Secretary of the Treasury Alexander Hamilton Works to Stave Off Misuse of Public Funds, Listing Missing Bills of Exchange

Hamilton turned to creating a financial system for the new nation 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 (these taxes were the main source of revenue for the federal government), as well as disbursing funds. Commissioners in certain jurisdictions were appointed to serve the latter function, of paying money toward debt repayment or other public purpose that was deemed appropriate.

William Gardner was the Commissioner of Loans for the State of New Hampshire, part of Hamilton’s wide ranging restructuring of the American financial system. In 1792, Hamilton sent to Gardner five thousand dollars of bills of exchange, or promises to pay by the US government. He essentially sent him several blank checks totaling 5K that Gardner could use at his discretion. These did not reach their destination and Hamilton feared they might, by accident or on purpose, end up being used for non-public purposes but that would then have to be paid for by his treasury. He set out to warn his other agents in the field that should these specific notes be presented them to pay, they should be declined as having been effectively stolen.

Printed Treasury letter signed, Treasury Department, New York, September 15, 1792. “Sir, A letter directed to William Gardner, Commissioner of Loans for New-Hampshire, containing bills of exchange to the amount of Five Thousand Dollars, drawn by the Treasurer of the United States in favor of the said Commissioner of Loans, was put into the Post-Office at Philadelphia, on the 17th of August last. As the letter in question however had not reached its place of destination on the 7th instant, and as from the Bills being drawn with blanks for the direction, there is a possibility in case of miscarriage (either from accident or design) that an attempt will be made to address them to persons in the receipt of public monies —I have judged it expedient to apprize you of the circumstance, that in case any draught of the above-mentioned description and numbered as below should be presented to you for payment, you may arrest the same, giving me immediate information thereof.”

Hamilton then lists the missing biils, numbers 3711-3719, and their amounts (from $100 40 $1000), all in favor of Gardner.