781; and Thomas Walley who was appointed in 1780 to settle state accounts for supplies. The benefits derived by individuals from such services as these is frequently debatable, but there is little doubt as to the profitable character of work done for the French forces. The five per cent commission purchasing which Samuel Breck and his partner Green did in 1781-together with Thomas Lloyd Halsey-for the French navy at Providence and Boston, and

37 Brown to Craigie, Aug. 12, 25, 1780, Sept. n, 1782, Craigie Papers. Craigie was a cousin of the Massachusetts Congressman James Lovell, who may have secured bim his appointment. 38 Fos~r to Craigie, July 7. 1782. ibid. 39 Doc. 21li9o. and Rec. Books, no. 80, p. 911. 110. 152, p. 1911. Div. of Old Recs. Rl15Sell is also mentioned in Jeremiah Wadsworth's public account books, 1m-Ins, for earlier public services or goods. 58 BUSINESS ENTERPRISE: REVOLUTIONARY ERA for a French military hospital in West Boston, was an especially attractive opportunity to combine patriotic services with private profits. From six to twenty-one thousand pounds of Massa­ chusetts currency passed monthly through Breck's hands. It indirectly benefited many persons. Bread was purchased from William Breed, flour from Aaron Lopez, rum from Jarvis and Johonnot, oil from Nathaniel Appleton, beef on one occasion from John R. Livingston and Moses Brown, oznaburgs from Thomas Russell, general supplies from Jonathan Winship and other merchants. Breck and Green likewise had the enviable opportunity of handling the prizes captured by the French squadron, and of negotiating great quantities of bills on France on a three per cent commission basis.40 In the field of private commerce the activities of several Boston merchants are instructive for an understanding of the economic situation, though broad generalizations should not be hastily drawn from such evidence. Caleb Davis is again an example. In 1778 he was concerned with Oliver Wendell ina: vessel from North Carolina. In October of the same year his sloop Friendship was chartered to a public commissary in Bal­ timore, the public being charged one-quarter of its cargo value for freightage. A year later Davis received payments from seven persons for their shares in the schooner Dave and cargo, and he also owned one-eighth or one-quarter in the schooner Hawk that year. In 1781 he was connected with Clark and Nightingale of Providence in other vessels.41 That D~vis' economic position must have been fairly good is revealed by the fact that he was concerned in 1779 with labor and supplies I for a" house in Nassau St." which he apparently was building. The Amorys have left a record of more substantial com­ mercial activity in 1778 and 1779 when they held an interest 40 B.reck and Green Account Book "A", passim. This book is in the hand­ wri,ti'ng of Nalbro Frazier, clerk of Breck. The French Crown was figured in Nov., 17'81, as equal to six shillings, eight pence of Mass. currency i the Mass. pound was figured at seventeen livres, ten ( ?), sous Tournois: ibid., p.71. 41 Davis Papers, 20, passim. MASSACHUSETTS AND RHODE ISLAND 59 in at least twenty ventures, though this sometimes consisted of but one-half or one-quarter of a share, and rarely over one whole share. The cost of such shares in a large ship venture averaged around one hundred pounds, however, and fractions sold for corresponding sums. Sometimes the Amorys simply owned" portions" of a cargo and outfit, all of which makes it evident that many commercial undertakings out of Boston were jointly financed by merchants for the purpose of spread­ ing war-time risk. These ventures in I 778 and I 779 were to a variety of places, indicating the commercial opportunities available. Several were to South Carolina, bringing back deer­ skins, rice, and hemp; to North Carolina; to Virginia; at least one to Connecticut; and a number to the West Indies. Am­ sterdam, Holland, was the destination of one brig; and Cadiz and Bilbao, Spain, were markets sought by a ship and a schooner. It cannot be argued, however, that fortunes were made thereby: Jonathan Amory's European business did not really pick up until the close of the period these records cover. On several ventures, moreover, the Amorys lost heavily, espe­ cially by reason of captures; but on.others they made profits, such as £277 on a quarter interest in the schooner Luey to Vir­ ginia, £235 on a one-sixteenth interest in the schooner Hazzard to St. Cruz, £108 on a one-eighth interest in the sloop Mirabile Diet" to .. St. Petre's." The profits from the schooner Eagle'S voyage in 1779, on which three prizes were taken, were especially large; so were those from a venture of the brig William to Amsterdam in 1778.·· Some light is thrown on the commerce of Boston in the later war years by the correspondence of the firm of John Codman, Jr., and William Smith, sons of merchants of some pre-war importance. There were two other Codmans concerned with this firm-Stephen, who went to Europe in the spring of 1782, and Isaac; and the marriage in 1781 of John Codman, Jr. to a sister of merchant Thomas Russell strengthened the firm's G Amory MS, Ship Aocount Book. What interest they had in the BogI, is not apparent, but its account is given in detail. 60 BUSINESS 'ENTERPRISE: REVOLUTIONARY ERA standing. Thomas and Chambers Russell owned the snow Industry together with this firm and did considerahle business for it from time to time. The firm's other important Ameri­ can connections were with several Philadelphians: George Meade, Thomas FitzSimons, and William Turnbull. By May, 1780, Codman and'Smith were concerned with the last espe­ cially in shipments to and from Gardoqui of Bilbao: white oak pipes, headings, and spars were sent to Spain, and flax­ seed and tobacco to Holland, while salt and lemons were im­ ported from Spain and sold in Boston at a " great price" in August.48 Turnbull ,was also used by the Boston house to pur­ chase exchange in Philadelphia, this amounting to as much as 10,000 livres at a time. On another occasion he was' informed that he could get money for them through Robert Morris, or by drawing on the Continental Clothier General; and in Jan­ uary, 1781, he was ordered to remit to them with a draft from John Holker, the French Consul, on Thomas Russell. Though Codman and Smith had made at least one unfor';" tunate venture with Meade by June, 1780, they continued to be interested in foreign cargoes with both Meade and Fitz­ Simons, warning the latter on May 30, 1782, however, that the risk of capture off Philadelphia was greater than at any other time. The West India market also appealed to these Bostonians and, together with Russell, they shipped fish and lumber to Guadeloupe in March, 1781. They also sent the ship Commerce there with flour, which Meade probably secured for it, in September, and another ship to the Spanish colonies in November. The Boston market itself was good for Phila­ delphia flour in February~ 1782.'" Codman and Smith's foreign trade with Gardoqui had temporarily come to an end in No­ vember, 1780, as a result of disagreement over freight rates. Thereafter Butler and Matthews at Cadiz, Ingraham and 43 To Butler and Matthews, Aug. 4. 1780, Cadman-Smith Letter Book. Isaac Smith had a half illiterest in their shipments to Spain. They were also in corre!>pondence wi·th Samuel and Moses Myers of Amsterdam. 44 To Meade and Co., Feb. 26, 1782, ibid. MASSACHUSETTS AND RHODE ISLAND 61 Bromfield at Amsterdam, and Jonathan Williams at Nantes were their principal foreign agents; but a year later German steel, cordage, ticklenburgs, knives, and handkerchiefs were again ordered from Gardoqui. Somewhat similar activities were carried on by John Welsh of Boston, who had a side interest in supplying the French forces in America with flour!' In 1781 he was interested in the Cadmans' Commerce, bound for the West Indies; like them, too, he had a brother representing him abroad in 1782, as did such other Boston families as those of Cheever, Wil­ liams, and Bromfield. J acob Welsh was to go to London in March of that year to buy "ruby foyl" and to send it back carefully marked, "for reasons you may guess."·· His in­ terests were like those of a son of W. D. Cheever, who wrote from Copenhagen to a London merchant in September, 1781, in thanks for goods just received!' Such New England merchants sometimes transacted their foreign business through the de Neufvilles of Amsterdam, who deserve special mention at this point. The Bostonian Caleb Davis and the Cheevers who were concerned in the ship Robin Hood; Joseph Barrell, Jarvis and Russell, Paschal and Smith, . and Loring and Austin who were concerned in the luno or the Hannah; and the Tracys, Greenleafs, Stephen Hooper, and Tristram Dalton of Newburyport who were concerned in the Minerva or the Gales, all consigned cargoes to or received them from the de Neufvilles in 1781. The Gates' voyage was financed, however, by drafts on the Gardoquis. The de Neuf­ villes also handled bills of exchange for Americans, as for Oliver Smith of Boston. Indeed, they were concerned with Americans in every important port held by the patriots, from

45 John W dsh Letter Book, passim. See OIapter Five on the flour business. 46 To Jacob Welsh, Feb. 9. March 29. 1782. Welsh Letter Book. On Jan. 12, 1781. Codman and Smith requested Gardoqui for le~ of introduction for Isaac Codman to .. your friends in Amsterdam and England": ibid. 47W. D. Cleever'1 son to Michael Joy (of Loodon), Sept. 29, 1781, Davw PajIeJ'S, 230 62 BUSINESS ENTERPRISE: REVOLUTIONARY ERA New Hampshire to Virginia, and also became acquainted with Americans in business abroad, such as Elkanah Watson at Nantes!8 The war-time commerce of the seaports of the North Shore -Marblehead, Salem, and Newburyport-and of Portsmouth, New Hampshire, can be mentioned but briefly and then only to show that it was active throughout most of the war. Such places were given especially enviable opportunities for both domestic and foreign trade by the closing of the port of Bos­ ton in 1774 and 1775, much of their enlarged foreign traffic being with Gardoqui of Bilbao, Spain, with whom merchants like Richard Derby of Salem had long been acquainted.~· Rising prices continued to encourage such activities along. the North Shore even after the reopening of Boston. In 1776 Stephen Higginson, Francis and George Cabot, John Cabot, and John Lee all touched at Bilbao with cargoes, some of which were taken on to Amsterdam. Superfine blankets, vel­ vets, fashionable broadcloth and other finery, in addition to . "musketts" and goods for Congress, were imported by them from Spain in October, 1776, and November, 1777.50 The following year the Cabots of Beverly gave directions to a cap­ tain to use" O'Rily and Smith" at " Coruna," and Jonathan Williams at Nantes, France, for management of their cargoes and prizes. 51 All these merchants, especially the Cabots and Joseph Lee who were partners, continued to have common in­ terests in ships. John and Andrew Cabot held a one-sixteetith

48 de Neufville Letter Book, passim; ct. also Otanning i~ Mass. Hist. Soc. p,.oc., XLIV. The de Neufvilles sent some silks to .. Lady Adams, Braintree," in 1781, as noted in Letter Book, p. II. , 49 R. E. Peabody, .. The Derbys of Salem, Mass.," Essex Instit. Coli., XLIV, 197; ct. also Por,ter, Jacksons and Lees, I, 266, 268, 272, 279. 50 T. W. Higginson, Stephen Higginson, pp. 45, 46. Higginson, however, apparently was not too well acquainted with the Bilbao market. Gardoqui to Joseph Lee and Co., Oct. 8, 1776, Zach Burchmore .to Lee, Oct. 15, 1776, and drMt of letter under Nov. 1777. Lee-Cabot Papers. 51 John and Andrew Cabot to Capt. Hugh Hi~l, Oct. 17, 1778, Timothy Orne MS, in Essex InJStit. MASSACHUSETTS AND RHODE ISLAND 63 &hare in the brig Active with Lee in 1780; these three, with George Cabot and the captain, owned the brig Hector in 1777. Lee and George Cabot together owned the prize ship Willson in 1778. Lee also held one-eighth of the brig Polly in 1780, and shares in others; he paid sums on three ships built in

1780, on two galleys built in 1782, and on .. vessels II being constructed the following year. IZ Though many of these were largely used for privateering purposes after 1777, several also carried letters of marque which enabled them to trade as well as to plunder. Such Massachusetts firms were frequently able to use southern products with which to make foreign remittances. Joseph Peabody, who got his business start as a privateer captain for the Derbys and Cabots, took at least two cargoes of salt to Virginia before the close of the war; he secured flour at Alexandria and carried it to Havana. G8 The Lees and Cabots sought rice and tobacco at Charleston in 1777; the Derbys carried tobacco to England in the fall of 1783 and sold it there for good profit. G6 It is an interesting commentary on the war-time methods of several Salem merchants that a ship owned by George Crowninshield, Nathaniel Silsbee, John Collins, and Joseph White was taken prize by an American privateer in 1781 because its cargo was intended for British Bahamas." As to Newburyport, itis said that only one out of thirty sail to the West Indies failed to make the trip safely in 1778 and 1779; ,. the success of the Tracys of that place in trade previous to 1778 would partially confirm such a statement for an earlier period. Though the firm of Jackson, Tracy and

52 Lee-Cabot Papers, ItJssim. 63 Mary C. Crawford, FamotU Familiu 0/ Mass., II, 298, 29!). lit Burchmore to Lee and Co., June I, 1777, Lee-Cabot Papers; he carried Loan Office certificates to make purchases with. C/. also Peabody, M er'Mn' Y nII,.,.".,. p. 52. and Chapter' Eight of this work. 65 C/. J. :L Howard, Seth Harding, Mariner. p. 137 if. 66 C/. C. W. Upham, Timothy Pickering, II. 147. 64 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Tracy was dissolved in 1777. for one thing because privateer­ ing or trade in letter-of-marque ships was supplanting the reg­ ular commerce. its profits on merchandise from successful trading efforts amounted to over £19.000 in three troubled years beginning in 1774. a gain which stood in contrast to its contemporary losses in privateers. If Possibly for this reason the firm was able to furnish supplies to the Continental Quar­ termaster's department in December. 1776.18 In Portsmouth the career of John Langdon was especially outstanding in both public and private enterprise. As Naval Agent there. it must have been Langdon whom John Bradford accused in 1776 of seizing all Continental prizes which stopped overnight in Ports­ mouth. instead of permitting them to go on to Boston where. Bradford claimed. they would sell for double the money." That Langdon was eager to get contracts for building Conti­ nental frigates is beyond dispute. eo Purchasing sugar for Rob­ ert Morris in February. 1777. he wrote a letter which also shows his interest in private business: he "intended to have Speculated to some Considerable Amount but the Sudden rise of all Articles. the great Clamour of the people against Monop­ olies. and the Critical Situation of affairs just then prevented my going any further-and Since then. Acts of these States Establishing the Prices of all Merchandize Amount to Pro­ hibition. . . ." 81 It is known that privateering helped make the fortunes of several Massachusetts families during the Revolution. but it is unlikely that most participants gained by it. especially af.ter 1780. It should be noted. however. that the greatest

57 Porter, Jacksons alld Lees, I, 17,337,338. 58 Rec. Book, no. 98, p. IS, Div. of Old Recs. 59 Bradford to Morris, Sept., S, 1776, Morris Corresp., in Library of Congress. 60 C/. Burnett, Letters, I, 282, 283, 434, 49S, 496. II, 3S9; c/. also Everett S. Stackpole, Hist. New Ha,npshir" II, 281. 61 To Robert Morris, Feb. IS, 1777, Morris Corresp., in Library of Congress. MASSACHUSETTS AND RHODE ISLAND 6S number of privateering commissions issued in Massachusetts was in 1781, with 1782 a close second and 1779 third; and that the state contributed a greater total of privateers than any other.·· Presumably, the amount of activity depended to some extent upon the relative possibility of success. In December, 1781, a Boston town committee report mentioned the "aston­ ishing successes" which had "hitherto" attended privateer­ ing." It also benefited those purchasing captured goods and ships, hastily sold at auction. John Bradford, Continental Marine Agent at Boston, acknowledged having purchased one prize for himself which he sold for a good profit.e• Merchants Isaac Smith, Ebenezer Storer, and 'Villiam Phillips occasion­ ally assisted Bradford, whose position was later filled by lawyer John Lowell. One case of successful privateering, proved beyond all doubt, is that of the Cabots of Beverly. Before the war the firm of John and Andrew Cabot, though of good credit, had no great prominence in New England. By the end of the war it had become one of the most prosperous firms in the state.ss Joseph Lee of Beverly and Richard and Elias Hasket Derby of Salem seem to have been similarly successful: Lee's ship Pilgrim took over thirty prizes in less than two years, though he probably owned only a part of her, his investments in such vessels rang­ ing from one thirty-second to one-half interest.e• Other promi­ nent post-war shippers of Salem must have been similarly successful, such as William Gray, son of a master shoemaker,

62 Figures computed from G. W. Allen, Mass. Priwteers of the Ref/O­ I,,'iOfl, passi",; J. F. Jameson, America" Revol.. ,;o" as Social Mowmenl, p. 103; Morison, Marilime Hist. Mass., p. 29; William Weeden, Ecrm. Social Hist. Nn. E"giartd, II, 770-7/1; R. V. Harlow ar.t S. E. Morison in Col. Soc:. Mass. Pub., XX, I&t, 192-19J. 63 Bostoo R~porls, XXVI, 214. 216. M Bradford to Caleb Davis, Feb. 12, 1781, Davis Papers, loa. 65 O. T. Howe, in Col. Soc. Mass. Pub., XXIV, 421. 66 Peabody, Jf"cNml V~nlur"s, pp. 45, 46; idem in Essex I~tit. Coli.. XUV, 215; C. E. Trow, Old Shitmost~rs 01 Sale"" p. 85; Pol'ter, op. cit., I, 22, 411, 41J. 66 BUSINESS ENTERPRISE: REVOLUTIONARY ERA who owned shares in at least eight privateers in 1781-1782 alone, and who purchased a good house in 1783 when but thirty-three years old. ST On the other hand the Tracys of New­ buryport both partly made and lost a fortune in the same practice.s8 In Bos~on Stephen Higginson was an outstanding business figure after having thus made, according to a family biographer, a fortune of 70,000 dollars in Salem in the early war years. S9 Other Boston merchants especially active in priva­ teering were Joseph Barrell, John Coffin Jones, John Codman, Leonard Jarvis, Mungo Mackey, Thomas Russell, and James Swan. This was also a leading interest of John R. Livingston, of Clermont, New York, who had located in Boston during the war for commercial purposes. TO Still other persons also of future business importance, but with smaller interests in priva­ teers, cooperated in financing ventures, and shares passed rapidly from hand to hand. As Boston's war-time commercial interests grew, the town became a center of remarkable activity in the purchase and sale of foreign bills and drafts. Jonathan Jackson mentioned being .. on the Exchange" there in 1782.11 Bills were neces­ sary for credit transactions, but their fluctuating values, in­ viting speculation, might work good or evil for the individual merchant. Isaac Wikoff of Philadelphia became involved in difficuloty in November, 1779, when he sought to repay Joseph Barrell of Boston for goods purchased through the Webbs of Wethersfield; Wikoff found that both bills and the pound ster­ ling had gone up in the meantime, and that people refused to

67 Edward Gray, William Gray, p. 10 et passim. 68 J. J. Currier, "Quid Newbury", pp. 551-557; Hunt's Merchants Mag., XI, 510; Porter, op. cit., I, passim. 69 Higginson, Higginson, p. 43. 70AHen, Mass. Privateers, passim; Charles Lincoln, Naval Records of the American Revolution, passim. 71 To Oliver Wendell, Nov. 21, 17&2, Jackson Letters of Mr. Austin Oark. Robert Morris said, in 1781, that Boston was the bill market for the Eastern states, as Phila. was for ,the Southern: Sparks, Diplomatic Corresp., XI,465n. x

12 Wikoff to Barrell, Nov. J4. J779, doc. 29227, Div. of Old Recs.. '13 To Richard Harrison at Cadiz, July 10, 28, 1781, Welsh Letter Book; but in December, the diSOOUllt rate was falling, i. e., the value of the bills was increasing, by reason of the French fleet having left .. the East": ibid., to Harrison, Dec. 19, 1781. 74 To Jacob Welsh, Dec. 26, 1782, Welsh Letter Book. 75 Davis Papers, loa. 711 Greene and Sons Account Books, no. 3, 718, 7J9, 720; the bills wer~ usually not senu-ed from these original owners. 68 BUSINESS ENTERPRISE: REVOLUTIONARY ERA judge whether or not it will be for our Interest to have the proceeds invested in bills of Exchange with you, as we mean to app:vpriate what may be in your hands to that purpose." 11 Samuel Breck and one of the Greens were used by a Phila­ delphian in 1781 to remit 1200 livres Tournois in bills on France,18 for Breck was very active in selling bills which he secured from the French forces. These amounted to over £30,000 specie value in 1781, and were purchased principally by Boston merchants.19 In connection wi,th the French contracting work of Jere.. miah Wadsworth of Hartford still other bills or drafts on the French government were secured. Thomas Lloyd Halsey of Providence sold most of these in Boston for Wadsworth at a commission of two and one-half per cent. Bills were high in August, 1780, Thomas Russell purchasing John Holker's bills on the French at only five per cent discount for hard money; 80 but Wadsworth noted a considerable increase in the discount rate on French bills at Boston during the next year, as follows: 5% discount for hard money in May, 1780; 15% in August; 20% and 25% in April, 1781.81 By July, 1781, Halsey had but a dull market for them; they could not be sold "while they are so Plenty & Hawked about at any Price," he com­ plained.82 The Tracys of Newburyport took great quantities of them from him at this time, however, at twenty-two and one-half per cent discount, possibly to meet their shipping losses. In August, 1781, Wadsworth and Carter complained 77 To William Turnbull,· De(". 14, 1780, Cadman-Smith Letter Book; there are other comments on exchange in letters to Meade or Turnbull of May 4, 8, June 29, Aug. 13, 1780. 78 Peter Wikoff to Joseph Barrell, Jan. 30, 1781, doc. 29226, Div. of OldRecs. 79 Breck and Green.Account Book "A", 108-117, gives sets of exchange, prices, and names of purchasers. 80 Russell to Wadsworth, Aug. 21, 1781, Wadsworth Corresp.; a Daniel O'Dell sold these in Boston for Holker. 81 Memorandum under April 13, 1781, ibid. 82 To Wadsworth, July II, ibid. MASSACHUSETTS AND RHODE ISLAND 6g to the French that while they had obeyed Rober,t Morris' orders against selling any more bills, persons from the eastern states came to Philadelphia and sold them, regardless, damag­ ing their market value!· Moses Michael Hays became the reg­ ular broker for Wadsworth in Boston at the end of the war and acted in a similar capacity for the public, thus assisting Jonathan Jackson in 1783.s. In other parts of New England merchants were similarly active in the manipulation of exchange. John Rogers of Provi­ dence said in September, 1780, that French bills, selling at twenty per cent under par, were" the best thing now to pur­ chase on the principle of speculation." He intended to take them abroad where they could be negotiated at but five per cent discount in France, or ten per cent in Holland; then he· would invest the proceeds in goods purchased in Holland or, in case of peace, in England.ls Aaron Lopez and Moses Seixas. of Newport closely followed both the Boston and Philadelphia bill markets in 1780-1781. In January, 1781, Seixas reported that in payment for flour, which was plentiful in Newport, the French gave seven dollars in bills at par, against its ordinary price of five dollars per hundred weight; he significantly added that the French Treasurer General, who drew the bills, "quar­ ters with us." 81 That the war stimulated the organization of marine insur­ ance groups in Boston and other New England seaports, has. already been noted. Nothing indicates better the associating­ influence of marine underwriting than the way Beverly firms. used Boston insurance capital at the beginning of the war. Joseph Lee secured £2360 insurance on a brig from Bilbao in 1776 from eighteen persons including Joseph Barrell, Thomas. Russell, and William Powell of Boston (all signed for by

83 To French Intendant, Aug. 17. 1;61. ibid. M Wadsworth and Carter Waste Book. 1783-1784. under March s. April 7•. May 27. ]_ 12. 1783: ]acksonto Wendell. Sept. 25. 1,s3;]ackson Letters_ 85 COfHfMru of Rhod, IslaM. II. 107. 86lbid.• II, 119, In; cf. also pp. 61; 123. 128. 70 BUSINES'S ENTERPRISE: REVOLUTIONARY ERA .. Sam Ward "), in addition to the Cabots, Derbys, and Dodges of Beverly and Salem. Andrew Cabot of Beverly secured a policy the same year, underwritten almost exclusively by Bos­ tonians, Tuthill Hubbard and Robert Pierpont participating together with those mentioned above.8f Ezekiel Price and Edward Payne continued to run their Boston offices. Rates were so high that it was little more than a gambling proposition, with the cards stacked in favor of the underwriters. John Welsh thought that insurance could be secured" to greater advantage by vast odds in France than in America" in 1782,88 which, if true, indicates that Americans had to pay higher rates because of a lack of domestic capital relative to the demand. Such opportunity was utilized by the enterprising John Hurd, who formed a real" company" some­ time before 1783, composed of twenty Boston merchants and their friends each of whom automatically took one-twentieth share in any policy signed for by any three of the associates. This was a significant advance on the looser voluntary methods of the earlier offices. In Hurd's company by 1784 were some of the most active war-time merchants of Boston, Cambridge, and Salem.88 The surprising' thing about Hurd was that he had spent his thirty years since leaving Harvard in politics at Portsmouth, returning to Boston by 1779 because political faction in New Hampshire had disgusted him. That he was

87 Policies under Nov. 19, Dec. 3, 1776, Lee-Cabot Papers; the rate on both voyages, from Bilbao, was 30%, and they rose as high as 60% later. 88 To Jaoob Welsh, June 19, 1782, Welsh Letter Book; however, a Copenhagen merchant wrote Caleb Davis, Aug. 29, 17'81, that he thought the contrary was true: Davis Papers, 23. 89II15urance Library Assoc. of Boston, Reports, I888-I900, pp. 45-46. Hurd's group included Thomas Russell, Joseph Barrell, James Swan, John Lowell, Samuel A. Otis, Jonathan Jackson, John Codman, Jr., Samuel Brown, Crowell Hatch, Mungo Mackey, Joseph Cordis, Chambers Russell, John Bromfield, ThomaS Dennie, WilIiam Smith, Richard Soderstrom, Benjamin Hall of Med,ford, Thomas Lee of Cambridge, Timothy Fitch and William 'Gray of Salem. This may have been the group originally associated with Price, who retired about 1781, or 178.3: New Eng. His.t. Genealog. Soc. Reg., XIX, 330. MASSACHUSETTS AND RHODE ISLAND 71 of the Hurd goldsmith family and brother-in-law of a promi­ nent Boston merchant, Thomas Walley, probably assisted him in his new and successful profession. Turning to the Rhode Island situation during the war for independence, it should first be remarked that Providence already had a small but important mercantile group solidified by family ties. Its center was the Brown family, represented in 1775 by the famous brothers, Nicholas, Joseph, John, and Moses, sons of the enterprising Captain James mentioned above, and by their surviving paternal uncles. Their first cousins already were, or soon after 1776 became, connected with the important Bowens, Arnolds, Howells, Cushings, and Dexters of the town. The Brown-Hopkins-Jenckes-Bowen mercantile combination was powerful in east side Providence on the eve of the war as was the growing firm of Clark and Nightingale on the west side.80 To these merchants Congress accordingly turned in 177 5 when it first sought supplies and ships in Providence. A number of them were on a local committee to construct frigates,81 and John Brown, "a stormy petrel and bold ad­ venturer," secured a contract to import goods for the Secret Committee of Congress, his brother Nicholas having a one­ third interest. Commissions of two and one-half per cent on sales abroad, and the same on return purchases, netted them £1403 on a voyage for firearms in 1776. They had received 20,000 dollars for such work in December, 1775.82 Perhaps

90 Gertrude Kimball, Providence in Colonial Times, PP.243, 294-298; W. E. Foster, .. Stephen Hopkins," Rhode Island Hist. Tracts, ,no. 19, 97 n., log, 152-153; William Weeden, Early Rhode Island, pp. 324. 330; W. F. Crawford, .. Commerce of Rhode !soland with Southern and Continental Colonies in the Eighteenth Century," Rhode Island Hist. Soc. Coli., XIV, 127 d passim. 91 E. M. Stone, 01/1' French Allies, p. 13; Out-Lellers of the Marine Board, I, 46. 92 Weeden, Early Rhode Island, pp. 238, 239. This section is sadly in­ adequate because the great collection of Brown Papers in the John Carter Brown Library is now inaccessible. 72 BUSINESS, ENTERPRISE: REVOLUTIONARY ERA it was to ship Congressional supplies that John Brown adver­ tised in November, 1776, for 250 hogsheads and 4000 hogs­ head hoops" immediately." 83 The Secret Committee consigned several foreign cargoes to Clark and Nightingale, and to Thomas Greene, in the summer of that year. Clark and Night­ ingale also had park for use of Continental troops in their Providence store in April, 1779.84 Doubtless many such Provi­ dence merchants tried, like Aaron Lopez, formerly of New­ port, to sell goods to the state Clothier General. Most Conti­ nental goods passed through the hands of Jabez Bowen's half­ brother, Ephraim Bowen, Jr., Deputy Quartermaster General, who, incidentally, acquired a private interest in the tobacco trade before the end of the war.8S Another important commis­ sary of supplies was John Russell, of a firm of trading broth­ ers. Welcome Arnold was still another agent for state sup­ plies on several occasions; he was also appointed to investigate the possibilities of manufacturing woolen clothing for the troops.88 In 1776 John J enckes, probably the insurance office-, keeper of that name, was the state agent for purchasing prize vessels. There is difference of opinion as to the war-time condition of Providence. In 1777, while protesting bitterly against in­ creased taxes and price regulations, a town committee headed by John Brown declared that the war had ruined the place, that shipping was rotting, that wealth was being invested else­ where, and that privateering successes were few. Of For the war period as a whole several writers have held to a similar opin- 93 p,.ovidence Gaaette and C ountf"Y Journal, Nov. 23. 1776. 94 A. G. Waldo, in Ame,.icana. VI, 1147; Gates Papers, Box XI, no. 144, no. 147; Samuel Nightingale Account Book, 1765-1785 mentions Continental powder handled. 95 Cf. "Revolutionary Correspondence," Rhode Island Hist. Soc. ColI.• VI, pasSin,; on Oot. 26, 1782, he gave pow~r of attorney to Wadsworth and Carter to collect money due him from Samuel Beall of Wi11~amsburg, ,Va.: Wadsworth Corresp. 96 Reco,.ds of State of Rhode Island, VIII, 230, 638. 97 W. R. Staples, Annals of the Town of p,.ovidence, pp. 2'28, 273, 284. MASSACHUSETTS AND RHODE ISLAND 73 ion;" but this is not entirely true. Only during the British occupation of Newport- from December, 1776, to October, 1779-was the foreign trade of Providence seriously checked, a condition promoting inland trade. In the long run Provi­ dence gained much of Newport's trade,89 and her local indus­ tries were encouraged: muskets were manufactured, a paper mill was started, the J enckeses established a " steel manufac­ tory," the tanning and saddlery business grew.100 In 1780 the French Commissary General noticed "large tracts of country cleared and many houses recently built" near Providence.101 Another Frenchman stated that the people of the town and state were money crazy: co The inhabitants of the coast, even the best Whigs, carry to the English fleet anchored in Gard­ ner bay provisions of all kinds, and this because they are well paid." loti Without doubt there was much illegal trade with the British. An employee of Moses Brown wrote him on Octo­ ber 10, 1776, that he was accused of engrossing provisions to send to New York for" hows fleet," and asked Moses to defend him against such charges. Moses himself had contem­ plated a trip there only a month before, for one thing to col­ lect money for John Brown.lotl French gold also helped give Providence prosperity in the latter half of the war. Citizens of the town claimed 4600 silver dollars from the French army

98 ct. Henry C. Dorr, a The Planting and Growth of Providence," Rhode Islmtd Hist. TrtJCu, no. 15,233; Weeden, Early Rhode Islmtd, pp. J2I, 347; both admit that certain individuals profited. 99 Weeden, 0'. cit., p. 278; also Weeden, a Newport," in Amer. Antiq. Soc. Proc.. D.S.. XVIII, 1I7; Allan Nevins, Americ_ Stotes Durittg and After the Rewilltiolf, p. 226. 100 Stolle, 0'. cit.. p. 7 Do; PrtIfIidnJ&e Guetle, Dec. 21, 117'6; R. M. Bayles, eeL, Hilt. 0/ PrOflidnlce COMly, I, s8o, s86. s89. 101/oflnllll 0/ Clotuk Blanchard, p. n. 102 G. S. Kimball, eeL, Pictwes 0/ Rhode Island ill the Past, p. 87. 103 Samuel Starbuck to Moses Brown, Joim to Moses "Brown, Sept. 12, 1776. Moses Brown Paper,. 74 BUSINESS' ENTERPRISE: REVOLUTIONARY ERA in I 782 for damages to property; it was paid under protest as an exorbitant sum.104 Concerning commercial conditions prior to 1780, a state­ mentof Governor Greene to a member of the Massachusetts General Court in October, 1779, is relevant: "There having been no access by sea to any port in this state for almost three years, the few vessels. fitted by our merchants are always ordered in your State. The privateers owned here send their prizes into your ports. . . . The retailers of foreign articles in this place have no supplies but from your State." 105 It un­ doubtedly was true that Providence had considerable internal commerce that year, as demonstrated by the appointment of John Brown and Joseph Nightingale to protest against Massa­ chusetts' inland trade restrictions, similar to those of Connec­ ticut, which were said to have injured Rhode Island.lOS Indeed, horses, forage, and pork were frequently taken from the state to other parts of the country throughout the war, inland commerce in army supplies alone being considerable: Wheat was brought to Providence from Connecticut as early as 1775 to be ground into flour for the army near Boston; and the presence of the French later necessitated the sending of great quantities of provisions to Rhode Island from the Chesapeake region. lOT However, there was no lack of foreign goods in Providence even while the British held Newport. The newspapers show that numerous prize captures were sold locally in the first year of the war at least, and that, by the close ofJ777, quantities of imported goods were available, though these may have been brought overland from Boston or South Shore Massachusetts 104 H. W. Preston, .. French Troops in Providence," Rhode Island Hist. Soc. Coil., XVII, 21; cf. also Stone, op. cit., p. 327; Weeden, Early Rhode Island, pp. 255, 327. 105 Rhode Island Hist. Soc. Coil., VI, 245. 106 B. Crowell, Spirit of '76 in Rhode Island, p. 197. 107" Revolutionary Correspondence," Rhode Island Hist. Soc. Coil:, VI, passim; Royal Hinman, ed., Hist. Collection of Conn., p. 331; Commerce of Rhode Island, II, 107. MASSACHUSETTS AND RHODE ISLAND 75 ports. In November, 1777, such West India products as sugar, chocolate, and logwood were advertised. John Brown also had tea, Russian duck, oznaburgs and other European importa­ tions for sale. In January and February, 1778, Lisbon salt, rum, sugar, steel, pottery, raisins, and indigo were available. The Russells had a variety of European manufactures for sale in March. A month later Henry Tillinghast had medicines just received from France. Welcome Arnold had every kind of European fabrics, including velvets and silks, and a quantity of West India produce on hand, as had the Russells and Jacob Greene in January, 1779.108 David Lopez wrote from Provi­ dence in July, 1779, that West India goods had fallen in price, which would indicate a surplus; he did add that local 1 markets were entirely governed in price by those in Boston. 0s There was even a shortage of ships in February, 1779, when the Continental Deputy Quartermaster wrote that he could not obtain a suitable ship in Rhode Island, to go to South Caro­ lina for rice, .. on any terms." 110 The career of Welcome Arnold also casts some doubt upon Greene's statement. An admiring son-in-law wrote many years later that Arnold, only thirty years of age in 1775 and the son of a farmer (of means and with good family connections, however), had entered trade with little or no capital in 1769, first with his brother Thomas Arnold, then from 1773 to 1776 with Caleb Green. Arnold went" boldly" into the West India trade in 1776, securing parts in many adventures to scatter the risk. Until August, 1778, he was exclusively so engaged; he .. must have greatly advanced his business, and greatly in­ creased his capital." It was all .. hazardous but very profitable commerce." 111 Though Arnold was in politics after 1778 he

l08p,.widenci Gasette, under dates. 109 Comme,.ce of Rhode Island, II, 63. 110 E. Bowen to N. Greene, Feb. 8, 1779, .. Revolutionary Correspondence," loco cit. 111 Tristam Burges, .. Memoir of Welcome ArllOld." Burges may have remembered imperfectly as to dates; he mentions the necessity of relying 76 BUSINESS ENTERPRISE: REVOLUTIONARY ERA had become the largest advertiser of goods in the Providence Gazette by the end of the war. In 1779 he and David Lopez planned to go on a " Speculating Journey to the Eastward in order to improve some Moneys ...." 111 The Browns were also particularly fortunate early in the war by reason of their control of spermaceti matter and can­ dles. In 1776 Moses and Nicholas hastened to buy up all the available" head matter" at Nantucket.ll8 When James Swan of Boston sought one hundred boxes of candles from Moses in August, 1777, the latter refused to sell. Not until the next March would he part with any of them and then only for a high price, but not as high, he claimed, as Nicholas was get­ ting.ll6 It is true that before August, 1777, the Browns had to close their spermaceti works because of the circumstances of the times (including the fact that cost of manufacture rose more in the preceding two years than cost of material); 111 but Moses Brown and Thomas Arnold then erected a salt works in its place. Though Moses ostensibly retired from com- ' merce during the war, he possibly invested his capital with brother John, who was anything but inactive; the latter owed him for certain notes in 1781.118 From 1779 un,til 1782 the commerce of Providence with Europe also expanded. Nicholas and John Brown, for ex­ ample, then traded with their former employee, Elkanah Wat­ son at Nantes, in supplies for Congress and in articles, of finery.11f In the latter half of the war merchants of Providence increasingly advertised goods in the local Gazette. Moreover. the appearance of new names there like Sterry and Murray, upon inland trade at one time. He also says that Arnold was foremost in advancing money to the United States during the war. 112 Comme,.ce of Rhode Island, II, 55. 113 Moses Brown Papers, passim. 114 To James SWaal, March 24, 1778, ibid. 115 Moses Brown to .. Brethren," Aug. 22, 1'177, ibid. 116 John to Moses Brown, April 'I, 1'181, ibid. 117 Weeden, Ea,.ly Rhode Island, pp. 346, 34'1. MASSACHUSETTS AND RHODE ISLAND 77 Thomas Richardson, and Thurston and Jenkins, is a clue to expanding commercial interests. In September, 1780, Sterry and Murray offered" English" and West India goods for sale; two months later Dark and Nightingale and Zachariah Allen needed staves and hoops at once for shipments; and Amos Throop offered tea, raisins, and medicines .. exceeding cheap." In January, 1781, Richardson had European goods, .. just imported"; Swedish iron and Holland rum were offered by another merchant. The largest advertiser was Arnold, as has been said, and occasionally he also called for hoops and staves. Before or immediately after the conclusion of the war, moreover, he had developed direct relations with the Baltic region, importing Russian hemp, sail cloth, and iron, and also with Mediterranean Europe.uB Similarly, by 1782 Dark and Nightingale were importing directly from Holland for sale in Providence; the year before they were interested in establish­ ing a new Boston commercial house, headed by a merchant just returned from Europe.ul Opportunity certainly came to several Providence merchants after 1779 in the needs of the French forces. The French owed John Brown 1000 dollars for cordage in 1781.120 Thomas Lloyd Halsey, who had married a sister of Jabez Bowen and who was only thirty-four years old in 1775, became most prominently connected with such supplies there. In 1777 he had prepared to go to France as agent of .. the Owners of the Privateers Fitted out by the Merchants of New England," but was somehow detained. General Sullivan recommended him to Count D'Estaing in 1779 as a supplier of provisions for the French fleet in Providence. Halsey subsequently went to Boston and contracted to supply the troops under Rocham­ beau, continuing in charge of such work there for three years

118 Burges, 01. cit.; the greater part of his fortune was made in this, prob­ ably over a long period of time. 119 Nightingale-Jenckes Papers, 1tJ.rsim. 120 Joim to Mosel Brown, April 7, 1781, Moses Brown Papers. 78 BUSINESS ENTERPRISE: REVOLUTIONARY ERA together with Samuel Breck.l2l Cooperating with agents of Wadsworth and Carter, other French contractors, Halsey also managed the sale of large quantities of bills on France for a commission. In December, 1781, he wrote for 200 teams to carry supplies from Hartford to Poughkeepsie.122 Soon after the French left in '1782 he had a physical collapse and was carried home in the" chariot" of Breck. On March S, 1783, however, he was in Philadelphia where he paid John Carter a sum on behalf of John R. Livingston of Boston.128 That same year he was appointed French commercial agent for Rhode Island. Another merchant who similarly partook of the French opportunities was Christopher Champlin of Newport, who had been victualing agent of the British fleet before the war. He secured permission in September, 1780, to ship flour out of Connecticut for the use of the French.12* There are only fragmentary records concerning the priva­ teering ventures of Rhode Island merchants, most of which were out of Providence. Secondary writers have declared that' they were generally successful.126 In November, 1776, Dr. Ezra Stiles wrote, "It has been computed that this War by prizes by building ships of War & the Navy has already within a year and a half brought into Providence near Three Hundred Thousand Sterling; which is double the Property of the whole Town two years ago." 126 Though the first year was undoubt­ edly the most successful one for captures, Nicholas Brown continued to be very active in this enterprise as did J ohn In~is 121 .. Thomas Lloyd Halsey's Account of his Part in the Revolution." ct. also, Jacob L. Halsey, Thomas Halsey of Her-tfordshire, England, and Southhampden, Long Island (Morristown, ISgS), pp. 478, 479. 122 Halsey to Jeffrey, Dec. 22, 1781, Wadsworth Corresp. Halsey re­ queSited 216g specie dollars of Wadsworth on Oct. 23, 1'781, for transporting French goods from Providence ,to Boston: ibid. 123 Wadsworth and Car,ter Waste Book, 1783-1784, under date. 124 Commerce of Rhode Island, II, 107. 125 Bayles, op. cit., I, 188; Staples, op. cit,. p. 270. 126 Quoted in I. B. Richmond. Rhode Island, A Study in Separatism, p.220. MASSACHUSETTS AND RHODE ISLAND 79 Oark, of Oark and Nightingale.12f Shares in ships passed rapidly between individuals and groups, but perhaps many per­ sons, like General Nathanael Greene, lost by their participation. There can be no doubt that the war left Providence in an advanced economic position. Her neighbors could no longer refer to her as a place only fit to supply their tables with pickled oysters.1Z8 She now possessed a larger mercantile popu­ lation and a commerce truly international. Into her port came ships from various European countries, financed by the Rus­ sells, Nightingales, John Brown, Welcome Arnold, and Nathan Green.128

127 William P. Sheffield, Privateersmt'1t 0/ Neu,port ... (Address before Rhode Island His.t. Soc., Feb. 7, 188z), pp. 29, 33; an appendix, pp. ,58-63, gives a fragmentary list of privateers and captures; it relates principally to the activities of P·rovidence merchants. 128 Burges, o/>. cit., says that such was tbe pre-war saying. 129 E. g., ct. doe. 561, Enunet Coli. CHAPTER IV .JEREMIAH WADSWORTH AND HIS ASSOCIATES THOUGH the Connecticut River valley was the first region to produce surplus grain in the colonial period, by 1775 it was meat provisions, especially beef and pork, which constituted the principal exports of the district. These products became indispensable to the Continental and French forces during the Revolution. Thus in the heart of New England a remarkable war-time activity developed among a number of traders, who continued to cooperate in post-war capitalist enterprise, under the able leadership of Jeremiah Wadsworth of Hartford. N oithern army needs constantly brought together goods from localities iike western Connecticut and Massachusetts. To New York City in 1776, for example, the patriot forces brought oats from Norwich, linseed oil from Hartford, and corn from Stratford, as well as nail rods from New Jersey" country linens from Pennsylvania, corn and oats from Dobbs Ferry, and lumber from Albany.1 As the war progressed traffic between upper New York and the New England statesespeci­ ally assumed large proportions because of the British capture of New York City. Boston to Hartford to Qaverack to Rhine­ beck on the Hudson, or Springfield to Hartford to Newburgh on the Hudson, became popular westward routes of travel. Goods going in the other direction, probably in smaller quan­ tities, might reverse such routes; or they might go from Albany to Boston by way of Kinderhook, Hartford, and Springfield. Tents and clothing from Boston, salt and horses from Providence, oakum, rum, cordage, steel, soap, candles, wheat, beef, and pork from Massachusetts and Connecticut' towns flowed westwardly; 2 and especially to Boston went

I Hugh Hughes Letter Books, II 17'16," passim.

2 Ibid., II Letters to Con'/leCticut, 1780-1781," "Letters to MaS6achusetts, 1780," II Letters to Albany, 1780-1782," "Letters Promiscuous, 1780-1781," aLl passim. 80 JEREMIAH WADSWORTH AND HIS ASSOCIATES 81 flour from New York and western Massachusetts. Caravans of as many as two hundred teams traversed these regions.· In 1782 Alexander Hamilton estimated New York's importations from New England at about fifty thousand pounds annually, and New England's imports from New York State at thirty thousand pounds. The balance was paid in gold which New York had because of military expenditures.· Connecticut men immediately appreciated such war-trading opportunities, as we shall see in the clash of supply interests around Albany in 1775. East Windsor became a "provisions center," probably for rye grain, principally; Norwich was a .. storehouse" of provisions and general supplies.5 From a tri­ angular section of the Connecticut Valley especially-encom­ passing Hartford, Connecticut, and Granville and Hatfield, Massachusetts-native produce flowed most freely. Here were the homes of the war-traders Jeremiah Wadsworth, Oliver Phelps, Israel Chapin, Julius Deming, and Epaphroditus Cham­ pion. Hampden and Hampshire counties of southern Massa­ chusetts were excellent cattle lands.' From the first, army supplies in Connecticut were handled by enterprising men, such as those appointed by the state in April, 1775, including Henry Champion, Thomas Mumford, and Jeremiah Wadsworth.' Innumerable persons in turn han-

3 Pitkin and Lewis of Farmington agreed to furnish 200 teams to trans­ port goods from Hartford to Poughkeepsie. Jeffery to Wadsworth, Jan. s, 1782, Wad9worth Corresp. 4 Work" Federal eel .. IX, 272. 6 H. R. Stiles, Anew'" Wiftd,o,., I, passim; D. C. Gilman, Historical AdJr", (Norwich, 1859), p. 72; A. C. White, History of Litchfield, p. 93; P. K. Kilbourne, Biog. Hist. of Litchfield, COIIII., p. 24 ff., espedally on career of Oliver Wolcott, Deputy Quartennaster of Continental Stores, In9-l,&!. 8 On this trade, the Champions and Deming, cf. Nathaniel Sylvester, Hisl. of tM COM. Volley jlt MIJI' .. I, 398; White, Litchfield, pp. 135, 137: F. B. Trowbridge, CluJmpiOlt Genealogy (New Haven, Coon., 18g1), pp. 278-380, 440-446. The Champions lived in Colchester, Conn.; Deming be­ came related to them by marriage. 'I R. R. Hinman, eeL, Hist. Collectioll of COItlt., p. 16g. 82 BUSINESS ENTERPRISE: REVOLUTIONARY ERA dIed or furnished supplies for these men and for such Conti­ nental Commissaries as Joseph Trumbull and Peter Colt. The merchant Huntingtons of Norwich were very active in this army trade; ,so were Thomas Shaw of Groton, Nathaniel Shaw, Jr. and Edward Hallam of New London, John Daven­ port of Stamford, Barnabas Deane of Wethersfield, and Eze­ kiel Williams of Hartford.8 The business growth of Hartford was especially noticeable because of the town's safety from attack and its reception of new commerce caused by the abandonment of the shore road to N ew York. Hartford was also a place of confinement for loyalists from northern N ew York and a place of refuge for patriots from N ew York City and Long Island, all of whom had to purchase their living while in exile. In 1781 the French established a hospital in Hartford, which required supplies. It is not surprising that Wadsworth built a new store in 1779; that Thomas Seymour planned to erect a grist and saw mill there that same year.s ' Most important of the Connecticut traders during the Revo­ lution was this Jeremiah Wadsworth, the son of a Hartford minister and the nephew of the merchant Talcott of Middle­ town. After following the sea until 1773, he had settled in Hartford. His father had left an estate of some two thousand pounds, unusually large for a clergyman; so Jeremiah, a young man of thirty-two in 1775, had not only a good family back- ground but also some property.l0. '

8 Cf. Huntington Papers, passim. < 9W. D. Love, ColonMd History of Hartford, pp. 193,' 318; Journal of Claude Blanchard, p. IIO; Jeffery to Wadsworth, Dec. 2, '13, 1779, Wads­ worth Corresp. On complaint of Hartford citizens about British prisoners paying so well as to keep commodity prices high, cf. Hinman, op. cit., p. 599. 10 Horace Wadsworth, Wadsworth Family (Lawrence, Mass., 1883), pp. 80,81; G. L. Walker, First Church in Hartford (Hartford, 1883), pp. 277. 31'0,463; P. H. Woodward, Hartford Bank,'W. 32-34. His mother was a daughter of Gov. Joseph Talcott; his wife, daughter of a minister Russell of Middletown, was related to 'the Pierponts of New Haven, and her brother and si5'l:er both married Talcotts. JEREMIAH WADSWORTH AND HIS ASSOCIATES 83 At the beginning of the war Wadsworth was sufficiently unoccupied at home to be in Philadelphia in the company of his ambitious neighbor, Silas Deane, who thought well of him and wanted the public to do so. Wadsworth soon became a commissary of supplies for Connecticut, purchasing clothing and pork in 1775; soon after, he began to buy for the Conti­ nental troops. In October, 1775, he was ordered by Governor Trumbull to store and equip a state brig.ll His various public duties held him at the " Saw Pitts," Rye, in the late summer of 1776. He purchased clothing and hospital goods in August, ordered large quantities of grain, and received sums of money from the Continental Quartermaster and Commissary Gen­ erals. On October 12, Wadsworth was credited in the Conti­ nental Quartermaster's accounts, "To cash paid himself," 30,000 dollars. During the next two years his books show that as Deputy Commissary General, he handled large sums for the public, paying out to such persons as Ephraim Bowen, Jr., of Providence, and Thomas Russell of Boston,12 In No­ vember, 1777, Wadsworth was so busy he refused the office of Commissary General of Prisoners for Connecticut.18 In 1778 he received cash for dozens of Loan Office certificates. So well had he conducted himself in this bewildering variety of work that Eliphalet Dyer could write on February 8, 1778, shortly before Congress elected Wadsworth Commissary Gen­ eral of all the Continental forces, "they hear much of Capt. Wadsworth. the eyes of the public, the army, and Congress are mostly on him.... I dare say Mr. Wadsworth might

11 L. F. Middlebrook, Hist. of Maritime C01I1I., 1,23; Wadsworth, Wads­ worth Family, p. 82; Conn. Revolutionary Archives, XVI, SI, 52, IX, 4. 49. He did other work for the state, including the management of confiscated estates, 1780-1781. 12 Docs, 28301, 29539, Rec. Book no. 98, p. 53, Div. of Old Recs.; Wads­ wOJ'th to Captain Starr, Sept. 29. 1776, Wadsworth Papers in New York Hist. Soc.; Cash BooIe, 1776-1779. Wadsworth Papers in Conn. Hi&t. Soc. 13 To Mr... Bottinot" (Boudinot), Nov. S, 1777, Wadsworth Papers in New York Hilt. Soc. 84 . BUSINESS· ENTERPRISE: REVOLUTIONARY ERA have any terms ...." Ii This office, in which he received after April 9, 1778, one-half of one per cent of all money received and expended by the department, he would have spurned had he. known beforehand of the subsequent price "Regulating Act" of Connecticut, similar to that being urged in Massa­ chusetts in June, i 778.16 His commissions, not excessive but " Considerable Compared with what some other persons who have been engaged in the public Service have got or rather lost," apparently aroused some resentment. 11 Wadsworth resigned the Commissary Generalship in De­ cember, 1779, amid the usual complaints. Royal Flint and Peter Colt, also in the public service, sympathized with him, the latter resigning his own post at once and the former a little later.1T Yet Congress, on December 24, requested Wads­ worth to contract for flour and provisions; and his successor, Blaine, continued to seek his assistance in securing provisions for West Point, "for without your aid Teams cannot be procured." 18 Though engaged in 1780 in settling his army accounts, Wadsworth stated in June that he was busier fur­ nishing supplies to the forces than when in office. 11 He had undoubtedly been as much of a success in public service as the confused times permitted. From this time on Wadsworth was a free agent, engaging in some private enterprise with John Chaloner, of Chaloner and White of Philadelphia, with whom he had done consider-

14 Burnett, Letters, III, 78. 15 To Washington, June 4. Ins, Wadsworth Papers in New York Hist. Soc. 16 Jesse Root to Wadsworth, Oct. 6, 1779, Wadsworth Corresp.; Burnett. Letters, IV, 476. 17 Royal Flint to General Greene, Dec. 19, I779. Peter Colt to (Flint?), Dec. 21, 1779, Wadsworth Corresp. 18 Blaine to Wadsworth, no date, ibid. 19 To Oliver Ellsworth, June 17, 1780, ibid. He did so in spite of the resentment he felt over his treatment; his loyalty to the public service is further revealed in his letter of May 2, 1780, to Shadrach Osbom (Doc. o,H608, Div. of Old Recs.), appealing for help for the army at West Point. JEREKIAH WADSWORTH AND HIS ASSOCIATES 85 able public business. Chaloner kept him informed of conditions of trade, ship building, bills of exchange, and insurance in Philadelphia, and on March 29, 1780, bought a one-thirty­ second part of a privateering brig, the General Wayne, for £5000 on .. our joint account." 10 Wadsworth was also con­ nected with Theodore Hopkins, of Hartford, when the latter sailed from Boston, April, 1780, to look after trade matters abroad; U they continued this relationship until after the war. Such private business of Wadsworth was in keeping with that of the Hartford district. There, for example, were his friends, the socially prominent \Vebb brothers of Wethersfield, whose war activities were considerable, for one reason because they were personally acquainted with many important busi­ ness men. Joseph Barrell, the Boston merchant, was their .. brother"; Samuel A. Otis, the public clothier, \\"as a face­ tious Boston friend; Silas Deane was their stepfather.za The \Vebbs engaged in privateering, which was very successful out of Wethersfield in 1779, retaining as legal counsel William Samuel Johnson and Oliver Ellsworth. In 1777 they engaged in the Martinique trade together with Joseph Trumbull, for­ mer Commissary General of Continental troops, and Jacob Sebor; they handled government Clothing and they were con­ cerned on one occasion at least with Wadsworth in the West India trade. Though Samuel B. Webb lamented to Wadsworth in 1779 that public virtue was II Totally damn'd," he also wrote, .. Mr. Colt tells me he mentioned to you his purchase of Powder and prospects of the great profits arising thereon­ your Hum servt. had dip'd in the same way. the powder was sold by Mr. Barrell for more than double the cost, but Judge our disappointment when by the last post we hear that· the powder is all condemned and Turned on our Hands, & that article since fallen one half. . • • this is my first Essay on

20 From OaIoner, Yardl 3, 29, r78o. Wadsworth CorTesp. 21 From Samuel Broom, Y.,- 3, 1780. from T. Hopkins, April 29, li8o, ibid. 22W. C. Ford, eel., Coru.~, of Samuel B. Wltbb, I,I1,ltJssiffl. 86 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Speculation, Dam the luck." A few months later Webb wrote Barrell that he, Barnabas Deane and others were going to Newport to see the French fleet and army, and" if you Joseph Barrell with half a dozen other Cleaver fellows from Boston will take it in your heads to meet us there you'll make us happy-and I haven't a doubt you may find some business in the speculateing way which will make it worth your while,­ as I am told their is many goods come out in the fleet, dont hesitate." 2S Joseph Webb erected a tannery some time later and sought the business of the " French hides." Under such circumstances it would have been strange had not the private concerns of" Jerry" Wadsworth also in­ creased, even while he held public office. An interest in the sale of goods is apparently revealed in his letter of March 18, 1776, addressed to some Philadelphia merchants, stating that Boston was about to be evacuated, that the Continental troops would not be kept "in this Quarter - and the demand for Goods will not be great here if You have not Already pur':' chased I desire You will not Purchase any of the Goods which Mr. Seabour directed. . . . Mr. Webb is now at Cambridge on his return we shall write you more fully." 2. On April 6, 1779, Wadsworth indirectly admitted Stephen Keyes' charge that he was carrying on private trade in cattle and other things, since he claimed that it was but "equally prejudicial to the Publick with the trade you are persueing in stor~s"; he added that Stephen's brother, Amasa Keyes, knew of all his transactions. 25 In 1780, Wadsworth's brother-in-law Mat­ thew Talcott sent him an "Original Mast Contract." 28 Probably in 1779, while Commissary General, Wadsworth also formed a private commercial connection with General

23 Webb to Wadsworth, Dec. 9, 1779, Webb to Barrel1, July 16, 1780. Ibid., II, 225, 274. 24 To Benjamin Mershal and Brothers, Wadsworth Papers in New York Hist. Soc. 25 To Stephen Keyes, Wadswol"th Corresp. 26 Talcott to Wadsworth, Feb. 4 (1780?), ilna. JEREMIAH WADSWORTH AND HIS ASSOCIATES 87 Nathanael Greene, then Quartermaster General, and with Bar­ nabas Deane of Wethersfield and Hartford.27 The career of Barnabas Deane had been as much moulded by war conditions as was that of Wadsworth. Barnabas not only took over the trade of his brother, Silas Deane, but he was also active in public service: shipping supplies to Fort Ticonderoga, trans­ porting iron and handling supplies for Connecticut, construct­ ing a Continental frigate at Chatham.28 He was thus well prepared to manage the affairs of the new concern, "Bar­ nabas Deane and Company," for which Wadsworth and Greene supplied the capital. The connection of such promi­ nent public officers was necessarily kept a secret, Greene warn­ ing Wadsworth in April, 1779, that" however just and up­ right our conduct may be, the World will have suspicions to our disadvantage. . . . By keeping the affair a secret I am confident we shall have it more in our power to serve the commercial connection than by publishing it." 29 The nature and success of the firm's work, however, are largely unknown. Deane and Wadsworth together had sought to furnish Connecticut Valley spars and masts to various states as early as August, 1776.10 In 1779 they constructed the frigate Trum­ bull on a commission basis of five per cent; 81 they were also then concerned in a voyage to Port-au-Prince from Middle­ town, had a three-eighths interest. together in the construction

21 Ct. J. H. Trumbull, "A Business Finn in the Revolution," Mag. Ame,.. HUt., VII, 17-28. 28 Conn. Rev. Archives, III, 53, 500, 6333, X, 238, XIX, 40[, XXXI, 205, XXXV, ISJak. XXXVII, 163.

29PentlG. Mag. HUt. Biog., XXII, 2[[ ff.; ct. Silas' inquiry about the finn in DearJl! Pa/1e,.1 (New York Hist. Soc. Coli.), III, 421, though he apparently knew nothing of Greene's interest in it. 30" Dean &: Wadsworth" to -, Aug. 22, rn6, Wadsworth Papers in New York Hist. Soc.; they had already supplied the "Ship we are build­ ing" at Chatham. Wadsworth \mew the lumber business from his appren­ ticeship. 31 On settlement of this frigate account, Benjamin Walker ~ote Wads­ worth, Oct. 31, 1788, Wadsworth Corresp. 88 BUSINESS ENTERPRISE: REVOLUTIONARY ERA of .. another" brig, financed a voyage to Hispaniola for sugar and coffee, and together purchased bills in Hartford on which they hoped to realize thirty per cent profits in Phila­ delphia. 8z In 1781 Deane and Company did work for Wads­ worth and Carter and the French troops. Deane wrote Wads­ worth in January, 1782, about .. our share" in a sale of lumber to the West Indies, and of the return of a brig in the Havana trade. sa Whether all such activities after 1779 were a part of the concern with Greene, however, there is no way of telling. Greene occasionally received news from the other two on commercial matters 84 and at least one draft of £900 of Greene on Wadsworth was honored toward the end of the war; but so well was the secret of the firm kept that Oliver Phelps, an associated contractor, did not learn of Wadsworth's connection with Deane until 1784.85 Jeremiah Wadsworth first became a commercial figure of great importance, however, by reason of his contracts with the French forces. He had been with the Marquis de LaFayette in May, 1780, and in June engaged with the French commis­ sary of supplies" to execute the business which you [LaFay­ ette] proposed to me." This seems to have been for supplying forage and horses.·· A number of other persons, however, including several from Hartford County, Walker and Com­ pany of Boston, and even Vermont traders, also secured such early contracts from the French at Providence. If On July 26,

32 From Barnabas Deane, Dec:. 2, 8, 1779, ibid. Deane was probably also interested in the distillery Wadsworth considered erecting in 1781: Wads­ worth to Chalooer, Aug. 3, 1781, Chaloner-White Papers. 33 Wadsworth and Carter Waste Book, 1781, under July 24. Oct. 26; Deane to Wadsworth, Jan. 28, 1]82, Wadsworth Corresp. 34 E. g., Greene to Wadsworth, Oct. 26, 1;81, ibid.; there is a curious passage in this letter, as though written in code. Greene apparently withdrew from the firm sometime in 1781. 35 From Phelps, Nov. 30, 1784. ibid. 36 Wadsworth to LaFayette, June 21, 1780, ibid.; c/. also, LaFayette to Luzerne, June, 1780, in Amer. Hist. Rev., XX, 359- 37 Stone, 0", F,.~ru:1s Allies, p. 216. The work of T. H. Halsey at lEREJUAH WADSWORTH AND HIS ASSOCIATES 8g

Connecticut appointed 'Vadsworth as agent to secure speci~ from the French, with which he was to purchase clothing for the state." In the meantime, Royal Flint, retired from public service, set out to represent Wadsworth at Rhode Island where the French advanced him money;" and Peter Colt, Nehemiah Hubbard, and David Trumbull began to buy supplies for 'Vadsworth throughout Connecticut and Massachusetts--such as wood from the Huntingtons of Norwich and cattle offered by Oliver Phelps. Yet by July 27 Wadsworth resolved not to continue in the .. french business," .. though Flint, Colt and others continued to write him about it. By August 24, s~rious trouble arose when the French refused to accept some of Wadsworth's small cattle, which Bint did not believe would be condemned by the .. proper persons." \Vadsworth was obviously in a fair way to ruin with Bint resolving to seek a contract for himself, the French beginning to purchase beef of "Parker & Co.," and a certain " Mr. Carter" obtaining such provisioning business for himself at Newport. 61 'Vithin a month, however, order was brought out of chaos by the union of Wadsworth with the dashing Mr. Carter. Before October 12 'Vadsworth and Carter together memo­ rialized the French to handle all their supplies; this resulted in forage and meat contracts for November and December at five per cent commissions, with purchases payable in as little hard money as possible, Continental paper, and bills on Paris.4s Providence has already heeD mmtioned. The contractors were paid one-third in cash, two-thirds in bills OIl France. John Carter apparently was a partner in the Walker Company. Halsey to Jeffery, Oct. JOt 1781, mentions a law­ IUit ~ Carter and Walker. Could this have been Benjamin Walker. later an aide of Washington? 38 Goftmor and Couucil of Coon. to Wadsworth, July 26, 1780, Wad$­ worth Corrcsp. 39 Flint to Wadsworth, June 28, July 4. I78o. ibid. 4OWadsworth to (David Trumbull?). July 21. and to De Corney, July 29. ibUi. The Frmch way of doing business was too expensive, he complained.. t1 Flint to Wadsworth. Aug. 24. 25, 1780, ihi4. OlL. Tarle to Wadsworth, Oct. 12, 1780, ibid. 90 BUSINESS ENTERPRISE; REVOLUTIONARY ERA The French even apologized to Wadsworth, begged him to supply again, and gave him bills figured at five livres five sous to the dollar, which was five more sous than usual!8 The nature of the firm of Wadsworth and Carter is revealed in this agreement of October 17; That the said Carter having contracted with Mr. Daure Regisseur of Provisions for the French Army to furnish One Thousand hun­ dred Weight of Wheat Flour and Two Hundred Sacks of Rye Flour, and also with the Intendant of said Navy to furnish Two Thousand four hundred BushilIs of Pulse doth agree that the said Contracts shall be a j oint Concern between him and said Wads­ worth and said Parties having agreed to supply the Demands of said Anny it is agreed that the Profits deducting all charges shall be equally divided between them as also all Profits arising from Prizes which shall be taken by the Vessels of the French Fleet and Consigned to either or both of them. . . . 44 This was one of the most significant business documents of the Revolutionary era. Who was " Mr. Carter"? His real name was John Barker Church.45 Of good family, he fled from England for personal reasons 46 and arrived in America at the beginning of the war, when he assumed the alias of Carter. He was appointed Com­ missioner of Accounts for the Northern Army in 1776. Wil­ liam Duer gave him a letter of introduction to General Philip Schuyler in September of that year/1 and Carter prese~tly

43 Wadsworth to Gov. Trumbull, Oct. 27, 1780, ibid. 44 Agreement made at Newport, witnessed by E. Champion and John Jeffery, under Oct. 17, 1780, ibid. 45 I am indebted for suggestions as to material on Carter, as on other problems, to Mr. T. R. Hay, of Great Neck, Long Island. Seethe erroneous sketch of Carter, "Intimate Friend of Old Celebrities in America and Europe," by J. S. Minard, I .. of Amer. Hist., II, .pp. 48-63; he is aolso re­ fered to in A. M. Hamilton, Intimate Life of Alexander Hamilton (London, 1910), passim. 46 For gambling with others' funds, according to Isaac Sears, in a lettec to Horatio Gates, Dec. 24, 1779, Gates Papers, Box XIII, no. 386. 47 Duer to Schuyler, Sept. 4, 1';76, .. Military Papers," 1110. 572, Schuyler Papers. JEREMIAH WADSWORTH AND HIS ASSOCIATES 91 eloped with Schuyler's attractive daughter, Angelica, -securing through her social contacts which probably account for his being at Newport as an important business man in 1780. Perhaps such a dashing fellow provided the social touch neces­ sary in a combination with the able but provincial Wadsworth. That Carter was occasionally indirect in his methods is seen in his trying in 1777 to buy his benefactor Duer's lands on the Hudson at Fort Miller in a sub rosa fashion for his father­ in-law!8 Moreover, if Claude Blanchard's insinuations were true, that the banker and one of the important commissaries of the French army were not above lining their own pockets during the American campaign/9 the cosmopolitan Carter was probably a good man to handle such slippery agents. Carter's family connection was invaluable even after the original French contracts were secured. From Newport, Oc­ tober 25, 1780, he hastily wrote Wadsworth in this interesting fashion: Parker brot me a letter from Schuyler, he acquaints me he will be at Hartford on a Committee the beginning of next Month, Parker says part of their Business is to endeavor to agree that the states may supply the French army you will see him on that Subject such a Matter must not take Place-pray send him the enclosed Letter. . . . 50 However effective this plea to Schuyler may have been, the contracts were not interfered with by state action. Wadsworth and Carter purchased directly from numerous Connecticut traders, such as the Huntingtons of Norwich, and James Lloyd of Fairfield County, hay, oats and rye.11 They

48 Carter to James Mulligan, Sept. 9. 1778, Misc. Ms "C", in New York Hist. Soc. 49 Cf. Jount41 of Claude Blanchard, pp. 87, 106; on page So he mentions Carter at Newl)Ort, in July, on proviSlionmg work. 60 Under date, Wadsworth Corresp. 51 Carter to Joshua Huntington. Nov. 9. 1780, Misc. MS .. C", in New York Hist. Soc.; Lloyd Papers. II, 770 et passim. The Huntingtons did a variety of work for them: cf. F. M.Caulkins. History of Norwich, p. 418. 92 BUSINESS ENTERPRISE: REVOLUTIONARY ERA more frequently acted through a remarkable group of agents and sub-contractors, often with experience in the Continental commissariat, including James Watson, Peter Colt, Nehemiah Hubbard, Oliver Phelps, and David Trumbull, the last two selling them great herds of cattle of southern Massachusetts, the others scouring Connecticut for flour, beans, and hay.u Hubbard and Colt were certainly their responsible agents, as was Royal Flint of Windham who was in charge of their de­ liveries at Providence. John Cooke did work for the firm at Newport. All purchasing was done with hard money or bills of exchange, the latter, drawn on the French government, frequently first cashed by Wadsworth and Carter through Thomas Lloyd Halsey in Boston or John Chaloner in Phila­ delphia. Such bills eventually found their way back to France for collection through houses like that of Richard Harrison at Cadiz or Elkanah Watson at Nantes/a for whomever pur­ chased them from Wadsworth and Carter.. The greatest of their sub-contractors in flour was Daniel Parker of Watertown, Massachusetts, who supplied Wads­ worth as early as October, 1780.G4 Parker was especially im­ portant by reason of his later connection with William Duer and others in American army contracts, but the French needs gave him his start. By June, 1781, Parker was concerned with Morgan Lewis and Henry Cuyl~r of Albany in purchasing flour for Wadsworth, and Parker and Lewis filled at least one contract with him before the fifteenth of that morith. GI

52 Wadsworth and Carter French Army Accounts (I), passim. 53 E. g., R. W. Pettingill, ed., Letters from America, pp. 263, 264; such a draft is preserved on page ~ in vol. iv of the New York Public Library's six vol. illustrated ed. of G. C. Mason, Reminiscences of Newport. 54 Carter to Wadsworth, Oct. 23, 17&1. An Andrew Carente of Boston had a forage contract with them. Parker to Wadsworth, June 28, 1781, mentions a .. Doctor" Carente negotiating large sums in bills at Boston. Wadsworth Corresp. 55 From Parker, June 4. 1781, from Lewis, June IS, 1781, Wadsworth Corresp. Lewis had .. laid" himself out for the flour business and wanted more contracts such as the one he and Parker had had. See Chapter Five. JEREMIAH WADSWORTH AND HIS ASSOCIATES 93 In July William Duer was acting with Parker and Lewis in securing forage, work which was not completed to the satis­ faction of John Carter."· Trouble with forage supplies at Fish­ kill, New York, continued through July, Duer characteristi­ cally blaming Parker.1T There followed some hectic days in Hartford while Wadsworth was away. His clerk frantically wrote Royal Flint, August 27, "pray for Gods sake, bring ort what money you can"; rumors were afloat that Parker was secretly concerned with another contracting firm.5s In the fall of 1781 Wadsworth and Carter had to payout large sums of money on Parker and Lewis' account at Boston-such as 1144 crowns for flour, paid them by Peter Colt on September 10, and a French order of 10,000 dollars on Bowdoin and Read of Boston, taken up for Parker on October 24.5e By this time Wadsworth was in Virginia for the French, commanding all kinds of batteaux and supplies for use of the troops before Yorktown and improving his business acquaint­ ance with such Virginians as Samuel Beall of Williams­ burg, and John Fitzgerald and Charles Simms of Alexandria. In his work he received the cooperation of the Continental Quartermaster General, Timothy Pickering.eo After this campaign of 1781 was over Wadsworth and Carter continued to supply French needs (which Parker han­ dled, when Wadsworth was away from Hartford); but their new and equally important work in the year 1782 was under the so-called American Contract to furnish provisions to the Continental troops at West Point and neighboring posts from

56 Carter to Wadsworth, July 6, 1781, ibid. 67 Duer to Wadsworth, July 23, 1781, ibid. 68 Jeffery to Wadsworth, Sept. 6, 1781, ibid. The other firm was .. Noyse and Wheaton." 69 WadirWorth and Carter Waste Book, 1781, entries under dates given. also under Nov. 9- 60 On the business side oE the campaign, and the connection of Wadsworth and Carter with it, c/. Pickering's letters in Rec. Book no. &.3, pp. loS, 209, 210, 222, no. 127, p. 261, aDd doc. 28764, Div. of Old Recs. 94 BUSINESS ENTERPRISE: REVOLUTIONARY ERA October 15 to the end of the year. The contract was given them by Ezekiel Cornell of Rhode Island, by order of Robert Morris.61 The usual staff of sub-contractors was employed in the American work but with several new figures. Melancton Smith helped settle their accounts at Newburgh in April, 1783.02 When general accounts were settled in Boston and Philadelphia in March and April, John R. Livingston of New York and Boston appears along with Parker, Duer, and Mor­ gan as having done business for Wadsworth and Carter.os Miscellaneous facts about the business of this partnership may serve to close this account. Wadsworth's command of specie was sometimes great. On June 3, 1782, 39,000 crowns were received by the firm from its agent Chaloner in Philadel­ phia.04 Carter received from Robert Morris on March 5, 1783, half profit on 73,700 livres in bills of exchange bought at five shillings six pence and sold at six shillings three pence. The same day Carter recorded a profit of over one hundred per cent on goods received from Theodore Hopkins at L'Orient and sold to Daniel Parker. On June 6, 21,600 livres in bills were drawn on Le Conteulx and Company, a banking firm used by the French government, in favor of the contractor Comfort Sands, in exchange for Sands' "Navy Bills" for 28,100 livres.65 A variety of business firms had become in­ directly connected with Wadsworth and Carter: Wadsworth paid on May 10, 1783, a protested bill drawn by Otis and Henly on the Clothier General. On October 28, 1784, Wads­ worth was empowered by Nathaniel Gorham of Boston to draw on him for a sum owed Carter by an associate of Gor­ ham.60 61 Rec:. Book no. 64, p. 131, ibid. 62 Rec:. Book no. 72, p. 74. ibid.; Wadsworth and Carter Waste Book, 1783-1784. mentions M. Smith and Co., under May 10, 1783. 63 Waste Book, 1783-1784, passim. 64 Cash Book, 1781-1782- 65 Waste Book, 1783-1784- 66 Gorham to Wadsworth, Oct. 28, 1784, Wadsworth Corresp. ]ERE1UAH WADSWORTH AND HIS ASSOCIATES 95 Meantime, in July, 1783, Wadsworth had gone to France where he concluded a satisfactory financial settlement with the government. Though knowledge of the firm's profits is frag­ mentary, the settlement resulted in thousands of pounds being remitted to it by the bankers Le Conteulx, through a London house.·~ By the end of that year Wadsworth owned 41,600 specie dollars worth of stock in the newly founded Bank of North America in Philadelphia. It adds to an appreciation of his career to think of him in September, 1783, gazing upon one of the new wonders of the world, a balloon ascension in Paris, perhaps in company with that cosmopolitan business acquaintance of his, Elkanah 'Vatson, who also saw it. So far had talents and opportunities carried these strenuous pro­ vincials. The war-time careers of certain persons associated with Wadsworth - many of whom participated in the capitalist activities of the following decad~were almost as astonishing as his own. Young Oliver Phelps of Granville, Massachusetts, was one of these. Trader and storekeeper, he became a deputy commissary on the staff of General Champion in 1776, from which he was appointed Superintendent of Purchases for Massachusetts, as has been noted. As early as April, 1777, Phelps appears on \Vadsworth's account books as receiving flour, probably for the Massachusetts troops. In March, 1779, he delivered over one thousand barrels of provisions to the Quartermaster General," and he is repeatedly mentioned in 'Vadsworth's public records from that time on. Requesting

67Wadsworth and Carter French Army Accounts (I), UDder Sept. 2g, 178311. UDder July I, liS'}' is a DOtatiOll that "we" owe J. Wadsworth LAI42, and Carter (Omn::h) £,52,Szz. In the Waste Book, 176J-Ji&c. under June 50 liSs. the balanced account of the .. American Contract" has a Profit and Loss kltal of £12,608, being eleven-twelfths of the balance, ~fth credikd to Oarles Stewart. 68 Wadsworth to Jacob Cuyler, Mardi 16, 1779, Wadsworth Papers in New York Hist. Soc. Phelps would scan to have done this as a private individual, since his Massac:hnsetts public activities would hardly have in­ cluded such work. 96 BUSINESl) ENTERPRISE: REVOLUTIONARY ERA any private business which Wadsworth might have in Febru­ ary, 1780,00 he began to supply horses and cattle to the French in July of that year. He assured Wadsworth in September that he could furnish flour, and subsequently became one of the great private sub-contractors for Wadsworth and Carter, though he was still acting officially for Massachusetts in 1781,10 Receiving bills on France in payment, Phelps sent herds of cattle to the firm, his droves even passing through Philadel­ phia. 71 He was a partner in all this private work with Henry Champion and they continued to assist Wadsworth when the latter held the American army contract.12 Phelps' sister-in-law was the aunt of young James Watson, who likewise worked for Wadsworth.78 Phelps in turn had several important aides, among whom Israel Chapin of Hatfield was the most important; another was Timothy Edwards, also an aide of Schuyler's at Albany.7' Phelps wrote Chapin in July, 1782, that he had received funds from Robert Morris for beef; Phelps and Champion, with Chapin's help, contracted about the same time to supply Com­ fort Sands who was provisioning the American "Moving Army." 15 Continental payments were realized but slowly in September, and Phelps was afraid that Chapin could not get "Breck & Porter" to advance money on Morris' bills.18

69 Phelps to Wadsworth, Feb. 19, July 3, 10, 1780, Wadsworth Corresp. 70 Mentioned as SI\lch that year in doc. 035480, Div. of Old Recs. 71 Jeffery

77 Rec. Book no. 121, pp. 32S, 330, Div. of Old Recs. '18 Peter Colt to John B. Chun:h, Jan. 18, 1783, Wadsworth Corresp.; also Henry Champion 2nd to Wadsworth, Nov. 2, 1790, ibid. '19To Chapin, April IS, 10, 1783, O'Reilly Documents, V, nos. 62, 60, also no. SCJ. This _ after the preliminary peace articles had been signed. 80 Edward W. Day, OM ThoWMtd Years of Hubbard History (N. Y., 11195), pp. 341-344: P. H. Woodward, Harlfonl Bank, p. 47; agreement for the Charleston voyage in Greene Letters, Continental Congress Papers, vol. f73. I, no. 319- He declined the public service under Pickering, .. having it in my Power to do much better for myself in other business." 98 BUSINESS ENTERPRISE: REVOLUTIONARY ERA 1777 a Deputy Commissary General of Purchases for the Eastern Department of the Continental forces, in which capac­ ity he even visited Dutchess and Westchester counties, New York, and of course appeared on Wadsworth's public account books in connection with numerous expenditures.81 Flint, son of a merchant, began making saltpeter in Wethersfield in 1776; he acted as Hubbard's assistant the next year when they together purchased one hundred tons of flour for the service and handled quantities of Continental clothing; and in 1778 he became an Assistant Commissary General of the main army.82 As a purchasing commissary for Connecticut, Watson had become especially well acquainted with the purchase and distribution of pork and beef in New England. He also acted as Wadsworth's agent to investigate the illicit flour trade in New York in 1779; when he went to Fort Schuyler a year later Wadsworth introduced him to the command there as a " Gentleman of Strict honor & integrity." 81 Thus all these young men were intimate with Wadsworth in his Commissary Generalship in 1778 and 1779 and were wonderfully well prepared, on resigning their public offices, to assist him in his private contracting with the French. Their work then included, as already noted, sub-contracting or sell­ ing provisions on their own account to Wadsworth and Carter; but they were also agents of the partnership, directing a variety of its activities. In September, 1780, Hubbard and Wads­ worth even owned cattle together, and the former discussed a possible flour contract for Wadsworth with Oliver Phelps that month. In 1781 \Vadsworth paid out various sums on Hub­ bard's accounts with other persons, received flour from him,

81 See F. B. Dexter, 3 Yale Biographies, pp. 65, 66: Public Papers of George Clinton, IV, go. 821)ex;ter, op. cit., pp. 477, 478: Hinman, Conn., pp. 444. 449: Huntington Papers, pp. 385, 388, 3ff/. 83 DeJOter, op. cit., pp. 638, 639: Conn. Rev. Archives, index, .. Watson"; Public Papers of George Clinton, IV, 833, VI, 62. JEREMIAH WADSWORTH AND HIS ASSOCIATES 99 and gave him bills on France in payment.u The Colts, Peter and his nephew Elisha, not only sold goods to Wadsworth but the former also traveled for him with the French troops in 1781, handling foodstuffs.sO Flint was the Providence agent of Wadsworth and Carter much of the time. In July, 1781, however, he too traveled south with the French, cooperating with Colt; he was in II York," Virginia, in November of that year, purchasing forage and provisions.so Watson sold wheat and flour to Wadsworth and Carter, and in July, 1783, man~ aged the final sale of certain goods belonging to the firm, to Parker and Company, and to himself, all of which were in his possession when accounts were settled.ST Among minor figures similarly associated in procuring sup­ plies for the French were David Trumbull, the cattle man of Lebanon, Thomas Mumford, merchant of Groton, and the Huntingtons of Norwich. Several Hartford men who had such minor dealings with Wadsworth should be noticed also since they later followed his lead in many local enterprises. Among them were the merchants John Morgan, John Chene­ vard, and John Caldwell. Morgan, a young Yale graduate, also had a state supplies' account, in 1782 at least, though he had come to Hartford only the year before.ss Chenevard had rela­ tions with Wadsworth in the Continental commissariat and ran an account with the state from 1780 to 1782. In 1783 he supplied flour to Edward Hallam of New London, for a I 1 84 Hubbard to Wadsworth, Sept. 30, 1780, Wadsworth Corresp.; Wads- worth and Carter Waste Book, 1781, under July 24, Aug. 6, Nov. 9. 85 Colt to Wadsworth, JWte 26, 1781, Wadwor·th Corresp. Oct. 9, 1780. Colt wrote of his desire to get in on flour contracts which Wadsworth and Hubbard might secure. 86 Flint to Wadsworth, July J, Flint ·to Carter, Nov. 29, 1781, Wadsworth Corresp. 87Wadsworth and Carter Was-te Book, 1781, passim; also Waste Book. I783-1784, esp. under July 8, "1783. 88Conn. Rev. Archives, XXXV, 153egj Memorial Histor, of Hartford. I, 657, for his career. 100 BUSINESS ENTERPRISE: REVOLUTIONARY ERA voyage to Havana apparently on the state's account.SD Caldwell purchased for Connecticut and received many sums of hard money from Wadsworth and Carter, though his own purchas­ ing of corn in July, 1780, impeded the efforts of Wadsworth's agents.DO Several Bull brothers of Hartford dealt in state and Conti­ . nental supplies throughout the war, and repeatedly appear on Wadsworth's public and private accounts. One had the best tavern in town, and they owned a store in which public goods were frequently deposited. Ashbel Wells, friend of Noah Web­ ster, was in Virginia in January, 1782, on business for Wads­ worth. D1 Amasa Keyes had commissariat relations with him, as did Hezekiah Merrills. Several other Hartford men did transportation work for Wadsworth and Carter, while Nor­ man Butler sold them supplies and Daniel Olcott furnished them with horses. In fact, everyone of a business character in or near that place was connected with army supplies and all inevitably had some dealings with the French. contractors. It is not surprising, therefore, that Wadsworth had a united Hartford group behind him in some of his post-war enter­ prises; nor that 'he himself became a great post-war capitalist with national interests, like Robert Morris, from whom, how­ ever, he differed in business character, being of a less sanguine nature.

89 Wadsworth Cash Book, 1776-1779, passim; Conn. Rev. A~hives, XXXV, 153i, 233bc. 90 Conn. Rev. Archives, XVII, 135, 196, XXXIII, 50; Wadsworth Waste Book, 1781, passim; James Hooker to Wadsworth, July 7, 1780, Wadsworth Corresp. 91 Wells to Jeffery, Jan. 31, 1782, ibid. CHAPTER V HUDSON VALLEY BUSINESS THE parts played in the Revolution by the upper Hudson and the Connecticut River valleys were complementary. New York wheat, plus that from Pennsylvania and Maryland, and Connecticut and Massachusetts beef and forage were staples of the northern Continental armies. Considerable Connecticut produce was transported westwardly, and Hudson Valley cereals even reached Boston overland. Albany was the headquarters for the Hudson River com­ merce, as Hartford was for that of the Connecticut. This was especially true in the first half of the war j but even when the Continental camp was located at Newburgh, considerably to the south, Albany was still an important center for assembling white pine lumber from the lands along the Hudson and wheat from the lower Mohawk Valley. The important development of the Mohawk region came after the war j but as early as 1773 the Schenectady firm of Phyn and Ellice had gone into the domestic flour trade.1 It is not true that the war stimu­ lated wheat sales for all traders there-loss of the New York market at first checked it for some, as the day book of Glen and Sanders of Schenectady shows I-but there probably never was a surfeit of grain around Albany. John G. Van Schaick, a merchant of that place, had orders in 1777 for some ten thousand bushels, which he only partly filled. a Army demands made up for much of the loss in the normal grain market. Philip Schuyler was told in February, 1777, that farmers would only contract to sell a part of their wheat: II the remainder they are determined to Grind themselves and sell the Flour to

1 R. H. Fleming, .. Phyn, Ellice and Company," Toronto Uni'll. Con4ribs. '0 CollOdioN Econofllic.r, IV, 27. 2 It ends with 1777, however. On page 288 reference is made to one sale of ftour to a Continental commissary, Aug. 8, I77S. 3 To H. H. Kip, Jan. 22, 1788, in Van Schaick Letter Book. The orders were for HetW)' Van Vleck and Son. 101 102 BUSINESS ENTERPRISE: REVOLUTIONARY ERA the Army in the Spring when they expect the price will be much higher and they will have the advantage of tiding etc." 6 Army needs also helped out the lumber trade. The merchants who engaged in these two products were doubly fortunate, for on their trade Albany's future was to be built. Albany's business growth, certainly apparent by 1780,5 was due not only to its becoming a distributing point for great quantities of army goods and provisions, but also to more strictly private trade. Philip Schuyler complained in 1777 that "a set of monopolizers" in Albany County was purchasing such great quantities of wheat, peas, corn, and boards that a supply could not be obtained for public use. 8 Overland trade with Boston was carried on by private individuals as well as by' public commissaries. The Albany merchant John Tayler was in correspondence with Joseph Barrell of Boston in 1779, importing liquor, salt and other things into Albany via Spring­ field. Tayler also had an agent in Philadelphia.' Daniel Parker bought flour of a Schenectady merchant in 1782 and trans­ ported it to Boston via Great Barrington, sending back salt in payment.s The commercial opportunities available around Al­ bany are suggested by the career of young Albert Pawling, who resigned a commission in the army in 1779 to enter trade there.1i One of the Wendells of Albany found it desirable to go into the brewing business during the war.10 Jacob Vanden­ heyden was employed with many agents in 1778 around, Great Barrington, buying flour for the French fleet at Boston.11

4 From Daniel Hale, Feb. 8, 1777, Schuyler Papers. 5 Howell and Tenney, County of Albany, p. 609. 6 B. Lossing, Life of Schuyler, I, 162. 7 Taylor Corres,p., in Tayler-Cooper Papers, under Oct. 4, Nov. 17, 1779, et passim. John Blair was the Philadelphia agent. . 8 Parker to M. S. Ten Eyke, Aug. 24, 1782, Mi·sc. MS "p ", in New York Hist. Soc. 9 John Woodsworth, Reminiscences of Troy, pp. 53-55. 10 A,braham Evertse Wendell Day Book, 1760-1793, passim. 11 Public Papers of George Clinton, IV, 91. One "Keachum" furnished HUDSON VALLEY BUSINESS 103 Most of the private trade, however, was connected with the army supply business. From the latter, unfortunately, many merchants around Albany were at least theoretically barred because of their hostility for several years to the Continental cause. Many· merchants of importance in the pre-war period were not only refractory in the matter of swearing allegiance to the New York Provincial Congress, but also notably active in providing bail for other disaffected persons.12 In April, 1777, Richard Varick wrote that Toryism was predominant in Albany.lI By 1779, however, some of the merchants had changed their politics; moreover, it is debatable whether this early loyalist attitude. caused them any serious financial losses. John Stevenson did not take an oath of allegiance even in 1779, yet he was able to build his famous mansion in Albany during the war.u The public supply business at Albany was at first largely carried on by Philip Schuyler with a small group of Whig neighbors, then, after 1780, by groups of private contractors. While Schuyler was Major General from 1776 to 1779 he c~rtainly had a great deal to say about supplies for the North­ ern Department, to which he personally sold considerable lumber and some provisions. His military secretary, Richard Varick, and such other agents as Daniel Hale, John Lansing, Jr., and Philip Van Rensselaer, transacted much of this busi­ ness for him. The successive Continental supply agents around Albany-Walter Livingston, Morgan Lewis, and Hugh Hughes -had assistants such as Jacob Cuyler, John and Henry Glen, Teunis Van Vechten, and Christopher Yates who represented locally prominent and frequently related landed and commer- ftour from New York State to the French fleet off New England in 1781: Halsey to Wadsworth, July II, 1791. Wadsworth Corresp. CI. below for other examples. 12V. H. Paltsits, eel., Minutes 01 Commissione,.s 10,. Conspi,.acies (of Albany County). passim. 13 April [4. 1777. Schuyler Papers. 14 Ct. Joel Munsell. A_Is 01 Albany. I. 283 j Pape,.s 01 Clinton. III. 60S. 104 BUSINES~ ENTE~PRISE: REVOLUTIONARY ERA cial families. The Glens and Schuylers, for example, were connected through the wealthy trading Sanders family. Philip Schuyler and the father of Morgan Lewis, moreover, had supplied the British army in the French and Indian War, when John Tayler, also mentioned above, had got his start in busi­ ness by trading with the military forces on Lake George and at Oswego.15 The origins of this Revolutionary group can thus be traced to commercial activities in the provincial period. Schuyler's activity in making purchases for the Northern Army soon resulted in peculation rumors (probably started by his political enemies in New England), from which he was handsomely vindicated by Congress.16 Members of the Schuy­ ler group, however, like many Connecticut persons (as noted in the next chapter), were certainly eager to participate in the supply business. In the J oseph Trumbull-Walter Livingston commissariat· dispute in 177617 Schuyler warmly supported the latter, whose attitude toward the service is revealed in his letter to Schuyler of October 20, 1775: "Altho I was a Ser... vant to the Public yet I have a right to work by night for myself," providing the public should not suffer thereby.1& Jacob Cuyler, who bought flour for Livingston in 1775, wrote Schuyler that he would be glad to serve him" in any Business that may be done in Albany & in Particular the Business [purchasing flour] I have mentioned to you." He wanted Schuyler's recommendation for such work,19 The Livingston family readily participated in it. Philip Van Rensselaer owed his commission to purchase barreled pork to ;Deputy Commis­ sary Robert Livingston; Walter Livingston's cousins, John R.

15 On Tayler, c/. Gorham Worth, Random Recollections 0/ Albany, p. 6gn. 16 C/.• Burnett, Letters, II, 41, 4!Z, 357. 17 C/. Joseph Trumbull, " Joseph Trumbull," New London Co. Hist. Soc., Papers, II, 342: E. C. Burnett, "The Continental Congress and Agdcul·tural Supplies," Agricultural Hist., II, passim; see also Chapter Six. 18 Schuyler Papers. Livingston had worked for Schuyler prior to hi!> public appoil1ltment. 19 July 22, 1775, ibid. HUDSON VALLEY BUSINESS and Abraham, secured appointments to handle clothing and provisions for the New York troops.20 All this, of course, was done on a commission basis. Schuyler was ordered by Congress in April, 1776, to pur­ chase large quantities of army stores; 21 that year Walter Liv­ ingston paid to him large sums of public money for purchases made through Richard Varick, who bought in turn from Wil­ liam Duer, James Caldwell, Daniel Hale John Graham, Schuyler's Saratoga agent, was grind­ ing 300 barrels of "Contenental Flower" in March, 1777; he had some more which he sold to "good advantage." On his own account Graham apparently also engaged in suUering.

II Sorry to trouble your Excellency Concerning a Bearth at Forte gorge," he wrote Schuyler, "but as I have your per­ mission I made Bold to let you no that I can Gete none ex-

20 Munsell, A'iflGls of Alba1f(V, VII, 218; E. P. Livingston, The Livingsto"" of LivingstOfi Manor, p. 536. 21 Jourttals of Continental Congress, IV, 304- 22 Military Accounts, 1176-1782, Schuyler Papers; Duer to Schuyler, Feb. I, 1776, Schuyler Military Papers, DO. 568. 23 Military Accounts, 1776-1782. 241bitl. 106 BUSINESS ENTERPRISE: REVOLUTIONARY ERA cepting an old Barrck room at the East of J oneses house & that was So open that it took the man who Sels for me a whole week to Repreveit before he Derst trust his bizness in it." 25 After December, 1776, John Hansen was in charge of the sale of public Indian goods for Schuyler, at Fort Schuyler; some of these were purchased from John Tayler at Albany.26 Between April and September, 1776, Schuyler sold Stephen Moylan, Quartermaster General, £II46 worth of plank and boards. By the end of that year the public owed him £4797 for use of his teams, lumber, and provisions. In August, 1777, Morgan Lewis owed Schuyler £2807 for such- supplies, and about the same amount in 1778. Lewis hired the General's saw mills in 1780 for 215 days at five pounds a day, and was indebted for the sawing of logs at twelve pounds a hundred. In December, 1781, 800 of Schuyler's logs were used by the Deputy Quartermaster at Saratoga.21 Schuyler also furnished Robert Morris, on the latter's urgent plea, with flour for the main army in 1781, Morris later complaining that the five pe'r cent commission charged was double what he was accustomed to pay.28 Hugh Hughes, who superseded Lewis in 1780, con­ tinued to rely upon Schuyler's judgment and his mills. If Schuyler" thinks it eligible that his Mill should saw Plank," it was to be done.- Together with John Tayler, Henry Glen and others he signed a subscription list in January, 1781, enabling the state to purchase 10,000 bushels of wheat on the guarantee of their signatures. so Schuyler was unfortunate in being under­ bid in December, 1781, for a contract to furnish West Point

25 Graham to SchUYler, Much 4, 1777. 26 Hansen to Schuyler, Dee. 30, 1776, Feb. I, 1m i Tayler Account Book,_ under April 14, 1m. 27 Military Accounts, 1776-1782. 28 Morris to Schuyler, Sept. 14, 1781.

29 To Nicholas Quackenbush, July 2, 17'81, Hughes Letter Books, II Letters to Albany." 30 Misc. MS "New York," no. 73, in New York Hist. Soc. HUDSON VALLEY BUSINESS 107 with supplies; 11 but in April, 1782, he contracted with Wil­ liam Duer for the latter to furnish army posts in northern New York"· So he continued to be closely tied up with army needs in one way or another, cooperating with many persons who had business relations with him in post-war years. Schuyler's financial position is indicated by his ability to pay Jacob Cuyler on September 24, 1781, £1950 in specie-­ in II half Joes," English and French Guineas, Spanish Pistoles and Moidores." It is significant, too, that both Schuyler and Cuyler were able in 1778 and 1780 respectively to order goods from New York City for family use"· Nor is it hard to understand, in the light of Schuyler's complex work, why he was the chairman of a meeting of public creditors of the United States in Albany, September 30, 1782; nor why he and several of his associates in public work were on a committee to cor­ respond with similar groups elsewhere to agitate for a national meeting to rectify the public credit situation.85 Among other persons who sold supplies to the Northern Army was Haym Salomon of New York who purchased stores II to go Suttling to Lake George" in 1776, according to Leonard Gansevoort who gave him an endorsement to Schuyler." Jacob Vanderheyden had supplied merchandise to Montgomery's Canadian expedition the previous year.

31 Morris to Schuyler, Dec. 3, 1781, Schuyler Papers. 32 Morris to Hale, Aug. 13, 1782, Financier's Letter Books, D, p. 1'12; doc. 29782, Div. of Old Recs., witnessed by Alexander Hamilton and Walter Livingston, the latter attorney for Duel'. Schuyler had a bill of £240 on Duer, July 23, 1782, for value f.umished: Accounts-Personal, 1780-1782, Schuyler Papers. 33 Accounts.-Personal, 1780-1782. Oct. 12, 1781, he loaned Cuyler 800 dollars in specie, payable on demand; he also paid for other personal things at this time in specie. MFrom Gabriel Ludlow, New York, Jan.. 6, 1778. Schuyler Papers; Jacob to Henry Cuyler, April 14. 1780, Papers of Clinton, V, 617; Schuyler' sent thirty .. half Joes" by Major Adand for his purchases. 35 A_Is of Albany, I, 282. They emphasized the sufferings of those who had been creditors to the U. S. prior to 1178. 36 Gansevoort to Schuyler, June 12, 1i76, Schuyler Papers. 108 BUSINESS' ENTERPRISE: REVOLUTIONARY ERA Goods for New York regiments, for Lewis, for Schuyler, and for the Commissary General of Clothing, also frequently came from John Tayler in 1776 and 1777.87 Saw mills of the Fon­ das, Van Antwerps, and OtHers, near Albany, furnished planks to Hugh Hughes in 1781, as did Schermerhorn's and Yates' mitIs near Schenectady in 1780-1782. The former loyalist merchant, Cornelius Glen, offered to sell three tons of "Ger­ man Steel" to the public in 1781, and flour continued to be collected by various commissaries around Schenectady.ss In 1781, however, most Continental supplies began to be fur­ nished by contractors with the Financier for set sums and definite periods, beginning in December when Melancton Smith and Jonathan Lawrence agreed to supply all the army posts north of Poughkeepsie with wood, forage, and provisions. so Sub-contractors worked in turn under such men, as Henry Glen, for example, sought to do. 40 New York State also con­ tinued to purchase great quantities of provisions with which to meet the quota of supplies requisitioned by Congress, but' there is no record of the' persons furnishing them. These war-time activities of Albany merchants had impor­ tant local effects, but the private contracting for army supplies of William Duer and his associates eventually had even inter­ national repercussions. To the work of these men who oper­ ated during the war largely in the Hudson Valley, we next turn our attefltion. Duer's career as business entrepreneur in general and as army contractor in particular (and army contracting continued to support all his later schemes) ,was presaged by his pre-war attempts to secure British army supply business!l It is im- 37 Tayler AccounJt Book, passim. 3S Hughes Letter Books: to Peter Yates, June 19, 1;81, "Letters Promiscuous"; from Nicholas Quackenbush, Jan. 31, Feb. 14, 171h, April • 27, 1782, "Letters to Albany." 39 Pickering to Hughes, Dec. 28, 1781, "Letters to Albany." 40 Glen to Parker, Sept. 2, 1;83. Misc. MS .. G ", in New York Hist. Soc. 41 There are references to his pre-war career in R. H. Fleming, .. Phyn. Ellice and Company," lac. cit., pp. 20, 21. HUDSON VALLEY BUSINESS 109 portant that Philip Schuyler was one of his early American acquaint~nces in the upper Hudson lumber and milling busi­ ness!· Duer also had pre-war connections with that myster­ ious American, Stephen Sayre, a banker in London in 1773, who was of some importance in Revolutionary diplomacy'" Soon after arriving in America, Duer demonstrated a re­ markable ability to adapt himself to the economic and political trends in his new environment. Eventually he contributed a fillip to American business methods which dismayed some who cherished traditional colonial practices. "He was," wrote the caustic Alexander Graydon, "of a dashing cast, a man of the world, confident and animated, with a promptitude in display­ ing the wit and talents he possessed, with very little regard to the decorum, which either time or place imposed"; one who would" play the bashaw in prosperity." 44 Of such stuff was the leading American "undertaker" of the age. It is unnecessary to enlarge upon the account of Duer's political career except to note. these interesting facts. In Con­ gress he earned the gratitude of Elias Boudinot in 1778 by securing for the latter repayment of certain sums expended on American prisoners, which prompted Boudinot to term him .. a Man of much feeling." fa He was accused of being deep in a "plot " to support Silas Deane, when that gentleman was causing so much heart-burning in Congress.48 He was in­ directly associated by dark insinuations in the Philadelphia press with William Constable and Benedict Arnold in the

42 CI. J. S. Davis, Essays in the Earlier History 01 American Corpor­ Dtions, I, 114- 43 Duer to Sayre, June 24, 1773, Duer Corresp. 44 Graydon, Memoirs, pp. 302, 303. Davis, Essays, I, .. William Duer, Entrepreneur," esp. pp. 334. 335 is a brilliant critical account largely of Duer's post-war career. 45 Burnett, Letters, II, 358. It should be borne in mind that questions about the use of public funds were an important factor in Congressional politics; 'I. Cha9ter Nine. 46 By R. H. Lee, ibid., III, 352. Duer also helped to unhorse the .. Conway Cabal" that year. IIO BUSINESS ,ENTERPRISE: REVOLUTIONARY ERA Lovely Nancy smuggling affair of 1779, which had a passing influence on both Congressional and Pennsylvania politics.~T Duer's business interests developed from the outbreak of war when in 1775 and 1776 he furnished the army with plank for bridges, and masts and spars for Continental frigates on the Hudson. In the latter year he also procured teams, pow­ der, and supplies for the New York troops.48 The Continental Quartermaster General Thomas Mifflin requested him in Oc­ tober, 1776, to purchase boards, bricks, and lime, and to co­ operate with one of the Livingstons in securing 30,000 bushels of grain for which, apparently, Duer "paid himself" 15,000 dollars!O Duer's agents purchased for Mifflin in New York while those of Jeremiah Wadsworth did the same in Connec­ ticut. On October 26, 1776, Mifflin assured Duer that" as I now depend on you for all my Supplies of Grain, Hay & Straw I cannot, nor do I think it right to, apply to any other Gentle­ man in this colony for the same Articles"; and he endorsed an order for 30,000 dollars in Duer's favor. GO In 1777 Duer' erected barracks for 2000 men at Peekskill, on Mifflin's or­ ders.Gl Duer's business activities fell off in 1778, and he did little more the following year except to make some sort of an agree­ ment with Robert Morris on May I I which was never carried out. 52 By January, 1780, however, his interests had broadened, and he was seeking a French navy mast contract with Silas Deane, James Wilson, and with Deane's commercial friend.

47 PeMl(l. Packet, April 3, 1779, referred to in Burnett, Lette,.s, IV, 153 n.; cf. also, il7id., IV, 134n., and proceeding9 of Arnold's court martial as to details of the affair. 48 Davis, Essays, I, lIS, II 6. 49 Mifflin to Duer, Oct. 19, 20, 1776, Duer Papers, I; Rec. Book no. 98. p. 7, Div. of Old Recs. 50 Duer Papers, I. 51 Davis, Essays, I, 1I6. 52 Morris to Duer, Jan. 15, 1785, Duer Papers, II, Morris asking him t() take their names from the 1779 agreement and to consider it canceled. HUDSON VALLEY BUSINESS III the Frenchman de Chaumont. Ga As early as March, Duer was receiving his business mail in care of Deputy Quartermaster Morgan Lewis at Albany: as, for example, correspondence with Barnabas Deane about possibilities of a "contract" and the purchase of bills of exchange." He also made a commer­ cial agreement, probably in July, 1780, with John R. Living­ ston, paying the latter a "first Sum" in August for the purpose of "laying out in Boston" in part for wines and linens.la He carried on a varied mercantile correspondence that year with Peter Whitesides and Company of Philadelphia. Duer's relations with Morris soon became more extensive. How good it was to be out of public service, he wrote to that great merchant on August 27, 1780. He expressed regret that Morris thought that political considerations made "the Prose­ cution of our proposed plan at this time Hazardous. . . ." Duer continued: Though I am anxious to commence the Enterprise before the Conclusion of the war (being Sensible that the Profits of one Suc­ cessful Voyage would lay a sufficient Foundation for the Prosecution of Extensive Commerce in Time of Peace) yet I am apt to believe it will be Prudential to see what aspect the affairs of our Friends will wear at the Oose of the Year in the Quarter our Eyes are turned to before we commence so Expensive an outfit. . . . In the mean Time I find myself justified by Experience in declaring that a judicious Purchase of forfeited Lands on the Improved Parts of this State is by far the most Elgible mode I know of Improving a Fortune in a Secure way. In consequence of our former conver­ sations and of the Renewal of the idea in your Letter, I have lately attended to the sale of some improved Farms. . . . .

53 Davis, Essays, I, 119- It was probably UDSlKlCessful in this fonn, though Duer got out masts for the French through John Holker in Ii'SI (c/. below. also Chapter Six), and Morris wrote Duer, Sept. 17, 1780 (Duer Papers, I). that Holker had gone with Wilson to his .. Mast-Territory." Duer wrote Holker, Jan. 23, 17111 (Mise. MS .. D", New York Hist. Soc.), about payments for a .. Cargo of Masts." MDtOlle Pa;e~s (Conn. Hist. Soc. Coil.), p. ISO. M Livingston to Duer. Aug. 2, 1780, Duer Papers, I. II2 BUSINESS ENTERPRISE: REVOLUTIONARY ERA He had bought two farms on the Beverly Robinson estate for Morris, and one for himself. The price was a little high, since Duer characteristically arrived at the sale late and had to re­ purchase them; but they were nevertheless a fine bargain; for, he argued, "money is more than 22 for one in which you pay." Morris stood to get four per cent on his investment in rent, and to make two hundred per cent profit when he chose to sell. Morris was not too enthusiastic about this sort of business at the time and had given no positive orders to purchase, but Duer had had "an Itch" to buy.66 The purchase money was finally sent by Morris on September 17, but he had a hard time securing it. Duer was to repay the sum advanced in in­ terest bills because Morris, buying bills on France as fast as possible, found them difficult to procure since John Holker, the French Consul, kept the price as high as possible.G1 Morris also wrote Duer in September of several commer­ cial schemes which might afford a profit. Duer could open a store at Albany and make a good deal of money by purchasing goods in Philadelphia and New England to sell in the North country. Duer's "plan" had, in the meantime, been communi­ cated by Morris to John Holker, who" likes it very well, but your demand of 71 the Profitts and 34 advance of Capital he thinks too much." This probably had to do with the mast contract. Then followed this singular statement, doubtlessly referring to the abandoned commercial scheme of August,' and expressed in the delightfully peculiar fashion of the times:

I am pretty clear it will not do to pursue our plan to Ch - a [China] at present, and altho' Cabbage planting is the most Noble & best of all possible Occupations, one that will make the pot boil if well followed, yet I fear it will not afford a pot boiling so often, as you and I have been taught to think necessary and therefore

56 Morris Corresp., in Library of Congress; Morris would have to ad­ vance money even for Duer's farm, Duer having no funds of his own, a'pparently. 57 Morris to Duer, Sept. 17, 1780, Duer Papers, I. HUDSON VALLEY BUSINESS 113 we must try to find Beef to our Cabbage by some other means, but never forgetting or neglecting to raise the Cabbages.58 The month of October, 1780, found Duer, with inexhaus­ tible fertility of suggestion, urging Morris to join him and Schuyler in seeking a flour contract with the French fleet and army. There was a big wheat crop in the Hudson Valley which would provide a surplus for milling. Since there was danger of the .. Eastern states" doing this French work, there was no time to lose. The Marquis de LaFayette had been ap­ proached in a "confidential manner" and had assured Duer that the French officers had no confidence in the ability of the states to supply them. The Marquis insisted that Schuyler be a party to the contract because of his well known abilities in transportation. (Schuyler told Duer that the contract had been pressed on him while a member of the Congressional Committee at Camp, for which reason he had refused it.) So Schuyler and John Holker should be joined with them. The four would make a total profit of £20,000 .. York" currency on approximately 20,000 barrels of flour to be sold the French in the coming year. French bills would have to be accepted at two-thirds of par with specie, for the French officers were complaining of the great loss in discount.ls Of course this scheme never matured, since Wadsworth and Carter had better contacts and were already doing business with the French. On closer examination it appears as wishful thinking by Duer, for Schuyler's name was used freely and probably without his sanction. We may leave Duer for a moment to turn to the activities of his future principal partner in the American arn~y business,

Mlbid. 69 Duer to Morris, Oct. 1:2, 1780, Morris Corresp. in Library of Congl"ess. Morris to Oller, Dec. :21, 1780, Duer Papers, I, says -that .. Bank" funds are too exhausted for any .. New OODtncts," and advises him to bold his goods and try to sell flour to the French. Holker to Duer, Dec. 23, 1781, Duer Corresp., orders him to send flour to Hartford, to be forwarded to Mr. (Thomas?) Russel1 at Boston, doubtless also for the French. 114 BUSINES& ENTERPRISE: REVOLUTIONARY ERA bearing in mind that the foregoing relations prepared the way for Duer's army contracting with Morris in 1782 and for the epoch-making voyage of the Empress of China in 1784. The partner referred to was Daniel Parker of Watertown, Massachusetts, whom we have noted as seeking French con­ tracts in August, 1780, and as supplying Wadsworth and Carter from the time they secured those contracts for them­ selves. His brother, Dr. Benjamin Parker, sold bread to the Continental troops as early as 1777. Daniel Parker's back­ ground is largely unknown,80 though his international impor­ tance is common knowledge. One of his letter books is our principal source concerning his business activities before he became formally involved with Duer and Lewis Morgan in June, 1781. Like Wadsworth and Carter, with whom most of his busi­ ness in 1781 was done, Parker employed numerous agents such as George Merrills at Hartford, Zenos Parsons at Springfield, Cornelius Glen at Albany, and Joseph Ketchum at Red Hook on the Hudson. These men secured flour and forage for him. "In April, 1781, Parker wrote Merrills of his engagement to supply 1000 barrels of flour at Newport and the same amount at Hartford for Wadsworth; some of this Morgan Lewis was to gather at Albany.81 Wadsworth also wanted Parker and Lewis to contract to supply all the forage (corn and oats) they could gather, in May; but there was danger of losing Wads-

60 There are severa! young Daniel Parkers with Boston mercantile rela­ tives during the Revolution mentioned in New Eng. Hist. Genealog. Soc. Reg., VI, 376. 61 Parker Letter Book, April S, 1781, erroneously dated 1780. Cornelius Cuyler at Albany, Joseph Kingman at Canaan, Conn., and Moses Cturch at Springfield also did work for Parker. He sold flour to Stephen Higginson and Samuel Breck of Boston, this year. Some of this he secured through John Welsh of Bcmon, who in tum secured it from Joseph Ketchum. On one occasion, KetdJum forwarded flour by John Caldwell of Hartford. Russell in Boston also bad something to say about such deliveries: ct. Welsh to Thurston and Jenkins (of Providence), Dec. 31, 1781, and Welsh to Ketchum, July 12, 1782, Welsh Letter Book. HUDSON VALLEY BUSINESS lIS worth's flour business then because J. Cuyler was" poisoning or Schuyler's mind against Parker and Lewis, for his own ends.u Meanwhile, Duer had been looking around for any business he could pick up. On June IS he wrote his father-in-law, Wil­ liam Alexander, Major General in command of the Northern. Department, " If you can with Propriety bring it about, that I may make the Purchases of what Articles they may need in: this State, you will oblige me Extremely. . . ." Duer desired a hint to General Washington and to the Quartermaster Gen­ eral of the French army in the matter, acknowledging it to be a delicate subject.e8 Such, indeed, were the interests of the Duer-Parker-Lewis concern, papers for which were agreed to on June 21, which was the forerunner of the firm known as Daniel Parker and Company, or Duer and Parker. The orig­ inal agreement was that Duer, Parker, and Lewis were to be jointly concerned in. the sale and purchase of provisions in the counties of Ulster-Orange and Dutchess, New York, except in flour contracts for the French troops 'in which Duer was to have no part. Parker was to purchase supplies and handle bills of exchange, Duer to make contracts, and Lewis, apparently, to be the distributing field man. e, The activities of the firm were legion. Its important wor~ in 1781 was in sub-contracting forage for Wadsworth ancf Carter," and in this Duer was fully concerned. Within a wee~ of the signing of the agreement he was getting out 2000' bushels of forage for John Carter in the aforesaid counties,. where prices rose rapidly on rumors of the French needs"·' Joseph Ketchum purchased forage for the firm around Red!

62 Parker to Lewis, May 14. Parker to MerriIls, April S, Parker to Carter, April 2S, 29, 1;'81, Parker Letter Book. 63 Duer to Sterling, June IS, 1781, Alexander Papers, V, in New York Hilt. Soc. M Agreement in Duer Corresp., Box VII, folder 6. 6S See Chapter Four. 66 Parker to Lewis, June 26, 1781, Parker Letter Book; Duer to Wads­ worth, JIJIIe 24. 1781, Misc. MS .. D", in New York Hist. Soc. II6 BUSINESS' ENTERPRISE: REVOLUTIONARY ERA Hook, but this was sold directly to the French i Parker wrote Duer that he had informed Carter of "our connects" in French army supplies. 8T Parker," however, continued to sell bills for Wadsworth and Carter in Boston, and Duer continued other private work, such as getting out masts from the Con­ necticut Valley, which were collected at Wethersfield for John Holker and the French fleet.8s The most notable event of the summer of 1781 was the in­ troduction of Holker into the Parker-Duer group. On August 2S he wrote Duer to get William Turnbull and everyone else together to come to an understanding about Parker. Holker was henceforth a key man for the associates in the French business i as French Consul at Philadelphia, he wined and dined military officials on occasion. The decision of Robert Morris, Superintendent of Finance, to supply the Continental troops on a contract basis, gave the firm new opportunities in the fall of 1781. Back in July, Duer had sounded out Morris on this, having heard that Schuyler had some flour-supplying business, assuring Morris that he (Duer) was not engaged in doing this for the French (which technically was true), and throwing out an unctuous assurance about" bearing a Part in the Toils of my Friend." 89 Though Morris was never completely taken in by Duer's pro­ fessions, on Ootober 16 he empowered him to supply flour to General Heath,10 and thereby began a series of government engagements which Duer enjoyed almost continuously until his failure in 1792. On November 6 Morris accepted Duer's offer of 1000 barrels of beef for the troops on the Hudson, and encouraged him to bid on the West Point contract. Duer

67 Parker to Duer, June 26, 1781, Parker Letter Book. The French anny seems to have depended entirely on Duer and Parker for forage at this time. 68 Holker to Duer, July 19, 1781, Duer Corresp., objecting to high prices Duer wanted for them. 69 Duer to Morris, July II, 1781, Morris Corresp., in Library of Congress. 70 Morris to Duer, Oct. 16, 1781, Duer Papers, I; Financier's Letter Book5, B, p. 46. HUDSON VALLEY BUSINESS II? did SO, but was underbid by Comfort Sands.71 However, Duer and Parker secured a contract to ration the main army, begin­ ning January I, 1782; and in February Duer was awarded the Northern Posts contract, acting through his attorney, Wal­ ter Livingston, and his Philadelphia agent, William Turnbull.,a All of these contracts probably went to the associates as a group. Parker had been anxiously watching the American army trading prospects for some time.18 Possibly it was at the beginning of this year, 1782, that the firm of Daniel Parker and Company was re-organized; then, at least, John Holker secured a third part of Duer's .. Contract for the posts north of Poughkeepsie" and went £5000 security for Duer's fulfill­ ment. It was the first of a number of mistakes by Holker which eventually involved him over £53,000 largely on the company's account, according to his version of the story.'·1 The partners henceforth seem to have been Holker, Duer, Parker, and possibly Royal Flint and Melancton Smith. These, at least, tried to settle with Holker in the spring of 1784. Before the firm was dissolved, Archibald Stewart (Duer's old clerk for whom he had requested from Schuyler a forage-supplying position in the Northern Department in 1777), William Turn­ bull of Philadelphia,.and Walter Livingston of New York had become closely associated with it; so had creditors of Holker, such as Thomas Russell and Samuel Breck of Boston, young Nalbro Frazier and Thomas FitzSimons of Philadelphia. TG

n Financier'. Letter Books, B, pp. 102, 202. 12 Rec. Book no. 69, p. 36, Div. of Old Recs.; Fiitancier's Letter Books, B, P.436. 73 Parker to Ducr, Nov. 22, 1781, Parker Letter Book. '74 Cf. the long review of Holker's complaints agamst Duer, in his letter to Ducr, Dec. 18, 1789, Ducr CorreSlp. Duer to Holker, March 19, 1782, ibid., thanks him for going securny for the contract without solicitation. '75 Holker to Duer, June 4. 17S.c. FitaSimons to Duer, June 2, 1784, Duer Corresp.; d. also, Davis, Essays, I, 121 n. In the Grata CoI1., is a letter ~rom FitaSimona to Melancton Smith, Aug. 12, 1786, on affairs of Parker and Company. These were bewildering, to say the least, especially in con­ ocction with the voyage of the Empress of ChitIQ. u8 BUSINESS ENTERPRISE: REVOLUTIONARY ERA It should be noted also that Ouer bought four shares of Walter Livingston's thirteen-twenty-fourths interest in the Moving Army Contract of 1782, held by Sands, Livingston and Company; 76 and Parker apparently did something simi­ lar-he was the pvingston company's agent for collecting money in New England, and its eastern supply factor.77 In .other words, there was more cooperation than competition be­ tween the contractors for army business. True, the two firms .competed for foodstuffs at times; but in June, 1782, when lthere was "a combination, and a pretty powerful one to raise

76 Holker to Duer, Mar. 23, I78/>, Dec. 18, 1789, Duer Corresp. Holker had an interest in Duer's interest in Livingston's interest in Sand's conotract! 77 ct. Parker to Sands, Livingston and Co., Sepot. 7, 1781, Oct. 10, 1782, Parker Letter Book. Holker to Duer, Dec. 17, 1785, Duer Corresp., de­ mands to know the names of all copartners under the name of Sands, ;Livingston and Co. 78 Duer to Parker, June 9, 1782, Duer Corresp. On Feb. 7, 1782, Morris himself writes Duer (Duer Papers, I) that he urged Livingston to join Duer in the contraot for the po5'ts north of Poughkeepsie. 79 Rec. Book no. 121, p. 269, Div. of Old Recs.; Peter Colt to Wadsworth, Jan. I, 1785, Wad5worth Corresp. 80 Papers 0/ Clinton, VI, 459; Livingston to Duer, June 17, 178.2, Duer Papers, I. HUDSON VALLEY BUSINESS 119 ton, and iron plates for the same from Samuel Ogden of the New Jersey furnaces. This distillery was an ambitious under­ taking, apparently designed to put an end to the firm's de­ pendence on the overland rum trade with Boston; part of the liquor was to be sold Sands and Company for army use. It consisted of at least four stills and was managed by Schuyler's old storekeeper, Daniel Hale, who had previously represented Duer on business. Holker paid for the entire plant, thus investing £4500 in .. Certificates and Locations" (with which New York paid its soldiers).81 The near end of the war and the re-opening of the seacoast trade destroyed any possible success of the plan. How well Parker and Company made out in their various contracts in 1782 is debatable. Morris wrote of Duer's losses, in August, but in October Parker admitted profits. Parker, moreover, was sufficiently satisfied to express his desire to keep up the business with Duer in a "Contract for '83." 82 Yet certain signs pointing to disaster may be seen in Parker's activities that year. He was constantly pressed to meet credi­ tors' claims; and his mercantile ambitions led him into foreign trade - together with Barrell, Greenleaf, and several lesser Boston merchants-at the very end of the war when there was the least hope of success. As early as October, 1781, he sent salt and wine to Virginia to be exchanged for tobacco to be forwarded to Butler and Matthews at Cadiz; but goods received back, from Ingraham and Bromfield of Amsterdam, he had to sell on very easy terms a year later. Whereas he sent abroad but half a sloop's cargo of tobacco in October, 1781, a year later he had ideas of shipping 1400 hogsheads on a large ship. Parker came to look upon the contracting business, even anticipating future contracts, simply as a means to the

81 Duer to Holker, Dec. II, 1781 (also marked 1782), Duer Corresp. Parker bad written Cornelius Glen, July II, 1781 (Parker Letter Book), about carrying out a distillery establishment. 82 Parker to Duer, Oct. 26, 1782, Duer Corresp. 120 BUSINESS ENTERPRISE: REVOLUTIONARY ERA end of financing his foreign cargoes.88 By the beginning of 1783 he began to close his Dutch accounts, but only to make connections with a French house, ~e Conteulx and Company, probably an error in judgment. Nevertheless, in November, 1782, army contracts for the next year were secured by Daniel Parker and Company and quantities of supplies continued to come under its control. £1500 of goods were purchased of John R. Livingston on the Hudson. Parker shipped European goods from Boston to Albany, in care of Cornelius Glen, for Duer.84 A great meet­ ing of beef contractors was called at Springfield around De­ cember I, when Phelps, the Champions, David Trumbull and others considered handling a million pounds of beef.85 Parker now even feLt powerful enough to dominate the Boston bill market, to force the Treasurer of the French fleet to recognize his depreciation of bills from twenty to thirty-three per cent discount: "the very great funds now at my Command will oblige him to comply with my Request-as I have now Sucn Sums at Command as to furnish him with 100,000 Dollars Cash." When he secured the French bills he planned to raise them ten per cent within fifteen days and thus reap a great profit; but this was to offset earlier losses: "it is almost a Certainty that I shall raise them to the rate at which we re­ ceived them of Mr. Morris in a very Short Time." 86 He must have had agents in many places to cooperate in this, such as Glen at Albany to whom he sent notices of exchange rates to be his guide in local dealings.87

83 To Ingraham and Bromfield, Nov. 22, 1782, ef passim, Parker Letter Book. He was, however, worried about the effects of peace on business. 84 Parker to Duer, Nov. 25, 1782, Duer Corresp. 851bid. .. Gore" would receive flour for the" garrison." 86 Ibid., and another letter to (Duer), undated, around Dec. I, in Parker Letter Book. II Gore" should not worry. 87 Parker to Cornelius Glen, Nov. 14, 1782, Parker Letter Book; he has not heard from Schuyler about the flour he disposed of. HUDSON VALLEY BUSINESS 121 The contract for 1783 was beset with difficulties not easily surmounted. Large sums were required as security by Morris since certain contracts had been consolidated. This necessi­ tated Duer and Parker getting persons to underwrite their contracts for 150,000 dollars.ss Parker had only 10,000 dollars of his own to put up and needed security for 20,000 dollars more on his account. He wrote Duer on November 3 that the man he was depending on had to see someone in Portsmouth before he would back him. This may have been Joseph Barrell. Duer had a draft on Thomas Russell to assist him in raising his share.ss Moreover, Parker and Company had to battle against, or compete with, speculators in the currencies who, for example, by manipulating Massachusetts notes had made money dear the previous September.so Parker had similar financial difficulty when trying to collect from Massachusetts for Sands, Livingston and Company: "I saw 5 per Cent pr Month offered to a Publick Broker yesterday to discount a note of 1000 Dolls payable on the IS Jany this amounted to 15 p cent discount, when a Collector can avail himself of such an advantage, no Cash is to be expected from him ...." More­ over, there was uncertainty about the value of Morris' notes on John Swanwick, which made merchants uneasy.Sl The coming of peace opened opportunities which tempor­ arily staved off the company's dissolution. The British forces in New York offered a speculation in army supplies. Parker wrote Duer and Royal Flint on March 26, 1783, from New York City, "Immediately on the arrival of the Packet at Phila­ delphia with the accounts of peace I applied to Mr. Morris & GenI Lincoln for recommendation to Sir Guy Carlton, as a Contractor for the British army. They gave me such Letters as were necessary.... " He was sure of a contract, and .. Judge Smith" should come to New York" for his sake & 88 Parker to (]. Wadsw'?rth?), and Parker to Duer, Nov. 3, 1782, ibid. 89 Duer to Parker. Nov. 14. 1782. Duer Corresp. 90 Parker to Duer. Sept. 18, 1782, Parker Letter Book. 91 Parker to Sands. Livingston and Co., Oct. 10. 1782. ibid. 122 BUSINESS ENTERPRISE: REVOLUTIONARY ERA ours." Parker was sending 40,000 dollars in Morris' notes to be invested in flour as speedily as possible.D2 He succeeded in getting appointed as one of the United States commissioners on the evacuation of the city, together with William S. Smith and Egbert Benson, and secured the contract. Early in June, the British Commissary General empowered Parker' to furnish 20,000 barrels of flour in N ew York and Nova Scotia, a smaller contract being given to the New York loyalist firm of Murray, Sansom and Company. os Parker may have secured other contracts later. In September he made an agreement with Nalbro Frazier of Philadelphia, whereby the latter agreed to buy £3000 Sterling "in Government bills at 2 p% above parr to be paid in this city." Parker probably worked in New York with an Englishman, Thomas Dickason of London. The Philadelphia agent to receive Frazier's money was to have been John Ross, the Scotch friend of Morris, but he wisely refused to become implicated.D4 The affairs of Daniel Parker and Company had by this time resolved into a series of wrangles, though the company was aotive in trade until December, 1783. Parker fled the country in 1784, his future necessarily being abroad because of the number of outraged creditors in America. His objective also was to secure commercial credit in England or Holland for the purpose of financing an international tobacco trade or a public securities speculation; his good friend Andrew Craigie was to be his American representative. As the basis for Euro­ pean speculations, Parker had public money which James Lovell, Massachusetts revenue collector for Robert Morris, unwisely permitted him to get hold of. He also had about 70Q() specie dollars worth of public securities (of some 40,000 dollars face value) half of which were purchased with cash furnished him

92 Duer Papers, I. 93 Historical Manuscripts Commission, Report on American Manuscripts, IV, 143. Holker was in on this. He was to see Watson: Holker to Duer, April 22, 1783, Duer Corresp. 94 Frazier to Parker, Sept. 3, 22, 1783, Frazier Letter Book. HUDSON YALLEY BUSINESS 123 by John Pierce who was to share equally in profits from the adventure. Dr. Aaron Dexter of Boston also accused Parker of having taken out more than his share of the stock in a drug trading house they had formed just before he left. With such assets, for he was penniless otherwise, Parker secured credit with De La Lande and Fynje, a wild Dutch house which crashed soon after, whose London partner in 1784 was Fred­ erick William Geyer, a Boston loyalist. Parker's later activi­ ties need not concern us except to note this: he speedily got any number of Europeans interested in the possibilities of speculation in American securities, for whom Craigie later became the principal American agent.8S Duer also contemplated leaving America, in November, 1783. Perhaps he merely sought to open new trade with the Far East, for the Empress of China was financed by Parker and Com­ pany, with help from Morris,88 and Duer had been in India as a young man. However, he possibly also wanted to escape creditors; the Van Schaicks of Albany swore out a writ of capias to prevent his leaving, on November 1.87 This situation casts doubt upon his economic well-being. There is no direct evidence that the war greatly augmented his fortune; indeed, in November, 1784, Jacob Sebor of Connecticut contempt­ uously said, Duer " is so well kno~n. at present, that none but Foreigners will put themselves in his power." 88 What the war did for Duer, as for all those involved in Parker and Com­ pany, was to develop broader business contacts upon which future speculations could be buill Unfortunate as participa­ tion in the company had been for John Holker, who lost every-

95 Lovell to Craigie, Oct. 23, 178J; Dexter to Craigie, May 8, 1785; and many letters from Parker to Craigie, all in Andrew Craigie Papers. In the Craigie Legal Documents, UDder March 2, 1786, is a memorandum on the Pierce agreement. 96 Daniel to Benjamin Parker, Oct. 18, I?83, on the "China business." Morris would advance cash, but have no other interest, ibid. f11 To Varick, Nov. I, 1783. Varick Papers, in Tomlinson Coli. 98 SeOOr to Silas Deane, Nov. 10, 1784. Dearie PaPe"s (Conn. Hist. Soc. con.), p. 203. C/., however, the summary in Davis, Essays, I, 122, 123. 124 BUSINESS ENTERPRISE: REVOLUTION ARY ERA thing thereby, to many it afforded acquaintance with a new kind of "big business," and developed relationships which helped make possible the economic enterprise of the following decade. Such also were the consequences for Comfort Sands and his associates whose contracting in the Hudson Valley had several novel features worthy of relation. Sands, Livingston and Company had either Continental or Massachusetts pro­ visioning business as early as November, 1781. It supplied the troops under General Heath that fall. 9B Under the title of Comfort Sands and Company it later secured the big West Point contract; and, as Sands, Livingston and Company, it had the Moving Army contract of January, 1782. Morris also gave Sands hospital and clothing cpntracts soon after. Associates of this firm were the Sands brothers-Comfort, Joshua, and Richardson-Walter Livingston, the former commissary, and, on one occasion at least, Tench Francis of the mercantile fami,ly of Philadelphia.iOo The troubles encountered by this firm were many, even re­ sulting in accusations of dishonesty against Comfort Sands by no less a person than the Commander-in-Chief,lOl who, it should be added, never had much patience with the commis­ sariat. Morris also failed to make Sands proper payments in 1782; he pointed out in defense, however, that the principal contractors got together to make joint demands on him.102 Such joint action must have included both Duer and Parker. Morris, however, also had such troubles with the beef con­ tractors who had "private and subordinate Agreements with each other." Even Wadsworth and Tench Tilghman, he said, 99 Parker to Sands, Li

103 Morris to Ezekiel Cornell, Oct. 10, 1782, ibid., pp. 299, 301. 104 Statement of Arthur Lee, Papers of Clinton, IV, 449. 105 To Sands, March II, 1783, Financier's Letter Books, E, p. 153; also his bitter letter to the Sands group, Oct. 10, 1782, Letter Books, D, p. 303. CHAPTER VI ROBERT MORRIS AND HIS GROUP

DURING the Revolution the business of Robert Morris assumed large proportions, like that of Sir Joseph Herne, an Englishman of William Ill's time, who similarly developed through the management of war finances, army contracts, and mercantile affairs into a great capitalist entrepreneur.1 The effect of it all on Morris' private fortune is a much mooted point. He has been quoted as having said that he broke " about even" from his war-time commercial ventures, in spite of having lost one hundred and fifty vessels. 2 A Brit­ ish spy said of him in 1778 that he was" grown extremely rich, was the first promoter of privateering and the commerce to France and the West India Islands." 8 Another contem­ porary put it even more strongly, arguing that Morris gained especially by privateering, through his relations with John. Holker, the French consul, and from special opportunities afforded by his political power." A critical modern scholar has concluded, with no reflection on Morris' patriotism, which was great, that his public service connections enabled him to profit largely as a private individual.5 No allegations to the contrary have been able to explain his post-war commercial eminence and power, compared with his provincial situation in 1775,. though he had been a leading young merchant of Philadelphia at the earlier date. Two important circumstances influencing Robert Morris in 1776 were, that he was the business partner of Thomas Willing of Philadelphia, and that he became involved in a

1 On Herne, cf. Lipson, Economic Hist. of England, III, 21S. 2 J. F. Watson, Annals of Phila., II; 329. 3 Quoted in Sunmer, Fittatteier, I, 208. 4 The translator of Marquis de Chastenux, Travels in North America, I,200n. 5 Sumner, Finatteier, I, 206. 126 ROBERT MORRIS AND HIS GROUP 127 European commercial speculation with- Silas Deane, late of Wethersfield, Connecticut. The first assured Morris of social and business backing 'by the mercantile and landed interests of the province of Pennsylvania. This was particularly important since Morris himself lacked such a family background, being representative of the newer commercial interests of Philadel­ phia. The Willings had old and extensive social connections with the Shippen, McCall, and Francis families, the last two still having commercial representatives in Philadelphia in 1776. Thomas Willing was brother-in-law of the rich Quaker mer­ chant, Samuel Powel. 8 Morris' connection with Deane involved him in the first of a series of war-time enterprises whereby he gathered together a group of associates whose interests became closely tied to his own in public and private commerce and finance. Deane him­ self was a remarkable man whose career, like that of Morris, was one of expanding ambitions. Though the son of a black­ smith, Deane secured an education at Yale and then practiced law in Wethersfield, Connecticut. In 1763 he married Mehit­ able Webb, wealthy widow of a merchant of that place, and straightway became a considerable merchant himself. About 1767 he took for a second wife a member of the politically influential Saltonstall family, and entered politics. In the Con­ necticut legislature Deane became interested in the improve­ ment of commerce on the Connecticut River.' He was also an active member of the Susquehanna claimants of Pennsylvania lands, in which agitation many Connecticut politicians were involved. By 1774, however, he began to repudiate the ex-

6 On the Willing COIISleCtions, see Thomas Balch, eeL, Provincial Hist. 0/ PNlM., Intro. The McCalls had most extemive commercial relations of their own, with members married to merchant Swifts, Kembles, Inglises, and Searles. The franc:ises were connected with the commercial Tilghmans and Coxes. A niece of Thomas Willing was married to merchant Cad­ walader, and the Cadwaladers were connected with merchant Samuel Meredith who, in turn, was brother-in-law to the prominent importers, George Oymer and Henry Hill. 7 Stiles, Wdhersfjeld, I, 490-548. , 128 BUSINESS. ENTERPRISE: REVOLUTIONARY ERA treme propaganda of the Susquehanna Company whose claims conflicted with those of many wealthy Philadelphians, includ­ ing Robert Morris.8 His change in attitude did not cost him the friendship of such Connecticut persons as the Trumbulls, the Williamses, Eliphalet Dyer, and Jeremiah Wadsworth; but a certain coolness sprang up between Deane and Roger Sherman. When Deane entered the Continental Congress in 1774 he was speedily drawn into the Congressional faction which stood for commercial opportunity. For his friends in Connecticut, for example, he became the spearhead in the business side of Congressional politics. Thus in 1775-1776 there was a quarrel between Connecticut and N ew York over the right to supply the New England troops around Albany with goods and for­ age, ostensibly involving questions of military rank; 8 but Deane wrote Schuyler on August IS, 1775, "I wish you could contrive by some little employ, to engage some of Our Con­ necticut People to be busy in assisting to procure You pro~ visions. . . . Cattle & Sheep as well as Pork, can best be procured in this Colony & I think that employing Capt. E. Phelps would serve Your Cause as his acquaintance & Con­ nections in this Colony are extensive.... " 10 Jedediah Strong of Connecticut had earlier written Schuyler that God forbid anyone colony should try "to monopolize every emolument." 11 Captain Phelps told Walter Livingston, Schuyler's nominee for handling supplies, that if he (Phelps) did not furnish provisions from Connecticut that he would U disoblige that Colony." Phelps had even offered earlier to resign his Con­ necticut office provided he could continue to forward the pro­ visions.12 The question of rank was obviously a front for material interests. 8 ct. Julian Boyd, .. Connecticut's Experiment in Expansion: the Susque­ hanna Compa,ny, 1753-1803." I. 0/ Eeon. Bus. Hist., IV, 56, 61-63. 9 See Chapter Five. 10 Schuyler Papers. 11 Strong to Schuyler, July 27, 1775, ibid. 12 Livi.ngston to Schuyler, July 29, Oct. 3, 1775, ibid. ROBERT MORRIS AND HIS GROUP 129 Deane was constantly seeking other opportunities for rela­ tives and friends. On July I, 1775, he warned his brother Barnabas about threatening commercial restrictions.18 While a member of the Secret (Commercial) Committee of Congress, he wrote his wife's brother-in-law, Thomas Mumford of Gro­ ton, "wish I could see you, or some other of my Connecticut Mercantile Friends here, as it would be in my power to help them, and in them to serve their country ... if you will come down, the sooner the better." 16 His brother Barnabas secured the building of the Continental frigate Trumbull.lG In both September, 1774, and March, 1776, Jeremiah Wadsworth was in Philadelphia in Deane's company, and was described by the latter as "a valuable person, and I wish the public may be­ come sensible of his worth" II_as indeed it did. The pros­ pects . of profit in western lands also appealed to Deane. A scheme for a colonizing project failed in 1774; but he con­ tinued to be interested in it, encouraged by that enterprising merchant Pelatiah Webster, and in 1776 he wrote on the matter to the Secret Committee, suggesting that European capital be raised to support an Ohio colony.1T Other economic ideas of Deane are as interesting: his suggestion to Morris to establish an insurance company in Philadelphia in 1776; his later proposal to Congress to establish a bank; his con­ servative ideas on paper-money financing; his interest in western land companies; his belief, after 1780, in the feasi­ bility of introducing steam engines into America; his hope in 13 De_ Paper, (New York Hist. Soc. ColI.), I, 67. 14 Oct. 15, 1775, in Burnett, Letter" I, 230. 15 Owl-letter, 01 lhe Marine Committee, I, 46. Silas Deane was on the Congressional committee directing naval construction: cl. Burnett, Letter" 1,2'1'1. 16 Deane Paper, (New York Hist. Soc. Coli.), I, 1!20, also pp. 13, 16. 17 Land lilies there would make him rich, Webster said: Hinman, Hitt. ColI. Co,,"", pp. 535-539; A. B. Hulbert, Ohio ill Ihe Timi 01 lhe Confeder­ OhOn, p. I fl.; Deane Paper, (New York Hist. Soc. Coli.), I, 383, 450. Deane wrote Morris in similar vein, April 15, 1'180: Morris Papers in New York Public Library. 130 BUSINESS ENTERPRISE: REVOLUTIONARY ERA 1784 (the dream of a broken man) of securing English capital for canal construction in New York.is In short, Deane ap­ proached the concept of an " economic man." Like Morris, he was self-made (in rather an . invidious sense) and ambitious; his end, like that of Morris, was tragic. The opportunities for commercial speculation which came to Deane aI}.d Morris originated in the work of the Secret Committee, organized to import supplies for the Continental troops. This committee placed commission contracts in the hands of Willing and Morris (Morris having become its chair­ man in December, 1775, replacing Willing), of Deane, and of the merchants John Alsop, Philip Livingston, and Francis Lewis of New York (four of them being members of the committee). By September, 1775, Congress was already dis­ turbed by rumors that the house of Willing and Morris stood to make a profit of £12,000 on powder deliveries. iD The work of the committee resulted in a vitriolic controversy in Con­ gress for several years on the general theme of business and patriotism, in which Morris and Deane were the particular objects of attack. The facts are shrouded in obscurity since the committee's account books were probably burned long ago; but there was apparently some justification for the charges. This is suggested in statements by a Congressional Committee of Finance in 1788, and by reports of the Auditor and Com­ missioner of the Revenue in 1791 and 1795. Deane, Morris, and Morris and John Ross jointly, were then still held in debt to the United States for large sums of money unaccounted for under the Secret Committee" Indian Contract" of February 19, and under a contract of March I, 1776.20 'Many other 18Deane PaPers (New York Hist. Soc. Coli.), 1,286; W. G. Sumner, Hist . .of Banking in U. S., p. 12; idem, Financier, I, 43; Deane Papers (Conn. Hist. Soc:. Coli.), pp. 197, 21'I; Stiles, Wethersfield, I, 495. 19 Journals of Continental Congress, III, 473; cf. John Adams' recollec­ tions as to the original composition of the Secret Committee, quoted in Burnett, Letters, I, 265 n. See also Chapter Nine. 20 Sumner, Financier, II, 214; docs. 28793, 29304, Div. of Old Recs. Morris was involved in the contracts three ways. ROBERT MORRIS AND HIS GROUP 131 persons participated in commerce on behalf of the Congress; though the Lees of Virginia were rancorous critics of the Morris clique there is no reason to doubt Arthur Lee's list. of forty-four other American merchants who also had Secret Committee commission business. These included John Lang­ don of Portsmouth, the Browns of Providence, Thomas Mum­ ford of Groton, Livingston and Turnbull of New York, John Ross, Blair McOenachan, and George Meade of Philadelphia, Braxton and Harrison of Virginia, William Bingham of Mar­ tinique, Jonathan Williams of Nantes, France, and Barnabas Deane. 21 Their activities are evidence of the national coopera­ tion which was developing among business men. When Deane left for Europe in the spring of 1776 he had contracts to purchase Indian goods and military supplies, and was authorized to sound out French sentiment for American independence. He was to represent himself as a private mer­ chant. Stopping at Martinique on the way, he may have seen William Bingham, the American agent and private trader from Philadelphia, who was a party to Deane's private concern with Morris ... Mr. Bingham now goes out to Martinico in order to procure some arms for the Governor and with another view that I need not mention as he will write to you," Morris in­ formed Deane on June 5. 22 Before leaving Philadelphia, Deane had written his wife of how .. a Concern, different from my contract, is to support me." 28 This is the first clue to the formation of an international commercial and land-speculating group organized around Deane and Morris, and which is said eventually to have included Conrad Gerard, later French min­ ister to America, M. Ie Rey de Chaumont, a French govern-

21 Pap~1'1 0/ CliJl1loK, IV, 451. On clothing secured for the Secret Com­ mittee, by Livingston and Turnbull, see New Eng. Hist. Genealog. Soc. Reg., XXX, 335. Langdon had been an original member of the committee. C/. also Morris' statement about the many American merchants having such contracts or work, in Sumner, FilfltJflCief', I, 224- 22 DeaM Papef'1 (New York Hist. Soc. Coli.), I, 137. 23 Ibid., I, J 22. 132 BUSINESS ENTERPRISE: REVOLUTIONARY ERA ment contractor, M. Ferdinand Grand, banker of Paris, Sir George Grand, broker of Amsterdam, and Thomas Walpole, a member of the English Parliament. Their commercial busi­ ness involved not only the purchase of supplies for America, sometimes by purchasing American prize ships through Jona­ than Williams (United States prize agent at Nantes, great­ nephew of Franklin and perhaps a secret partner of Deane) which ships were frequently re-purchased by Deane for Con­ gress, but also trading with the enemy.24 Such a grand scheme was described by the indefatigable but gullible English spy, Paul Wentworth, in November, 1776; it was said to involve a £400,000 capital, the Crommelins of Amsterdam were also supposed to be concerned, and its trade was said to be re­ stricted to clothing and dry goods, not including military stores curiously enough.25 Robert Morris was enthusiastic about the possibilities of this venture. "You may depend that the persuit of this plan deserves your utmost Exertion & attention so far as your mind is engaged in making money, for there never has been so fair an oppert'y of making a large Fortune since I have been conversant in the W orId . . . ," he informed Deane in August.28 The actual profits made, however, can only be con:­ jectured, though a recent writer thinks there is no reason. to

24 ct. Thomas Abernethy, ': Commercial Activities of Silas Deane in France," Amer. Hist. Re1J., XXXIX, passim; ct. also Bancroft to Deane, Nov. 26, 1776 (Deane Papers [New York Hist. Soc. Coli.] I, ~) about going to Amsterdam .. in our Company Transaction." On Gerard's private interests, cf. Conway, Paine, I, 137. 25" Paul Wentworth Intelligence Received, Nov. 23, 1776." B. F. Stevens, Facsimilies of Manuscripts, no. i31; Deane to Morris, Oct. 1, 1777 (Morris Corresp. in Library of Congress), speaks of their joint adventure with Chaumont; ct. also Chaumont to Morris, Jan. 7, 1m. Deane Papers (New York Hist. Soc. Coil.), I, 450. In the Samuel Osgood Papers in New York Hist. Soc., I, under Mar. 3, 1780, is an extract from a letter from Williams about both public and private goods he is shipping. 26 Deane Papers (New York Hist. Soc. Coli.), 1,176; cf. also his similar remarks in ibid., pp. 233, 459. ROBERT MORRIS AND HIS GROUP 133 doubt that they were high. If It is true that goods from Europe could command 400% profits in 1776, as Jonas Phillips of Philadelphia assured a Dutch correspondent. They were as scarce in Virginia as in Philadelphia at that time, when they were selling for four or five times their usual price.28 Early in 1777, however, Morris was upbraiding Deane for having

II missed so fine an opportunity of making a Fortune - The prices of all imported goods have been enormously high." 2U But the reference may have been to a separate agreement with Deane, whereby the latter was to send goods to America by way of the West Indies, where their agents included Bingham at Martinique and Isaac Gouverneur at Cura~o. Morris wa$ to ship back tobacco, indigo, and rice by the same route. so Such a variety of Morris-Deane big business activities in­ volved many American associates. For example, they invested in privateering out of France between 1776 and 1778 with four Philadelphia merchants: John Ross, John Maxwell Nes­ bitt, David Hayfield Conyngham, and William Hodge, all in­ terested at one time or other in the Revenge which was cap­ tained by a cousin of Conyngham.81 Ross, a Scot by birth and a West India merchant of Philadelphia after 1763, became an agent of the Secret. Committee commissioned to export goods from France. Richard Henry Lee said that Deane had ad­ vanced Ross 400,000 livres by June, 1779, and that he was

II one of the commercial league on public funds." In addition

27 Abernethy, op. tit., p. 479. 28 Amer. Jewish Hist. Soc:. Pub., XXV, 129, 130; W. V. Byars, ed .• B. alld M. Gr'tJt8 MCr'chams, p. ISS, also Po 157 on .. expectations from Independency," in regard to prices in Virginia. 29 Feb. Z1, 1777, DcafSl! Paper's (New York Hist. Soc:. Coli.), II, 14. 30 Ibid., I, 174 on the joint scheme; cf. below on Bingham's interest. Morris said, in 1779. in reply to Paine's criticism, that he had had but three ventures with Deane, all unsuccessful: Sumner, Financiel', I, 22J; cf. also DcafSl! Paper's, II, 423. 111, 260 II., on other relations of theirs,' 31 C/. Sumner, Financie,., I, 207; DcafSl! Popel's, II, 263; C. :H. 'Lee. Yiftdication 0/ Al'thW' Lee, p. 14; R. W. Neeser, ed., Cl'Uises' of GuStavus COflY1lgham, pas.rim. 134 BUSINESS ENTERPRISE: REVOLUTIONARY ERA to his official business Ross engaged in strictly private enter­ prises. In 1777 he was exporting salt from Bordeaux, " of no great vallue & will render profit in case it gets safe." He was in Hamburg in November, 1776, representing Morris with whom he continued to be associated in various ways. He later became a financial agent for several of the states.82 John Maxwell Nesbitt, a partner of D. H. Conyngham in a firm known under the former's name in Revolutionary years for "political reasons," had several brothers also in trade. One was the partner of General Walter Stewart in Philadel­ phia after 1779; another, Jonathan Nesbitt, set up in 177S a mercantile house at L'Orient, France, under Morris' patron­ age. ss Conyngham was also involved in Congressional purchas­ ing in France but returned home in 1779 after having stopped at Martinique where Deane had predicted he could carry on commerce between France and the United States "to the greatest advantage." Conyngham married in 1779 a daughter of the Philadelphia merchant William West, whose wife was a Hodge and probably related to the William Hodge above mentioned as the fourth partner in the Revenge. Hodge also did work for the United States in France from 1776 to 1779 and was later a private trader in the West Indies.s,- The fitting out of the Revenge through Deane's influence and with French connivance aroused the ire of Arthur Lee, who charged that it was financed at public expense.ss It had 32W. M. MacBean, Biog. Reg. of St. Andrews Soc., I, 22; Franklin, Works, Bigelow, ed., VII, 51,108; "Memoir of John Ross," Penna. Mag. Hi.st. Biog., XXIII, 77 fr.; Burnett, Letters, VI, 272; Deane Papers (New York Hist. Soc. Coli.), I, 352, II, 64; W. C. Ford, ed., Letters of William Lee, II, 5¢; Kate Rowland, George Mason, 1,333; Penna. Mag. Hist. Biog., XLVII, 77. 33 D. H. Conyngham, "Reminiscences," in Wyoming Hist. Genealog. Soc. Proc~, VIII, 189, 190, 214, 221; H. C. Campbell, Friendly Sons of St. Patrick, p.126.

34 Conyngham, II Reminiscences," loco cit., pp. 259, 260, 264; Campbell, Friendly Sons, Po 107; Deane Papers, II, 31, 376 fr. 3S Cf. Sparks, Diplomatic Corresp., I, 449, 450. Congress had a part in­ terest in it, however. ROBERT MORRIS AND HIS GROUP 135 an unusually prosperous privateering career off the coasts of Spain and France and in the West Indies, and then, in 1779, was chartered by the State of Pennsylvania through the state's agent, Blair McOenachan, on terms called "heavy." 88 Mc­ Oenachan himself had been interested in a privateer out of France, in November, 1776.. ' Deane had several other less sucessful private schemes which involved Morris or his associates. It was rumored in 1779 that Deane, Morris, James Wilson the lawyer, the Nesbitts, and William Duer had a plan to establish a new commercial house at Nantes.'· In December, 1778, Deane, Wilson, Duer, and Don Juan de Miralles, "late of the Havannah," now of Philadelphia, had proposed a ship mast contract to the French, similar to one which John Langdon of Portsmouth was seek­ ing for himself and in which he wanted Deane's aid. 8s On March 31, 1779, articles of agreement were finally concluded between Duer and Rey de Chaumont, "Contractors with the Court of France," Deane and Wilson, "Contractors with the Court of Spain," and Mark Bird, Wilson's brother-in-law, to seek mast contracts from various foreign ·navies.40 But Duer was still trying to secure such business from the French, through Deane, in February, 1780. Deane was told that his brother Barnabas had his own " Prospects on the Connecticut River" in this line, and advised that John Holker should be made a party to the plan since he had a suspicious attitude concerning it!' .

36 Cr1IUU 01 Conyngham, passim; Penna. Archives, 1779, pp. 228, 234. 252, 310; Conyngham, "Reminiscences," IDe. cit., p. 205 n. The prizes were sold by Bingham and Conyngham in the Indies, by Gardoqui in Spain, and by the Tr3C7' in Newburyport. ~ Deane Papers, I, 357; cl. also, Ruth Y. ]olmson, "American Privateers in French Ports," Penna. Jlag. Hilt. Biog., LIII, 3~ff. 38 Sumner, Financier, I, 226. 39 Duer Lumber Book, under Dec. 29. 1778; Langdon to Deane, Feb. 9, 1779. Deane Papers, III, 347. . 40 Duer Lumber Book. 41 (Duer to Deane ) Feb. 5, 1780, Duer Corresp. 136 BUSINESS' ENTERPRISE: REVOLUTIONARY ERA Morris' business associates steadily grew in number because he took advantage of every commercial opportunity. By March, 1777, he had opened regular intercourse with the Dutch island of St. Eustatius, that war-time international trading mecca. The new Spanish !:olonies' trade also engaged Morris in the flour and sugar traffic in 1780.42 His foreign connections, such as those mentioned above, not only enabled him to contract to furnish Congressional supplies but also to secure private goods, some of which he sold to other government purchasing agents, such as James Mease, the Clothier General, in 1778.48 The public supply business brought Morris into contact with two men especially. One was John Holker, the French consul in Philadelphia after 1778, .who had become interested in American business while still in France, where Deane and Franklin had empowered him to make soldiers' clothing con­ tracts at a two per cent commission.44 The other was William Turnbull, a young Scotch immigrant to America in 1770 who, was a flour purchasing commissary for Pennsylvania in 1779. frequently a business associate of Abraham and Walter Liv­ ingston of New York, and a business partner of Holker and Pierre Marmie (who had come to America as LaFayette's secretary) in 1781. Morris is said to have been associated with this firm of Turnbull, Marmie and Company that year when it was given the highest tax assessment in Philade1phia.45 In 1782 Turnbull and William Duer sought Continental army

42 J. F. Jameson, "St. Eusotatius in the American Revolution," Amer. Hist. Rev., VIII, 686. Conyngham, .. Reminiscences," lac. cit., p. 220. 43 E. g., "Report of James Mease, 1778," doc. 22714, Div. of Old Recs. 44Agreements in South Carolina Hist. Genealog. Mag., II. II6-II8; cf. also, Deane Papel's (New York Hist. Soc. Call.), III, 39, 173. Holker sold clothing to the U. S. in 177&: doc. 22114. Div. of Old Recs. The New York Daily Advertiser, Aug. 17, 1786, gives death notice of a John Holker, ap­ parently his father, an English cotton manufacturing pioneer in France. 45 A. D. Turnbull, William Turnbull, pp. 9, 10; Sumner, Financier, II. 163; doc. 033836, Div. of Old Recs.; Continental Congress Papers, 192. no. 329. See also Chapter Five. ROBERT MORRIS AND HIS CROUP 137 contracts from Morris as Financier, and Turnbull and Walter Livingston secured one together/6 Another Philadelphia firm, Peter Whitesides and Company, was frequently used by Morris and associates on both public and private business throughout the war. George Clymer and Thomas FitzSimons of Philadelphia also were later declared by an Anti-Federalist writer to have been invariably included in Morris' activities after 1777/7 and there is no reason to doubt it. The Nesbitts were even more closely connected with him, especially in the tobacco trade. Morris also handled the war-time business, or funds, of Tilghman and Francis, a pre­ war commercial house of Philadelphia/8 Among northern merchants with whom he occasionally transacted business were Thomas Mumford of Groton, Thomas Russell of Boston, and John Langdon of Portsmouth. The northern connections were necessary because Morris had to dispose of European manu­ factures, West India sugar, and products of the middle states, and to collect produce with which to make remittances abroad either for himself or for Congress. John Bradford of Boston wrote in May, 1776, that he had purchased a fine brig for Morris, had secured a master who knew the " Bay of Bisca," and had bought twenty-four tons of sperm oil, whale bone, fish, and other things for the Bilbao market.,g Probably these were Congressional purchases; nevertheless it is significant that Morris was involved in the trade of such typically New England products which had been largely handled by New England shippers before the war. Opportunities in the tobacco trade particularly intrigued Morris and increased his business acquaintances. Though on the eve of the Revolution the American tobacco crop was

46 Ct. below, also Otapter Five. 47" Centinel" in Ind. GlI8ett~, Nov. 24, J788, quoted in McMaster and Stone, PeMtJ. Gild FedertJl Constitlltion, p. 6gB. 48 T. W. Balch, ed., Willing Letters, p. 66. 49 Bradf07d to Morris, May 30, J776, Morris Corresp. in Library of Congress. 138 BUSINESS ENTERPRISE: REVOLUTIONARY ERA worth nearly as much as the combined other exports of the mainland colonies to Great Britain, it was largely a monopoly of British factors and of American partners of British mer­ chants. Here was a rich field for French and American com­ mercial exploitation; it is significant that the first loan to the rebel colonies came from the French tobacco" Farmers Gen­ eral" in 1777. GO Tobacco was equally important during the war from a political point of view; it was used by the Secret Committee to pay for goods purchased abroad by Deane, and Sir George Collier actually thought it furnished the principal financial support of the rebels, through export activities of the Chesapeake merchants. 51 That it also offered a valuable specu­ lation is shown by the profit Morris made for the United States on one sale of Virginia tobacco in 1781; but probably ~ere was increasing difficulty in shipping it in the latter half of the war.62 . Willing and Morris were interested in this tobacco trade before the war but their share in it doubled in 1776. Their Virginia associates in this at first were Carter Braxton and Benjamin Harrison, Jr. The former wrote William Aylett, Deputy Commissary General of Virginia, in September, 1776, offering to sell him rum, sugar, and wheat (having done so previously), and asking about ships and tobacco, explaining that he acted in part for Morris.53 Harrison was a commission agent for Morris in 1776, apparently working through him for the Secret Committee U but with an eye also to private speculation. While Deputy ,Paymaster for the Southern Army

50 Bullock, .. Finances of U. S .... lac. cit.• p. 146. 51 Collier quoted in Va. Hm. Reg.• IV. ISS. 52 Sumner. Financier. II. 128; L. C. Gray. Agriculture ill Southern U. S., II. 591. 53" Letters of Col. William Aylett." Tylers Quart. Mag .• I. 93; both Braxton and Benj. Harrison, Sr.• were political supporters of Morris. 54 ct. letters from Harrison, Sr.• in 1777. in Robert Morris Papers (New York Hist. Soc. Call.). pp. 408. 410. ROBERT MORRIS AND HIS GROUP 139 (the small returns from which office disgusted him),&5 Har­ Tison wrote Morris in May, 1776, that he was contemplating .. , your Scheme of a Store." What drygoods there were in Virginia were coming from Philadelphia and they were very scarce; "any Price could be got for them, but we must be satisfied with a reasonable Profit. I believe there is not a Pocket Handkerchief to be Bought in all Virginia." &6 Har­ Tison straightway got Morris into trouble, a committee of Williamsburg accusing him in June of depreciating Virginia currency by drawing on Willing and Morris at two per cent advance. "A Popular Frenzy prevails through this Country, & I suppose we could not be able to convince it that our motive was to serve it, & only be payed for our Trouble and Risque," he complained to Morris. Of But there is something suspicious in Harrison's careful method of keeping Morris' name from his "Office Books" in connection with the tobacco purchas­ ing. He also opened an account of the discounted bills of Morris which he used, as "This will clearly ascertain the Profits that we make by this Business ...." 18 Morris, John Maxwell Nesbitt, and the Smiths of Virginia were also together interested in tobacco and other matters on the Eastern Shore of the Old Dominion until I 778 at least. &9 Willing and Morris were further engaged there with the Quaker firm of Pleasants, Shore and Company in the latter year. (This Quaker firm had competed with the Secret Com­ mittee itself in buying up the tobacco crop of 1776.) 60 In 1778 Morris was concerned with Braxton again, with Samuel Beall of Williamsburg, and probably with John Ross of Phila-

55 Harrison to Morris, April 4. 1776, Morris Corresp. in Library of Congress. 66 Ibid., May. 17, 1776. 67 Ibid., June 29. 1776. 581bitl.. May 17, 1776. 69 C/. Susie M. Ames, ill I. of Bco,.. Bus. Hist., III, 414- 60 Sumner, FillQllcie,., II, 164; MotTi.r Paper's (New York Hist. Soc. Coli.>, p. 408. 140 BUSINESS ENTERPRISE: REVOLUTIONARY ERA delphia in the tobacco business. By the end of the war Morris had numerous local representatives in this trade, among them Richard Graham of Dumfries and Josiah Watson of Alex­ andria.61 He likewise held in 1779 a seven-sixteenth interest in a saIt and tobacco agreement with new foreign merchants of Baltimore.62 There Robert Gilmor became his principal local agent before going to Holland as a partner of William Bing­ ham. The steadily rising price of tobacco abroad encouraged Morris in all this work; a sharp advance in price in the fall of 1781 was especially fortunate for Willing and Morris who were ahead of the Philadelphia market at that time with con­ siderable purchases on hand.63 Other commercial associates of Morris who turned early in the war to the "sot-weed" opportunities include George Meade and Thomas FitzSimons.6~ Simeon Deane, brother of Silas, having returned from France in 1778 bearing news of the treaty, also hurried to Virginia on tobacco business,. Silas having paved the way for him through contacts with John King and Company of Petersburg, Norton and Beall of Williamsburg, and a tobacco agent of Rodrigue Hortalez and Company (the firm of Beaumarchais). The following year Simeon claimed partnership with" a Number of the most Capital Fortunes & of the greatest influence," among whom were Holker and de Chaumont and for whom Morris was at least an agent.65 One of the great tobacco houses sometimes used by Philadelphians was Wallace, Johnson and ·Muir of Annapolis and Nantes. Their correspondents by 1781 included many members of the Morris group in addition to th~ Stew­ arts and Grahams of Baltimore and Annapolis.66 This firm's

61 C/. B. and M. Gratl!, preface, p. 21; see index for references to Watson. 62 Agreement of May 3,1779, Morris Papers in New York Public Library. 63 Willing Letters, p. 88. M C/. Official Letters 0/ Governors 0/ Va., I, 57; Burnett, Letters, I, 276. 65 Deane Papers (New York Hist. Soc. Coil.), II, passim; Deane Papers (Conn. Hist. Soc. Coil.), passim. Beall and Silas Deane had had hopes of contracts with the French Farmers as early as 1776. ROBERT MORRIS AND HIS GROUP 141 correspondent at L'Orient, France, was the brother of John Maxwell Nesbitt. On closing its books in 1783 Wallace and Company owed Morris about five thousand pounds.sf Profits in the trade are evident in their statements that the weed sold in France in 1781 at an advance of 90% to 100%, though heavy freight and insurance charges cut deeply into gains. Such war-time experience as this evidently spurred Morris on to monopolize the French wholesale tobacco business in the :rears of the Confederation, through contracts with the French Farmers General. The most successful Philadelphian in the Morris clique, both in public service and private trade, was young William Bing­ ham. He is commonly held to have made a fortune while Congressional agent in the West Indies from 1775 to 1780, though there is some dispute as to his wealth before the war. Tom Callender, the vigorous Anti-Federalist pamphleteer of the 'nineties, called Bingham the son of a Philadelphia breeches­ maker. His father had made a wealthy marriage, however, and the boy had graduated from the College of Philadelphia in 1768.11 That Bingham made an independent fortune early in the war is undoubtedly true. Officially, Bingham did work for Virginia and purchased on a commission basis for the Secret Committee; he also managed prizes and outfitted vessels for Congress. Privately, his work consisted, in part, of transactions with Willing and Morris which undoubtedly worked in with the international scheme outlined above. Bingham usually secured half the profits and commissions on all trade handled for Willing and

66 Wallace, Johnson and Muir Letter Book, passim. 67 To John Swanwick, April JO. 1783, ibid. 68 Tom Callender, Letters to Alexander Hamilton, King of the Feds, Letter Two, p. 23; "William Bingham," in Diet. Amer. Biog.; Watson, Annab of Phila., III, 271; peflJIQ. Mag. Hist. Biog., XLVI, 57fi.; Scharf and Westcott, Phila., II, 883; cf. references to him m Burnett, Leflers, III, 2190 380, IV, 49- It is admitted by all authorities that he made out very well at Martinique, to put it conservatively. 142 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Morris.os They sent minute instructions to him at Martinique­ in September, 1776, about goods and credits for" your con­ nection with us." All sorts of foreign merchandise were iIll demand in Philadelphia in 1776 and tobacco was high in France at that time, which made commerce profitable.70 There· was difficulty at first in securing European backing, though. Delap of Bordeaux finally offered them £5000 Sterling credit. John Ross was abroad and would ship out goods; Thomas; Morris and Deane were together in France and" may prob-­ ably do the same." 71 Schweighhauser of Nantes, Delap of Bordeaux, and Limozine of Havre were French merchants also expected to send goods to Bingham in 1777 to be relayed to Philadelphia. One of the Moylan brothers at L'Orient re-­ ceived shipments of tobacco from them on occasion. Molasses, rum, coffee, sugar, and other West India produce were also­ desired in Philadelphia since they continued high in price, and these Bingham was to secure in the islands.72 In return he re-: ceived flour as well as tobacco from Morris. Many American merchants did business with Morris and. Bingham. The Stewarts of Baltimore and Norton and BeaU of Virginia purchased tobacco for them. Goods were sold for­ them in Baltimore by Lux and Bowly and Jonathan Hudson; in Virginia by Isaac and Thorogood Smith, and by Hooe. and Harrison; in the North by Thomas Russell of Boston. Medicines, linens, blankets, and "brimstone" were success­ fully imported from abroad, and staples from the West Indies .. Among Bingham's agents handling the precious traffic were Stephen Ceronio at Cape Fran~ois, Isaac Gouverneur at 69 Morris to Bingham, Feb. 16, 1777, Morris Papers in Library of Con­ gress. The following referenceS·.are also to this collection, unless specified to the contrary. 70 Willing and Morris to Bingham, Sept. 14, 24, 1776. 71 Ibid., Sept. 14. 1776. Deane is said to have helped secure French credit for Willing and Morris in 1776: Sumner, Financier, I, 207. 72 Morris to Bingham, Feb. 16, 1777, Oct. I, InS. James to Stephen Moylan, Dec. 10, 1777, ibid., gives interesting comments on commerciaL activities of Americans in France. ROBERT ](ORRIS AND HIS GROUP 143 CuraQlO. and Cornelius Stephenson at St. Eustatius. Morris in turn frequently shipped and imported together with his principal Philadelphia associates: that is, several persons would take shares in a common cargo, as, for example, when Morris secured a one-quarter part of the ship Eliza and Marys cargo sent by Meade and Company to Martinique in December. 1778.fa However. Morris could write Bingham in October of that year, "Messrs. C. Nesbitt & Co. & I have a good many concerns together but I do not incline to form any more gen­ eral Connections or partnerships neither is it necessary for if I can but once get the command of my time I have in every other Respect the means of doing as much business as I chuse." This, perhaps, indicates his enlarged business position. How profitable the Morris-Bingham connection was cannot be determined It should be added, however, that they had a common interest in privateers as well as in trade; and Bing­ ham's position for outfitting such craft at Martinique was particularly fortunate. The net proceeds from the sale of one brig's cargo shipped from Hispaniola in 1778 amounted to £13,780, one-half of which went to Morris, one-third to Bing­ ham, and one-sixth to the ship's captain.u Medicines sold in Virginia in 1778 netted Bingham's half £4078 "This Curr'y," and" they were sold at the highest prices ever given." 15 On December 14, 1778, Bingham had a favorable balance of £13,712 with Morris, in addition to an unknown quantity of Loan Office certificates which Morris had purchased for him and taken out of the account. r. Bingham already was keenly interested in such public secur­ ities. He even had a plan for making the certificates negotiable

13 Morris to Bingham, Dec. 14, I7i8. Thomas FitzSimons was a member of Meade and Co., and wrote in Sept.. I783 (PefUWI. Mag., XIX, 401), of .. some extensive commercial Concerns" he had had with Martinique prior to the peace. 74 Acxount of sale under Nov. 25. 1778. 75 Morris to Bingham, Oct. I. Dec. 14, 1778. 761biJ .• Dec. 14, m'8; Bingham to -? Jan. 14, 1778. Gratz Col!. • .peaks of a balance in his favor of 343.105 livres. 144 BUSINESS ENTERPRISE: REVOLUTIONARY ERA abroad, though Morris regretfully advised him that lack of duplicates made them too risky a shipment. 77 On May 5, 1778, Morris wrote Bingham that, according to directions, he had "procured the amount of Eight Thousand Dollars in Certifi­ cates bearing date before the first of March and have wrote into New England where money is become scarce to buy up a Parcell there in which expect to succeed but here People will not part with them." If he could not get them in Boston or Portsmouth where money was tight, he would place 40,000 dollars for Bingham in the recently issued Loan Office notes, " not doubting but those taken out of the Office after the 1st of March will before long be put on the same footing with those of an early date." 18 Bingham continued to urge Morris to buy, but Morris replied on October I, 1778, " I should have entered on the Speculation you proposed of buying up the Loan Office Bills of Excha & remitting them to you but none were issued untill the 10th of this month & now they ask 500 to 650 pr ct for them, a price so enormously high can not answer your purpose or mine ...." Bingham had private business besides that with Morris. In 1778, for example, he tried to make a private sale of rum to the State of Virginia, shipping it thither on a public vessel through the good offices of Richard Harrison who was in Martinique as a private trader and a Virginia commercial agent.19 At any rate, Bingham had done so well in his various activities by 1780 that he could return to Philadelphia, marry a daughter of Thomas Willing, enter trade with and under the name of Mordecai Le-yvis, and henceforth be counted as one of the very rich Philadelphians. , . '17 Morris to Bingham, Oct. I, 17i8. Morris acknowledged that free use of them abroad would aid commerce, but when he had proposed to Congress that they be issued in that convenient form, the plan met with "violent opposition." 78 Morris to Bingham, May 5, 1778. 79 Cf. Letters of Governors of Va., I, 307. Harrison got into trouble thereby. ROBERT MORRIS AND HIS G-ROUP 145 A final example of a member of the Morris group engaging in both public and private business is John Holker, whose early interest in army clothing has been discussed. He con­ tinued to receive such goods in America from the French contractor, Louis de Chaumont. In addition to his army con­ tracting associates already mentioned, Holker was closely connected with Thomas FitzSimons of George Meade and Company. Meade's schooner Swan was chartered by Holker and together with FitzSimons he furnished the French fleet at Philadelphia with provisions in 1779, for Holker was also Agent for the Royal Marine of France. It is said that his other private interests included speculation in paper money which enabled him to buy a fine house "almost for nothing." 80 We have seen, however, that he eventually got into financial diffi­ culties with Duer and Parker in New York. It is enlightening to note some of the persons Morris em­ ployed in his work as Financier of the Finances of the United States from 1781 to 1784, a position he accepted only on condition of his being free to continue private business. The significance of the national policies he then inaugurated-the removal of embargo restrictions so as to enable merchants to trade freely, and the installation of a~competitive contract system for army supplies-is discussed elsewhere. The magnitude of Morris' official work is revealed by the wide distribution of his personal notes drawn on a government clerk, John Swanwick, who became a partner in the firm of Willing and Morris in 1783. These notes, with considerable command over bills of exchange, gave Morris an exalted notion of his powers and encouraged the pernicious habit of bill-kiting which subsequently proved disastrous. He was not­ ably prompt in securing payment of old Congressional debts due to such commercial associates of his as Bingham, Ross, and Holker, who in 1781 received sums totaling 400,000 livres,

80 South ClII"oliftIJ Hilt. GtMtJlog. MIJg .• II, 41; PIKna. Archiws. 1m p. 407; Penna. ColonitJI Recs., XI, 645; Sumner, FiMncitr. II, 163. 146 BUSINESS ENTERPRISE: REVOLUTIONARY ERA a fact which excited the wrath of Arthur Lee. 81 Bills which Morris drew on the WiUinks of Holland on another occasion in 1783 were made out in favor of Ross, Peter Whitesides, and Isaac Hazelhurst of Philadelphia, who could supply him with exchange for immediate use.82 Among his other agents was William Turnbull (with whom he is said to have had a private interest about this time) who, for example, purchased flour for the government in 1781.88 Morris continued 1.0 be associated with Holker in various public transactions, and with the bill broker who took orders from Holker, Haym Salomon.84 Salomon agreed with Morris on June 8, 1781, to help him sell bills owned by the United States at a commission of not more than one-half of one per cent.8S The Boston Jewish broker, Moses Michael Hays, sought similar official work from M01"ris on several occasions in 1782, but was unsuccessful. Richard Yates of New York, Thomas FitzSimo~s of Philadelphia, and William Imlay of Hartford were among his other important financial agents from time to time. Some of the business men who secured army contracts from Morris have already been mentioned, such as Duer, Parker, Livingston, and Sands. Philip Schuyler also had an Indian supply contract with him in 1781 and 1782, and provided him with batteaux and flour on at least one occasion.86 John Tayler and a Major Popham of New York seem to have had some sort of a contract in 1782.87 Another New Yorker, Mehlncton 81 Sparks, Diplomatic Corresp., XII, 59; Papers of Clinton., IV, 449; Sumner, Financier, 11,17. 82 Sparks, Diplomatic Corresp., XII, 422, 423; cf. also, Financier's Official Diary, June 23, 1781, for work of Ross. 83 Financier's Letter Books" A, . p. 345; this was to repay Holker who had assisted Morris with 4000 bbls. 84 A copy of a letter from Holker to Salomon is in ibid., pp. 250-253. 85 Financier's Official Diary, under date. 86 Fmnancier's Letter Books, A, pp. 367, 368, C, p. 45. 87 Popham to Tayler (1782), John Tayler Corresp.; he would try to fill the contract as well as .. Mr. Sands." ROBERT MORRIS AND HIS GROUP 147 Smith, figures in Morris' account settlements for that year.ss Jacob Cuyler and Company supplied' provisions to troops at Saratoga in 1783. Leonard Gansevoort and Company of Al­ bany, Thompson and Skinner of Williamstown, and Phelps, Champion and Company of Granville, Massachusetts, did simi­ lar work at that time, possibly acting as sub-contractors. Morris' principal financial agent in the North and East was Thomas Russell, who held the marine agency at Boston (a desirable post for which John R. Livingston unsuccessfully applied). When Morris wanted to make a remittance of 3500 gold or silver dollars to Schuyler at Albany, he drew on Russell for the money the latter was collecting in Boston in September, 1781, for subscriptions to the Bank of North America." Russell met other Morris drafts and sold public goods. It doubtless was concerning him and Duer's contract­ ing partner, Daniel Parker, th;it Stephen Higginson wrote in 1783 when he complained of the "most scandalous Conduct" of the Marine Department, which built and hastily sold ships: .. The reason of all this is very plain, when we attend to the terms of Sale, and the Persons who have purchased them, Mr. Morris' Agents purchased both of these Ships, Mr. Russell of the Hague and Mr D. Parker the Bourbon." 90 John Langdon continued as marine agent in. New Hamp­ shire. Others of Morris' associates were Thomas Lowrey of New Jersey, from whom he bought flour in 1781; 91 also Samuel Patterson and Ridley and Pringle of Maryland, con­ tracting or purchasing agents in both Maryland and Delaware. The Baltimore merchant, Robert Smith, represented Morris at Havana as early as July, 1781. Among Pennsylvania mer­ chants, Tench Francis was Morris' right-hand man on such occasions as the bringing of specie from Boston in September,

88 Financier's Letter Books, E, p. J4- 891bid., A, p. 369. 90 Quoted in J. S. Davis, Essays Oil Corporations, I, 121. 91 Financier's Letter Books, A, Po 100. 148 BUSINESS ENTERPRISE: REVOLUTION ARY ERA 1781, which made possible the establishment of the Bank of North America. In December, Francis and Matthias Slough of Lancaster secured a contract to supply the military posts in the Jerseys for the following year. Prospects in that line had caused Gener!ll Edward Hand to reflect, "the Contract will be great and if judiciously made must turn to good Acct. cant Slough & Some of my Lancaster friends profit by it­ I wish they would, & think the Service I could render a con­ tractor in the field equal to a Small Share in Stock," so he wrote Jasper Yeates.92 In Virginia a principal tobacco pur­ chasing agent was Daniel Clarke, who made shipments to Am­ sterdam for the Financier.9s Clarke also had private business relations at this time with the former United States commer­ cial agent at New Orleans, Oliver Pollock, who in turn was then active in the Havana and tobacco trade together with 9 William Constable. ' Thus did Morris co-ordinate the work of a great group of business men, drawn from all parts of the country. Thus was the basis laid for numerous nation-wide enterprises of the post-Revolutionary decade, in which Morris frequently became a leader.

92 Feb. 2, 1782, Edward Hand Papers in New York Public Library. 93 Financier's Letter Books, E, pp. 242, 410. 94 Constable to Pollock, Nov. 19, Dec. 10, 1782, Feb. 19, 1783, in Library of Congress. Pollock was then in Richmond. CHAPTER VII PENNSYLVANIA TO NORTHERN VIRGINIA THE private history of Robert Morris is not the business history of the struggling Republic, nor even of the port of Philadelphia. Though the activities of Morris and his asso­ ciates invariably intrude upon any discussion of business in the Quaker City, they constitute but a portion of the economic picture and afford only a partial explanation of the post-war developments there, which were bigger than the undertakings of anyone man, colossus though he seemed to be. Philadelphia's normal business life was disrupted by the British occupation and by the constant threat to commerce in the Delaware, but her mercantile activities continued to be considerable. The presence of the British in 1777-78 made possible a trade in army supplies for many of the merchants who remained; and those patriotic merchants who left the city managed to carryon some commerce, such as that which Morris and Nesbitt conducted from Mannheim, and William Bell from Egg Harbor, New Jersey. In 1781 it was said that the improvements in public and private credit during the open-. ing months of Morris' career as Financier made the commerce of Philadelphia" really flourish "; 1 but there is no reason to believe that it was stagnant in the previous three years. In­ deed, the activities already noted of the Morris associates belie such an assumption. Moreover, Philadelphia had an expanding hinterland, though she had to share it with Baltimore. In 1777 Elias Boudinot called Lancaster and surrounding territory .. this new World," adding, "I found trade going on here as brisk as ever you see it in the City. The Shops are full of Goods, and every Body busy, so that you would think your­ self in a Sea port town whose Trade was open-but Extortion

1 By Thomas McKean, in Burnett, Letters, op. cit., VI, 146. He says that it represented .. recovery," however. 149 150 BUSINESS ENTERPRISE: REVOLUTIONARY ERA & Extravagance is multiplyed many fold beyond New Jer­ sey." 2 It is suggestive of such expansion that the Pennsyl­ vania Assembly was petitioned in 1780 to open the important Darby road through to Market Street, Philadelphia, the heart of the commercial ,section.s The evacuation of Philadelphia in June, 1778, was followed by the brief confused period of Arnold's military rule when retail stores were closed and some wholesale goods seized for public use. The activities of speculators in Philadelphia were then accordingly legion. They even prevented the army sup­ pliers .from buying rum in July, 1778; and in the fall they began to "lay in" for the winter in flour especially, some speculators coming to Philadelphia for that special purpose.4 The regular commerce was not entirely cut off, however. Around July 30, seventeen sail entered Delaware Bay,& though a month later considerable risk was attached to such ventures. The West India trade also gradually improved, even rum being plentiful in Philadelphia in August. Local merchants, mor~­ over, had the one thing greatly desired on the islands at that time, flour. "There is no article of American produce that will yield so great a Profit," William Bingham' wrote on Sep­ tember 16, 1778, from Martinique.s In October William Jen­ nings at St. Eustatius ordered the Caldwellsof Philadelphia to return his sloop immediately, filled with the best flour.' The West India trade was also stimulated by the demand for cloth, which prompted Chaloner and White to send bills there

2" Em B.," Emmet Col!. 3 Joseph Jackson, Market Street, Phila., p. 199· In 1779, Pelatiah Webster (Political Essays, p. 42) thought that a considerable degree of business recovery had taken place, new, branches of business being established, etc. 4 Chaloner and White Letter Books, 1778, passim. One J. Musgrove was caIled a noted speculator in flour. 5 To Ephraim Blaine, July 30, 1778, ibid. 6 To -? Gratz Col!., in Hist. Soc. Pa. There was a great demand for provisions in the West Indies. 7 Oct. 19, 1778, Society Coli., in Hist. Soc. Pa. PENNSYLVANIA TO NORTHERN VIRGINIA 151 in December to finance a speculation in goods for the Phila­ delphia market! Tobacco continued to Fe an important item in business. For example, Levi Hollingsworth sold tobacco in Philadelphia in September, 1778, for the Baltimore merchant William Hammond. That same month Thomas FitzSimons wrote that though flour was the most desirable export com­ modity, many persons wanted to realize on paper currency by purchasing tobacco in Virginia for sale in Europe; that some early speculators in the weed wished to sell because they were alarmed by the prospects of peace and the number of captures of American vessels.' By July, 1779, Chaloner and White estimated that 121 vessels of 3632 tons burden had sailed from Philadelphia in the year following the· British evacuation.10 This is not much, compared with pre-war shipping; but, combined with the en­ larged land transportation encouraged by water shipment risks, it is impressive for that unsettled year. It is also necessary to take into account another fact, appearing in the letters of this firm, which indicates the unreliability of such estimates: mer­ chants of Philadelphia repeatedly evaded state regulations, especially in the sale of flour. Similarly, in Maryland for­ bidden flour shipments were made under the guise of tobacco cargoes." Certainly by October, 1779, Philadelphia's commerce was really reviving and the city receiving much needed stores!Z

8 Letter Books, under Dec. 12, IS, 1778. B To -1 Sept. 8, 1778, Letters of Members of the Federal Convention, in Hist. Soc. Pa. 10 To Gouverneur Morris, July, 1779, Chaloner and White Letter Books. Their argument was to show the necessity of removing embargo restrictioos. They estimated that about 363 vessels would sail from Philadelphia in 1779 with wheat, flour, pork, corn, etc., about one-half as many as in 1771. . 11 To Blaine, May 6, and to Wadsworth, Aug. 22, 1779, ibid., the first citing HOtling9Worth as a violator who pleaded emplo~r's instructioll:S as an excuse. On Maryland's troubles, ct. below, also Burnett, Letters, III, 407,409· 12" •.• as our trade is again reviving ... " To Wadsworth, Oct. 8, 1m, 152 BUSINESS ENTERPRISE: REVOLUTIONARY ERA On March 3, 1780, twenty sail from Europe and the West In<;l.ies were waiting for the harbor to clear.1S Special interest continued to be taken in tobacco; probably the "many" Frenchmen who arrived in Philadelphia with sugar, in July, 1780, sought the weed. In both July and December of that year goods were "again plentiful, and a year later European goods were dull in price,14 showing that they continued to be available in quantities. A generally prosperous condition of business in Philadelph.ia in 1780 is, moreover, suggested in the fifty to seventy-five per cent increase over former times in specie values of house rents. Buildings had almost double rental value if they stood on good trading sites.15 Toward the end of the war, however, Philadelphia's foreign commerce was frequently disturbed by British depredations. These doubtless encouraged ~n adventure of John Chaloner and Thomas Lowry in ;1:781; they purchased some £16,000 worth of merchandise from the Boston clothiers Otis and Henly and brought the goods to Philadelphia overland. Philadelphia's trade in flour and grain was seriously retarded for a time. Military events and threats of capture on the Bay were probably the reasons for John Chaloner lamenting in May, 1779, that the Quaker City's pre-war monopoly as an outlet for the grain and flour of Pennsylvania, Delaware, and West New Jersey had been sadly interfered with and that it would be some time before such trade returned to its old chan­ nels.,e Indeed, wheat and flour sometimes had to be brought to Philadelphia from Baltimore. Chaloner and White, Assist- ibid. There had been many arrivals even in Dec., 1ii8, Thomas Hollingsworth wrote Levi, Dec. 7, 1778, Hollingsworth Papers. 13 Otaloner and White to Wadsworth, March 3,1780, Wadsworth Corresp. 141bid., letters of Dec. 12,"1780, Nov . .26, 1781; Otaloner and White to Wadsworth, July 25, liSa, Chaloner and White Letter Books. Aug. 7, 1781, they write of the new ship Franklin sailing for France. 15 To George Anderson, ·Dec. 12, 1i80, Hollingsworth Letter Book, 1780- J782. 16 To Royal Flint, May 8, 1779, Otaloner and White Letter Books. PENNSYLVANIA TO NORTHERN VIRGINIA 153 ant Commissaries of Purchases for the army, informed Eph­ raim Blaine in November, 1778, that army needs required assistance from purchasing commissaries in Baltimore and to the south.17 This, however, is also evidence that all the flour available at Philadelphia after 1778 was in general demand because of extraordinary military requirements in addition to shipments made to New England and the 'Vest Indies. It is significant in this connection that new flour casking regulations were put into effect in Philadelphia in 1781.18 The amount of flour required by the forces alone was con­ siderable. Some idea of it is gained by the estimate Chaloner and White made on May 22, 1779, that the United States troops, the Marine Committee, and the French fleet (which purchased from them through John Holker) would con­ sume 45,810 barrels in the following five months.18 Their letter books for 1778 and 1779 are filled with commands and entreaties to their numerous purchasing agents to secure flour from the mills on the Brandywine and Elk Rivers. It was then to be collected at York, Carlisle, and Christiana, to be for­ warded to the army at once or gathered into a magazine of supplies at New \Vindsor. Some was made under their super­ vision into bread and biscuit at Philadelphia or Wilmington bakeries. Chaloner and White also purchased other things for the troops, such as salt pork and beef, or vinegar and pork barrels for which they advertised in 1778.:20 It was the John Chaloner of this firm who, becoming acquainted with Jeremiah \Vadsworth of Connecticut in such public service, acted as the Philadelphia representative of Wadsworth and Carter in the French contracting business after 1780.

171biJ.. Noy. 24, 1778; also OWoner to McIlwaine and Co., March 230 1779, aclmowledging receipt of wheat apparently from Baltimore. Some lour came from Alexaodria, Va. 18 James Mease, Pie,,,,., Df PltiJlJ. (Phila., 18n), p. 57. 19 To a Committee of Congress, Qaloner and White Letter Books. 'JJJP~ Padd, July 30. 1778. 0W0uer and White to Marine C0m,- mittee, Aug. 11, 1780, mention 2000 bbl. of biscuit and 1000 bbIs. of pork as ready for the Frmch leet. 154 BUSINESS ENTERPRISE: REVOLUTIONARY ERA The flour trade is further illustrated by the war-time activi­ ties of Levi Hollingsworth, a Philadelphia factor and a brother of the many Baltimore Hollingsworths who milled and traded in flour. His ledger for 1777-1781 contains flour accounts with over 600 different persons. A journal shows that he handled the sale of an incredible number of barrels of that artide.21 Several of his largest customers were Robert Morris and Ephraim Blaine, whose purchases possibly went to the army. A brother of Levi, Henry Hollingsworth, was an army flour purchasing commissary at the" Head of Elk" through­ out the war, as well as a trader or miller pursuing private ends. 22 Levi's importance is shown by his being placed in charge by Morris in 1782 of the government's flour exports from Philadelphia; 28 he also sold flour to John Ross, then contracting with the Financier. In 1781 Levi Hollingsworth took part in the lucrative flour trade with Cuba, besides ship­ ping it to other West India islands. It throws some light on his multitudinous war-time activities to find his pious brother Jesse writing him in 1778 to remind him of religious thoughts which, Jesse feared, would be driven from him by such a busy life. Perhaps as a result of such war opportunities Levi could boast in 1787 that he had the disposal of " a great Proportion of the Flower coming to this Marget"; 24 small wonder, too, that in those later years he had the means for speculating in Virginia military land patents, and for getting interestt;d in James Rumsey's steam engines. Other facts also contribute to ·an understanding of the gen­ eral economic situation in Philadelphia. War financing activi-

21 Flour Ledger B, Im-I78I; Journal, 1777-1781, in Morris-Hollings­ worth CoHo It would take several days with an adding machine to compute the total number of barrels handled. 22 Henry to Levi Hollingsworth, Nov. 23, 1778, mentions being busy on "my own" and the public's business. Hollingsworth Misc. Papers. 23 To an assistant, Feb. 26, 1782, Hollingsworth Letter Book, 1780-1782; he also handled salt beef for Morris, April, 1782. 24 March 24, 1787, Hollingsworth Letter Book, 1786-1791. PENNSYLVANIA TO NORTHERN VIRGINIA 155 ties gave many Philadelphia merchants a new kind of business experience, as in handling large quantities of Continental Loan Office certificates. Morris received the latter in 1777 and 1778 to the amount of tens of thousands of dollars. Other early recipients, of smaller amounts, included Nesbitt, Mease, Mc­ Oenachan, Matthew Irwin, Robert Lettis Hooper, John Nixon, and the Caldwells.25 It is obvious that these certificates were issued largely to pay for supplies sold to or purchased for the public. Had they represented money loans, a considerable liquidation of the property holdings of the merchants would necessarily have taken place, which certainly did not occur. McOenachan, for example, frequently sold large amounts of powder and lead, usually imported from St. Eustatius, to the Commissaries of Military Stores. For some of these supplies he was paid 1757 specie dollars in July, 1781.26 That these were private transactions, not made with government credit, is seen in the refusal on one occasion of McClenachan and John Holker, whom Congress already owed for clothing, to deliver a cargo of lead until it was paid for. Apparently this was done by Robert Morris out of his own pocket, for the lead was urgently needed.21 There is abundant evidence of public services by Philadel­ phians in official capacities. Matthew Irwin was a Deputy Commissary of Issues for Congress in 1777 and became a Quartermaster General for Pennsylvania in 1778.28 The Irish merchant Meases and Caldwells were great clothing suppliers

25 Nos. I, 2, of the twenty limp rag books constituting a Register of Loan Office Certificates of Penna. This is a copy made in 1784 by Thomas Smith, now in the Treasury Dept. 26 Rec. Book no. 144, p. 39; also no. 92, p. 2, 110. lIS, p. I, '110. IJ2, p. if/, and doc. 22915, Div. of Old Recs. '1/1 Anecdote of Richard Peters, in T. Westcott, Historic Mansions of Phila., p. 389. 28 Burnett, Letters, II, 408 n.; PenfIIJ. Archives, 1778, p. 166; he and YcClenachan were also Penna. agents for privateering aoo prizes: Penna. Archiws, 17790 p. 768, Col. Rea. Penna., XI. 724- 156 BUSINESS ENTERPRISE: REVOLUTIONARY ERA for Congress and the state,29 Samuel Caldwell and James Mease being Oothiers General of the Continental forces after ~777, handling vast sums of money; one commissary alone drew 486,176 dollars worth of supplies from them in 1777.80 They also sold in a private capacity to such officials as the Commissary General of Military Stores, and to the Medical Department. 81 That they were eager for gain is clearly shown by the participation of James Mease in the profiteering scheme of Benedict Arnold and merchant William West in 1778. European contacts were also had by the Caldwells during the War; in 1783 they paid George Cabot of Beverly, Massachu­ setts, a sum on account of a, correspondent in Bilbao.82 Another merchant who sold goods to the public on occasion was John Donaldson,8s probably of the firm of Donaldson and Coxe. It should also be noted that Thomas Mifflin, partner of a merchant brother in Philadelphia,84 was twice Quartermaster General of the Continental forces. Though he had been a well­ to-do Quaker before the war, Centinel attacked him in 1788 for alleged irregularities in his public accounts 85 - a charge almost inevitably lodged against anyone holding public office in those suspicious days. A lesser figure in the Continental service was the merchant Richard Bache, inspector of flour and meat for the army in 1778 and Postmaster General from 1776 to 1782.88 He was the son-in-law of Benjamin Franklin and brother of a loyalist merchant, Theophylact Bac~e of New York. 29 Campbell, Friendly Sons 01 St. Patrick, pp. 102, 103, 121, 122. 30 Doc. 14668, Div. of Old Recs.; cl. also Penna. Archives, 1777, p. 187. 31 E. g., sale of tea and duck by James and Andrew Caldwell, Nov., 1780, Rec. Book no. Il4, pp. 24, 27, also no. 132, p. 350, no. 133, p. 41, Div. of Old Recs. 32 Receipt dated Aug. 2, 1783, in BroW1l' and Thorndike Papers, in Essex Institute. 33 Rec. Books no. IIS, p. II, no. 122, p. 159, Div. of Old Recs. 34 CI. Henry Simpson, Emilwnt Philadelphians, p. 693. 35 Independent Gasette, May 24, 1788. 36 Campbell, o/>. cit., p. 140; Penna, Archives, VI, 234. PENNSYLVANIA TO NORTJ;lERN VIRGINIA 157 The post-war business importance of several other such persons may be largely explained by the extraordinary experience they gained in such public work. Typical cases are those of young Israel Whelen and Robert Lettis Hooper, both Congressional commissaries. Hooper's career is particularly interesting. A former western land surveyor who had lost heavily in mercantile ventures, he became a Continental Deputy Quartermaster in 1776, then a Superintendent of the Conti­ nental magazine in eastern Pennsylvania, and finally an Assist­ ant Commissary of . Purchases in those parts. He was once court-martialed on the charge of using public goods for pri­ vate ends (being acquitted in what President Reed said was a poor trial, after which Hooper" beat up" the attorney who opposed him). On anothet occasion he was temporarily sus­ pended from office together with Nathaniel Falconer, later a commercial agent of Robert Morris, and with Jonathan Mifflin, Jr., a nephew of the Quartermaster General, for purchasing at excessive prices. Hooper was eventually recommended for a second court-martial in 1780 (which never came off), but in 1781 he finally established himself by marriage with a widow .. blessed withal with a plentiful Fortune" as he said. Sf Tak­ ing over the management of the widow's ironworks, he stood prepared, by reason of army experience and his fortunate marital alliance, to engage in promising post-war speculations. A more important type of business favored by conditions in Philadelphia is illustrated by the career of Haym Salomon. 88 This trader, who sought permission to sell supplies to the American troops in 1775, was forced tQ flee from New York

31 C/. excellent article on Hooper by C. H. Hart, in Penna. Mag. Hist. Biog., XXXVI, pp. S8-Bg. 38 M. C. Peters, .. Haym Salomon, Financier of the Revolution," in InA/I Who Slood by Washi"fJlon, has considerable to say about his work; Qarlet E. Russell, HlJym SlJ/omon IJnd lite American Rtf/olulion, is very uncritical and is severely taken to task by Max Kohler, HlJym Salomon, pp. 8-14, but some of Kohler's statements are but inferences. Suffice it here to state, as seen in Chapter Six, that Salomon', work for Morris was desired by others, which would indicate that it was profitable. 158 BUSINESS ENTERPRISE: REVOLUTIONARY ERA in 1777, arriving in Philadelphia that year apparently in a destitute condition. Possibly aided by generous relatives, he became a commission agent in an exchange brokerage business and soon began to handle biIIs on France for John Holker and Robert Morris. He also negotiated public securities and biIIs of exchange for local merchants, probably converted a "Gen­ tIemans Bond" held by Philemon Dickinson in 1781 into "Certificates bearing French interest," handled claims for furnishing supplies to the army, and became a foremost finan­ cial figure of Philadelphia. In June, 1783, he could write .that his business was so extensive that he was "generally known to the Mercantile part of North America." Salomon seems also to have negotiated bills for the captured officers of Corn­ wallis who were held in Lancaster in 1782. Joshua Isaacs notified him of this opportunity, "could you fix upon Some method how to get the Money out of N ew York-and this I think You can easily do from the connections which I am in­ formed you have at Philadelphia." Salomon replied that h~ could do so for the entire captured force, and profitably, if the bills were drawn right. Isaacs replied warning him to hurry as other persons were after the business. Though Salomon denied to a relative in 1781 that he was rich, he was a power­ ful figure by the end of the war when he sold gin in the New York market through the loyalist trader Daniel McCormick. 89 There he returned in 1785, only to have his successful career cut short by death. Not· all Philadelphia merchants were so largely concerned with public business. Stephen Girard was an enterprising young man who supplied the needs of the civilian population. A wholesale dealer in salt, rum, wine, and coffee (and some munitions), he only arrived in Philadelphia late in 1776 but entered upon an active career at once. Writing his father in 1778 to send a shipload of commodities from France, Girard

39 Haym Salomon Letter Book, 178I-lif!3, passim. The bills of Cornwallis' officers were given at 20% discount. PENNSYLVANIA TO NORTHERN VIRGINIA 159 declared that" It is impossible to lose on such a venture. I believe, that, barring accidents, there ought to be a big profit in view of the high prices of every kind of merchandize in this market." His brother in the West Indies was to send salt or syrup to Philadelphia "where you will make a big profit on your cargo after deducting the insurance premium." By 1779 Girard had increased his working capital more than 10,000 livres since the evacuation of the city by the British, though they had caused him heavy 10sses.40 The strenuous Charles Biddle was another successful captain and merchant in these years, running cargoes between Philadelphia and the Carolinas, St. Kitts, St. Eustatius, and L'Orient, France. In 1782 he took a ship out of Baltimore intending to export . tobacco from Virginia for John Ross and John Holker, but sold the ship for 50,000 dollars cash at Cape Fram;ois. By such ventures, and particularly by the profitable sale of wine in Philadelphia, Biddle could admit in 1782 that he "had at this time acquired some property. . . ." n The privateering game in Philadelphia had its ups and downs. Its larger significance here is in the associations it pro­ moted rather than in its net profits, which still remain conjec­ tural. A self-confessed successful trader and privateer owner, however, was young Thomas Learning, Jr., who stated that he was " very lucky in Arrivals, and also in Privateering (which I considered the most beneficial Way, in which I could serve Myself and the Publick)." This offset his losses in currency and securities." Robert Morris was also said by a contem­ porary to have gained greatly from privateering.48 Among the Morris associates in this field Blair McClenachan was partic­ ularly active, being also a state agent for handling and out-

40 J. B. McMaster, Stephen Girard, pp. 16-19; he also engaged in privateering. 41 OIarles Biddle, Autobiography. passim. 42 Pent/4. Mag. Hist. Biog., XXXVIII, n6 fI. G The translator of Chastellux, Travels, I, 1!)9-201 D.; ct. also Jameson, American Rewlutiorl, p. 104- 160 BUSINESS ENTERPRISE: REVOLUTIONARY ERA fitting privateers and prizes in 1779, just as John M. Nesbitt and John Nixon were Congressional prize agents a year later. McClenachan and Nesbitt were foremost among the many privateer owners in the generally successful year of 1776, Nesbitt frequently acting with his trading associates, Morris, John Ross, and Stephen Stewart of Baltimore. Morris him­ self was connected with innumerable such persons, sometimes from other states, in financing privateers. Bingham was one of these. Merchant Michael Gratz became associated with Morris and Carter Braxton in the Shippen, prizes of which were sold at Martinique in 1777 for small profits. This same group, together with Ephraim Blaine and Matthew Irwin, was also concerned in the famous General Mercer in 1780-1781; ownership was divided ·among as many as fifteen persons to offset possible losses. ~~ Two privateers with unusual success in the latter part of the war were the Hyder Ally and the Holker, Nesbitt and Conyng­ ham and John Wilcocks being original owners of the former!5 The latter, belonging to McClenachan, Morris, John Hol­ ker and others, was most active until sunk in the West Indies in 1783. She took sixteen prizes in three weeks in these waters.46 In August a Philadelphian wrote, "McClenachan is principal owner of all the prizes, he fits out .the Enemy's ves­ sels as he takes them"; 41 but in April, I 782, Morris wrote McClenachan that he was sorry to hear that he was pressed for money, adding, " I don't approve of your ideas on money received from Holker's prizes. I never thought I got my share

44 Charles H. Lincoln, Naval Records of the American Revolution, passim; Scharf and Westcott, Phila., 1,326; Byars, B. and M. Gratz, Preface, p.21, also pp. 192, 197 n., 229. 45 Conyngham, "Reminiscences," loco cit., p. 234. 46 Amer. Cath. Hist. Soc. Researches, XXV, 8; Scharf and Westcott, Phila., I, 423. 426. 47 John Walker to General Weedon, Aug. IS, 1780, in Thomas Balch, ed., Papers Relating to the Maryland Line, p. lIS; "inI1'llmerable" prizes were being brought into Phila. at this time. PENNSYLVANIA TO NORTHERN VIRGINIA 161 of that fast enough." 48 Although still another contemporary called McClenachan a successful speculator in privateers/8 it is obviously difficult to generalize about the gains. of even that outstanding figure to say nothing of the countless others. It should be added ~t certain lawyers, like James Wilson, had a considerable practice from privateering cases. Because of enemy privateering, insurance rates on Phila­ delphia ships rose to great heights. The extent to which this stimulated the formation of marine insurance underwriting groups is beyond computation, but even Baltimore merchants were eager to invest in Philadelphia marine policies during the war. Some of the promoters of the later Insurance Company of North America participated in the war-time underwriting of the Donaldson and Coxe associates. From the few policies now available it appears that the enterprising McQenachan was likewise active in marine insurance. In March, 1776, he and others underwrote a venture of William Bell from St. Eustatius at forty per cent, half to be returned to Bell if the schooner arrived safely.50 Through the office of Benjamin Fuller two other Philadelphians insured an adventure to Havana in 1781: but if they did this alone it was certainly unusual, for high rates demanded large groups and rates had probably not fallen much by that date. Even in 1783, with rates presumably lower, ten and fifteen persons were associated in single underwritings.11 Philadelphia was an important center for the sale of bills of exchange and foreign drafts. Their value fluctuated with their scarcity and with news of the quotations in Boston. When Morris became Financier he complained of the habit of dis-

48 Morris to McOenachan, April 22, 1782, Morris Papers in New York Public Library. 49 Conyngham, .. Reminiscences," loc. cit., p. 245; cf. similar statement in Westcott, Historic MlIMioll8 of Phila., pp. 245,246. 6OJ. A. Fowler, ["""ranee ill North America, p. 29. 611bid., p. 34; Gil1ing~am, ["""ranee in Phila., p. 86; policy on sloop Betsy, Aug., 1783, Misc. MS II Ships," in New York Hilt. Soc. 162 BUSINESS ENTERPRISE: REVOLUTIONARY ERA counting government bills at exorbitant rates. Bills on France, he wrote in August, 178i, realized but one-half or two-thirds of their European values, whereas they should have realized at least eighty per cent. A merchant, sensible of fluctuation in exchange, would rather "wait, with his money in his chest, the event of pUblic necessity, than invest money in bills, which may shortly after be bought on better terms by his more cautious neighbor." 62 The bills were also depressed because of the " concourse of vendors." 58 Merchants of distant places-perhaps also of N ew York u_ negotiated bills in Philadelphia when rates were favorable. Josiah Hewes acted as the Philadelphia bill agent of Aaron Lopez of Rhode Island, and Meade and Company as the agent of Codman and Smith of Boston.65 The greatest bill negotia­ tors in Philadelphia, however, were the French agents Wads­ worth and Carter, who employed John Chaloner. He wrote Wadsworth on July 25, 1780, that exchange was at sixty per cent on specie and forty-five per cent on thirty-day bills; that " The necessity of the French for money will oblige them to draw frequently & lower Exchange with you, this may afford a Speculation worth attending to.... " 68 At one time in 1781 Chaloner received from Carter 484,260 livres in seventy-three sets of bills to negotiate. They were "quick" in Philadelphia on July 25, 1781, according to Carter, who accordingly stopped his agent Halsey in Boston from selling at large discounts. 67 On March 5, 1783, Carter acknowledged having received 52 Sparks, Diplomatic Corresp., XI, 419, 420, 424, 431. 53 Sumner, Financie,., I, 257, shows how the government lost thereby. 54 On Aug. 5, I7&>, the Day Book of Glassford, Gordon and Monteath mentions cash paid for their New York agent to merchant Henry White of New York, for bills negotiated in Philadelphia. 55 To George Meade, July 28, 1780, Codman and Smith Letter Book, cancels buying orders since bills have arrived at Boston from the South­ ward and are IlIOW selling for same rates as in Philadelphia. 56 Wadsworth Corresp. 57 Carter to Chaloner, Dec. 12, 1781, Chaloner-White Papers; Carter to Wadsworth, July 6, 25, 1781, Wadsworth Corresp. PENNSYLVANIA TO NORTHERN VIRGINIA 163 £129,570 for bills sold in Philadelphia at various times for the partnership. Between June 26 and OCtober 4, 1782, at least £36,410 of bills were sold on its account there to some thirty persons including Mordecai Lewis, Luke Keating and Com­ pany (a brokerage firm), Josiah Hewes, William and Joseph Gibbs, and John M. Nesbitt. 88 Professional brokers were estab­ lished in Philadelphia at least by 1782/8 probably as a result of such extraordinary war-time activity. Certain manufactures of Philadelphia and its countryside were also stimulated by the war. Thomas Leiper, tobacconist and tobacco purchasing associate of Levi Hollingsworth, gained at the expense of the principal snuff manufacturing concern of the city, which was owned by loyalists.so Mark Willcox was a paper manufacturer who sold to Congress, the states, and Robert Morris. The unusual demand for his product for mak­ ing paper money, paid for by Congress on one occasion in gold, gave him unexcelled opportunities.81 Samuel Wetherill managed an unsuccessful textile manufacture in 1775, and during the war he continued a private in~erest in this field­ probably with Congressional encouragement-and also tried to make dyes!· In the neighborhood of Philadelphia a number of the pre-war iron bloomeries were confiscated because of British ownership, and at Andover, New Jersey, Congressional contracts were filled by a Philadelphian, Whitehead Humph­ reys. Merchant Joseph Ball of Philadelphia was also interested'-

58 Wadsworth and Carter Waste Book, 1783-1784; also sales of bills under Jan. I, 1782, Wadsworth Corresp. 59 On July I, 1782, Levi Hollingsworth Letter Book, I~I782, mention is made of exchange sold by a broker. It has been noted that this was also true in Boston. OOF. W. Leach, "Old Phila. Families," "Leiper"; Jackson, Mcwkel SIred, p. 142. 61 Leach, op. cil., "Willcox"; ct. remarks on great 91:imulus to paper­ milling industry in Penna. in PenM. Mag. Hist. Biog.• L, f9. 20. 62 Scharf and Westcott, Phila., III, 2272; S. N. Winslow, Phila. Mer­ chanls, pp. 138. 1390 164 BUSINESS ENTERPRISE: REVOLUTIONARY ERA in an iron-works in 1781.68 However, there is no evidence that Philadelphia merchants invested heavily in manufacturing of any kind during the busy war years. The Revolution acted as even more of a commercial stimulus to parts of the ~pper South, especially to Baltimore, Mary­ land, and Alexandria, Virginia. These places benefited to an unusual extent from the wheat and flour trade, for the war encouraged the raising of wheat in place of tobacco in both states.u The tobacco trade continued to be important, however, . and, though considerably interrupted by war-time circum­ stances, likewise benefited certain American merchants, partic­ ularly by reason of the withdrawal of British factors from the tobacco country. The unanimous testimony of both contemporary and sec­ ondary writers is that Baltimore expanded in every way during the conflict. Protected from British sea raids, developing into a leading port for the West India trade, freed from British control of the tobacco trade and Annapolis' colonial customs monopoly as the official port of entry, the town rapidly out­ grew its provincial character.65 Except for short periods, its bay was never completely closed by enemy cruisers. prior to 1781; but on several of the earlier occasions, goods for Baltimore could only be unloaded at Edenton or several other places in North Carolina. Baltimore also served as a depot for Congressional supplies of flour, iron, and salt.66 ,Since

63 On Humphreys, cf. J. L. Bishop, American Manufactures, I, 544; on Ball, Penna. Mag. Hist. Biog., XLVII, 187. R. L. Hooper claimed to have established in 1779 a large shoe factory in Northampton Co. for the Board of War; Samuel Hodgdon of PhiladeLphia and William Alexander of New York were interested in the Hibernia furnace at Mount Hope. 64 Cf. L. C. Gray, Agriculture in Southern U. S., II, 607, 608. 65 C. Hall, ed., History of Baltimore, I, 39, 455, so6; Johann Schopf, Travels, 1,326,327; Brissot de Warville, New Travels (1794 ed.), II, J65; Scharf, Chronicles of Baltimore, p. 231, quoti41'g a contemporary. 66 Robert Purviance, A Narrative of Baltimore, passim; L. C. Gray, o.P. cit., II, 582, 583, on the wheat supply, and p. 595 on Maryland's freedom from raids, as also C. Hall, op. cit., I, 455. PENNSYLVANIA TO NORTHERN VIllGINIA 165 Maryland's customs duties were generally suspended in 1777, and since the embargo on the shipment of grain from 1778 to 1780 was so frequently lifted to permit trade with New England, Virginia, and the French fleet, and so attended by fraudulent practice~ Baltimore must have enjoyed virtually free trade"? A customs house was established here in 1780. A New York merchant, Cornelius Ray, found the place in 1782 more advantageously situated for commerce than Phila­ delphia itself"· Its prosperity is further suggested in the amount of building a French commissary noticed there that year-such as the .. elegant" inn Daniel Grant had just com­ pleted... An enterprising business spirit was evident around Balti­ more. John Adams caustically observed in 1777 that the" men of property" were intent upon making money; that specula­ tion abounded, attended by little public spirit. 10 There was, however, conservative feeling among the older merchants if it is true that they, almost to a man, refused to take advantage of a state law to payoff British debts in depreciated currency.11 But new merchants largely controlled Baltimore's war-time trade. Such prominent persons as Englehart Yeiser, William Wilson, and James Darke came there only a few years before the war; and around 1775 merchants from foreign countries and from other parts of America crowded into the town. Be­ fore 1783 these arrivals included the subsequently important Christopher Johnston, William Patterson, George Salmon, and Robert Gilmor. Six French commercial houses were also founded in Baltimore during or soon after the war.72 The rea-

ff1 J. W. Griffith, A",""I "f Balti_~, p. 75; Beverly Bond, Jr., .. State Government inYary!and, 1777-1781," inf,,/.. u HO/lkirJI SfIuliu, XXIII,8'!-92_. 68 Ray to Philip Van Rensselaer, Dec. 2, 1782, doc:. 11275, Emmet Coli.; he had just returned from France and the West Indies, apparently OIl business. tlHOfW'fflJl of Clorule BlorscluJrd, p. 169; Scharf, CAronickl of Baltimor~~ p.206. 70 Adams, Worb, II, 4J6. 71 Griffith, A-u of Balli_~, p. 86. 72 Ibid., lIP. 64. 6S, 81, 82, 102; Scharf. "1. Cil., pp. 71, 139- 166 BUSINESS ENTERPRISE: REVOLUTI01:iARY ERA sons for all this are evident in the writings of George Woolsey of Woolsey and Salmon: on April 15, 1778, for example, he as­ sured an Irish merchant that" since the Commencement of the Warr numbers have made astonishing sums in this country­ among the rest we have no reason to complain. . . ." 78 The lawyer Ridsell thought that same year that in Baltimore" dis­ tant Prospects" appeared" lucrative," though he complained of business being bad at that particular date.14 The place advanced in other ways. In 1781 much marsh land, reclaimed through the efforts of Englehart Yeiser, was added to the town. Linen, woolen, paper, card, and nail manu­ factories were established.15 Merchants revealed new coopera- . tive business powers when they floated a loan to purchase clothing for LaFayette's soldiers in 1781, much as Philadelphia merchants had done in establishing a "bank" for a similar purpose some months before. They could do so since some, like Jeremiah Yellott, had been successful in privateering, and others, like William Patterson and George Woolsey, had been successful in the West India trade.16 The career of Rob­ ert Gilmor is particularly impressive. He only came to Balti­ more in 1778 from a village on the eastern shore of Maryland j later went to Holland as partner and correspondent in the tobacco trade for Bingham and Inglis of Philadelphia j then returned home after the war to replace Samuel Inglis who had died at Baltimore while busily concerned in their work and that of Willing and. Morris.n Gilmor's connection, however,

73 To Waddell Cutmingbam, Woolsey and Salmon Letter Book, 1774-1784- 74 Doc. 1037, 'Emmet Coli. 75 Scharf, Hist. of Baltimore City and County, p. 61; Griffith, Annals, pp. So, 81. 76 Griffith, Annals, p. i'8; Sioussat, Old Baltimore, p. 154. There is a good letter on war and trade by Patterson, from St. Eustatius, Jan. 16, 1777 • . in Deane Papers (Conn. Hist. Soc. Coli.), p. 63. He s·hortly after came to Balbimore. 77 Robert Gilmor (a son), .. Recollections," in Md. Hist. Mag., VII. esp. p. 236; C. Hall, Baltimore, III, 624, 6zS; Morris to Gilmor, Feb. 14, 1784. Morris Papers in New York Public Library; cf. also, Margaret L. Brown. PENNSYLVANIA TO NORTHERN VIB.GINIA 167 indicates that Baltimore continued to be somewhat of an eco­ nomic appendage, as well as a rival, of Philadelphia. Just as soon as the British had evacuated Philadelphia in 1778 plans were laid to re-establish regular water transportation facili­ ties between the two places. Flour and tobacco were principal exports of these Baltimore merchants. The State of Maryland needed the first for pur­ chasing military goods in Havana in 1780; it was also so used by Congress in 1781 to exchange for gold and silver in the West Indies where flour was always badly needed and specie plentiful." The demand for flour was such that, in spite of the risk involved, Baltimore merchants are said to have grown rich selling a barrel costing four Spanish dollars at home for thirty-six such dollars at Havana.79 Despite occa­ sional state laws limiting profits on wholesale and retail sales in Maryland, flour-milling and the flour trade certainly ex­ panded. That Baltimore exported quantities of the article to the Continental troops, has been noted, and John Holker secured a supply there for the French fleet on one occasion through merchant William Smith.so The Ellicott brothers, who had come from Bucks County, Pennsylvania, and established themselves as millers at Baltimore in 1774, had such an in­ creased business by 1783 that they went into the foreign flour trade on their own account. The Maryland Hollingsworth family was especially prominent in milling during the war, Jesse Hollingsworth carrying on the Baltimore end of the business.1l Indeed, a few years later rival merchants of Alex- .. William Bingham, Eighteenth Century Magnate," Penna. Mag. Hist. Blog. LXI, J96. '18 Burnett, utter.r, VI, 88, 8g, r;n; Bond, .. State Government in Maryland," p. 81. '1lt Kuhlmann, Flo.,,. Milli"l1 1111lv.rtry, P. 39. He makes some interesting remarks on the resulting independence of Baltimore from the influence of Philadelphia, as capital accumulated, etc. 80 May 19. 1m ClJaloner and White Letter Books. 81 On the E1licotts, c'. Scharf, Balti_, City tJIId COtmty, pp. 374. 375; W. B. Hollingsworth, HollirlglflJlWtla GeMological Memoranda (Baltimore, 1884), pp. Prlo, and above OD Levi Hollingsworth. 168 BUSINESS ENTERPRISE: REVOLUTIONARY ERA andria could point out enviously that Baltimore, though young in the flour shipment trade, had adopted all the ways of Phila­ delphia in the foreign business.82 The importance of the war for such later developments is readily seen in the work of the house of Woolsey and Salmon, established in Baltimore in 1774. Though business was occa­ sionally dull for them in 1776 because of a shortage of ships and flour (which, when available in September was recklessly shipped regardless of quality) ,83 it soon picked up with suc­ cessful voyages to the West Indies. They participated with Thomas Russell and others in very profitable voyages to St. Eustatius that year, jointly financed even with Philadelphians." Such ventures actually resulted in an occasional excess of West India products, as in July, 1778; and in large quantities of European goods, as in September, 1779, when Salmon wrote that there were 75,000 bushels of salt in Baltimore but still commanding a good price.85 Such surpluses occasionally confounded the speculators, though there usually was demand for European goods especially. In April, 1778, Woolsey and Salmon sought to interest an Irish merchant in shipping linens and woolens, suggesting that ship's papers be secured in France to make them look like French property; if necessary, English and Irish goods might be purchased in France at but little higher prices. The firm 82 Petition to Va. House of Delegates, William and Mary College Quart., 2nd ser., II, 289- 83 To John Pringle, April, Aug., Sept., passim, Woohey and Salmon lAter Book. 84 Woolsey to Salmon, June 18, 1776; Woolsey to Benjamin Titcomb. Dec. 20, 1776, ibid. Woolsey cleared £75 on a £50 investment in one of Russell's voyages. He had a one-twenty-fourth interest in another return cargo worth ,h4.ooo. He had gone into retailing and had done very well in that, also. 85 Letter Book, passim. Thomas to Levi Hollingsworth, Baltimore, Dec.. 1, 1778, mentions the many arrivals lately and more expected daily: Hollings­ worth Misc. Papers. In Aug., 1778, Chaloner and White heard that Baltimore was deluged with importations of rum, etc., and that prices were falling: Olaloner and White Letter Books. PENNSYLVANIA TO NORTHERN VIRGINIA 169 assured him that "our Captains that can run into our Capes at night & that knows the most of the Inlets, seldom meets with any accident"; if worst came to worst, goods could always be landed in North Carolina and sold there; tobacco offered a lucrative return voyage.as Woolsey and Salmon seem to have had an increased interest in European goods after 1778, though the trade in West India products continued. Possibly the latter was less profitable than formerly, as Wil­ liam Patterson suggested on leaving St. Eustatius for Balti­ more in 1778 and William Bingham on leaving Martinique for Philadelphia in 1780. Certainly after 1778 Woolsey and Sal­ mon were greatly interested in tobacco shipments, the principal return item to Europe, which probably encouraged direct voy­ ages abroad because the West Indies had become glutted.8f By 1780 this firm was planning direct shipments of tobacco to France in care of the Americans James Cumming, James Moore, the Nesbitts at L'Orient, and the Johnsons at Nantes. Possibly to this end they were interested in the construction of three brigs in 1780. The shipments of Woolsey and Salmon also included flour and wheat, especially in the early and closing war years. In 1776, together with John Pringle of Philadelphia, they sold flour and bread to the Maryland Council of Safety for a St. Eustatius shipment in which they also had a private interest. Exporting flour to the islands continued for several years, though Boston and New England generally took much of the supply of the Chesapeake region. In 1780 Woolsey and Salmon also shipped flour to Havana and New Orleans, and at the end of the war the demand for wheat in France and Ireland began to .. tempt" them. In all such business Woolsey and Salmon cooperated with

86 To Waddell Cunningham, April IS. 1778. Woolsey and Salmon Letter Book. Woolsey bad suggested that Salmon do the same thing when he urged him to come to America f'l'OID Ireland in 1m. fr1 Letters of July 3G, Aug. 26, 1778. ibid. Trade with the Dutch and . French isIaod.s was undesirable then because tobacco prices were so low there. 170 BUSINESS ENTERPRISE: REVOLUTIONARY ERA other individuals, especially with Pringle, possibly a silent member of the house. The Moores and Caldwells of Phila­ delphia also occasionally participated in their West India voy­ ages and managed the sale of their merchandise at Philadelphia. Woolsey and Salmon traded in tobacco with Stephen Stewart of Baltimore, and had occasional dealings with other fellow townsmen like James Dunlap and Lux and Bowly. William Patterson was their correspondent at St. Eustatius until 1778; after that, the Blairs of Boston, Samuel Curson, and one, of the Sterretts of Baltimore acted for them on the islands. In the early profitable years of the war, young William Taylor got his start in business by managing the affairs of the firm at Baltimore, for one-third of the profits, when George W 001- sey was ill. Woolsey said at the time that Taylor would un­ doubtedly make out well by the arrangement. Usually such persons formed the popular share-and-interest groups for commercial or privateering ventures, some of the latter also very profitable. Doubtless many local merchants also had a common interest in underwriting marine insurance, even at Philadelphia. Salmon and Woolsey wrote to Pringle" Jan­ uary 3, 1779, for example, instructing him to put them down for £200 to £400 on all good Philadelphia marine risks, in­ forming him that they had underwritten some £3000 in his name at Baltimore. They also invested in this fashion for the Caldwells, which again points to the common interests of Baltimore and Philadelphia-an interdependence shattered by the approach of peace, as shown in the letters of Salmon in 1783 and 1784, emphasizing the cheaper produce and shipping advantages which he claimed Baltimore had ov,er its rival. Baltimore's war-time tobacco trade is well illustrated in the correspondence of Wallace, Johnson and Muir of Annapolis and Nantes, since such Baltimore merchants as Christopher Johnston, Robert Gilmor, the Sterretts and Bowlys were occa­ sionally concerned with them.ss Late in 1781 this Nantes firm

88 Wallace, Johnson and Muir Letter Book, passim. PENNSYLVANIA TO NORTHERN VIRGINIA 171 shipped a cargo of goods to fifteen Baltimore and Philadelphia merchants, apparently in return for a load of tobacco which these persons had jointly exported to France from Alexandria. Among the fifteen were such other Baltimore business men as Abraham Van Bibber, William Naill, and Buchanan and Blaine.·8 A similar group there had considered organizing in 1777 a company to trade with France and Holland, to be composed of twenty or twenty-five partners, each putting up £5000 of capita1. 80 Public supplies were handled in Baltimore by a number of persons. Henry Hollingsworth, the flour-milling commissary on the Elk River, has been mentioned; in the first half of 1778 his brother, Jesse Hollingsworth, sold Elias Boudinot, Conti­ nental Commissary of Prisoners, more flour than any other person.81 The Purviance brothers were also very active hand­ ling public supplies, but require only passing attention since they were of little importance after the war. Lux and Bowly sold the Virginia Commissary General all sorts of stores, such as 500 pairs of shoes in 1777. They also financed the military purchasing that year by Abraham Van Bibber of Baltimore, and Richard Harrison of Alexandria, at St. Eustatius and Mar­ tinique. 8J Van Bibber and Harrison, who worked in turn for the Virginia Commissary, speedily grew sick of their public activity there though it was conducted on the usual commission basis; they suspected "abuses carried on much against the Publicks Interest" on the islands!· Both Samuel Smith and Stephen Stewart at one time held the important Continental Marine purchasing agency at Baltimore, and Wil­ liam Smith sold wheat and flour to the French in 1780, though this was strictly private business whereby he got into trouble 89 Ibid., letter of Dec. 16, 1781, to such merchants. 110 William Smith wrote James Wilson of Philadelphia, June ,/, 1m, about the plan, asking if he or Donaldson wanted shares. Gratz Coli. 91 Elias Boudinot Ledger, p. 69. 92" Correspondence of Aylett," Tyler's QIUJ,.'. Mag., I, 88, 146 et passim. 93 Ibid., p. 101. 172 BUSINESS ENTERPRISE: REVOLUTION ARY ERA with commissioners who wanted the provisions for the Conti­ nental troops.04 Rum was taken to the American force at Yorktown in 1781 by various sutlers from Baltimore, who also carried provisions to the Continental headquarters at the head of the EIk.°S The same year, Robert Smith, trading at Havana, was made Continental agent there by Robert Morris, on a commission basis. It was an office, said Morris, which would also bring Smith private business. 98 Since privateering out of Baltimore was frequently success­ ful it is important to note its prominent participants. They were probably most active in 1780 and 1781, indicating a long period of interest. Richard Curson was among the leaders; others of post-war importance included Jesse Hollingsworth, John Sterrett, Daniel Bowly, George Salmon, the McKims and Smiths. These worked as members of groups, of course. Bowly, for example, owned privateers together with any num­ ber of persons. David Stewart was also a pivotal figure, hav­ ing ownership relations principally with Bowly, Lux, ancr Salmon. Still another important privateering group was headed by the Pattersons. Merchants from other states sometimes owned privateers together with these Marylanders, as did Rob­ ert Morris and the Nesbitts of Philadelphia and Charles Simms 9f and William Hunter of Alexandria. . Baltimore was intimate with Alexandria in the commercial line during the war. Between them, on the principal road south, tri-weekly service had developed by 1783, for Alexandria was the natural depot for Virginia state supplies imported during the war from Maryland and the North.os As the two places 94 Cf. Md. Hist. Mag., IX, 242-244, 246, 248. 95 I. J. Greenleaf, Jr., "Provisioning the Continental Army," in Md. Hist. Mag., ill, 125. 96 Morris to Smith, July 17, 1781, in Sparks, Diplomatic Corresp., XI, 390,391• 97 B. C. Steiner, "MarYland Privateers in the Revolution," Md. Hist. Mag., III, 100; cf. also Scharf, Baltimore CitJ/ alld CountJ/, p. 60; Hal1. Baltimare, I, 455. 98 Cf. Letters of Governors of Virginia, II, 161, 389. PENNSYLVANIA TO NORTHERN VIRGINIA 173 developed, however, a certain rivalry continued, especially in the grain-carrying trade." Alexandria's salvation during the Revolution lay in her growing interest in grain, and in the possession of enterprising local merchants. Such things distinguished her from Dumfries, her principal colonial rival, which had a more specialized in­ terest in tobacco and whose traders, more of whom perhaps were loyalists, apparently failed to grasp the opportunities offered by the withdrawal of British factors in 1776. In Alex­ andria, by I77S, such merchants as Jenifer and Hooe, Fitz­ gerald and Reis, and Harper and Hartshorne were already active in wheat purchases. Josiah Watson, who, like the Harts­ hornes and Herberts, had wealthy Quaker connections in Phila­ delphia, was interested in both wheat and tobacco. William Wilson handled tobacco and British goods, while Carlyle and Dalton specialized in West India produce.loo The outbreak of hostilities gave these merchants new oppor­ tunities since there was a scarcity of manufactured goods in Virginia. It is true tha~ these could only be purchased at an l II amazeing pitch .. in the North/o but the price of Virginia's staples had also risen considerably by the spring of 1777. The latter rise was due in part to the activities of speculators, in­ cluding a partner of Robert Morris.'o2 In March, Richard Adams, who was trying to purchase 2000 barrels of flour for the Virginia Commissary General, wrote that II the prices of all Our Commoditys seems to be Rising here fast, Particularly Hemp and Tobo; large Sums of Money being I am informed Lodged on the different parts of this River for that pur- pose .•••" I ..

99 Fairfax Harrison, Old PritlCe Willio"" II, 417, gives this as one ex- planatiOll of the rise of Virginia tariff rates after 1781. 100 Ibid.. II, J89. 417. 101 According to William Aylett, in T,ler's Quarl. Mag., I, 92. 102 According to Patrick Henry, in Lette,.s of GO'Vn'fUJ"S of Vi,.ginia. I, 129- . 103 Tyler's QlIDrl. Mag., I, 96. 97. 174 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Flour needs of the state and of Congress helped make Alex­ andria an important center for collecting articles of public use. Virginia required flour in 1776 and 1777, for example, to send to Richard Harrison at Martinique to enable him to make his military purchases~ Certainly by 1782, because of both public and private demands, Alexandria was one of the important wheat export centers of Virginia. 1M The year before, eighty­ one Alexandria merchants had asked for a state flour inspec­ tion there, arguing that "the Manufacturing of Wheat has been for some years past carried to such an extent by the In­ habitants of the Western Counties as to render Flour and Bread Staple Commodities of the State. . . ." 105 Alexandria's interest in the tobacco trade was likewise stim­ ulated by state activities: a public commissary was stationed there to collect tobacco for French shipments. Private pur­ chasers were of course numerous, John Fitzgerald, Richard Conway, and Robert Adam being Alexandrians who occasion­ ally had dealings in tobacco with Wallace, Johnson and Muir of Nantes. Hooe and Harrison's business was also largely in the weed whicli they shipped to the West Indies on many occa­ sions for the State of Maryland, and to Cadiz after 1779 when Richard Harrison established a branch of this house there?OS Hooe and Harrison also traded in tobacco with the Van Bib­ bers and McKims of Baltimore. In addition to this work they shipped flour in 1779 for Robert Morris, by order of William Smith of that place, and they frequently disposed ~f goods for William Bingham who in turn did work for them in the West Indies. Other goods came to them from abroad, as from 104 Cf. items relating to the collection of wheat and forage in Va., often at Alexandria, in Journal of the Council of Virginia, 1,158,159,281, II, 338 ; Letters of the Governors, III, 62, 68;. Continental Congress Papers, 192. no. 429; Tyle~s Quart. Mag., 1,154. 11,77; Sumner, Financier, I, 152. 105 William and Mary College Quart., 2nd ser., II, 288; cf. also Kuhlmann, Flout' Milling Industry, p. 32. 106 Hooe and Harrison Invoice Book, 1770-1784, passim. This firm was known as Hooe, Stone and Co. to 1774. as Jenifer and Hooe to 1778, and as Hooe and Harrison to about 1792. PENNSYLVANIA TO NORTHERN VIRGINIA 175 the de Neufvilles of Amsterdam, and they also imported from Holland on behalf of Patterson of Baltimore.loT From all such facts it seems plausible to argue that Alex­ andria experienced a "war boom" of some duration. Even in 1780 certain goods could still be sold at wholesale there for 100% advance. lOB A year later several Alexandrians, including William Hartshorne, had the excellent opportunity of selling forage and provisions for the Yorktown campaign to the French contractors, for whom John Fitzgerald acted as settle­ ment agent.10e The prosperity of the place probably explains the arrival of new merchants, such as John Harper from Phila­ delphia, and the Scot, James Wilson. It may also have en­ couraged the town's incorporation in 1779.110 That same year, Virginia "Merchants & Adventurers to Sea" requested a naval station at Alexandria to facilitate commerce, since "Alex­ andria, Dumfries & Colchester own almost all the V essells on this River, and their is scarcely a foreign Vessell but what comes addressed to some Merchant in one part of these towns." 111 That merchants of the rival places should have agreed upon Alexandria as the most suitable location for the station was, indeed, significant. A traveler might well call it " a flourishing commercial town" in 1781.112 Are-established trader described it in 1782 as "a considerable Port with not less than 30 or 40 men, some of large capital, owning & send­ ing out vessels to almost every part of the world, others pur­ suing plans of Speculation in every species of Merchandise, 107 Hooe and Harrison Journal, 1779-1783, passim; Wallace, Johnson and Muir Letter Book, under Dec. 20, 1782; Edward Channing, in Mass. Hist. Soc. Proc., XLIV, 311. 108 Byars, B. and M. Gratz, p. 193. 109 Agreement with Braxton under Nov. 2, 1781, Wadsworth COrresp. The Chaloner-White Papers for 1782 contain Fitzgerald's settlement papers. 110 Mary G. Powell, Old Alexandria, pp. 163, 313; F. L. Brockett, Lodge 0/ Washington, pp. lOS, I:a?: persecuted Quakers from Philadelphia were an important addition to the town. 111 William and Mary College Quart., 2nd ser., II, 292. 112 A. J. Morrison, ed., Travels in Virginia ifl Revolutionary Times, p. J'!. 176 BUSINESS ENTERPRISE: REVOLUTIONARY ERA watching closely the fluctuations of trade & always ready to make advantages therebye." 118 In all parts of Virginia a war-time business feature was the arrival of Northern merchants to participate in the tobacco trade. The weed was invaluable for foreign remittances, being, for example, the one product of the continent which could command cash 'at St. Eustatius in April, 1777; 114 and its price abroad mounted steadily, remaining high in France in October, 1782.115 Among such newcomers were the Jewish Cohens and Isaacs, who established themselves in Richmond in 1780 or 1781.118 The international partnership of Isaac Moses of New York, Marcus Elcan of Richmond, and Samuel and Moses Myers of Amsterdam was also still active for a short time after the peace.ll7 In 1778 the Adams brothers of Williamsburg had contemplated forming a company, includ­ ing Robert Morris, to export tobacco, wheat, and flour. They had planned to have" some Capitol Stores at the Heads of the Rivers"; goods had recently arrived from France in a ship with "about £50,000 Sterlings worth, & two other vessels, a Brigg & Schooner all private property." 118 Another Philadel­ phian similarly interested in Virginia was Michael Gratz, who secured on one occasion four-fifths of one-fifteenth share in the Gel~eral M ereer, a tobacco vessel; he had· dealings with such important Virginians as Norton and Beall and Carter Braxton.ll9 Simeon Deane of Connecticut, it will be recalled, 113 William Browne to Andrew Craigie, Feb. IS, 1782, Craigie Papers. 114 ct. Tyler's Quart. Mag., I, 100. 115 It sold there for II8% advance, O<:t. 4, 1782, possibly because of in­ creasing difficulty in shipping it from the States: Wallace, Johnson and Muir Letter Book. 116 Samuel Mordecai, Richmond in By-gone Days (1860), -p. 121 j Ame,.. lewish Yea,. Book, XXVIII, 218. 117 Announcement of the firm's dissolution in supplement to New York lournal, June 23, 1785. 118 Richard Adams to "Brother," June I, 1778, in Va. Mag. Hist. Biog., V, 293, 294- ' 119 Byars, B. and M. Gratz, pp. 186, 171. PENNSYLVANIA TO NORTHERN VIRGINIA 177 set up a tobacco house in Virginia in 1778, being a partner of the Adams brothers mentioned above; in September of that year he had bills of exchange on France to sell to Alexandria merchants.1Zo George Champlin of Newport had a ship in the tobacco trade at the end of the war, as did Codman and Smith, Caleb Davis, and "Mr. Bowdoin," of Boston, all of whom were principally interested in vcporting to Amsterdam. As has been frequently noted, tobacco was exchanged for foreign manufactures largely through voyages by way of neu­ tral ports in the Windward and Leeward Islands. Dutch St. Eustatius was notoriously open to American commerce until captured by Rodney in 1781, when Danish St. Thomas took its place. Rodney found over two thousand American mer­ chants and seamen at St. Eustatius, and, moreover, seized quantities of goods belonging to British merchants since there was a surprising amount of American tobacco especially which found its way to England through such collusion.121 Even in Bermuda, an English merchant complained to aNew York correspondent in June, 1781: .. We have very few Privateers here lately, and those in power here, encouraging the trade to the Rebel Country, by entering their Vessells as from the Cacuses in Ballast, after they have taken out their Cargoes from the Rebel Colonies, gives us a glut of every kind of American Produce. Indeed this Post may be truly said to be laid open to that kind of Trade, and the fair Trader & Loyal Subject has not an equal Chance with these Supporters of Re­ bellion." 112

120 Advertisement in MarylGfId lowf'fl41, Sept. 2g, 1778. Deane made out poorly in the end. 121 F. Edler, .. Dutch Republic and American Revolution," lohns Hopkins Studiu, XXIX, 6z, 182, 18g; J. F. Jameson, .. St. Eustatius and American Revolutioo," Amff. HUt. RnI., VIII, 686, 700; MacPherson, Amtals of ClHflmffU, III, 6s8, 6rn, 720: Asa E. Martin, ed, "American Privateers and the West India Trade, 1776-1777," Amff. HUt. Ref/ .. XXXIX, 7110-709- 123 Andrew Miller to Jooes and Ross, June 13, 1780, in Stewart and Jones Letters. , 178 BUSINESS ENTERPRISE: REVOLUTIONARY ERA The interest of Americans in this indirect traffic with Europe is indicated by the number of agents they had on the islands. In addition to all those persons from the middle states already noted, such New England commercial families as those of Jones, Cordis, and Pierce had agents at St. Eustatius or elsewhere. Such traders sometimes enjoyed exceptional opportunities for profit, as did Robert Smith of Baltimore who secured a contract at Cape Franc;;ois in 1782 to supply Spanish trqops with flour at twenty dollars a barrel, though it was said to cost only seven or eight dollars a barrel even at the Cape. 128 Rumor had it that he· split the profits with the Spanish Consul General. Most American merchants must have participated in the West India trade through such agents at one time or another. It was irresistible when such news came as to the Gratz brothers from Dutch Curac;;ao in October, 1780, that" all kinds of produce" from America were in demand.m An adverse comment as to the profits in the island trade should be noted. Robert Morris gave an estimate in July, 1779, apparently in answer to some public inquiry, of expenses and sales from a supposedly typical voyage to St. Eustatius, "not disadvantageously considered." An outward cargo of tobacco costing £15,000 could be exchanged on the island for seventy­ eight hogsheads of rum which would sell on return for £51,187. Insurance each way at thirty-five per cent on ship and cargo would amount to £23,804, however, which, together with vari­ ous other expenses, would leave scarcely any profit. Morris' deduction from this example was that money might even be lost on such a voyage, as on a similar one bringing back tea.126 But this certainly had not been true in the earlier years of the war when the traffic was so heavy, and the trade at least en-

123 Biddle. Autobiography. pp. 176. 186. 124 T. Webb and Co. to Michael Gratz. Oct. 7. 1780. B. and M. Grata, P·203· 125 To Timothy Matlack. July 7.1779. Morris Papers in New York Public Library. PENNSYLVANIA TO NORTHERN VIRGINIA 179 abled American merchants to extend greatly their commercial relations with the French and Dutch. There can be no doubt, in summary, that the Revolution was far from destructive to Philadelphia business; that it greatly stimulated both Baltimore and Alexandria; that certain indi­ viduals in all three places were accordingly advanced to posi­ tions of new importance in the business world. It may confi­ dently be stated that such developments as those recorded above contributed greatly to the emergence of advanced business ideas and associations in the middle states during the follow­ ing decade. CHAPTER VIII ACTIVITIES UNDER TWO FLAGS

THE war also gave business opportunities to some of the loyalists. The inhabitants of New York City were the most conspicuous of these traders but even on the fringes of empire in the west there were persons who gained by the unusual de­ mands of the British forces. Military needs, some foreign com­ merce, and privateering were royal roads to profit for certain avowed loyalists, and a very considerable illicit trade gave other opportunities to many Tories within the American lines. . Much of this illicit trade was with England proper, by way of Halifax or the West Indies. It also included domestic trade with cities held by the British, sometimes through pre-arranged " friendly" captures; the subsequent sale of goods thus se­ cured was said to be excellent if 'risky business.1 An Hessian officer in New York observed in 1780: " Almost open Trade is carried on from here with the rebels; at least both sides close an eye. Passionately anxious for gold and silver, they cons'tantly brought us cattle and other provisions from the outset; but to hold back the money one prefers now to let them have tea, linen, cloth, etc., in exchange." 2 By August, 1782, Hamilton estimated that New York City sold goods upstate to the amount of £30,000 a year. So great was the desire for English manufactures that the interior was said to be &ained of gold for payments. Washington complained bitterly of his inability to prevent it.8

I MacPherson, Annals 0/ Commerce, III, 720; c/. also the bragging state­ ments of Lord Sheffield, Observations on American Commerce (1784), pp. 202,203· 2 R. W. Pettingill, trans., Letters from America, I776-I779, ,po 232; cf. also Oscar Barck, New York City during the War for Independence, p. 99- 3 Hamilton, Works, Federal ed., IX, 272; Wilder Spaulding, New York in the Critical Period, p. 141. Once again Washington is found complain­ ing of the .. avidity" among .. our People to make money." 180 ACTIVITIES UNDER TWO FLAGS 181 New York City had similar relations with New Jersey, so considerable in 1777, according to Governor Livingston, that people actually set up shops with British goods secured in exchange for provisions.· Illicit trade extended to Philadelphia. On January 20,1779, the Philadelphia merchant Thomas Fitz­ Simons complained that " for some time past the intercourse with N. York has been difficult & the Militia who are upon duty in Jersey seize every thing they find coming from there." 5 In 1780 the Philadelphia authorities arrested a number of persons charged with enemy trading, particularly in lumber­ an amazing fact when its bulky character is considered. Rumor accused Major David Lennox in 1781 of secretly receiving goods from his uncle, the British Commissary of Prisoners at New York, but Lennox forcefully denied such reports.8 By 1782 illicit trade between the two cities was said to involve goods to the value of £1000 a week, though this could hardly have been more than a conjecture.7 The occupation of Philadelphia by Howe in 1777 and 1778 gave brief trading opportunities to outsiders as well as to citi­ zens who remained there. The actions of William Constable at that time are suggestive as to the attitude of some merchants. Constable, originally of Schenectady, New York, was in Eng­ land when war was declared. In 1777 he sailed for America with a cargo for which he found no market in New York; so he went on to Philadelphia, also then held by the British. 4 E. F. Hatfield, Histo,., of Elisabeth, N. I., pp. .¢5, 466. 5 To Robert Christie, Federal Convention, Misc. Papers, in Hist. Soc. Penna.; cf. also W. H. Siebert, .. Loyalists of Pennsylvania," Ohio State VII",. Bul.. XXIV, Po 78. There are several items for Sept., 1778, in the Day Book of Glassford, Gordon and Monteath, indicating that wine especially was shiwcd to Philaddphia from New York after the British evacuation of the former place. 6 C/. the controversy between Lenoox and Francis Lewis in PenlUJ. Packet, April 17, 24. 1781. 7 T. Westcott, in PhilG. Surttlay Dispatch, Aug. 25, 1872; cf. also state­ ments of Jolm Gilman in Burnett, Leiters, VI, 374. about the trade being .. so great"; also Sparks, DiplOftlolic Co"esp., XI, 130, 131, 143, on the Jersey illicit trade. 182 BUSINESS ENTERPRISE: REVOLUTIONARY ERA When the latter place was about to be evacuated he loaded one or two ships with salt and clothing and sent them into Wil­ mington, held by the patriots, and secreted at Philadelphia other goods, including medicines which he had heard were needed by the Americans, Though Constable declared his sentiment for " the cause of.Liberty & my Country," and later had a brief military career as some sort of a commissary under LaFayette, his actions plainly show how political divisions were sometimes disregarded when merchants were in search of a market. 8 It is worth noting that Constable turned to his old acquaintance William Duer, then in Congress, to get him out of the jam in which he was caught in 1778 by reason of these devious acti vi ties. Another channel for the illicit or " London" trade was Long Island Sound and the Connecticut coast. This business grew very profitable there, seemingly carried on by "everybody" according to a competent recent writer.9 British goods and pro­ visions were exchanged on Long Island or by " rendevoux " of whaleboats. British goods apparently reached even Hartford, Connecticut, in 1780, under cover of dark night. The trade affected Stamford and Norwich, corrupting many young men with "thirst for plunder and money." In July, 1782, John Chester of Wethersfield wrote of the" Cursed illicit trade" which "our own people begin to get into" and "some few of us" to justify openly.10 Rumors ran to the same effect in Rhode Island: Clark and Nightingale of Providence were ac­ cused but cleared of such charges.l1 The trade was condoned by many persons. In April, 1780, Jeremiah Wadsworth himself had a share in the vessel of a "Mr. Shaw" which arrived in

8 Constable to Duer, June 13, 1778, Duer Pa.pers, I. 9 F. G. Mather, Refugees of 1776 from Long Island, .pp. 209-214- 10 Barck, op. cit., pp. 133. 134; William Hart to Wadsworth, May 25, 1780, Wadsworth Corresp.; C. S. Hall, General Samuel H. Parsons, pp. 344, 347; Huntington Papers, p. 160. n Records of State of Rhode Island, IX, 592, 595. ACTIVITIES UNDER TWO FLAGS 183 New York." As the war drew to a close trade naturally flowed more and more freely out of New York. Nicholas Low, in Philadelphia in July, 1783, apparently had carried on business for some time with Jones and Ross of New York." "The City of New York," said Governor Tryon in March, 1779, "is become an immense magazine of all Kinds of Supplies for a very extensive Commerce."" To what extent profits on that commerce were actually realized by loyalists there, nevertheless remains a question.' $ Yet this group of merchants enjoyed certain advantages, though working under the most confusing conditions. 1. Commodity prices rose to three hundred per cent over the pre-war level, in terms of a fairly stable currency," promoting a rapid turnover of goods; a Brooklyn merchant declared in 1778 that business was "founded upon such extravagant Principles." 18 Moreover, there was little difficulty despite American privateers in getting English goods into the place. A London house even refused to ship to New York in 1778, saying that the place must be glutted with goods; 18 yet the city's English importations grew most rapidly after that date, reaching the second highest value

12 John Lawrence to Wadsworth, April IJ, IiSo. Wadsworth Corresp. 13 Barck, o~. cil., P. I3S; Jones and Ross to Nicholas Low, July JO, I78J, Stewart and Jones Letters. Nathaniel Shaler had written Wadsworth, Feb. IS. I7Sz, about taking care of French officers' orders. It Quoted in John A. Stevens. ColofliDl Records 0/ lhe CMlflber 0/ COmMerCe 0/ NnII York. p. 3J9.. 15 The British apparently destroyed all official commercial records before leaving the city: c/. Historical Commission, Retort Ott AIMric,. Maftu­ Kri"s. IV, 457 • .sa. 16 There is a memorandum in the Day Book of Glassford, Gordon and Yonteath, in which their agent laments the .. hurry and Confusion attending the Conducting of business in N Yk... 17 H. Y. Stoker•• Wholesale Prices at New York Cit,. 1720-1800," ia Cornell Uniy. Agricultural Experiment Station, MetfIOirs, no. 142, p. _. 18 Daniel Tyler to Samuel Nigtttinga1e, Jr.. Jan. 19, Ins. Nightinga1e­ Jeuckes Papers. 19 Fowler, lJUllrtlACe ill NOrlIt America. p. 31. 184 BUSINESS ENTERPRISE: REVOLUTIONARY ERA in its history in 1781.20 These were largely military goods from British contractors, it is true, but the local merchants some­ times imported on their own account, occasionally under pro­ tection of the British navy. Foreign remittances must have been made principally with army gold and silver, since the city lacked unrestricted access to the Hudson hinterland. However, its merchants petitioned in 1778 against an army order prohibiting the shipment of flax­ seed and lumber from N ew York, and one merchant shipped a cargo of lumber and bricks to St. Kitts in 1777 or 1778.21 These facts suggest that such products were sometimes avail­ able. The illicit trade must have helped out in this respect. According to a recent writer the largest profits made in the city during the war were derived from shipping,22 though ex­ ports were theoretically forbidden until 1778 when merchants secured modifications in the Prohibitory Act; The local Cham­ ber of Commerce was doubtless influential in obtaining such concessions since it displayed an intensely loyalist spirit.2s After 1779 commerce tended to spread out in its normally complicated fashion though supplies probably continued to come largely from England, as did those imported by Moses Levy, one of whose ships arrived in New York from London in 1780.2. And some commerce was possibly carried on· by stealth with France.25 Thomas Buchanan and Company engaged in a number of voyages out of the city, receiving ship c~and­ lery suppliel? from Jones and Ross in 1780 for at least twelve 20 MacPherson, Annals of Commerce, III, passim; compare with figures for pre-war trade. 21Repo,.t on Ame,.ican Manuscripts, I, 364; Glassford, GordOl1' and Monteath Day Book, no date. MacPherson, op. cit., gives the value of New York's exports to England as about £15,000 annually, 1778-1780, but with a drop to almost nothing in 1781. 22 Barck, op. cit., p. 120. 23 A. C. Flick, Loyalism in New York, p. 100. 24A,.bitration Records of the New Yo,.k Chamber of Commerce, p. 28. 25 GlaS&ford, Gordon and Monteath mentiorr a ship stopping at Bordeaux, \'I'obably in 1778. H. and A. Wallace were interested in this venture with them. ACTIVITIES UNDER TWO FLAGS 185 sloop and ship ventures." Another firm earlier cleared £1080 New York currency on one adventure in rum from Jamaica, and £349 on another!' That New York merchants enjoyed some coastal trade also, is revealed by the insurance book of William and Jacob Walton. They followed the British army with their goods, as such notations as " To the Army up the No. River," "With the Expedition," and" To Headquarters," suggest. The British occupation of Savannah probably explains the Waltons' four voyages to or from Georgia in 1779 and 1780. Perhaps British conquest of Newport also helps explain their numerous ventures to Rhode Island and return, from De­ cember, 1777, to May, 1780, though many of these were directly to or from Providence which the British never held, and the British evacuated Newport in October, 1778. This was partly illegal trade; so was a voyage to Boston in October, 1778. The Waltons sent many ships to Jamaica and other West India ports, and at least one to London. Insurance rates varied greatly in such cases, reaching a peak for the Providence ven­ tures of thirty-five per cent in December, 1779, and for the Georgia trips of thirty-three per cent, probably in the fall of the same year. Rates. for the coastal voyages had declined consid­ erably by the opening of 1781!8 The greatest market for the loyalist merchants was of course with the British forces in New York. In considering this the indignant charges of Judge Jones should be recalled: that a general spirit of peculation prevailed, with British commissary . and supply agents making fortunes of incredible amounts." The traffic in military goods was certainly tremendous. In August, 1778, the British Commissary General had fifty-three

26 stewart and Jones Accounts, April I, 1780, to Jan. 16, 1781. Z1 Glanford, Gordon and Monteath Day Book, no date. 28 Walton Insurance Book, passim. Rates on the voyages to Rhode Islancl in 1777 and 1778 were surprisingly low: 5%, 7%, 9%. 29Tbomas Jones, History of NftII York, I, Chap. XVI, et passim. Jones was very bitter and biased. Cf. also, E. E. Curtis, Orga"izatio" of British Army ill America" Rnlol"tio" (New Haven, 1926), pp. g8-Ioo. 186 BUSINESS ENTERPRISE: REVOLUTIONARY ERA vessels, mostly sloops, employed in furnishing provisions and forage at New York and Philadelphia; his expenditures aver­ aged around £29,000 a month from February, 1779, to May, 1780.80 It is obvious that local merchants enjoyed some of this extraordinary business. The Hessian officer, already quoted, remarked in September, 1780: "The war has made the inhabi­ tants of this city and the neighborhood rich. . . . The sums which the army consumes here are incredible." 81 The local merchants were even accused of profiteering at the army's ex­ pense, of " peculation in every profitable branch of the service," particularly in groceries.82 In October, 1778, Winthrop, Kemble and Company secured a contract from the British Commissary General to import 100,000 gallons of rum from Antigua, Barbadoes and St. Christopher, for use of the army, at three shillings, six pence sterling a gallon. 83 One of the Mc Vickars sold rum to the troops.84 In 1781 the Victualler of the Fleet drew bills of ex­ change in favor of William Hill for £1000; in favor of Robert and George Service (including a bill of May, 1782) for £3000; in favor of Murray, Sansom and Company for at least £27,000; in favor of Thomas Buchanan and Company for £6000. Thomas Randall, " Master of the William Victualler;" also had some sort of an account with the fleet.85 Such merchants, how­ ever, had no such opportunity for profit by receiving bills at huge discounts, as did Americans who negotiat~d depreciated exchange on the French government. Five per cent dis~ount was the depreciation rate in New York on June 29, 1781.36 30 Daniel Weir Letter Book, passim. 31 Pettingill, Letters from America, p. 232. 32 Barck, op. cit., p. 122, quoting a contemporary. 33 Daniel Weir Letter Book, under date. 34 Arbitration Cases of Chamber of Commerce, pp. 12, 13. 35 Letter Book of Henry Davies, passim. 36 Ibid., p. 33. Glass-ford, Gordon and Monteath have a number of entries in their Day Book regarding the negotiation of bills of exchange, frequently drawn on the British forces. Some were negotiated in Philadelphia. One was drawn by Thomas Russell, probably the Boston merchant. ACTIVITIES UNDER TWO FLAGS 187 Buchanan and Company, particularly interested in groceries, also received money from the British for "expenses of ship­ ping stores" during the siege of Charleston.ao Their agents, like those of the Waltons, apparently followed the royal troops from place to place. So did also Neil Jamieson, agent of a Glasgow firm and an exiled Virginia loyalist, who set up stores in Philadelphia, Savannah, and Norfolk successively,38 while Jones and Ross of New York, who commissioned an agent in June, 1780, to engage in the ship chandlery business at Charles­ ton, were selling goods, especially "spirits," in Yorktown a year later." Robert Henderson, a Scot who arrived in New York in the spring of 1781, is a particularly good example of such itinerant traders, though his expectations of sharing in a lively trade speedily vanished. Trade was dull with him from the first and became worse, partly because the place was already overstocked with English goods. He did sen some " britches" and coats at forty per cent advance, which gave a profit, since goods cost him but thirty per cent advance in March, 1781; but in April only those importing goods with the fleet (thereby making certain savings) were able to break even on the usual twenty-five per cent advance sale price. All his" military shoes" were quickly sold, however, and by April 1781, he was shipping goods to Virginia, for which he secured a bill on the British Commissary. His experience in New York was on the whole most unsatisfactory, and he returned home, a disappointed man, before the war was concluded!O Shortly afterwards he returned to Philadelphia to enter business there, where he was equally unfortunate. Several New York merchants held influential positions under the British. William Seton, brother-in-law of Richard Curson

:rr R~torl 011 AtMricoli MoruucriPts, III, JIg. 38 Glassford, Gordon and Monteath, passim. 39 Stewart and Jones Letters, under June 1,6,21, I780"Oct. 14, 1781. 40 Henderson Letter Book, passim; as early as June, 1781, he wrote that goods were being disposed of at vendue; in Nov., that vendue prices were 2S% and 30% lower than his. 188 BUSINESS ENTERPRISE: REVOLUTIONARY ERA of Gouverneur and Curson (located at St. Eustatius during the war), transacted the work of the shipping office of the city.n Although a family genealogist says that Seton's private busi­ ness was ruined during the war, he was at least able to secure a small country place in 1784 at Bloomingdale.~2 William and Robert Bayard apparently made a fortune handling prizes and provisions for the British, though the former also lost heavily in the city fires of 1776 and 1778. But in May, 1784, his son, William, Jr., who had remained in New York in trade, was able to send over twenty thousand pounds of "paper money" to London!8 David Sproat, British Commissary of Prisoners, was accused of profiteering by charging for coffins which were never used.44 His nephew, Robert Lennox, brother of the patriot Major David Lennox of Philadelphia, assisted Sproat and then remained as a merchant in New York after the war. Occasional reminiscences offer clues to the activities of other loyalists. A number of fortunate persons, including John Van­ derbilt, are mentioned by Judge Jones as having engaged in privateering, trade, and sale of goods to the army.45 Thomas Eddy is said to have been impecunious when he arrived in New York in 1779, but to have improved his condition by found­ ing an importing firm in 1780, and then to have secured a profitable contract in handling the money of British prisoners at six per cent interest.48 A son of Robert Murray, the Quaker merchant, may have acquired a substantial fortune in the im-

41 Report on American Manuscripts, IV, 458. 42 Robert Seton, The"Setons of Scotland and America (N. Y., 1899), pp. 255-272. 43 H. E. Edgertol1l, ed., Royal Commission on Losses and Services of American Loyalists, Intro., XLIX; Bayard Accounts, in Bayard-Pearsall­ Campbell Papers. 44 TYJped MS life of Dr. John Rogers, p. 21, "Misc. MS ", in New York Hist. Soc. 45 Thomas Jones, New York, II, 306. 46 Hunt's Merchants Mag., III, 429. ACTIVITIES UNDER TWO FLAGS 189 portation of British goods." Several newcomers were certainly able to establish themselves permanently in trade in New York during the war years, among whom were Hugh Henderson from Portsmouth, New Hampshire, who imported my goods after 1778, and Bernard Hart, an Englishman, who engaged in the Canadian trade after 1780.48 Little is known concerning privateering out of New York City beyond the information in Governor Tryon's proclamation of March 8, 1779. He stated that 121 commissions for priva­ teers had been issued, and that the value of the prizes taken since the previous September. 18 was approximately £600,000 lawful money of New York!· In May, 1779, a writer in a local paper declared that " So many privateers are fitted, and such a call for ropes, etc., that cordage will bring an advance of 40 per cent sterling on the invoice. . . . The people of New York have feathered their nests by the success of their privateers, but, having swept the seas, prizes drop in but slowly at present." 10 In spite of this, and of the generalizations of Joseph Galloway to the same effect,n it probably was true that New York privateers were relatively less successful than their Yankee opponents. U Yet captures continued to be made by New York vessels for several years. There is no telling what wealth a few may have gained thereby. It seems that Daniel McCor­ mick made a fortune, not by owning privateers, however, but in handling the sale of captured goods at vendue. 58 ~uch prize agents invariably prospered everywhere.

4.7 Joseph Scoville, Old Merchants of New York City, I, 297; not a reliable work. 4.8 W. Cutler,MOtI'6.Sseh Cutler, I, 297 n.; Scoville, 01'. cit., II, II9, 120. 4.9 Quoted in Stevens, Colonial Records Chamber of Commerce, p. 342. 60 New York Evening Post, June 25-28,1779, quoted in Stokes,Iconography of Manhattan Island. . 51 A utter to the RighI Honourable Lord Viscount H - E • •. (2nd ed., London, 1781), p. 39 n. 53 See remarks by Channing, in Mass. Hist. Soc. Proc., XUV, 375, 376. 53 Stevens, ofr. tit., Biographical Sketches, p. 148; cf. New York Gasette, June 2, 1m, as to sale of goods at his house. . 190 BUSINESS ENTERPRISE: REVOLUTIONARY ERA The loyalist N ew York merchants were, with notable excep­ tions, representative of the most prominent mercantile families of the late colonial period. They included Theophylact Bache, Isaac Low, Henry Remsen, Daniel C. Verplanck, Richard Yates, John I. Glover, Nicholas Hoffman, the Waltons, the Bayards, the Ludlows, the Laights, and the Wallaces. 54 Sinee such persons had inherited the complex social organization of the colonial period and much of its wealth, and since the years of British occupation may even have augmented the fortunes of several of them, it was significant for the financial future of the city that they were not all expatriated at the conclusion of the war. Of the small minority of merchants who left the city in 1776, certain individuals doubtless suffered losses. John Alsop, Alexander Robertson, and Walter Rutherford, for ex­ ample, are said to have retired to the country and to have given up all business, though Alsop did invest in a Virginia tobacco speculation in 1777. The sugar refiner and merchant, Isaac Roosevelt, was busily concerned in state legislation, serving on numerous committees for the assembly. A similar political career was had by Jonathan Lawrence, a retired merchant who served on state commissions to handle army supplies and to sell forfeited estates. He privately contracted to furnish supplies to the army on one occasion, however, and is said to have specu­ lated heavily in state lands whereby he repaired losses suffered by reason of the war.65 On the other hand, Francis Lewis and Philip Livingston were able· as private merchants to carryon considerable commerce 'for the Continental Congress. The patriotic Comfort Sands, a state office-holder, likewise became active in the public supply business as a private contractor. It has been noted that Cornelius Ray did not retire to business

54 Stevens, op. cit., Biographical Sketches, passim; Henry Dawson, ed., New Yo,.k City in the Revolution, p. II9 If. for addressers of Howe; Barck, op. cit., pp. 55, 137 n. 55 Thomas Lawrence, History and Genealogy of Lawrence Family (N. Y., 1858), p. 95 If.; Mather, Refugees of Long Island, p. 443. ACTIVITIES UNDER TWO FLAGS 191 obscurity, but even engaged in mercantile activities in Balti­ more before the end of the war. Samuel Broom was able to carry on his former New York business from New Haven. Thomas Randall managed privateers, commissioned by the New York Congress, out of Elizabethtown, New Jersey, and Isaac Clason of New York engaged in the provisions trade on the Hudson River. The Pintards, Lewis and nephew John, were able to stay on in New York for the purpose of supplying American prisoners there, but presumably did not carry on private trade. The greatest war-time opportunities which the British army offered to any firm of merchants were at the distant fur-trading post of Detroit, but the ultimate benefits were evident in the financial growth of New York City. For the course of financial empire, then as frequently in American history, took its way eastward. This is the story of two traders from the north of Ireland, Alexander Macomb and William Edgar.58 Both went to the West in pre-Revolutionary years by way of Albany. There, unknown to each other, they made similar contacts. Macomb's father engaged in supplying the British army, setting an example which his sons, aided by marriage relationships, carried on at Detroit after about 1769.&7 Edgar arrived in the West before the French and Indian war was over and set up as a private fur trader at Detroit, seeking to supply British commissaries at the western posts, such as William Maxwell at Michilimackinac and Sampson Fleming at Detroit and Niagara. Edgar's business acquaintances came to include the prominent Montreal fur merchants, Isaac Todd and James McGill, and the Phyns, EIIices, and William Constable of Schenectady.5s Both Edgar and Macomb had prospered by 1776. The

56 This entire section was aided ill many ways by the generous advice of Miss 10sephine Mayer, who is preparing a life of Edgar with some help from the author. 57 H. A. Macomb, Macomb Family Reco,.d (Camden, N.1., 1917), pp. 1-10. 58 Edgar Papers, /IOSsim. On the Schenectady relations, ct. R. H. Fleming, in Toronto Ulfiv. ContribtuioflS to CtmadimI ECOflS., IV, 2S ff. 192 BUSINESS ENTERPRISE: REVOLUTIONARY ERA former owned property of various kinds in Detroit, and the Macomb brothers purchased the whole of what is now Belle Isle, in the Detroit River, that year. The Macombs flourished particularly in supplying their friend, Lieutenant-Governor Henry Hamilton,. "the hair buyer," with his lavish presents to the Indian tribes, receiving between December, 1777, and September, 1778, some £50,000 for such goods and for army provisions. 59 Edgar, on the contrary, was not doing so well in 1778 and wanted to leave the country.80 He was still well-to-do, however, for in June, 1779, Todd and McGill held some £8000 New York currency of his on which they offered to pay in­ terest.81 At this critical period the Macombs seem to have offered Edgar a partnership. in their business. Against the advice of Todd and McGill, he accepted, and it proved a highly lucrative connection: in three years' time Edgar's fortune was probably more than tripled.82 The work of Macomb, Edgar and Macomb was largely in supplying the Indian Department of the British army. Scalping knives, blankets, fishhooks, and even jewsharps were furnished to sooth the savage breast and, along with supplies for "Officers Mass," "Ordinance Dept.," and other army needs, ran up their accounts with the British into large figures. Be­ tween December, 1779, and May, 1780, their charges against the Indian Department alone amounted to £42,489. The work also included handing out supplies to frontier renegades, in­ cluding the infamous Girty brothers, who were ravaging the American settlements.8s News of the firm's great success even reached England.' . Edgar continued anxious' to leave Detroit, however; he wanted to enjoy the pleasures of civilized society with which

59 Hamilton Papers, ~IP New York Hist. Soc., passim. 60 James Bannerman to Edgar, Oct. 4, 1779. Edgar Papers. 61 Todd and McGill to Edgar, June 2, 1779, ibid. 62 Claim of Macomb to Edgar, April 4. 1814. ibid. 63 Account Book "A" of Macomb, Edgar and Macomb, passim. ACTIVITIES UNDER TWO FLAGS 193 frontier conditions were in drab contrast. His friend Sampson Fleming, the former British commissary, also grown rich at the western posts, urged him to leave in 1781. Both men hoped to go to Ireland for a visit at least. Edgar finally did leave in the fall of 1783, having saved the Macomb firm, he later claimed, from excessive importations that year through his prudence, M lack of which wrecked so many other American houses. He entered the States with a bill of £27,000 on an English house, unencumbered by debts, unsalable goods, un­ certain credit, or unreliable partners, when many American merchants were floundering in the morass of such post-war circumstances. Why did Edgar and Fleming, followed a year later by Alex­ ander Macomb, settle in the States in preference to England, Ireland, or Canada? They apparently foresaw the possibilities in places like New York and Philadelphia. Fleming, who went to Philadelphia to look around, rather enigmatically said (when they all seemed to be looked upon a little suspiciously by " gov­ ernment" in the States), " We have not come into their Country as Spies, or Fortune Hunters, we wish to be the means of adding to their Greatness! " H Another reason for their de­ cision was their friendship with William Constable who in 1783 succeeded to the New York business of the English house of Phyn and Ellice, also formerly of Schenectady, toone of whose members Constable was brother-in-law. Phyn and Ellice's regular New York agent had had to leave there with the British army." It is possible that Edgar became connected with this firm, or, like Robert Morris, with the house of Con­ stable, Rucker and Company which was established soon after in New York. Edgar married Constable's wife's sister in 1784 -a marriage which also connected him with the important Moore Furman of New Jersey. At any rate Edgar and Fleming

lit Memorandum, April, 1812, Edgar Papers. 65 To Edgar, Jan. 9. 1784. ibid. 66 Fleming, 01. cit., p. 35. 194 BUSINESS ENTERPRISE: REVOLUTIONARY ERA readily plunged into" bank" matters with Constable's aid and advice. 87 The newcomers began to build homes on Long Island in the spring of 1784 and to think of employing" gardiners." They had come back to" civilization" to stay, and New York's financial future was to bear the impress of Edgar's influence for .several decades. Subsequent activities of Edgar, and of Macomb who secured a " mansion" for himself on Broadway around 1785, will be discussed below.

67 Fleming to Edgar, March 21, 1784, Edgar Papers. CHAPTER IX THE QUESTION OF BUSINESS FREEDOM AMONG the underlying factors responsible for the Ameri(4ll Revolution was the irritation produced by a new series of commercial regulations which further limited the business freedom of the colonial merchants. As the quarrel with Great Britain developed, however, the increasing violence of " mech­ anics and artisans" turned many of the merchants into " con­ servatives," especially on the question of independence. In this attitude they were supported by other men of means and s0- briety. Many of them remained loyal to the revolutionary cause, but within the patriotic group they were opposed by a rad~cal faction, some of whose members believed that social re-organi­ zation was the objective of the war. It is the purpose of this chapter to show that the conservatives, having received a political worsting for several years, gradually regained control of many national and state affairs by 1781 and, among other things, pointed the ship of state back on the course of business " freedom." In the light of new materials it is now possible to re-interpret Continental Congress politics, partly on economic grounds.1 The two schools of Congressional political thought which Dr. Francis' Wharton labeled the " Iiberative" or " expulsive" as against the "constructive" or "remedial" school,2 might better be termed "radical" and "conservative" respectively. They frequently struggled over the right of the merchant to seek his private ends under war-time conditions, the division being widened further over the question of land speculators' 1 The reference, of course, is to Edmund C. Burnett, ed., Letters 0/ M~mbers of the Continental Congress. The introductory remarks by Dr. Burnett at the beginning of each volume constitute the only up-to-date reftections upon the politics of the Congress, though he does not make an economic interpretation. 2 In his Rewilltionory DiPlomotic Corresptmdence of the U. S., I, 252; cl. Sumner, Finoncier, I, 218, on Congressional alignments after 1776. 195 196 BUSINESS ENTERPRISE: REVOLUTIONARY ERA rights in western land companies. As early as 1775 certain members of Congress insisted that retaliation against England depended upon the merchants being free to make exports, which alone would pay for necessary war supplies. Silas Deane of course appreciated this point, and wealthy, conservative John Jay bluntly said, "We have more to expect from the enterprise, activity and industry of private adventurers, than from the lukewarmness of assemblies." 8 As the war progressed and living expenses rose the feeling grew that merchants were too successfully fishing in troubled waters. ANew Hampshire delegate to Congress gave expres­ sion to this feeling in 1779 when he wrote, " He who increases in wealth in such times as the present, must be an enemy to his Country, b~ his pretensions what they may." Henry Laurens of South Carolina argued fiercely, "Reduce us all to poverty and cut off or wisely restrict that bane of patriotism, Com­ merce, al;1d we shall soon become Patriots, but how hard is, it for a rich or covetous Man to enter heartily into the Kingdom of Patriotism?"" This was the attitude of the Lee-Adams faction, which headed the radical Congressional group on political questions generally and on the case of Silas Deane par­ ticularly. The case for Deane was, in essence, that for unlim­ ited commercial opportunity, and in defense of him and of that principle the conservative faction first rallied under the leadership of Robert Morris. In 1776 the home of Morris had been a meeting place for" a set of people who think and act alike "-those opposed to a declaration of independence.5 As chairman of the Secret Com­ mittee on commerce, Morris soon after had to assume respon­ sibility for giving Congressional contracts for war supplies to various individuals, such as himself, and for the activities of

3 C/. notes of debates on proposed non-exportation agreement, in Journals of the Continental Congress, III, 476, 477, 495. 4 Burnett, Letters, IV, 223, 163. 5 Quoted in W. T. Read, George Read, p. 161. THE QUESTION OF BUSINESS FREEDOM 197 the envoy to France, Deane. As already noted, Morris and Deane had private concerns together when the latter went abroad in 1776. Rumors about these activities seeped out, and the Congresses of 1778 and 1779 were bedeviled with accusa­ tions of self-seeking through use of public office, against Morris, Deane, and their commercial and land-speculating associates. Though these suspicions were partly justified, Morris and his kind sincerely identified their private actions with the public good. Congressmen like William Duer, who understood such reasoning, as the Lees and Adamses could not, defended them valiantly. The extreme opposition even believed, in the frenzied words of Arthur Lee in May, 1779, that the attitude of the conservatives indicated "some deep design against our inde­ pendence at the bottom. Many of the faction are, I know, actu­ ated by the desire of getting or retaining the public plunder . . . .". Such language partially indicated that the agrarian Lees and Puritanical Samuel Adams were unappreciative of the individualistic philosophy which was spreaping over the West­ ern world; but it also revealed all too clearly an understanding of the profiteering spirit of the times which marked the actions of many" conservatives." When Deane returned from France in the fall of 1778 the Lees held that his Congressional party was "composed of the Tories, all those who have rob'd the public, are now doing it, and those who wish to do it, with many others ..."; that it had its "dependencies thro' the Continent by means of their new formed Commercial Establishments." T The bitter strife

8 Wharton, RnJ. DiplomtJtic COrTes;., I, 534. There is an impressive amount of other such aoc:usations in the literature of the period. Henry Laurens was one of the most bitter critics of the business element. He wrote Washington, Nov. 20, 1778, of how .. almost every Man has turned his thoughts and attention to gain and pleasures, practicing every artifice of Change Alley or Jonathan's"; how even members of Congress neglected their duties for attorney's fees, used House secrets for monopolizing pur­ poses, and accumulated the .. Public debt for their private emoluments," etc. Burnett, I..Itte~s, III, S0O- T F. L. Lee to Arthur Lee, Dec. 10, 1778, ibid., III, 530. 198 BUSINESS ENTERPRISE: REVOLUTIONARY ERA over the case of Deane was made public knowledge by Tom Paine in December, 1778--and Paine's writings were as leaven in the political ferment of turbulent Pennsylvania. There fol­ lowed in the spring and summer of 1779 a most virulent Phila­ delphia newspaper war. Dark insinuations were made that Deane and Morris had engaged in public peculation. William Duer, Gouverneur Morris, John Nixon, and James Wilson were criticized for coming to their de£ense. B Feeling also ran high over western land speculators' claims and from rumors of cor­ ruption in the army commissariat, William Shippen wrote of an army agent in June, 1779, "only think of a Two penny Jack who never in his life was capable by any business he had been engaged in . . . but in a very so so manner shall now be making 40 or 50,000 pro annum and that by lowring the value of our Money and raising the prices of every article he purchases." 8 Such a devil's brew of suspicions filled the Congressional inquiry pot in 1779, in which Deane was thoroughly cooked up. After this season of bitter speeches and publications Deane disgustedly gave up his country as lost, returned to Europe where he attempted to continue his business speculations, and turned apostate. Morris, meantime, was replaced in Congress by Pennsylvanians of a different stripe. He did not return to the national scene until called back as Financier. For a time radicalism continued more or less dominant, to the gener~l con­ fusion of all concerned with the direction of the war. The morass of despair into which Congress ran in 1779 and 1780, however, discredited that attitude and sowed more widely the seeds of conservative reaction. Meantime, the extent to which bitter feeling over economic questions could be expressed in the early war years is further illustrated by developments in several localities. Occurrences in Philadelphia in 1779, for example, revealed those persons who,

8 Burnett, Letters, IV, 97 n. et passim. 91bid., p. 282. THE QUESTION OF BUSINESS FREEDOM: 199 in popular opinion, had successfully pursued some ways of individual gain to the public detriment. The Revolutionary politics of Philadelphia should be viewed in the light of a serious pre-war antagonism between import merchants and consumers. A siInilar division was revealed in the struggle over the " levelling" constitution adopted by Penn­ sylvania in 1776. Many constitutional supporters were dubbed "men of desperate fortunes." Anti-Constitutionalists, on the other hand, included such merchants as Robert Morris, George aymer, Samuel Meredith, and James Wilson's wealthy brother-in-law, Mark Bird, the iron-master from Reading.10 Years later, Alexander Graydon wrote that the Anti-Constitu­ tionalists were "the disaffected, and those who had played a safe and calculating game. But they were rewarded for it: pelf, it appeared, was a better goal than liberty; and at no period in my recollection, was the worship of Mammon more widely spread, more sordid and disgusting. . . ." This was but an echo of popular criticism during the war. Public feeling was intensified by certain developments con­ nected with the British occupation of Philadelphia. Some merchants then utilized the opportunity to obtain hard money from the army trade. The attitude of Thomas Willing, shown in his attempted negotiations with the British, was long re­ membered by radical Whigs.u People complained that the agreement by General Howe to recognize the colonial money of the province gave opportunities for gain to those with hard money, through manipulation of Continental currency. A wag thus described the situation: they

10 B. A. Konkle, ThofNJS Smith, p. 104; c/. also C. H. Lincoln, Re'IIolu­ ,iOflGrY Muwmntl itt PetIM., Chaps. XII, XIII; also W. R. Smith, .. Sec­ tionalism in Pennsylvania during the Revolution,n Pol. Sci. Q_t., XXIV, 226 If. Daniel Roberdeau, one of the radical leaders, was a bankrupt merchant. 11 Graydon, M,moirl, P. 333. For a contemporary (1m) blast against the .. boundless avarice" of the Philadelphia merchants, .. whose gain is the S __ B-." see Burnett, utters, II, 401. 12 Ct. p",-. A,.clliw" 1777, p. 30. 200 BUSINESS ENTERPRISE: REVOLUTION ARY ERA SOold each half-jOoe fOor twelve pounds Congress Trash Which purchased six pounds of this legal cash; Wherebye they have, if yOoU will bar the bubble, Instead Oof losing, made their money double! " 18

The smouldering fires of popular discontent were further stirred after the British evacuation in 1778 by the extraordin­ ary conduct of General Arnold, whose severe rule of Phila­ delphia was popularly held to be a part of some subtle scheme to restrict trade for the benefit of a monopoly-an accusation since proved to have been based upon an agreement made by Arnold with the Continental Clothier and another merchant. Popular discontent was increasingly demonstrated in attempts to control prices in Philadelphia, and in accusations against Robert Morris and Blair McClenachan in May, 1779, for alleged profiteering in flour; also against Morris and John Holker, in June, for alleged purchases of flour in contraven­ tion of price regulations for sale to the French fleet.u , A prelude to radical action was staged on May 24, 1779, by a Philadelphia mob whose animosity was particularly directed against Blair McClenachan. The mob's activities were satirized by a loyalist in this fashion: The great McClenachan bestrode His prancing horse, and fiercely rode, And faith, he had good reason- . For he was tOold, that to his SOorrow,. He with a number mOore, to-mOorrow Should be confined in prison.

13 Quoted in Schad and Westcott, Phila., I, 367. 14 Ibid., w. 398-400. B~nedict Arnold was attacked on the streets only .two days after the .. Fort Wilson" incident. Whitehead Humphreys, who had participated in the newspaper war, was attacked at his home in July. Levi Hollingsworth, the flour factor, is said to have been assaulted by a Phila­ delphia mob this same year, because he would not give to it flour he held for the troops. On the other hand, Tom Paine was kicked into the gutter one night by James Mease and several other inebriated persons of the qpposite political persuasion. THE QUESTION OF BUSINESS FREEDOM 201 'Twas said some speculating job Of his had so inflamed the mob, That they were grown unruly;- And swearing by the' Eternal God ' Such fellows now should feel the rod,

Resolved to I come on coolly! ' 15 The extreme act of such Philadelphia radicals, the storming of lawyer James Wilson's home in October, was explained by one leader of the mob as due to the fact that the II laboring part of the city had become .desperate from the high price of the necessaries of life." 18 The people were also influenced by the events recorded above and by Wilson's legal activities on behalf of Tories and of merchants opposed to price regulation. Among those in the beleaguered house were Wilson, Robert Morris, George and Daniel Clymer, David Solesbury Franks (an aide-de-<:amp of Arnold), Matthew McConnell, and Gen­ erals William Thompson and Thomas Mifflin. The representa­ tive character of the besieged is apparent; prominent merchants, lawyers, and commissary officers were present. Their rescue, moreover, was achieved by members of the Philadelphia First Troop Cavalry, the "silk stocking" militia whose formation at the beginning of the war showed, according to Graydon, how the" canker worm, jealousy, already tainted the infantile purety of our patriotism." 17 Massachusetts is an example of those states in which eco­ nomic and social radicalism never got so far out of hand, the conservatives being better organized to strike back. This is the significance of the political" Federalism" which raised its head in 1778. It was born at a meeting at Ipswich of delegates from commercially conscious Essex County in April, 1778, when the views of conservatives, opposed to the constitution drafted for

15]oseph Stansbury, Loyal V'r'ses, P.4O. 16 T. Westcott, in Philo. Sunday Dispatch, May 19, 187'2. 17 Scharf and Westcott, Philo., I, 401; Conyngham, .. Reminiscences," p. 213; Graydon, Memoir'S, p. 123. W. R Smith, op. cit., 'PP. 230-234, says that economic problems were the eventual undoing of the radicals. 202 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Massachusetts, were bluntly stated.is They expressed a political philosophy which reveals how economic interests had become intwined with orthodox Puritan social theory. They paid hom­ age to ancient beliefs: they damned any man so presumptuous as to claim that ". the voice of the people . . . is the voice of God," and they held that wisdom was a prerogative of the chosen few-but the few were not necessarily clergymen and men of education, but also those of fortune and leisure. a Such fortunes were doubtless meant as those represented at the con­ vention by the merchant delegates Jonathan Jackson, Tristram Dalton, and Jonathan Greenleaf, or perhaps such as those of the Gloucester merchant brothers of young lawyer Parsons who drafted the Essex" Result." The implication of social antagonisms is readily evident in this conservative document. Jonathan Jackson had been aware a year before of the" Jealousies between Country & City." Shortly after the Convention adjourned he was driven to think that" the people at large deserve to be conjoled-at least that they do not know what their Liberty is worth, or how to pre­ serve it.... " 20 The subsequent overwhelming defeat of the proposed constitution against which the Essex men had pro­ tested is evidence that conservative political forces were early in the ascendency in the Bay State. It is further evident in the work of a new constitutional convention called in 1779, attended by such merchants as George CabQt, Nathaniel, Gor­ ham, and Nathaniel Tracy, and by such lawyers as John Lowell. The resulting constitution, adopted in 1780, was decidedly partial to commercial interests.21 Paralleling such disputes and contributing to them was the

18 A. E. Morse, Federalist Party in Mass., p. 17. 19 (Theophilus Parsons), RemIt of a COWllention at Esses, pp. 17. 18. The people were said to have good intentions but little wisdom. 20 To Oliver Wendell. May 8. 1777. May 28. 1778. Jackson Letters of Mr. Austin aark. 21 Allan Nevins. American States. p. 2II; S. E. Morison. Maritime Hist. of Mass .• p.28. . THE QUESTION OF BUSINESS FREEDOM 203 strife in all of the northern states over financial problems, the radical element generally (but not including men like John Adams) favoring policies which restricted business enterprise. For paper money, legal tender laws, and price-fixing were de­ signed in the best colonial tradition not only as financial ex­ pedients to lighten the war burden on the people, but also as checks upon commercial coet:.cion. Christopher Marshall of Pennsylvania expressed this idea in 1777 when he wrote that price-fixing protected the poor from the "oppression of Rich merchants." 21 Connecticut enacted such laws in 1776, arguing that the rise in cost of the necessities of life was "chiefly occasioned by Monopolizers, that great pest of Society, who prefer their own private Gain to the interest and safety of their country.... " 28 Numerous such regulatory acts were passed in Massachusetts also, to check rising prices due largely to currency depreciation attributed to those public enemies every­ one was sure existed, but whose identity was difficult to estab­ lish. The merchants were of course suspected as a group. In 1777 the women of Beverly raided merchants' storehouses and compelled the proprietors, temporarily at least, to sell goods at state-fixed prices. Abigail Adams wrote from Boston in April of that year of "a great cry against the merchants, against monopolizers, etc., who, 'tis said, have created a partiai scarc­ ity." U With Congressional encouragement for stringent con­ trol of retail trade, price-fixing and legal tender laws became the weapons of state and town against the alleged profiteers. All the other New England states went in for regulation of prices early in the war, as did also New York, Pennsylvania,

22Pmna. Mag. His'. Biog., XXVIII, 76. Nathanael Greene bitterly wrote in July, 1777, that such price-fixing was "founded in public covetousness, a desire to have the 4lroperty of a few at a less value than the demand 'will warrant to the owner." Rhode Island Hist. Soc. Coli., VI, 194- 23 Quoted by Simeon Baldwin, .. The New Haven Convention of 1778," in New Haven Col. Hist. Soc. Papers, III, 41. . 24Familiar L,IIers of lohn and Abigail AdMn.r, p. 26; cf. also R. V. Harlow, in Col. Soc. Mass. Pub., XX, 175. 204 BUSINESS ENTERPRISE: REVOLUTIONARY ERA and New Jersey in 1778. Most states also passed legal tender acts in 1776 and 1777.25 Despite the early popular enthusiasm for such measures, they failed utterly to achieve their purpose. It was impossible to enforce them for a number of obvious reasons, including the fact that conservative political feeling slowly mastered radical opposition in most places. Consider, for example, the history of regulatory efforts in Boston. By the end of 1776 there had been a growing feeling there that public control over the sale of the necessities of life should be set up, and during the next three years there were many complaints against alleged "forestallers" and "monopolizers," especially in foodstuffs.26 Those persons actually accused, however, were invariably of little importance in the business community; the great merchants were seldom interfered with. Moreover, though certain flour and West India goods importers were accused of monopolizing in March, 1777, and subjected to state regulations,2T the system of price limitations was soon abandoned except for sporadic acts in relation to provisions. Boston and other tOVl-ns renewed efforts in 1779 to control sales, but again the great merchants generally escaped atten­ tion; .when several of them were finally investigated they were defiant or vague on the question of cooperating. On October 19 a committee of merchants was appointed in Boston to " affix the price of European Goods, Wine &c."; but it reported several days later that this plan was simply impracticable. IS From then on Boston business men had little to worry about from such public control. The collapse of the Continental currency made it clear that price regulations in terms of such currency were unjust, and in keeping with the conservative

25 R V. Harlow, II S~c: Aspects of Revolutionary Finance," in Amer. Hist. RefJ., XXXV, Ss. ,58; ct. also Sumner, Financier, I, Chap. IV. 26 A. M. Davis, .. Limitation of Prices in Massachusetts, I;76-li'79." in Col. Soc. Mass. Pub., X. JI!)-IJ2.

29 Rec:. Book DO. 127. pp. 30 40. Div. of Old Rea. 30 Henry Livingston to .. Father," March 130 InS. Redmond CoIl. 31 Burnett, uttns, III. 167; no regard was paid to the law, he said. 32 Quoted in Scharf and Westcott, PIU/a., I, 417. 206 BUSINESS' ENTERPRISE: REVOLUTIONARY ERA ation and though another convention, meeting on the initiative of Massachusetts at Hartford in 1779, advocated a new price system, it was of little avai1. 88 The tide of opposition came to. full flow in 1780 when regulatory acts were generally repealed. A nationwide convention called to discuss the matter at Phila­ delphia in January, 1780, was a complete failure.8~ The end of all legal tender acts in the North was delayed a year longer. Massachusetts, however, as noted above, withdrew such laws in 1780 and permitted a return to hard values. Nor was Connecticut's issue of that year made a legal tender. In Maryland a broad rescinding act withdrew such legislation~ though there was a reversal on several issues in both 1780 and 1781. Pennsylvania also lagged in the matter, as was to be expected, voting a large issue of tender currency in 1781 (only a fraction of which was actually put into circulation), but it collapsed as speedily as did that of Maryland; and this was the end of the legal. tender question during the war.8S Though several more state conventions were held, their resolutions were now for a relaxation of inter-state trade embargoes, for " sink­ ing " currency issues, for a national impost, and for a stronger central government. Merchants and lawyers such as those at­ tending the Boston meeting in August, 178o-Thomas Cush­ ing, Nathaniel Gorham, John Lowell of Massachusetts, Jesse

33 Baldwin, II New Haven Convention," loco cit., pp. 52, 59, 61; cf. Phila­ delphia merchants' petition against price regulating, Sept., 1779, 'in Scharf and Westcott, Phila., I, 399 n. The New England states temporarily aban­ doned price-fixi.ng in 1m, on recommendation of the Springfield convention. 34 H. C. Cabot, George Cabot, p. 15; Harlow, .. Revolutionary Finance," loco cit., p. 59; Oliver Ellsworth to Samuel Lyman, Jan. 25, 1780, in Burnett. Letters, V, 16. Congress had weakened on its resolution of June, 1778, but to 110 avail.

35 A. M. Davis, II Lawful Money, 1778 and 1779," in New Eng. Hist. Genealog. Soc. Reg., LVII, '.165; George Bancroft, Hi.rt. of the Constitution,

1,229-235; Bond, II State Government in Maryland," p. 61; Webster, Political

Essays, -p. 197 n.; Scharf and Westcott, Phila., I, 417; Harlow, II Revolution­ ary Finance," loco cit., p. 62; Nevil15, American States, pp. 488-492. On June IS, 1781, however, Morris was still writing of the necessity of repealing state legal tender laws, so some must have remained unrepealed at that date. THE QUESTION OF BUSINESS FREEDOM 207 Root of Connecticut, and John Langdon of New Hampshire­ were insisting that these were the important problems.86 The lesser question of merely excessive issues of paper money-against which there also had been vigorous protest even early in the war, by persons like merchant Pelatiah Web­ ster-was naturally rendered less important by the trend of events regarding price-fixing and legal tender laws in 1780 and 1781. It is, of course, true that the problem was aggravated by the partial bankruptcy action of Congress on the Contin­ ental currency in 1780-further recognition of the failure of radical policies-since the financial burden was henceforth thrown more heavily upon the states. Many of them had to yield temporarily to large issues of currency or treasury notes in 1780 or 1781, but they now also turned for the first time to improved taxation policies to meet the situation.81 However undesirable in theory the repudiation of the old currencies after 1780 may have been, such business liberating developments were clearly victories for the rising conservative movement in which the merchant and his lawyer associate played so important a part. It is perhaps not insignificant in this connection to note that the winter of 1780-1781 also wit­ nessed the success of political centralists who made possible the final ratification of the Articles of Confederation, an improvement upon the previous federal organization. The Con­ gress itself was somewhat changed in 1781. Samuel Adams went out and James Wilson came in. Party spirit had died down

36 Baldwin, o~. cit., p. 43; ct. II Minutes of the Hartford Convention," in Mag. Aifief'. Hist., VIII, 694 II.; also F. B. Hough, ed., p,.oceedings 0/ II Conwntion laeld ot BaSion, 1780, ~assim. 37 Harlow, "Revolutionary Finance," loco cil., p. &7, notices a number of state laws for the collection of taxes before 1781, but says, II There is noth­ ing available to show that the returns from taxation were appreciable any­ where before 1781." Jeremiah Wadsworth wrote Silas Deane, Nov., 1781, sayifl'g that the northern states especially were improving ill the management of their finances: Wadsworth Corresp. See also Nevins, American Slates, pp. 488-492. who shows the weakened character of the 1780-1781 paper money drive. 208 BUSINESS ENTERPRISE: REVOLUTIONARY ERA there, Joseph Jones assured Washington in October, 1780; a8 and two months later Arthur Lee wrote in bitter confirmation of the strange mood which had come over Congress:" Toryism is trumphant here. They have displaced every Whig but the

President." 8D The appointment of Robert and Gouverneur Morris, Robert R. Livingston, and Philip Schuyler to impor­ tant federal positions in 1781 aroused President Reed of Pennsylvania to exclaim that the situation had all the appear­ ance of a caba1.40 Samuel Adams insinuated in January, 1781, that self-seeking, luke-warm men would soon be high in national councils.41 But his was a voice from the past. In keeping with all such changes the merchants were now organizing, for the first time on a large scale, concerted plans for the support of a government the very establishment of which some of them had deemed undesirable five years before. Time and circumstance had required a change in tactics. Per­ haps they saw the whole financial and social structure collaps- ing unless they took charge. ' The evidence on this point is extensive~ Merchants of Phila­ delphia agreed in March, 1780, to receive the "new emission money" as equivalent to gold and silver.42 A "bank" was established there a little later to purchase provisions for the army, many members 'of the Morris group being among its sub­ scribers. A similar group supported the Bank 'of North America a year later, partly to assist Morris in his financing for Congress. Boston business men raised subscriptions in June, 1780, to purchase supplies for the army, leaders being Isaac Smith, Stephen Higginson, Tuthill Hubbart, John Codman, and Russell Sturgis." In Boston, Salem, Newburyport, and

38 Burnett, Letters, V f 396. 39 To Elbridge Gerry, Nov. z6, 1780, ibid., p. 439 n. 40 Quoted in Sumner, Financier, II, 20. 41 Cf. R. H. Lee, Memoir of R. H. Lee, II, 126, 127. 42 Scharf and Westcott, Phila., I, 408 n. 43 Bostonian Soc. Pub., XI, II4-II7. THE QUESTION OF BUSINESS FREEDOM 209 Marblehead merchants determined to raise a loan of £30,000 in specie for similar purposes two months later." Connecticut traders, including Jeremiah Wadsworth, Barnabas Deane and their associates, addressed their assembly in April, 178o, de­ claring that they were even willing to sell goods at prices fixed by Congress, and to receive the national currency. They added, .. We desire your purchasing Commissary may be immediately ordered to make his purchases of such articles as are in our way that we may have an opportunity to show how much in earnest we are in this our declaration." 6. LaFayette received money raised by Baltimore merchants for the purchase of soldiers' clothing in the spring of 1781, and business men there appointed a committee to assist Major McHenry to the same purpose!' Virginia merchants offered money in April, 1781, to purchase arms for public use!7 Sound business ideas were vigorously enforced when Morris became the all-powerful Congressional Financier early in 1781 -the capping conservative triumph. Perfectly free trade and the sanctity of private property were his guiding principles, and political and economic freedom were closely associated in his mind. The latter Morris revealed when· demanding the establishment of the Bank of North America, .. to give a new spring to commerce in the moment when, on the removal of all its restrictions, the citizens of America shall enjoy and possess that freedom for which they contend." He continued, as always, strictly opposed to tender laws and trade embargoes and expedited their removal. 48 44 Otis and Henly to T. Pickering, Aug. 28, J78o, doc. 264441, Div. of Old Rea. 45 Copy of address under April 21, J780, Wadsworth Corresp. 46 Griffith, Annal, 0/ Baltimore, p. 93; B. Steiner, lame, McHeMY, p. 36; Scharf, Chronicle, 0/ Baltimore, p. 414- 47 Ct. Burnett, Letter" VI, 6g. 48 ct. Morris to Washington, July 2, 1781, in New York Hist. Soc. Coil., 11,465; Sparks, ed., Lett"' '0 Washington, III, 341. On the hard money and free trade resolutions adopted by Congress under Morris, ct. Stmmer, Financie" I, 94. 271, 272; on delight of the conservatives with the new 210 BUSINESS ENTERPRISE: REVOLUTIONARY ERA The public debt was another matter which Morris requested Congress to regard with special interest, else " those who are now most rich, may become poor, and those who are poor, may become rich." He argued the necessity for doing justice to the public creditors, "for a public debt, supported by public revenue, will prove the strongest cement to keep the Confed­ eracy together." He thought that it was" an advantage peculiar to domestic loans, that they give stability to Government by combining together the interests of moneyed men for its support.... " To those complaining about the state of the public debt-he received letters from such persons as Shee and Young of Philadelphia, Isaac Smith of Boston, and Charles Pettit of New Jersey-Morris extended the deepest sympathy. Yet it is significant that he was no foe to speculation in Loan Office certificates: " . . . even if it were possible to prevent speculation, it is precisely the thing which ought not to be prevented, because he who wants money to commense pursue or extend his business is more benefited by selling stock of any kind (even at a considerable discount) than he could be by the rise of it at a future period," he assured Congress!9 Like Hamilton, Morris believed that taxes were necessary and would stimulate industry. Like Hamilton, too, he probably wondered how the farmers could be made to bear their share. In evaluating Morris' record as Financier, it should be pointed out that the groundwork for his performance had been cleared by the sound money developments of 1780-1781: The amount of specie in the country in 1781 also made his work easier than that of earlier Congressional committees on finance. So plentiful was hard money, said an inhabitant of Lancaster, Pennsylvania, in July, 1781, that he had not seen a shilling of paper money since recently" leaving Virginia. 50 In October no order, c/. Burnett, Letters, V, 551, 579; for an example of the increased freedom of trade, c/. Essex Instit. Coli., XIII, 228. 49 Sparks, Diplomatic Corresp., XI, 454, XII, IJ2; Morris to Congress, Aug. 5, 1782, Journals 0/ Congress, XXII, 432, 444- 50 C/. Tyler's Quart. Mag., III, 33. THE QUESTION OF BUSINESS FREEDOM 211 money but gold and silver was in circulation in Boston.51 Specie came from the spending by the foreign troops, from Burgoyne's convention army (which seems to have been held as long as possible to that end),U from French loans, and from the Spanish islands' trade. As late as March, 1783, there was a superfluity of both specie and bills of exchange on Europe,s, though this happy condition was speedily dissipated. Under such conditions Morris turned to the supplying of the troops, with confidence in a new and individualistic system­ private contracting. The plan in use, of purchasing commis­ saries, he held wasteful. \Vhen he came into office, he said, the salaries of the commissaries in the middle and eastern states would have bought 3278 soldier's rations a day.M Contracts, however, had been anathema in 1776. \Vhen Elbridge Gerry heard of a rumor then that the troops were to be thus supplied, he laid it to Tory influence. N The history of profiteering in such ways was all too well known. Morris now declared, how­ ever, that contracts would best husband the country's resources. He set forth his beliefs to Oliver Phelps, the beef contractor: ..... in all countries engaged in war, experience has sooner or later pointed out contracts with private men of substance and talents equal to the understanding as the cheapest, most certain, and consequently the best mode of obtaining those articles, which are necessary for the subsistence, covering, clothing, and moving of an army." The only thing that could save America, he added, was perfectly free trade, the free sale and purchase of every article, every person judging for himself

51 According to Jonathan Amory, Yen:dith, AffUWY, p. m. As to ec:o­ IIIlIIlic raoun:a of the country in Ij'fIo, 171h, ct. Burnett. Letters, V, I:r;, s..s. and SIIIDIICI', Fi_in, I, 272, quoting contemporaries. 52 Ct. S. F. Batchelder, Bits D/ Cafftbridge History, pp. 99. 106. 53C/. Webster, PDlitical Essays, p.26711. 54 SUIIUICl', F"'-cin, I, 21)0; ct. also Yorris' claim of imprORmalt ill this line, in Sparks, Dipl_ti& CDf'fYsI .. XII, 117. 55 Baructt. Leturs, II, l2O, 121. , 212 BUSINESS ENTERPRISE: REVOLUTIONARY ERA in business. 58 One of the first persons Morris called upon to advance supplies was Philip Schuyler: " . . . if you are not fully employed otherwise you might start some worthy man under your patronage that might render essential Service to the Public with proper advantage to himself & connections in this line." 57 Morris was but following the development of the army contrast system in European countries in the foregoing century and a half, which had advanced capitalism there. 58 The significance of Morris' ideas was in the opportunities they gave to men like Duer, Wadsworth, and Sands, who were to be so active in promoting new capitalist enterprise in the following decade. In such ways, together with the liberation of business activities from public restraints, the political events of 1780 and 1781 eventually brought forth new economic fruits.

56 Sparks, Diplomatic Corresp., XI, 499, XII, I27; dividing up contracts, he argued, would be consistent with "democratic Ideas." 57 May 9, I78I, Schuyler Papers. 58 C/. F. J. Nussbaum, Historic Economic Institutions 0/ Europe, p. I93. CHAPTER X SOME ECONOMIC CONSEQUENCES OF THE WAR

IT is now necessary to survey broadly the changes made by the war in the economic status of individuals and groups, momentarily ignoring, in so far as possible, that second set of changes more clearly due to post-war business conditions. Far-reaching as the former were, they did not completely alter the social structure. Though the conflict destroyed many out­ ward signs of aristocracy, colonial class distinctions continued along generally similar lines after the cessation of hostilities. This continuation is partly explained by the kind of personnel introduced into the upper social levels, it seldom being from the extreme nouveaux riches. Many war-time successful mer­ chants had been small but well-established business men in colonial days. Above all, more wealthy colonials survived the war than recent writers suppose, the loyalist wealth-alienation theme having been over-emphasized. Let us now deal, how­ ever, with what evidence of change there was, as manifested in the war-time decline, preservation, or increase of the wealth of certain persons, and the resulting conditions of town and regional economy. Of course many persons were alarmed by what seemed at the time to be significant social alterations. Robert Treat Paine wrote from Boston in 1777, "The course of the war has thrown property into channels, where before it never was, and has increased little streams to over-flowing rivers: and what is worse, in some respects by a method that has drained the sources of some as much as it has replenished others. Rich & numerous prizes, and the putting six or seven hundred per cent. on goods 'bought in peace time, are the grand engines. Moneys in large sums, thrown into their hands by these means, enables them to roll the snow ball of monopoly and forestall-

2 13 214 BUSINESS ENTERPRISE: REVOLUTIONARY ERA ing.... " Traders and privateer owners, he continued, escaped the taxation that hit men with fixed property. Samuel Curwen, embittered loyalist, declared, "Those who five years ago were the • meaner people,' are now, by a strange revolution, become almost the only men of power, riches and influence..•. " 1 Society in Salem, Massachusetts, was apparently greatly altered. .. The men that had no money hardly, is now got the money, and when the publick calls thay with a hard heart & never used to pay Taxes find faIt & Dam all in public places ... the new Fangled Gentlemen as they are called. •.." Dr. Joseph Orne of that place wrote two years later, "I am weary to death of this dreadful war. It is attended with such irreg­ ular distribution of property ..."; " ... people have been raised by the war from the lowest indigence to affiuence." From Boston, James Bowdoin wrote in 1783, "When you come you will scarcely see any other than new faces . . . the change wch in that respect has happened within the few years since the revolution is as remarkable as the revolution itself!' Stephen Higginson, who profited by the changes, declared in 1787, .. I sometimes almost lament that the Aristocracy in 1783 was suppressed.... " In New York, John Jay had been told, .. You can have no idea of the sufferings of many who from affiuence are reduced to the most abject poverty.... " Pelatiah Webster wrote from Philadelphia, ". . . we have reason to lament with tears of the deepest regret the most pernicious shift of property which the above irregularities of our finances introduced, and the many thousands of fortunes which were ruined." .. The estates of those who are not in business, are crumbling to pieces," a Philadelphia lawyer de­ clared in 1778. In Charleston, David Ramsay asserted, new, bold traders replaced the old and " rapidly advanced their own interests," though some of these lost out at the end of the war.-

I Paine to Gerry, April 12, 1777, Austin, Elbridge Gerry, I, 220; Samuel Curwen, 1000rnol MId utlerl, p. 2511. 2 George Wi\1iams _to Timothy Pickering, July 2, 1780, in Essex Ill5tit. Coli., XLV, J210; Orne to Pickering, June, 1782, in Pickering, Pickering, SOKE ECONOMIC CONSEQUENCES OF THE WAR 215 However, such broad statements, usually made during the heat of conflict, must be accepted with reservations. It is not even clear how heavily people suffered through depreciated currency, which debtors are commonly said to have utilized at the expense of creditors! Many loans were called early in the war, before the currency fell greatly; contracts in kind fre­ quently replaced those in currency; debt settlement after 1780 was largely in state-fixed depreciation values.· Specific, detailed accounts of any such losses are "virtually non-existent. Indeed, Charles Biddle said, in his frank manner, "I have heard of a great many people losing by the Continental money but knew of but few." He, a merchant-captain, never lost thereby but on a single keg of rum! Jefferson's comment, that commercial bankrupts often falsely claimed losses from depreciated cur­ rency as an excuse, is enlightening.· Of course merchant-capitalists with sums invested at interest had feared dire results-as did Moses Brown, for example; but, considered in their trading capacity, it may be argued also that they stood to gain through depreciation. What merchants really feared were legal tender and price-fixing acts-speedily

I. 3650 366; Bowdoin to Thomas Powua1l, Nov. 20, 1j83. 7 CoU. Mass. Mist. Soc.. VI, 2a; to Samuel Osgood, Feb. 21, 1787, Osgood Papers, I.; Sumner, Fm.cvr, II, 180; Webster, Political Essays, !).tn; Diary of James Allen. July, 1778. in P_ M/Ifl. Hisl. Biog., IX. 440, 441; Ramsay, HUt. SOtIIII CtlToliloG (11Iog), II. 23S, 23Il a Samud Dater wrote James Bowdoiu, Jan. 26, 1779, of how the cur­ reucy had .. made a Ucrifice of all the lJlOIIeYed men" (Mass. Rist. Soc:. Proc., VI, 360); Pdatiah Webster said that .. thousands .. of families of fortune were ruined by Iega1 teDder and price fixing laws (Politieal Essays, 129 0.) ; but names and figures are always Iadcing. 4 This gmeralizatioa ignores the question of southern debts. James Wilson said, Feb., 1m, that PCDD5}1nnia .. usurers" bad called in their money (Barnett. Lnurs. II. 245); Jooathan Amory of Boston apparently did the -. but at a Iosa (Meredith, AffIDr'Y, p. 244). Franklin thought that clepreciatioa acted as an equitable tax, according to ability to pay. i Biddle, Alllobiograli'" p. 237. 6 WrUiltgs, Ford, ed., IV, ISS. 216 BUSINESS ENTERPRISE: REVOLUTIONARY ERA recognized as useless as we have seen 7-rather than deprecia­ tion itself. They could rapidly pass on the currency in busi­ ness, and if there was a fairly consistent rise in prices, they could gain simply by keeping the time period between invest­ ment in, and the sale of, one set of goods greater than the period between that sale and a re-investment of funds. Small wonder that store houses were attacked by mobs on several occasions and public wrath raised against "forestalling" for higher prices. Aaron Lopez expressed the merchant's point of view in August, I 779, when he advised a partner to charge four to six times as much for goods as previously to avoid losses from changes in currency values.8 Moreover, many merchants them­ selves probably never paid war-time interest on debts owed abroad, as was true of Comfort Sands after the New York court decision in his favor in 1786. Some merchants did suffer heavily from other causes. There is no doubt but that the New England fisheries were tempor;­ arily destroyed, along with their foreign markets. The whale oil and candle business was ruined along with Nantucket's warehouses.9 Merchants sustaining heavy losses included Wil­ liam Greenleaf of Boston and Jonathan Jackson of Newbury­ port. The latter declared that he lost £6000 sterling in vessels in 1781 and probably £2000 or £3000 more in 1782.10 William Vernon of Newport is said to have suffered a loss of £12,000 sterling by reason of the British occupation, in addition to real estate destroyed by fire.ll The business of Jewish mer­ chants in that place largely disappeared, for similar reasons. Patriot merchants of New York City, such as the Biackwells

7 Abigail Adams sa.id that the. Massachusetts price law of 1777 was abso- lutely ignored: Familiar Letters, p. 261. ' 8 Commerce of Rhode Island, II, 66. 9 Morison, Maritime Hist. Mass., p. 1s6; State Papers, Commerce and Finance, I, 9. 10 Jackson to Oliver Wendell, March 28, 1782, Jackson Papers. 11 Stone, Our French Allies, pp. 229, 230. SOME ECONOMIC CONSEQUENCES OF THE WAH. 217 and Daniel Phoenix, also suffered, we are told.12 Many Phila­ delphians sustained property damages during the British occu­ pation, though the list of claimants has surprisingly few names of the great merchants.1B It is obvious, however, that such losses as these were largely the result of accidents and depredations - not of a lack of commercial opportunities. Ships had not frequently rotted at wharves during the war, though they occasionally may have done so several years later. Though all war-time commerce was a gambling proposition in which many persons naturally lost, it is difficult to substan­ tiate the statement by Gouverneur Morris in 1785 that the American merchants, taken collectively, were" poorer by mil­ ions" as a result of the war"· (It is not difficult to criticize his remarks on the grounds that they were intended to influ­ ence public opinion on a heated issue in Pennsylvania politics, and because he may have taken into account the post-war de­ pression changes.) While he properly called the successful war-time merchants a minority, it does not follow that the wealth of the mercantile class had been greatly depleted. But­ and this is the important thing - only a minority is neces~ sary for aggressive business leadership. Members of that minority were certainly to be found in Baltimore. In Connec­ ticut the post-war figures of Wadsworth and his associates may be contrasted with those of little traders in pre-war years when the colony, as a contemporary remarked, had no man of considerable property.15 A competent recent student has spoken of the "new race of merchants" produced in Rhode Island during the war.u Philadelphia received a group of pro­ fessed Whigs after the British left in 1778, many of whom

12 Scoville, Old Merclumts, II, 132, 133; Stevens, Colonial Records Chamber of Com".,ret, Biographical Sketches, pp. 154, 155. 13 The list is ill Scharf and Westcott, Phila., II, 386 n. 14 "Address on the Bank of North America," in Sparks, Morris, 111,445. 15 Cf. 2 Proc. New Jersey Hist. Soc., I, 178. 16 F. G. Bates, Rhade Island and lhe Union, p. 88. This seems to me to be an over-statement. 218 BUSINESS ENTERPRISE: REVOLUTIONARY ERA made sudden riches,11 though they were relatively unimportant compared with the wealthy merchants surviving from colonial times, or with the newly developed Morris associates. Another assertion of Gouverneur Morris, that the war had ruined or frightened money-lenders until, in 1785, none re­ mained,18 was more correct. Though there is some evidence to the contrary, this opinion is substantially in agreement with Robert Morris' statement in 1782, that the few men who had money were now so reluctant to lend that usury was being practiced. II The Jew Brokers and others have informed me in the course of my inqueries that Sub Rosa they frequently get 5 per Ct. p. month from good Substantial men for the use of Money with pledges lodged for the repayment. they add that before the establishment of the Bank they frequently got ten pr ct & upwards." l' If it were true that moneyed men had lost faith in personal loans, it follows that they were now forced to seek investment opportunities elsewhere. This is ob-, viously of the greatest importance in explaining the subsequent evolution of new investment mechanisms. More sweeping social changes probably resulted from the alienation of loyalists and the confiscation of their fixed real property. It is important to know to what extent such perse­ cution was carried out, for the property of many pre-war capitalists was threatened by such procedure. The names of wealthy loyalist De Lanceys, Wallaces, and Philipses of New York, of Hutchinsons, Borlands, and Taylors of Boston, of AlIens, Galloways, and Shoemakers of Philadelphia, suggest that wealth and loyalist principles frequently went hand-in­ hand.

17 Statemeut by Jeremiah Wadsworth. in Papers 0/ George Clint"", IV, 303; c/. also S. N. Winslow, Philo. Mer,iaallls, p. 167, who overstates the case for the newcomers. 18 Sparks, Moms, III, 44S; c/. also Webster, Politicol Esmys, p. 442. 19 To Richard Butler, Aug. 26, 178:2, Morris Papers in New York Public Library. He, also, was promoting the Bank of North America. SOME ECONOMIC CONSEQUENCES OF THE WAR 219 Fortunately for the financial future, persecution of loyalists was relatively mild compared to what it well might have been. Many survived and retained their property. Thus the wealthy Tory, John Worthington of Springfield, Massachusetts, even hecame moderator of the town meeting once again after 1778.20 From Albany, New York, wealthy Goldsbrow Banyar, for­ merly secretary of the province, simply retired to Rhinebeck, was popularly called an enemy to his country, but judiciously refused to commit himself and thus preserved his property.21 Southwestern Connecticut, especially the towns of Stratford and New Haven, were hotbeds of loyalism. In the former a prominent lawyer, William Samuel Johnson, could successfully refuse to commit himself on the burning issue and yet retain the friendship of outstanding Whigs.22 An important minor­ ity of business men in New Haven were Tories. Some of them, for example, remained in the town when the British raided it in 1779; but most merely suffered the reprimand of a town investigation.21 In several places outstanding citizens acquired the title of Tory by remaining in England during the war, as did one of the Boston Amorys, who nevertheless returned home shortly after the peace and suffered no serious disabilities. A survey of the merchant-capitalist class in particular re­ veals many similar examples. The alienation of loyalists plainly altered the personnel of the merchants of Boston and New York far more than it did that of Philadelphia. Boston suf­ fered the most, yet only a small minority of her merchants was exiled for loyalist principles,24 and not all of these were 'JIJ ct. Mason Green, .. Springfield," pp. 286, 309; H. A. Booth in Conn. Valley HisL Soc. Papers, II, 298, Jill. 21 Munsell, An"ail 0/ Alba"y, V, 278 If. 22 E. B. Greene, .. William Samuel Johnsoo and the American Revolution," in Col. Univ. QND,,'., XXII, 174-176. 23 F. B. Dexter, .. Notes on New Haven Loyalists," in New Haven Col. Hist. Soc. Papers, IX, 44; C. H. Levermore, RePublic 0/ New Haven, Po 221; E. E. Atwater, Hi.rt. New HQ'IIe/J, p. 63. 24 146 Boston merchants had formed a society in 1763 (Col. HisL Soc. Pub., XIX, 163). There were only 27 merchants and 36 traders among the 220 BUSINESS ENTERPRISE: REVOLUTIONARY ERA important. Some, however, were very wealthy-the Ervings, Winslows, Clarkes, and Lloyds - and their departure must have had pronounced social consequences, as did the elimina­ tion of such distillers as the Coffins and Brinleys. The merchant cJass of Philadelphia in no wise suffered in numbers as compared with Boston, or in importance as com­ pared with Boston and New York, of individuals exiled and deprived of their property. The evidence on this point is largely negative.25 John Parrock, Isaac \Vharton, Edward Pennington, and Benjamin Gibbs were among the few expelled merchants of some previous importance. The most liberal estimate of their kind constitutes but a fraction of the great commercial group of Philadelphia which, in 1765, numbered around four hundred merchants and traders. 28 War-time pro­ scription of loyalists of all kinds was relatively mild there.21 There was a considerable Tory group in Philadelphia, how­ ever, identified with the addressers of General Howe and with the signers of a currency petition in connection with British army purchasing, which included not only long wealthy Quaker merchants, such as Samuel Powel, William Fisher, and the Whartons, but also prominent non-Quaker merchants such as Thomas Willing and Archibald McCall.28 Such persons had

123 addressers of Gov. Hutchil15oll! in 1774 (Mass. Hist. Soc. Proc., XI, 392-394). 46 Boston merchants were named in the Banishment Act of 1778 (Stark, Loyalists of Mass., pp. 137-139). It is difficult to identify merchants in the names of loyalists given by Jones and Stark, but they certainly do not enlarge the above figures. 25 Sabine mentions onJy about 30 Philadelphia merchant loyalists. Scharf and Westcott, Phila., I, 386, 387, mention about the same number attainted as traitors in 1778, the biggest year (Siebert, .. Loyalists of Penna.," p. 58). The names given in Col. Recs. Penna., XI, XII, passim, are not very enlightening, failing to give professions in all cases, but, so far as I can determine, they support the above generalizations. Lists of confiscated prop­ erty owners in Philadel.phia are given in Scharf and Westcott, op. cit., I, 397 n., 4II 1Il., 419 n., 424 n. 26 Cf. signers of Stamp Act trade resolutions, in Scharf and Wes·tcott, op. cit., I, 272. 27 Siebert, op. cit., pp. 58, 59. 28 Schad and Westcott, op. cit., 1,365 n. SOME ECONOMIC CONSEQUENCES OF THE WAR 221 to endure public criticism after the British departed, but most of them suffered no serious disabilities of an economic nature. In New York the greatest sufferers from confiscation were the large land-owning families, which included, however, mer­ chant Crugers, Wallaces, Bayards, and Whites. It is true that of the 104 members of the Chamber of Commerce, fifty-seven merchants were out-and-out loyalists and twenty-one decidedly " neutral"; 28 yet many of these continued in business in the city after the· war, or quietly returned there after short absences. Notable among those persons the bulk of whose property was saved from confiscation were Theophylact Bache, Thomas Buchanan, William Laight, Daniel McCormick, Thomas Marston, William Seton, Richard Yates, John McVickar, Gulian C. Verplanck, John Vanderbilt, and Daniel Ludlow, and non-merchants such as the brewer Joshua Waddington and the lawyer Richard Harison. Bo It is significant in this con­ nection that John Rogers, Jr., originally of Boston, could trade in New York City during the war, make a trip to Eng­ land and return in June, 1783, bringing back a quantity of English goods, part of which he sold to the British army; and then, in spite of a "little uneasiness" on the part of the New York populace, that he could continue in trade there with no action apparently taken against his property.81 The truth is that thorough-going persecution would have decimated the merchant class: the majority of persons in southern New York had been loyalists and they simply could not be eliminated outright, though they were made to endure vindictive taxes. sa

29 ct. v. D. Hanington, New York Merchant, pp. ;WI-35I. 30 Stevens, Colonial Recs. Clwmber 0/ Commerce, Biographical Sketches, pas';",. For the New York property confiscations, 1784-1789. ct. Flick, LOl/ali.rm in New York, appendix, which apparently is complete so far a9 names of original possessors of confiscated property in New York City are concerned. The majority of the merchants of the city obviously escaped the process; only a handful of them, though the most important, was named in the great forfeiture act of 1779 (ibid., p. 147). 3110hn Rogers' Letters, passim, in Hudson-Rogers Papers, Box II. 32 Flick, op. cit., pp. 165, 166. 222 BUSINESS' ENTERPRISE: REVOLUTIONARY ERA It is true that returning patriotic merchants of New York City demanded reparations for their suffering, .from the prop­ erty of those who " by their wicked devices, had prolonged the war and multiplied distress." 88 It is also true that the reorgan­ ized Chamber of (:ommerce kept out loyalists until Febru­ ary 17, 1787, though it was headed by John Alsop who had been "neutral" himself!~ Even a Clinton legislature, how­ ever, passed an act as early as May, 1784, permitting certain loyalists to remain in the state. And doubtless the Chamber of Commerce was merely sailing with canvass prudently reefed to the winds of popular feeling, for some patriots did feel, like Ralph Izard of Charleston, that "The British merchants and the Tories who lost little or nothing by the war, are in possession of the greatest part of the specie of the coun- try.... " 85 It is difficult to answer the bitter question of Judge Jones, why some loyalists were generously overlooked while others were stripped of all their property.86 Probably the nepotism of relatives and friends, a prime factor in worldly affairs, pro­ tected the fortunate ones. Trader Daniel McCormick of New York, himself a loyalist, wrote on May 12, 1783, for a list of confiscated estates, " to serve some of our friends who may be taken in if not properly Informed." 81 Friends and relatives saved the bulk of Theophylact Bache's property!8 The peace treaty, moreover, was the salvation of many of the disaffected, as the N ew York loyalist Henry Van Schaack had hoped it would be. 89 Indeed, the careers of several members of the Van

33 Petition to Assembly, Feb. 13, 1784, in Stokes, Iconography. 34 MS Minutes. 35 To Jefferson, July I, 1786, in South Carolina Hm. Genealog. Mag., II, 199. 36 Jones, Hist. of New York, II, 305. 37 To John McKesson, McKesson Papers, Box I, no. 77, in New York Hist. Soc. 38 Flick, 0;. cit., Po 1S9. 39H. C. Van Schaack, Memoir's of HeMY Van Schaack, p. 94. Jefferson SOME ECONOMIC CONSEQUENCES OF THE WAR 223 Schaack family are most revealing on the above questions. In spite of their known loyalist attitude, such persons as Oliver Wendell of Boston, Theodore Sedgwick of Great Barrington, and Gouverneur Morris of Philadelphia had sympathized with them. The war over, the removal of political disabilities from Peter Van Schaack was secured by John Jay and Jeremiah Van Rensselaer. Henry Van Schaack was able to leave New York City at the time of the evacuation and to receive protec­ tion and citizenship in Massachusetts. The Van Schaacks were certainly not ruined by the war. In 1784 and 1785 they went about collecting from debtors, and investing in real estate mortgages and in bonds of the town of Stockbridge.40 In such ways considerable colonial capital, together with a portion of the old society of New York as of other places, was preserved for reconstruction years. Representatives of such famous colonial groups as the Lispenard-Bleecker-Lud­ low, the Gouverneur-Curson-Seton, the Ludlow-Crommelin­ Verplanck, the Low-Gouverneur-Cuyler, continued to be im­ portant in New York's post-war business. Upon such social foundations did the commercial house of Bache arise; upon them was such a famous commercial company as LeRoy, Bay­ ard and McEvers erected. The marriages of young Daniel Crommelin Verplanck, Thomas Pearsall, and the younger Roosevelts and Goelets also helped to perpetuate parts of the better class of colonial society. Newcomers to the city imme­ diately after the war-especially young men with military careers, such as Abi jah Hammond, Richard Platt, Robert Troup, Richard Varick, and, of course, Alexander Hamilton­ invariably became connected with the old families by marriage and contributed to the carryover of economic and social influ­ ences from earlier times. declared that, to his knowledge, not a single confiscation act was passed by any state after notification of the peace settlement (Writings, Ford, ed., VI,28). 40Van Schaack, Hervy V/JII Schaad, pp. 85. JoB, JJ3-JJ5. J88; ide",.. Li/, 0/ Pd" V. Schaack, pp. 355. JRo, 38J. Henry had had a store at Kinderhook during the conftict, and apparently sold to both sides. 224 BUSINESS ENTERPRISE: REVOLUTIONARY ERA The alienation of some long-established merchants, however, everywhere permitted the entrance of new figures and increased the relative importance of those who survived. Such fortunate persons profited in one way by purchasing confiscated estates cheap. Even in N.orth Carolina, a member of Congress de­ clared, the rich made a monopoly of confiscated lands.41 In Boston the merchant Caleb Davis was state agent in the in­ fluential role of disposing" Absentee Estates." It was doubt­ less confiscated property which Samuel Breck, the French navy provisioner, purchased for 1200 gold guineas in 1780.42 El­ bridge Gerry of Marblehead, who had carried on a vigorous commerce during the war, secured a loyalist's estate in Cam­ bridge. 43 The rich merchant Thomas Lee of Pomfret, Connec­ ticut, did likewise in 1779. The Cabots of Beverly purchased in 1781 a great New Hampshire estate of the former Gover­ nor Wentworth for depreciated Continental Currency. Andrew Cabot of Salem bought the Lechmere and Oliver estates in Cambridge, as did Nathaniel Tracy of Newburyport part of the Vassall estate, which, however, he was shortly after obliged to sell. 44 Another part of the Vassall lands went to merchant Pascal N. Smith, son-in-law of .. King" Sears of the" Lib­ erty Boys," at alleged half value.45 Isaiah Doane, Joseph Bar­ rell, Thomas Russell, James Swan, Thomas Walley, Samuel A. Otis, John Coffin Jones, and John Codman, Jr. were other wartime Boston merchants who took advantage of such oppor­ tunities.46 Andrew Craigie, the Apothecary General of the

41 Thomas Burke, to Arthur Middleton, July 6, 1782, in So'llllh Carolina Hist. Genealog. Mag., XXVI, 203. 42 Samuel Breck, Recollections, p. 37. 43" Elbridge Gerry," in Diet. Amer. Biog. 44 L. Paige, Hist. of Cambridge, p. 170; Crawford, Famous Families of Mass., I, 166, 167; Batchelder, Bits of Cambridge Hist., pp. 192-194- 45 Ct. complaints of William Vas sail, in 7 Coli. Mass. Hist. Soc., VI, 69. 46 John T. Hassam, .. Confiscated Estates of Boston Loyalists," in 2 Proc. Mass. Hist. Soc., X, 162-185. SOME ECONOMIC CONSEQUENCES OF THE WAR 225 Continental forces, secured part of the Vassall estate for de­ preciated currency-" the house that jack built." U The New York situation was even more complicated. Pay­ ment for confiscated estates could be made in various kinds of public paper or in specie, which would seem to have made it possible for numerous persons to secure such property. Certain patriotic merchants, however, were again the foremost purchasers. The Sands brothers secured much of the Rapalje estate in Brooklyn in soldiers' pay certificates which they bought up in large quantities at a very low rate.'8 Isaac Roosevelt bought at least fifty-nine lots and several very val­ uable city locations on Manhattan Island. Isaac Gouverneur, Jonathan Lawrence, Cornelius Ray, and Henry Ten Broeck, all merchants, each secured many lots there. In amount of money expended Isaac Roosevelt, Philip Livingston, Daniel Phoenix, Henry Tiebout, Melancton Smith, Dominick Lynch, Nicholas Low, Cornelius Ray, the Gouverneurs, and the Sandses were the leaders. Newcomers such as John Delafield, Abijah Hammond, and Benjamin Walker were also very active. So were General Alexander McDougall, and the war­ traders Morgan Lewis and Melancton Smith, all of whom purchased on Long Island."· John Carter, the French agent, had been eager to invest in this fashion as early as I779.GO There can be no doubt that the Whig merchants skimmed off the cream in buying confiscated estates of southern New York.

47 Cf. Col. Soc. Mass. Pub., VII, 404 n. 48 H. R. Stiles, CMnty of Kings and City of Brooklyn, I, Il9. 49 These statements are based on A. C. Flick, Loyali"m in New York, appendix, and on an Abstract of Sales of Loyalists' Estates for Southern Department, in New York Hist. Soc., p. 67 eI passim. Mr. Harry Yoshpe, a student at Columbia Univ., who has done much work on the actual deeds of sale, assures me that the above sources are misleading-that the deeds· do not always jibe with these records. I understand him to agree, however, that the immediate effect of the sales was to tum over the best confiscated property to a relativdy small group, in which the above- mentioned persons were pr~inent. 50 Jan. 29. J779. Schuyler Papers. 226 BUSINESS ENTERPRISE: REVOLUTIONARY ERA There is no evidence that the merchants of Philadelphia engaged so extensively in this business since the property con­ fiscated there was of little value compared with that in Boston and New York. A little merchant, James Budden, purchased frequently, however, and James M~se and Samuel Caldwell obtained some of Joseph Galloway's lands. Matthew McCon­ nell and several others also secured some Philadelphia real estate in this fashion; but a lawyer, Daniel Clymer, and Hugh Shiell, a wealthy doctor lately arrived from Europe, were even more extensively engaged than were such merchants.&! It has been pointed out that Robert Morris became interested with William Duer in confiscated New York lands, though he said that he was not fond of so doing because it might appear that such had been his motive in supporting the rebellion. An inci­ dent in the sale of confiscated lands near Philadelphia in 1780 throws light on the interests of another member of the Morris group, John Maxwell Nesbitt. He was on the state committee which prosecuted John Roberts, whose mills were sold in 1779 to a person who immediately re-conveyed them to Nesbitt and others. 52 In the light of these facts it is important for an understand­ ing of post-war investment activities to consider specific exam­ ples of favorable change in personal fortune during the con­ flict. These largely concern merchants and their lawyer asso­ ciates. Complaints about such growth of private fortunes were numerous, but they should not be accepted at face value. In Virginia there was the notion that merchants elsewhere were becoming opulent.58 A .. radical" member of Congress de-

51 Col. Rec. Penna., XI, XII, passim. 52 ct. Penna. Mag. Hist. Biog., L, 5; Nesbitt secured other" forfeited" lands: ct. Conyngham, .. Reminiscences," pp. 189, 190. 53 E. g., Benjamin Harrison to Robert Morris, March 28, 1782, ill' Morris Papers in New York Public Library; ct. also, Thomas Burke's charge, in 1777, of the "practice of speculative monopoly" prevailing in all northern states: Burnett, Letters, II, 258. SOKE ECONOKIC CONSEQUENCES OF THE WAR 227 elared in 1777 that opportunities for laying out money im­ proved every day, and even a "conservative" member said that the pursuit of private interest would surely result in mak­ ing a fortune in Philadelphia. M James Warren asserted in 1779 that in Boston, "fellows who would have cleaned my shoes five years ago, have amassed fortunes, and are riding in chariots." 1$ Accusations that public commissaries and mer­ chants who sold supplies to the army profited thereby, were especially common. The testimony of a clerk of Blair Mc­ Oenachan, as to his (the clerk's) profit of £700 Continental currency, made in six months in 1776-1777, "chiefly by buy­ ing up Liquors and selling them to the Commissaries of the Army," is a valuable piece of evidence." Daniel Parker, army contractor under Morris, addressed his partner Duer on Oc­ tober 26, 1782, saying, "it will be advisiable (I think) to prove the profits that were really made on the 3 first months of the Contract & Charge the Same profits on all the Rations that would have been issued until the 1st of Jany.... " Gf Examples of merchants whom the war favored include John Langdon of Portsmouth, New Hampshire. Fond of money and with a positive genius for obtaining it, he invested in privateers and carried on trade and ship building. He thus added to an already considerable fortune, so that in 1786 he could afford to build a bridge and present it to the town.1II M Burke, Feb. 8, 1m, in Burnett, ulters, II, 242; John Jay, April 27, m9. ibid.. IV, J9O. 551bid., IV, 26g Do On fortunes said to have been made in paper money, 1'1. translator's remarks in Otastellux, T.-awls, I, J30 n.; he goes OIl to sar, bowner, that this making and breaking of fortunes through paper -r was by DO means so common as represented in Europe. MPt'toaG. JlGg. HUt. Biog.. XIX, 399; OWoner and White complained of this clerk's activities. For another example of enormous profits, c,. Sumner, Fi_in. I. 304- 57 Doer Corres.,. 58 C/. E. S. Stackpole, HUt. 01 Nt'fII Hafft/,shi.-t', II, 281, 283; also Plumer's ).IS Biog.. in Nt'fII Hafftpshi.-r Statt' Pa",.-s, XXI, 80S; Nathaniel Adams, ,A"fIOls of PDrlSfftovtla., p. 286. There is the usual story that be lost by the war, but Stackpole is the latest authority. I 228 BUSINESS ENTERPRISE : REVOLUTIONARY ERA It is significant, moreover, that Langdon did not belong to the governing class of pre-war days. In Newburyport the success­ ful privateering of Thomas Thomas helped him to purchase the estate of the formerly wealthy Jonathan Jackson.59 The wealth of Captain Richard Stacey of Marblehead was simi­ larly augmented by war opportunities, though he was affected by the post-war depression.60 "The Cabots of Beverly," a loyalist wrote in 1780, "who, you know, had but five years ago a very moderate share of property, are. now said to be by far the most wealthy in New England. Hasket Derby claims the second place on the list. •••" 61 During the war young Israel Thorndike, also of Bev­ erly, got his business start. "Some Brackets at Braintree & some other men along the Southern Shore" were said by a contemporary to have made fortunes during the conflict.82 In Boston itself merchant David Sears must have gained, else how explain his standing in 1785 compared with his fortune­ seeking arrival there in 1770? 63 Merchant Joseph Cutts,' a former clerk of Sir William Pepperrell, could buy up much of the latter's confiscated property at the end of the war. Surely the activities already noted of merchants Thomas Russell. Joseph Barrell, Samuel Breck, John Codman, Caleb Davis, and others produced their relatively more important economic position there, especially with many wealthy loyalists removed. In Providence Welcome Arnold became a trustee of Rhode Island College in 1783, suggesting a changed status, since he had entered trade only a few years before the war. He also remodeled an excellent residence for himself in 1785 and was

59J. S. Currier, "Ould Newbury", pp. 569. 570. 60 Ha1'riet S. Tapley, .. Captain Richard Stacy of Marblehead," in Essex Instit. Call., LVI, 85. 61 Quoted in Lodge, George Cabot, p. 13 n.; c/. also L. V. Briggs, Cabot Family, I, 100. 62 Jonathan Jackson, Feb. 23. 1782, Jackson Letters. 63 C/. Crawford, Famous FllIInilies 0/ Mass., II, 365, 366; he is said to have been a success-ful merchant when he married.a Winthrop in 1785. SOME ECONOMIC CONSEQUENCES OF THE WAR 229 one of those creditors who subsequently had to dodge debtors in the troubled years of Rhode Island's "stay" laws.u Thomas Lloyd Halsey enjoyed a similar rise in fortune. Nathanael Greene is said to have once raged at John Brown of Provi­ dence, accusing him and others of making fortunes while army officers sacrificed themselves. os In Norwich, Connecticut, mer- . chant Daniel L. Coit was able to build a beautiful home in 1784.0. At Albany Jacob Vanderheyden bought his" palace" in 1778, and John Stevenson built his famous mansion there between 1775 and 1780; 87 but these two cases merely indicate strength in warding off economic disaster since both men had been wealthy before the war. The career of Thomas Lowrey of Flemington, New Jersey, plainly shows success in milling and land-purchasing activities which enabled him to set up in business in Philadelphia about 1782.88 Blair McOenachan of Philadelphia could purchase in 1779 the elaborate country estate of Benjamin Chew, and Robert Lettis Hooper secured a similar " elegant seat" at the falls of the Delaware that same year.·8 During the war Stephen Gira~d undoubtedly laid the foundations of his great mercantile career. Thomas Learning found privateering so profitable that he abandoned the law and won a fortune of fifty prizes.To The Markoe brothers, political "neutrals," did well enough in the West India rum and sugar trade to patent two-thirds of an important business block in Philadelphia in 1782-1783.71 The M R. A. Guild, BrOWfl Uwiversity, p. S49; Merchants National Bank, Old p,.uvideJlu, p. 13; Tristram Burges, .. Memoir of Welcome Arnold." 65 F. V. Greene, Gltrteral Greerte, p. 122. In 1786, John Brown owned real estate in 12 different towns, in addition to his great mercantile interests: Bates, Rhode 1slartd, Po 126. 66 Mary Perkins, Old HONslts of Norwich, Chap. XIX. 67 MumeU, AlNIDls of Albany, I, 278, 283. 68 Henry Race, Skltlclt of Tltomas Lowrey, passim. 69 c. P. Keith, Provitseial CONrlCillors of PenM., P.330; PeJIJIQ. Mag. His!. Biog., XXXVI, 8g. 10Winslow, Phila. MerchaJlu, pp. 6!>-72. 11 Jackson, Markel SIrul, p. 147. 230 BUSINESS ENTERPRISE: REVOLUTION ARY ERA recovery of Haym Salomon from economic destitution to his condition in 1784, when he returned to New York and is said to have purchased a $6000 property/2 speaks for extraordinary opportunities. The rise of \Villiam Bingham to independent fortune is scarcely paralleled by the increased business impor­ tance of Robert Morris himself.78 The war-time success of several Baltimore merchants has already been pointed out. In Alexandria, Virginia, John Dalton, Thomas Herbert, and· Philip Fendall could build spacious homes shortly after the war, and William Herbert was congratulated in 1784 by a Philadelphian who had heard of his success in trade. U There are similar cases in New York City. Comfort Sands, henceforth a prominent merchant, had not even been a mem­ ber of the Chamber of Commerce before the war, though his youthfulness may have explained that in part. His brother Joshua built a gracious residence in Brooklyn in 1786. John R. Livingston first set up in business in New York about 1784 after varied war activities which started him on a considera:ble commercial career. Business newcomers in New York City in 1784 included Andrew Craigie, William Duer, William Edgar, and Alexander Macomb who had had profitable experience in army-supply work. The first vice-president of the reorganized Chamber of Commerce was none other than" King" Sears, who was certainly not prominent in business in colonial times. The first president of the city's first commercial banking insti­ tution, founded in I 784, was General McDougall, formerly a privateer commander and storekeeper; but both ,he and Sears

72 ct. Pub. Amer. Jewish Hist. Soc., XXVII, 227. 73 A broadside of Willing and Morris in 1770, which now hangs on the wall of the Manuscript Room of the Harvard Business School Library, gives some idea of their provincial reputation, which they were trying to overcome for a new scheme of West India trade. A contemporary comment on the increased fortunes of Morris, Bingham, and John Ross is found in ·Wa,.,.e,..Adam.r Letters, II, 184- 74 Benjamin Fuller to William Herbert, Aug. 2, 1784. Fuller Letter Book, 1784-1787, in Hist. Soc. Penna. SOME ECONOMIC CONSEQUENCES OF THE WAR 231 were doubtless helped to such positions by their Whig political records. The emergence of a new group ofJawyers, many of whom got off to a successful practice during the war, was another change of first importance. The loyalist attitude of some of the older men gave the young their chance, and fortunes could be made in the law during the war, especially if one stayed out of politics.1I Land speculation and loyalists' claims cases con­ tinued the lawyer's good fortune after 1783. The list of these rising young lawyers is long. Jared Ingersoll, Jr., and Alex­ ander Wilcocks established their practice in Philadelphia dur­ ing the war. At its conclusion ex-army men such as Richard Varick, John Laurance, Robert Troup, Alexander Hamilton, and Aaron Burr put new life into the New York courts. The office of John Lowell of Newburyport and Boston trained an enterprising group around 1780, including Rufus Greene Amory, Christopher Gore, and Harrison Gray Otis. Judge Lowell and Gore, the latter the son of a loyalist, handled many loyalists' cases. Theophilus Parsons was just getting his start at Newburyport during the Revolution. Rufus King was then trained by him and soon acquired a successful practice of his own. Other successful young Boston barristers included Wil­ liam Tudor (like John Laurance, a Judge Advocate for the Continental army), Perez Morton, and Thomas Dawes. In New Haven thirty-six year old Pierpont Edwards led his pro­ fession in 1784. By the end of the war it was also apparent that "metro­ politan economy" was increasing: the gravitation of capital and business men to certain centers showed that discriminating centralization movements were under way. Naturally, these were in the direction of the better seaports, especially those which had been fortunate in war-time trade.

7500 a certain Baltimore lawyer, ct. B. Steiner, lames McHerwy, p. 45. John Adams states in 1m that privateering cases made the lawyer's pro.. feasion more lucrative than ever before: Works, C. F. Adams, ed., 111,89. 232 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Portsmouth, New Hampshire, emerged from the war in a strong position, though she was to suffer like all other places from the subsequent post-war commercial depression. If there was no astonishing prosperity there, trade had not fallen away, and beautiful houses were erected late in the war years. 76 Salem, Massachusetts, like Boston, gained somewhat at the expense of smaller neighboring places. Though her shipping tonnage did not reach its 1771 total for another decade,77 Salem had built larger ships and had given daring opportuni­ ties during the war to a brood of seamen which shortly after made her great in a far-flung world trade. The metropolitan economy of Boston continued to be retarded through lack of water connections with her back country, but the Revolutionary era as a whole saw the development of her marketing area in certain parts of Massachusetts, Vermont, and New Hamp­ shire.7s There was, moreover, a significant movement to Bos­ ton during and immediately after the war, made up largely of merchants from the North Shore with a sprinkling of court­ try squires. Stephen Higginson of Salem led the procession; the Cabots, Lees, Jacksons, Lowells, Grays, and Elbridge Gerry, from Beverly, Salem, Marblehead, and Newburyport, followed. Many of the newcomers picked up confiscated estates cheap.70 The merchant and broker Moses Michael Hays of Newport, the merchant William Hubbard of Norwich, and the lawyer James Sullivan of Maine made the same change. The result was the injury of some of the smaller lo~ns, it being a complaint in Beverly in 1780 that money was being lost be­ cause citizens were purchasing estates in Boston.so

76 Rat.ph May, Early Portsmouth Hist., p. 252. 77 CI. Osgood, Sketch 01 Salem, p. 130. There are conflicting figures, how­ ever, some more favorable than these. 78 CI. Nathaniel Gorham's statement in 1791, in Arthur Cole, ed., Hamil­ ton's Industrial and Commercial Corresp., p. 65. 79 H. C. Lodge, in Memorial Hist. Boston, III, 191; cl. also his Boston. pp. 161, 162. 80 CI. O. T. Howe, in Col. Soc. Mass. Pub., XXIV, 378. SOME ECONOMIC CONSEQUENCES OF THE WAR 233 Providence had similarly gained but to a lesser degree. The Arnolds, Olneys, and Smiths of Smithfield continued to drift within the sphere of the town's influence. The merchant An­ drew Dexter settled there in 1785, and the Newport merchant Griffin Greene continued to be associated with Providence in­ terests, as during the Revolution. While Newport was left in a sorry state, Providence had so developed that her coasters were three times as many in 1786 as in 1764. Her leading merchant, John Brown, was able to set up in trade by himself in 1782 and to begin the development of a new wharf district; in 1783 his brother Moses promoted important new road construction.81 In Connecticut, Norwich prospered in many ways after 1780.81 Hartford was the outstanding place, how­ ever, since New Haven had lost ground through activities of British cruisers. Prodigious war-time' activities attracted to Hartford such merchants as John Morgan and Jacob Ogden. In 1784 General LaFayette could sincerely congratulate the " rising city of Hartford", attended by "general blessings and private advantages" which were the "reward of virtuous efforts in the noblest cause." 88 Almost identical circumstances had laid the foundations for the greater business future of Albany. There were many merchant arrivals in Philadelphia during or immediately after the Revolution. Among them were the Frenchmen, Stephen Girard and John Holker; the Irishmen, Hugh Moore, John Barclay, and Alexander Henry; the Scot, James McAlpin. Possibly because of his broadening commis­ sariat experience, young Israel Whelen, son of a Chester County innkeeper, could settle in Philadelphia at the end of the war and secure an extensive shipping business. The flour traders there were joined in 1782 by enterprising Timothy 81 Bates, Rhodl! Islallll, p. 78; W. F. Crawford, in: Rhode Island Hist. Soc. Call., XIV, 107; H. C. Dorr, in Rhode Island Hist. Tracts, no. IS, P·223· 82 C/. F. M. Caulkins, Norwich (1866), pp. 391, 397, 408. 83 COMeelie'" CouraKl, Ocl 26, 1784. 234 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Paxson. Louis Crousillat, a Frenchman who came to. Amer­ ica during the war and who is said to have made a tidy sum as purchasing agent for Rochambeau's troops, settled in Phila­ delphia as a successful dealer in French goods. The Perot brothers from Bermuda set up in business there about 1781 after trading during the earlier war years with Dominica and St. Eustatius.84 It is equally significant that outside capital sought investment opportunities in Philadelphia at the end of the war, as illustrated by the careers of Hugh Shiell from abroad and of Nalbro Frazier from Boston. Frazier's com­ mercial house, newly organized in 1783, represented the union of a recently risen New England family with a member of the old commercial society of Philadelphia. Tench Coxe was the partner of Frazier and put up three-fifths of the £5000 ster­ ling or more of capital, and had, according to his partner, "acquaintances with the trading people both of Town and Country" and" established Connections abroad." 85 The plan of James Wilson in 1783 to bridge the Delaware at Trenton 8e acknowledged Philadelphia's growing business influence, at­ tended by this enlarged commercial population. During the war Baltimore had continued to gain at the ex':' pense of Annapolis, and she, too, had received many new­ comers, some from abroad and some from other parts of Maryland, and they continued to arrive after 1783. General Greene remarked that year, "Baltimore is a most thriving place. Trade flourishes and the spirit of building exceeds belief. Not less than 300 houses are put up in a year ..Ground rents are little short of what they are in London. The inhabitants 84 J. H. Campbetl, Friendly Sons of St. Patrick, passim; F. W. Leach, II Whelen," in .. Old Phila. Families"; Scharf and Westcott, Phila., III, 2212,2213,2223; Winslow, Phila. Merchants, p. 230; Jackson, Market Street, p. 128. 85 Frazier to Thomas Dickason, Jr., Nov. IS, 17'83, Frazier Letter Book. In Sept., 1784, merchant Christian Febiger wrote that Philadelphia" in fact governs the whole Markets of this Extensive Continent": Mag. Amer. Hist., VIII, 352. 86 Notice reprinted in Salem Gasette, Nov. 27, 1783. SOME ECONOMIC CONSEQUENCES OF THE WAR 235 are men of business." About 1783 Robert Morris set up a business partner, Tench Tilghman, in Baltimore, just as he then became involved with other merchants in other promising business centers. H Alexandria, Virginia, also received new merchants soon after the war, such as the Englishman William Hodgson, and the Americans Philip Marsteller of Pennsyl­ vania, John Craik, Jr., partner of Andrew Craigie, and Thomas Porter, friend of Craigie and war-time agent of Daniel Parker. Having triumphed over her rivals in northern Virginia, Alex­ andria now stood prepared to prosper by the growing trade of the Potomac Valley, from which both Jefferson and Wash­ ington expected great things at this time. Since the Virginia Port bill of 1784 made Alexandria the sole port of official entry for foreign ships on the Potomac, a concentration of trade and capital developed there as never before. Jefferson encouraged Alexandria because it was .. a rival in the very bosom of Baltimore." 88 New York City was crowded in the spring of 1783 with speculators of every kind, as Charles Biddle found when he went there to charter English ships for the West India trade.sa The natural advantages of the city and the prospect of the withdrawal of many loyalists suggested unlimited opportunities which newcomers, especially from New England, were eager to seize"o Two former clerks of Clark and Nightingale of Providence,organized in 1784 the house of Murray, Mumford and Bowen, together with an associate who had been four years in New York.11 Andrew Craigie set up his drug house there 87 C. Hall, Ballifflorr, I, iZ, 506, so;; Scharf, Ch,.tmklrs of BallifflOf'r, pp. zog, zJ6; O. Tilghman, TntCh TilghffI/JfI, pp. SO-52; Griffith, A,.fIDl.r of Balli_" lIP. 102-104; Clarles C. White to David Dagget, Oct. 13, 1;86, in Amer. Antiq. Soc. P,.Ot., n. s., IV, 3(q. 88 Harrisoo, Old Pritte, Willia .... II, 4OB. 410; G. T. Starnes, Sisly Yea,.s of Bmtki,.g i,. V .., pp. 14. IS; Jefferson, Writings, Ford, eeL, IV, 19, VIII, 361; Brissot de Warville, Nrw TrawLs (1794), II, J68. 89 Biddle, Autobiography, p. 18S. 9OJoim F. Stewns, p,.o!l'tSS of New York, p. Ji. 91 Scoville, Old MercNmls, V, 190- 236 BUSINESS ENTERPRISE: REVOLUTIONARY ERA in the summer of the same year: "I am told you make a great show," a friend wrote him.92 The former Providence mer­ chant Ebenezer Stevens, who had fought during the war under Philip Schuyler, now established a lumber commission business in New York an~ was employed by Schuyler and others.93 Thomas Mumford of Groton backed two young relatives in business in New York in 1783.94 From the army came such of­ ficers as Benjamin Walker and Samuel B. Webb, also James Watson, fresh from his contracting work under Wadsworth. Both Walker and Watson engaged in brokerage activities and were immediately taken into the Chamber of Commerce, as was also Melancton Smith" another war-trader. A notable lawyer from New England was Rufus King who in 1786 mar­ ried the beautiful heiress daughter of merchant John Alsop. New York also received many newcomers from Europe at this time. The Scot Archibald Gracie, who saw the opportuni­ ties in America while engaged in Liverpool during the war, emigrated to New York in 1784; his marriage soon after to the sister of Moses Rogers helped to get him nicely estab­ lished.os John Delafield, an Englishman with property of his own, arrived in New York in 1783, married an heiress of the merchant Joseph Hallett, and became known as a broker . in securities.96 Other Englishmen-Dominick Lynch, John Stough­ ton, and the Wilkes brothers, the latter proteges of William Seton-settled in New York in 1784 and 1785. George S~riba was a German arrival whose career was developed by war opportunities. He was trained in the Dutch house of Willink, and then employed by Potthoff of Amsterdam until 1780 when he left for Philadelphia where he became a business partner

92 New York Gazeteer, Dec. 17, 1784. carries their advertisement; David Jackson to Craigie, Oct. 2, 1784. Craigie Papers. 93 J. A. Stevens, .. Ebenezer Stevens," in Mag. Amer. Hist., I, 588-610. 94 Deane Papers (Conn. Hist. Soc. Call.), p. 189- 95 G. A. Morrison, Hist. St. Andre'U's Soc., p.91. 96William Hall, .. Johll! Delafield, the Englishman," in New York Genealog. Biog. Soc. Bul., XVII, 245 if. SOME ECONOMIC CONSEQUENCES OF THE WAR 237 of George Schroeppel. Making a short 1rip to Holland at the end of the war he returned to New York to enter upon a career of commercial activity and land speculation with far­ reaching consequences. Dr Another new firm was that of Con­ stable, Rucker and Company, organized in 1784. Constable's war career has already been mentioned; Rucker was a German with English commercial experience and with credit backing by Le Conteulx of Paris. Robert Morris became a partner in this house in the spring of 1784: " ... it is the last that I shall be connected with having now completed the plan which I had long had in Contemplation," he wrote.B8 Practically all these newcomers, native and foreign born, were speedily taken into the reorganized Chamber of Com­ merce, thus securing for themselves a voice in the direction of the city's trade. Another newcomer, voted into the Cham­ ber on March I, 1785, was the army contractor William Duer. His entrance was an unfortunate sign that the immediate busi­ ness of many N ew York merchants was not to be confined to needful constructive post-war policies, but that excessive specu­ lation, which he personified, was to influence them from the first years of peace. To sum up the economic consequences of the Revolution, it may at least be called questionable to what extent the war had injured the old colonial moneyed class; certainly it was far from being destroyed. And offsetting this was the transfer of some wealth into the hands of a small but vigorous set of newcomers, invariably young in years but national in view­ point, who were prepared to take the business bit in their teeth and set a faster pace for the future. Their efforts were to be expedited not only by the group discipline they had experienced

ff1 Infonnation kindly supplied by Mr. Otto Salzmann; until 1786, Scriba was a partner of one Starman. 98 To Tilghman, June 22, 1;>84, Morris Papers in' New York Public Library; its primary interest was in tobacco. Rucker was to go to Europe immediately. 238 BUSINESS ENTERPRISE: REVOLUTIONARY ERA during the war but also by the steady concentration of business power in the greater commercial centers. It cannot be too strongly emphasized, in conclusion, that the country was not left in the deplorable economic state frequently attributed to iL" Even the plethora of paper money had had its constructive side in loosening the economic structure of colonial society. The growth of manufactures, while not strik­ ing (for men of wealth had not greatly enlarged their invest­ ments in the industrial field, there being too much opportunity in commerce), was at least noticeable. In the long run industry also gained slightly from prisoners and deserters from the 1 British army who had known manufacturing at home. °O In many lines, but in commerce especially, many Americans had indeed been given the opportunity to expand their economic life and to acquire new wealth.101

99 C/. the affirmation of this point in Sumner, FiJlQ1lC;er, II, Chap. XXIV. 100 C/. C. F. Wan; Early NeuJ England Cottcm },fanufacture, p. 9; Cole, Hamilt01l's Corresp., pp. 8, 31; Adams, Familiar utters, p. 313, for stimulus to Mass. industries, and Caulkins. N orwicll, pp. 606-610, for stimulus to Conn.; also PNlrta. Mag. HUt. Biog., XXXVI, 82, and Griffith, Annals of Baltimore, p. So. J. T. Adams, NeuJ England in the Republic,p. 51, over­ does it, however: .. In many lIrays the war in1mediate1y stimulated manu­ facturing, the capital coming from the mercantile class." No reference given. If it is based on the idea that commerce aHorded little opportunity for the investment of capital during the war, it is of course misleading. 101 C/. remarks by Channing, in Mass. Hist. Soc. Proc., XLIV, p. J68; also MacPherson, Armals of Commerce, III, 719- CHAPTER XI ECONOlIIC DEVELOPlIENTS IN THE 1780's

BEFORE concluding this study with an analysis of big busi­ ness enterprises undertaken between 1781 and 1792, in the light of the circumstances and personalities considered in the preceding chapters, it is desirable to consider certain general economic developments after the war which prepared the way for the Hamiltonian era. Some of the constructive war-time changes were advanced by the conditions of peace. This is not to deny that there was a nation-wide commercial depression after the peace settlement. It is to deny, however, that all economic life was at a standstill; that depression worked disaster for all merchants alike. The very fact that it was nation-wide possibly shows how the country had become eco­ nomically unified, and, consequently, how readily the situation would lend itself to re-adjustment. Above all, a minority of business men could then, as now, gain at the expense of the majority at a time of economic consolidation. \Vith the approach of peace the thoughts of many persons, especially those who had given of their time for military serv­ ice, were turned in an intensive way to the pursuit of private profit. II Get as large a fortune as you can," General Nathanael Greene advised a friend. ". . . it is high time for you and I to set about in good earnest, doing something for ourselves," James McHenry told his former fellow officer, Alexander

Hamilton. The astute Jefferson noted that II all the world is becoming commercial," 1 for merchants were grasping new opportunities to sell, importing great quantities of goods from England, especially in 1783 and 1784.1 Nor were the people so impoverished that they could not purchase these. Samuel

1 W. B. Reed, lo",p" Rud, II, 474; Steiner, McHenry, p. 44; Jefferson, Writings, Ford, eeL, III, 422- 2 Ct. MacPherson, A_Is 0/ Commerce, IV, 40, 68. 239 240 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Adams wrote from Massachusetts in 1785, "You would be surprized to see the Equipage, the Furniture & Luxurious Liv­ ing of too many, the Pride and Vanity so deep which pervades thro every Class.... " Similar conditions were observed there a year later, when"the commercial depression was at its height. 8 Luxurious and dissipated living were observed even in troubled South Carolina in 1786.. A vigorous spirit of business enterprise was at least hope­ fully expressed in a variety of ways during the "Critical Period." South Carolina planters sought capital after 1784 to finance new methods of irrigating rice fields. 5 In Virginia, Norfolk was being rebuilt, Alexandria was adding to her places of business, and trade sites were in great deI?and in 1785. Virginia and Maryland appropriated money that year to im­ prove a road west of the Potomac navigation. In these two states a group of towns subscribed to a total of £40,300 sterling to a Potomac navigation improvement company, and Virginia passed an act to layout a turnpike from Alexandria to the lower Shenandoah Valley.' Many there were dreaming of canals to the West; Washington discussed such a project with Elkanah Watson in 1785.' Pennsylvania also sought to improve her roads and by 1787 the commercial influence of both Philadelphia and Baltimore was considerably extended both south and west.8 More than

3 To John Adams, July, 1785, in Samuel Adams Papers; Stephen Higgin­ son, quoted in Higginson, Higginson, p. 14; Minot, Insurrection in Mass .• p. 12. 4 Cf. Diary of Timothy Ford, in South Carolina Hist. Genealog. Mag .• XIII,204· 5 Cf. Mrs. St. J. Ravenel, William Lo'wndes, pp. 22, 23. 6 C. Bacon-Foster, Potowmack Company, pp. 57, 62; Mary Powell, Old Alexandria, p. 224; Harrison, Old Prince William, II, 542; a contemporary quoted in Va. Mag. Hist. Biog., XXIII, 407, 408, 413. 7 Elkanah Watson, Hist. of the Western Canals, p. 8. 8 Cf. Penna. Mag. Hist. Biog., XLVIII, 69; Penna. Archives, X, 128-130; Scharf and Westcott, Phila., I, 431; Gray, Agriculture in Southern U. S .• II, 613. ECONOMIC DEVELOPMENTS IN THE 1780's 241 650 houses were constructed in Philadelphia between 1783 and 1790, and a company of prominent citizens was formed to consider bridging the Schuylkill River in 1786.8 In New York City a new public market was erected in 1786 and still another two years Iater,lO war-time fires having made neces­ sary much building construction. The considerable demand for window glass that year is especially significant; on September 5, Stewart and Jones of New York doubled their English order for that commodity: In these "critical" years the city of Troy was born of westward migration, part of which stopped at the Hudson River, and the war growth of Albany was soon resumed.ll In New England flat-boat navigation of the upper Con­ necticut began about 1785 and grew rapidly, to the special benefit or'Hartford. Taverns went up in Litchfield, Connecticut, in 1782 and 1787.1J In Massachusetts the important Essex bridge plan, to connect Salem and Beverly, was promoted in 1787. It offered a better route to Boston from the north, though at the expense of local interests in several northern towns. Possibly because the Cabot-Lee interests were now strong in Boston did they and their relatives in the North Shore towns fight vigorously for the plan!· With the contempor­ aneous construction of the Charles River bridge, connecting Boston with Charlestown and Cambridge (pushed by Thomas Russell, a Cambridge merchant who had developed into an

9Watson, AnHtJls of Phi/a., III, 238; Scharf and Westcott, Phi/a., III, 2141. Between 1785 and 1791, seven buildings were erected on one side of one block on Market St. Jackson, Market St., p. 136. 10 T. F. Devoe, The Market Book, pp. 341, 370. 11 Cf. statement by a contemporary, in Howell and Tenney, County of Albany, p. 609; cf. AnHtJls of Albany, X, 200, on the Yankee group led there by Elkanah Watson. 12 W. D. Love, "Navigation of the Conn. River," in Amer. Antiq. Soc. Proc. (1902-3), p. 402: idem, Colonial Hartford, pp., 177, 356; White, Litchfield, pp. 96, 102.

13 Robert Rantoul, U The Building of Essex Bridge," in Essex Instil. CDII .. XXX, 68-76. , 242 BUSINESS ENTERPRISE: REVOLUTIONARY ERA important Boston business man), and of the Malden bridge over the Mystick, Boston's regional economy was soon to be enlarged. High rentals, building activity, and luxurious living actually impressed Franklin on his return to America in 178S.u Stage coach routes and facilities were steadily being increased in various regions. The paper industry continued to grow/5 and. important companies were organized· for iron and woolen manufactures in 1786 and 1788. Above all, it is significant that capital was much sought after everywhere during the "critical" years. Interest rates were high in 1784.18 New York merchant-capitalists were even invited to New Jersey and Con­ necticut, being promised liberal treatment. Broome and Platt of New York did remove to Hartford in 1784, availing them­ selves of "the generous laws and invitation of the legislature

of this state." 17 And if it be argued that all this merely empha­ sized a great lack of capital, rather than a general demand for it, it can be pointed out in reply that there was no difficulty in securing subscriptions of specie value for large amounts of bank stock in 1784 in Philadelphia, Boston, and N ew York. If economic conditions, however, are to be interpreted through the eyes of the merchant-the business man-it is quite true that he was complaining bitterly until 1787 or 1788. Yet the very conditions he bemoaned aided in the establish­ ment of better financial instruments for his use, and prorpoted his commercial independence. The enormous premium on English bills of exchange in 178S made invaluable the dis­ counting service of the newly established' banks of North America, N ew York, and Massachusetts, and doubtless ex-

14 Works, Sparks, ed., II, 462. 15 Cf. Penna. Mag. Hist. Biog., L,20. 16 Cf. J. D. Schopf, Travels in the Confederation, I, II8; also advertise­ ment in M wyland loumal, Dec. 20, 1785, requesting a loan at 10% on good security. 17 Cf. letter of John Rutherford, May, J783, in New Jersey Hist. Soc. Proc., 2nd ser., I, J80, J8J; Connecticut Courant, Aug. 3J, J784. ECONOMIC DEVELOPMENTS IN THE 1780'S 243 plains their extraordinary success in these years (except for the Massachusetts Bank in 1785), when they became firmly established. The bankruptcies of small American merchants in 1784 and 1785 must have checked the too liberal credit policy of British houses and promoted a diversified American com­ merce.l8 The latter condition was also encouraged by the fact that at least some of the American war trade with France now continued, giving America a heavy favorable trade balance in the 'eighties.'e The eagerness of the Dutch to extend com­ mercial credit to support their trade with America-which grew rapidly, especially after 17862°-also promoted freedom from British commercial domination. However, in the Vir­ ginia tobacco trade, pre-war British supremacy tended to be renewed, though Madison's complaints to that effect in 178521 did not take into account the extensive work which Robert Morris carried on there for several years on behalf of the French Farmers General. The commercial conditions of which the merchants rightly complained--possibly worse at first in New England than elsewhere 22--<>riginally centered around the import and not the export business. Though American exports to England were below the average of the immediate pre-war years, they in-

18 Lord John Sheffield, Observatiom on Commerce of U. S., passim, had pointed to and argued for less liberal credit methods in 1783. Caleb Davis of Boston had to write to John Johnson and Co. of London, Jan. 2, 1786. reminding them of the 12 months credit they had agreed to: Davis Papers, 21. 19 Cf. statistics quoted by E. Buron, in I. of Bean. Bus. Hist., IV, 571- sSe; also figures in Pitkin, Statistical Review (1835), p. 213; M. de Calonne to LaFayette, Jan. 9, 1784. in Sparks, Diplomatic Co"esp., XI, 177. There can be no doubt, however, that this declined greatly, relative to war years. 2OA. L. Kohlmeier, "Commerce Between U. S. and Netherlands, 1783- 1789." lac. cit., esp. pp. II, 47. 21 Cf. Guy S. Callender, .. Early Transportation and Banking Enterprises of the States," in Qua,.t. /. of Beam., XVII, 137, 138. 22 June IS, 1785, Christian Febiger wrote that New England ports had a greater superfluity of goods than did Philadelphia or New York, because they 1ackecI a back country to sell to. Mag. Amer. Hist., VIII, 352. 244 BUSINESS ENTERPRISE: REVOLUTIONARY ERA creased steadily from 1784 to 1788, with a small letdown in 1786.28 Considering the new French and Dutch trade, the difference in pre- and post-war export totals could not have been great. By 1787-89 the Dutch trade had become more than fifty per cent as important as that of America with England, and its "balance" was probably in favor of the Americans.24 Prices of American produce for foreign shipment, m,oreover, remained high at home until late 1784 or early 1785/5 and, therefore, presumably in the foreign market" indicating that they were not the prime factors in causing the depression. Wheat brought a high price in Philadelphia in July, 1783.2~ Robert Morris complained of its high price in 1784 and of that of tobacco early in 1785. American produce used in the English trade remained high in July, 1784.21 Wheat was scarce and high in New York in May, 1785, and lumber sold there in July, 1785, for about the pre-war price, both lumber and corn then being used in trade with the Madeira Islands.ls However, by June of that year most American produce was selling at a low level in London, and many staples had fallen heavily at home by 1786, including lumber, flour, and to-

23 MacPherson, Annals of Commerce, IV, 68, 99, J20, J37, 182. Henry B. Dawson figured that in 1784-1788 the exports to England and Scotland aver­ aged nearly two-thirds of the 1770-1775 average. Hist. Mag., 2nd ser., IX, 163. 24 Kohlmeier, op. cit., esp. pp. 25, 26, 46. Trade with Spain 'also continued: John Codman of Boston wrote Thomas FitzSimons, June 7, J784, to load a ship with flour for Cadiz, since .. both Spain & Portugal are apprehensive of a great want of Wheat, Corn & Flour even for thems'elves & the Spanish West Indies receiving their supply thro that Channel will increase it. • . ." Cadman Letter Book. 25 Benjamin Fuller wrote from Philadelphia, July 17, 1784, .. iIli short every Article of Commerce [i.e., native produce] is so high at this Markett, that there is little or no prospect to any Port." Futler Letter Book. 26 To Wiltiam Price and Co., London, July 10, 1783, Frazier Letter Bacik. Z7 Joy and Hopkins of London wrote Wadsworth, July 21, 1784. that" the produce of America [is] extravagently high." Wadsworth Corresp. 28 Stewart and Jones Letter Book, under Feb. 12, May 19, July 19, 1785. ECONOMIC DEVELOPMENTS IN THE 1780's 245

2 bacco. ' This was of course particularly unfortunate for the American farmer whose previous condition had not been serious, but who now had reason to join in the chorus of complaint. The merchant had suffered even earlier from the condition of the import business. Though' a letdown in importations of English goods did not seriously begin until the end of 1784- in August five large London houses in the American trade had to close their doors and by November the stoppage of good remittances from America began to check exports 80_ this does not mean that American importers were making money until that date. On the contrary, Robert Morris spoke of the hard times as beginning in 1781, attributing them to excessive imports and an unfavorable trade balance.81 Dutch goods sold pOorly in Boston in October, 1782.82 Many mer­ chants had keenly watched the approach of peace, anticipating a difficult aftermath. Some, like William Cheever, had unsuc­ cessfully tried to dispose of goods on hand in order to secure bills on Europe to clean up debts. 88 Import prices really began to fall seriously in the spring of 1783, for both West India and European goods.s• In July

29 Phyn and Ellice to Edgar, June IS, 1785, Edgar Papers; Spaulding, New Yo,.k ill Critical Period, pp. 18, 19. Anne Bezanson, Wholesale Prices ill P hila., 1784-1861 (Phila., 1926), pp. 96, 97, Qnd chart on po 98, shows that farm crops made price comebacks in late 1785, declined again, recovered again in late 1786, and then went into serious decline in 1787. This was not true for lumber products, etc., which failed to come back to such an extent. This work, unfortunately for our purposes, gives no information on 1783 prices. 3OH. A. Hill. in Hist. Suffolk County. II, 75; John Rogers. Jr. to John Rogers. from London, Nov. 28. 1784, Hudson-Rogers Papers, Box III. 31 Carey. ed .• Debates in Penna. Assembly. p. 82; ct. also Weeden, Ea,.ly Rhode Island, p. 351, on difficulties of the Browns with goods after 1781. 32 Davis Papers, 23. Ol;t. 29. 1782. This may have been seasonable. 33 Will to W. D. Cheever, from Virginia. March 17, i783, ibid .• 10. 34 W. D. to W. Cheever, Feb. 8, 1783, ibid•• 26: sugar and coffee are falling, and" more money will be lost than has been gained since the War"; W. D. Cheever to John Van der Funk. May 3. 1783, ibid., 23: goods will 246 BUSINESS ENTERPRISE: REVOLUTIONARY ERA I of that year, W. D. Cheever of Boston was reminded of the South Sea Bubble. He found everyone eager to trade; enough goods had been secured to last seven years and there was no adequate means of remittance. Articles were soon being sac­ rificed at half the war cost, the best European goods going at vendue. 31i In Philadelphia in November, 1783, Nalbro Frazier actually sold English goods at less than cost; and few brought cash, being disposed of by a new credit custom estab­ lished during the war.a8 In short, the merchants were in diffi­ culty from 1782 on, not because the country was economically prostrate or unproductive or even without foreign markets, but simply because they over-reached themselves in the way of importations. The same thing had occurred over and over again in colonial times as the trade figures show. A factor modifying the severity of the depression was the American trade with the West Indies, which was not as hard hit as was once thought. The British navigation act of 1783 is usually held to have greatly reduced exports to those islands, but half of the shipments to the West Indies from the United States in 1784 went to British Jamaica alone. aT British gov­ ernors frequently threw open their island ports to American shipping to avoid starvation,as and Americans constantly got around the laws. For example, Stewart and Jones of New York chartered a ship and captain in 1785 " fot; St. Kitts and St. Eustatia. In this Rout we hope he will be able to get a not bring more than sterling cost plus freight; in DealDl! Papers (Conn. Hist. Soc. Coli.), p. lBo, .. European goods are falling Every Day here." 35 Cheever to John Hodshon, July 4, 1783, Davis Papers, 26. 36 To F. W. Geyer, Sept. 25, 1783, Frazier Letter Book. 37 Cf. Tench Coxe, Brief Examination of Lord Sheffield's Observations, p. 16; but Wadsworth received a letter from St. Kitts, Feb. 5, 1785, saying that British warships kept Americans from ports .. throughout the West Indies," though all were confused as to the permanency of this situation: Wadsworth Corresp. 38 Bezanson, Phila. Prices, .p. 95; Henry Adams, Hist. of U. S., II, 320, J'2'1. ECONOMIC DEVELOPMENTS IN THE 1780'S 247

British Register-when we expect he will make something." 88 LeRoy and Bayard of New York invested through English relatives in similar ventures in 1787. It would be difficult to over-estimate the importance of such clandestine trade.40 It is a mistake, moreover, to emphasize American commerce with the British islands to the exclusion of that with the French, Spanish, Swedish, and Dutch colonies. French gov­ ernors also frequently opened their ports in spite of royal re­ strictions, and by 1785 the colonial laws of all these nations were sufficiently liberalized to admit some legal trade with

Americans. U The market at Martinique particularly appealed to Yankees in the fish trade, as to Lee and Cabot of Beverly who completed four voyages between July, 1783 and February, 1786. The Havana trade was re-opened to Americans in 1785, and at this same time one American secured contracts for supplying Spanish army rations at St. Augustine, while another made considerable profits contracting with planters in Trini­ dad.u There, too, laws were constimtly violated, as Van Berckel wrote concerning the Dutch islands in 1784, and as one infers from the smuggling activities of a Newport mer­ chant with French Hispaniola in 1786. In the latter year a Connecticut captain took out Danish citizenship to secure trade with St. Thomas. fa The result was that America secured con-

39 To William Stewart, April 15, 1785, Stewart and Jones Letter Book. 40 To Col. William Bayard, May 3, 1787, Bayard Corresp.; cf. also ade­ quate treatment of this point in Channing, Hist. of U. S~ 111,417-422; also Porter, JacksOflS and Lres, I, 421, 429. 41 C/. testimony of George Cabot, quoted in Lodge, Cabot, PP.49, 50; c/. also Henry See's comments, in Amer. Hid. Rev;., XXXI, 736; also Chan­ ning, op. cit., III, 412. 42 Porter, op. cit., pp. 419, 420: Claude Guillard to Wadsworth, March 20, 1785, Wadsworth Corresp.: from William Stewart, April 6, 1785, Stewart and Jones Letter Book.

43 C/. letter of April 6, 178", in Bancroft, Hist. of Constitution, I, 352 : also Edler, .. Dutch RepUblic and Amer. Rev.," p. 232 n; Mason, Newport, p. 225: Howard, Seth Harding, p. 173 ff. 248 BUSINESS ENTERPRISE: REVOLUTIONARY ERA siderable quantities of specie in 1786 and 1787." All-in-all, in the two especially bad years of 1785 and 1786, such trade was probably the salvation of many Americans. This was natural, if, as Robert Morris had asserted, the West Indies could be supplied twenty per cent cheaper in American ships than in those of France or Great Britain.46 Ignoring for the moment the, effects of the depression on individuals, let us consider when trade began to revive and what new commercial routes were opened. By July, 1786, William D. Cheever could see a new spirit of economy and industry overtaking the people and giving impetus to com­ merce, which had been previously filled with "new Faces" and extravagant ideas.48 In the preceding November, Stewart and Jones of New York had sent an order for English goods, their first since the peace,47 apparently because the quantities of goods left in the city in 1783 had been depleted. A New York merchant's venture to Dublin, with timbers and barrel staves, turned out very well in February, 1786. That same month Stewart and Jones sent a second order for English goods, "to keep our assortment in store compleat." 48 By May, 1787, LeRoy and Bayard of New York could write, "As to dry goods their demand is very great and advantageous to the present importers, as all Credits in Europe seem to be at a Stake.... " 48 For Boston a local historian places the im­ provement in commerce in the spring of 1788, though two years before a contemporary had recognized at least the trend

44 Phineas Bond to Lord Carmenthen, July 2, 1787, in J. F. Jameson, ed., .. Letters of Phineas Bond," in Amer. Hist. Assoc. Rep., I, pp. 541, 542; Porter, op. cit., pp. 420,427. 45 Morris to Franklin, Sept. 30, 1783, in Sparks, Diplomatic Co,.,.esp., XI. 46 Davis Papers, 26. He attributed much of this to changes in the political situation in Ma5'Sachusetts, Bowdoin replacing" his Weakness." 47 To Thomas Powell, Letter Book. 48 Ibid., letters of Sept. 3, 1785, Feb. 2, 13, Aug. 20, 1786. 49 To William Bayard, May 3, 1787, Bayard Corresp. ECONOMIC DEVELOPMENTS IN THE 1780's 249 toward a wider commerce. 50 Philadelphia probably received more ships in 1788 than in 1785, an indication of partial com­ mercial revival supported by some contemporary testimony.51 American trade with England and Scotland, both imports to and exports from, increased in 1787 over the preceding year, the former falling off slightly in 1788, the latter increasing fourteen per cent. In short, commercial recovery was under way in both 1787 and 1788 but was not consummated until 17B9·&a Nor was the process greatly retarded by inter-state jealousy and cut-throat commercial laws. It has been recently pointed out that such discriminating duties were " really" exceptional after 1783, since it was then usual to exempt produce of the growth of the United States from state import duties, and since American-owned vessels of sister states were frequently given preferential tonnage rates over foreign ships.·8 In such cases as Connecticut's 'commercial legislation of 1784, mer­ chants could also connive at fine distinctions to defeat enforce­ ment. Peter Colt pointed out to Jeremiah Wadsworth that foreign goods could come in free by way of other states, .. where it appears the goods are the property of persons 50 H. A. Hill, in Hist. Suffolk Counly, II, 84. The Boslon Gazelle, June 26, 1786 (quoted in R. V. Harlow, SamMet Adams, p. 307), said, .. Trade has in a degree shifted its channel by finding a passage up the Baltic and around the Cape of Good Hope"; it would soon acquire regularity. 61 Channing, op. cil., III, 414 n. However, Mease, PicllU'lI of Phila .. p. 52, gives number of vessels entering Phila. in 1771 as 752; in 1786 as 910; in 1787 as 870; in 1788 as 854; in 1789 as 1261. On April 21, 1788, Levi Hol­ lingsworth wrote, .. The Commerce of this City seems to revive a little this Spring. great Quantities of Wheat are shipping off for Portugal & flour for Spain, •. :' Letter Book. William Bell wrote from Baltimore, Dec. II, 1788, that the dry goods business was very good, that woolens were scarce. Society Coli. in Hist. Soc. Penna. 62 Henry B. Dawson, in Hist. Mag., 2nd ser., IX, 168, 16gn. MacPherson, AIINGh of Commn'clI, IV, 120, 137, 182. Bezanson, Phila. Prices, pp. 103, 104. shows that general price recovery was delayed until 1789. 63 Giesecke, AmericlJll Commercial Legislation, pp. 134, 139- It was the unusual side of state tariffs which was emphasized by some persons, as by Tench Coxe at the Annapolis Convention. 250 BUSINESS ENTERPRISE: REVOLUTIONARY ERA belonging to this State & that they were originally intended for this State." 54 Nathaniel Shaler of New York proposed evading the Connecticut law by false entry certificates, not that he approved of wrong-doing but because the law was obviously unjust! He sent goods to John Caldwell of Hartford and to Colt in some such fashion. At the same time he was petition­ ing the New York Assembly for relief, "and Col. Hamilton is using his influence in its support." 55 The depression compelled merchants either to develop old trading routes or to blaze new 'ones, the former method ap­ pealing to the conservative element which was especially strong in Boston. Massachusetts ships returned to triangular trade and coastal peddling methods; it was said in 1785 that on the Carolina coast, "where formerly One American Vessell fre­ quented that or any of the American Ports, there is now Ten." 58 A less praiseworthy renewal was the Guinea, or slave, trade. Between 1783 and 1785, 7000 negroes are said to have been imported into South Carolina, and this was not due to British traders alone. In June, 1785, the Maryland Journal carried a news item from Africa that American vessels, "mostly from Boston," abounded on its coast, carrying New England rum to be exchanged for slave cargoes. In the fall of 1783 the Boston firm of John Codman, Jr. sold its fast ship Commerce to Winthrop, Todd and Winthrop who in­ tended to settle in Charleston to engage in the Guinea trade. Insurance was secured in Boston, from Charleston to the Guinea coast and back, for seven per cent. The affair was to be paid for, apparently, from proceeds of the first voyage.Sf 54July 14, 17B4. Wadsworth Corresp. This is a long letter on business conditions generally. New Haven and New London, moreover•. were de­ clared free ports, to encourage propertied persons to settle. 55 To Wadsworth, Oct. 12. 21. 29. Nov. 18, 17B4. ibid. .. I say Dam all Laws that reduce a man of Integrity to Ambiguity and evasion." 56 Morison, Maritime Hist. Mass .• pp. 32-34; to William Stewart, April IS. 178S, Stewart and Jones Letter Book. The Codman Letter Book men­ tions ships bought for the coastal trade in 1783 and 17B4. 57 Codman Letter Book, Aug. 2. Nov. 12. Dec. 9. 1783. Morison. op. cit., ECONOMIC DEVELOPMENTS IN THE 1780's 251 A commercial outlet enlarged for American merchants by the war and sought after by them during the depression was the tobacco trade, its importance being due in part to the high price the staple commanded for several years after the war. This fact also attracted numerous European traders in 1784. The weed even became in that year" an Article of considerable Consequence" in the trade of Charleston.58 Though its price was falling in England as early as September, 1784, Robert Morris still had to fight to lower the domestic price in 1785.59 Two years later Philadelphia enjoyed a considerable illicit to­ bacco trade with the British, all of which in tum contributed to the remarkable surplus revenues which Virginia enjoyed in these "critical" years.80 This activity of Morris deserves emphasis. He secured monopoly contracts from the French Farmers in 1785, 1786, and 1787, to supply 20,000 hogsheads of tobacco a year. Im­ portant political consequences were the anti-monopoly cham­ pioning of the small tobacco merchants by Jefferson in France, and the continued southern animosity toward Morris, as in the years when Financier.81 The latter was natural, for Morris' policy was, as he advised Tench Tilghman in 1784, "to keep the price of the Produce of this Country at a moderate Stand­ ard, it is the duty of every Merchant to aim at that point because it is the interest of Commerce & the interest of the pp. 32-34 possibly minimizes the extent to which Boston merchants returned to this practice. On its general revival after the Revolution, cf. Elizabeth Donnan, ed~ Doc_mt, Illustrative of Hist. of Slave Trade to America (Washington, 1930-35), II, SS7IL 68 Advertisement of a Charleston firm, under April IS, 1784. Davis Papers, 10. li9 To Tench Tilghman and Co., March 16, 1785, Morris Papers in· New York Public Library. 60 Cf. W. F. Dodd, .. Virginia Finances," in V Go Mag. Hist. Biog~ X, 366 If. 61 F. L. Nussbaum, .. American Tobacco and French Politics," in Pol. Sci. O-t., XL, 497-516. Jefferson, Writings, Ford, ed., IV, :20; Benjamin Harrison to Nathanael Greene, Aug. 30, 1782, in Tyler'IQuart. Mag., IV, 424; Sumner, FintJllcier, II, Chap. XXI. 252 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Country that it should be so." To achieve this in Virginia in 1785 ·and 1786 he developed an elaborate scheme to reduce prices by controlling foreign exchange through the issue of large quantities of his personal notes, such ashe had circulated while Financier.sa Though a stop was put to this later by a Virginia law, favoring circumstances (including the stoppage of discount by the Bank of North America, in which Morris was then a heavy stockholder) apparently brought about the desired result. In October, 1787, however, Morris congrat­ ulated a firm on being well out of the" tobacco scrape"; 89 so it is impossible to ascribe success to the work toward the last. It is said, however, that Gouverneur Morris, the associate of Robert, laid the foundations of a fortune by tobacco ship­ ments in 1786 and 1787; 64 and this business probably carried Robert Morris through the worst years of the depression. It certainly strengthened the economic bonds binding his many associates and continued to inspire them with his big busi­ ness attitude. These included Constable, Rucker and Company of New York, his partners; probably William Bingham of Philadelphia; and Tench Tilghman and Robert Gilmor of Baltimore, the first also his partner. In Virginia, Josiah Wat­ son and John Fitzgerald of Alexandria did tobacco purchas­ ing for him: Most important of all, the more enterprising American mer­ chants now won new far-flung markets, a constructive policy encouraged by depression conditions. Such efforts were feasible

62 The details are in a letter to Tilghman, April 19, 1785, and one of Jan. 19, 1786; cl. also Sumner, Financier, II, 159. 631"0 Constable, Rucker and Co., Oct. 31, 1787, in Morris MS, in Library of Congress. Tobacco probably staged price comebacks on several later occa­ sions. 64 Anne Morris, Gouverneur Morris, I, 17. Though Morris survived, John Rucker, on whom he drew bills, went to the wall in April, 1787, when Le Conteulx of Paris, Morris' backers, closed down on him. Rucker died soon after. Le Conteulx to Rucker, Apri123, 1787, in Penna. MS-Add'l Misc., in Hist. Soc. Penna. ECONOMIC DEVELOPMENTS IN THE 1780's 253 with ships of enlarged tonnage built during the war, such as the former privateer Grand Turk of Elias Hasket Derby. They were encouraged by commercial treaties made by 1785 with four European states. The spirit of a new patriotism burned in the letter Joseph Barrell of Boston addressed to Jeremiah Wadsworth in January, 1785, urging formation of a joint­ stock adventure to the " Pacifick Ocean & China," because" tis for Americans to find out new Traits and for such Public Spirited Men as you to engage in them.... " 65 The trade of Caleb Davis of Boston was gradually enlarged from its pre-war West India markets to those of Lisbon, Amsterdam, Nantes, Rotterdam, and St. Petersburg.6t There was con­ temporaneous tapping of the Orient by merchants of many northern American ports, for which dummy sales under British registry were sometimes used ..' The importance of it all was not only in the fortunes occasionally won, but also in the frequent concentration of capital under large group manage­ ment. Moreover, the large profits of the early far eastern trade permitted Americans to finance it without the old re­ liance on foreign credit.66 Many individuals were responsible for this development in overseas trade. The Cabots led the way in 1780 to Goten­ burg, Sweden, to which much tobacco was shipped after the war. A Hamburg merchant informed Americans in 1782 as to trade opportunities at his port. The Cabots and Elias Hasket Derby sent ships directly to Russia as early as 1784, and Thomas Russell of Boston addressed his first cargo there in 1786... In 1785 a group of New York merchants planned a voyage to Russia to secure duck and tallow of £4000 sterling

65]an. 12, 1785, Wadsworth Corresp. 86 CI. Mass. Hist. Soc. Proc., LV, J24, 325. 67 E. g., cl. Commerce 01 Rhode Island, II, 202, 358. 68 According to M. G. Myers, New York Money Market, I, 59. 690. T. Howe, in Col. Soc. Mass. Pub.. XXIV, 377; Ebenezer Thomas, RnrlirtiscntCes, I, 17; Almtm's Rnnembram:er, 1784. Part I, p. ltig; Pea­ body, Merc/um, Vn"urerl, p. 53; Currier, .. Ould Newbury," p. 5S8. 254 BUSINESS ENTERPRISE: REVOLUTIONARY ERA value.70 LeRoy and Bayard of New York wrote in 1787, .. The Russian trade likewise bids very fair, as only such houses who are possessed of sufficiant [capital?] and which are few in numbers, have till thus far carried it on to very great advan­ tage.... " 11 A firm at Petersburg declared a year later that traffic with America increased annually." 7! The far eastern trade was greatly encouraged by the French ruling of 1784 which permitted American ships to use islands in the Indian Ocean as ports of call. Thomas Russell of Boston took advantage of this offer in 1788 (though Boston mer­ chants generally neglected the eastern market until several years later), by which date Americans from other ports already had 3000 tons of shipping engaged in direct trade with Isle de France, where meat, fish, tobacco, and naval stores were disposed of.TI Even more important was the China trade, which had been contemplated by Morris and Duer as early as 1780. Credit for the first voyage there goes to Parker, Duer and Company, that concern of many interests and partners. As early as August, 1783, these men had several such schemes afoot, one of which materialized in the well-known voyage of the Empress of China out of New York early in 1784- Its promoters were a significantly national group formed by war­ time contracting activities: Parker, Duer, Morris, John Holker, the creditors of Parker and Company and possibly other mer­ chants, were all inte~ested. It was a troublesome venture be­ cause of the financial difficulties of Parker and Company, and to relieve the firm John Holker apparently sold the company's shares before the ship returned. ( Some shareholders were frightened and wanted to sell out in January, 1785.) ,4 But

70Jan. 6, 1785, Stewart and Jones Letter Book. '71 To William Bayard, May J, 1787, Bayard Corresp. 72 Bulldy and Co. to W. D. Oteever, Jan. 7, 1788. Davis Papers, 14- 73 Hist. Suffolk Co_ty, II, 85; Weeden. NewE"9lartd, II, 827. 74 FitzSimons to Duer, April 13, 1784. Jan. 25, 1785; Holker to Duer, June 4. 1784. Jan. 22, 1785, Duer Corresp. Holker mentions .. Bancroft" settling affairs of the Empr~ss with I.e Conteu1x in Paris. ECONOMIC DEVELOPMENTS IN THE 1780'S 255 the twenty or twenty-five per cent profit realized was incentive for similar ventures from other ports soon after. Duer also planned to trade directly with India and to that end made an agreement with a Calcutta merchant in January, 1786." Constable wrote Jeremiah \Vadsworth of prospects there in 1788. The Olina trade, however, continued to interest more people. Richard Platt of New York requested credit from Wadsworth in 1785 to finance his one-eighth portion of the Olina voyage of Isaac Sears; ,. and Constable, Rucker and Company fitted out a ship for China that year, costing $100,- 000 in $1000 shares, in which Morris and probably Tench Tilghman were also interested. rr The new capitalist, William Edgar of New York, possibly helped to finance this; some months later he "'"as in the East India trade" in a big way." ftI The second New York venture to China, however, is usually called that of the Hudson River sloop Experiment in 1785, captained by a former privateer master. At least fifteen firms or persons held one or two shares each at £500 a share. Thirty-six per cent annual interest for two years was expected on the investment. Though the voyage failed, with a pay-off of only about forty-five pounds a share in May, 1787, these things should be noted: the number of persons necessarily in­ volved, and the fact that an attempt to finance a second Experi­ ",net voyage in 1787 called for double the capital in the first. ft

75J. Popham of Madras to Duer, Oct. 9, 1787; Peter Leyns of Calcutta to Duer, Nov. 17, 1788. Duer Corresp. The latter gifts information about r.uious American ships in the East. . 76 Platt to Wadsworth. Dec. 7, 178s. Misc. MS .. Platt ", in New York Hist. Soc. 77 Morris to Tilgbmaa. July s. 178s. Morris Papers in New York Public Library. 78 Alaander Hmry to Edgar, loIarch S. 1786, Edgar Papers. Henry had • tc'- for the North1RSt coast, sea otter trade. 79 Strwart and Jones Letter Book, ~ In Misc. YS .. Ships ", .. Ex­ periment -, in New York Hist. Soc., are all the original papers. Spears, Arwr. MrnluMl MIIriw, p. 107. gins a different 1UXIOunt. 256 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Even larger groups and greater sums were frequently required for such work. Morris and associates also sent the Alliance to China in 1787, probably the venture for which Philadelphians subscribed over $100,000 that year. In Baltimore, Richard Tilghman began in 1785 an East India trade which eventually won him a fortune, though John O'Donnell was the first captain to make the trip successfully from that port. Boston is said to have sent out a China-bound sloop as early as 1783, though a similar £300 share joint-stock proposal failed to materialize there two years later.80 To the Revolutionary privateer owner, Elias Hasket Derby of Salem, however, goes credit for financ­ ing, possibly single-handed, the Grand Turk to Canton in 1785; but eV,en he had to invest half his fortune to make possible another venture there in 1790, so great was the initial invest­ ment. B1 Similarly, only wealthy John Brown of Providence, with some help from Welcome Arnold and possibly others, could have raised over $26,000 in 1787 to finance a Chinese voyage which happily had a return cargo worth nearly $100,000.82 Boston was the pioneer American port for the Northwest Coast-China trade. The first venture ,took place in 1787 on a joint-stock plan financed by fourteen shares costing $3500 each. The participants, forming a group with more than local interests, included the Boston merchants Joseph Barrell,. Sam­ uel Brown, and Crowell Hatch; John Derby of Salem, John M. Pintard of New York, and Charles Bulfinch of Boston. The last was not a merchant but, like Pintard,' a young man of inherited wealth and social position.88 The most important result of such new and usually profitable

80 Morison, Maritime Hist. Mass., p. 44; Boston Independent Chronicle, June 23, 1785. 81 Spears, op. cit., p. 109; Morison, op. cit., p. 48. 82 G. S. Kimball, "East India Trade of Providence," Hist. Sem. Brown Univ. Papers, 6, pp. 4-10; Burges, "Memoir of Welcome Arnold." 83 Ellen Bulfinch, Charles Bulfinch, p. 65. . ECONOMIC DEVELOPMENTS IN THE 1780's 257 world-wide commerce was, in the words of a contemporary, "that the means of investment were facilitated so as to se­ cure the future extension of the trade." 806 In doing this, it also laid the basis for the establishment of other business enter­ prises of the era. (Such had been the story of expanding Eng­ lish capitalism for two centuries.) In addition to developing new trade routes the general effect of the commercial depression was to benefit and consolidate the interests of the surviving merchants. Although most mer­ chants suffered at least three years of bad business, some, for­ tunately situated, were directly benefited. They secured " goods below purchase-price" and sold "at a great profit." 85 The larger merchants also gained relatively because bankruptcies were largely confined to their less important associates. In Philadelphia the latter included certain war-time "successful but ignorant adventurers who did not understand com­ merce." •• " Many of our new merchants and shop keepers set up since the war have failed," a New Yorker observed in 1785." Hamilton later wrote of the" number of adventurers without capital, and, in many instances without information, who at that epoch rushed into trade, and were obliged to make any sacrifices to support a transient credit." 88 Such were mar­ ginal merchants and brokers, all little known figures, who were ntined in Philadelphia by June, 1784." Unfortunately, so unimportant were the numerous smaller merchants who failed that their. names have been ignored and the emphasis placed on the really important firms which went wlder. Yet relatively few of the latter can be named for all of the northern American ports. The firm of Jackson and

84 Phineas Bond, .. Letters," loco cit .• p. 540. 85 Schopf. T,.a'Vels. I. 116. 86 According to George Bryan. quoted in Konkle. Bryan, p. 301. 87 Quoted in T. E. V. Smith. New Yo,.k in 1789, p. 5. 88 State Papers, Finance, I, 71. 89 To Thomas Dickason. Jr., June 29. 17B4. Frazier Letter Book. 258 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Higginson of Boston was involved in 1787, but this was largely due to the activities of a rascally agent.IO George Meade of Philadelphia is another example in 1785, but he had been spec­ ulating in land.11 However, the most successful of the war brokers, Haym Salomon, left an involved estate that year after suffering mercantile failures a few weeks before.12 Clement Biddle and Company of Baltimore also failed in March, 1785, and the Purviance brothers of that place became involved some months later, but the latter had become im­ portant largely because of patriotie activity during the war and cannot be caned one of the great houses. The earlier failure of Samuel A. Otis of Boston was not due to commercial conditions alone, but also to the peculiar nature of his war work, which was incompatible with peace-time business. II If still other important merchants, like Robert Morris, M were in difficulty at times, they usually did weather the storm in some fashion. However, an occasional firm, such as that of John Welsh of Boston,la voluntarily concluded its affairs because of discouraging conditions. The greater merchants were fortunate not only in this re­ spect, but they and their lawyer associates now secured even additional property from bankrupts. Stewart and Jones and William Constable were among the executors and apparently the creditors of Salomon'" Part of a .. Mr. Hudson's" estate was purchased in 1785 by a creditor, Robert Morris, who also 90 p,.oc. Mass. Hist. Soc., XLIV, 84; Currier, .. Ould Newb,.,.,," pp. 565-567; Porter, Jacksons and Lees, I, 373. 374- 91 Chaloner to Wadsworth, Dec. 4, 1784. Wadsworth Corresp.; Amer. Cath. Hist. Soc. Res., III, 211, 212. 92 C/. Amer. Jewish Hist. Soc. Pub., II, 14- 93 Morison, Otis, I, 27n. M Undated letters, March or April, 1784, Frazier Letter Book, about his protested bills. Morris wrote in July, 1785, that he had ten times as many lawsuits on hand as in his entire career before the depression. 95 To Abram Eustis, March 17, 1785, Welsh Letter Book. 96 To Joseph Carson, July 20, 1785, and to FitzSimons, June 27. 1785. Stewart and Jones Letter Book. ECONOMIC DEVELOPMENTS IN THE 1780'S 259 bought up part of the Purviances' debt; and since Morris pre­ ferred landed security to personal bonds he could say in No­ vember, 1784, that he had secured some valuable estates'" Jeremiah Wadsworth began to put pressure upon his debtors in July, 1784, also securing a number of lots in Hartford sold him in 1786 by a person in hard financial straits. Barnabas Deane of Hartford threatened to sue his debtors in January, 1784, as did Wadsworth and Carter the next month.. a Mer­ chant William Patterson of Baltimore advertised to the same effect a year later. William Edgar of New York pressed his debtors in 1786. Much of the property of the Newburyport Tracys was secured by Thomas Russell of Boston. DO Comfort Sands of New York exacted due payment of the trader Daniel Carthy of North Carolina in 1787, Carthy complaining that money values had appreCiated since his debt was incurred in 1784; that one of Sands' maxims was, "no poor man can be honest." 100 Another circumstance possibly favoring the greater mer­ chants was the alleged partiality of the first commercial banks, a practice which, if true, had good historical precedent.101 Such partiality was suggested by the charge against the Bank of North America in 1785: that it hurried some traders into bank­ ruptcy while it favored its friends, thus making the mercantile interests .. entirely subservient to the views of the well-born junto." A contemporary said that the bank ruined many en-

97 Morris to Tilghman. April 30. Aug. 31. Nov. 15. 1784. April 12. 1785. Morris Papers in New York Public Library. 98 Colt to Wadsworth, July 14, 1784. Wadsworth Corresp.; Love, Colo­ raial HGrl/o,.d. p. 177; COlIMcticlll CowlJllt. Jan. 13. Feb. 10. 1784- 99 Maryland JolWfl4l, Jan. 14, 1785; Edgar Papers. V. 1087. loSS. 1141; Currier. op. til.• pp. 37. 38. 156. 100 Carthy to Duer. July 2. 1787. Duer Papers. II. This same situatiOlll is seen in James McDonald's laments to William Taylor of Baltimore. July II, 1783. about good but temporarily frozen securities, Taylor Papers. I. in Library of Congress. 101 Ct. Lipson. E(o", His'. England. III. 246. 260 BUSINES~ ENTERPRISE: REVOLUTIONARY ERA dorsers of notes in a new and then little understood fashion. lo2 Similarly, the credit restricting policy of the Bank of New York was criticized as working in the interests of " British" capitalists. loa The consolidating influence of the hard times is further revealed in other ways, as in the public securities situation to be discussed below. A significant bit of such evidence is the changed condition of stockholding in the Bank of New York in 1791, compared with 1784. Whereas at the earlier date 227 subscribers held 536 shares, by 1791 the shareholders had de­ lo creased to 193, holding the increased total of 723 shares. ", The number of stockholders in the Massachusetts Bank was even more drastically reduced because of the commercial and discount crisis in 1785, and possibly also by reason of a dif­ ference of opinion as to what constituted sound banking policy, or as to the domination of a certain clique of investors. The number of shares then fell from 511 to 200 and shareholders from 100 to fifty. This left William Phillips and son with forty-four shares, Thomas Russell with fourteen, and, among others, Jonathan Mason, Francis Cabot, John Langdon, Ezekiel Price, and Thomas Walley with four to six each. The re­ sult was decidedly beneficial for them since the bank now had a prosperous career. In 1790 and 1791 alone, dividends totaling forty per cent were declared.lo5 Indeed. there was clearly a 102 Carey, ed., Debates in Penna. AssenJbly, passim; Centinel Letters, Nov. 13, 1788, in McMaster and Stone, Penna. and Federal Constitution, p. 677: Charles Biddle, Autobiography, p. 190. Gouverneur Morris even ad­ mitted something like this: Sparks, Morris, III, 463. 103 ct. W. T. Hardenbrook, Financial New York, p. 87. N. S. B. Gras, Massachusetts Bank, p. 22, speaks of the partiality for the larger business element shown also in banking policy in Boston. 104 Based on unpublished 1784 stockholders' list, herein published as Ap­ pendix A. The 1791 list is in Domett's history of the bank. 105 Figures taken from Mass. Bank Recs., Dividend Book, XIX; ct. also J. S. Davis, Essays on American Corporations, II, 66. Gras, op. cit., pp. 26, 52, 53, ascribes the withdrawal of stock in 1785 to other than depression reasons alone, as to the fact that the eliminated element wished to use the bank too largely for personal loans. ECONOMIC DEVELOPMENTS IN THE 1780's 261 tendency to concentration of ownership in many of the busi­ ness corporations founded in America to the year 1800.108 In somewhat similar fashion the better organization of busi­ ness was encouraged by falling commodity prices, as in the New York lumber trade. Stevens and Hubbell, a prominent commission firm, wrote on October 9, 1786, to Philip Schuyler, a leading up-river lumber exporter, with this proposal: The very low price of Albany boards & plank this last season being highly Injurious to the Interest of the proprietors and the very small prospect of their appreciating for some years to come unless the present mode of disposing of them is altered gave rise to the following proposals which are submitted to the considera­ tion of all the Gentlemen who are concerned in sending lumber to New York for Sale. 1st It is proposed to have all the boards & plank sent this market put into the hands of an Agent who shall provide con­ venient deposits for the same, this agent to have the sole disposal of the lumber. 2nd The proprietors or their Committee to fix the price of the boards & plank by which the Agent shall dispose of them (& from which there should be no deviation) from time to time as Circum­ stances should require.lor Although this scheme may never have materialized, it clearly points to one effect of the depression: to lay the groundwork for the cooperation and concentration of interests essential to the success of capitalist enterprises in the following decade. \Ve may sum up the economic situation in the 'eighties as fol1ows: The Revolution was immediately fol1owed by several years of confused readjustment; but some economic life was vigorous, at least until a sharp decline in prices for American produce took place in 1785; and even then it did not cease, though agriculture was particularly hard hit. Commerce had 106 Davis, op. cit., II, 30. For comment on self-favoring policy of early bank directors, ct. A. C. Bryan, .. State Banking in Maryland," Johns Hot­ ki"'; Studi~s, XVII, 35, 36, as well as Gras as cited above in footnote 103. 107 Letters to Commission Merchants, Schuyler Papers. 262 BUSINESS ENTERPRISE: REVOLUTIONARY ERA suffered even earlier, however, simply because the merchants had long been indulging in excessive importations at falling prices, and they thus helped to pave their own way to hard times. Their recovery led to the development of a new world­ wide commerce which the Revolution had legalized, and this frequently promoted longer, cooperatively financed voyages. The tendency of the hard times was to weed out the smaller business men to the eventual benefit of the larger, and to evolve more highly organized business communities; all of which cleared the way for greater business activity in the later years. CHAPTER XII A COUNTER-REVOLUTION AND ITS BENEFITS

POLITICAL developments in the 1780's ensured the perman­ ency of that economic individualism promoted by the war. One evidence of the greatness of Alexander Hamilton consists of his having appreciated this trend of events. Standing on the brink of an era of a new social philosophy, he had the astute­ ness to feel the new currents and to swim boldly with them in political life. Although full of the mercantilist notion of a strong state, Hamilton conceived of that strength as derived from individuals whom the state should help but in no wise restrain. Such ideas had long been held by Robert Morris; with this aid and that of his kind, Hamilton did not fail. Though our concern is with the economic consequences of the political" counter-revolution JJ which the Hamiltonians led, these are to some extent explained by the nature of the revolt. It was at least partly motivated by commercial, financial, and industrial desires in the North, and largely realized by the work of " a consolidated group whose interests knew no state bound­ aries and were truly national in their scope JJ 1 in much the same way that some post-war business enterprise in the North, begin­ ning with the Bank of North America, was promoted by a similarly nationally minded group. The constructive purposes of this group grew until, with irresistible force, they swept all before them. The Hamiltonians were thus the aggressors, forc­ ing long maturing political and economic changes, though they seem to have firmly believed that they also acted defensively in face of threatening social chaos.

1 Beard, A .. &_ie IrderprelGlicm of the Constitution, p. 325 eI passim. The origins of a national business group lay, in part, in important inter­ provincial marriages in colonial times. These increased after the war when. for example, Elbridge GetTy, Rufua King, and Samuel Osgood of Massa­ chusetts made brilliant marriages in New York City. 264 BUSINESS ENTERPRISE: REVOLUTIONARY ERA But it is now evident that there was relatively little danger of such social collapse, though many serious-minded persons feared such a result. The "conservatives" were far stronger than they themselves knew. As a similarly purposeful group in many states they. continued their triumphs of 1780 and 1781 by defeating most legal tender, paper money demands in the northern states in those troubled years from 1784 to 1787, and by usually meeting defiant rural debtors and democratic level­ ers with sturdy opposition. Of course there is nothing particu­ larly surprising about the demand for paper money after the war: it was the time-honored American remedy for economic ills, acquiesced in by some wise leaders in colonial days.2 What is startling is the unprecedented vigor with which such agrarian demands were combated in the 'eighties. Consider, for ex­ ample, with what difficulty the d~mand for a public "bank" was suppressed in Massachusetts in the 1740's, and then only with imperial intervention; but how effectually Massachuse~ts resisted all paper money demands in the "Critical Period." Surely the speed with which the merchants subscribed and organized in 1786 to help put down the agrarian riots which culminated in the brief but serious crisis called Shays' "Re­ bellion," is additional proof that a powerful conservative group had been evolved. 8 From this point of. view, it is the frequent successes of conservatives in many states which really call for emphasis in an analysis of the strength of the con­ tending factions. The radical financial actions of little Rhode Island and New Jersey were in fact decidedly exceptional in the North, however great the fear that such excesses might spread.· 2 Cf. the summary in tar! Russell Fish, The Development of Americatt Nationality (1913 ed.), p. 27. 3 Cf. Morse, Federalist Pa,.ty in Mass., p. 26, and Minot, InslWf'ection itt Mass., p. 9. The force led against Shays was paid for largely by merchants like the Cabots, Higginsons, and Russells, who subscribed to a list circulated by Edward Payne, the insurance man: Doc. 2822, Mass. Hist. Soc. 4 There is no adequate study of this problem. From an historical approach, the general defeat of the legal tender, paper money factions in Mass., N. H .• A COUNTER-REVOLUTION AND ITS BENEFITS 265 It is even more important to note that the "conservatives" had positive economic objectives of their own in pursuit of which they were, on the whole, surprisingly successful in these same years. They sought bank charters in several states, to the scandal of country folk and others with the old colonial view­ point. They fought to preserve the wealth of former loyalists, to the anger of a certain type of patriot. Their views on the latter question were well revealed inNew Haven in 1783 and 1784 when such business men and lawyers as David Austin, David Atwater, Pierpont Edwards, and James Hillhouse vigor­ ously opposed Tory baiting measures as against the economic welfare of the town, since the wealthy would be frightened away and a sound commercial policy consequently injured.5 This is likewise one logical explanation of Hamilton's peace treaty obs~rvance program in New York. Another objective of merchants was to free commerce by shifting the burden of taxation upon the landowner, especially upon the farmer, and they probably had the best of it, though Hamilton complained that in New York the country made the city bear too great a share of taxation, and argued that any notion of "equality of

Conn., Md., Del .. and Va. is most significant. Nor were the issues in New York and Penna. disastrous; in the former, for example, where conservatives like Schuyler, Duer, and McDougall fought bitterly against paper money bills, the legal tender issues of 1786 were so conservative as to depreciate but 6% in two years. (CI. J. Lansing to L. Gansevoort, Feb. 19, 1786, Federal Con­ vention Letters, Hist. Soc. Penna.; Spaulding, Critical Period in New York, Po 149.) On Penna., cl. Scharf and Westcott, Phila., I, 438 ef circa. For general information on all the states, Bancroft, History 01 the Constitution. I. 2JO fl. i. still valuable, though he prefaces his facts with exceedingly broad statements. Nevins, The American States, pp. 515-543, takes substan­ tially the view given above. Of course business men remained nervous. Robert Morris, for example, complained to Constable, Rucker and Co., Aug. 20, 1786 (Morris MS, in Library of Congress), that .. this damned Paper Money does more mischief" j but it should be remembered that he was trying mightily to reduce prices, to expedite his shipments abroad, at this very time.

DCI. Almon', Rememlffancer, 17B4. Part I, p. 325; F. B. Dexter, II New Haven in 1784." in New Haven CoL Hist. Soc. Papers, IV, 325 j C. H. liver­ more, Republic 01 N CUI H(JfJtIIJ, pp. 222, 224. 266 BUSINESS ENTERPRISE: REVOLUTION ARY ERA sacrifice" was absurd.6 A taxation policy quite favorable to mercantile interests was successfully inaugurated in Massa­ chusetts in 1780, so that it ~as a true grievance which was voiced in 1786 at the Hatfield convention over "the present mode of taxation, as it operates unequally between the polls and estates, and between land and mercantile interests." 7 In Connecticut the old war-time complaint that taxation favored the rich against the poor, "one main part of that slavery against which the present war was undertaken," 8 was repeated in 1784, when it was argued in even a " conservative" news­ paper that traders and money lenders paid relatively but one­ tenth or one-fifteenth as much taxes as the farmers.s An article in a Maryland journal in 1785, addressed" particularly to the Farmers and Planters," protested against poll taxes, since merchants already forced producers to pay indirectly for tariffs.lO Merchants and wealthy landowners were "notori­ ously " favored by the North Carolina tax law of 1784, accord­ ing to a critical modern scholar.ll " Conservatives" were also largely behind a powerful move­ ment in the 1780's for the incorporation of municipalities. Though the "radical" Smilie insisted in the Pennsylvania Assembly that the only historical reason for municipal incor­ poration was to protect the " natural rights" of the people,12 the arguments now generally used by the " conservatives" were largely for achieving business ends. The tendency was very prevalent in Connecticut. Hartford, New Haven, Middletown, New London, and Norwich all became chartered corporations shortly after the Revolution, and for these reasons: the com-

6 Cf. Sumner, Financier, II, 73, 74. 7 Quoted in N. B. Sylvester, Hist. of the Conn. Valley in Mass., I, 76. 8 Quoted by L. H. Gipson, Jared Ingersoll, p. 361. 9 Article in COmlecticut Courant, Jan. 6, 1784. 10 Maryland Journal, Feb. 8, 1785. 11 T. P. Abernethy, Frontier to Plantation in Tenn., p. 60. 12 Quoted by William Gouge, Short History of Paper Money, Part II, P·239· A COUNTER-REVOLUTION AND ITS BENEFITS 267 mercial elements demanded a more effective local government than the town meeting; agrarian political opposition had to be segregated because trading privileges were needed. The Wads­ worth-Deane group was behind the movement in Hartford, its publicly stated objectives being the lengthening of a pier, the improvement of the harbor; the cutting of a canal to aid the lumber trade. Commercial reasons also lay behind New Haven's incorporation. 1. Such economic arguments were ably set forth by Noah Webster in several articles in the Connecticut Courant in May, 1784. Merchants Joseph Barrell and Stephen Higgin­ son were on a committee to consider doing the same even for Boston that year, though it failed, as did a similar movement in Trenton, New Jersey. But Charleston, South Carolina, was incorporated in 1783, and Alexandria, Virginia, had been dur­ ing the war. A re-charter movement was also under way in Philadelphia, though not successful until 1789 when such a commercially minded individual as Tench Coxe wrote Alex­ ander Hamilton for advice on the subject.u Many merchant "conservatives" also came to support a national impost policy, a restraint on free trade, partly because they had other interests, as in the public debt, which would be indirectly benefited. William Bingham asserted the rights of public creditors in a threatening fashion as early as October, 1783. If justice were not done them, a "violent Convulsion must take place," he predicted.1D The Rhode Island commercial group did not fully endorse the national impost poli~y until 1786, but even there it was whispered in 1785, when a state tariff was considered, that its purpose was " to pay the Interest of J--n B---ne [John Brown's] Certificates." 18 Boston, which had warned her representatives in 1783 to remember

13 Love, Coltmial Hart/ord, pp. 343-343; notice in pmtIlJ. PlJCket, Feb. 17, 1784; Dexter, 01. nl., p. 133. 14 Under Jan. 23, 178g, New York State-Mise. MS, in Tomlinson Coli. 15 Bingham to ---1, Oct. 14, 1783, Society Coli., in Hist. Soc. Penna. 16 Bates, Rhode Island, p. ISO; Gerry to King, May 14, 1785, in C. R.. King, Rufw King, I, 74- 268 BUSINESS ENTERPRISE: REVOLUTIONARY ERA always that they spoke for a trading town, called for a

" National Establishment JJ in 1785 in order to discharge the public debt.lT Merchants there and elsewhere had not only acquired national securities but had invested also in the three. newly formed commercial banks whose work was national in scope, and bank stockholders were· said to have been among the staunchest supporters of the subsequent Federal movement.a One thing which helped make the Counter-Revolution a success, in short, was that so many merchants, lawyers, and gentlemen had secured a number of interests in a creditor capacity which called for an all-embracing economic policy, and not one relat­ ing to commerce alone. It is not our purpose to go through the steps whereby a mili­ tant minority, whose northern members frequently had common economic interests, cooperated in state affairs and then finally backed the national government movement in 1787. It is worth notice, however, that at the earlier Mt. Vernon commercial conference such an important matter for the development of a sound business economy as making foreign bills of exchange of equal legal rank with domestic debts in writing, was there discussed and recommended for favorable action to Virginia 1 and Maryland. • Some support for the national movement also came from those desiring the protection of small American lo manufacturers. What" Federalism JJ meant to a business man ~ith constructive ideas is forcefully summed up in a few lines from the merchant Joseph Barrell to his brother: .. You will find inclosed a Medal which was struck to commemorate the first American Enterprize to the Pacific Ocean. If you are a Federalist you will be pleased, but to the anti federalist, the

17 Boston Records Commissioners, Repoy,s, XXVI, 314. XXXI, 77, 78. 18 George Bryan, quoted in Konkle, Bryan, pp. 303, 323. 19 Ct. K. M. Rowland, in PttllI(J. Mag. His'. Biog., XI, 419- 20 Ct. demands of rope-makers, sugar refiners, etc., desiring protection, in Scharf and Westcott, Phila., 1,43911; also the description of a Constitutional parade, with exhibits favoring home industry, in William Duer, Reminis­ ettlus 0/ an Old Yoyker', pp. 53-55. A COUNTER-REVOLUTION AND ITS BENEFITS 269 man of Enterprize must be disgusting; nor can he wish him success, nor upon his principals is success needful, for what is property without good government? " 21 The greatest financial success of the Counter-Revolutionists was the transformation in 1790 of national and state obliga­ tions into fluid "pure" capital, with tremendous constructive effects for every aspect of the advancing national economy.22 Along with the funding process went the development of "a race of stockjobbers and speculators," the inevitable counter­ part of a developing financial system, which Pelatiah Webster noticed as early as 1785.2& For the change was not instantan­ eous but had a slow growth throughout the ' eighties, though the uncertain value of the negotiable public securities depressed their market price, with the result Robert Morris had pointed out in 1783, that they would be "daily brought into fewer hands and for less value. . . ." 24 A concentration trend in the ownership of securities (under way even before the war was over) U was to be expected under the circumstances. Securities of every kind were acquired during the years of distress at very low prices, ranging from one-half to one-tenth of their face value.2I They were most frequently received by storekeepers and merchants at first, not so much because such persons had more confidence in their future but because the securities always had some value in trade." Pure speculation

21 To Nathaniel Barrell, Dec. 20, 1787, Sandeman-Barrell Papers. 22 C/. Beard's summary, Economic Origins 0/ lelJersonirm Democracy, p.1I6. 23 Political Essays, pp. Z'lO, 290. 24 To Congress, July 31, 1783, Sparks, DiplofllfStic Corresp., XII, 393. 25 See the remarks and quotations on this point in Davis, Essays on Cor­ lorations, I, 181, 182. 26 According to Jefferson, quoted in Beard, Economic Origins, p. 169, and references; c/. also C. F. Adams, in New Eng. Hist. Genealog. Soc. Reg., VIII, 306, saying average price was four shillings on the pound; c/. similar ltatements by Stephen Higginson, in I. 0/ Econ. Bus. Hist., III, 685. 'r1 C/. advertisement of a Springfield, Mass., store, in Mason Green, .. Springfield", p. 341, and similar references given above in Chapter II. 270 BUSINESS ENTERPRISE: REVOLUTIONARY ERA was also inevitable, as when encouraged by Pennsylvania's funding law of 1785, when inter-state combinations were or­ ganized to buy up her securities at debased prices.2s Older pub­ lic creditor groups did of course exist, such as those headed by Philip Schuyler at Albany, by Thomas FitzSimons and Blair McClenachan at Philadelphia, and by the army officers. Business men were naturally eager for the ultimate redemp­ tion of the securities for another reason because, according to Wiiliam Bingham, their lowered value raised market interest rates generally, obviously with bad effects on commercial and industrial enterprise. Nevertheless, even Bingham's interest was largely speculative; he argued that profit at the time of redemp­ tion was like holding a lucky number in a lottery.29 This was probably the prevailing point of view throughout the 'eighties. Robert Morris was accused in 1783 of buying up depreciated securities from distressed owners.80 Even his resignation as Financier was interpreted (without any substantiation) by the Lees of Virginia in March, 1783, as a scheme to force the system of funding upon the states, because he and his friends were so " deeply interested" in large purchases of Loan Office certificates at low rates. Morris and Congress were also said by a choleric public creditor to have prevented Pennsylvania from aiding her creditors in 1783, possibly because" Capital Specu­ lators have not compleated their purchases." 81 For whatever reasons, the early interest of merchants in depreciated public paper is undeniable. Government securities could be purchased for one-third their value, with a prospective peace-time rise, Jo~eph" Barrell of Boston wrote on May 19,

28 Webster, Political EssaY$, p. 288; A. S. Bolles, Pennsylvania, II, 104. 29 To Alexander Hamilton, Nov. 25, 1789, in I. of Econ. B~. Rist., III, 673, 677. 30 Sumner, Financier, II, 96. 31 Arthur Lee to S. Adams, March 5, 1783, Samuel Adams Papers; John Cox to Charles Pettit, March 5, 1783, Joseph Reed, Papers, VII, no. 62, in New York Hist. Soc. A COUNTER-REVOLUTION AND ITS BENEFITS 271 1782.". In December, 1784, the Barrells purchased £2445 worth of Pierce's Continental Notes at three, four, and five shillings on the pound."" N. L. Savage, a merchant ofVi~ginia, secured £3260 of military certificates for £720 specie, in 1783.3' Caleb Bull, Jr., and Jeremiah Wadsworth of Hartford were interested in securing them late in 1784, the latter in exchange for merch­ andise."' In Litchfield, Benjamin Tallmadge sought Connecticut state securities in March, 1784, for "India goods." 8e The Gratz brothers of Philadelphia took over an officer's certificates for five years' pay, to settle an" agreement." 87 The New York broker, John Delafield, advertised in February, 1784, to buy and sell Continental and state securities!S Merchant Caleb Davis of Boston had an interest in securities in "Mr. Trum­ bull's hands" in Connecticut, that year!S But the state of the impost proposal threatened to depreciate them further in De­ cember; poor Silas Deane had had to dispose of some $40,000 worth of his Loan Office certificates a month before for five shillings nine pence on the pound!O In January, 1785, Webster wrote that the prices of Penn­ sylvania's securities were as freely quoted by the Philadelphia brokers as those of merchandise.u Two months later Loan

32 CO"'tSp. of S. B. Webb, II, 400. May 5, 17830 the Haym Salomon Letter Book says that Loan Office certificates bring one shilling, ten pence, to two shillings, three pence the "liquidated .. dollar. 33 N. Barrell Ledger, pp. 27, 74. The notes had a face value of about $41,000. M Susie M. Ames, in 1. of Eco". Bus. Hist., III, 418. 35 Co""ecticul COWlJld, Nov. 23, Dec. 28, 1784; also the Cowant for Nov. JO, and Henry Champion Jr. to Peter Colt, Sept. 24, 1784 (Wadsworth Clrresp.), about the sale of securities. 36 Courant, March 2, 1784- 37 Byars, eeL, B. and M. Gratz, p. 223. 38 IMeperulmt ClJ3ette, Feb. 14, 1784- 39 Nathaniel Paine to C.~ Davis, Nov. 16, 1784. Davis Papers, II. 40 Thomas Cushing to Samuel Holten, Dec. 9, 1784. doc. 501, Emmet ColI.; Deane Papers (Conn. Hist. Soc. Coil.), p. 205. 41 Polilical Essays, pp. 270, 271, 279. 272 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Office certificates sold there for three shillings or two shillings six and nine pence on the" Liquidated Sum," John Chaloner informed Wadsworth, in spite of the fact that holders were reluctant to sell because of the " funding bill which is now in agitation." 42 Wadsworth shortly after probably received secur­ ities as loan collateral from Samuel B. Webb, who was hard up. A Boston broker's advertisement for "Speculations in Continental and State Funds" appeared that month!8 The Maryland lournal of June 14 carried an offer of £300 of Final Settlement Certificates for sale. Haym Salomon's estate, con­ taining many public securities, was disposed of this year for a sum scarcely sufficient to take care of his debts.4of. William MacPherson of Philadelphia had to dispose of his certificates in June because the bank demanded punctual payment of what he owed it.45 In August, however, Thomas Willing reported to William Bingham that he had "had good luck in Turng the last year's paper, & this last payment into Specie." 48 But ,in November an agent of William Duer, purchasing securities in Connecticut, found many persons ready to sell. 47 Securities sank very low in 1786, though Robert Morris did not lose his faith even then that " in the End they will become hard Dollars." 48 Indeed, by March, in Connecticut, "You would be surprised to know the quantity of Final settlements that have been purchased and sent out of this' State." 49 A

42 March I, 5, 1785, Wadsworth Corresp. 43 Boston Gaaette, March 7, 1785. 44 M. C. Peters, Jews Who Stood by Washington, pp. 27, 28. This work is laudatory, but based' on MS sources. Some of these securities represented .. unliquidated" sums, however, and some may have been held by Salomon simply for sale for the U. S. (Kohler, Haym Salomon), though I am inclined to doubt the latter for which there is no proof. 45 Doc. 6186, Emmet Coil. 46 Aug. 13, 1785, doc. 918, Emmet ColI. 47 F. Fowle to Duer, Nov. 22, 1785, Duer Corresp. 48 To T. R. Tilghman, May 30, 1786, Morris Papers in New York Public Library. 49 John to Webb, March 22,1786, Corr'csp. of S. B. Webb, III, 55. A COUNTER-REVOLUTION AND ITS BENEFITS 273 new broker, William Boyd, appeared in New York this year, handling all kinds of certificates at 23 Wall Street. William Constable, John R. Livingston, John Delafield, William Edgar, Nicholas Hoffman, Cornelius Ray, and Andrew Craigie of New York; Joseph Barrell of Boston; and Robert Morris and Thomas Leiper of Philadelphia, all held various Treasury certificates or indents of interest this year, secured from soldiers. &0 But Shays' riots frightened one of the Barrells into a decision to sell his Continental securities for seven shillings on the pound. Udny Hay, an army officer, could not get two shillings on the pound for public vouchers in August, though he had previously been offered six shillings eight pence for them. &1 There had been much speculation in Loan Office certificates, Stephen Higginson of Boston wrote Samuel Osgood on Febru­ ary 21, 1787, suggesting that they, too, might profit by it, Higginson to do the purchasing for both. 52 Although the greater part of the public debt had already passed from the many to the few, according to Noah Webster in March, securi­ ties now assumed greater values as speculation became more agitated. Loan Office certificates rose twenty-five per cent, and great buying ensued, on adjournment of the Federal convention in Philadelphia." New brokers appeared, such as Elkin Solomon who advertised in Baltimore, and Theodosius Fowler of New York who, as well as Hezekiah Merrills and Norman Butler of Hartford, advertised as a dealer in securities in the C onnec­ ticut Courant. The professional group of" Exchange Brokers" dealing in securities continued active in Philadelphia.'" 50 Docs. 4871, 5616, 6ogo, 6162, 6J80, 28394. 29540, 302&t, 30674, Div. of Old Recs. 51 Statement in Edgar Papers, V, 1087. 52 Osgood Papers, I. 53 Webster to James Bowdoin, March 15, 1787, in 1 Coli. Mass. Hist. Soc., VI, 178; Massacl"uelts Gaselle, Oct. 19, 1187, as' quoted in Beard, All ECOIIOmit: /,d"pretatioll, p. 213n. 54 To Murray and Sansom, April 14, 1787, in Hollingsworth Letter Book: .. The Exchange Brokers say Final Settlements with Interest paid to 1785 274 BUSINESS ENTERPRISE: REVOL UTION ARY ERA 1788 was a year of suspense and doubt, though in May Samuel A. Otis in Philadelphia could assure his Boston mer­ chant friend Caleb Davis that there was absolutely no truth in the rumor that the old Congress was contemplating sponging either the foreign or domestic debt. 55 Jeremiah Wadsworth, in the great securities-holding section of Connecticut, continued to be interested in Continental paper. Elsewhere activity in­ creased. Alexander W. Davy was a broker seeking securities in Baltimore.58 In North Carolina in March, 1788, where mer­ chants had just heard of the recent rise in certificates in the North, an agent of William Duer and William Seton of New York sought them from persons in hard circumstances.5f It must have been about this time that later local speculators, like William Loughton Smith of Charleston, 58 began to get interested. There, too, the merchant Adam Gilchrist, late of N ew York, was purchasing at a great rate as early as March, 1788, offering three shillings six pence on the pound for ,all kinds of Continental securities. 58 From this time on there was a steady stimulus for such work everywhere from mounting political anticipations, and then from the establishment of a national Treasury system which, Elbridge Gerry disgustedly said in August, 1789, "appeared to me the most perfect plan I had seen for promoting peculation & speculation in the public funds." However caustic his criticism may have been, the prices of Continental securities indeed rose rapidly soon after.80 will not sell for more than 2/4 or 2/5 p pound cash"; but A. Caldwell wrote Andrew Craigie from Philadelphia, A.pril 9. 1787. that certificates were on the rise there: Craigie Papers. 55 May 27. 1788, Davis Papers, 14b. 56 Marylaoo Journal, April IS, Oct. ,14, 1788. 57 William Steele to Duer, March 6, 1788, Duer Corresp. 58 Cf. U. B. Phillips, in Amer. Hist. Rev., XIV, 732. 59 Steele to Duer, March 13. 1788, Duer Papers, II; this pound sterling was "only depreciated 7 p Cent." 60 To Samuel Adams, Aug. 7, 1789, Adams Papers; since Gerry himself was a security owner, this statement is doubly telling. See the charts of security prices in Davis, Essays, I, 187. A COUNTER.-REVOLUTION AND ITS BENEFITS 275 Thus did these speculative opportunities develop which were, on the one hand, to render the funding act of such unequal benefit; and, on the other, to increase the money power of men eager to invest in new banks, trading companies, industrial and internal improvement projects---or to carry on still greater speculations in the " funds," bank "scrip," or wild lands. A few remarks should be made as to the personnel and origins of the groups taking the leadership in such speculation. The greatest but least constructive of these associations was that headed by William Duer and Andrew Craigie of New York, whose promotion of the Scioto flotation for the Ohio Land Company in 1787, whose attempts at an international speculation in United States securities in 1788, and whose sub­ sequent interest in purchasing great quantities of the latter at home are a matter of common knowledge. 81 It is worth notice that both Duer and Craigie and many of their associates-such as Royal Flint, Melancton Smith, Benjamin Walker, Richard Platt, and Daniel Parker (their foreign agent)-had had a common Revolutionary background, largely in the army supply business. All of them, moreover, were from families but little known in colonial times. The latter was also true of several other business friends pf Duer, including Theodosius Fowler, William Constable, and Alexander Macomb; but it does not equally apply to his associates Leonard Bleecker and John Pintard of New York, nor to Craigie's associate, Christopher Gore of Boston. Since the Revolution Duer had been especially close to Con­ stable--an old acquaintance. Constable, Rucker and Company were Duer's financial agents when he pursued, for a short time after the war, the usual business of a merchant. By 1787 Duer, Constable, and Robert ,Morris were already deeply concerned together in finance, issuing drafts in favor of each other for considerable sums. Another of Duer's associates, William Hill (probably of McVickar and Hill, a New York mercantile

61 Davis, Essays. I. 124-277. 270 BUSINESS ENTERPRISE: REVOLUTIONARY ERA house through which Duer carried on West India trade in 1787), advanced so much money on a ship of Morris and McClenachan of Philadelphia in 1788 that he requested a draft from Duer on either Constable or Seton of New York.62 Duer also employed Constable and Rucker in public finance, when he was head of the Treasury Board from 1786 to 1789.63 It was apparently such Tr~asury work which Hill carried out for Duer in Virginia in 1786, when he had to draw on Con­ stable while trying to dispose of security indents for either tobacco or specie. Constable was obviOUSly an important connecting link be­ tween the developing post-war financial groups. Robert Morris had not only owned a part of the house of Constable and Rucker originally, but also had, in 1789, international tobacco and flour interests with both Gouverneur Morris and Con~ stable.~ Constable and Rucker had also handled public securi­ ties for Royal Flint of Connecticut (whose bills were endorsed on one occasion by Thomas Russell of Boston), as early as February, 1786. In October, 1787, they negotiated large drafts through the Willinks of Amsterdam in favor of Samuel Osgood and Walter Livingston, two of Duer's closest asso­ ciates in the next four years. 6S Constable also had many con­ nections with the leader of still another new capitalist group, Jeremiah Wadsworth of Hartford and New York, as shown in the latter's shipment of currency to him in 1788.68 Wadsworth, however, always remained rather independent of Duer and Craigie-as indeed did such other great financiers

62 Hill to Duer, Dec. 20, 1788, Duer Corresp. • " 63 Constable to Duer, Oct. 25, 1791,requests a copy of their account with the late Tree.sury Board. Duer Papers, Misc., Box II. MC!. Davis, Essays, I, 170; also Anne Morris, Gouverneur Morris, I, 19. Rucker died in 1788, and Macomb subsequently married his widow. 65 Flint to Constable, Rucker and Co., Feb. 17, 1786, Duer Corresp.; Wilhelm Jan WiUink to them, Oct. 25, 1787, Duer Papers, II. 66 ct. Sanford to Wadsworth, Jan. 8, and to Colt, Jan. 17, 1788, Wads­ worth Corresp. A COUNTER-REVOLUTION AND ITS BENEFITS 277 as William Bingham and the two Morrises of Philadelphia, and Joseph Barrell and Stephen Higginson of Boston. It is true that Barrell backed Richard Platt (an intimate of Duer) to the extent of at least $60,000 in 1788 or 1789; 81 that Wads­ worth became a creditor of Platt for at least $2870 (which Joshua Waddington of New York had to payoff in October, 1792); and that Wadsworth was also sufficiently a creditor of Duer to be implored not to bring suit against him in the critical stock market month of March, 1792.88 Nevertheless, Philadelphians were more closely connected with their own money market than with that in New York; and Wadsworth's New York interests were largely handled by Watson and Greenleaf after 1788. Wadsworth's growing importance in the New York market throughout the 'eighties should be further emphasized, since his work there was to be of lasting value compared with that of many other speculators. He was the second president of the Bank of New York for a single but critical year, 1785-1786. Numerous New York business men-including Macomb, Daniel McCormick, Craigie, Moses Rogers, and perhaps Duer -found it necessary to make little trips to Hartford in 1787 and 1788,.' probably to see him. It was in Hartford that Wat­ son and Greenleaf signed their partnership agreement, April 22, 1788, at the home of Noah Webster (a friend of Watson and brother-in-law to Greenleaf, whose sisters were married to important merchants of Boston), thereby establishing a firm which was to act as \Vadsworth's New York broker.fo It is 67 Platt to Webb, Dec. 9. 1789, in CON'esp. 0/ s. B. Webb, III, 146; E. Haskell wrote Doer and Platt from Boston, May 25, 1788, that Flint had been there, the contract completed, and that Barrell had loaned some $40,000 worth of securities, guaranteed by a specie deposit. Duer Corresp. 68 Duer to Wadsworth, March 12, 1792 (marked 1791 with pencil, which is wrong), Wadsworth Corresp. 69 Ct. CON'esp. 0/ S. B. Webb, III, 83-85; also E. E. F. Ford, Noah W cbst", I, 225-2,38. 70 Allen C. Clark, Grcmlca/ IJItd Law in tlse Federal City, p. 13; Ford, W cbst", I, 229- 278 BUSINESS ENTERPRISE: REVOLUTIONARY ERA indeed probable that Wadsworth's capital was involved with theirs from the first. Royal Flint, the Revolutionary commis­ sariat associate of both Wadsworth and Watson, subsequently became an impo~"tant financial aide for them (as for Duer) , buying securities in 1791, for example, just as he had bought foodstuffs throughout the country-side during the war.71 By August, 1789, Watson and Greenleaf stood to make great gains should Congress put the public debt on a "respectable footing." 12 Wadsworth's national importance in these years, 1788-1792, is still further attested by the correspondence he had with other business men all over the country, some seeking advice in the management of public securities. All such persons-many act­ ing on a similar but smaller 'scale than the greater figures­ helped make up the new national capitalist group, perfected through opportunities opened by the Hamiltonian measures, which was cognizant of the growing possibilities for 'in­ vestment in many fields. Its gradual formation during the 'eighties is evidence that the psychological barriers to large scale business cooperation in colonial times had been thoroughly' broken down by war and post-war developments. The benefits conferred upon such northern capitalists by Hamilton's funding system, capping the process of concentra­ tion of holdings in public securities,7S are likewise seen in the official records of redemption in 1790.

.71 Cf. Watson to Wadsworth, Aug. 16, 27, 1791, Wadsworth Corresp. 72 Greenleaf to Webster, Aug. 18, 1789, in Ford, Webster, I, 2OS; cf. also Clark, Greenleaf and Law, pp. 80, 81, on their connections with the Crommelins of Amsterdam. 73 The continued concentration of holdings after redemption is revealed by Stephen Higginson of Boston who found, while purchasing securities for Dutch capitalists on an enormous scale in the fall of 1790, that most wealthy men were buying up all the Domestic 6%. bonds they possibly could; that state notes, scattered among all classes, were daily brought to market because the people wanted cash. Higginson to LeRoy and Bayard, Oct. 23, 1790, Gratz ColI. A COUNTER-REVOLUTION AND ITS BENEFITS 279 Two of the Massachusetts Domestic Loan Subscription books of 1790 throw some light on this subject.7of Although together they present the entries of only 160 persons, making any conclusions tentative, we may note such facts as these. The class most numerously represented was that of "yeoman," of which thirty-seven appear. Twenty-nine individuals labeled

If esquire" or "gentleman" are entered, twenty-one "mer­ chants," ten brokers, eleven widows, seven physicians, several clerks and druggists, besides two or three of the cordwainer­ brickmaker class. Offhand this would seem to challenge a case for the big capitalist class gaining largely. A little figuring, however, shows that the total value of the thirty-seven yeo­ men's funded securities was but $27,844, contrasted with those of the twenty-nine esquires' $16g,682, the merchants' $119,970, and the brokers' $44,083. The average yeoman had funded securities of but $752 value, compared with the average esquire's $5851, the merchant's $5712, the broker's $4408. What is perhaps surprising about these figures is the evidence of a non-mercantile class possessed of so much personal wealth. It should be said, however, that among those listed as ," esquire" are many whose wealth had come originally from commerce. Tuthill Hubbart and Jonathan Mason of Boston are both labeled "esquire," but both had been merchants. It may well be, on the other hand, that such a non-mercantile capitalist group had been evolved over a period of years, by reason of the public securities situation. Wealth no longer nec­ essarily lay in ships, land, or private loans. A more important question is the extent to which security holders in 1790 were identical with lenders to the government during or after the war. 1£ they were largely the same, there would be less reason to speak of the unequal effects of funding, since early losses would be merely recouped by all persons.

74 These are in the basement of the Main Treasury Building, Washington, D. C. They are the only two of their kind, relating to Massachusetts, which I found. Obviously there were many of these books originally. I am indebted to officials of the Treasury Department for aid in securing these records. 280 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Fortunately these Massachusetts Loan books give the names of both the possessors of certificates submitted for funding in 1790, and of the persons to whom they were originally issued. We can thus figure what percentage of the principal value of the securities funded in 1790 represented original investment by the 1790 possessor. The results are these: about thirty-eight per cent of the principal value of the securities funded for yeoman represented original investment by the yeomen posses­ sors of 1790; about thirty-two per cent for the esquires; about twenty-four per cent for the merchants; none at all for the brokers. More yeomen than others, however, held certificates which, though not theirs originally, were originally issued to members of their families, the last names being the same. Thus it appears that only about a quarter of the funded securities belonged to those who made the initial investment. In other words, most holders of securities in 1790, in all classes, had secured them from someone else and doubtless at depreci­ ated prices. One of the largest possessors of funded securities in Massachusetts was Harvard College, the total value of whose funded securities was $102,923; but over eighty persons orig­ inally owned the public paper which the College had secured by 1790. Merchant David Sears of Boston turned in one lot of securities totaling $23,548, originally issued from 1777 to 1786. to forty-seven persons other than himself. Tuthill Hub­ bart turned in 110 securities of $38,154 funded value, secured from ninety-five other persons, including several members of his family. William Baker, broker of Boston, turned in seventy­ four securities on one occasion, funded at $10,782, secured from about sixty-four original possessors. On the other hand, the merchant Charles Miller' and Leonard Jarvis, Esquire, both of Boston, each held over $10,000 of funded securities, most of which represented public paper originally issued to them­ selves. It seems correct, however, to call such persons excep­ tional among the large security holders. This does not mean that the merchants were not interested in public securities before the greatest period of depreciation. A COUNTER-REVOLUTION AND ITS BENEFITS 281 On the contrary, data given in earlier chapters shows that they received many, perhaps, most, of them originally in exchange for war supplies. In 1784 under act of Congress of April 28, interest certificates on the public· debt were issued to many Massachusetts merchants, including George Crowninshield, John Derby, E. H. Derby, Elbridge Gerry, William Phillips, Jr., David Sears, Joseph Barrell, Francis Cabot, and Isaac Smith." The list of these was lengthened the following year. This, in tum, does not exclude the hypothesis that certificate transfers were greatly encouraged by conditions in the 'eighties. Merchants possibly sold during those years and then repurchased. Concentration in security holding appears elsewhere, as in both the state and Continental domestic debt loans subscribed to in Rhode Island.f8 The estate of Nicholas Brown held fifty­ three state securities, of $29,411 value, of which $12,325 was not assumable, originally issued to Nicholas and thirty other persons; he had made about seventy-nine per cent of the orig­ inal investment with the state, however.77 The great Providence merchant Welcome Arnold held over $17,000 of state debt in ninety-two certificates made out to about as many different persons, so that his part of the original investment was neg­ ligible; of the total, however, $7,465 was not assumable. Simi­ larly, John Brown was interested in the state debt to at least $26,943 ($II,291 not assumable), originally issued to about eighty different persons, though he had been the original recip­ ient of several large securities accounting for about fifty-one per cent of the original investment value. The firm of Clark and Nightingale of Providence held $14,761 in the state debt

75 This Register for Interest Certificates, including Entrys of Transfers of Funded Stock, Domestic Debt, is likewise in the main Treasury Building. 76 Citations from Domestic Loan Book .. No. I," and from a .. State Debt .. Loan Book, both for Rhode Island, in the main Treasury Building. 77 Ct. statement of Nicholas Brown, July 26, 1790, to a member of Con­ gress, denying an exceptional interest in the state debt, in Rhode Island Hist. Soc. Pub .. VIII, ug. 282 BUSINESS ENTERPRISE: REVOLUTIONARY ERA ($6,186 not assumable), of which they had originally received some seventy-seven per cent worth, however. Stephen and Andrew Dexter of Providence and other merchants held these in smaller sums and largely secured from other persons. These same merchants were among those most interested in that portion of the Continental debt loan subscribed to in Rhode Island. Jabez Bowen, Esquire, however, held domestic debt funded securities amounting to at least $18,986, almost all originally issued to himself during the war years. This was also true of Nicholas Brown whose $63,139 worth of funded securities largely represented original investment by himself, perhaps in government supplies. On the other hand, one entry for Welcome Arnold shows domestic securities of $8686 value, none originally issued to him but to fifteen other persons. The record of Clark and Nightingale, large subscribers to the Con­ tinental domestic debt, was better than that. Merchant Samuel Butler of Providence had originally invested about thirty-nine per cent in the domestic securities funded for $6846. Extreme examples of persons subscribing to the Continental domestic debt loan with securities originally issued to others are also found in Maryland, Uriah Forrest and Benjamin Stoddert jointly holding at least $9°,000. Other persons, in­ terested on a smaller scale, such as Wallace and Muir, John Laird and Nicholas Sluby, had also frequently obtained the securities before 1790 from numerous othet: persons. 78 Again, however, it must be borne in mind that the local merchants had frequently been original recipients of Loan Office certifi­ cates during the war, possibly in exchange for supplies. Such creditors between 1777 and 1779, for example, had been the Baltimore merchants William and Isaac Dorsey, Abraham and Isaac Van Bibber, James Sterrett, Richard Conway, Daniel Bowly, and Hobe and Harrison of Alexandria, Virginia. 79

78 These figures are taken from one of the several Maryland Domestic Loan Books, in the Treasury Building. 79 Taken from a Register of Loan Office Certificates Issued In This State of Maryland ... to May, 1780, ibid. A COUNTER-REVOLUTION AND ITS BENEFITS 283 A striking feature of redemption was the inter-state char­ acter of the high finance involved, the surplus capital and national outlook of northern financiers in 1790 being well illustrated by their interest in the debts of the southern states, and in that portion of the Continental debt originally held there. This was due in part to the work of such speculators as Leonard Bleecker of New York who hurried south that year, especially to South Carolina, perhaps the most fertile field, to buy up certificates cheap. They represented such capitalist com­ binations as those of Duer and Craigie and of Wadsworth and associates. II Duer had indeed been interested in buying up both Virginia state and South Carolina Continental debt se­ curties from six months to a year before.81 The Barrells of Boston made a profit of £22,205 on their "Southern State Securities" between 1790 and 1795.82 A Continental debt jour­ nal of the South Carolina office, 1791-1793, shows that such other northerners as Comfort Sands, Nicholas Low, Horace and Seth Johnson, and Andrew Craigie of New York, Samuel A. Otis of Boston, Nicholas Brown of Providence, and Hugh McConnell and Archibald McCall of Philadelphia were in­ volved in the securities of that state from the early days of funding. Such persons also held securities of northern states other than their own, perhaps as a result of earlier business deals as well as of speculation. Heavily interested parties in the Rhode Island state debt, for example, included the N ew Yorkers Daniel C. Verplanck, Benjamin Seixas, Joseph Winter, James F. Sebor, and Edward Livingston. The work of brokers in all of the leading seaports was of course nation-wide in scope and contributed much to a condition of concentration in secur­ ity holdings.

8IJ C/. Davis, Essays, I, 191; SImmer, FitJQncier, II, 232; Duer Corresp. for Sept~ 1790- 81 John Hopkins to Duer, Dec. 9, 1788; agreement with Daniel Carthy to buy up South Carolina certificates, of July II, I78g. Duer Corresp. 82 N. Barrell Ledger, p. 61. They gained heavily on various other kinds of public paper. 284 BUSINESS ENTERPRISE: REVOLUTIONARY ERA To reiterate, 'political disturbances ,in the 'eighties were as much a result of the demands for a new era on the part of political nationalists, supported by' the forward-looking busi­ ness element, as of old-fashioned threats by agrarians and debtors. The eventual political settlement was, in an immedi­ ate sense, a victory for the former. It resulted in legislation greatly benefiting public security holders, many of whom had secured the bulk of their holdings from other persons in earlier years, and among whom were individuals with a completely speculative attitude. The national capitalist economy was ac­ cordingly strengthened and stimulated so that numerous new investment agencies, such as those considered in the next two chapters, could now be established. CHAPTER XIII COMMERCIAL BANKS, 1781-1792 THE decade following the Revolution witnessed the organi­ zation of numerous capitalist institutions virtually unknown in colonial times. We now have to discuss them in the light of the facts already stated, with special attention to their per­ sonnel-the individual capitalists. To indicate those participants who were nom homines in business will be especially valuable in showing how the war promoted such enterprise. First, how­ ever, it is necessary to describe the changing character of business which made possible large-scale investments of mobile capital. A distinctive feature of the new business psychology was its institutional tendency, promoted by war-time cooperation, by the temporary discrediting of personal lending, and by the imitation of English practices. Thus the unincorporated joint­ stock company, released from colonial bans, was an invest­ ment agency readily utilized, however crudely and imperfectly. The idea of incorporation for certain types of business also grew steadily, partly as an attribute of political sovereignty which went naturally hand-in-hand with political independence. In contrast with the half-dozen American business charters granted in the entire colonial period, eleven were issued in the United States between 1781 and 1785, twenty-two between 1786 and 1790, and 114 between 1791 and 1795.1 Many persons were accordingly enabled to cooperate in greater busi­ ness undertakings, because of the more flexible investment sys­ tem of transferable stock certificates. Not everyone appreciated these developments, of course. Many persons .continued to regard charters of incorporation, for example, as destructive of individual rights. Indeed, if the Revolution had been fully successful as a democratic move· 1 J. S. Davis, Essays in the EMlitt' History of Ammccm Co,.po,.ations, II, Appendix A. See Chapter I as to colonial restrictions on ·corporatiO\l6. 285 286 BUSINESS ENTERPRISE: REVOLUTIOlilARY ERA ment popular opposition should have been even stronger than in colonial times.2 Again, however, a minority with powerful economic interests was eventually successful in overriding opposition to its ideas. Robert Morris argued on the Bank of North America question in 1786 that its charter was not a monopoly, but merely permitted men to do what they wished with their property, and" 1£ the rights of property are not of the nature of those we receive from our Creator, yet the security of them is amongst the great objects of civil society." 3 The increasing incorporation of business was promoted by an uncritical acceptance of the idea of limited liability for stockholders, though usually without specific mention in the charters.· The desire for liability limitation was perhaps de­ veloping abroad at this time, as seen in the act of the Irish Parliament of 1782, to promote trade and manufacture by protecting partners beyond sums actually subscribed.5 No judicial ruling on this feature of American business corpora­ tions was forthcoming for many years; 8 but that it was de­ sired and accepted by many Americans as a matter of course is seen in the statement by a stockholder in the Bank of New York, in the New York Journal and State Gazette, May 27, 1784. One of the original proposals to establish a bank there had emphasized the limited feature. 7 When shares were offered

2 ct. arguments on the Bank of North America charter, 1786, in Carey, Debates in the Penna. Assembly, esp. p. 22. Davis, Essa),s, II, 303 II., thinks that the growth of the democratic spirit at least encouraged the incorpora­ tion of non-business bodies, but that certainly cannot be held for business corporations at this date in our history. 3 Carey, Debates, p. 39- 4 Davis, Essa),s, II, 317; apparently it was not felt necessary to mention the fact in most cases. 5 StatJlles at Large Passed by the Parliaments in Ireland (Dublin, 1786), XII, 347 II. On the development of this idea in England, by 1764. c/. Lipson, Econ. Hist. England, III, 218. 6 ct. Samuel Williston, in Haruard Law Rev., II, 16z. Stewart Kyd, Treatise on the Law 0/ Corporations (London, 1794) ignores the whole question for business corporations. 7 Independent Gasette, Feb. 12, 17&t. COM,MERCIAL BANKS, 1781-1792 287 to the public in the Associated Manufactoring Iron Company of New York in August, 1786, subscribers were ,promised in the articles of agreement that a public act would be applied for, whereby .. each Subscriber shall only be liable for the Com­ pany's Debts in proportion to his Interest in the Capital." This guarantee, and the denial of subscribers' responsibility for debts beyond the company's stock, was secured, but not a general act of incorporation which apparently was not sought.8 The first important joint-stock corporation was the Bank of North America, organized late in 1781. Such commercial banks have frequently resulted from attempts to solve national financial problems created by war and the growth of the modern state! The magic word .. bank" duly appeared in 1780. Thomas Paine and Robert R. Livingston, not com­ mercial persons, are said to have thus suggested a public sub­ scription to aid the army,10 but the idea was taken up by the commercial portion of Philadelphia. The resultant Bank of Pennsylvania, a non-profit scheme, was a disappointment to Hamilton who had hoped for a truly commercial institution.l1 Nevertheless it was extremely important. Politically, it was an aspect of the Ration-wide mercantile ascendency; in Pennsyl­ vania it was a means of promoting the Anti-Constitutional revival led by James Wilson.12 Commercially, it accustomed 8 Duplicate copy of articles in metal file, .. Filed Papers," Box 1804-1808. City Oerk', Office, New York City; c/. aiso Davis, Essays, 11,260. 9 C/. F. J. Nussbaum. Historic EcofJOmic Institutions 0/ Modern Europe, p. 137. Possibly the experience gained through the tremendous sale of bills and drafts at .. discount" during the war was of 'importance in promoting discount banks afterwards. Harrington, New York Merchant, p. lIS, says that the discount function was unknown to colonial New York business men. 10 C/. Paine, Works, Conway, ed., II, ISO if.; Burnett, Letters, V, 220, on Livingston. 11 List of subscribers in 'Scharf and Westcott, Phila., Ii 408n; c/. also, Oark and Hall, Legislative alld Documentary History 0/ the Bank 0/ the U. S .. p. 10; Madison, Writings, Hunt, ed .. 1,66; on Hamilton, ct. Sumner, F iflOlltiw, II, 2J. 12W. B. Reed, loseph Reed, II, 216; Konkle, George Bryan, p. 233. 288 BUSINESS ENTERPRISE: REVOLUTIONARY ERA the merchants to the idea of deposit banking: " ... what we principally rested on, was that convenience the trading people would find in lodging their money in the Bank ..." wrote John Nixon and George Clymer, merchant-directors.18 Above all, the example of the Bank of Pennsylvania en­ couraged the establishment in 1781 of the truly capitalist Bank of North America. Subscriptions to the first institution were transferred to the second under Morris' persuasion.a Morris' own reasons for the establishment of the new bank included, first, support for the Republic, by enlisting the credit of in­ dividual citizens i but second, and most significantly, to stim­ ulate commerce when economic freedom should be made a reality through the achieving of political independence.15 More­ over, his circular appeal for investors on June II, 1781, spoke of large profits to be earned, and commented, " ... we shall only have to appeal to the Interest of Mankind which in most cases will do more than their Patriotism," though private. in­ terests, he added, might often be sacrificed to the latter.18 It is important to note that adequate subscriptions to the bank were not forthcoming until the fall of 1781 i that it was not put into operation until January, 1782, and then only with the government as principal stockholder.1T By that date the trend of events probably pointed to the securing of political independence. In other words the bank was identified with the American Revolutionary "settlement "-as the Bank of England was with that of the" Glorious Revolution." The bank immediately began to act as a nationalist reagent in politics. Morris had hoped that it would attach the interests

13 Sparks, ed., Letters to Washington, III, 71, 72. 14 Financier's Official Diary, July 4, 1781. 15 Quoted in Lewis, Bank of North America, p. 31. 16 Financier's Letter Books, A, pp. 117, 118; also Morris to Franklin, July 13, 1781, in Sparks, Diplomatic Corresp., XI, 378. 17 Cf. Lewis, Bank of North America, pp. 32, 31; Davis, Essays, II, 38. The organization meeting was held eleven days after the surrender of Corn­ wallis. COMMERCIAL BANKS, 1781-1792 289 of powerful individuals to a more closely united nation, and had once entertained the idea of accepting public securities as bank capital. The very incorporation of the bank was an early instance of .. loose interpretation" of Congressional powers, later used for similar nationalist economic reasons by the Fed­ eralists. The bank also centralized wealth; those persons orig­ inally interested in it were distributed throughout the North. William Duer at Rhinebeck, New York, for example, imme­ diately replied to Morris' plea for support, assuring him on July II, 1781, that he would subscribe (if he could command the specie, which was characteristic) and would push the matter among his friends ... I observe in your Address to the Public," he continued, .. that you do not Enter into a Detail of the Advantages to be derived to the Proprietors; perhaps it was most prudent not to do it in a public Way; but I suppose you have been more minute in your Explanations in Circular Letters written to the principal Gentlemen of Monied Interest, in the different States." 18 Jeremiah Wadsworth re­ ceived subscriptions in Connecticut for the bank.18 Philip Schuyler of Albany was asked by Morris to subscribe sums the government owed him for flour, and he also had papers for taking up other subscriptions.20 Colonel -Tench Tilghman was requested to do the same among army officers. Morris got up .. early in the morning" of May 2, 1782, to get off shares to the important John Langdon of New Hampshire.Z1 Stock immediately began to change hands in various parts of the country, and traders in distant states to speculate in bank bills. Inside of two years the stock was selling at a premium of thirty-three per cent.22 Business men everywhere were ac-

18 Morris Corresp., in Library of Congress.

19 Wadsworth to II Gentlemen," June 18, 1781; Nixon to Wadsworth, Sept. 4. 1781, Wadsworth Corresp. 20 Morris to Schuyler, June 25, 1781, Schuyler Papers. 21 Financier's Letter Books, C, p. 244; it looked like there would be a 6% dividend, he assured Langdon. 22 Purchase of shares, July I, 1782, in Boston, noted in Wadsworth and 290 BUSINESS ENTERPRISE: REVOLUTIONARY ERA cordingly concerned in the bank's welfare, and alarmed at the political attack upon it in Pennsylvania. One source of capital for the Bank of North America was the Quakers of Pennsylvania, but they did not immediately dominate it. A iist of first directors and subscribers 28 shows that the Morris war-time associates, and the largely non­ Quaker commercial figures tied by marriage to the Willing family, together with important outside capitalists, were its chief supporters. The influence of the colonial social network is here plainly illustrated. All but possibly one or two of the original directors had good colonial antecedents. Six of them were connected with the Willing-McCall-Inglis-Cadwalader­ Cox commercial family combination of long standing. Among Morris' war-time associates who were important in the bank were FitzSimons, Blair McClenachan, William Turnbull, William Bingham, John Swanwick, John Holker, Samuel Inglis, George Meade, and John M. Nesbitt, all sub­ scribers or directors, and among the most aggressive business men of the period. Several of these and certain other sub­ scribers were persons whom the war had brought to promi­ nence. Such surely were Bingham, Haym Salomon, John Car­ ter, Thomas Leiper, Holker, and Swanwick. Others, like Morris himself, had developed at least in degree of importance. Vigorous war traders, together with several representatives of wealthy colonial families, are also found among subscribing capitalists from states other than Pennsylvania. Among these were Wadsworth of Hartford, the largest single stockholder; Samuel Breck, Caleb Davis, Thomas Russell, Codman and Smith, Daniel Parker, Samuel A. Otis, and Oliver Wendell of Boston; Nathaniel Tracy and Theophilus Parsons of New­ buryport; John Langdon of Portsmouth; Alexander Robert­ son and Nicholas Low of New York. The expanding interests

Carter Waste Book, 1783-1784. On speculation in bills, cf. Burnett, Letters, VI, 395. Premium on stock noticed in New York Independent Gazette, Jan. 17. 1784. 23 In Lewis, Bank of North America, pp. 120, 133-139. COMMERCIAL BANKS, 1781-1792 291 of many of them, mentioned in earlier chapters, help explain their participation. A general subscription in March, 1784, was occasioned by protest against the bank's closed character; and Philadelphians seizing this new opportunity to invest now more largely repre­ sented the established Quaker business element.24 Two new­ comers, however, were even more fortunate in securing shares: William Edgar and Sampson Fleming, fresh from the West with fortunes partly won in British army supplies. Through their friend William Constable, also a large subscriber, they secured $48,000 specie worth of bank stock between them in February and March. Sampson wrote Edgar of the rapidity with which the subscription list was filled, but how Constable .. with the Assistance of some Great men" helped him get the shares. Edgar was to put in the same amount of money as himself. Their two .. Capitals" were never to be touched but in emergencies, so they would be safe no matter what happened to investments elsewhere.2s Another important pur­ chaser of stock, shortly before, was Van Berckel, the Dutch minister, whose fifty shares undoubtedly represented foreign capital. The immediate success of the Bank of North America en­ couraged the establishment of similar institutions elsewhere, not only because of regional jealousy, but because the same forces which had provided capital and cooperation at Phila­ delphia were at work elsewhere. Such institutions were success­ fully organized in 1784 in Boston and New York. One was suggested for New Hampshire in 1782. Attempts to organize banks in Providence in 1784 and 1786, however, failed. In Maryland James McHenry introduced a bank bill into the

24 C/. list propOsed for a second bank, which this general subscription helped prevent the founding, in Scharf and Westcott, Phi/a., I, 436. C/. satirical comment on .. rigid Presbyterians," .. unshaken Quakers," and .. furious Tories" seeking a new Philadelphia bank, in the New York IOlmwl, March 18, 1784. 25 Feb. 9, 1784. Edgar Papers. 292 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Senate in 1782, but it did not become law. A Baltimore mer­ chants' organization in 1784 was abortive for want of a char­ ter, not because sUbscriptions were lacking. James Hunter of Richmond, Virginia, hoped for a branch of the Bank of North America there in 1782 to insure commercial independence. An attempt to get subscriptions for a bank in Charleston, South Carolina, in 1783, also failed. 28 Such efforts never­ theless show in what direction business interests were turn­ ing, and the several failures to secure charters were but mo­ mentary defeats for those special interests which were behind the increasingly organized political "conservatives" every­ where. There was a threefold movement to establish a bank in New York City early in 1784. The first was a scheme of the Livingstons, John Stevens, and Stephen Sayre, which would. have included land as partial security for note issues. The second was a hard money plan of Wadsworth and Carter, late contractors to the French, who were ready to branch out in the N ew York money market, as they already had done in Philadelphia, with the help of Alexander Hamilton.!f The third was an independent movement of local merchants. The last prevailed, though a state charter was not secured until 1791. Peter Colt, returning from Philadelphia where he had been purchasing bank stock for Wadsworth and Carter, wrote the latter on August 23, 1784, that the bank at New York would probably break up if it did not get a charter. In that case, .. a few persons of large Property will set up a private Bank on the plan you formerly had in Contemplation." \Vads­ worth and Carter, however, had had sufficient confidence in

26 Sparks, Dil'lomatic Corresp .. XII. 142. 143; Arnold, Rhode Island, II. 507. 517; Bryan, .. State Banking in Maryland," loco cit., pp. 17-19; Va. Mag. Hist. Biog .• IX. 70; Ravenal. Loulfldes. p. 19- 27Cf. Hamilton to QlUrch, March 10, 1784 (Works. Federal ed., IX. 31)6) ; John Chaloner to Wadsworth. Oct. 17. 1784 (Wadsworth Corresp.), that .. Col. Hamilton and draft for all the Money he wants is honored." Davis, EssIJ)"s. II, 44. summarizes the situation. COMMERCIAL BANKS, 1781-1792 293 the new institution, a month before, to buy twenty shares of its stock.28 Many of the merchants founding this bank had resided in the city during the war. Consequently, persons calling them­ selves "Whigs" immediately objected, "declaring that the rival Livingston scheme was the patriotic one. The" Tory" charge was raised by such critics, one of whom further insinuated that the New York Bank promoters had made money through the "plunder of our Citizens." The public was warned, "Be not deceived by the names of a few Whig characters who appear among them. The danger is the greater while the real agents are behind the curtain." 29 Such accusations are im­ portant only in-so-far as they suggest the sources of capital for the bank. The original board of directors did include four Tories, but two of them-Joshua Waddington and Thomas Buchanan -had certainly been well-to-do in colonial· times, though Buchanan had also profited by selling supplies to the British during the war. Whig directors Nicholas Low and Isaac Roosevelt also represented wealthy colonial families with ex­ tensive social connections. So did the Quaker directors, Robert Bowne and Samuel Franklin. Daniel McCormick, however, apparently made his money in the city during the war, while Comfort Sands had certainly become prominent, and perhaps well-ta-do, through war contracts. William Maxwell, a to­ bacconist, had only come to New York in 1772. Another director, Alexander Hamilton, had been socially advanced by his military career, as had the bank's first president, General Alexander McDougall. The cashier, William Seton, on the other hand, had long been married into the merchant Curson family, though he had held office under the British during the conflict.

28Colt to Carter; (Nathaniel Shaler?) to Wadsworth, July 29, 1784. Wadsworth Corresp. 29 C/. Indepl!flde"' GNelte, March n, 1784. and New York Journal. March 25, 17!4. 294 BUSINESS ENTERPRISE: REVOLUTIONARY ERA There was no dominating faction in the Bank of N ew York in 1784, as originally in the Bank of North America. Nicholas Low, with only twenty shares, was the largest investor. The commercial Quaker Franklins, John and Samuel, with ten shares each; the Waddingtons, with fourteen shares between them; Alexander Robertson with ten shares; Abraham Lou with twelve; the Quaker merchant Murrays, with seventeen shares between them-these were the few large investors. The other 220 subscribers commonly held but one or two shares each. Again much of the wealth represented was derived from colonial days, though such 1784 investors as George Scriba, ] ohn Delafield, Robert and George Service, Alexander Hamil­ ton, and Thomas Stoughton were new city figures. So was the Massachusetts army contractor, Daniel Parker, but his partner, Duer, was not a subscriber in spite of the old story that Duer was responsible for the founding of the bank. By 1791 this list had changed considerably. The second president, for but a single year, had been Jeremiah Wadsworth. New wealth in the city was further represented then by such stockholders as William Constable, Aaron Burr, William Edgar, Abijah Hammond, Isaac Clason, the grocer, James Watson, the broker, and P. J. Van Berckel, the Dutch minister. The greatest single investor in 1791, however, was Alexander Robertson, also an investor in the Bank of North America, and he is said to. have been a successful young Scotch linen merchant in the city before the Revolution, though not of an old family. The socially elect of colonial days continued to be represented by stockholders from the Ludlow, Alsop, Ver­ planck, DePeyster, Crommelin, and Aspinwall families. so Thus the sources of capital for the Bank of New York in its early years were, in general, more varied than those of the Bank of North America. Noah Webster's statement in 1788 that N ew York society was more free and accessible than

30 17B4 shares and shareholders cited are taken from an unpublished list, given in full in Appendix A. 1791 shareholders, and early directors, are given in H. Domett, Bank of New York, pp. 137-140. COMMERCIAL BANKS, 1781-1792 295 that of Philadelphia," parallels such an economic situation. It is also significant that in 1792 new and unfamiliar names out­ weigh those of Leonard Bleecker and others from the older families in the establishment of the New York Stock Ex­ change.1Z By that date, one newcomer, John Jacob Astor, who only arrived in the city in 1784, had won a fine income from the marketing of furs in New York." This condition of social change was by then somewhat, but less, true in Philadelphia." Behind the Massachusetts Bank, chartered and organized in Boston in 1784, lay a complex social pattern knit largely in colonial times on the basis of commercial wealth. The Phillips - Mason - Bromfield - Quincy - Powell, Amory - Payne - Newell-Greene, Hurd-Walley-Russell-Codman, Cabot-Higgin­ son-Lowell-Lee family combinations were all well represented among the bank's original stockholders.ss Many of their mem­ bers, however, had been relatively advanced by the alienation of merchant loyalists. The fortunes of war also helped make it possible for the Cabots and Derbys to be represented. The same statement may be ventured for stockholders Elbridge Gerry of Marblehead, Robert Morris of Philadelphia, John Langdon of Portsmouth, Joseph Barrell, Thomas Russell, and Samuel Breck of Boston. The extensive commercial asso­ ciations of Caleb Davis during the war made his participation natural. This was certainly true for the army contractor Oliver

31 Qooted in Smith, New York City ill I7~, P. II9. 32 C. Stedman, New York Stock Exchange, pp. 35, 36, gives an account of its founding and names of original members. 33 Kenneth Porter, lolt1l lacob Astor, I, 36-41. ~ A person returning to Philadelphia in 1791, lamented the absence of old names in society, and the presence of .. upstarts." R. Griswold, Tlte Repub­ lica Co"", pp. 414. 415. Griswold concludes, however, that the city's society as a whole still rested on pre-war foundations, with certain war-time additions. 35 The stockholders, 1784-1791, are taken from Mass. Bank Recs .. XIX. See Clapter XI for other facts about the bank's early 'years, also N. S. B. Gras, MfIU. BtmIt, PL I, Claps, 2, J, 4. and statistics on stockholders. This work appeared after the above was written. It renders superftoous an ap­ pendiz I bad prepared on stockholders, 1784-1791. 296 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Phelps. Especially important were the insurance groups, one having developed during the war around John Hurd; the other, earlier, around Edward Payne. Hurd subscribed to forty bank shares for his office of underwriters. Payne took thirty­ eight shares on account of his twenty-two associates. 36 There is no more striking example than this of the influence of marine underwriting in the new capitalist enterprises. Moses Michael Hays, an insurance figure and broker, was another original investor. . It was perhaps unfortunate but not fatal that the support of the insurance groups was withdrawn from the Massa­ chusetts Bank in 1785. Their holdings were then cancelled, along with most of those of the Amorys and Cabots, and with all those of Samuel Breck, James Bowdoin, Abiel Smith, and Nathaniel Tracy. Some of the persons who withdrew later re-invested, however, as in the case of Benjamin Greene, who became 'a director in 1789. It would have been strange if the Greenes had not done so, for their private accounts, especially after 1770, show that they had long been heavily interested in a business of personal notes and bonds, as were also the Lees and Cabots. 87 The Amorys renewed their bank interest sufficiently to secure a directorship in 1792: several of them retired from active commerce about this time and sought more 88 prosaic investments. . The second series of banks, founded from 1791 to 1793, was obviously influenced by these earlier successes, and by the

36 In Payne's company were Adam Babcock, Isaiah Doane, Stephen Hig­ ginson, Samuel Breck, Tuthill Hubbart, Daniel and William Hubbard, John Coffin Jones, Jarvis Russell, William Powell, William Phillips, Eben Par­ sons, William Parsons, Job Prime, Edward Payne, William Shattuck. Daniel Sargent, Paul D. Sargent, Eben Storer, Nath Tracy, Oliver Wendell. Nath Appleton. Mass. Bank Recs., XIV. Compare with members of Hurd's oompany, given in footnote to Chapter III. 31 B. Greene and Sons, Account Books, no. 3. There is an inventory of bonds and notes of Jan. 31, 1790 (some misplaced under Oct. 7. 1788) in Lee-Cabot Papers. 38 Especially in real estate. Meredith, Amof'Y, p. 259. COMMERCIAL BANKS, 1781-1792 297 economic conditions of the post-war decade-the force of economic consolidation, and the stimulus given to enterprising men by the Hamiltonian measures. Moreover, generally satis­ fying commercial conditions existed which, in spite of a drop in exports from northern states to England in 1792, were promoted by freer trade relations with France. Increased for­ eign demands for foodstuffs had particularly beneficial effects on the middle states. After 1790 there was a general demand for additional commercial credit the country over.BS The personnel which formed the first Bank of the United States in 1791 was a choice selection from the Northern cap­ italist group already developed. The very passage of the bill in Congress was secured by such of its members as Robert Morris, Jeremiah Wadsworth, John Langdon, and their lawyer associates!O The sale on July 5, 1791, of $9,600,000 of bank stock, caused Richard Platt to exclaim, .. This is truly an age of Wonders." U There was even a shortage of shares. Jeremiah Wadsworth secured his forty-eight shares through Oliver Wolcott, Assistant Secretary of the Treasury; but few persons were so fortunate. Many were disappointed, "chiefly Pennsylvanians, who are said to be in a great rage.... "., Perhaps a march was stolen on them by New

39 Tench Coxe, Brief Examination, pp. 3, 87, 8g; Morison, Ma,.itime His,. Mass., p. 16g; Griffith, Annals 0/ Baltimo,.e, p. 129; but the West India trade began to be interfered with again by reason of war conditions, according to A. De Laforest to Wadsworth, Sept. 27, 1791, Wadsworth Corre:sp. In Davis Papers, 16a, is the broadside of a Havre merchant, June ... 1791, emphasizing the new freedom of trade with France, since monopo­ lies, etc., had been abolished. The stimulus to the French trade in 1790 and 1791 is illustrated by the career of James Swan of Boston; ct. H. C. Rice in New Eng. Qua,.,., X, 4ft!. 40 Oark and Hall, Bank 0/ U. S ~ pp. 36, 3S. 41 To Wadsworth, July'/, 1791, Wadsworth Corresp. An Amsterdam firm directed LeRoy and Bayard, April I, 1791, to take 200 shares for them. Bayard Corresp. . 42 Wolcott to Wadsworth, July ... 5, 2'/, 1791, Wadsworth Corresp. Wat­ son -had written Wadsworth July 16, 1790, of the proposed national bank, of the possible: rivalry of the Eastern states with Philadelphia for control of 298 BUSINESS ENTERPRISE: REVOLUTIONARY ERA York financiers, some of whom were particularly aggressive for purely speculative ends. In June there had been talk in New York of securing directorships for Wadsworth, Rufus King, Jonathan Lawrence, William Constable, Alexander Macomb, and Richard Platt. 48 The latter wrote Wadsworth a month later that, because of its size, New York was" entitled to 9 directors including one from Hartford (vizt. yourself) & one from Jersey (Dayton)." He added, "and of our citi­ zens in nomination are Schuyler or King, Walter Livingston, McComb, Leroy, Lawrence, Constable & Platt-Besides the foregoing, Watson Delafield & Craigie are trying to get in but I am well assured neither of them will ...." 44 When the directors were finally selected, in October, they included such interesting figures of the new era as James Watson, the New York broker, a Revolutionary satellite of Wadsworth; Rufus King, trained in law during the war by a founder of Massachusetts Federalism, and a son-in-law· of wealthy merchant John Alsop of New York; William L. Smith, the Charleston securities speculator; Jeremiah Wads­ worth, chief of the Revolutionary commissaries; Joseph Bar­ rell, the important war-time Boston merchant and securities speculator; William Bingham, success ful Philadelphia war trader and securities speculator; John M. Nesbitt, commercial associate of Robert Morris; George Cabot, successful Revo­ lutionary privateer owner. There were also r~presentatives of wealthy colonial families: Philip Livingston, Nicholas Low, and John Watts of'New York; several rich Quaker merchants and Thomas Willing of Philadelphia; Jonathan Mason, Jr., son of the wealthy Boston Whig merchant.45 its stock; he also spoke of stock subscriptions to a bank in New York, and how plans for a national bank had converted the governor and his adherents to favor a charter for the B~nk of New York. Ibid. 43 Watson to Wadsworth, June 14, 1791, ibid. 44 Platt to Wadsworth, J\1ly 7, ibid. 45 New York Daily Advertisl!r', Oct. 26, 1791, gives these and the others, with votes received at the election. COMMERCIAL BANKS, 1781-1792 299 Some persons feared that the national bank would absorb the three banks already established, and prevent the founding of others. Several leading Federalists, not including Hamilton, even thought this desirable in the interest of political na­ tionalism"· The result was just opposite, however. Although branches of the Bank of the United States were founded in 1792 in Boston, New York, Charleston, and Baltimore, they did not discourage other banking enterprises there, indicating the need for even more credit accommodation and showing the ability of the country to supply the necessary capital. Moreover, in New York half the original directors of the branch bank were small stockholders in the Bank of New York.4T Three of the four directors who resigned from the Massachusetts Bank on March I, 1792, however, became directors of the branch bank of the United States in Boston, perhaps because of a clash of political interests. The other directors of this branch, with the exception of lawyer John Lowell, were not even stockholders in the Massachusetts Bank. These merchants-Joseph Barrell, Caleb Davis, Israel Thorn­ dike, and William Wetmore-possibly represented a rival busi­ ness group." With the passage of time, however, the early hostility between the local and the national banks was every­ where allayed. After all, the promoters of these institutions were alike in their endeavors to establish a new business order. The founding in 1792 of the Union Bank in Boston and the Pennsylvania Bank in Philadelphia, and the unsuccessful at­ tempts to found the .. Tammany" and .. Million," or .. Whippo," banks in New York need not be discussed here

46 Davis, Esmys, II, 54-57; c/. Margaret Brown, in Penna. Mag. His'. Biog .. LXI, PIt- 404. 405, for opinion of Wm. Bingham of Philadelphia. He foresaw increased land values because increased banking capital would have inflationary effects by reason of cheaper interest rates. 47 List of directors of the New York branch bank in Hardenbrook, FiJIIJrICial Nn» YCIt"k, p. ISO- Pbila. Doily AdTJerlise,., Jan. 17, 1792, gives a list which differs slightly, including Macomb's name. 48 Mass. Bank Rea., I, 23, 24- The original Boston branch bank directors-_ are given in the Phila. Daily Atluerliser, Jan. 19. 1792. 300 BUSINESS ENTERPRISE: REVOLUTIONARY ERA since we have already outlined the new capitalist groups in those places. Moreover, in New York, the activities at this time of Duer, Macomb, Craigie, Platt; and their crowd were not of permanent value. These men had become so intoxicated by the dream of 'a new Midas touch as to be acting without any reason whatever. James Watson declared in January, 1792, that there was not more than $500,000 specie in New York City, and that this fact was hard to reconcile with the stock subscriptions then under way, or with common honesty.49 The groups behind banking projects in certain of the smaller places, however, need investigation. The merchant-mariner background of the Essex Bank of Salem, Massachusetts, which went into operation in July, 1792, assuring the public that uSpeculation, that bane of industry and integrity" played no part in its establishment, is revealed in the first list of directors, almost everyone of whom had once trod the quarterdeck. 50 William Gray, Jr., the first president, had been a successful Revolutionary sea captain. The group was also evolved from the kinship of the town's leading mercantile families in colonial times. For example, Jacob Ashton, merchant and director, had married a daughter of wealthy Captain Richard Lee. Though the Cabots, successful war-time traders, were not directors, their connections, the Dodges and Ornes, were. Similarly in Providence, where a third bank proposal suc­ ceeded in 1792, merchant Browns, Thomas L. Halsey, and Welcome Arnold, along with J abez Bowen, were the prime movers, as in earlier attempts. The Brown family, with its marriage ramifications, dominated the institution, twelve Browns being on the list of stockholders.51 The small holders 49 Watson to Wadsworth, Jan. 28, 1792, Wadsworth Corresp. 50 Salem Gasette, June 19, 1792. Directors also given here. It should be noted that a bank was established this year in the town of Portsmouth, N. H., but I have been able to find out little about it 51 H. K. Stokes, in Hist. of Rhode Island and Providence Plantations, III, 261,262; Arnold, Rhode Island, pp. 507, 517. The original subscribers are given in the Centennial History of the Providence National Bank, pp. 41-43. COMMERCIAL BANKS, 1781-1792 301 were overshadowed by the Browns, Clark and Nightingale, Benjamin Gray, and A-rnold; but many marriages connected both large and small holders, revealing the influence of pre­ war society. Arnold and Halsey, however, were developed by Revolutionary opportunities, and many of the subscribers had been owners of funded securities only two years before. The Hartford Bank, organized in 1792, was plainly the work of persons whose fortunes had been connected during the war with that of Jeremiah Wadsworth. Wadsworth's clerk, Peleg Sanford, suggested the idea and sounded out his townsmen. The merchants were well disposed, though lawyer Oliver Ellsworth at first declined to participate. Sanford, on Wadsworth's advice, tried to keep out speculators. It was thought that there would be no trouble getting a charter of corporation if it were not known that the subscription list was full when application was made, since some legislators would vote for it thinking that they could then subscribe. 52 The local merchants could participate since Hartford trade had grown since the war. The influence of Revolutionary com­ missariat experience is also suggested since Barnabas Deane, Wadsworth's war-time partner, Oliver Phelps, the beef con­ tractor, and James Watson, Wadsworth's Revolutionary aide, were the principal subscribers. Lesser stockholders had had similar war associations. This fact was recognized when Wads­ worth was elected to the presidency, which he declined.1I This same year a bank was planned for New Haven, and another was established for New London and Norwich jointly. The commerce of New Haven was by then flourishing, and a chamber of commerce was founded in 1792 by much the same group as the bank"· The banking capital was rais.ed only

52 Sanford to Wadsworth, Nov. 12, 30, 1791. Wadsworth Corresp. 53 Woodward, Hartford Bank, p. 170, gives original stockholders. Cf. Love, Colonial Hartford, p. 356, and Memorial Hist. Hartford Co •• I, 654- on trade conditions. I know of no evidence to support Woodward's state­ ment (p. 56). that the bank was founded amid "prevailing poverty." 54 T. R. Trowbridge, A1ICimt Maritime Interests of New Hoven, pp. 37. 38; Timothy Dwight, Statistical Aceoun' of New H(J'lJen (ISn), p. 66. 302 BUSINESS ENTERPRISE: REVOLUTIONARY ERA after several years of effort, however, which was eloquent testimony as to New Haven's war injuries; and even then the president was not a merchant, but a wealthy landowner. 55 The N orwich-N ew LQndon organization was headed by a half­ brother of Jabez Huntington, whose war-time activities in trade and army supplies have been noted. 56 President Hunting­ ton, however, had made a wealthy second marriage with the daughter of a New York merchant. 51 A Howland and a Coit, who were among the original directors, had been owners of a famous Revolutionary privateer, though both were from families prominent before the war.58 Edward Hallam, another director, had had war-time business dealings with the Hunt­ ingtons. The origins of the Albany Bank, established in 1792, were more complex. Elkanah Watson, the enterprising Yankee whose war career has been mentioned and who was most sensitive to currents of business interest, took credit for putting over the idea to suspicious Dutchmen.59 Albany's business had happily increased since the war. Merchants James Stevenson and James Caldwell promoted small manufactures. The town grew in importance as new trade replaced that in furs, its position as a supply depot during the war being maintained by new inland trade, made possible by the post-war expansion of New England.60 This migration was also responsible for the founding, immediately after the war, of nearby Troy, on the site of Vanderheyden's ferry on the Hudson. Troy imme­ diately prospered through the growing grain and lumber busi-

55E. E. Atwater, ed., New Haven, p. 324; T. S. Woolsey, The Old New Haven Bank, passim. 56 B. T. Marshall, ed., Modern Hist. New London Co., II, 426, gives the bank officials. - 57 Mary Perkins, Old Houses of N orwick, p. 224. 58 Caulkins, Norwich (1866), pp. 312, 404, 406. 59 Cf. Watson's remarks, in Munsell, Collections of Albany, II, 399· 60 Munsell, Annals of Albany, I, 338, X, 200; contemporary's remarks in Howell and Tenney, Albany County, p.609. COMMERCIAL BANKS, 1781-1792 303 ness; a trader wrote in 1786 that the country was the best for business he had ever seen.81 The fortune of the landed Vander­ heydens must have increased as Albany and New York mer­ chants sought store sites there.82 The first directors of the Albany Bank accordingly repre­ sented a variety of business interests, with both old and new families. General Schuyler was one. So was his former em­ ployee and war-time business associate, Daniel Hale. A Vander­ heyden naturally appears on one directors' list. Young Stephen Pawling, whose career was tied up with the fortunes of Troy, and old Goldsbrow Banyar, wealthy colonial office-holder, land speculator, and loyalist, were among the others. Several war traders, John Tayler and Cornelius Glen, helped organize this institution.88 A chief characteristic of the persons who supported Balti­ more's first banks was their relative newness there-ample testimony as to the way the town had grown. Among the pro­ jectors of the Bank of Maryland were those war-time arrivals William Patterson and Robert Gilmor, whose successful busi­ ness careers during the conflict have been noted. Patterson became the bank's first president in 1791, and Gilmor a first director. Other early directors included Jeremiah Yellott, another war-time arrival who had done well as a privateer cap­ tain; and several persons who came even after 1783, but probably with property of their own. Many of the original directors of the branch Bank of the United States at Baltimore

61 John Woodworth, Reminiscences 0/ Troy, pp. 23, 24; A. J. Weise, Troy't On, Hundred Years, pp. 20-32. 62 Ct. sketch of Vanderheydens in N. Y. Genealog. Biog. Soc. Bul., XLVI. 10-12. For lease of land near Lansingburgh. to Samuel Franklin and other New York persons, April 27, 1787, ct. Mise. MS "L", in New York Hist. Soc.; also letters of Peter Ed Elmendorf from Albany, Aug. 7, 1786, on the .. New City" and land values, in Sanders Papers, VII, ibid. 63 Two sets of directors were elected, in March and June, 1792. I am indebted to the Amer. Antiq. Soc. for these lists, copied from the Albany Register, March 5, and the Albany Gaaette, June 14, 1792; ct. also A. J. Parker, ed., Landmarks 0/ Albany Co. (Syracuse, ISW), pp. 303.363. 304 BUSINESS ENTERPRISE: REVOLUTIONARY ERA had settled there but shortly before the Revolution.84 The president of the Bank of Baltimore, established in 1795, was George Salmon, who had made out well since he came from Ireland in 1778, .~nd who was from the first much taken with the idea of a bank.85 It is worth noting, too, that among the original agitators for a state bank in Maryland were several business associates of Robert Morris. Bank investors also in­ cluded the Hollingsworths, whose war-time flour interests have been mentioned, and the McKims, Bowlys, Van Bibbers, and Smiths, who had been most active in commerce and pri­ vateering. Moreover, such persons had been concerned with the funding process in 1790; indeed, a securities broker, Adrian Valek, became a first director of the branch bank at Baltimore. The ability of northern Virginians to oversubscribe capital for a bank at Alexandria in 1792 is partly explained in a state­ ment that year by Robert Hooe of that place: "We have lately had some fine MiIl~ erected & our Flour bears an equal charac­ ter abroad." He had earlier spoken of 1790 as a " remarkable Year with us," such as he had never expected to see again.88 Alexandria's success in founding a bank stands in contrast to Richmond's failure that year.8f The former place, like Balti­ more, had gained during and after the war through the grain and flour trade, and with the rise of a group of vigorous local traders. Such of its members as Josiah Watson, Thomas Por­ ter, John Fitzgerald, Robert T. Hooe, and William Hart­ shorne had been constant agitators for a local bank, and Wat­ son, Hooe, and Hartshorne became directors of the institution. 64 Lists of organizers and original directors of the Bank of Maryland and of the local branch Bank of U. S., are in Scharf, Chronicles, p. 260, and his Baltimore City and County, p. 452. 65 Woolsey and Salmon Letter Book, under March IS, 1784; he then feared a shortage of capital in Baltimore for establishing a bank. 66 To Herries, Keith, Steinbar and Co., and to James Gardoqui, April 24, 1790, Hooe and Harrison Letter Book, 1789-1796. 67 On Richmond, c/. Davis, Essays, II, 79; Samuel Mordecai, Richmond in By-gone Days, p. 38; Starnes, Banking in Va., p. 24 and citations. COMMERCIAL BANKS, 1781-1792 305 The first president, William Herbert, was another of the local merchants, but he had married into a prominent colonial trad­ ing family. Older families were also represented by the di­ rectors Charles and Ludwig Lee, who were related by marriage to Philip R. Fendall, a lawyer and another director. Charles Simms, bank organizer, was a land speculator of importance.8s This much is clear about the establishment of the new bank­ ing institutions: the organizers were invariably persons who had been benefited by the war and post-war events. However, capital was frequently secured from individuals whose wealth went back to colonial times, as well as from the nouveaux riches; and the composition of stockholders was usually in­ fluenced by the social texture woven in pre-war years through marriages between old and prominent families. Similar origins for the capital invested in the other large enterprises of the time are revealed in the following chapter.

68 List of directors given in Columbian Mi"of' MId Alexandria Gazette, Jan. 26, 1793. C/. Va. Mag. Hist. Biog., VIII, 288, on the petition for a branch bank of U. S. Fitzgerald wrote Wadsworth for help in seeking the latter. F. 1.. Brockett, Lodg, 0/ WIJShington, and Mary Powell, Old Alex­ andria, give biographical sketches of some of these men. I am also indebted to the First National Bank of Alexandria for a letter containing some of this information. CHAPTER XIV OTHER NEW ENTERPRISES: CONCLUSION

OTHER attempts at big business occasionally financed by joint-stock methods in the post-war decade were in turnpike, canal, and bridge construction, manufacturing, and land spec­ ulation. The first three must be passed over rapidly as com­ munity supported enterprises with so many small investors that they defy analysis as to sources of capital. Examination is easier in the case of several large but unsuccessful manu­ facturing concerns which were new in kind and scale to America, and for the land companies. Regarding the latter, a recent writer truly' observes, "A capitalistic society was oCGupying new lands, and the land speculator merely applied to westward extension the methods of capitalistic organiza­ tion," 1 though such efforts were premature and frequently un­ successful at this time. Since the beginnings of canal construction in America had coincided with the pre-war political upheaval, there was at the end of the war a natural revival of plans for the improve­ ment of community and regional economy, capital now being secured from many sources. Dutch financiers, interested in America through war-time business, participated in the Potomack Company of Virginia, the Western Inland Lock Company of New York, and a Connecticut River improvement project in the 1780's and '90'S. State aid was also frequently secured for inland communication projects, and large addi­ tional amounts of domestic private capital were thus expended. Much of the latter came from merchants, who were naturally interested. Among the original officers of the Potomack Com­ pany in 1785 were William Hartshorne and John Fitzgerald

1 A. P. Whitaker, Spanish-American Frontier, p. 48. His remark is even more true for the exploitation of northern lands, with which this study is concerned, than for' that developed in the Southwest. 306. OTHER NEW ENTERPRISES: CONCLUSION 307 of Alexandria, merchants and organizers of the bank there several years later! Robert Morris of Philadelphia was eager to invest in the James and Potomack River companies,8 subs­ quently heading similar organizations in Pennsylvania where merchants had long hoped for internal improvements. Morris and his business associates William Bingham and Thomas Fitz­ Simons were also among the first to apply in 1792 for shares in the Lancaster Turnpike, along with more than two thousand other persons. Bingham became the first president of the cor­ poration, and FitzSimons and Tench Coxe were also officers! Morris also helped secure subscriptions for New York's inland navigation companies in 1792. The chief credit for promoting these, however, goes to Elkanah Watson, Philip Schuyler, Goldsbrow Banyar, and Jeremiah Van Rensselaer, founders and directors of the Albany Bank." Barent Bleecker, of an old New York family, and also among the organizers of that same bank, was the navigation companies' first treas­ urer.- New York City business men were of course interested in such plans, which would benefit their port, J ames Watson, war commissary and New York broker, friend of Elkanah Watson, being among the first to support the canal companies in 1792.' Nicholas Hoffman, a gentleman of an important colonial family, took subscriptions for th_em in the city. Nicho­ las Low, Dominick Lynch, James Watson, and probably John Watts, two old and two new financial figures in the city, subse­ quently became directors of either the Northern or the Western 2 ct. Maryltmd JONntGl, June 14, 1785. 3 Morris to Tench Tilghman. June 14. 1785, Morris Papers in New York Public Library; Morris to General Gates, Jan. 29, 1785, doc. 4196, Emmet CoiL 4. Ct. PmJliJ. Mag. Hist. Biog., XLII, 128 ff., 235 ff.; Davis, Essays, II, 161. 5 Ct. Elkanah Watson. History 0/ 'he West"" Canals, pp. 4, 22. 6 There are many letters from Bleecker to Schuyler, in 1792 and 1793. in Letters to Schuyler OD Canals, Schuyler Papers, from which the following facts are taken. 7Watson. West"" CaMls. pp. 85. 86. 308 BUSINESS ENTERPRISE: REVOLUTIONARY ERA Inland Lock companies. Abraham Ten Broeck and Cornelius Glen, Albany merchants and bank officials of old Dutch stock, served in a similar capacity. Among the many subscribers to the companies was Gerrit W. Van Schaick, cashier of the Albany Bank, and many N ew York City persons of varied social origins and financial interests, such as merchants LeRoy and Bayard and George Scriba, lawyers Rufus King and Richard Harison, gentlemen Gilbert Aspinwall and John Lawrence. The newly prominent merchant, Comfort Sands, directed a canal engineer to Schuyler.8 New England was flooded with transportation improvement proposals in the 1790'S and several of these also were realized because of the support large capitalists gave them. Certificates in the Middlesex Canal of eastern Massachusetts were owned in 1794 by Ebenezer Storer and Mungo Mackey, merchants of Boston, and by Aaron Dexter, a Harvard medical professor related to the Amorys. Such new merchant-capitalists as An­ drew Craigie and Joseph Barrell, and the lawyer-capitalist Christopher Gore, also put money into this enterprise, as did numerous persons from every walk of life. 9 Jeremiah Wadsworth of Hartford was greatly interested in improving the navigation of the Connecticut River and agitated to form a company for that purpose. In 1790 and 1791 he corresponded with the engineer John Williams of Deerfield on the subject of "canalling." Williams then went to Boston to push Wadsworth's ideas. He presented a letter from the latter to "Mr. Russell," consulted with "Mr. Phillips-Mr. Breck-Mr. Mason-Mr. Barrell & some others," but doubted if they would subscribe to the plan. Russell advised getting in touch with Lowell and Gerry, then in Philadelphia, who had great influence in Boston. Some men were afraid that the project would hurt Boston's trade. Attorney General Sullivan, S Gerrit Van Schaick Misc. Papers, under March 29, 1793; Letters to Schuyler on Canals, passim. 9 Middlesex Canal Certificates, in Mass. Hist. Soc.; ct. also Bostonian Soc. Pub., VI, 70, 71. OTHER NEW ENTERPRISES: CONCLUSION 309 however, favored it. In such ways did one member of the new capitalist group seek the cooperation of others, though not always with complete success, as in this case.10 In Providence an ambitious but unrealized canal scheme was promoted at this time by the enterprising John Brown, more wealthy than ever from his Far Eastern ventures, who offered to sub­ scribe $40,000.11 One of the most successful toIl-bridge corporations of the period was built over the River Charles, connecting Boston with Charlestown. Merchant-financiers Thomas RusseIl, Na­ thaniel Gorham, and James Swan helped promote it in 1785. They were supported by eighty-six other persons, including Jonathan Jackson and Oliver WendeIl, two sociaIly prominent gentlemen though Jackson had lost money since pre-war days.12 The contemporary Essex Bridge was largely financed by the Cabot-Lee-Gray-Thorndike-Derby-Dodge group of Salem, Beverly, and Boston; representing the newly rich North Shore merchant class. II A bridge built over the Merrimac River soon came under the control of eccentric" Lord" Timothy Dexter, a former tanner enriched by speculation in securities, an ex­ treme type of new capitalist.u Shop or home manufactures, financed by individuals or partners, continued to be the rule after the Revolution; but several large groups of capitalists then for the first time be­ came interested in industrial concerns of a joint-stock charac­ ter. Post-war conditions, it should be said, encouraged some kinds of manufacture. John Welsh, Boston merchant, dis­ couraged by the commercial situation in 1785, resolved to

10 Williams to Wadsworth, Dec. 10, 1790, Jan. 26, 30, Feb. 2, 1791, Wads­ worth Corresp. 11 Davis, Essays, II, 176. 12J. F. Hunnewell, Charlestown, p. 18; Bostonian Soc. Pub., V, 68; Jackson Letters, 1792, passim. 13 Ct. Essex Instit. Coli., XXX, '10. 14 Davis, Essays, II, 192; ct. remarks on Dexter in New Eng. Hist. Genealog. Soc. Reg., XL, J80 ff., XLI, 98, 99. 310 BUSINESS ENTERPRISE: REVOLUTIONARY ERA pay more attention to manufacture than to commerce.15 De­ pendent labor groups were now also available: eighty-five soldiers' widows and their 135 children were said to live by home manufactur~s around Salem, in 1787/6 and manufac­ turing associations were founded in Baltimore and New York in 1789 partly to employ the poor. There was also a keen patriotic desire, to make political independence economically secure by developing" useful arts," expressed after 1785 by a growing demand for state protection and subsidies for in­ dustry.17 Stewart and Jones of New York canceled an order for nails from England in 1786 because the New York legis­ lature was considering putting a duty on them; if this were done they expected to buy them cheaper at home.18 Among persons favoring such measures were Thomas FitzSimons, a "protective" man in Pennsylvania as early as 1785, and Nathaniel Gorham, merchant and land speculator, who was chairman of the Massachusetts committee which voted a sub­ sidy to the Beverly cotton works in 1791. The developing Fed­ eralist movement was closely associated with such interests. Industrial inventions were, moreover, attracting attention in the post-war decade. Oliver Evans (aided by Jesse Hollings.­ worth, the flour factor of Baltimore) and Barnabas Deane the Hartford merchant both sought monopolies for making steam engines in their respective states. Jabez Bowen of Providence was a "proprietor" of an engine in 1787.19 Jeremiah Wads­ worth heard in I 784 from Hezekiah Bull of Hartford of an "agreeable Tour of 300 Miles visiting. the pdnciple Manu- 15 May 27, 1785, John Welsh Letter Book. 16 According to a contemporary, quoted in Essex Instit. Coil. XXX, 72; cf. also Caroline Ware, Ea.rly Cotton Manufacture, p. 14- 17 Cf. remarks by Samuel Rezneck, .. Industrial Consciousness, 1760- 1830," in I. Econ. Bus. Hist., IV, 788; W. B. Bagnall, Textile Industries of U. S. I, p. 81; Scharf, Baltimore City and County, p. 393; Griffith, Annals of Baltimore, p. 115. 18 To Perry and Hays, March 25, 1786, Stewart and Jones Letter Book. I9Deane Papers (Conn. Hist. Soc. Coli.), pp. 215, 216; on Bowen, ct· W. P. Cutler, Rev. Manasseh Cutler, I, 205-207. OTHER NEW ENTERPRISES: CONCLUSION 311 facturing Towns" in England. Within a few years Wads­ worth was receiving persons who knew about "Models and Plans of Machines," and he secured information about every­ thing from" fire engines" to textile machinery.20 In Albany merchant James Caldwell successfully developed various kinds of manufactures, proudly writing Philip Schuyler in 1791 of a machine which allowed one person to handle nine tables at a time for spinning tobacco." In 1787 Robert Morris had an elaborate manufacturing plant to do various kinds of work on the Delaware River. He possibly secured this as confiscated loyalist property, purchased with depreciated certificates, as Tench Tilghman had proposed two years before.aa Morris' friend, William Bingham, was interested in 1789 in the possibilities of manufacturing iron in Luzerne County, Pennsylvania.a• The great joint-stock manufacture of such Philadelphians, however, was an "en­ couragement" society, organized in 1787 with 853 sub­ scribers." Three years later a similar effort was made in Balti­ more by merchants like Van Bibber, McKim, and Johnston, then also interested in banking, to establish a joint-stock cotton manufacture. It met resistance, however, from other traders of the town. The enterprising Henry Hollingsworth headed a group of Baltimore, Delaware, and Philadelphia capitalists who a little later are said to have established a temporarily successful cotton manufacture.as In New York City the war trader John R. Livingston, who had married a merchant's daughter and developed a number

20 Bull to Wadsworth, Dec. 26, 1784; John Adams to Wadsworth, July 9. 1788; Burr to Wadsworth, Aug. 26, 1790; Wadsworth Corresp. 21 Jan. 19, 1791, Schuyler Papers. 22 Cutler, eMlln-. I, 249; Morris to Tilghman, March 28, 1785, Morris Papers in New York Public Library. 23 Upham. Pidn-iag II. 416 ft. 2t Scharf and Westcott. Pili/a.. III. 2314; Bagnall, Texhle lrulMSlries. I. pp. 78. 79; Remeck, o~. cit .• p. 795- 25 Bagnall. o~. cit .. I. p. IJ2;- Davis, Essays, II, 267, 268. 312 BUSINESS ENTERPRISE: REVOLUTIONARY ERA of financial interests, made attempts in 1788 and 1790 to pro­ duce cloth in factories. 26 Other enterprising New Yorkers, many connected with the city's bank, formed the joint-stock Associated Manufactoring Iron Company of New York in 1786. Among its original subscribers were the newcomers Sampson Fleming and William Edgar; the newly rich banker Daniel McCormick; the young lawyers Hamilton, Varick, and Laurance; and gentlemanly representatives of wealthy old families, including Cornelius C. Roosevelt, William Denning, John Alsop, and John Jay. A New Jersey iron manufacturer for the Revolutionary armies, Samuel Ogden, later became concerned with this scheme.27 A still greater project there was the incorporated N ew-York Manufacturing Society of 1789. Though of quasi-patriotic and charitable origins, it had notable capitalist participants. Alexander Robertson, largest stock­ holder in the Bank of New York two years later, was an organizer and its first treasurer, other founders including Nicholas Low and William Maxwell, both of whom were also directors in the Bank of New York. Still other subscribers in­ cluded active and retired merchants, securities speculators, bankers, brokers, lawyers, and gentlemen. 28 The demand for window glass encouraged many persons to manufacture it in the 'eighties. From Amsterdam came Leonard de Neufville who cooperated with Robert Gilchrist of New York and John G. Van Schaick of Albany, merchants, and with Stephen Lush of Troy, later an original director of the Albany Bank, in setting up a " glass-house " at Albany in 1787.29 In Boston the merchant-financiers William Phillips, 26Bagnall, op. cit., I, p. 187; Henry Barber, Antiquities of New Haven, p. 58. 27 Cf. Davis, Essays, II, 260. Th~ names are taken from the articles of agreement in the City Qerk's Office, New York. There were fifty shares, costing £50 each. 28 Wilson, Pinta,.d, p. 20, gives the subscribers; cf. also New Yo,.k Journal, Feb. 26, April 2, 1789. ' 29]ohn G. Van Schaick Letter Book, passim; Mercantile Papers-New York City and Albany, in New York Public Library; Cuyler Reynolds, A.lbany Ch,.onicles, p. 372. OTHER NEW ENTERPRISES: CONCLUSION 313 Stephen Higginson, and Samuel Breck, together with the loyalist Frederick William Geyer, financed an unsuccessful glass manufacture in 1789.80 Jeremiah Wadsworth of Hart­ ford had been interested in such works the year before.S1 Boston capitalists backed at this time other industrial proj­ ects which were possibly of a joint-stock character. Geyer was also concerned in a sailcloth manufacture with gentlemen of the" first reputation and fortune." It was a considerable affair which in 1789 had about £3000 sterling capital, Breck, Thomas Walley, the Amorys, and John Andrews being connected with it!· All of these were or had been merchants, and several were then also interested in the Massachusetts Bank. The Cabots and their business friends or relatives, including Israel Thorn­ dike, Nathan Dane, and Henry Higginson, organized at Beverly in 1787 the first cotton factory in New England. Sim­ ilarly, in 1790 the merchant George Dodge, a promoter of the Salem Bank, headed a sail manufactory with capital of £15,- 8 000 at Salem. • Notable textile manufacturing enterprises were promoted by Moses Brown of Providence" and by Jeremiah Wads­ worth of Hartford. The Browns were typical rich men of the time, outstanding capitalists in every branch of business activity, including banking. Wadsworth, even more of a Revo­ lutionary product than they, was just as eager to put his newly­ won wealth to work in mechanized industry. He received letters on the subject from many sources because of his known" love

30 Davis, Essays, II, 262, 263; Deane Papers, op. cit., p. 342; Prof. and lr1d. Hist. Suffolk Co., III, 416. 31 Chaloner to Wadsworth, Nov. 1788; Geyer to Wadsworth, June 19, 1791; Wadsworth Corresp. 32 D~ane Papers, op. cit., p. 242; Davis, Essays, II, 260; on Boston manufactures in 1788, cf. Brissot de Warville, New Travels, I, 104. lOS. 33 Robert Rantoul, .. The First Cotton Mill," in Essex Instil. Coll., XXXIII, 13 fl.; Anna/s of Salem, II, 168. 34 The famous Almy, Brown and Slater cotton factory. Samuel Dexter had initiated such activity there. 314 BUSINESS ENTERPRISE: REVOLUTIONARY ERA of enterprise," as a New Haven thread manufacturer wrote.as Wadsworth's chief effort in this line was to establish a joint­ stock financed, woolen cloth factory in 1788. For this, as for his Hartford Bank, he received capital from his local fol­ lowers: among them, thirty in number, were the merchants Peter Colt, John Caldwell, and Nehemiah Hubbard, the lawyer Oliver Ellsworth, and Oliver Wolcott.se By June, 1790, Wads­ worth had furnished Josiah Burr of New Haven with £840 to use in Burr's linen and cotton manufacturing shop, for which southern cotton was imported in 1789 for an experi·· ment in making stockings. The influence of Wadsworth as a promoter is still better shown in the subscription list of his proposed Connecticut Manufacturing Company of December, 1791. It contains the names of New York's leading financiers, who took over $19,- 000 worth of shares.sT The company never materialized, how­ ever, because a greater manufacturing scheme was developed contemporaneously by an even more powerful combination. This was the New Jersey Society for Establishing Useful Manufactures of 1791, the best example of the new joint-stock industrial organizations. In this corporation were many persons identified with the whole economic program of Federalism, an exception in this instance being Wadsworth himself whose nature was rather conservative as compared with that of such men as Duer and Craigie, who supported the" S. U. M." for purely speculative ends. Its early directors and stockholders, however, are an otherwise excellent representation of the national capitalist group connected with the N ew York money

35 Hez Wetmore to Wadsworth, Oct. II, 1790, Wadsworth Corres.p. 36 Subs<:ription list in Maine Hist. So<:. Coli., IV, 55, with many names misspelled. 37 Cf. Davis, Essays, I, 273, 274, giving list of subs<:ribers. It was to make silks, .princi.pally. There are many letters on this in the Wadsworth Corresponden<:e. The biggest trouble was to keep Duer from turning it iruto a pure spe<:ulation. OTHER NEW ENTERPRISES: CONCLUSION 315 market.1S However premature this brain-child of Hamilton's may have been, it is ample evidence of the desire and ability of this group to make use of the joint-stock mechanism for industrial purposes. Land speculation was of course a constant element in colonial life, and unincorporated land" companies" had been used to that end before the Revolution. After the war, how­ ever, sea-board gentlemen invested in land on an unprecedented scale, frequently through unincorporated joint-stock manage­ ment. This was a return to the big proprietor land settlement idea which was re-asserting itself in British imperialism on the eve of the Revolution. Though the Continental Congress had refused to act favorably on the claims of the big colonial land companies-one of its committees in 1781 denied the compatibility of a company's interests with the policy of the United States, a blow against the proprietary method­ nevertheless, the triumph of the democratic spirit was incom­ plete. Indeed, the very question of democratic procedure was much less important in the struggle against the old companies than was the interest which rival speculators had in the western claims of Virginia and several other states. The trend of political and economic events in the 1780's favored 'the formation of speculative organizations by post-war capitalists, politicians, and military men, though frequently with dis­ astrous results for the participants and not necessarily to the great injury of the pioneer settler.s& The war had released western lands from imperial regula­ tions, leaving the states free to dispose of them, except for those portions ceded to the Confederation. They were then readily secured by numerous persons, including many to whom the war had given economic opportunities. And the funding meas-

38 Davis, Essays, I, 340 ff. has a remarkable treatment of this, and gives subscription lists on pp. 391, 392. ' 39 F. J. Turner, .. Western State-Making in the Revolutionary Era," in Amer. Hist. Rev., I. 74. 251, as modified by T. P. Abernethy. 'Western Lands Gnd '''' American Revolution, esp. Chap. XXI. 316 BUSINESS ENTERPRISE: REVOLUTIONARY ERA ures later favored great speculators like Robert Morris 'who appreciated their effects for a subsequent rise in land values generally.~o The chain of economic links forged during and after the war led also to land investments by Dutch commercial houses, such as those made in New York by the Van Stap­ horsts in 1792.41 I t is not true that all land purchasing was now financed through joint-stock methods, any more than all post-war manu­ facturing was. The Gratz brothers of Philadelphia, old Crog­ han associates, made their large purchases in western Penn­ sylvania immedIately after the Revolution simply as part­ ners together with that enterprising lawyer, James Wilson, the flour factor, Levi Hollingsworth, and with one of the Willings.42 The partnership was likewise the favorite method employed by the intensely individualistic Robert Morris-who was usually too restless for company restraints. Even he, however, had become interested in the old lIIinois and Wabash companies in 1781, and together with several other of his war-time associates built his greatest speculation around the ill-famed North American Land Company in the 'nineties. William Bingham, Robert Lettis Hooper, and again Wilson -war-evolved individuals in many respects-perhaps worked along the newer lines when they organized the Canaan Com­ pany of Pennsylvanians which in 1785 purchased land around the present site of Binghamton, New York. 4S The partnership also continued to be generally employed by the two principal groups of land speculators in post-Revo-

40 C/. Beard, Eeonol"ic Origins 0/ leffersonian Democracy, p. II4II, quoting Morris. 41 C/. P. D. Evans, Holland Land Company, p. 20 et passim. 42 C/. Amer. Jewish Hist. Soc. Pub., XX, 101. 43 Ruth Higgins, Expansion in NI!'lIJ York, p. III; Hooper to Wilson, April 12, 1787, doc. 3247, Emmet Coli.; W. B. Gay, ed., Hist. Gaeeteer 0/ Tioga Co., pp. 18, 24. Margaret Brown, .. William Bingham, Eighteenth Century Magnate," Penna. Mag. Hist. Geog. LXI, 432, seems to think the purchase was confined to these three. There is an excellent descri.ption of Bingham's and Knox's Maine speculations in this article. OTHER NEW ENTERPRISES: CONCLUSION 317 lutionary N ew York, one upstate and one in the City. The former followed in the tradition of the Schuylers, Glens, and Van Rensselaers in the upper Hudson and Mohawk River valleys. Besides representatives of the older families, like Philip Schuyler and Jeremiah Van Rensselaer, there were now such speculators there as the war-trader John Tayler of Albany and his associates, especially Ezra L'Hommedieu. These persons were intrigued by the possibility of securing upstate lands in exchange for soldiers' pay depreciation certificates, which could be bought for six shillings on the pound in May, 1782.H The New York City group was largely composed of those new figures whose other capitalist activities have already been noted. Except for the Duer-Craigie Scioto speculation, the greatest purchases by these men were in the central and northern parts of New York State. They began buying St. Lawrence River lands in a large way at public sales in 1787. Alexander Macomb, the British army war trader, was the leading figure in this, being associated with or backed by Daniel McCormick, one of the nouveaux riches, Samuel Ogden, son of a wealthy loyalist, Gouverneur Morris, and Henry Knox, that speculatively inclined general who had made a wealthy marriage before the war.u Other investors in St. Lawrence town lands soon after 1785 included William Edgar, who had been interested in Croghan's western speculations years before, \Villiam Constable, a product of the old fur trade of northern New York, William Laight, loyalist merchant, and Benjamin \Valker, army associate of Hamilton. In the upstate group the merchants John Tayler and James Caldwell were their asso­ ciates on occasion. The greatest single purchase was that of Macomb, Mc­ Cormick, and Constable, acquired in 1792 from New York State (in whose assembly Macomb himself sat) and attended

44 Tayler to L'Hommedieu. May 28, 1782: L'Hommedieu to Tayler, Jan. 2S. 1782. Noy. 19. 1783. ldarch 24. 1784- Tayler Corresp. ~A. N. Sakolski, C,."" AmniclJll Ltmd Bubbl~, p. 64: F. B. Hough, St. lAwrnIC~ GIld F ,.""I/ira COl., pp. 2J9-2SI. 318 BUSINESS ENTERPRISE: REVOLUTIONARY ERA by some irregularity. Melancton Smith, the war trader associate of William Duer, was one of those who urged approval of this purchase in the legislature.46 When Macomb crashed with Duer in the spring panic of '92 various ·parts of this purchase went to his partners and to other speculators, such as Edgar, Ogden, Samuel Ward, James Watson, and Nathaniel Shaler, the last a friend of Jeremiah Wadsworth. Ev~ntually the pur­ chase was scattered among numerous persons, including the Lows and Hoffmans of New York, John Brown of Provi­ dence, and the merchant Phyns and Ellices of England, the latter being relatives of Constable and backers of Robert Morris in some of his speculations in the 'nineties.47 Illustrative of the joint-stock methods, on the other hand, was the new Ohio Company of 1787. It makes little difference to' point out that it was originally formed from the sincere desire of many old army officers to found new homes, or th~t the Rev. Manasseh Cutler had no idea originally of becoming involved with the new financiers:48 The important thing is simply that the plan inevitably fell afoul of the Scioto asso­ ciates--of Duer, Craigie, Constable, Gore, Flint, and their crowd."g The method of financing it necessarily gave it into the hands of the new capitalists, as is proved beyond doubt by the list of Ohio Company shareholders in I 796 which included such names as Welcome Arnold of Providence, Thomas Russell of Boston, William Edgar and Alexander Hamilton of New York. 60 Such a result was unavoidable becau;e of the economic forces at work. The character of Cutier was but as a sail mov-

46 Cf. Hough, Lewis County, p. 24on, on Macomb's' influence on land sales there; on Smith, cf. Sakolski, op. cit., p. 67; D. S. Alexander, Polit­ ical Hist. New York, I, S4 47 Hough, Lewis County, p. 21 if.; d. also Higgins, op. cit .• p. 142 if. 48 Such is the defense of A. B. Hulbert, in Records of the Ohio Com­ pany. I, Intro., LIX.· 49 See the elaborate account in Davis, Essays. I, 124 if. . 50 Hulbert, Ohio Company, II, 23S if. OTHER NEW ENTERPRISES: CONCLUSION 319 ing before such winds of new interest, for he was a big business

II undertaker" such as the age demanded.61 Revolutionary circumstances had helped to develop the similar company of the Miami Reserved Lands Associates, which was purchasing Ohio territory from Congress at this same time. The prime mover in this affair, John Cleves Symmes of New Jersey, had made valuable contacts through his political activi­ ties during the war and was of some social importance. 52 Second only to him among the proprietors of the Miami Com­ pany was Elias Boudinot, of a "remarkable matrimonial net­ work" in New Jersey. The capitalist leanings in Boudinot's nature were evident even in colonial times and he readily fell in with various enterprises of the new era. 58 Jonathan Dayton, also a Miami proprietor and the brother of a New Jersey mer­ chant, had, like Symmes and Boudinot, a Revolutionary Whig career, and shortly after also became a heavy speculator in pub­ lic securities. Dayton was a brother-in-law of General Matthias Ogden, a Miami proprietor who was in turn the brother of a war commissary. Still another proprietor was Daniel Marsh, Revolutionary quartermaster and commissioner of forfeited estates in New Jersey.56 These men did not contribute the entire capital for their enterprise, since individuals from even Rhode Island and Massachusetts (the latter representing a "number of gentlemen") paid in large amounts of depreci- 51 Cutler, Ct4tler, passim, reveals a person of versatile talents and with an insatiable eagerness for new interests. 52 B. W. Bond, Jr., ed., Co"esp. of I. C. Symmes, Intro. and notes. In the Elias Boudinot Ledger, p. 102, is ;I list of names attached to a "Copy of the original Account between the proprietors of the Miami Reserved Township, u settled by me by Virtue of a Power of Attorney for that purpose from John Oeve Symmes, Esqr." In this are sixteen persons. plus a private company, the latter made up by certain persons among the sixteen. They held in all twenty-three shares. These men were also. among the twenty-four proprietors of the company.

53 It Eliu Boudinot," in Diet. Amer. Biog. Boudinot was also heavily interested in the It S.U.M." . 54 W. O. Wheeler, Ogden Family in America, pp. 131, 132, 137; Letter" of Moo,.e F_, p. 13n. 320 BUSINESS ENTERPRISE: REVOLUTION ARY ERA ated securities wherewith the purchase was made. 55 Moore Furman, Revolutionary commissary of New Jersey and brother-in-law of Edgar and Constable of New York, became another investor i~ this company after the failure of George Morgan, Royal Flint, and Daniel Parker to secure lands from Congress in 1788.56 New capitalists were equally conspicuous among the asso­ ciates of Oliver Phelps and Nathaniel Gorham in their com­ pany purchase of New York territory from the State of Massa­ chusetts in 1788. Gorham, merchant and rope-walk owner originally of Charlestown, was especially prominent in Boston after the war, being interested in such other things as the Charlestown Bridge corporation. 57 Phelps was more distinctly a war product, a previously little known western Massachusetts trader whose commissariat and beef-selling activities during the war apparently won him a fortune and valuable acquaint­ ances. Among these was his principal war-time assistant, Israel Chapin of Hatfield, who was associated in the purchase with Gorham and who had been speculating in Vermont lands since 58 1781. Also connected with Gorham and Phelps was "Livingston & Co.," or "Livingston and Gilbert," of New York.59 The company shares were sold to many other persons. Rufus King 55 Bond, Symmes, p. 45. 56 Furman to Edgar, May 20, June 10, Oct. 10, 1788, Edgar Papers; Dayton to Symmes, Sept. 12, 1788, in Bond, Symmes, p. 201. 57T. B. Wyman, Genealogy and Estates of Charlestown, II, 424; New Eng. Hist. Genealog. Soc. Reg., VII, 303, 306; .. Nathaniel Gorham," in Dict. Amer. Biog. 58 O'Reilly Docs., V, nos. 32,33,83; Orsamus Turner, Phelps and Gorham's Purchase, pp. 135, 136, 292. 59 Phelps to Wadsworth, April 14, 1788, Wadsworth Corresp., about a meeting with the company at Hudson. Phelps to Gorham, April 4, 1788 (Phelps Papers in New York State Library), said that Livingston and Gilbert and N ew York City associates would take 30 shares, which, plus 20 proposed to be given for native rights, left 70 to be disposed of. This reference and others below to the Phelps Papers were given me through the courtesy of Edna L. Jacobsen, of the New York State Library. OTHER NEW ENTERPRISES: CONCLUSION 321 was approached, but refused to participate. Thomas Russell of Boston probably became concerned, and lawyer James Sullivan of that town had a small part of the purchase. Robert Morris may have invested, and Jeremiah Wadsworth certainly took at least two shares. Oliver Ellsworth was also said to be interested.eo Phelps' idea of the kind of shareholders he desired is revealed in a letter to James Wadsworth, of April 5, 1788: .. There is but a few of us that are yet concerned in this pur­ chase. Neither is it our wish to have more than 40 or fifty austensiable persons--and those of the most respectable carr­ acters in the states of Connecticut, N York & Penna. [?] in­ closed is a list of these that are now concerned--exclusive a number of gent'm from Penna. [?]-which have wrote to Mr. Gorham-wishing to be concerned-for some particular reasons we conclude to divide it into 120 shairs tho, we hope to have the whole held by 40 or 50 persons. . . ." So, when less important persons from Hampshire and Berkshire Counties, Massachusetts, wanted at least ten shares between them, Phelps did not approve. 81 He evidently wanted the com­ pany to be owned by the larger capitalists. The followers of Jeremiah Wadsworth of Connecticut were as eager to participate in land speculation as in the other new business enterprise. There is strong similarity, for example, between founders of the Hartford Bank and of the Connecticut Land Company.'s Wadsworth himself acquired wild lands, though less frequently through the company method. As early as 1781 he and Daniel Parker had c01J.templated a "Location Scheme which is certainly the greatest Speculation that has been made since the War." This was a plan to purchase New York lands by hurriedly buying up II New Money" for pay­ ment before a .. Company with pretty powerful Purses" beat 60 King, King, 1,325; Cutler, Cutler, I, 459; Amory, Sullivtm, I, 172; Phelps to Sullivan and Samuel Parkman, Jan. 23, 1788, and to Gorham, April 14, 1788, Phelps Papers. . 61 To Gorham, April 22, 1788, ibid. 62 Cf. names and remarks in Woodward, Ha,.tfo,.d Bank, pp. 70-73. 322 BUSINESS ENTERPRISE: REVOLUTIONARY ERA them to it.8s Wadsworth purchased for himself and relatives from Phelps and Gorham in 1789 or 1790, and probably be­ came interested in Vermont lands in the 'nineties.8" In 1791, when Robert Morris, together with William Constable and Gouverneur Morris (and in spite of rival efforts of John Liv­ ingston and Andrew Craigie) 85 bought up the Massachusetts holdings relinquished by Phelps, Wadsworth possibly helped him to finance the transaction; he endorsed a note of Morris for $20,000 on December 13, 1791.88 He and Morris also had an agreement of October 3 I to purchase lands together in the Genesee country, but it is said never to have gone into effect.8T * * * At this point we may conclude our study of how the Revo­ lutionary economic forces promoted business " freedom" and opportunity, and thus forged out of the colonial materials the stuff and personalities which made inevitable a more modern business age. The transition in system was most pronounced in the partial change from the personally supervised investments in pre-war years to many with institutional management in 1792. Though individuals continued to lend money on personal or real secur­ ity, or to invest in the simple trading and manufacturing part­ nerships, new mechanisms were now in operation to facilitate the investment process. Such was the government debt. Such were numerous joint-stock companies, including commercial

63 O!aloner to Wadsworth, Aug. II, 1781, Wadsworth Corresp. Robert Morris was also interested. 54 Cf. Josiah Burr to Wadsworth, Nov. 23, 1789, about coming" to a "determination" with Phelps, Wadsworth Corresp.; c/. also H. G. Pearson, lames S. Wadsworth of Geneseo, PI>. 6, 7. 65 Morris to Ogden, O'Reilly Docs., XV, nos. 18, 19. 66 Morris to Wadsworth, June 24. 1792, Wadsworth Corresp., enclosing endorsed note. May Zl, 1791, Morris wrote Wadsworth that he enclosed a draft on Constable and Co. for 50,000 silver dollars, payable in 1793 at 6%. Many other letters to Wadsworth in 1791. 67 Agreement under date, ibid., but note on back says that it never went into effect. OTHER NEW ENTERPRISES: CONCLUSION 323 banks, would-be factory textile manufactures, new land specu­ lating associations, and many internal communication projects. Development was thus in the direction of impersonal and spec­ ialized capitalism, though it was to be several decades before the merchant-capitalist would be removed from his central position in the investment system. Contributing to the transition was a change in the psycho­ logical tempo of the people. The war had altered habits and suppressed that .. great reluctance to innovation, so remarkable in old communities." 88 It had made people think, speak, and act .. in a line far beyond that to which they had been accus­ tomed." 811 An .. epidemic rage for Stocks & funds" in Boston in 1791 70 expressed a speCUlative interest in securities which was little known in earlier America, but which is quite familiar in the modem economy. Behind a change in system lies a· change in the affairs of individuals. During the war a minority of business men, usually young in years, had benefited by unusual opportunities and had developed national interests. After the war another minority, not necessarily identical in personnel, gained by the consolidat­ ing economic influences of the 'eighties and by the unequal bene­ fits conferred by the Hamiltonian measures. These fortunate groups furnished most of the leaders and some of the capital for the new enterprises. But the work of such leaders who were spurred on by the speculative temper was only made possible by the additional support which older individuals, still wealthy from colonial times, gave them. Moreover, it is incorrect to think of these leaders as giants of enterprise who moulded the opinions of their fellows. On the contrary, if the above chapters show any­ thing it is that the social forces of the generation had taught many persons to think alike. Sole credit, for example, can 110 68 .. Centinel," Oct. 5. 1785. in McMaster and Stone. Penna. and Con­ .rtitU/iofS, p. 567. 69 David Ramsay. AmericOll Revolution (1789). II. 600-602. 70 Stephen Higginson to LeRoy and Bayard. Aug. 13. 1791. Gratz CoIl. 324 BUSINESS ENTERPRISE: REVOLUTION ARY ERA longer be given Robert Morris for planning the first great American business corporation, the Bank of North America. The thoughts of others had been turned in that direction.71 The new capitalists of 1792 did not include all merchants. Some of them, for example, were not interested in the advance­ ment of manufactures. There was a natural rub between home production and foreign importation; indeed, critics occasionally denounced merchants' banks which they said favored importers when local industries needed capital and credit.72 The author of " Reflections on the State of the Union," a series of newspaper articles in 1792, advocating domestic manufactures for nation­ alistic reasons, was at pains to assure importers that they were wrong in denying that they would benefit thereby.78 It is more correct to say that only certain merchants, frequently retired, with large surplus capitals and possessed of the" promoting" spirit, were greatly interested in large scale manufacturing. Similarly, Gouverneur Morris pointed out in 1785 that some of the chief subscribers to the Bank of North America 7 were no longer active in business. ' Such persons were of a different economic caliber from those still concerned with com­ merce as a way of life. Exceptions should be made also for certain wealthy gentle..; men. Charles Carroll of Carrollton, a gentleman capitalist even in colonial times, was not too keen about bank proposals. He replied to Thomas FitzSimons, who was urging him to sub­ scribe a large sum to a new bank scheme in 1783, that while he preferred bank bills to state bills of credit, he was not sure that paper money of any kind was not an evil, "to judge of the effects from the example of Great Britain.'" In spite of--or

'71 Including Hamilton, Gouverneur Morris, Pelatiah Webster, and James Wilson. 72 Cf. Carey, Debates in Penna. Assembly, p. 127; J. T. Callender, Sketches of the History of America, p. 185; Tom Callender; Letters to Hamilton King of the Feds, p. 27. 73 Boston Colllmbian Centinel, July 7, 1792. 74 Sparks, Morris, III, 444. OTHER NEW ENTERPRISES: CONCLUSION 325 perhaps more truly because of - his having "considerable sums" out at interest at that very time,76 Carroll was clearly not of the stuff of the Morrises and Duers. In truth, the period was one of flux in ideas 'and interests; many men were aware of a new" climate of opinion" in busi­ ness, but few were certain of the outcome. If most capitalists did not resemble a clear-cut new type--were still personally supervising simple local investments-that was characteristic of a generation in transition. But this should not obscure the progress which had been made in the development of invest­ ment and banking technique as a result of the Revolutionary upheaval.

'15 Carroll to FitzSimons, April 28, 1783, Gratz Coil. APPENDIX A NEW YORK BANK STOCKHOLDERS, 1784 OR 1785 * Name Share3 Name Share, Thomas B. Atwood 4, Matthew Cooper 2 Thomas &: J. Arden 2 Stephen Crosfield 4 Philip Arcularius 5 Peter Clopper 2 Francis Atkinson 2 Isaac Cock 1 John Alsop 4 Elijah Coek 1 Thomas Buchanon 6 Ambro3C Copland 1 Thomas Blane 2 Bryan Conner 2 Robert Bruce 1 George Douglass 4, James Buchanon 4 Robert Dunbar 2 Broome &: Platt 2 William Depeyster 1 Samuel Broome 1 Thomas Duggan 1 Buchanon, Hunter &: Co. 4 John Delancey 1 Thomas Bowne 1 John Delafield 1 Abraham Breevort 2 Richard Deane 1 Robert Bowne 4 Gesar Duyckinek 1 John Byvanck 1 William Dealing 2 Will Backhouse 1 Nicholas Delaplaine 1 Peter Byvank 1 George Embree 1 Corns J. Bogert 1 Elting &: Variek 1 Berrien &: Hunt 1 John Franklin 10 Abraham Bond 1 Samuel Franklin 10 Anthony L. Bleecker 2 John Fisher 1 John Broome 1 George Fisher 1 Theop Bache 2 James Farquhar 1 John Berry 4 Lewis Faugeres 6 Samuel Bard 2 Isaac Gouverneur 4 James Beekman 1 Archibald Gamble 2 Samuel Bayard, Jun 5 Galbreath &: Thomson 4 Albion COl: 2 Thomas Goadsby 2 Isaac COl: 1 John Gasner 3 Cornelius Clopper 1 John A. Graham 4, John Charlton 1 Guyon, Carthy & Co. 1 John B. Coles 2 Robert Gault 1 Joseph Clement 1 Peter Goelet 1

• This list is undated, but internal evidence indicates that it was the original stockholders' list. It is in the vaults of the Bank of New York and Trust Co., and is furnished through the courtesy of that institution. 327 328 APPENDIX A Hugh Game 3 Robert McWilliams 2 John Glover 1 John Murray 6 William Hill &; Co. 2 John Murray, Jun 5 Alexander Hosiack 2 Robert Murray 6 John Hone 1 Nathan McVicar 1 Daniel Hartung 1 Peter McDougall &; Co. 2 Lion Hart 1 Lindley Murray 5 Alexander Hamilton 1 William Maxwell 8 Joseph Hallet 1 Isaac Moses &; Co. 4 Daniel Hitchcock 1 Isaac Moses for M. Josephson 1 John Henry 1 Isaac Moses for I. Nathan 1 Thomas Haviland 1 David Masterton 1 Hugh Henderson 2 Christopher Miller 1 Henry Haydock 2 John Mowatt 1 Ebenezer Haviland 1 Alexander McDougall 5 Benjamin Haviland 1 Mangle Minthorne 1 Uriah Hendricks 2 Her Mulligan 1 John Jones 3 Thomas Maule 2 Joshua Jones 2 Jacob Mott, Jun 1 Johnson &; Ogden 4 Jacob Morrell 1 Thomas F. Jackson 1 Henry Nash &; Co. 2 Peter Keteltas 1 Elias Nexon 1 Nicholas Lowe 4 Henry Newton 4 John Lawrence 1 William Neilson 2 Abraham P. Lott 1 Robert Pemberton 1 William Livingston 1 Pearsall &; Embree 2 Nicholas Lowe p PN. 16 Sarah Pell 3 Ludlow &; Goold 4 Evelyn Pierpont 6 Thomas Lawrence 1 John Price 2 Lyde &; Rogers 2 John Porteous 2 Hayman Levy 1 Daniel Phoenix 1 Gabriel H. Ludlow 1 William Patrick 2 W. H. Ludlow 1 Lewis Pintard 6 Daniel Le Roy 1 Daniel Parker 4 John Peter Le Mayour 2 William Post 1 Christopher L. Lente 2 Thomas Pearsall 4 Jonathan Lawrence 4 Edmund Prior 1 Tom &; Laurence 2 James Parsons 1 John Laurence 2 Stephen Rapalje 1 Abraham Lott 12 Alexander Robertson 10 Joseph Lawrence 2 Moses Rogers 5 Daniel McCormick 3 Edward K. Roston 1 Jacob Morris 4 Cornelius C. Roosevelt 1 John Miller 2 Thomas Randall 2 David Mitchelson 4 Alexander Robertson for W. Leslie 1 APPENDIX A 329 Isaac Roosevelt 3 Peter Schermerhorn 1 John J. Roosevelt 1 Willet Seaman 1 Alexander Robertson for I. Smith 2 William Talman 1 Henry Remsen 1 Joseph Taylor 2 John Rogers 4 Thomas Ten Eyck 2 Nicholas Romayne 1 William Thomson &: Co. 2 Cornelius Ray 1 John Thomson 1 John Remsen 2 Thomas Tucker 1 Christopher Robert 3 John Turner &: Co. 2 Thomas Roach 2 Jacobus Vanzandt 4 Ezekiel Robins 1 John Vanderbilt 5 Riddell, Colquhoun &: Co. 2 Andrew Vantuyl 8 Heeter St. John 6 William Ustiek, Jun 2 Thomas Stoughton 6 Gulian Verplanck 2 John Stites 2 Richard Variek 1 Robert and G. Service 2 Elting &: Varick 1 John Shaw 2 Simon Van Antwerp 1 Bernard Swarthout 1 Viner Vanzandt 2 Peter Stuyvesant 2 Andrew Underhill 1 James &: A. Stewart 1 Tobias Vanzandt 1 Comfort Sands 6 Hubert Van Wagener 2 Joseph Stringham 2 Willson &: Saidler 2 James Scott &: Co. 2 James Woodhull 1 Chua &: R. Stewart 1 Benjamin Waddington 6 Josiah Shippey 1 Joshua Waddington 4 Edmund Seaman 2 Henry Waddington 4 John Staples 1 George Warner 2 Robert Smyth 1 Capt. John Walker p Wm. Max- William Shedden 4 well 1 Richard Sharp 2 Richard Willets 2 John Staples p W. Maxwell 1 Richard Warner 1 Jacob Sarly 4 Robert Watts 2 William Shotwell, Jun 1 William Young 2 George Scriba 1 Alexander Zuntz 1 BIBLIOGRAPHY

The sources used in the foregoing pages are here cited, with some critical evaluation of the manuscript material. It will be noted that attention was focused upon the manuscripts, in an effort to bring out new facts. Newspapers of the period were not neglected, the Providence Gazette, the Pennsylvania Packet, the Maryland Journal, and others having been consulted for information on specific problems and years. Since, however, they were not systematically examined for the whole period, they are not listed below. The great mass of genealogical material which was gone through is like­ wise left out of this bibliography. The contribution of single genealogical works is usually of microscopic value for anyone period of history, and a citation of the works would be misleading. Nevertheless, no student can afford to ignore them if he would appreciate the intricacy of the family patterns which frequently lay behind. economic and social activities in the colonial and Revolutionary periods. There are family genealogies men­ tioning many of the persons cited in this work (as the footnotes indicate), but only an examination of the index file of such a great genealogical re­ pository as the New York Public Library can do justice to the subject. The publications of the various genealogical societies are full of scattered but vital information and most of them were gone through for this study. Few family genealogies are as valuable for the purposes of social and economic history as Lloyd Vernon Briggs, History and Genealogy 0/ the Cabot Family, 11,75-1927 (two vois., Boston,. 1927). On Philadelphia families, Frank Willing Leach, "Old Philadelphia ;Families," newspaper articles in the Philadelphia Sunday North American (PhiIa., 1907-1913) are the most complete, although John W. Jordan, Colonial Families 0/ Phila,­ delphia (two vois., Chicago and New York, 1911) is a monumental piece of work. On Massachusetts, Mary C. Crawford, Famous Families 0/ Massachusetts (two vois., Boston, 1930), is a readable summary; and Thomas B. Wyman, Genealogie8 and Estates o/Charlestown (Boston, 1879), is one of the most valuable of its kind. There is no single com­ prehensive and scholarly treatment of the genealogy of the New York families.· The student who seeks a complete guide to the official records, as well as references to the social history of the period, should consult the thorough bibliography in Allan Nevins, The American States During and A/ter the .Revolution (New York, 1924), pp. 679-691. A great bibliography touching on much of the vital economic history of the Revolutionary era, is that in Joseph S. Davis, Essays in the Earlier History 0/ American Corporations (two vois., Cambridge, 1917), vol. II, 347-395.

330 BIBLIOGRAPHY 33 1 I. UNPUBLISBBD PmM:AIlY SoUBCES In the American Antiquarian Society: The Andrew Craigie Papers. A box of miscellaneous correspondence, a box of legal documents, a box of bills, notes of hand, etc., and the earlier 1780 letters to Craigie (in a number of boxes of alpha­ beticallyarranged correspondence) were gone through. The collec­ tion contains virtually nothing on Craigie's war-time career, but it is rich in details concerning public security and land speculations in the 1780's and 1790's. In the American Jewish Historical Society: Haym Salomon Letter Book, 1781-1783. Short and inadequate for an understanding of his work as a bill broker in Philadelphia. In the Burton Historical Collection in the Detroit Free Public Library: Account Book "A" of Macomb, Edgar and Macomb, covering the Revolutionary war years when this firm furnished great quantities of supplies to the British army and Indian Department in and about Detroit. In the private pOS8e8Sion' of Mr. Austin Clark of Washington, D. C.: The Jonathan Jackson family papers. Contain occasional references to business matters. In the Columbia University School of Busine8S: Charles Crooks' Estate Settlement Book. Shows the investments of a pre-Revolutionary busine8S man of New York. In the Connecticut Historical Society: The Jeremiah Wadsworth Papers. Include a m88S of the great Hart­ ford merchant's correspondence, arranged in boxes by date, 1767- 1804 (referred to in the text as Wadsworth Corresp.); account and waste books of various kinds, of Wadsworth with the U. S., of Wadsworth and Carter with the U. S. and with the French forces, during the war. Most of this was consulted for this study, but BOme was not, incblding a mass of miscellaneous papers, receipts, etc. This is the most valuable collection of material of the Rev­ olutionary era, for the purposes of intelligent economic history. (There is a small collection of Wadsworth Papers in the New York Historical Society.) In the Connecticut State Library: The material in the Division of Revolutionary Records was used, secured through an index. Connecticut commissary agents' records are valuable. 332 BIBLIOGRAPHY In the Essex Institute: Boston Ship Insurance Book, 1747-1756. The most complete record of its kind now available for eighteenth century America. Derby Family Papers. Those relating to the Revolutionary years were looked "over, but not much material was found for this study. In the Manuscript Room of the Baker Library of the Graduate School of Business Administration, Harvard University: N. Barrell and Company Ledger, 1784-1795, and a companion waste book. They contain entries for a variety of commercial and secur­ ities' speculations by this eminent Boston firm, and indicate a large income from interest money. Codman-Smith Letter Book, 1780-1783. It reveals the international trading interests of a Boston firm and its Philadelphia associates. John Codman, Jr. Letter Book, 1783-1785. Pertaining especially to the foreign commerce of Boston. This firm was known as Codman and Smith during the Revolution. Massachusetts Bank Records. Fairly complete and invaluable for that reason. Include Directors' Minutes, Stockholders' Minutes, a Dividend Book, etc., from 1784. Daniel Parker Letter Book, 1781-1783. Enlightening material on the activities of William Duer's Massachusetts army contracting partner, later an internationally known speculator in Europe. John Welsh, Jr. Letter Book, 1781-1786. Pertaining especially to the foreign commerce of Boston, like the Codman Book. It mentions several transactions with the French forces during the war. In the Massachusetts Historical Society: Amory Family Papers. Some of them relate to the period under survey, including a valuable Ship Account Book for 1777, 1178. Caleb Davis Papers. A large collection of mercantile records of all kinds; including those of William D. Cheever, in this period. Lee-Cabot Papers. GiYe information on trade and privateering. Sandeman-Barrell Papers. Not very valuable for this study. In the Chamber of Commerce of the State of New York: Insurance Book of William and Jacob Walton. Covers most of the Revolutionary as well as pre-Revolutionary years. Contains sug­ gestions as to the commerce of New York City during the war. Minutes of the Chamber of Commerce, 1784-i818. Use was made of the unpublished typewritten copy for the immediate post-war years. Important for names of merchants, resolutions on com­ merce, etc.. These continue John A. Stevens, Colonial records oj the Chamber oj Commerce oj the State oj New York (New York, 1867). . BIBLIOGRAPHY 333 In the N ew York Historical Society: John de Neufville Letter Book of correspondence with American merchants during the American Revolution. 'Throws light on war trade "ith Holland. William Duer Papers. Include a Lumber Book, 1774-1778, two bound volumes of papers (referred to in the text as Duer Papers), many boxes of letters arranged chronologically (referred to in the text as Duer Corresp.), many boxes with an unarranged miscellany, and three books of business transactions and speculations of Duer and Walter Livingston, 1782-1795. Invaluable for information regard­ ing the greatest speculator of the day. Day Book of the New York agent of Glassford, Gordon and Monteath, of Glasgow, Scotland, 1777-1782. In account with merchants in the West Indies, Norfolk, Savannah, Philadelphia, and New York, through their agent. One of the few remaining records pertaining to the commerce of New York City during the Revolution. Commissary's Day Book of the British Army, 1777-1779. One of the few records regarding army supplies in New York City, but disap­ pointing in details about the local merchants. Letter Book of Henry Davies, Victualler of the British Fleet in New York, 1780-1782. Contains a little information on the supply work of certain New York merchants. Hugh Hughes Letter Books on Continental Army supplies, 1776-1782. A number of volumes giving valuable information as to supplies of the patriotic forces in the Hudson Valley, especially for the Northern Department, 1780-1782. New York State. Abstract of Sales for the Southern District, by New York Cummissioners of Forfeitures. One volume. O'Reilly Documents on the settlement of central New York. Tran­ scripts, largely. Volume V especially good for land speculations of Oliver Phelps and others mentioned in this study. Samuel Osgood Papers. Not very valuable for this study. Account Book of John Saunders and Jacob Glen of Schenectady, 1752-1777. Also another account book of John Saunders, 1749-1783. Concern business matters in the Mohawk Valley. Disappointing for Revolutionary material. Account Book of John Tayler, 1776-1777, for a general store of Albany, New York. Includes some accounts with the Continental Army. Also a day book of John Tayler, 1776-1777, with references to purchases made by military officers and agents. (Some of his cor­ respondence is in the N. Y. P. L.> Letter Book of Daniel Weir, Commissary General of the British Forces stationed at New York, 1778-1780. Good for the connection be­ tween certain local merchants and the British army. 334 BIBLIOGRAPHY Abraham Evertse Wendell Day Book, 1760-1793. On the business of an Albany lumber trader who brewed beer during the Revolution. Jeremiah Wadsworth Papers. A small miscellaneous collection. There are other miscellaneous collections, such as the Rufus King Papers, the Lamb Papers, etc., to which occasional reference was made through a card index. In the Manuscript Room of the New York Public Library: The Samuel Adams Papers. Selecti~ns made between 1783 and 1790 contain interesting comments on general conditions and on the course of politics. Elias Boudinot Ledger, 1760-1814. Shows some of the financial inter­ ests of a lawyer-capitalist. William Edgar Papers. A vast collection of photostated letters relat­ ing to the western career and post-Revolutionary interests of the fur trader who moved to New York City. Emmet Collection. A calendar, published in 1900, describes its con­ tents. Nalbro Frazier Letter Book, 1784-1799. lqternational trade letters of the Philadelphia partner of Tench Coxe, 1784-1790. Robert Henderson Letter Book, 1780-1784. The New York business of an immigrant Scotch merchant who later moved to Philadelphia. (The subsequent volume of his letters is in the Historical Society of Pennsylvania). Lawrason and Fowle Collection. Some ninety volumes of an Alex­ andria, Virginia, concern, 1770-1877, known in the Revolutionary period as Jenifer and Hooe, and Hooe and Harrison, and whose business records were gone through for this period. Loyalist Transcripts. Copies of claims for losses of American loyalists in the Revolution, originals in the British Public Record Office. Over fifty volumes. Invaluable for an understanding of the eco­ nomic interests of certain members of colonial society. Hudson-Rogers Papers. Various mercantile records of a New Hamp­ shire-New York concern during and after the Revolution. Robert Morris Papers, 1768-1803. A valuable collection, part of which Sumner used for his Financier. Stewart and Jones Letter Book, 1784-1786. Affairs of a ship chandlery, mercantile firm of New York in the depression years. (The fol­ lowing volume ·of their letters is in the N. Y. H. S.) Philip Schuyler Papers. An enormous and miscellaneous collection of letters to Schuyler, partly calendared, papers on land investments, military accounts, canals, family accounts, etc.. Indispensable for an understanding of almost any kind of economic activity in the war and post-war years. John Tayler Correspondence, in Tayler-Cooper Papers. Contains a few Revolutionary letters of the Albany trader. (Other records of his are in the N. Y. H. S.) BIBLIOGRAPHY 335 John G. Van Schaick Letter Book, in the Gansevoort-Lansing Collec­ tion. Letters relating to the war years do not appear, but those from 1784 to 1792 have some bearing on business conditions. Richard Varick Papers, in the Tomlinson Collection. Contain a few letters in the 1780's of this New York lawyer, which have some value for this study. Wallace, Johnson and Muir Letter Book, 1781-1783. Relates chiefly to the American-French tobacco trade of this firm of Annapolis and Nantes, but also mentions Baltimore and Philadelphia merchants concerned with them. There is also a miscellaneous collection of Mercantile Papers, ar­ ranged by cities, in the N. Y. P. L. Miscellaneous letters filed under authors' names; and other collections, such as the Bayard­ Pearsall-Campbell, all contain seanty material on economic and commercial matters in the Revolutionary era. In the Historical Society of Pennsylvania: Breck and Green Journal A. Pertaining to supplies for the French squadron furnished by this Boston firm in 1781. Chaloner and White Papers. Include three letter books covering 1778- 1780, dealing with Continental army supplies in the middle states. The miscellllIleous collection is less valuable, in these years. Benjamin Fuller Letter Book, 1784-1787. Pertains to the business in­ terests of this insurance office-keeper. Robert Henderson Letter Book, 1784-1790. An extremely unfavorable account of Philadelphia business in these years, by a newcomer who had been in New York City during a part of the war. Stephen Higginson letters to Le Roy and Bayard, 1790-1794. Con­ cerning securities purchasing for Dutch capitalists. Morris-Hollingsworth Collection. Of enormous size. For this period, letter books covering 1780-1782, 1786-1791, relate to miscellaneous business affairs. Some notion of the extensive flour factor busi­ ness of Levi Hollingsworth may be gained from a Flour Inspection Book, 1774-1777; a Flour Ledger B; a Flour Journal, 1777-1781. Miscellaneous items were taken from the Gratz, Etting, Dreer, and Society collections, through use of a card index. In the Rhode Island Historical Society: The Moses Brown Papers. Volumes II, m, IV, covering 1775-1784, were gone through. They give but meagre information on the war-time business of Providence. (The great Brown collection is in the John Carter Brown LIbrary, but is inaccessible at present.) The Nightingale-Jenckes Papers, 1750-1800. Two miscellaneous volumes. They give little information on the war years. A Samuel Nightingale Account Book, 1765-1785, mentions some of the private and public securities he held before and during the war. BIBLIOGRAPHY Two typed copies of manuscripts: "Memoir of Welcome Arnold," by his son-in-law, Tristram Burges; "Thomas Lloyd Halsey's Account of his Part in the Revolution," in supplying the French fleet and troops. Both are invaluable primary material, but they are very short. In the Rhode Island Historical Society Manuscripts, consisting of many volumes of miscellaneous material, are scattered items of importance for which there is a eard index. In the Library of Congress: The Continental Congress Papers. Volume 192, Papers relating to the Quartermaster's Department. Only slightly used. The Ephraim Blaine Papers. Correspondence, 1774-1794. That part relating to war supplies was slightly used. Robert Morris Papers: The Financier's Official Diary, three volumes, and the Financier's Official Letter Books, volumes A, B, C, D, E were used. Robert Morris Personal Correspondence, 1777-1781. Especially valu­ able for his war business with William Bingham. Woolsey and Salmon Letter Book, 1774-1784. An excellent record of the business of a new Baltimore firm. In the Archives of the United States government: In the Adjutant General's Office: Division of Old Records. An enormous mass of documents pertaining largely to Continental army supplies. It is impossible to describe the contents of this collection, for its thousands of documents are inadequately in­ dexed. Use of it was made through a crude index. In the Treasury Department: Various records pertaining to Loan Of­ fice Certificates issued during the war, and to Funding. Part of an enormous and miscellaneous collection of early U. S. fiscal records of great value, but apparently incomplete for this period. Not used extensively for this work, but only an occasional enlightening volume. Such were books of the Pennsylvania Loan Office during the Revolution. Such were record books of certificates presented for the Domestic Loan of 1790, in Massachusetts (two volumes), in Rhode Island (one State Loan and one Domestic Loan Book), in Maryland (one volume), and one journal of accounts of the South Carolina Loan Office, 1791, 1792. (This collection was re­ cently, catalogued and removed to the National Archives.)

ll. PRINTED PRIMARY SoURCES (Adams) Familiar Letters of John Adams and His Wife Abigail Adams during the Revolution. C. F. Adams, ed. New York, 1876 --, Warren-Adams Letters, being chiefly a correspondence among John Adams, Samuel Adams and James Warren, 1743-1814. Mass. Hist. Soc. Two vola. Boston, 1917-1925 BIBLIOGRAPHY 337 American Museum, The. Mathew Carey,• printer. Phila., 1789-1792 (Aylett) .. Corra!poodence of Colonel William Aylett, Commissary Gen­ eral of Virginia." Earl G. Swem, ed. Tyler's Quart. Mag., 1 (1919- 1920) (Biddle) Autobiography of Charles Biddle. Phila., 1883 (Blanchard) The Journal of Claude Blanchard, Commissary of the French Auxiliary Army Sent to the United States During the American Rev­ olution. Thomas Balch. ed. Albany, 1876 (Bloodgood) The 8eDgenary 01' Reminiscenees of the American Rebellion. By Simeon D. Bloodgood. Albany, 1866 (Bond) .. Letters of Phineas Bond, British Consul at Philadelphia, to the Foreign Office of Great Britain, 1787, 1788, 1789." J. F. Jameson, ed. Annual Rep. Amer. Rist. Assoe., 1896, I (Boston) Recorda Commissioners Reports of the City of Boston. xvm, XXVI. Boston, 1887, 1895 . Bowdoin-Temple Papers. Pt. n, 7 ColI. Mass. Rist. Soc., VI Boston, 1907 (Breek) Recollectiona of Samuel Breek. Horace Scudder, ed. Phila., 1877 Brialot de Warville, J. P. New Travels in the United States of America. Two vola. London, 1792 (Browne) The Letter Book of James Browne of Providence, Merchant: 1735-1738. With a biographical sketch by John Carter Brown W GOds. Providence, 1929 (Chamber of Commerce) Colonial Recorda of the Chamber of Commerce of the State of New York, 1768-17M. John A. SteveDS, ed. New York, 1867 --, Earliest Arbitrstion Recorda of the Chamber of Commerce of the State of New York. New York, 1913 Chastelho:, F. J., Marquis de. Travels in North America. Two vols. Dublin, 1787 (Clinton) Public Papers of George Clinton, First Governor of New York. Hugh Hastings, ed. Ten vola. Albany and New York, 1899-1914 (Connecticut) Historical Collection ••. of the Part Sustained by Con­ necticut, During the War of the Revolution. Royal R. Hinman, ed. Hartford, 1842 --, Public Records of the State of CoDDecticut. Vol. I, pp. 585-599, con­ taios the proceeding& of a New England currency convention at Providence, Dec. 1776-Jan. 1m. Hartford, Ism (Conyngham) .. Reminiscences of David Hayfield Conyngham, 1750-1834." In Proc. and ColI. Wyoming Rist. GeneaJog. Soc., VUI (1902-1903) -, Letters and Papers Relating to the Cruises of Gustavus Conyngham. R. W. Neeser, eel. Pub. Naval Rist. Soc., VI (1915) Cose, Tench. A Brief EumiDation of Lord Sheffield's ObservatioDS on the Commerce of the United States, in Seven Numbers, With Two Sup­ plementary Notes on American manufacturea. Phila., 1792 --, A View of the United States of America•••• Phila., 1794 BIBLIOGRAPHY (Curwen) The Journal and Letters of Samuel Curwen. 4th ed. London, 1864 (Deane) Papers in Relation to the Case of Silas Deane. Seventy-Six Soc. Phila., 1855 --, Correspondence of Silas Deane, 1774-1776. ColI. Conn. Hist. Soc., II Hartford, 1870 --, Deane Papers, 1774-1790. Five vols. ColI. New York Hist. Soc., XIX­ XXIII New York, 1887-1890 --, Deane Papers: Correspondence Between Silas Deane, His Brothers and Their Business and Political Associates, 1771-1795. ColI. Conn. Hist. Soc., XXIII Hartford, 1930 Duer, William Alexander. Reminiscences of an Old Yorker. Reprinted from the American Mail, 1847. New York, 1867 --, New York As It Was, During the Latter Part of the Last Century. New York, 1849 Febiger, Christian" Extracts of a Merchant's Letters, 1784-86." Mag. Amer. Hist., VIII, Pt. I (1882) (Furman) Letters of Moore Furman, Deputy Quartermaster General of New Jersey in the Revolution. Hist. Research Comm., New Jersey Soc. Col. Dames, ed. New York, 1912 (Gilmor) "Diary of Robert Gilmor." Maryland Hist. Mag., XVII (1922) (Gratz) B. and M. Gratz. Merchants in Philadelphia, 1754-1798. W. V. Byars, ed. Jefferson City, Mo., 1916 Graydon, Alexander. Memoirs of a Life Passed Chiefly in Pennsylvania. Within the Last Sixty Years. Harrisburgh, 1811 (Great Britain) Historical View of the Commission for Enquiring into the Losses, Services, and Claims of the American Loyalists at the Close of the War between Great Britain and Her Colonies in 1783; with an Account of the Compensation Granted to Them by Parliament in 1785 and 1788. John Eardley Wilmot, ed. London, 1815 --, The Royal Commission on the Losses and Services of the American Loyalists, 1783-1785. H. E. Edgerton, ed. Oxford, 1915 --, United Empire Loyalists; Enquiry into the Losses and Services in Consequence of their Loyalty; Evidence in the Canadian. Claims. Bureau of Archives for the Province of Ontario, 2d Rep., 1904 --, Report on American Manuscripts in the Royal Instituti~n of Great Britain. The Historical Manuscripts Commission, ed. Four vols. Lon­ don, 1904-1909 (Hamilton) The Works of Alexander Hamilton. Federal ed:'Twelve vols. New York and London, 1904 --, Industrial and Commercial Correspondence of Alexander Hamilton, Anticipating his Report on Manufactures, A. H. Cole, ed. Chicago, 1928 --, "Letters From Two Business Men to Alexander Hamilton." James Wettereau, ed. J: of Econ. and Business Hist., III (1930-1931) Heath Papers. Pts. II and III, 7 CoIl. Mass. Hist. Soc., IV, V. Boston, 1904,1905 BIBLIOGRAPHY 339 (Higginson) "Letters of Stephen Higginson, 1783-1804." J. F. Jameson, ed. Annual Rep. Amer. Rist. Assoc., 1896, I Hough, F. B., ed. Proceedings of a Convention of Delegates from Several of the New England States Held at Boston, August 3-9, 1780. Albany, 1867 Huntington Papers: Correspondence of the Brothers Joshua and Jedediah Huntington During the Period of the American Revolution. ColI. Conn. Rist. Soc., xx. Hartford, 1923 Jacksons and the Lees, The. Two Generations of Massachusetts Merchants, 1765-1844. By Kenneth W. Porter, Two vols. Cambridge, 1937 Jones, Thomas. History of New York During the Revolutionary War, and of Leading Events in the Other Colonies at That Period. Two vols. New York, 1879 (Lee) The Letters of Richard Henry Lee. James C. Ballagh, ed. Two vols. New York, 1914 --, The Letters of William Lee. C. W. Ford, ed. Three vols. New York, 1891 (Marshall) Extracts from the Diary of Christopher Marshall. William Duane, ed. Albany, 1877 Martin, ABa E., ed. "American Privateers and the West India Trade, 1776-1m." Amer. Rist. Rev., XXXIX (1934) Minot, George. History of the Insurrections in Massachusetts in the Year MDCCLXXXVI.... Worcester, 1788 (Morris) The Diary and Letters of Gouverneur Morris. Ann Cary Morris, ed. Two vola. New York, 1888 --, "AddresB to the Assembly of Pennsylvania on the Bank of North America," by Gouverneur Morris. In his Life, by Jared Sparks, m -, Letters to Robert Morris. ColI. N. Y. H. 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Samuel Hazard, ed., Phila., 1853-1854 340 BIBLIOGRAPHY Pennsylvania Colonial Records, XI. XII, xm. Harrisburg, 1853-1851 (Pennsylvania) . Debates and Prooeedings of the General Assembly of Pennsylvania on the Memorial Praying a Repeal or Suspension of the Law Annulling the Charter of the Bank.. Matthew Carey, printer. PhiIa.,1786 Pettingill, Ray W .,ed. Letters from America, 1776-1779, being Letters of Brunswick, Hessian, and Waldeck Officers with the British Armies During the Revolution. Boston and New York, 1924 Pownall, Thoma.s. The Administration of the Colonies. 4th ed. London, 1768 Purviance, Roben. A Narrative of Events which Oceurred in Baltimore­ Town During the Revolutionary War. Baltimore, 1849 (Rhode Island) The Commerce of Rhode Island. Vol II, 7 Coli. Mass. Hist. Soc., II. Boston, 1915 -, Records of the State of Rhode Island and of Providence Plantations in New England, VIII, IX, X. John Russell Bartlett, ed. Providence, 1863-1865 --, Pictures of Rhode Island in the Past, IM2-1833, by Travellers and Observers. Gertrude S. KimbaIl, ed. Providence, 1900 --, "Revolutionary Correspondence, 177&-1782," in Coli. Rhode Island Hist. Soc., VI (1867) SchOpf, Johann David. Travels in the Confederation. A. J. Morrison, trans. and ed. Two vots. Phila., 1911 see, Henry, ed. "Commerce between France and the United States, 1783- 1784." Amer. Rist. ReV., XXXI (1925-1926) (Shaw) Journals of Major Samuel Shaw. Josiah Quincy, ed. Boston, 1817 Sheffield, Lord John. Observations on the Commerce of the American States. London, 1784 (Stansbury) The Loyal Verses of Joseph Stansbury and Dr. Jonathan Odell, Relating to the American Revolution. Winthrop Sargent, ed. Albany, 1860. (Stevens) B. F. Stevens' Facsimiles of Manuscripts in European Archives Relating to America,.1773-1783. Twenty-four portfOliOil. London, 1889- 1895 Sullivan, James. The Path to Riches. Boston, 1792 (Symmes) The Correspondence of John Cleves Symmes, Founder of the Miami Purcha.se. Beverley W. Bond, Jr., ed. New York, 1926 Thomas, Ebenezer S. Reminiscences of the Last Sixty-five years, Commenc­ ing with the Battle of Lexington. Two vols. Hartford, 1St(} (United States) Out-letters of the Continental Marine Committee and Board of Admirslty, 1776-1780. Charles O. Paullin, ed. Two vots. Pub. Naval Rist. Soc., IV, V. New York, 1914 --, Journals of the Continental Congress, 1774-1789. Library of Congress ed. Thirty-four vols., Washington, 1904-1937 --, Letters of Members of the Continental Congre89, 1774-1789. Edmund C. Burnett, ed. Eight vots. Washington, 1921-1936 BIBLIOGRAPHY 341 -, Diplomatic Correspondence of the American Revolution. • . . Jared Sparb, ed. Twelve vols. New York, 1829-1830 -, Revolutionary Diplomatic Correspondence of the United States. Francia Wharton, eel. Biz vols. Wa.shington, 1889 (Vqinia) Travels in Virginia in Revolutionary Times. A. J. Morrison, eel. Lynclibur&, Va., 1922 -, Official LetU!J'll of Governors of the State of Virginia. A. R. Me> Dwaine, eel. Vola. I-In. Richmond, 1926-1929 -, Joumals of the Council of the State of Virginia. R. H. McDwaine, eel. Vols.l, n. Richmond, 1931, 1932 Watson, EIkanah. Men and Times of the Revolution. Winslow C. Watson, ed. New York, 1856 -, History of the Rise, Progress, and Existing Conditions of the Western Canals in the State of New York. .•• Albany, 1820 (Webb) Correspondence and Joumals of Samuel Blachley Webb. W. C. Ford, ed. Three yols. New York, 1893 Webster, Pelatiah. Political Essays on the Nature and Operation of Money, Public Ymances.. ••• Phila., 1791 Willing LetU!J'll and Papers. Thomas Willing Balch, ed. Phila., 1922 Worth, Gorham A. Random Recollections of Albany, 1800-10. Albany, llH9

In. BloaaAPIIlCAL MATBIU&L. PanuaT AND 8BcoNlWlT Adams, Charlee Francis. • Memoir of Peter Chardon Brooks." New &g. lIist.. Genealor;. ~ .. vm. IX. (ISM, 1855) Amary, Thomas. Life of James Sullivan with Selections from His Writings. Two vols. Boeton, 1859 Bigelow, B. M .• AaroIl Lopea: Colonial Men:hant of Newport." New &g. Quart., IV (1931) Binn.y, Horace. Leaden of the Old Bar at Philadelphia. Phila., 1859 Boudinol, J. J. Life, Public Serviees, Addresses and Letters of Elia.a BoudinoL Two vola. Boston, 1896 Bulfinch, Ellen 8. Life and Letters of Charles Bulfinch, Architect. Boston and New York, 1895 Campbell, Hugh C. History of the Friendly Sons of St. Patrick and of the Hibemian Soeiety for the Relief of Emigrants from Ireland. With Bior;raphical Sketebes.. Phila., 1892 Cutler, William Parker, and Julia Perkins.. Life, Joumals and Correspond­ mcc of Rev. MIUIIIII!Ieh Cutler•••• Two vols. Cincinnati, 1888 Dexter, Franklin Bowditch. Bior;raphical Sketches of Graduates of Yale ~, with Annale of the College Histary. Biz vols. New York, 1885-1912 Dictionary of American Biccraphy. AIlen Johnsaa. Dumas MaIone, eda. Twenty_e vola. New York, 1928-1936 Drake, Francia 8. Life and Conespondence of Hem,. KnOL Boeton, 1873 342 BIBLIOGRAPHY Driver, Carl S. John Sevier, Pioneer of the Old Southwest. Chapel Hill, N. C., 1932 . Einstein, Lewis. Divided Loyalties. London, 1933 Ford, Emily Ellsworth Fowler. Notes on the Life of Noah Webster. Two vols. New York, 1912 Foster, William Eaton. "Stephen Hopkins, a Rhode Island Statesman." Rhode Island Hist. Tracts, no. 1.9. Providence, 1884 , Gipson, Lawrence H. Jared Ingersoll: a Study in American Loyalism in Relation to British Colonial Government. New Haven, 1920 Gray, Edward. William Gray of Salem, Merchant. Boston and New York, 1914 Hall, Rev. William." John Delafield, the Englishman." New York Genealog. Biog. Reg., XVII (1886) Hamilton, Allen McLane. Intimate Life of Alexander Hamilton. London, 1910 Hart, Charles Henry. "Colonel Robert Lettis Hooper, Deputy Quarter­ Master General in the Contin(!ntal Army and Vice-President of New Jersey." Penna. Mag. Hist. Biog., XXXVI (1912) Higginson, Thomas Wentworth. Life and Times of Stephen Higginson. Boston, 1907 Hill, Hamilton A. " William Phillips and William Phillips, father and son." New Eng. Hist. Genealog. Reg., XXXIX (1885) Hough, Franklin B. "Notice of Peter Penet." Trans. Albany Instit. Arts and Sciences (1866) , ·Howard, James Leland. Seth Harding, Mariner: A Naval Picture of the Revolution. New Haven, 1930 ' 'Hunt, Charles Haven. Life of Edward Livingston. New York, 1864 Jones, Augustine. Moses Brown, His Life and Services. Providence, 1892. 'Jones, Edward Alfred. The Loyalists of Massachusetts. London, 1930 Keith, Charles Penrose. Provincial Councillors of Pennsylvania.... Phila., 1883 King, Charles R. Life and Correspondence of Rufus King. Six vols. New York, 1894-1900 Kite, Elizabeth S. " Conrad Alexandre Gerard." Rec. Amer. Cath. Hist. Soc., XXXII, XXXIII (1921, 1922) Kohler, Max. Haym Salomon, the Patriot Broker of the Revolution, his Real Achievements and their Exaggeration. New York, 1931 Konkle, Burton Alva. Benjamin Chew, 1722-1810.... Phila., 1932 '--,Life and Times of Thomas Smith, 1745-1809, a Pennsylvania Member of the Continental Congress. Phila., 1904 --, George Bryan and the Constitution of Pennsylvania, 1731-1791. Phila., 1922 Lee, R. H. Life of Arthur Lee. Two vols. Boston, 1829 'Lodge, Henry Cabot. Life and Letters of George Cabot. Boston, 1878. Lossing, Benson J. The Life and Times of Philip Schuyler. Two vols. New York, 1872-1873 BIBLIOGRAPHY 343 MacBean, William M. Biographical Register of the Saint Andrews Society of the State of New York. Two vola. New York, 1922, 1925

Martin, I. J. U Thomas FitzSimons." Amer. Cath. Hist. Soc. Researches, no. 5 (1888) Mather, Frederick Gregory. Refugees of 1776 from Long Island to Con­ necticut. Albany, 1913 Minard, John Stearns. "Intimate Friend of Old Celebrities in America and Europe. The Life Story of John Church ...." J. of Amer. Hist., II (1908) Morison, Samuel E. Life and Letters of Harrison Gray Otis. Two vola. Boston, 1913 Oberholtzer, Ellis Paxson. Robert Morris: Patriot and Financier. New York, 1903 Parsons, Theophilus. Memoir of Theophilus Parsons, Chief Justice of the Supreme Judicial Court of Massachusetts, with Notices of Some of His Contemporaries. Boston, 1859 Pickering, 0., and Upham, C. W. Life of Timothy Pickering. Four vola. Boston, 1867-1873 Porter, Kenneth W. John Jacob Astor, Business Man. Two vola. Cambridge, 1931 Race, HeJiry. Historico-genealogical Sketch of Col. Thomas Lowrey and Esther Fleming. Flemington, New Jersey, 1892 Rawle, William. Sketch of the Life of Thomas MifBin. Memoirs Penna. Hist. Soc., II (1830) Read, W. T. Life and Correspondence of George Read. Phila., 1870 Reed, William B. Life and Correspondence of Joseph Reed .... Two vola. Phila., 1847 Rogers, Mary D. R. " Reminiscences of Alexander Robertson; merchant of New York, 1751-1816." Typed manuscript, in N. Y. H. S. Rowland, Kate M. Life of Charles Carroll of Carrollton, 1733-1832, with his Correspondence and Public Papers. Two vola. New York and London, 1898 RUlllell, Charles E., Haym Salomon and the Revolution., New York. 1930 Sabine, Lorenzo. Biographical Sketches of the Loyalists of the American Revolution. Two vola., Boston, 1864 Savelle, Max. George Morgan, Colony Builder. New York, 1932 Schuyler, George W. Colonial New York. Philip Schuyler and His Family. Two vola. N ew York, 1885 Scoville, Joseph. Old Merchants of New York City, by Walter Barrett, Clerk•... Five vola. N ew York, 1885 Simpson, Henry. Lives of Eminent Philadelphisns. Phila., 1859 Sparks, Jared. Life and Letters of Gouverneur Morris. 'Three vola. Boston, 1832 Steiner, Bernard C. Life and Correspondence of James McHenry. Cleve­ land, 1907 344 BIBLIOGRAPHY Stark, James Henry. The Loyalists of Massachusetts, and the Other Side of the American Revolution. Boston, 1910 Stevens, John A. Colonial Records of the Chamber of Commerce of the State of New York, 1768-1784. New York, 1867 (The second half of this is sometimes referred to as a separate volume, Colonial New York, Sketches, Biographical and Historical, 1768-1784.) Sumner, William G. The Financier ,and the Finances of the American Revolution. ,Two vols. New York, 1891 Tilghman, Oswald. Memoir of Lt. Col. Tench Tilghman. Albany, 1876 Todd, Charles Burr. Life and Letters of Joel Barlow. New York, 1886 Toner, Joseph M. The Medical Men of the Revolution. Phila., 1876 Trumbull, Jonathan. Jonathan Trumbull, Governor of Connecticut, 1769- 1784. Boston, 1919 Turnbull, Archibald Douglas. John Stevens, an American Record. London, 1928 --, William Turnbull, 1751-1822. Binghampton, New York, 1933 Van Schaack, Henry Cruger. Life oj Peter Van Schaack..•. New York, 1842 --, Memoirs of the Life of Henry Van Schaack, Embracing Selections From His Correspondence ...• Chicago, 1892 Volwiler, Albert T. George Croghan and the Westward Movement, 1741- 1782. Cleveland, 1926 Wallace, David D. Life of Henry Laurens. New York, 1915 Ward, John. Memoir of Lieutenant-Colonel Samuel Ward. New York, 1875 White, George Savage. Memoir of Samuel Slater, the Father of American Manufactures. Phila., 1836 Wilson, James Grant. "A Memorial of Col. John Bayard." Proc. New Jersey Hist. Soc., ser. 2, V (1877) Winfield, Charles H. "Life and Public Services of John Cleves Symmes." Proc. New Jersey Hist. Soc., ser. 2, V (1877) Winslow, Stephen N. Biographies of Successful Philadelphia Merchants. Phila., 1864

IV. SECONDARY WORKS STATE AND TOWN HISTORIES Abernethy, Thomas P. From Frontier to Plantation in Tennessee. Chapel Hill, 1932 Alexander, DeAlva Stanwood. Political History of the State of New York. Three vols. New York, 1906 Arnold, Samuel G. History of the State of Rhode Island and Providence Plantations. Two vols. New York, 1860 Atwater, Edwald E. History of the City of New Haven. New York, 1887 Bayles, Richard M., ed. History of Providence County of Rhode Island. Two vols. New York, 1891 Bolles, Albert S. Pennsylvania, Province and State. Phila., 1899 BIBLIOGRAPHY 345 Brewster, C. W. Rambles Around Old Portsmouth. Two vola. Portsmouth, 1859-1869 Caulkioa, Fraueea M. History of N onrich, Connecticut, to 1866. Hartford, 1866 -. IliIItory of New London, Connecticut. New London, 1852 Chapin, C. W. Sketches of • . • Old Springfield. Springfield, 1893 Currier, John S ... QuId Newbury": Historical and Biographical Sketches. Boston, 1896 Dorr, Henry C ... The Planting and Growth of Providence." Rhode Island Ifiat. T1'8d8, DO. 15. Providence, 1882 Green, Maaon Arnold... Springfield," 1636-1886. Springfield, 1888 Griffith, J. W. Annals of Baltimore. Baltimore, 182t Hall, Clayton C .. ed. Baltimore: Ita History and Ita People. Three vots. New York, 1912 BaI1, E. ADcien~ Historical Records of Norwalk, Connecticut. Norwalk, 1865 Hanson, Willia T .. Jr• .A. History of Schenectady During the Revolution••.• Schenect.dy, 1918 Harriaon, Fairfax. Landmarks of Old Prince William: a Study of Origins in Northern Virginia. Two vola. Richmond, 1924 Hatfield, Edwin F. History of Elisabeth, New Jersey. New York, 1868 Hough, Franklin B. History of LewiB County, State of New York. Albany, 1860 Howell, G. R.. and Tenney, J. History of the County of Albany, New York, from 1609 to 1888. New York, 1886 Hunnewell, James F. A Century of Town Life: .A. History of Charlestown, MIl8llaChWietta, 1775-1887. Boston, 1888 Judd, Sylvester. History of Badley, Including Early History of Hatfield. South Badley, Amherst and Granby, MassachWietta. Springfield, 1905 Kilbourne, Payne K. A Biographical History of the County of Litchfield, Connecticut. N~w York, 1851 -. Sketches and Chronicles of the Town of Litchfield, Connecticut. New York, 1859 Kimball, Gertrude 8. Providence in Colonial Times. Boston and New York, 1912 Livermore, Charles H. The Republic of New Haven, a History of Municipal Evolution. Baltimore, 1886 Lodge, Henry Cabot. Boston. New York, 1892 Love, William D. Colonial History of Hartford. Hartford, 191' Marshall, Benjamin T _ ed. Modern History of New London County, Connecticut. Three vola. New York, 1922 Maaon, George Champlin. Reminiscences of Newport. Newport, IBM May, Ralph. Early Portsmouth History. Boston, 1926 OberbolUer, E1Iia Pauon. Philadelphia: a History of the City and of ita People. Four vola. Phila .. 1912 BIBLIOGRAPHY Paige, Lucius R. History of Cambridge, Massachusetts, 1630-1877, with a Genealogical Register. Boston, 1877 .Pearson, Jonathan. History of the Schenectady Patent in Dutch and English Times. Albany, 1883 Powell, Mary G. The History of Old Alexandria, Virginia. Richmond, 1928 Raum, John O. The History of New Jersey. Two vols. Phila., 1877 Riley, Elihu S. "The Ancient City," a History of Annapolis in Maryland. Annapolis, 1887 Rockey, J. L. History of New Haven County, Connecticut. New York, 1892 Scharf, John Thomas. History of Maryland from the Earliest Period to the Present Day. Three vols. Baltimore, 1879 --, The Chronicles of Baltimore: Being a Complete History of "Baltimore Town" and Baltimore City. Baltimore, 1874 --, History of Baltimore City and County. Phila., 1881 Scharf, J. T., and Westcott, Thompson. History of Philadelphia. Three vols. Phila., 1884 .Sioussat, Annie M. Old Baltimore. New York, 1931 Stackpole, Everett S., ed. History of New Hampshire. Five vols. New York, 1916 Staples, William R. Annals of the Town of Providence . . . to 1832. Providence, 1843 Stiles, Henry Reed. History and Genealogies of Ancient Windsor, Con­ necticut. Two voIS. Hartford, 1891-1892 --, ... History of the County of Kings and the City of Brooklyn, N. Y., from 1683 to 1884. Two vols. New York, 1884 Stokes, Isaac N. P., ed. The Iconography of Manhattan Island, 1498-1909. Six vols. New York, 1915-1928 Trenton Historical Society. A History of Trenton, 1679-1929. Two vols. Princeton, 1929 Trumbull, J. Hammond, ed. The Memorial History of Hartford County, Connecticut, 1633-1884. Two vols. Boston, 1886 Watson, J. F. Annals of Philadelphia, Pennsylvania, in the Olden Time. Three vols. Phila., 1898 . Weise, Arthur James. Troy's One Hundred Years. Troy, N. Y., 1891 Wells, Daniel W., and R. F. A History of Hatfield, Massachusetts. Spring­ field, 1910 Westcott, Thompson. "History of Philadelphia" in the Philadelphia Sun­ day Dispatch, 1870-1874 White, Alain C., compiler. History of the Town of Litchfield, Connecticut, 1720-1920. Litchfield, 1920 Wilson, James Grant. Memorial History of the City of New York. Four vols. New York, 1892-1893 Winsor, Justin, ed. The Memorial History of Boston. Four vols. Boston, 1880-1881 BIBLIOGRAPHY 347

V. SflCONDABY WORD, MISCELLANIIOUS .Abernethy, Thom&8 P. "Commercial Activities of Silas Deane in France." Amer. Rist. ReV., XXXIX. (1934) --, Western Lands and The American Revolution. New York, 1937 Allen, Gardner Weld. Massachusetts Privateers of the Revolution. Mass. Rist. Soc. ColI., LXXVII. Boston, 1927 Allen, William. "Bingham Land." Maine Rist. Soc. ColI., VIT. (1876) Ames, Susie M. " A Typical Virginia Businesa Man of the Revolutionary Era." J. of Econ. and Business Rist., m. (1931) Andrews, Charles M. " Boston Merchants and the Non-Importation. Move­ ment." Col. Soc. Mass. Pub., XIX (1918) Bacon-Foster, Mrs. Cora. Early Chapters in the Development of the Potomac Route to the West. Washington, 1912 Bagnall, William B. Textile Industries of the United States. One vol. Cambridge, 1893 Bailey, E. A. U Influences Toward Radicalism in Connecticut." Smith ColI. Studies in Rist., V (1920) Baldwin, Simeon E. "The New Haven Convention of 1778." New Haven Col. Rist. Soc. Papers, m (1882) --, "Private Corporations, 1701-1901," in Two Centuries' Growth of American Law. New York, 1901 --, "Freedom of Incorporation," Chap. VI in Modem Political institu­ tions. Boston, 1898 --, "American Businesa Corporations before 1789." Amer. Rist. Rev., vm (1903) Bancroft, George. History of the Formation of the Constitution of the United States of America. Two vols. 3d ed. New York, 1883 Barck, Oscar Theodore. New York City during the War for Independence. New York, 1931 Batchelder, Samuel F. Bits of Cambridge History. Cambridge, 1930 Bates, Frank Greene. Rhode Island and the Formation of the Union. New York, 1898 Bayley, Rafael A. The National Loans of the United States, 1776 to 1880. Washington, 2d ed., 1882 Beard, Charles A. An Economic Interpretation of the Constitution of the United States. New York, 1913 --, Economic Origins of Jeffersonian Democracy.. New York, 1915 Bell, Herbert C. "The West India Trade Before the American Revolu­ tion." Amer. Rist. Rev., :xxn (1916-1917) Benson, Adolph B. Sweden and the American Revolution. New Haven,l926 Bining, Arthur Cecil. British Regulation of the Colonial Iron Industry. Phila.. 1933 Bishop, James L. A History of American Manufactures. Three vols. Phila., 1868 BIBLIOGRAPHY

Bond, Beverley W., Jr. If State Government in Maryland, 1777-1781." Johns Hopkins Studies in Hist. and Pol. Sci., XXIII (1905) Bonney, Mrs. Catherine V. R. A Legacy of Historical Gleanings. Two vols. Albany, 1875 Boogher's Repository. Horace W. Smith, ed. Two vols. Phila., 1883 Boyd, Julian P. If New State Movements in New York and Pennsylvania." New York Hist. (N. Y. Hist. Assoc. Pub.), XII (1931) --, If Connecticut's Experiment in Expansion: the Susquehanna Company, 1753-1803." J. of Econ. and Business Hist., IV (1931-1932) Brockett, F. L. The Lodge of Washington. With Biographical Sketches of Members. Alexandria. 1886 Brown, Abram E. John Hancock, His Book. Boston, 1898 Brown, Margaret L. If William Bingham, Eighteenth Century Magnate." Penna. Mag. Hist. Biog., LXI (1937) .Bryan, A. C. If History of State Banking in Maryland." Johns Hopkins Studies in Hist. and Pol. Sci., XVII (1899) Bullock, Charles J. If Finances of the.United States from 1775 to 1789, with Special Reference to the Budget." Bul. Univ. Wisc., Hist. Ser., I (1897) --, Essays on the Monetary History of the United States. New York, 1900 Burnett, Edmund C. If The Continental Congress and Agricultural Sup­ plies." Agricultural Hist., II (1928) Buron, Edmond. If Statistics on Franco-American Trade, 1778-1806." J. of Econ. and Business Hist., IV, (1931-1932) Callender, Guy S. If The Early Transportation and Banking Enterprises of the States in relation to the Growth of Corporations." Quart. J. of Econ., XVII (1903) Channing, Edward. If Commerce. During the Revolutionary Epoch." Mass. Hist. Soc. Proc., XLIV (1911) --, A History of the United States. Vol. III. Six voIs. New York, 1905- 1930 Chase, Henry R. Owners and Occupants of Lots, Houses and Shops in the Town of Providence, Rhode Island in 1798 .•. and 1759 .•. Providence, 1914 Civic Club of East Baltimore. Fell's Point Bi-centennial Jubilee. Baltimore, 1930 Clark, Allen C. Greenleaf and Law in the Federal City. Washington, 1901 Clark, Washington A. A History of the Banking Institutions Organued in South Carolina, Prior to 1860. Columbia, S. C., 1922 Clark, Victor S. History of Manufactures in the United States. Two voIs. Washington, 1916 Cole, Arthur H. The American Wool Manufacture. Two vols. Cambridge, 1926 1 Collier, Thomas S. If The Revolutionary Privateers of Connecticut.••. " New London Co. Hist. Soc. Rec. and Papers, I (1893) Commons, John R., ed. History of Labour in the United States. Two vols. New York, 1918 BIBLIOGRAPHY 349 Cochran, Thomas C. New York in the Confederation. New York, 1923 Crawford, Walter Freeman. a Commerce of Rhode Island with Southern and Continental Colonies in the Eighteenth Century." Rhode Island Hist. Soc. Coll .. XIV (1921) Crowell, Benjamin. Spirit of '76 in Rhode Island. Boston, 1850 Davis, Andrew M. "The Limitation of Prices in Massachusetts, 1776-1779." Col. Soc. MaIII. Pub.. X (1905) --, "Lawful Money, 1778 and 1779." New Eng. Hist. Genealog. Soc. Reg., LVII (1903)

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Abernethy, T. P., economic inter- American Jewish Historical Society, pretation, 7 acknowledgment to, 9 .Active, 63 American Revolution, development Adam, Robert, tobacco, 174 of economy, 7,30,44-48; business Adams, Abigail, on antagonism to and politics, 14; gainful spirit, 30, merchants, 203; on price-fixing, 33-35, 50; luxury, 35, 53; manu­ 216n. facture, 53; agriculture, 54; priva­ Adams, J. T., on war-time manufac­ teering, 64-66, 78; radicals arid ture,238n. conservatives, 195; social effect, Adams, John, on capitalists, 20; on loyalists, 213-215, 218-223, 323; war-time Baltimore, 165; and economic effect, 237, 238. See alBa radical finance, 203; on war-time Commerce; Continental Army; law practice, 231 n. Continental Congress; Finance; Adams, Richard, army supplies, 173 Loyalists Adams, Samuel, radical politica, 196, Amory, Jonathan, war-time trade, 197; retirement, 207; on conserva­ profit, 32, 51, 52, 59; on luxury, tives and office, 208; on postbel­ 35 n.; legal tender, 215 n. lum luxury, 240 Amory, R. G., war-time rise, 231 Adams family, of Virginia, trade, Amory family, war-time trade, 58; 176, 177 loyalism, survival, 219; family Agriculture, war-time conditions, 54 connections, and bank, 295, 296; Albany, N. Y., army-tlUpply center, manufacture, 313 group, Schuyler, 101-1OS, 114, 128; Amsterdam, war-time trade, British loyalism, 103; war growth, 233; goods, 32, 34, 39, 59, 61, 119 pOBtbellum growth, 241, 302; bank, Ancram iron-works, 19 origins, 302, 303; manufacture, Andover, N. J., iron-works, 163 312. See alBa Parker, Daniel, and Andrews, Benjamin. See Otis and Co. Andrews Alexander, William, iron-works, Andrews, John, manufacture, 313 164n. Annapolis, Md., colonial trade, 17; Alexander, William (Lord Stirling), war-time trade, 37 French and Indian War supplies, Appleton, Nathaniel, French sup­ 15 n.; Duer', relation and army plies, 58; insurance, bank, 296 n. contract, 115 Alexandria, Va., colonial trade, 17; Apthorp, Charles, French and Indian war-time trade, progress, 63, 164, War supplies, 15 n. 173-176, 179, 235; Baltimore, 172; Apthorp family, distilling, 18 charter, 267; postbellum advance, Arcularius, Philip, bank, 327 240; bank, 304 Arden, Thomas and J., bank, 327 Allen, Zachariah, trade, 77 Arms, importation, 62, 71; manu- Allen family, of Philadelphia, iron­ facture, 73 works, 19; wealth and loyaliam, Arnold, Benedict, profiteering, 34; 218 Duer, 109; Philadelphia rule, 150, .Alliance, 256 156, 200, 200 n . Almy, Brown and Slater, cotton fac­ Arnold, Thomas, brother, 75; salt­ tory, 313 n. works, 76 AlllOp, John, Secret Committee, 130; Arnold, Welcome, army supplies, war attitude, 190,222; King, 236; 72; war-time trade, profit, 75, 77, iron-works, 312; bank, 327 228; China trade, 256; public se­ AlllOp family, colonial connections, curities, 281, 282; bank, 300, 301; 13; banks, 294 Ohio Company, 318 American Antiquarian Society, ac­ Arnold family, and Browns, 71; to knowledgment to, 9 Providence, 233 357 358 INDEX Articles of Confederation, ratifica­ Bank of Pennsylvania, influence, 287 tion, 207 Bank of United States, personnel, Ashton, Jacob, bank, 300 297, 298; origins, 298 n.; and local Aspinwall, Gilbert, inland naviga­ banks, 299 tion, 308 Banking, .colonial private, 22; lack Aspinwall family, bank, 294 of colonial commercia~, 25; and Associated Manufactoring Iron Co., postbellum bills of exchange, 242; 287, 312 consolidation of stockholding, Astor, J. J., stock exchange, 295 260; and stronger Union, 268; first Atkinson, Francis, bank, 327 series, 287-296; second series, in­ Atwater, David, conservative, 265 fluences, 296, 299; in smaller Atwood, T. B., bank, 327 places, 300-305; social basis, 305. Austin, David, conservative, 265 See also preceding titles; Massa­ Austin, J. L., French trade, 39 chusetts Bank Aylett, William, Morris, 138 Bankruptcy, postbellum situation, 243,257 Babcock, Adam, insurance, bank, Banyar, Goldsbrow, land specula­ 296n. tion, 18; loyalist, survival, 219; Bache, Richard, as official, 156 bank, 303; inland navigation, 307 Bache, Theophylact, loyalism, trade, Barclay, John, to Philadelphia, 233 survival, 156, 190, 221, 222; bank" Bard, Samuel, bank, 327 327 Barrell, Joseph, war-time trade, pro­ Ba.che family, rise, 223 fit, 61, 119, 228; foreign exchange, Backhouse, William, bank, 327 66; privateering, 66; insurance, 69, Bagehot, Walter, on speculative in- 70 n.; Webbs, 85; French sup­ ducements, 30 plies, 86; Albany relations, 102; Bahamas, war-time trade, 63 Duer, 121,277; loyalist estate, 224; Bailey, Joseph, acknowledgment to, 8 Pacific trade, 253, 256; Boston charter, 267; on Federalism, 268; Baker, William, public securities, 280 public securities, 270, 273, 281 ; Ball, Joseph, iron-works, 163 banks, 295, 298, 299; internal im­ Balloon, early ascension in Paris, 95 provements, 308, 309 Baltimore, colonial trade, 17; war- Barrell family, southern securities, time activity, growth, 37, 164-167, 283 179, 234; privateering, 39, 166, 172 ; Bayard, Samuel, Jr., bank, 327 marine insurance, 46 n.; Morris, Bayard, William, Jr., war-time trade, 140; Philadelphia, 166; manufac­ 188 ture, 166, 310, 311; flour, West Bayard, William and Robert, British Indies trade, 167-170; tobacco, 170 ; official affairs, 188 army supplies, merchants' ad­ Bayard family, loyalism, exile, 221 vances, 171, 172, 209; Alexandria, Beall, Samuel, Wadsworth, 93 ; 172; banks, origins, 292, 303 tobacco, Morris, 139 Bank of England, colonial invest­ Beard, C. A., economic interpreta- ment in funds, 22; speculation and tion, 7; acknowledgment to, 8 founding, 31 Beaumarchais. See Hortalez Bank of Maryland, origins, 303 Beef contracts, 116, 120, 124 Bank of New York, discounts, 242; Beekman, James;·bank, 327 elements of control, changes, 260, Bell, William, war-time trade, 149, 293-295,327-329; origins, 292; and 161; on postbellum trade, 249 n. Bank of United States, 299 Benson, Egbert, inspection of British Bank of North America, personnel, embarkations, 122 44, 95, 290, 291; cooperative sup­ Berckel, P. J. van, on West Indies port, 208, 289; discounts, 242 ; postbellum trade, 247; bank, 291, partiality, 259; origins, 287, 288, 294 324, 324 n. ; political influence, Berkshire, Mass., army supplies, 105 288; stock and bill trading, 289; Bermuda, American trade, 177 and Bank of United States, 299 Bernard, Sir John, loans, 21 INDEX 359 Berrien and Hunt, bank, 327 Bleecker family, group, pOBtbellum Berry, John, bank, 327 survival,223 Beverly, M888., privateering, 44, 65; Blowers, Sampson, wife's estate, trade, 51; manufacture, 313 loaDS, 21 Biddle, Charles, on sectionalism, 27; Bogert, C. J., bank, 327 war-time activity, 159; on paper Bond, Abraham, bank, 327 money, 215 Bond, Phineas, loans, 20 Biddle, Clement, and Co~ failure, Bonds. See Public debt 258 Bordeaux, France, war-time trade, Bilbao, Spain, war-time trade, 31, 37, 133, 142 59, 60, 62, 137 Borland family, wealth and loyal­ Billa of exchange, colonial currency, ism, 218 24, 27; war-time dealing, 33, 161; Boston, intercolonial trade, 15; co­ foreign war-time, French supplies, lonial manufacture, 18; insurance, 52, 66-69, 78, 92, 94, 112, 113, 120; colonial and war-time, 23, 45, 69- Morris' use,I45,I46; Salomon and 71; trade with the enemy, 32; brokerage, 157; rate in New York luxury, 35, 36; army supplies, 54- City, 186; pOBtbellum conditions, 58; private war-time trade, 58-62; 242; rank of foreign, with domestic exchange, 66-69, 120; loyalists, notes, 268; influence of war-time war effect, 219; regulatory efforts, discount, 287 204; convention, 206; social Bingham, William, Dutch trade, 39; changes, 214; profiteering, 227, public business, agency, Secret 228; war-time growth, 232; bridges Committee, 47, 56, 131; Deane­ and regional economy, 241; post­ Morris group, 131, 133; prizes, bellum trade, 248, 250; slave-trade, 135n.; Gilmor, 140; origin, 141; 250; Pacific-China trade, 256; wal'-time activities with Morris, charter movement, 267; banks, 141-143; privateering, 143, .160; 295, 296, 299. See also Massa- profits, 143, 144, 230, 230 n.; loan chusetts . certificates, 143; other interests, Boudinot, Elias, loans, 20; on loan 144, 169, 174; on flour trade, 150; certificates, 42; Duer, 109; on war­ tobacco, 252; continental impost, time Lancaster, 149; prisoners' 267; on public debt and interest supplies, 171; Miami land com­ rates, 270; Duer, 277; banks, 290, pany, 319 298; on banks and land value, Bourbon, 147 299 n.; internal improvements, Bowdoin, James, loans, 21; foreign 307; iron-works, 311; land specu­ bills, 67; tobacco, 177; on social lation, 316, 316 n. changes, ·214; governorship and Bingham and Inglis, Gilmor, 166 business, 248 n.; bank, 296 Bird, Mark, mast contract, 135 ; Bowen,. Ephraim, Jr., army sup­ Pennsylvania politics, 199 plies, 72, 83; private interests, 72 Blackwell family, war-time losses, Bowen, Jabez, iron-works, 19; pub­ 216 lic securities, 282; bank, 300; Blaine, Ephraim, Wadsworth, 84; steam engine, 310 flour, 153, 154; privateering, 160 Bowen family, and Browns, 71 Blair family, of Boston, trade, 170 Bowly, Daniel, privateering, 172; Blanchard, Claude, on French sup- public securities, 282. See also ply graft, 91 Lux and Bowly Blane, Thomas, bank, 327 Bowly family, trade, 170; banks, 304 Blankets, war-time trade, 62, 142 Bowne, Robert, bank, 293, 327 Bleecker, A. L., bank, 327 Bowne, Thomas, bank, 327 Bleecker, Barent, inland navigation, Boyd, William, broker, 273 307 Bradford, John, charges against Bleecker, Leonard, Duer specula­ Langdon, 64; marine agent, graft, tions, 275; public securities, 283; 65; Morris, 137 stock exchange, 295 Bradstreet, John, bank funds, 22 INDEX Braxton, Carter, on trade with the Brown, Samuel, insurance, 700..; enemy, 31; Secret Committee Pacific-China trade, 256 busine!!8, 131 ; Morris, tobacco, Brown, William, army Bupplies, 57 138, 139, 176; privateering, 160 Brown family, iron-works, 19; Breck, Samuel, trade with the candles, 23; connections, 71 ; enemy, 34; army supplies, 56; for­ Secret Committee busine!!8, 131; eign bills, 68; French supplies, 78; bank,300 Parker, 114 0..; loyalist estates, Browne, James, busine!!8 instinct, 28 224; profits, 228; banks, 290, 295, Hruce, Robert, bank, 327 296: insurance, 296 0..: inland navi­ Buchanan, James, bank, 327 gation, 308: manufacture, 313. Buchanan, Thomas, New York City See alBa next title war-time trade, 184, 187; loyalism, Breck and Green, French supplies, survival, 221; bank, 293, 327 57: prizes, foreign bills, 58 Buchanan and Blaine, trade, 171 Breed, William, French supplies, 58 Buchanan, Hunter and Co., bank, 327 Brereton, Thomas, insurance, 46 n. Bucks County, Pa., iron-works, 19 Brevoort, Abraham, bank, 327 Budden, James, loyalist estates, 226 Bridges, Ma!!8achusetts postbeUum Bulfinch, Charles, Pacific-Chin& toll, 241, 309; joint-stock pro­ trade, 256 motion, 306 Bull, Caleb, Jr., public securities, 271 Brinley family, distilling, 19: loyal­ Bull, Hezekiah, manufacture, 310 ism, exile, 220 Bull family, war activities, 100 British debts, and depreciated cur­ Burges, Tristram, 00. Arnold, 75 n. rency, 165: war-time interest, 216 Burke, Thomas, on profiteering, Brokerage, Philadelphia, 157, 163; 226n. public securities, 273 Burnett, E. C., on politic8 in Con­ Bromfield, John, insurance, 70 n. gre!!8, 195 D. Bromfield family, agent abroad, 39, Burr, Aaron, as lawyer, 221; bank, 294 61; connections, and bank, 295 Burr, Josiah, manufacture, 314 Broome, John, bank, 327 Hurton Historical Collection, ac­ Broome, Samuel, war-time interests, knowledgment to, 9 191; bank, 327 Busine!!8. See Commerce; Finanee; Broome and Platt, to Hartford, 242; Manufacture bank,327 Butler, Norman, Wadsworth and Brown, James, sons, 71 Carter, 100; broker, 273 Brown, John, on war-time profiteer­ Butler, Samuel, public securities, 282 ing, 34; brothers, 71;. army sup­ Butler and Matthew8, Spanish trade, plies, 71; on war-time Providence, 60, 119 72: internal trade, 74; foreign Byles, Mather[21, loan, 21 trade, 75, 76; French supplies, 77; Byvanck,John,bank,327 profits, 229, 233; China trade, 256; Byvanck, Peter, bank, 327 continental impost, 267; public securities, 281: canal, 309; land Cabot, Andrew, trade, 63; insurance, speculation, 318 70; loyalist e8tates, 224 Brown, Joseph, brothers, 71 Cabot, Elizabeth, estate, loans, 21 Brown, Moses,loyalism,34 n.: French Cabot, Francis, trade, 62; bank, 260; supplies, 58; brothers, 71; trade public securities, 281 with the enemy, 73; candle mono­ Cabot, George, trade, 62, 63, 156; poly, 76; salt-works, 76: retire­ state constitution, 202; bank, 298 ment, 76; loans and depreciation, Cabot, John, trade, 62 215; profits, 233; manufacture, 313 Cabot, William, trade with the Brown, Nicholas, foreign trade, 39, enemy, 32 76; brothers, 71; army supplies, Cabot family, privateering, 65; in­ 71; candle monopoly, 76; priva­ surance, 70; loyalist estate, 224; teering, 78; public securities, 281- profi ts, 228; to Boston, 232; bridge, 283 241, 309; Baltio trade, 253; Shays' INDEX Rebellion, 2M n.; connectiollB, Cbaloner and White, trade, 150, 151, banka, 295, 296, 300; manufacture, 168 n. ; flour, 153 313 Champion, Epaphroditus, locality, CadiJr, Spain, war-Wne trade, 39, 59, 81; Wadsworth, 9On.; land specu­ 60,92, 119, 174 lation, 97 CadwaJader family, conneetiollB, Champion, Henry, army supplies, 127n., 290 81; Phelps, 96 Caldwell, Andrew, on public eecuri­ Champion family, army supplies, 120 ties, 274 n. Champlin, Christopher, French sup­ Caldwell, James. army 8IIpplies,I05; plies, 78 manufacture, 302, 311; land specu­ Champlin, George, tobacco, 177 Iation, 317 Channing, Edward, economic inter­ Caldwell, Jamee and Andrew, trade, pretation, 7 156; army 8IIpplies, 156 n. Chapin, Israel, locality, 81; Phelps, Caldwell, John, war activities, 99, 96; land speculation, 97, 320 100; Parker, 114 n.; postbellum Charles River, bridge, 241, 309 trade, 250; manufacture, 314 Charleston, S. C., insurance, 45; s0- Caldwell, Samuel, 88 official, 156; cial changes, 214; charter, 267; loyalist estate, 226 bank,292 Caldwell family, loan certificates, Charlton, John, bank, 327 155; army 8IIpplies, 155; trade,170 Chase, Samuel, war-time specula­ Callender, J. T .. on Bingham,141 tion, at Calvert, Cecelius, on paper money, Chaumont, Louis de. See Le Rey de 27 Chaumont Canaan Land Co.. 316 Cheever, W. D., trade with. the Canala and inland navigation, p~ enemy, 32, 61; war-time foreign motion, 241, 306-309 trade, 38, 39, 61; postbellum trade, Candles, monopoly, 23, 76 246,248 . Capitalism, development of colonial Cheever, William, trade, 245, 245 n. investments, 13, 18, 23; and Chenevard, John, war-time activi­ colonial paper money, 27; colonial ties,99 wealth, 29; public necessities, 41; Chesapeake Bay, flour, 53 war ellect, 218; postbellum, per­ Chester, John, on trade with the BOnnel, attitude, 237,242, 323-325; enemy, 182 and new trade routes, 257; transi­ Cbew, Benjamin, profits, 229 tion of method, 322, 323. See aLlo China. See Orient Cooperative operations; Debts; Chocolate, mill, 53; trade, 75 Profit and lOBS Church, J. B. See Carter, John Carente, Andrew, Wadsworth and Church, Moses, Parker, 114 n. Carter, 92 Cities, colonial bonds, 22; war-time Carleton, Sir Guy, Parker, 121 growtb, 231-237; postbellum char­ Carlyle and Dalton, trade, 173 ters,266 Carman, Harry, acknowledgment Clark, Austin, acknowledgment to, 8 to,8 Clark, J.I., privateering, 79. See also Carroll, Charles, of Carrollton, iron­ next title worb, 19; capitalist, attitude, 19, Clark and Nightingale, trade, 324; legal tender, 205 prominence, 58, 71, 77; army sup­ Carter, John, WaIker Co., 891l.; plies, 72; trade with the enemy, identity, position, 90; loyalist e&­ 182; public securities, 281, 282; tate&, 225; bank, 290. See al80 bank, 301 Wadsworth and Carter Clarke, Daniel, Morris, 148 Carthy, Daniel, 81 debtor, 259 Clarke, James, trade, 165 Ceronio, Stephen, Bingham, 142 Clarke family, loyalism, exile, 220 Chaloner, John, Wadsworth, 84, 92, CIaeon, Isaac, Parker, 118; war-time M, 153; billa of exchange, 162; interests, 191; bank, 294 overland transportation, 152; on Class. See Society public securities, 272 Clement, Joseph, bank, 327 INDEX Clopper, Cornelius, bank, 327 26-29; effect of war, 30; spirit Clopper, Peter, bank, 327 during war, 30; war-time inter­ Cloth, manufacture, 19, 166, 311,313- state, 36, 53, 63, 74, 80, 101, 102, 315; war-time trade, 53, 62, 75, 142, 119; foreign war-time, 37-40; and 150; Irish, 168 public debt, 43; Massachusetts Clothing, army supply, 50, 53, 54; war-time, 49-52, 58-64 ; Rhode LaFayette's force, 166 Island war-time, 74-77; Deane­ Clymer, Daniel, Fort Wilson affair, Morris foreign group, activities, 201; loyalist estates, 226 131-135; Morris' American associ­ Clymer, George, connections, 127 n.; ates, 136-145; Philadelphia war­ Morris, 137; Pennsylvania politics, time, 149-154, 158; training on 199; Fort Wilson affair, 201; on bank,268 army staff positions, 155-157, 188; Cock, Elijah, bank, 327 Baltimore war-time, 164-171; Cock, Isaac, bank, 327 Alexandria war-time, 173-176; Codman, Isaac, trade, 59 northern merchants and Virginia, Codman, John, privateering, 66; ad­ 176· West Indies as war-time vances for army supplies, 208; dep~t, 177-179; New York City profits, 228; postbellum trade, and coastal war-time, 185; war­ 244n. time political attitude, 196, 197; Codman, John, Jr., Russell, 59; in­ element in Deane-Lee controversy, surance, 70 n.; loyalist estate, 224; , 197-199; in Pennsylvania pol!t!cs, and slave trade, 250. See also 199-201· in Massachusetts polItICS, Codman and Smith 201; r~dical regulations, failure, Codman, Stephen, trade, 59 203-207· rising political control Codman and Smith, trade with the and o;ganization, 207; Morris' enemy, 32; war-time foreign trade, policy as superintendent of finance, 39, 51 n., 59-61; bills of exchange, 209-212; merchant purchases of 67, 162; tobacco, 177; bank, 290 loyalist estates, 224-226; war de­ Codman family, connections, bank, velopment of new leaders, 226- 295 231, 275; postbellum conditions, Coffee, war-time trade, 88, 142 enterprise, 237-239, 261, 262; post­ Coffin family, distilling, 18; loyal- bellum foreign, 242-246; pos~bel­ ism, exile, 220 lum West Indies, 246-248; revIval, Cohens and Isaacs, trade, 176 new routes, Baltic, Orient, Pacific, Coit, D. L., profits, 229; bank, 302 248-257; postbellum in tersta teo re­ Colden, Cadwallader, loan, 21 lations, duties, 249,250; consolida­ Coles, J. B., bank, 327 tion of interests, failures, pressure, Collier, Sir George, on tobacco trade, 257-261; and postbellum local and 138 state political development, 2.63; Collins, John, trade with the enemy, social influence, 263 n.; orgaruza­ 63 tion against radical demands, 264; Colt, Elisha, Wadsworth, 99 and continental impost, 26? See Colt Peter, commissary, 82; Wads­ also Cooperative operat.lons; w~rth, 84, 85, 89, 92, 99; early in­ Finance; Supplies; T!ade Wlt~ the terests, 97; on state ·duties, 249; enemy· TransportatIOn; artIcles bank, 292; manufacture, 314 by n~me, especially Flour; Columbia University Libraty, ac­ Tobacco knowledgment to, 9 Commerce, 60, 61, 250 . Commerce, economic interpretation Commissariat. See Staff; SupplIes of American Revolution, 7; and Confederation, ratification, 207 ; politics, 7; colonial emergence, ~3 ; business conditions of period, 239- influence of French and Indian 242 257-262; foreign trade, 242- War, 14; elem~nt in.revolut~o~ary 257'; politics and ~usiness.?f agitation, 14; ~mpenal restrICtIOns period, 263-284; actualIty of cnSIS, and intercolorual development, 15- 264· business and support, 267, 17, 31; hostile colonial attitude, 268: See also Continental Congress INDEX Connecticut, intercolonial trade, 16; Cooperative operations, elements in war-time trade, 37-40, 59; army colonial manufacture, 20, 23; BIIpplies, Schuyler, SO, 81, 128; colonial lack, 23-29; insurance, 23 ; privateering, 85; trade with the bills of exchange as currency, 24; enemy, 182; price-fixing, 203, 205; influence of revolutionary condi­ merchants' advances for army sup­ tions, 43-48, 69, 70, 123, 131, 166, plies, 208; profiteering, 229; post­ 179, 237, 285; effect of war-time bellum commercial legislation, bills of exchange, 67; Morris' in­ 249; city charters, 266; postbellum fluence, 148; Baltimore evidences, taxation, 266; banks, 301; manu­ 169-171; efforts in support of gov­ facture, 313, 314. See alBo Hart­ ernment, 208; rise of metropoli­ ford; New England; New Haven tan economy, 231-237; and nation­ Connecticut Historical Society, ac­ wide depression, 239; oriental knowledgment to, 9 trade, 253, 255, 256; postbellum Connecticut Manufacturing Co., 314 consolidative influences, 257-261; Connecticut River, improvement, postbellum political influence, 263, 241,308 284; war-time and later groups, Connecticut State Library, acknowl­ 275; speculative groups, 275-277; edgment to, 9 postbellum evidences, funding Conner, Bryan, bank, 327 subscriptions, 278-283, 285; north­ Constable, William, Duer, 109, 275, ern interest in southern securi­ 276; Pollock, 148; double dealing ties, 283. See alBo Joint stock in war-time trade, 181; fur trade, Copland, Ambrose, bank, 327 191, 193; Macomb and Edgar, 193; Cordis, Joseph, insurance, 70 n. on overland trade, 255; Salomon, Cordis family, West Indies trade, 178 258; public securities, 273; posi­ Cornell, Ezekiel, Wadsworth, 94 tion, 276; banks, 291, 294, 298; Coruna, war-time trade, 62 land speculation, 317, 318, 322. Cotton, manufacture, 311, 313 See auo next title Cox, Albion, bank, 327 Constable, Rucker and Co., start, Cox,~, bank, 327 193, 237; tobacco, 252; oriental Cox family, connections, 127 n., 290 trade, 255; connections, 275 Coxe, Tench, Frazier, 234; Phila- Constitution, state, M&BB&Chusetts delphia recharter, 267; turnpike, controversy, 201 307 Continental Army. See Pay certi­ Craigie, Andrew, foreign trade, 39; ficates; Staff; Supplies army supplies, 56; Parker, 122, Continental Congress, commercial 123 ; public securities, 123, 273; faction, 128; Secret Committee, loyalist estate, 224; Craik, 235; members and profit, 130, 133, 196; profits, 230; Wadsworth, 277; to politics and economics, 195 ; New York, 235; as speculator, 275, Deane-Lee controversy, 197; price­ 300; southern securities, 283; bank, fixing, 205; conservative control, 298; canal, 308; manufacture, 314; businelll support, 2fYl; paper land speculation, 318, 322 money, 2fYl, 208; impost, 208. Craik, John, Jr., to Alexandria, 235 See auo Confederation; Public Credit. See Finance debt Croghan, George, western develop­ Contract system. See Supplies ment,18 Conventions, interstate, and busi­ Crommelin family, trade, 40; group, nelli, 205, 206 n. postbellum survival, 132, 223; Conway, Richard, tobacco, 174;­ bank,294 public securities, 282 Crosfield, Stephen, bank, 327 Conyngham, D. H., trade with the Crousillat, Louis, to Philadelphia, enemy, 32; foreign trade, 39, 134; 234 . privateering,l33,160 ; prizes, 135n. Crowninshield, George, trade with Conyngham family, situation, 17 the enemy, 63; public securities, Cooke,John, Wadsworth,92 281 Cooper, Matthew, bank, 327 Cruger family, loyalism, exile, 221 INDEX Cuba. See Havana. Duer, 111; Secret Committee busi­ Cumming, James, foreign agency, ness, 131; as postbellum creditor, 169 259; Hartford charter, 267; bank, Currency, colonial bills of exchange, 301; steam engine, 310 24, 27; loan certificates, 39, 41. Deane, Richard, bank, 327 See also Paper money Deane, Silas, Wadsworth, 83; Webbs, Curson, Richard, privateering, 172; 85; Duer, 109, 110; career, 127; firm, 187 Wyoming, 127; Congress, com­ Curson, Samuel, trade, 170 mercial faction, 128; lanl specu­ Curson family, group, postbellum lation, 129; as .. economic man," survival, 223 129, 196; Secret Committee, per­ Curwen, Samuel, on social changes, sonal profit, 130, 133; to France, 214 purpose, 131; international busi­ Cushing, Thomas, war-time activi- ness group, activities, 131-135,142; ties, 55; Boston convention, 206 privateering, 133, 134 ; private Cushing family, and Browns, 71 schemes, 133, 135, 197; tobacco, Cutler, Manasseh, Ohio Co., 308 140; Lee controversy, 197, 198; Cutts, Joseph, profits, 228 public securities, 271 Cuyler, Cornelius, Parker, 114 n. Deane, Simeon, tobacco, 140, 176 Cuyler, Henry, Wadsworth, 92 Debts, pressure by postbellum credi­ Cuyler, Jacob, commissary, 103,104; tors, 259. See also Bankruptcy; financial position, 107; Parker, 115 British debts; Legal tender; Cuyler, Jacob, and Co., Morris, 147 Loans; Public debt Cuyler family, group, postbellum Deer-skins, war-time trade, 59 survival, 223 Delafield, John, continental notes, 43; loyalist estates, 225; to New Dalton, John, profits, 230 York, 236; public securities, 271, Dalton, Tristram, insurance, 45 ; 73; banks, 294, 298, 327 trade, 61; politics and economics, De la Lande and Fynje, public loans, 202 44; Parker, 123 Dane, Nathan, manufacture, 313 De Lancey, John, bank, 327 Daure, Hector, Comte, French sup- De Lancey family, wealth anlloyal- ism, 218 plies, 90 Delap, --, American trade, 142 Dave, 58 Delaplaine, Nicholas, bank, 327 Davenport, John, army supplies, 81 Delaware River, proposed bridge, Davis, Caleb, on speculation in bills 234 of exchange, 33; war-time trade, Deming, Julius, locality, 81 38, 39, 58, 61; manufacture, 53; Denning, William, iron-works, 312 army supplies, 56; foreign bills, Dennis, Thomas, insurance, 70 n. 67; tobacco, 177; loyalist estates, De Peyster, William, bank, 327 224; profits,228; postbellum credit, De Peyster family, colonial connec­ 243 n.; postbellum trade, 253; pub­ tions, 13; bank, 294 lic securities, 271; banks, 290, 295, Derby, E. H., profits, 50, 228; 299 privateering, 65 ; Baltic trade, Davis, J. S., economic interpreta­ 253; China trade, 253, 256; pub­ tion, 7; on democracy and cor­ lic securities, 281 porations, 286 n. Derby, John, Pacific trade, 256; Davy, A. W., broker, 274 public securities, 281 Dawes, Thomas, war-time rise, 231 Derby, Richard, as banker, 22; Dayton, Jonathan, bank, 298; land profits, 50; pri vateering, 65; in­ speculation, 319 surance, 70 Dealing, William, bank, 327 Derby family, bank, 295, bridge, 309 Deane, Barnabas, insurance, 45 ; Detroit, British supplies, 191; army supplies, 81, 135, 209; war Macomb and Edgar, 191 activities, Wadsworth connection, Detroit Public Library, acknowl­ 86-88, 129; French supplies, 86; edgment to, 9

INDEX Essex Institute, acknowledgment to, Flour and grain, colonial trade, 16, 9 17; war-time trade, interstate Essex Result, 202 movement, army supplies,· 53, 60, Estaing, Comte d', supplies, 77 63, 81, 101, 108, 138, 142; French Evans, Oliver, steam engine, 310 contract, 92, 113,114; Philadelphia Exchange. See Bills trade, West Indies, 150-154; Balti­ Experiment, 255 more trade, 166, 169; Alexandria. trade, 173, 174; postbellum trade, 244,244n. Falconer, Nathaniel, as official, 157 Floyd family, colonial intermar- Families. See Society riages, 13 Faneuil, Peter, loans, 21 Fonda family, army supplies, 108 Farquhar, James, bank, 327 Forage, French contract, 93, 115 Faugeres, Lewis, bank, 327 Forrest, Uriah, public securities, 28~ Febiger, Christian, on postbellum Fort Wilson, affair, 200 n., 201 trade, 243 n. Foster, Bossenger, army supplies, 57 Federalism, in terms of business, 268 Fowler, Theodosius, Duer, 273, 275 Fendall, P. R., profits, 230; bank,305 Fox, D. R., acknowledgment to, 8 Finance. See next title; Banking; France, American war-time trade, Bills of exchange; Brokerage; 37, 50, 76, 169; postbeJlum trade, Capitalism; Cooperative oper­ tobacco, 141, 243, 251; N ew York ations; Debts; Money; Profit; City war-time trade, 184; West Speculation; Taxation Indies and American trade, 247; Finance, superintendent of, Morris and American oriental trade, 254; and private connections, 145-148; French Revolution and American. Morris' policy, 209-212 trade. See also French forces Fish, war-time trade, 60, 137; war Francis, Tench, Sands, 124; Morris, effect on fisheries, 216; postbellum 147 trade, 247 Francis family, connections, 13, 127· Fisher, George, bank, 327 Franklin, Benjamin, on depreciation. Fisher, John, bank, 327 as tax, 215 n.; on postbeJlum en­ Fisher, William; loyalism, survival, terprise, 242 220 Franklin, John, bank, 294, 327 Fitch, Timothy, insurance, 70 n. Franklin, Samuel, bank, 293, 294, 327 Fitzgerald, John, aide and business Franks, D. S., Fort Wilson affair, 201 man, 46; Wadsworth, 93; tobacco, Frazier, Nalbro, Breck, 58n.; Parker, 174; French supplies, 175; Morris, 122; to Philadelphia, 234; postbel­ 252; bank, 304; Potomack Co., lum trade, 246 306. See also next title Freight, war-time, 55, 58 Fitzgerald and Reis, grain, 173 French and Indian War, develop­ FitzSimons, Thomas, Codman and ment of business, 14; army sup­ Smith, 60; Duer and Parker, 117; plies, 104 Morris, 137, 146; tobacco, 140, French force, profiteering at ex­ 151; Meade and Co., 143 n.; pense, 35; supplies, 52, 57, 61, 77, Holker, 145; trade with the enemy, 167; bills of exchange and drafts, 181; postbellum trade, 244 n.; as 67, 68; damages to Providence, public creditor, 270; bank, 290; 73; trade contacts, 86; Wads­ turnpike, 307; protection, 310 worth's first contracts, 88, 89 ; Flax-seed, war-time trade, 60 masts, 110, 112, 116, 135; Duer, Fleming, Sampson, Detroit supplies, 113; Yorktown supplies, 175. Selt 191; Edgar, New York City, 193; also Wadsworth and Carter bank, 291; iron-works, 312 Friendship, 58 .. . Flint, Royal, Wadsworth, French Frontier posts, Bntlsh supplies, 191 contracts, 84, 89, 92, 93, 99, 278; Fuller, Benjamin, insurance, 161; on earlier interests, 97, 98; Duer, postbellum trade, 244 n. speculation, 117, 275, 318, 320; Funds. See Public debt Constable, 276 Fur trade, Macomb anad Edgar, 191 INDEX Furman, Moore, 88 official, 47; Glen, Henry, commissary, 103, 106; Edgar, 193; land speculation, 320 subcontract, lOS Fynje, --, public loans, 44; Parker, Glen, John, commissary, 103 123 Glen and Sanders, grain trade, 101 Glover, J. I., as loyalist merchant, Gaine, Hugh, bank, 328 190; bank, 328 Galbreath and Thomson, bank, 327 Goadsby, Thomas, bank,327 Galloway, Joseph, investments, 18; Goelet, Peter, bank, 327 on privateering, 189; confiscated Goelet family, postbellum society, estate, 226 223 Galloway family, wealth and loyal­ Gordon, William, trade with the ism,218 enemy, 34 Gamble, Archibald, bank, 327 Gore, Christopher, war-time rise, Gansevoort, Leonard, Salomon, 107; 231; Duer, 275, 318; canal, 308 Morris, 147 Gorham, Nathaniel, public finance, Gardiner, Sylvester, loans, 21 57; Wadsworth, 94; state consti­ Gardoqui, Joseph, and SODS, war- tution, 202; Boston convention, time trade, 39, ~2; prizes, 135 n. 206; bridge, 309; protection, 310; Gasner, John, bank, 327 land company, 320-322 Ga/eII,61 Gouverneur, Isaac, Deane-Morris Gault, Robert, bank, 327 group, 133; Bingham, 142; loyal­ General Mercer, privateer, 160, 176 ist estates, 225; bank, 327 General Wayne, privateer, 85 Gouverneur and Curson, war-time Gerard de Rayneval, C. A., Deane- trade, 188 Morris group, 131 Gouverneur family, groups, post­ Gerry, Elbridge, war~time public bellum survival, 223; loyalist es­ and private business, 56; on con­ tates, 225 tract system, 211; loyalist estate, Gracie, Archibald, to New York 224 ; to Boston, 232; marriage, City, 236 263 n.; on Treasury system and Graham, J. A., bank, 327 speculation, 274; public securities, Graham, John, Schuyler, 105; sutler, 281; bank, 295; inland navigation, 105 308 Graham, Richard, Morris, tobacco, Geyer, F. W., De Ia Lande, 123; 140 manufacture, 313 Graham family, tobacco, 140 Gibbs, Benjamin, loyalism, exile, 220 Grain. See Flour Gibbs, William, war-time trade, 39 Grand, Ferdinand, Deane-Morris Gibbs, William and Joseph, bills of group, 132 exchange, 163 Grand, Sir George, Deane-Morris Gilchrist, Adam, public securities, group, 132 274 Grand Turk, China trade, 253, 256 Gilchrist, Robert, manufacture, 312 Grant, Daniel, tavern, 165 Gil~or, Robert, Morris, 140; war­ Granville, Mass., army supplies, 81 tIme trade, 165-167, 170; tobacco, Gras, N. S. B., acknowledgment to,8 252; bank, 303 Gratz, Michael, privateenng, 160; Girard, Stephen, war-time activity, Virginia trade, 176 158; profits, 229; to Philadelphia, Gratz family, West Indies trade, 178; 233 public securities, 271; land specu­ Girty brothers, British supplies, 192 lation, 316 Glass, manufacture of window, 312 Gray, Benjamin, bank, 301 Glassford, Gordon and Monteath Gray, Harrison, loan, 21 bills of exchange, 162 n., 186 n.; Gray, William, privateering, 65; in­ trade with Americans, 181 n. surance, 70 n. Glen, Cornelius, army supplies, lOS; Gray, William, Jr., bank, 300 Parker, 114, 120; bank, 303; in­ Gray family, to Boston, 232; bridge, land navigation, 308 309 INDEX Graydon, Alexander, on Duer, 109; York City war-time trade, 180; on Pennsylvania politics, 199; on taxation, 210, 265; social connec­ Fort Wilson affair, 201 tion, 223; as lawyer, 231; state Great Britain, postbellum American commercial legislation, 250; on trade, 242-244, 249; United States postbellum trade, 257; Wadsworth, and West Indies trade, 246 292; banks, 293, 294, 324 n., 328; Green, Caleb, Arnold, 75 iron-works, 312; manufacture, 315 ; Green, Nathan, trade, 79 Ohio Co., 318 Greene, Benjamin, and Sons, foreign Hamilton, Henry, Macomb, 192 bills, 67; bank, 296 Hammond, Abijah, war-time trade, Greene, E. B., acknowledgment to, 8 151; social connections, 223; loyal­ Greene, Griffin, war-time trade, 39; ist estates, 225; bank, 294 to Providence, 233 Hancock, John, as banker, 22 Greene, Jacob, war-time trade, 75 Hand, Edward, and army contracts, Greene, Nathanael, on war-time 148 luxury, 36; as quartermaster gen­ Hannah,61 eral, 55; privateering, 79; private Harison, Richard, loyalism, survival, trade, Wadsworth-Deane connec­ 221; inland navigation, 308 tion, 86-88; on price-fixing, 203 n.; Harlow, R. V., on state taxation, on Brown's profiteering, 229; on 207n. Baltimore, 234; on private ad- Harper, John, trade, 175 vancement, 239 ' Harper and Hartshorne, grain trade, Greene, Thomas, army supplies, 72 173 Greene, William, on war-time Harrington, Virginia, on discount, Providence, 74 287n. Greene family, connections, bank, Harrison, Benjamin, Secret Com­ 295 mittee business, 131; Morris, 138, Greenleaf, Jonathan, war-time trade, 138n. 39; politics and economics, 202 Harrison, John, Schuyler, 106 Greenleaf, Stephen, foreign bills, 67 Harrison, Richard, trade agency Greenleaf, William, foreign trade, abroad, 39, 92,174; Bingham, 144; Parker, 119; war-time losses, 216 army supplies, 171, 174. See also Greenleaf family, war-time trade, 61 Hooe and Harrison Groton, Conn., army supplies, 82 Hart, Bernard, British war-time Gunpowder, making, 53 trade, 189 Guyon, Carthy and Co., bank, 327 Hart, Lion, bank, 328 ' Hartford, Conn., army supplies, 81; Hague, 147 war-time activities and growth, Hale, Daniel, Schuyler, 103; army Wadsworth as center, 82, 85, 99, supplies, 105; Duer's distillery, 100, 233; convention, 206; post­ 118; bank, 303 bellum growth, 241; charter, 266; Hall, Benjamin, insurance, 70 n. bank, 301; manufacture, 313 Hallam, Edward, army supplies, 81; Hartshorne, William, bank, 304; Havana venture, 99; bank, 302 Potomack Co., 306. See also Hallett, John, Delafield, 236 Harper and Hartshorne Hallett, Joseph, bank, 328 Hartung, Daniel, bank, 328 Halsey, T. L., French supplies, 57, Harvard College, public securities, 77, 88 n.; foreign bills, 68. 78, 162; 280 Wadsworth, 92; profits, 229; bank, Harvard Graduate School of Busi­ 300 ness, acknowledgment to, 9 Hamburg, war-time trade, 133; post­ Hatch, Crowell, insurance, 70 n.; bellum trade, 253 Pacific trade, 256 Hamilton, Alexander, relation to Hatfield, Mass .• army supplies, 81; business, 7, 263; aide and business convention, 266 man, 46; on Massachusetts war­ Havana, war-time trade, 63, 88, 142; time trade, 49; on New Y ork­ postbellum trade, 247 New England trade, 81; on New Haviland, Benjamin, bank, 328 INDEX Haviland, Ebenezer, bank, 328 Hodgson, William, to Alexandria, Haviland, Thomas, bank, 328 235 Hawk,68 Hodshon, John, war-time American Hay, T. R., acknowledgment to, 8 trade, 39· Hay, Udny, public securities, 273 Hoffman, James, inland navigation, Haydock, Henry, bank, 328 307 Hays, M. M., foreign bills, 69; Hoffman, Nicholas, as loyalist mer­ Duer, 118; Morris' bills, 146; to chant, 190; public securities, 273 Boston, 232; bank, 296 n. Hoffman family, land speculation, Hazard, Samuel, on war-time luxury, 318 as Holker, John, Davis' accounts, 56; Hazelhurst, Isaac, Morris, 146 bills of exchange, 68, 112; Duer Hazzard,59 and Parker, losses, III n., 112, 116- Hector, 63 118, 123; French contracts, masts, Hemp, war-time trade, 59, 77, 173 113, 116, 135; Morris, 126, 136, Hendel'8On, Hugh, British war-time 145, 146; tobacco, 140, 159; army trade, 189; bank, 328 supplies, 155; Salomon, 158; pri­ Hendel'8On, Robert, British army vateering, 160; flour, 167; Penn­ supplies, itinerancy, 187 sylvania politics, 200; and Phila­ Hendricks, Uriah, bank, 328 delphia, 233; China trade, 254; Henly. See Otis and Henly bank,290 Henry, Alexander, to Philadelphia, H olker, privateer, 160 233 Holland, postbellum American trade Henry,John,bank,328 , and interests, 40, 243-245, 306,316; Herbert, Thomas, profits, 230 war-time trade, 39, 40,61, 77; pub­ Herbert, William, profits, 230; bank, lic loaDS, 43; American trade in 305 West Indies, 247 Heme, Sir Joseph; war-time ad­ Hollingsworth, Henry, commissary, vancement, 126 47; army supplies, flour, 154, \71; Hewes, Josiah, bills of exchange, 162, manufacture, 311 163 Hollingsworth, Jesse, admonition, Hibernia furnace, 164 n. 154; army supplies, flour, 167, 171; Higginson, Henry, manufacture, 313 privateering, 172; steam engines, Higginson, Stephen, public finance, 310 57; war-time trade, 62; privateer­ Hollingsworth, Levi, war-time trade, ing, 66; Parker, lUn.; on Morris' lSI, 151 n., 154; Leiper, 163; at­ agents, 147; advances for army tacked, 200 n.; on postbellnm supplies, 208; on social changes, trade, 249 n.; land speculation, 316 214; to Boston, 232; Shays' Re­ Hollingsworth family, flour, 167; bellion, 264 n.; Boston charter, banks, 304 267; public securities, 273, 278; Hone, John, bank, 328 Duer, 277; insurance, bank, 296 n.; Hooe, R. T., grain, 173; firm, 174 n.; manufacture, 313 on Alexandria's progress, 304; Higginson family, connections, bank, bank, 304. See also next titles 295 Hooe and Harrison, Morris, 142; Hill, Henry, connections, 127n. tobacco, 174; public securities, 282 Hill, William, British army sup- Hooe, Stone and Co., 174 n. plies, 186; Duer, 275; bank, 328 Hooper, R. L., staff training, 47,157; Hillegas, Michael, trade, 38 loan certificates, 155; shoe factory, Hillhouse, James, connections, 265 164 n.; profits, 229; land specu­ Hispaniola, war-time trade, 88, 178 lation, 316 Historical Society of Pennsylvania, Hooper, Stephen, trade, 61 acknowledgment to, 9 . Hopkins, Stephen, iron-works, 19 Hitchcock, Daniel, bank, 328 Hopkins, Theodore, foreign agency, Hodgdon, Samuel, iron-works, 164 n. 39; Wadsworth, 85, 94 Hodge, William, privateering, 133, Hortalez, Rodrigue,and Co., tobacco, 134 140 370 INDEX Hosiack, Alexander, bank, 328 Internsl improvements, movement, Howell family and Browns, 71 stock promotion, 306-309 Howland, Joseph, bank, 302 Inventions, and manufacture move­ Hubbard, Daniel and William, in- ment, 310 surance, bank, 296 n. Investments. See Capitalism Hubbard, Nehemiah,commissary,47 ; Iron and steel, colonial works, 19, Wadsworth, 89, 92, 98; early acti­ 25 n.; later works,73, 163,311,312; vities, 97; manufacture, 314 war-time trade, 75, 77, lOS, 164 Hubbard, William, to Boston, 232 Irwin, Joseph, trade, 39 Hubbart, Tuthill, insurance, 70, Irwin, ~atthew, commissary, 155; 296n.; advances for army sup- loan certificates, 155; privateering, plies, 208; funding subscription, 160 279, 280; bank, 296 n. Isaacs, Joshua, Salomon, 158 Hudson, Jonathan, ~orris, 142 Isle de France, American trade, 2M Hudson, River region. See Albany Izard, Ralph, on war effect on loyal- Hughes, Hugh, commissary, 103, 106, ists, 222 lOS Humphreys, Whitehead, iron-works, Jackson, Jonathan, army supplies, 163; attacked, 200 n. 55; foreign bills, 66, 69; insurance, Hunter, James, bank, 292 70 n.; politics and economics, 202; Hunter, William, privateering, 172 war-time losses, 216, 228; bridge, Hunterdon County, N. J., iron- 309 works,19 Jackson, T. F., bank, 328 Huntington,Jabez,bank,302 Jackson and Bromfield, colonial Huntington family, army supplies, profits, 15 82; French supplies, Wadsworth, Jackson and Higginson, failure, 257 89,91,99 Jackson, Tracy and Tracy, profits, 63 Hurd, John, insurance, 46, 70; bank, Jackson family, to Boston, 232 Jacobsen, Edna L., acknowledg- H~ family, connections, bank, 295 ments to, 8, 320 n. Hutchinson, Thomas, loans, 21 ; Jameson, J. F., economic interpre­ Bank of England funds, 22 tation,7 Hutchinson family, colonial inter­ Jamieson, Neil, British army sup­ marriages, 14; wealth and loyal­ plies, 187 ism,218 Jarvis, Leonard, privateering, 66; Hyder AUy, privateer, 160 public securities, 280 Jarvis and Johonnot, French sup­ Imlay, William, ~orris' bills, 146 plies, 58 Imperialism, and la.ck of colonial Jarvis and Russell, trade, 61 business, 25, 29 Jay, John, on economic freedom, India, trade, 255 196; on social change, 214; Van Indians, war-time supplies, 106, 146; Schaack, 223; iron-works, 312 British supplies, 192 Jefferson, Thomas, on war-time Indigo, war-time trade, 75 luxury, 35; on depreciated cur­ Industry, 60 rency, 215 n.; Potomac River Ingersoll, Jared, Jr., war-time trade, route, 235; on commercial in­ 231 stinct, 239; postbellum tobacco Inglis, Samuel, death, 166; bank, 290 trade, 251 Inglis family, connections, 127 n., 290 Jeffery, John, Wadsworth, 90 n. Ingraham and Bromfield, Dutch Jeffrey, James, insurance, 45 trade, 60, 119 Jenckes, John, insurance, 46 n.: Insurance. See ~arine army supplies, 72 Insurance Co. of North America, Jenckes family, manufacture, 73 earlier activities of promoters, 161 Jenifer and Hooe, grain, 173: firm, Interest, public debt and commercial 174n. rate, 270. See also Loans Jennings, William, Hour, ISO INDEX 371 Joint stock aDd corporatiOll8, colonial LaFayette, Marquis de, W~orth, eoaditiOll8, 20, 25; eoIonial inveeC.­ 88; French aupplies, Duel', 113; meII& in Brilisb, 22; British cor­ r10thing for troops, 166, 209; on s-atioa. ad in colonies, 26; Hartford, 233 eoIODial hostility, 26; levoiutioo­ Laight, William, loyalism, survival. uy developmetlt., 44; limited Jia.­ 221; !aDd speculatiOo, 317 bility, 28&; method in postbellum Laight family, loyalist merchants, enterpri8ee, 306; in Iud specuia... 190 boa., 315. 321; aDd investment Laird, John, public R!C'UJ'ities, 282 ~. 322. &. aI.ro ~; Lanraster, P~ war-time bwmess, Capitafum; Cooperative opel'­ 149 atiooa Lancaster Turnpike, 3111 JohD8oD. Borate aDd Seth. 8OUt.bem Land, colonial investment, specuIa­ R!C'UJ'ities. 2S3 boa, 18; postbellum speculation JobD&oo, W. S~ Webb&, 85; loyal- within states, 97, 315-318, 326-322; iam, eurvival, 219 war-time speculabOo, 111,129,190; JohDiJoD aDd ~o, bank, 328 profit from confiseated estates, JohDiJoD family, foreign agency, 169 224-2216 ; Northwest speculation. JohMoD., Christopher, trade, 165, 24.5, 31S-320; joint stock com­ 170; lDAIIufadure, 311 panies, 306. See aI.ro Agriculture J~ J. C~ privat.eerin«, 66; loyal­ Lane, Son and Fraser, American i8& estate, 224; inIJuraDce, bank, trade, fU 2961L Langdoa, John, as commercial agent, J~ John, of Boston. Spanish 47; war-time career, 64; Secret tnde,39 Committee business, 131; French J~ John, of New York, bank, 328 IlUpplies, 135; Morris, 137, 147; J~ J~pb. OD politics in CoD­ Boston eonvention. 207; profits, gre&B. 8 227; banks, 260, 289, 295, 297 J~ Joshua, bank, 328 LaDsing, John, Jr~ Schuyler, 103 JOlIet!, Thomas, OD British eommis­ Lauranoe, John, as lawyer, 231; iroD­ -nat., 185; OD UDeqUa1l1eatment works, 312; bank, 328 of Ioyalista, 222 Laurens, Henry, as banker, 22n.; JoaesaDdRaB. New York City war­ on Loan Offioe oertificates, f2 n.; time tnde. 183. 1M; British army on commerce and patriotism, 196 auppliee. 187 Lawrenoe. John, inIaDd navigation. JOD/fII family, W_lDdiee trade, 178 308; bank, 328 J~~ M .. bank, 328 Lawrenoe. Jonathan. army IlUpplies. J_,61 1~; war-time interests, 190; loyalist estates, 225; bank, 298,328 Keatin& Luke, aDd Co~ brokers. 163 Lawrenoe. J~ph, bank, 328 KemMe family, eonDeetioD8, l271L Lawrenoe. Thomas, bank, 328 Lawyers. war-time, and DeW leader- Ke&ehum, J~ph, PIU'ker,l14, 114 IL, 115 ship, 231 Keteltu, Peter, bank, 328 Leaming, Thomas, profits, 229 Leaming, Thomas, Jr.. privateerlng, Kryea, Am--. W ~orth, 86, 100 159 KeyftI, Stephen, charges against Leather, making, 73, 86 Wad8worth, 86 u.,hmere family, confiscated estates. King, Joho, aDd Co~ t.ob.cro, HO 224 King, Rufus, war-time riBe, 231; to Le Conteuh and Co~ billa of ex­ Sew York, mania«e, 236. 263 IL; change, 9C. 95; PIU'ker, 120; bank. 298; inlaDd Davigatioa, 308; Rueket-, 252 IL aDd !aDd epecu\aboa., 320 Lee, Arthur, Deane-Morria antago­ KiDgIDAII. J~ph, Parker, 114 II.. nism, 131. l34, 146; anti-bW!lineal Knos, Beary, privatftrinc. 35; Iud faetiOlL 197; on conservative OOD­ epecu\atioa, 316 ... 317 trot. 8 Krout. John, .a-ledgment to, 8 Lee, Charles, bank, ~ 372 INDEX Lee, John, war-time trade, 62, 63 Lincoln, C. H., economic interpreta­ Lee, Joseph, privateering, 65; in­ tion, 7 surance,69 Linen, colonial manufacture, 20 Lee, Ludwig, bank, 305 Liquor, distilling, 19, 118; army Lee, R. H., Deane-Morris and supply, 55, 172; war-time trade, antagonism, 133 75,77,138,142,144,150,178; New Lee, Richard, Ashton, 300 York City war-time trade, 184; Lee, Thomas, insurance, 70 n.; loyal­ British army supply, 186 ist estate, 224 Lispenard family, group, postbel­ Lee and Cabot, West Indies post­ lum survival, 223 bellum trade, 247 Litchfield, Conn., postbellum growth, Lee family, of Massachusetts, ante­ 241 . bellum position, 49; to Boston, Livingst.on, Abraham, on profiteer­ 232; bridge, 241, 309; connections, ing, 50; army supplies, 105; Turn­ bank, 295, 296, 300 bull, 136 Lee family, of Virginia, radical poli­ Livingston, Edward, public securi­ tics, Deane-Morris, 196-198,270 ties, 283 Legal tender, \!tate acts, depreciated Livingston, Henry, war-time trade, currency, 203, 205, 206,215 53, 118 Leiper, Thomas, manufacture, 163; Livingston, J. R., French supplies, public securities, 273; bank, 290 58; privateering, 66; war-time Le Mayour, J. P., bank, 328 trade, 78; Wadsworth, 94; army Lemons, war-time trade, 60 supplies, 104; Duer and Parker, Lennox, David, trade with the 111,120; Morris, 147; profits, 230; enemy, 181 public securities, 273; manufac­ Lennox, Robert, British official and ture,311 merchant, 188 Livingston, John, land speculation, Lente, C. L., bank, 328 322 Le Rey de Chaumont, Louis, Duer, Livingston, Philip, "Signer," Secret 111; Morris group, 131; mast con­ Committee, 130 tract,135; tobacco, 140; Holker, 145 Livingston, Philip, war-time inter­ Le Roy, Daniel, bank, 328 ests, 190; loyalist estates, 225; Le Roy and Bayard, West Indies bank,298 trade, 247; postbellum trade, 248; Livingston, R. R., office as conser­ on Russian trade, 253 ; inland vative, 208; bank suggestion, 287 navigation, 308 Livingston, Robert, commissary, Le Roy, Bayard and McEvers, 104; Duer and Parker, 118 origin, 223 Livingston, Walter, commissary, 103, Lesley, W., bank, 328 105; Trumbull dispute, 104; Duer Letters of Marque. See Privateering and Parker, 116, 117; army con­ Levy, Hayman, bank, 328 tract, 118, 128; Turnbull, 136; Levy, Moses, war-time New York Constable, 276; bank, 298. See City trade, 184 also, Sands, Livingston and Co. Lewis, Francis, Secret Committee, Livingston, William, ·on trade with 130; war-time interests, 190 the enemy, 181; bank, 328 Lewis, Mordecai; Bingham, 144; Livingston and Co., land specula­ bills of exchange, 163 tion, 320 Lewis, Morgan, Wadsworth, 92, 94, Livingston and Gilbert, land specu­ 114; army supply agency, 103, lation, 320 106; Duer, Parker, 111, 114, 115; Livingston and Turnbull, Secret loyalist estates, 225 Committee business, 131 L'Hommedieu, Ezra, land specula­ Livingston family, iron-works, 19; . tion, 317 army supplies, 104 Library of Congress, acknowledg­ Lloyd, Henry, public securities, 22 ment to, 9 Lloyd, James, Wadsworth, 91 Limozine, --, war-time trade, 142 Lloyd family, loyalism, exile, 220 INDEX 373 Loan Office certificates, conditions Ludlow family, colonial intermar­ of use, 39, 41, 42; speculation, riage, 13; loyalist merchants, 190; Morris, 143,210, 273; in payment group, postbellum 8UrVival, 223; for 8Upplies, 155, 281, 282. See alBo bank,294 Public debt Lumber, war-time trade, 60, 102, Loans, colonial, 18-22, 27; war effect, 106; army supply, 108; trade with 215, 218. See alBo Capitalism; the enemy, 181; poBtbellum trade, Debts 244,261 Loeke. John and self interest, 31 Lush, Stephen, manufacture, 312 Logwood, war-time trade, 75 Lux, William, as commercial agent, Long Island, trade with the enemy, 47 182 Lux and Bowly, war-time trade, 170; Lopez, Aaron, war-time foreign army supplies, 171; Morris, 142 trade, 93; French 8Upplies, 58; Luxury, war-time, 35, 53; postbel- foreign billB, 69, 162; army 8Up­ lum, 240 plies, 72; on depreciation and Luzerne County, Pa., iron, 311 prices, 216 Lyde and Rogers, bank; 328 Lopez, David, war-time foreign Lynch, Dominick, loyalist estates, trade, 75; capitalist, 76 225; to N ew York, 236; inland Lopez family, joint-stock interest, 45 navigation, 307 L'Orient, France, war-time trade, 38, 141, 142, 169 McAlpin, James, to Philadelphia, 233 Loring and Austin, trade, 61 McCall, Archibald, loyalism, sur­ Lott, A. P., bank, 328 vival, 220; southern securities, 283 Lott, Abraham, bank, 294, 328 Lovell, James, Parker, 122 McCall family, colonial investments, Lovely Naney, 110 13; connections, 127, 290 Low, Isaac, as loyalist merchant, 190 McClenachan, Blair, war-time for­ Low, Nicholas, continental notes, 43; eign trade, 39; Secret Committee, trade with the enemy, 183; loyal­ 131; Revenge purchase, 135; pri­ ist estates, 225; southern securi­ vateering, 135, 159-161·; ammuni­ ties, 283; banks, 290, 293, 294, 298, tion, 155; loan certificates, 155; 328; inland navigation, 307; man­ insurance, 161; Pennsylvania poli­ ufacture, 312 tics, 200; radical animosity, 200; Low family, group, postbellum sur­ profits, 229; as public creditor, vival, 233; land speculation, 318 270; Duer, 276; bank, 290 Lowell, John, prizes, 65; insurance, McConnell, Hugh, southern securi­ 70 n.; state constitution, 202 ; ties, 283 Boston convention, 206; pupils, McConnell, Matthew, Fort Wilson 231; banks, 299; inland naviga­ affair, 201; loyalist estates, 226 tion, 308 McCormick, Daniel, Salomon, 158; Lowell family, to Boston, 232; con­ privateering, 189; loyalism, sur­ nections, bank, 295 vival, 221, 222; Wadsworth, 277; Lowrey, Thomas, Morris, 147; over­ bank, 293, 328; iron-works, 312; land transportation, 152 ; profits, land speculation, 317 229 McDonald, James, as debtor, 259 n. Lowrey family, inlluence of com­ McDougall, Alexander, loyalist es­ miBBariat, 47 tates, 225 ; profits, 230 ; paper Loyalists, confiscated estates, profits, money, 265n.; bank, 293, 328 111,224-226; and wealth, 217; ex­ McDougall, Peter, and Co., bank, tent of elimination, 219-223, 265 328 Lucy, 59 . McGill, James, Edgar, 191,·192 Ludlow, Daniel, loyalism, 8UrVival, McHenry, James, aide and business 221 man, 47; advances for army sup­ Ludlow, G. H., bank, 328 plies, 209; bank, 291 . Ludlow, W. H., bank, 328 Mackey, Mungo, privateering, 66; Ludlow and Goold, bank, 328 insurance, 70 n.; canal, 308 374 INDEX McKim family, privateering, 172· Mason family, connections, bank, 295 war-time trade, 174; banks, 304; Massachusetts, colonial paper manufacture, 311 money, 27; trade with the Macomb, Alexander, as trader at enemy, 49, 50 n., 52, 63; war-time Detroit, 191, 192; British Indian commercial conditions, 49-52; war­ supplies, 192; New York City, time luxury, 53; war-time inter­ 193; profits, 230; Duer, 275; state trade, 53; war-time manu­ Wadsworth, 277; bank, 298 ; facture, 53; war-time agriculture, speculation, land, 300, 317, 318 54; war-time advancement, 54; Macomb, Edgar and Macomb, army supplies, 54-57; French Detroit, 192 supplies, 57; war-time private MacPherson, William, public se­ trade, 58-64; privateering, 64-66; curities, 272 foreign exchange, 66-69; marine McVickar, John, loyalism, survival, insurance, 69-71; war-time politics 221 and economic conditions, 201; McVickar, Nathan, bank, 328 price-fixing, 203, 216 n.; legal McVickar and Hill, 275 tender, 206; merchants' advances McVickar family, British army sup­ for war supplies, 208; war-time plies, 186 losses, 216; confiscated estates, McWilliams, Robert, bank, 328 profit, 224; postbellum enterprise, Madeira Islands, postbellum trade, transportation, 241; Shays' Re­ 244 bellion, 264; postbellum taxation, Madison, James, on tobacco trade, 266; federal funding subscriptions, 243 278-281; internal improvements. Manufacture, colonial, 18-20; war­ 308, 309; manufacture, 312, 313. time, 53, 163, 166, 238; postbel­ See also Boston; New England; lum, associations, 242, 309-315 ; Salem protection, 268 Massachusetts Bank, discounts, 242; Marblehead, Mass., war-time trade, origins, support, change in per­ 62, 63 sonnel, 260, 295, 296; and Bank of Marine insurance, colonial, 23; war­ United States, 299 time, 45, 46 n., 69-71, 161; New Massachusetts in Agony, 27 York City war-time, 185; and Massachusetts Historical Society, bank,296 acknowledgment to, 9 Markoe family, profits, 229 Masterton, David, bank, 328 Marmie, Pierre, Turnbull company, Masts and spars, war-time trade, 60; 136 for Frpnch fleet, 110, 112, 116, 135 Marsh, Daniel, land speculation, 319 Maule, Thomas, bank, 328 Marshall, Christopher, on price­ Maxwell, William, frontier-post fixing, 203 supplies, 191; bank, 293, 328; Marsteller, Philip, to Alexandria, manufacture, 312 ., , 235 Marston, Thomas, loyalism, sur­ Mayer, Josephine, acknowledgments vival, 221 to, 8, 191 n. Martinique, postbellum trade, 247 Meade, George, and Co., trade with Maryland, colonial bills of ex­ the enemy, 32; Codman .and change as currency, 24; colonial Smith, 60, 67; Secret CommIttee paper money, 27; colonial inter­ business, 131; tobacco, 140; West est rate, 28; legal tender. 205, 206; Indies trade, 143; bills of ex­ postbellum enterprise. 240; post­ change, 162; failure, 258; bank, 290 bellum taxation, 266; Mount Meade family, establishment, 17 Vernon conference, 268; federal Mease, James, Morris. 136; loan funding subscriptions, 282; bank, certificates, 155; as official, private 291. See also, Baltimore trade, 156; Paine, 200; loyalist Mason, Jonathan, bank, 260; fund­ estate, 226 ing subscription, 279 Mease family, army supplies. 155 Mason, Jonathan, Jr., bank, 298; Medicines, war-time trade, 57, 75, inland navigation, 308 77, 142, 143 INDEX 375 Meredith, Samuel, connections, 123, 254-256; Willing connection, 127 D.: Pennsylvania politics, 199 126; private war-time advance­ Merrilla, George, Parker, 114 ment, profits, 126, 230, 230n.; Merrilla, Hezekiah, Wadsworth, 100: Deane connection, international broker, 273 group, projects, 127, 131-135, 142, Merrimac River, bridge, 309 197; Secret Committee, personal Miami Re8erved Land Association, profit, 130, 133; separate Deane 319 schemes, 133, 135; privateering, Michilimackinac, British supplies, 133, 134, 143, 159, 160, 172; wide 191 American associations, tobacco, Middlesex Canal, 308 138-141, 176; Bingham and con­ Middletown, Conn., charter, 266 nections, 141-143; loan certificates, Mi/llin, Jonathan, Jr., as official, 157 143, 144, 155,210: Holker, 145; as MillIin, Thomas, Duer and quarter- Financier, private relations, 145- master supplies, 110: as official, 148, 209, 210; bills of exchange, 156: Fort Wilson affaire, 201 145,148,162; flour, 154, 174; am­ Miller, Charles, public eecurities, 280 munition, 155; Salomon, 158; on Miller, Christopher, bank, 328 West Indies trade, 178, 248: Con­ Miller, John, bank, 328 stable, 193, 276; conservative poli­ M i7Ul1'1Jo, 61 tics and economics, 196, 263; Minthorne, Mangle, bank, 328 Deane-Lee controversy, 198; Mirabile Dietu, 59 Pennsylvania politics, 199, 200; MiralJes, Juan de, Deane-Morrie Fort Wilson affair, 201; and legal schemes, 135 tender and price-fixing, 205; office Mitchelson, David, bank, 328 as conservative, 208; and abun­ MollI8IIe8, war-time trade, 142 dance of specie, 210; contract sys­ Money, French exchange, 58n.: tem and free trade, 211, 212; kinds in circulation, 107. See also loyalist estates, 226; intercity con­ Currency: Paper money: Specie nections, 235, 237, 252; postbel­ Moore, Hugh, to Philadelphia, 233 lum trade, tobacco, 243-245, 251, Moore, James, foreign agency, 169 252; personal notes, 252; as post­ Moore family, war-time trade, 170 bellum creditor, 258; paper money, Morgan, George, land speculation, 265n.; on concentration of public 320 debt, 269; purchase of securities, Morgan, John, war-time activity, 270, 272, 273; on corporations, 286; 94, 99; to Hartford, 233 Massachusetts Bank, 295; Bank of MorrelJ,Jacob,bank,328 United States, 297; internal im­ Morris, Gouverneur, Deane-Lee con­ provements, 307 ; manufacture, troversy, 198: office as conserva­ 311 ; land speculation, 316, 321, tive, 208: on war-time 1_, 217, 322. See also Bank of North 218: Van Schaack&, 223: tobacco, America; Willing and Morrie 252: R. Morris' interest, 276: Morrie, Thomas, foreign agency, 142 Duer, 277: land speculation, 317, Morrie family, iron-works, 19 322: bank, 324, 324 n. Morton, Perez, war-time rise, 231 Morris, Jacob, bank, 328 Morrie, Robert, as private banker, Moses, Isaac, tobacco, 176; bank, 22 D.; colonial bank, 25: colonial 328 loans, 28: French war-time trade, Mott, Jacob, Jr., bank, 328 38: on taxing loan certificates, Mount Hope, Pa., iron-works, 164 n. 41 n.; on national wealth, 44; Mount Vernon, conference, 268 Rm.,ll as agent, 57; on Boston as Mowatt, John, bank, 328 bill market. 66 n.: French supply Moylan, Stephen, aide and buainess billa, 69; Wadsworth's American man, 48; lumber, 106 IlOntract, 94: Schuyler, 106; Duer Mulligan, Her, bank, 328 and his schemes, 116-113, 275, 277; Mumford, Thomas, army supplies, army contracts, Parker and Duer, 81, 129; French supplies, 99; Sands, 118, 121, 124; China trade, Secret Committee business, 131; INDEX Morris, 137; New York City in­ postbellum conservatism, 265; terests, 236 charter,266, 267; bank, 301 Murray, Alexander, loans, 21 New In8Urance Office, New York Murray, John, bank, 328 City,24 Murray, John, Jr., bank, 328 New Jersey, colonial trade, 17; iron­ Murray, Lindley, bank, 328 works, 19, 163, 312; trade with the Murray, Robert, son and British enemy, 180; price-fixing, 2Ot; trade, 188; bank, 328 postbellum radicalism, 2M Murray family, bank, 2M New Jersey Society for Establish­ Murray, Mumford and Bowen, ing Useful Manufactures, 314 start,235 New London, Conn.. army IlUpplies, Murray, Sansom and Co., British 82; free port, 250 n.; charter, 266; army IlUpplies, 122, 186 bank,301 Musgrove, J., flour, lOOn. New York, war-time interstate trade, Myers, Moses, tobacco, 176 SO, 101, 102; price-fixing, :m; Myers, Samuel and Moses, war-time loyalists, war effect, 221-223; con­ American trade, 60 n. fiscated estates, profit, 225; post­ bellum taxation, 265; inland navi­ Naill, William, trade, 171 ga.tion, 307; land speculation, 316, Nails, manufacture, 166 317, 320-322. See also Albany; Nantes, France, war-time trade, 37, New York City 38,61,62,76,92,142,169,170; pro­ New York Bank and Trust Co., ac­ posed Deane-Morris hoU8e, 135 knowledgments to, 9, 329 n. Nantucket, Mass., war effect, 216 New York City, interrolonial trade, Nash, Henry, and Co., bank, 328 16; colonial trade hinterland, 16; Nathan, I., bank, 328 colonial bonds, 23; inIIllrance, 23, Nationalism, and businea!, 263 24, 45, 185; suspension of hostili­ Navigation. See Internal improve- ties, IlUpplies for British, 121; in­ ments; Marine inIIllrance; Priva­ speetion of British emba.rka.tions, teering 122; war-time trade with Ameri­ Navy. &e French forces cans, profits, ISO, 181, 183-185, 188; Neilson, William, bank, 328 exports, 184 ; coastal trade, 185 ; Nesbitt, C., and Co., Morris, 143 British army, IlUpplies, itinerancy, Nesbitt, J. M., privateering, 133, 185-187; merchants and British 160; connections, 1M; tobacco, army staff, 187; privateering, 189; 139; brother, 141; loan certificates, loyalist and patriotic merchants, 155; bills of exchange, 163; loyal­ 190; social changes, 214, 295; post­ ist estate, 226; banks, 290, 298 bellum growth, 235-237, 241; post­ Nesbitt, Jonathan, foreign agency, bellum trade, 248; China. trade, 1M 254, 255; attempted banks, 299; Nesbitt family, French trade, for­ manufacture, 310, 311, 314. See eign agency, 38, 47, 169; Deane­ also, Bank of N ew York Morris schemes, 135; Morris, 137; New York Historical Society, ac­ privateering, 172 knowledgment to, 9 Netherlands. See Holland New York Manufacturing Society, Neuf,-ille, John de, and Son, war­ 312 time trade, 40, 61, 175 New York Public Library, acknowl­ Neufville, Leonard de, manufacture, edgment to, 9 312 New York State Chamber of Com­ Nevins, Allan, economic interpre­ merce, acknowledgment to, 9 tation, 7; acknowledgment to, 8 New York Stock Exchange, found­ New England, intercolonial trade, 15; ing,295 interstate trade, SO, 101, 102. &e Newburyport, M~ colonial busi­ also states by name ness, 15; inIIllrance, 45; war-time New Hampshire. See Portsmouth trade, 51, 61, 62 New Haven, Conn .. convention, 205; Newell family, connections, bank, war effect, 233; free port, 250 n.; 295 INDEX 377 Newport, R. I .. intercolonial trade, Orne, J~ph, on social changes, 214 16, 17; war-t.ime trade, 37, 73; Orne family, bank, 300 foreign exchauge, 69; war effect, Osgood, Samuel, marriage, 263 n.; 216,233 public securities, 273; Constable, Newton, Henry, bank. 328 276 Nexon, Eli88, bank, 328 Otis, H. G., nee,231 Niagara, British IlUpplies, 191 Otis, S. A., insurance, 70n.; Webb&, Nightingale, J~ph, inland trade, 85 ; loyalist estate, 224; failure, 74. See alao Clark and Night­ 258; public securities, 274, 283; ingale bank, 290. See also next titles Nixon, John, loan certificates, 155; Otis and Andrews, army supplies, 54 privateering, 160; Deane-Lee con­ Otis and Henly, Dutch goods, 40; troversy, 198; bank, 288 army BUpplies, 55; Wadsworth, 94; Norfolk, Va., rebuilding, 240 war-time trade, 152 Norrie family, establishment, 17 North American Land Co.. 316 Pacific Ocean, trade, 253, 256 North Carolina, war-time trade, 58, 59; confiseation, 224; postbellum Paine, R. T., on social changes, 213 taxation, 266 Paine, Thomas, Deane-Lee contro- Northampton County, Pa., shoe versy, 198; Mease, 200; bank sug­ factory, 1M n. gestion, 287 Northwest Coast, trade, 256 Palmer, Timothy, paper money Northwest Territory, land specula­ speculation, 33 tion, 318-320 Paper, manufacture, 73, 163, 166, 2t2 Norton, John, and Sons, war-time Paper money, and colonial capital, trade,32 27; war-time speculation, 33, 145, Norton and Beall, trade, tobacco, 199; continental, and Loan Office 140, 176; Morris, It2 certificates, 41; continental notes Norwich, Conn~ army BUppliea, 81, &8 credit, t2 ; price-fixing and 82; trade with the enemy, 182; legal tender, 203-207, 215; old and war 'IJ'OwtIi. 233; charter, 266; new continental, 207, 208; depre­ bank, 301 ciation and profiteering, 215; de­ Nova Scotia, trade with the enemy, preciation B8 tax, 215 n.; economic 49,180 effect, 238; postbellum contro­ Noyee and Wheaton, Parker, 93n. versy, 264; bank billa, 289 Parker, Benjamin, Craigie, 57; army O'Donnell, John, China trade, 256 BUpplies, 114 OtHer family, army aupplies, lOB Parker, Daniel, Craigie, 57; war ac­ Ogden, Jacob, to Hartford, 233 tivities before Duer connection, Ogden, Matt.biu, land epeculation, Wadsworth, 92-94, 102, 114, 118, 319 119; inspection of British em­ Ogden, Robert, French and Indian barkations, 122; flight, tobacco War aupplies, 15 n. scheme abroad, resources, 122; Ogden, Samuel, Duer and Parker, China trade, 123; Morris' agent, 119; iron_orks, 312; land specu­ grait, 147; on profits, 227; Duer's lation, 317, 318 later speculations, 275; bank, 290, Ohio Co.. control, 318 294, 328; land speclation, 320, 321. Olcott, Daniel, Wadsworth, 100 See also next title Old In8urance Office, New York Parker, Daniel, and Co., orig­ City,24 inal agreement, lewis, 115; Oliver, Peter, iron-orks, 19 Wadsworth and Carter, French Oliver family, colonial intermar­ forage, 115; Holker, 116, 117; riages, 14; confiacated estate, 224 army contract, 116; reorganisation, Olney family, to Providence, 233 members, other contractors, 117, O'Reily and Smith. foreiga agency, 118 ; connections, 118; distillery, 62 118; extent and financial result of Orient, trade, 253-256 contracts, 119-121; British army INDEX contract, 121; embarrassment, 122 ; Pettit, Charles, public debt, 210 China trade, 254 Phelps, Charles, land speculation, 97 Parrock, John, loyalism, exile, 220 Phelps, Elisha, army supplies, 128 Parsons, Eben, insurance, bank, Phelps, Oliver, early army supplies, 296n. 56; locality, 81; Wadsworth-Deane Parsons, James, bank, 328 connection, 88; French supplies, Parsons, Theophilus, 'war-time rise, Wadsworth and Carter, 89, 92, 96; 231; politics and economics, 202; war activities, 95, 105; American bank,290 contracts, 97,211; banks, 295, 301; Parsons, William, insurance, bank, land speculation, 320-322. See also 296n. next title Parsons, Zenos, Parker, 114 Phelps, Champion and .C.o:, army Partnerships, intercolonial, 23; ~n­ supplies, 56; war activlties, 96; suranc~, 24. See also Cooperatlve Morris, 147 operatlOns Philadelphia, colonial trade hinte~ Paschal and Smith, war-time trade, land, 16; insurance, 24, 161; w~r­ 61 time luxury, 36; commerCIal Patapsco iron-works, 19 family interrelations, 127 n.; as­ Patrick, William, bank, 328 pects of war-time business, 149- Patterson. Samuel, Morris, 147 154' flour 152; loan certificates in Patterson, William, war-time trade. trade, 154; merchants as officials, 165, 169, 170, 175; privateering, 155-157; brokers, Salomo,n, 158. 166; as postbellum creditor, 259; 163; private trade, 158; pnvatee~ bank,303 ing, 159-161; bills of exchange and Patterson family, privateering, 172; drafts, 161; manufacture, 163, 311 ; Alexandria, 175 and Baltimore, 166; war growth, Pawling, Albert, war-time trade, 102 179, 233; trade during British C?c­ Pawling, Stephen, bank, ~03 . cllpation, 181; war-time trade Wlth Paxson, Timothy, to Philadelphia, New York City, 181; ~onserva­ 234 tives and British occupat.lOn, 199.; Pay certificates, as credit, 43; deal­ Arnold's rule, 200; radical am­ ing, 225, 273, 317 mosity, Fort Wilson affair, 200, Payne, Edward, insurance, 24, 70, 201' social changes, 214, 295, 296 n.; Shays' Rebellion, 264 n.; 295 ~.; war-time profit and loss, bank, 296. 296 n. 217, 227, 229; loyalists, war effect, Payne family, connections, bank, 220' confiscated estates, profit, 295 226; second bank, 299. Bee. also Peabody, Joseph, trade, 63 Morris, Robert , Pearsall, Thomas, marriage, 223; Phillips, Jonas, on war-time profits, bank. 328 Pearsall and Embree, bank, 328 133 ki Pell. Sarah, bank, 328 Phillips, Samuel, gunpowder-rna ng, Pemberton, Robert, bank, .328 . 53 Pennington, Edward, loyahsm, exIle, Phillips, William, prizes, 65; ba~, 220 260, 296n.; insurance, 296n.; In­ Pennsylvania, iron-works, 19, !63, land navigation, 308; manufac­ 311' Wyoming, 128; first constltu­ ture, 312 tior: war-time politics and eco­ Phillips, William, Jr., bank, 260; nom'ics, 199-201; price-fixing, legal public securities, 281 .. tender 203, 205, 206; postbellum Phillips family, antebellum posltion, conditions, transportation, 240; 49; wealth and loyalism, 218; con­ internal improvements, 307; l~nd nections, bank, 295 speculation, 316. See also Phila­ Phoenix, Daniel, war-time losses, delphia 211; loyalist estates, 225; bank, Pepperrell, Sir William, confiscated 328 .estate, 228 Phynand Ellice, flour, 101; .fur, 191 Perot family, to Philadelphia, 234 Phyn family, land speculation, 318 INDEX 379 Pickering, Timothy, on war-time Privateering, and gainful spirit, 35; luxury, 35; Yorktown campaign, foreign investments, 39; share sys­ Wadsworth, 93; on price-fixing, tem, 44; and trade, letters of 205 marque, 50, 63; Massachusetts, Pierce, John, Parker, 123 ~; Rhode Island, 78; Connec­ Pierce family, West Indies trade, 178 ticut, 85; Deane-Morris group, Pierpont, Evelyn, bank, 328 out of France, 133; Morris-Bing­ Pierpont, Robert, insurance, 70 ham, 143; Philadelphia, 159-161; Pilgrim, privateer, 65 Baltimore, 166, 172; British, out Pintard, John, war-time activities, of New York City, 189. See also 191; Pacific trade, 256; Duer next title Bpeculations, 275 Prizes, French, 58; Deane-Morris Pintard, Lewis, war-time activities, manipulation, 132; sale, 135n., 141 191; bank, 328 Profit and loss, war-time, 26, 58, 59, Pitkin and Lewis, army transpor­ 100, 119, 143, 144, 216, 226-231; tation, 81 n. war and debts, 215; from confis­ Platt, Richard, social connections, cated estates, 224-226. See also 223; China trade, 255; Duer Bankruptcy; Speculation BpeCUlations, 275, 300; Barrell, Providence, R. I., intercolonial 277; bank, 297, 298 trade, 16; war-time conditions, 37, Pleasants, Shore and Co., tobacco, 71, 73, 74, 79; insurance, 46n.; Morris, 139 foreign exchange, 69; antebellum Plymouth County, Mass., iron- commercial group, 71; army sup­ works, 19 plies, 71,72; trade with the enemy, Politics, and business, 7, 14, 263, 284 73; internal trade, 74; war-time Pollock, Oliver, trade, 148 foreign trade, 74-77; French sup­ POlllI,63 plieR, 77; privateering, 78; pro­ Popham, William, Morris, 146 fiteering, 228; postbellum advance, Porteous, John, bank,328 233; bank, 291, 300; canal scheme, Porter, Thomas, to Alexandria, 235; 309; cotton factory, 313 bank,304 Provisions. See Supplies Portsmouth, war-time trade, 62, 64; Public debt, colonial investment in growth, 232; bank, 300 n. British, 22; colonial municipal, 22; Post, William, bank, 328 continental notes,42; foreign loans, Potomac River, as route, improve- 43; Parker's speculative scheme ment company, 235, 240 abroad, 122, 123; Morris, policY, Pottery, war-time trade, 75 210; concentration, speculation, Poughkeepsie, N. Y., distillery, 118 225, 269-275, 278 n.; and stronger Powel, Samuel, connections, 127 ; Union, 267, 268; and interest rate, loyaliam, survival, 220 270; concentration in funding Powell, William, insurance, 69, subscriptions, 278-284; northern 296n.; bank, 296n. capitalists and southern, 283; se­ Powell, family, connections, bank, curities in land speculation, 317, 295n. 320; and investment system, 322. Pownall, Thomas, on paper money, See also Loan Office certificates; 27 Paper money Price, Ezekiel. insurance, 23, 70, Purviance family, army supplies, 70 n.; bank, 260 171; failure, 258, 259 Price, John, bank, 328 Price-fixing, war-time attempt, fail­ Quakers, banking, 290, 291 ure, 203-205, 216 n.; proposed Quartermaster affairs. See Staff; private agreement, 261 Supplies Prime, Job, insurance, bank, 296 n. Quincy family, connections, bank, 295 Pringle. John, 1Iour, 169, 170 Prior, Edmund, bank, 328 Raisins, war-time trade, 75, 77 PrillOnel'll of war, billa of exchange, Ramsay, David, on social changes, 158; supplies for American, 190 214 INDEX Randall, Thomas, British army sup­ Ro~sevelt, Isaac, war-time interests, plies, 186; war-time interests, 191; 190; loyalist estates, 225; bank, bank,328 293,329 Rapalje, Stephen, bank, 328 Roosevelt, J. J., bank, 329 Rapalje family, confiscated estate, Roosevelt family, postbellum so­ 225 ciety, 223 Ray, Cornelius, war-time interests, Root, Jesse, Boston convention, 207 39, 190; on Baltimore, 165; loyal­ Ross, John, Parker, 122; Secret Com­ ist estates, 225; public securities, mittee business, 130, 131; agency 273; bank, 329 abroad, 133; privateering, 133, Real estate. See Land 160; tobacco, 139,159; Morris, 142, Reed, Joseph, on conservative con­ 145; flour, 154; profits, 230 n. trol, 208 Roston, E. K., bank, 328 Remsen, HenrY, as loyalist mer- Rowe, John, on bills of exchange, 25 chant, 190; bank, 329 Royall family, colonial intermar- Remsen, John, bank, 329 riages, 14 Revenge, privateer, 133-135 Rucker, John, failure, 252n. See also Rhode Island, iron-works, 19; post­ Constable, Rucker and Co. bellum radicalism, 264; con­ Russell, Chambers, trade, 60; insur­ tinental impost, 267; funding sub­ ance,70n. scriptions, 281; public securities, Russell, Jarvis, insurance, bank, 283. See also, Newport; Providence . 296n. Rhode Island Historical Society, ac- Russell, John, army supplies, 72 knowledgment to, 9 Russell, Thomas, of Baltimore, Rice, war-time trade, 59, 63, 75 trade, 168 Richardson, Thomas, trade, 77 Russell, Thomas, of Boston, wife, Richmond, Va., war-time trade, 176; 55n.; army supplies, 56, 57, 83; bank, 292, 304 French supplies, 58; Morris, 57, Riddell, Colquhoun and Co., bank, 137, 142, 147; private trade, 60; 329 privateering, 66; foreign bills, 67, Ridley and Pringle, Morris, 147 68; insurance, 69, 70 n.; Parker Ridsell, --, on Baltimore trade, 166 and Duer, 114 n., 117, 118, 121; Roach, Thomas, bank, 329 British bills, 186 n.; loyalist estate, Roberdeau, Daniel, radicalism, 199n. 224; profits, 228; bridge, 241; Robert, Christopher,. bank, 329 Baltic trade, 253; Isle de France, Roberts, Edmund, on war-time pro- 254; as postbellum creditor, 259; fi teering, 34 n. banks, 260, 290, 295; Shays' Re­ Roberts, John, confiscated estate, 226 bellion, 264 n.; Flint, 276; inland Robertson, Alexander, patriot mer­ navigation, 308; land speculation, chant, 190; banks, 290, 294, 328; 318,321 manufacture, 312 Russell family, of Boston, connec­ Robin Hood, 38, 61 tions, bank, 295 Robins, Ezekiel, bank, 329 Russell family, of Rhode Island, Robinson, Beverly, confiscated es- war-time trade, 75 tate, 112 Russia, war-time trade, 37, 77; post­ Rochambeau, Comte de. See French bellum trade, 253 forces Rutgers family, colonial intermar­ Rodney, G. B., Baron, St. Eustatius, riages,13 177 Rogers, John, foreign bills, 69 Rutherford, Walter, patriot mer­ Rogers, John, Jr., loya.lism, survival, chant, 190 221; bank, 329 Rogers, Moses, Gracie, 236; Wads­ Sail-cloth, war-time trade, 77; man­ worth, 277; bank, 328 ufacture, 313 Romayne, Nicholas, bank, 329 St. Eustatius, war-time trade, British Roosevelt, C. C., iron-works, 312; goods, 32, 155, 177; Morris' in­ bank,328 terest, 136 INDEX St. John de Crevecmur, H~tor, 104,128; French and Indian War bank,329 BIlpplies, 1M; Indian goods, 106, St. Thomas, war-time trade, 177 146; lumber, 106, 261; financial Salem, MIU!B., insurance, 45; war­ position, 107; Salomon, 107; Duer, time trade, 50, 51, 62, 63; priva­ French contract, 109, 113; Wads­ teering, 65; war-time growth, 232; worth, 115; office as conservative, lIOCial effect of war, 214; bank,300 208; and contract system, 212; Salmon, George, war-time trade, Stevens, 236; paper money, 265 n.; 165; privateering, 172; bank, 304. as public creditor, 270; banks, See also W oolBey and Salmon 289, 298, 303; inland navigation, Salomon, Haym, army BIlpplies, 307; land speCUlation, 317 BIltier, 107; Morris' bills, 146; war­ Schuylkill River, proposed bridge, time activity, brokerage, 157; 241 profit and loss, 230, 258; public Schweighhauser, --, house, war- securities, 272; bank, 290 time trade, 142 Salt, war-time trade, 60, 63, 75, 102, Scioto speCUlation, 275 119, 133, 164, 168 Scituate, Mass., iron-works, 19 Salzmann, Otto, acknowledgment to, Scott, James, and Co., bank, 329 237n. Scriba, George, to New York, 236; Sanders family, connections, 1M bank, 294, 329; inland navigation, Sands, Comfort, foreign bills, 94; 308 army contracts, 117, 118; war­ Seaman, Edmund, bank, 329 time activities, 190,212; war-time Seaman, Willet, bank, 329 interest on foreign debts, 216; Sears, David, profits, 228, 230; pub­ profits, 230; as postbellum credi­ lic securities, 280, 281 tor, 259; southern securities, 283; Sears, Isaac, on Carter, 90; China bank, 293, 329; inland navigation, trade, 255 308. See also, Sands, Livingston Sebor, J. F., public securities, 283 and Co. Sebor, Jacob, war-time trade, 85, 86; Sands, Joshua, company, 124; profits, on Duer, 123 230 Secret Committee, members and Sands, Richardson, company, 124 profi~ 130, 133, 196 Sands, Livingston and Co., army Sedgwick, Theodore, Van Schaacks, contracts, troubles, financial re­ BIllt, 118, 119, 121, 124, 125 223 Sands family, loyalist estates, 225 Seixas, Benjamin, public securities, Sanford, Peleg, bank, 301 283 Sargent, Daniel, insurance, bank, Seixas, Moses, foreign exchange, 69 296n. Service, Robert and George, British Sargent, P. D., insurance, bank, army BIlpplies, 186; bank, 294, 329 296n. Seton, William, m~rchant and British Sarly, Jacob, bank, 329 official, 187; loyalism, survival, Savage, N. L., trade with the enemy, 221; Wilkes, 236; bank, 293 32; public securities, 271 Seton family, group, postbellum Sayre, Stephen. Duer, 109; bank. 292 BIlrvival,223 Schenectady, N. Y., army BIlpplies, Seymour, Thomas, Hartford pro­ flour, 101, 102, 108; fur, 191 gress, 82 Schf'rmerhorn, --, army BIlpplies, Shaler, Nathaniel, war-time trade, 108 34; state duties, 250; land specu­ Schermerhorn, Peter, bank, 329 lation, 318 Schroeppel, George, to New York, Sharp, Richard, bank,328 237 Shattuck, William, insurance, bank, Schuyler, Angelica, elopement, 91 296n. Schuyler, Philips, loans. 22; Carter, Shaw, John, bank, 329 90, 91; Edwards, 96; war-time Shaw, Nathaniel, Jr., army supplies, trade, 101, 102; army BIlpplies, 103- 81 107; command and controversy, Shaw, Thomas, army BIlpplies, 81 INDEX Shays' Rebellion, business organi­ Smith, W. L .. public securities, 274· zation against, 2M bank,~8 ' Shedden, William, bank, 329 Smith, W. S., inspection of British Shee and Young, and public debt, embarkations, 122 210 Smith, William, of Baltimore, flour, Sheffield, John, Earl of, on war-time 167, 174; French supplies, 171; trade with America, 32; on post­ foreign trade, 171 n. bellum credit, 243 n. Smith, William, of Boston, insur­ Sherman, Roger, Deane, 128 ance, 70 n. See also Cadman and Shiell, Hugh, loyalist estates, 226; Smith to Philadelphia, 2M Smith family, of Baltimore, priva­ Shippen, William, on Deane-Lee teering, 172; banks, 304 controversy, 198 Smith family, of Rhode Island, to Shippen, privateer, 160 Providence, 233 Shippen family, connections, 13, 127 Smith family, of Virginia, tobacco, Shippey, Josiah, bank, 329 304 Shirley family, colonial intermar­ Smyth, Robert, bank, 329 riages, 14 Snedeker, Gerald, acknowledgment Shoemaker family, wealth and loyal­ to,8 ism,218 Society, colonial connections, 13, 49, Shoes, manufacture, 2On., IMn.; ~O; class after war, 213; families army supplies, 171 and business, 127 n., 263 n.; post­ Shotwell, William, Jr., bank, 329 bellum conditions, changes, sur­ Silk, manufacture, 20, 314 vivals, 213-215, 223, 275, 295, 300, Silsbee, Nathaniel, trade with the 301, 305; loyalists and war, 218- enemy, 63 223; wealth and loyalism, 218, 219. Simms, Charles, Wadsworth, 93; See also Capitalism; Luxury privateering, 172; bank, 305 Soderstrom, Richard, insurance, 70 n. Skinner, Leith, acknowledgment to, Solomon, Elkin, broker, 273 8 South Carolin&, colonial interest Slave-trade, postbellum, 250 rate, 28; war-time trade, 59; post­ Slough, Francis and Matthias, army bellum enterprise, 240; public se­ contract, 148 curities, 283. See also Charle:;-ton Sluby, Nicholas, public securities, Spain, war-time trade, 39, 51, 59, 50, 282 62, 67; postbellum trade, 244 n. Smith, Abiel, bank, 296 Specie, war-time conditions, 43, 210 Smith, Adam, and self-interest, 31 Speculation, war-time, 30, 34; paper Smith, I., of New York, bank,329 money and bills, 33, 199; continen­ Smith, Isaac, of Boston, war-time tal notes, 121; loan certIficates, trade, 60 n.; prizes, 65; foreign 143,210,273; pay certificates, 225, bills, 67; advances for army sup­ 273, 317; securities in general, 269- plies, 208; public securities, 210, 275; leaders, groups, 275-278. See 281 also Land Smith, Isaac and Thorogood, of Sprague, Silas, Schuyler, 185 Virginia, Morris, 142 Sprague and Skinner, 105 Smith, Melancton, Wadsworth, 94; Springfield, Mass.. war-time business, army contract, 108; Duer and 53; beef contractors, 120; conven­ Parker, 117, 118,275; Morris, 146; tion, 206n. loyalist estates, 225; land specula­ Sproat, David, profiteering, 188 tion, 318 Stacey, Richard, profits, 228 Smith, Oliver, trade, 61 Staff, positions as business training, Smith, P. N., loyalist estate, 224 46-48, ~, 95, 97, 98, 103, 155- Smith, Robert, Morris, 147; army 157; merchants and British, 187. supplies, 172; West Indies trade, See also Supplies 178 Stamford, Conn.. army supplies, 82; Smith, Samuel, army supplies, 171 trade with the enemy, 182 INDEX Staphol'Bt house, public loans, 44; Sullivan, John, supplies for EBtaing, land speculation, 316. Bee also 77 Willink Sulphur, war-time trade, 142 Staples, John, bank, 329 Sumner, W. G., economic interpre­ Staves, war-time trade, 50, 77 tation, 7; on Morris' war-time Steam engines, promotion, 310 profits, 126 Steel. See Iron Supplies for army, French and Indian Stephenson, Cornelius, Bingham, 143 War, 15 n.; Massachusetts, 50, 53; Sterrett, James, public securities, 282 Rhode Island, 71 ; Connecticut, Sterrett, John, privateering, 172 80-82; and interstate trade, 80, Sterrett family, war-time trade, 170 101; Wadsworth as Commissary Steny and Murray, trade, 76 General, 83, 84; Wadsworth as SteveDB, Ebenezer, to New York, 236 trader, contract, 86, 93; Albany SteveDB, John, bank, 292 as center, Schuyler, 103-108; Duer SteveDB and Hubbell, on lumber and Parker, lOS, 116-121; British trade, 261 contract after suspension of Stevenson, James, manufacture, 302 hostilities, 122; re8Ults of con­ SteveDBOn, John, 10yaJism and trade, tract system, Morris, 124, 211; 103; profits, 229 Sands, Livingston and Co., 124, Stewart, Archibald, Duer and Parker, 125; Philadelphia, 155-157; Balti­ 117 more, 171, 172; British, and loyal­ Stewart, Chua and R~ bank, 329 ist merchants, 185-188 ; British Stewart, David, privateering, 172 frontier posts, 191; advances by Stewart, James and A., bank, 329 merchants, 208; and later specu­ Stewart, Stephen, privateering, 160; lative group, 275. See also Cloth­ war-time trade, 170; army 8Up­ ing; Flour; French forces; Staff plies, 171 Swan, James, privateering, 6; insur­ Stewart, Walter, trade connectioDB, ance, 70 n.; loyalist estate, 224; 1M bridge, 309 Stewart and Jones, postbellum activ­ Swan, 145. ity, 241, 248; West Indies trade, Swanwick, John, Morris' notes, 121, 246; Salomon, 258; foreign and 145; bank, 290 domestic products, 310 Swarthout, Bernard, bank, 329 Stewart family, tobacco, 140; Morris, Sweden, war-time trade, 37; post­ 142 bellum trade, 253 Stiles, Ezra, on war-time Providence, Swift family, connectioDB, 127 n. 78 Symmes, J. C., land speculation, 319 Stirling, Lord. Bee AieDllder, Wil­ liam Talcott, Matthew, Wadsworth, 86 Stites,John, bank, 329 Tallmadge, Benjamin, public securi­ Stoddert, Benjamin, public securl­ ties, 271 tie., 282 Talman, William, bank, 329 Storer, Ebenezer, prizes, 65; iDBUr- Taxation, as remedy, 207; in Morris' anee, bank, 296 n.; canal, 308 policy,21O; depreciation as, 215 n.; Stoughton, John, to New York, 236 postbellum, 265. See also Duties . Stoughton, Thomas, bank, 294, 329 Tayler, John, war-time trade, 102, Stringham, Joseph, bank, 329 106, 170; French and Indian War Strong, Jedediah, Schuyler, 128 supplies, 104; army 8Upplies, lOS; Sturgis, R\llIIIell, advances for army Morris, 146; bank, 303; land supplies, 208 specUlation, 317 Stuyvesant, Peter, bank, 329 Taylor, Joseph, bank, 329 Sugar, war-time trade, 75, 88, 138, Taylor family, wealth and loyalism, 142, 152 218 Sullivan, James, to Boston, 232; Tea, war-time trade, 75, 77, 178 inland navigation, 308; land Ten Broeck, Abraham, inland navi­ speculation, 321 gation, 308 INDEX Ten Broeck, Henry, loyalist estates, 183-185; Long Island, 182; in­ 225 crease at end of war; 183 Ten Broeck, Peter, Schuyler, 105 Transportation, overland war-time, Ten Eyck, Thomas, bank, 329 152; postbellum enterprise, 240. Textiles. See Cloth See also Internal improvements; Thomas, Thomas, profits, 228 Marine insurance; Navy; Priva­ Thompson, William, Fort Wilson teering affair, 201 Treaties, commercial, 253 Thompson and Skinner, Morris, 147 Trenton, N. J., charter movement, 'Thomson, John, bank, 329 267; bridge, 234 Thomson, William, and Co., bank, Troup, Robert, connections, 223; 329 as lawyer, 231 . Thorndike, Israel, profits, 228; banks, Troy, N. Y., start, 241, 302 299; manufacture, 313 Trumbull, David, Wadsworth, Thorndike family, bridge, 309 French supplies, 89, 92, 99; beef Throop, Amos, war-time trade, 77 contract, 120 Thurston and Jenkins, war-time Trumbull, John, war-time trade, 38 trade, 77 Trumbull, Joseph, Commissary Tiebout, Henry, loyalist estates, 225 General, 82; private trade, 85; Tilghman, Richard, oriental trade, Livingston dispute, 104 256 Trumbull, frigate, building, 87, 129 Tilghman, Tench, aide and business Trumbull family, Deane, 128 man, 47; army contracts, 124 ; Tryon, William, on trade with the Morris, 137, 235; tobacco, 252; enemy, 183; on privateering, 189 ,China trade, 255; bank, 289; man­ Tucker, Josiah, and self-interest, 31 ufacture, 311 Tucker, Thomas, bank, 329 Tilghman and Francis, Morris, 137 Tudor, William, war-time rise, 231 Tilghman family, connections, 127 n. Turnbull, William, Codman and Tillinghast, Daniel, public agency, 47 Smith, 60, 67; Duer-Parker group, Tillinghast, Henry, war-time trade, 116, 117; Morris, 136, 146; com­ 75 pany, 136; bank, 290 Tobacco, colonial trade, 16, 17; war­ Turnbull, Marmie and Co., 136 time trade, 37, 60, 63, 119; post­ Turner, John, and Co., bank, 329 bellum trade, French, 63, 141, 243, Turnpikes, joint-stock promotion, 244, 251, 252; Parker's scheme abroad, 122; Morris' war-time 306 connections, 137-141; Philadelphia, 151, 152; Baltimore, 167, 169-171; Underhill, Andrew, bank, 329 . manufacture, 163, 311; Alexandria, United Company of Spermaceti 173, 174; merchants to Virginia, Chandlers, 23 176; West Indies, 178 Ustick, William, Jr., bank, 329 Todd, Isaac, Edgar, 191, 192 Toys, war-time trade, 53 Valek, Adrian, bank, 304 Tracy, Nathaniel, state constitution, VanAntwerp, Simon, bank, 329 202; loyalist estates, 224; banks, Van Antwerp family, army supplies, 290, 296, 296 n.; insurance, 296 n. 108 Tracy family, Spanish trade, 39; Van Bibber, Abraham, war-time antebellum position, 49; war-time trade, 171; army supplies, 171; trade, 61, 63; privateering, 66 ; public securities, 282; manufac­ foreign bills, 68; prizes, 135 n. ture, 311 Trade with the enemy, British goods, Van Bibber, Isaac, public securities, 31, 50 n., 52, 61, 168, 180; British 282 posts, 34; N ova Scotia., 49 ; Van Bibber family, war-time trade, British West Indies, 63; Rhode 174; banks, 304 Island, 73; ,Deane-Morris group, Van Cortlandt family, colonial in­ 132; West Indies as depot, 177; termarriages, 13 New York City, profits, 180, 181, Van Dam, Anthony, insurance, 24 INDEX Vanderbilt, John, British war-time Waddington, Benjamin, bank, 329 trade, 188; loyalism, BUrvival, 221 ; Waddington, Henry, bank, 329 bank,329 Waddington, Joshua, loyalism, sur- Vanderheyden, Jacob, war-time vival, 221; Wadsworth, 277; bank, trade, 102; army BUpplies, 107; 293, 294, 329 profits, 229 Wadsworth, Jeremiah, New York Vanderheyden family, postbellum contacts, 34, 182; leadership, war­ condition, 303 time development, influences, 47, Van Rensselaer, Henry, Schuyler, 80, 82, 212, 217; on war-time 105 agriculture, 54; army supplies, 55, Van Rensselaer, Jeremiah, Van 81, 82, 209; locality, 81; ,foreign Schaack, 223; inland navigation, bills, 68, 69; early war-time activi­ 307; land speculation, 317 ties, 83; as Commissary General, Van Rensselaer, Philip, Schuyler, 83, 84, 86; private connections and 103,104 activities, 84-88 ; first French Van Schaack, Henry, loyalism, BUr­ army contracts, 88, 89; in France, vival, 222, 223 95; Deane, 128, 129; and price­ Van Schaack, Peter, loyalism, BUr­ fixing, 2Oli; on public finance, vival,223 207 n.; postbellum trade, 253 : Van Schaick, G. W., inland naviga­ China trade, 255: as postbellum tion, 308 creditor, 259: Hartford charter, Van Schaick, J. G., grain trade, 101; 267: public securities, 271, 272,274, Duer and Parker, 123; manufac­ 283: Constable, 276: Duer, 276; ture, 312 New York interests, importance, Vantuyl, Andrew, bank, 329 277; banks, 289, 290, 294, 297, 298, Van Vechten, Teunis, commissary, 301: inland navigation, 308: man­ 103 ufacture, 310, 311, 313, 314; land Van Wagener, Hubert, bank, 329 speculation, 321, 322. See 01&0 next Vanzandt, Jacobus, bank, 329 title Vanzandt, Tobias, bank, 329 Wadsworth and Carter, foreign Vanzandt, Viner, bank, 329 bills, 78, 162; first French con­ Varick Richard, aide and business tracts, terms, 89; nature of firm, man: 47; on Albany loyalists, 103; 90, 91;' agents and subcontractors, Schuyler, 103, 105; social co~ec­ Hartford associates, 91-93, 96, 98- tioDB, 223; as lawyer, 231; Iron­ 100, 114, 115, 118; Yorktown, 93; works, 312; bank, 329 American army contract, 93 ; finan­ V_II family, colonial intermar­ cial aspects, profits, 94, 95; Morris riages, 14; confiscated estate, 224, on, 125; as public creditors, 259; bank,292 225 Wainwright, Francis, army supplies, Vermont, land speculation, 322 57 Vernon, T. C., foreign bills, 67 Walker, Benjamin, aide and busi­ Vernon, William, war-time losses, ness man, 47; Carter, 89n.; loyal­ 216 ist estates, 225; to New York,236; Verplanck, D. C., as loyalist mer­ Duer, 275; land speculation, 317 chant, 190; marriage, 223; public Walker, John, bank,329 Becurities, 283 Walker and Co., French supplies, 88 Verplanck, G. C .. loyalism, BUrvival, Wallace,Johnson and Muir, tobacco, 221; bank, 329 Morris, 140, 170, 174; public se­ Verplanck family, group, pGstbellum curities, 282 BUrvival, 223; bank, 294 Wallace family, wealth, loyalism, Virginia, war-time trade" 59, 63; exile, 190, 218, 221 duties. 173 n.; merchants' advances Walley, Thomas, Hurd, 71; loyalist for army supplies, 209; postbellum estate, 224; bank, 260; manufac­ en terpru.e, • transportation, 240 ; ture, 313 Mt. Vernon conference, 268. See Walley, family, connections, bank, also Alexandria; Tobacco 295 lNDEX Walpole, Thomas, Deane-Morris 67; insurance, 70; Parker, 114 ni, group, 132 118; retirement, 258 ; manufac­ Walton, William and Jacob, coastal ture,309 trade, 185 Wendell, A. E., brewery, 102 Walton family, British army sup­ Wendell, Oliver, war-time trade, 58; plies, 187; loyalist merchant, 190 Van Schaacks, 223; banks, 290, Ward, Samuel, insurance, 70; land 296 n.; insurance, 296 n.; bridge, speculation, 318 309 Warner, George, bank, 329 Wendell family, antebellum posi­ Warner, Richard, bank, 329 tion,49 Warren, James, on profiteering, 227 Wentworth, Sir John, confiscated Wars, and economics, 30 . estate, 224 Washington, George, on speculation, Wentworth, Paul on Deane-Morria 30; aides as business group, 46; group, 132 Sands, 124; on trade with the Werf, Paul van der, war-time trade, enemy, 180; Potomac River route, 52n. improvement, 235, 240 West, William, connections, 134; Watson, Elkanah, foreign agency, profiteering, 156 38, 39, 62, 76, 92; foreign bills, West, colonial exploration, 16; land 67; balloon, 95; inland navigation, speCUlation, 18, 129. See also 240, 307; bank, 302 Northwest Watson, James, Wadsworth and West Indies, colonial trade, 16; war­ Carter, 92, 96, 99; earlier activity, time trade, flour, 39, 59,63, 87, 97, 98; to N ew York, 236; banks, 150, 151, 153, 154, 167-169; Morris' 294, 297 n., 298, 301; on wild pro­ interests, 136, 142; depot for war­ motion, 300; inland navigation, time trade, agents, 177-179; post­ 307; land speculation, 318 bellum trade, 246; trade and Watson, Josiah, Morris, tobacco, French Revolution, 297 n. 140, 252; grain trade, 173; bank, Wetherill, Samuel, manufacture, 163 304 Wethersfield, Conn., insurance, 45; Watson and Greenleaf, Wadsworth, army supplies, 82, 116; priva­ 277 teering,85 Watts, John, bank, 298; inland navi- Wetmore, William, bank, 299 gation, 307 Whaling, war-time trade and effect, Watts, Robert, bank, 329 137, 216 Wealth. See Capitalism Wharton, Francis, on politics in Webb, Joseph, tannery, 86 Continental Congress, 195 n. Webb, Mehitable, Mrs. Deane, 127 Wharton, Isaac, loyalism, exile, 220 Webb, S. B., war-time trade, 85; to Wharton family, loyalism, survival, New York, 236; loan, 272 220 Web!;, family, war activities, Wads­ Wheelwright, Nathaniel, bills of worth, 85, 86 exchange, 25 Webster, Noah, on speculation in Whelen, Israel, staff training, 157; paper money, 33; New Haven to Philadelphia, 233 charter, 267; on public securities, White, Henry, bills of exchange, 273; Watson and Greenleaf, 277; 162n. on New York society, 294 White, Joseph, trade with the Webster, Pelatiah, land speculation, enemy, 63 129; and paper money, 207; on White family, loyalism, exile, 221 social changes, 214, 215 n.; on Whiteside, Peter, and Co., Duer, stock jobbing, public securities, 111; Morris, 137, 146 269, 271; bank, 324 n. Wikoff, Isaac, foreign exchange, 66 Wells, Ashbel, Wadsworth, 100 Wilcocks, Alexander, war-time rise, Welsh, Jacob, foreign agency, 61 231 Welsh, John, war-time trade, 38,39, Wilkes family, to New York, 236 53,61; trade with the enemy, 52; Willcox, Mark, manufacture, 163 French supplies, 61; foreign bills, Willets, Richard, bank, 329 INDEX William, 59 Winslow family, loyalism, exile, 220 Williams, Ebenezer, anny supplies, Winter, Joseph, public securities, 283 81 Winthrop, Kemble and Co., British Williams, George, on social changes, army supplies, 186 214 Winthrop, Todd and Winthrop, Williams, John, river improvement, slave-trade, 250 308 Witherspoon, John, on Loan Office Williams, Jonathan, Jr., war-time certificate, f2 n. agency abroad, 38, 47, 61, 62; fo~ Wolcott, Oliver, on price-fixing, eign bills, 67; Secret Committee 205; manufacture, 314 businea!, 131; Deane, 132 Wolcott, Oliver, Jr., influence of WillilUllll family, Deane, 128 commissariat, 47 ; Wadsworth, 297 WilliDg, Thomas, insurance, 24; im­ Woodhull, James, bank, 329 portance to Morris, 126; Secret Woolen manufacture, Hartford, 314 Committee, 130; British occupa­ Woolsey, George, on Baltimore tion of Philadelphia, 199; loyal­ trade, 166; privateering, 166. See ism, survival, 220; public securi- alBo next title ties, 272; bank, 298 _ Woolsey and Salmon, war-time ac­ Willing and Morris, colonial tobacco tivity, 166, 168-170; trade with trade, 17. See al&o Morris, Robert the enemy, 168 Willing family, connections, 13, 290; Worthington, John, 10yaIism, sur­ land speculation, 316 vival,219 Willink house, public loans, «; - Wyoming Valley, Deane's interest, Morris' bills, 146; Constable, 276 128 WillBcm, 63 Willaon and Saidler, bank, 329 Yates, Christopher, commissary, 103 Wilson, James, of Alexandria, trade, Yates, --, army supplies, lOS 175 Yates, Richard, Morris' bills, 146; Wilson, James, of Philadelphia, as loyalist merchant, 190; loyal­ Duer,110; Deane-Morris IIChemes, ism, survival, 221 135; privateer cases, 161; war­ Yeates, Jasper, army contract, 148 time trade. 171 n.; Deane-Lee con­ Yeates family, colonial intermar­ troversy, 198; radical animosity, riages, 13 attack on house, 2OOn., 201; return Yeiser, Englehart, wa~time trade, to Congress, 207; on legal tender, 165; reclamation, 166 215 n.; Trenton bridge, 2M; Penn­ Yellott, Jeremiah, privateering, 166; sylvania politics, 287; land specu­ bank, 303 lation, 316; bank, 324n. Yorktown campaign, French sup­ Wilson, William, wa~time trade, plies, 93. 175 165, 173 Yoshpe, Harry, on confiscated es­ Wine, w~time trade, 119 tates, 225 n. Winship, Jonathan, French supplies, Young, William, bank, 329 58 Wioship, Jonathan, Jr., slaughter­ Zuntz; Alexander, bank, 329 ing,53 VITA

ROBEllT A. EAST was born May 16, 1909, in Lima, Ohio, and received his early education in the public schools of that place. He attended Williams College from 1927 to 1931, receiv­ ing the B.A. degree from that institution in the latter year. From 1931 to 1934 he studied history at Columbia University, doing seminar research under Dr. Evarts B. Greene and under Dr. Dixon Ryan Fox, receiving the M.A. degree in 1932 from that institution. He taught history in the University Classes, Columbia University, 1934-36, in evening classes at the College of the City of New York, fall of 1936, history and economics at the Kansas State Teachers College at Emporia Kansas, spring and summer of 1937. He has since been employed at the Na­ tional Archives, Washington, D. C., as Assistant Archivist in Classification. He is the author of .. Economic Development and New England Federalism, 1803-18140" in TM New Eng­ land QUlJI'terly, X, September, 1937; co-author of" The Settle­ ment of Alexander Hamilton's Debts: a Footnote to History," in New Yori History, XVIII, October, 1937; and co-author of .. An Early Anglo-American Financial Transaction," in the BulJdill of TM BwiMSS Historical Society, XI, November, 1937·