With the British En Route to Burn Washington and American Finances at Low Ebb As Well, James Monroe Writes His Banker to Protect His Financial Solvency Just Prior to Pledging His Money to the National War Effort

“…unless you may without any inconvenience or impropriety whatsoever, allow me the necessary time for the purpose”

Coming just decades after the end of the American Revolution, the War of 1812 again pitted the former colonists against Great Britain and tested the new infrastructure of the fledgling United States. The war proved to be a dangerous risk for the Americans, as they were ill-prepared both militarily and fiscally. Soldiers were poorly paid, and there were not enough of them.  Old disagreements about the rights of the Federal government to order service of the state militias re-surfaced. Plus, many Americans did not support the war. Until 1814 Britain was heavily engaged in what it saw as the prime arena – the Napoleonic conflict in Europe. But after Napoleon’s abdication on April 4, 1814, it was able to turn more definitively to the American conflict.  So then the Americans faced the might of the British military juggernaut.

In late July 1814, the British set their sites on what they viewed as a weakly defended Chesapeake Bay region, heading toward Washington, DC from their station in Bermuda.  There, they routed the Chesapeake Bay Flotilla, the Marines, and less experienced American militia at the Battle of Bladensburg, moving on to the national capitol, many whose buildings they famously burned on August 24.

In 1814, James Monroe was Secretary State.  As the war deteriorated, President Madison lost confidence in Secretary of War John Armstrong. In September of 1814, Madison appointed Monroe to take Armstrong’s place, but did not put in place a new Secretary of State, leaving Monroe with two defacto cabinet positions until 1815. Monroe’s involvement went far beyond the roles he played in his official capacity. By August 1814, banks no longer sought to extend loans to the United States government, which was in a questionable position to repay them. Monroe pledged his own personal assets as security for some of the U.S. government loans, and this risky action was instrumental in assuring the continued prosecution of the war (and particularly in provisioning General Andrew Jackson’s army prior to the Battle of New Orleans).  William Whann, the Cashier of the Bank of Columbia, received many of the bills for provisioning the various American armies, both on the Canadian border and in Louisiana.  He was also Monroe’s personal banker.  Later in 1814, Whann told a story of Monroe galloping up on horseback to visit him and ordering him to guarantee by his personal account the payment of a bill for the Northwestern Army under William Henry Harrison and to assure that Gen. Jackson received the supplies he needed.  This all happened in the Fall and Winter of 1814.

On the eve of these crucial moments in our nation’s history, we get a glimpse of the straits Monroe already found himself financially, and how he needed to maneuver to protect his own credit and to maintain it so it would be available on behalf of the war effort.  It is a rare example showing a Founding Father managing his finances and showcases the sacrifices he made.  It also demonstrates that for him ensuring propriety in financial transactions was important.  Autograph letter signed, Washington, August 5, 1814, to Whann at the Bank of Columbia. “I did not know that Mr. Brown’s bill had become due, nor indeed at what time it became due.  I have due funds intended for this object, which will require some days to command without loss to me. This sacrifice however shall be made, unless you may without any inconvenience or impropriety whatsoever, allow me the necessary time for the purpose.  I will see you personally in a day or two.  In the mean time, you may calculate with also certainty in my placing with you the money, in your hands, in a week from this date, or sooner, if you require it.  With great respect, I am sir, Your very obedient servant, James Monroe.”  With address panel to “William Whann Esq, Cashier of the Bank of Columbia.”  When he wrote this, the British were already en route to Washington.  Days later, they would be at the Capitol.

Monroe’s efforts helped win the war for the Americans.  But his sacrifices went unappreciated in his lifetime. He spent his later years pleading for money owed him by the Federal government as a result of his patriotic exertions during very period.