In the Heat of the Whiskey Rebellion, Secretary of the Treasury Alexander Hamilton Transfers Funds from New York to Philadelphia

A rare financial instrument entirely in the hand of Hamilton as Secretary of the Treasury, but conducting private and family affairs

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Connecting Hamilton with his family and father-in-law, General Schuyler

Secretary of the Treasury Alexander Hamilton took over a country burdened with war-time debt and without a system of revenue to pay back that debt and fund the activities of the new nation. The financial system he instituted is credited with setting the...

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In the Heat of the Whiskey Rebellion, Secretary of the Treasury Alexander Hamilton Transfers Funds from New York to Philadelphia

A rare financial instrument entirely in the hand of Hamilton as Secretary of the Treasury, but conducting private and family affairs

Connecting Hamilton with his family and father-in-law, General Schuyler

Secretary of the Treasury Alexander Hamilton took over a country burdened with war-time debt and without a system of revenue to pay back that debt and fund the activities of the new nation. The financial system he instituted is credited with setting the nation on a sound financial footing.  His measures included tariffs on imported goods and an excise tax on domestically produced products.  A strong federal government like that envisioned by Hamilton was not always popular.  The first insurrection and challenge to the nation’s military and fiscal authority occurred in western Pennsylvania.  One of Hamilton’s levies had been placed on whiskey produced within the United States.  Distillers in what was then the west, both major producers and individuals, relied on the production of whiskey, and this set the stage for the first major Constitutional challenge to the authority of the national government.

Everything came to a head in 1794.  In May, subpoenas were issued for more than 60 distillers who had not paid the tax.  The government at this time sent US marshal David Lenox to serve writs summoning those accused to come to distant Philadelphia.  This led to outright conflict.  Another Convention met in August and appointed peace commissioners to meet with men appointed by Washington, who had advocated this conciliatory approach.  Hamilton was not in favor of that, instead feeling that a strong federal military response was called for.  Washington actually did both. While the peace commissioners met, he began military preparations.  Washington demanded the disbanding of insurgent militias by September 1, 1794.  A popular referendum on September 11 in the west on the subject produced mixed results, and those desiring peace lost out completely when Washington and Hamilton refused to halt the wheels of the military response.

On the 17th of September, Hamilton devoted his entire day to immediate preparations to send troops west.  He wrote several letters, every one relating to the furnishing and preparation of the westward-bound force.  These letters notified governors of the departure of troops, ordered supplies for the forces, and set all the wheels in motion. His correspondence was nearly frantic on this subject.

He also attended to his family and the needs of the General when he in Philadelphia on business or to visit his daughter, Eliza. Hamilton had married the daughter of General Philip Schuyler, Eliza. Thus this orphan from Nevis had married into a great American family, and his father-in-law had served under George Washington during the recent Revolution. Hamilton also attended to the needs of his family and General Schuyler when Schuyler was in Philadelphia on business or to visit his daughter, Eliza. To do this, Hamilton needed to transfer money from the Bank of the United States in New York, headed by Nicholas Low, to that in Philadelphia, under the direction of John Kean.

He wrote to Low a letter that is now in the New York Historical Society, dated September 17, 1794: “General Schuyler directed that when the time came for paying for a coach building for him here, I should draw upon you for the money. That time is come & I am not otherwise provided so that I have this day drawn upon you in favour of John Kean Esq for the cost being Fifteen hundred Dollars what I request you to pay & charge to him. We are all alive here preparing for the Insurgents…”

This is that direction for payment, originally part of this that communication.

Autograph letter signed, a pay order as Treasury Secretary, Philadelphia, September 17, 1794, to branch bank director Nicholas Low in New York. “Sir, please to pay to John Kean Esquire or order on demand Fifteen hundred dollars value received and charge the same to account as per advice from, sir, your obedient servant, Alexander Hamilton.” The verso shows the signatures of the Cashier of the Bank of New York and John Keane, though they have been cut.

It is also worth noting that letters of Hamilton as Treasury Secretary, completely in his hand, are increasingly uncommon.

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