We have had here as with you, fine rains with somewhat of the other desideratum warm weather. There is however a return of cold, after hurricanes, & destructive showers of hail in spots. In some instances the corn and tobacco have been totally demolished by the latter. cordial respects TO JAMES MONROE. D. OF S. MSS. MISCL. LETS. MONTPELIER, June 14, 1816. DEAR SIR,-Altho' the inclosed letter is anonymous, the idea it suggests, of requiring an admission of our Cotton in a half manufactured state at least by nations whose luxuries fully manufactured, are admitted in the U.. S. is not unworthy of attention. The general idea I believe has not escaped in the instructions to M Gallatin and M Pinkney. But it may be well to enforce it and particularly in relation to Cotton Twist, which Russia receives from G. B. whilst her manufactures are excluded by the latter, and which France has lately prohibited even from the U. S. on the principle of reciprocity. The U. S. may reasonably demand such a regulation in their favor; and the nations granting it may with equal reason refuse it to G. B without a charge of partiality. As the Netherlands have adopted a like policy agst the U. S. a change may very properly be urged, on the same grounds, by M: Eustis, whether a treaty be or be not contemplated. An admission of cotton twist from this country into Europe, is of vast importance to manufacturing estabts & indeed to its general interests. TO ALEXANDER J. DALLAS.1 MAD. MSS. MONTPELIER, July 4, 1816. DEAR SIR, I have rec! yours of the 29 June, with the several papers sent with it. Under the difficult circumstances of the currency, and the obligation to attempt a remedy or at least an alleviation of them, the plan you have in view is entitled to a fair experiment. You do right however in reserving a discretion to judge of the sufficiency of accessions by the State Banks. Should there be a single State, in which a failure of the 1 Dallas was nominated to be Secretary of the Treasury October 5, 1814; confirmed at once and entered upon his duties October 14. He resigned April 8, 1816, and served to October 21, when William H. Crawford succeeded him. On April 9, Madison wrote to Dallas: "I have recḍ your letter of yesterday communicating your purpose of resigning the Dept of the Treasury. I need not express to you the regret at such an event which will be inspired by my recollection of the distinguished ability and unwearied zeal, with which you have filled a station at all times deeply responsible in its duties, through a period rendering them particularly arduous & laborious. "Should the intention you have formed be nowise open to reconsideration, I can only avail myself of your consent to prolong your functions to the date and for the object which your letter intimates. It cannot but be advantageous that the important measure in which you have had so material an agency, should be put into its active state by the same hands. "Be assured Sir, that whatever may be the time of your leaving the Department, you will carry from it, my testimony of the invaluable services you have rendered to your Country, my thankfulness for the aid they have afforded in my discharge of the Executive trust, and my best wishes for your prosperity & happiness."--Mad. MSS. Banks to accede should reduce the people to the necessity of pays their taxes in coin, or treasury notes, or a bank paper out of their reach, the pressure and the complaint would be intense, and the more so from the inequality with which the measure w operate.1 Can the suspension of payments in coin by the principal Banks, be regarded as the precise cause of the undue depreciation of treasury notes, as intimated in the 3a paragraph of your Circular? A slight modification, if you think it requisite, would obviate the remark. As your statement to the President will remain an official document, I suggest for your consideration, the expression that the Treas! "cannot discriminate in the mode of payment between the revenue of the customs and the internal revenue" as liable to be turned agst the Distinction proposed in the payment of them. With respect to the validity of this distinction, I should yield my doubts if they were stronger than they are, to the unanimous opinion which has sanctioned it. I anxiously wish that the State Banks may enter promptly & heartily into the means of re-establishing the proper Currency. Nothing but their general co-operation, is wanting for the purpose; On January 8 Calhoun reported the bill to incorporate the subscribers to the Bank of the United States, which was passed and approved by Madison April 10. Madison's argument against the constitutionality of a federal bank may be found ante, Vol. VI., p. 27, et seq. and they owe it to their own character, and ultimately to their own interest, as much as they do to the immediate & vital interest of the Nation. Sh they sacrifice all these powerful obligations to the unfair gain of the moment, it must remain with the State Legislatures to apply the remedy, and it is to be hoped that they will not be diverted from it either by their share in the gains of the Banks, or the influence of the Banks on their deliberations. If they will not enforce the obligation of the Banks to redeem their notes in specie, they cannot surely forbear to enforce the alternatives of redeeming them with public stock, or with national Bank notes, or, finally of paying interest on all their notes presented for payment. The expedient also of restricting their circulating paper in a reasonable proportion to their metallic fund, may merit attention as at once aiding the credit of their paper, and accelerating a resumption of specie payments. I enclose the papers marked A, B, & C, to guard agst the possibility, that you may not have copies of them with you. TO JAMES MONROE. D. OF S. MSS. MISCL. LETS. MONTPELIER July 13 1816. DEAR SIR Herewith are the papers rec from M: Hughs. He seems to have been no wise sparing of diplomatic politeness to the Spanish Gov! You will of course express the satisfaction afforded by the successful execution of his commission in reference to our Captive Citizens with an approbation of the interest taken in behalf of the English & French captives, and forward the documents to M: Erving,' with instructions to press at Madrid the restitution of the Am property refused to M: Hughs. If the Spanish authorities had had [sic] taken the ground that the property was forfeited by the aid and comfort it afforded to rebels, it would have involved the discussion commenced with M Onis, and have avoided the inconsistency now added to their injustice. In resting the seizure on the alleged Blockade, which was a spurious one, and substituting a decoy, for the warning, required by the L. of N. to neutrals, they have disarmed themselves of every plea, or rather have armed us with every plea agst them. You will find herewith also the 2 letters from M: Onis. His complaint of expeditions from our ports agst Spanish commerce, are entitled to the ordinary answer. His conciliatory remarks introducing them, are too guarded to mean much that is favorable, if they do not cover a disposition to thwart some of our demands on Spain. It appears from his final paragraph that his participation in the transactions relating to Louisiana, is to be produced 1 George W. Erving, of Massachusetts was commissioned as Minister to Spain August 10, 1814, but the Spanish government refused to receive him until the spring of 1816. 2 On July 3 Onis wrote to the State Department remonstrating against the arming of certain vessels against Spanish commerce in the United States.-D. of S. MSS. Notes. |