Just Four Days After Constituting the Bank of New York, Alexander Hamilton Pledges His Own Funds to Promote the Growing Manufacturing Sector in the United States

An early and unpublished document showing such efforts by Hamilton, signed twice

Alexander Hamilton was long interested in encouraging American manufactures. In his famed 1791 “Report on Manufactures”, he projected the future of the United States and its place in the world economy, and urged Congress to promote manufacturing so that the United States could be “independent on foreign nations for military and other essential supplies.” Hamilton was nothing if not a man of action, and in addition to his encouraging Congress, he personally attempted to realize the theories outlined in his Report. He was instrumental, that same year, in promoting the Society for Establishing Useful Manufactures, which sought to promote industrial development in New Jersey and would have been America’s first planned industrial center.

In the 1790s Hamilton had an extensive, documented relationship with John Campbell, a merchant and weaver who, according to the book, “Trade Secrets: Intellectual Piracy and the Origins of American Industrial Power” by Doron S. Ben-Atar, was engaged in smuggling British textile manufacturing machinery to the United States, and in bringing over workers trained in manning the machines, often as indentured servants. This meant that the men were given free passage to the U.S., and worked off the debt in the factories in America. Campbell was deeply involved in the Society for Establishing Useful Manufactures. We see from the Hamilton Papers that Hamilton stood personally as surety for some of Campbell’s ventures, such as two in November 1792; in one he guaranteed Campbell’s expenses (such in buying the machines) on behalf of Nicholas Low and Abijah Hammond, and in another he guaranteed money that third parties might advance to Campbell.

But Hamilton’s relationship with Campbell predated his “Report on Manufactures”. To support his growing efforts to establish textile manufacturing in the United States, Campbell required money. Hamilton was a member of Congress from 1782-3, and began the practice of law in New York after the British left on November 25, 1783, and continued in practice when not in government office for the rest of his life. But more importantly, he was working to expand America’s banking and merchant efforts. On March 15, 1784, he and others constituted the Bank of New York. And he was, evidently, advancing his own money to support others who were working toward the same goal.

Autograph document signed of Hamilton, being that second personal guarantee, and also indicating that there were those who felt that Hamilton had been too helpful to Campbell, and that Campbell was undeserving of Hamilton’s trust. The first portion is in John Cambell’s hand and is signed by him. “I promise to pay to Mess. Reilly & Tronson or order in six months from the date hereof fourteen pounds, eighteen shillings and eight pence. Dated this eighteenth day of March in the year one thousand seven hundred eighty four.” Hamilton then writes, New York, March 19th 1784: “I engage in case Mr. Campbell does not pay the above sum of fourteen pounds, eighteen shillings and eight pence within the time mentioned in the above promissory note to pay it for him. Alexander Hamilton.”

Below that appears a note from prominent attorney William S. Livingston, written on December 3, 1784, fully nine months after the surety agreement, showing that Campbell was in default. It states, “Dear Sir, I am sorry to call upon you for money on account of a person for whom you have done so much and who deserves so little favor. But Mr. Nicklin [merchant Philip Nicklin] of Philadelphia has drawn upon for seventeen pounds due him from Messrs. Reilly & Tronson, and if you can let me have the amount of this note, Mr. Lyons my clerk will give you a receipt for it, and you’ll greatly oblige your sincere friend, Wm. S. Livingston.” Apparently Hamilton paid, as above is written “Received the contents in full. Wm. S. Livingston.”

The verso is docketed “John Campbell to Terrance Reilly, Note of Hand”; below that Hamilton himself has written, “Taken up by A. Hamilton”. Thus this piece has two Hamilton signatures.

Campbell was in Montreal, presumably heading back to Scotland, when he wrote in May apologizing for having not paid, but guaranteeing he would. Presumably he did pay, as Hamilton’s later involvement with him indicates no breach of trust.