New Treasury Secretary Alexander Hamilton Consolidates All Federal Functions at a Major US Port in the Hands of Revolutionary General Jedediah Huntington

A very early letter of Hamilton as Secretary of the Treasury on a subject central to his plan for bringing in revenue for the new democracy.

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He wants also to ensure that "the Disbursement be made with Economy"

During the Revolutionary War, it was a widely understood defect in the Articles of Confederation that the Federal government was virtually powerless to raise monies. A main goal of the new U.S. Constitution was the correction of that defect, and...

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Alexander Hamilton

New Treasury Secretary Alexander Hamilton Consolidates All Federal Functions at a Major US Port in the Hands of Revolutionary General Jedediah Huntington

A very early letter of Hamilton as Secretary of the Treasury on a subject central to his plan for bringing in revenue for the new democracy.

He wants also to ensure that "the Disbursement be made with Economy"

During the Revolutionary War, it was a widely understood defect in the Articles of Confederation that the Federal government was virtually powerless to raise monies. A main goal of the new U.S. Constitution was the correction of that defect, and with the support of advocates like Alexander Hamilton and James Madison, it established a means to fund the country by authorizing Congress to collect taxes to raise revenue.  This revenue would come mainly from tariffs and tonnage duties on goods coming into the U.S., which would be collected at customs houses at the ports of entry. On July 4, 1789, an act was passed formalizing this, allowing for the collection of import duties. The Collectors of these customs houses were appointed by President George Washington, and were men of substance who could be relied on (for example, Signer of the Declaration of Independence William Ellery was the first Collector in Newport, R.I.). In September of 1789, in one of the first substantial Acts of Congress passed and signed by President Washington, the U.S. Treasury was formed. That same month, Alexander Hamilton became the first U.S. Treasury Secretary. This put in place an agency to handle the nation's finances.

Hamilton turned to creating a system that would stand the test of time.  The customs houses scattered in the many port towns throughout the states were the front lines, assessing and measuring cargo, determining value, and collecting the taxes, as well as disbursing funds.  Among the most important of these was New London, a major port in Connecticut.  Revolutionary War general Jedediah Huntington was named customs collector for that city and the coastal area from the Connecticut River to Rhode Island. 
 
Because of the key role of tariffs collected at ports, the maintenance of waterways was of paramount importance. This involved the creation and upkeep of lighthouses to protect shipping traffic. In August of 1789, in one of the first acts of the First Congress, representatives set up a system of maintaining the waterways, and complying with this act was one of Hamilton’s first responsibilities as Treasury Secretary. In late September, he sent out his first note to his collectors, including Huntington in New London. This was an estimate of expenses for the coming fiscal year.  His second note to the customs agents was also in late September.  His third he wrote on October 1, and referencing the August act of Congress, asked his collectors to send him the expenses and maintenance required within their jurisdictions for the lighthouses, beacons, etc…
 
On October 7, Huntington responded to Hamilton, writing, “Upon my entering into Office I found the Light house at this Port furnished with Oil for three or four days only and no Provision made for further Supply… The Light House is built of Stone & the walls are good but the Roof was very leaky and that & the inner work in a ruinous Condition… The Lamps requires abt. Eight hundred Gallons of Oil in a year which costs abt. three hundred Dollars & 50 dols the hire of a Man to tend the Lamps & contingent Expences arise to abt. 100 dollars yearly. The Superintendance of the whole was under the State Naval Officer. I am willing to take the Charge of it for the present.”  Huntington's offer to wrest control of the port functions from the State Naval Officer was followed by a plea that buoys be fixed in the harbor, something ardently advocated by local merchants.
 
On the 13th of October, Hamilton responded with this Letter signed, Treasury Department,  New York, October 13, 1789, to Jedidiah Huntington at the Port of New London, approving of his assuming control over New London port functions from the Naval Officer.  "Sir, I am favored with your letter of the 7th in answer to mine of the 1st.  I approve of the measures you have taken relative to the Lighthouse and shall be obliged to you to superintend whatever relates to this Business for the present – taking care that the Disbursement be made with Economy and that the accounts for the same be regularly Vouched.  I am Sir your most obedient humble servant.  Alex Hamilton Secretary of the Treasury."

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