Memoirs of Aaron Burr Part 59

"21st Art. That the subjects or citizens of either party be not restrained from accepting commissions in the army or navy of any foreign power."

In 1797, while Colonel Burr was yet a member of the United States Senate, his mind was occupied with the project of a bank, and he conferred with several of his personal friends on the subject. Among others, he wrote the honourable Thomas Morris, who was at the time a member of the state Senate.

TO THOMAS MORRIS.

New-York, 1st February, 1797.

SIR,

I have been informed that the present sheriff of Dutchess either has resigned or will decline a reappointment, and that Platt Smith is among the candidates. I have very little personal acquaintance with Mr. Smith--am not, indeed, certain that I should recognise him if I should meet him; but I have long known him by reputation, and can a.s.sure you that he is a man of irreproachable character, of independent property, and much above ordinary in point of intelligence. His connexions are very influential (perhaps the most so) in that county. He is, in short, a man, in my opinion, every way qualified to fill the office. Has always been of your party, and supported Jay's election. He is withal a generous, manly, independent fellow, of that cast which you like; one who will feel sensibly any favours or civilities which may be done him. If you should not be otherwise pledged, you will oblige several of your personal friends by supporting his pretensions.

I have drawn out a plan for a bank, but find that it will require so many explanations that I forbear to send it. I perceive that you are about selling our stock in the funds of the United States. We have already talked over this matter. The more I reflect, the stronger appear the objections. It will doubtless be urged in favour of an immediate sale, that our funds are in danger of seizure by the United States. This is a mere bugbear. Such a thing will never again be even proposed, and, if proposed, will never receive three votes in the Senate. I hope, therefore, our legislature will not suffer themselves to be precipitated into this sale from any such unfounded apprehensions.

Mr. Belasies, a gentleman, a man of education and fortune, by birth an Englishman, has come out with his family to reside in this country. If he should apply for leave to hold lands in this state, I hope he may be gratified; from the little I have seen, and the much I have heard of him, I am persuaded that he will be a valuable acquisition to any state and to any society. He is no politician.

I return to-morrow to Philadelphia, where I shall remain for this month. May l expect to see you here in the spring? Present me most respectfully to Williamson, and be a.s.sured of my esteem and attachment.

A. BURR.

In April, 1798, Colonel Burr was elected a member of a.s.sembly for the city and county of New-York by the democratic party. This year was marked with more political virulence than any other year since the independence of the country. It was during the year 1798 that the alien and sedition laws were pa.s.sed. In the autumn of 1798, Matthew Lyon, then a representative in Congress from Vermont, was endicted for harbouring an intention "to stir up sedition, and to bring the president and government of the United States into contempt," &c. He was convicted, and the sentence was--"Matthew Lyon, it is the pleasure of this court that you be imprisoned four months, pay costs, and a fine of one thousand dollars, and stand committed until the judgment be complied with." This year the celebrated mission to France, consisting of Messrs. Marshall, Pinckney, and Gerry, excited the attention not only of the American people, but of the civilized world.

In short, this year the foundation was laid for the overthrow of federal power in the United States.

In no section of the country was there more political excitement than in New-York. Parties were nearly balanced. There were only two banks in the city; the Bank of New-York, and the branch of the United States Bank. They were charged with being influenced in their discounts by political considerations. At all events, they were under the management and control of federalists; and to counteract their alleged influence, Colonel Burr was anxious for the establishment of a democratic inst.i.tution. With this view he proposed to obtain a charter for supplying the city with water; and as it was certain that if confined to that particular object the stock would not be subscribed, he caused the application to be made for two millions of dollars, and inserted a clause in that charter, that the "surplus capital might be employed in any way not inconsistent with the laws and const.i.tution of the United States or of the State of New-York." It is under this clause that the Manhattan Company use and exercise all the privileges of a bank. The directors were named in the charter, and a majority of them were of the democratic party.

It has been said that the charter was obtained by trick and management; and that, if suspicion bad been entertained by any of the federal members, Colonel Burr could not have got the bill through the legislature. It is due to him, so far as it can be justly done, to rescue his memory from the imputation of having _misrepresented_ or _misstated_ to any member the object he had in view. The facts in reference to the pa.s.sage of the charter of the Manhattan Company through the Senate will now be given. The statement is upon authority that cannot be contradicted.

When the bill had pa.s.sed the a.s.sembly and was sent to the Senate, Colonel Burr, during the hours of business, went into the Senate Chamber, and requested a federal senator (now living) from the western district to move a reference of that bill to a select committee, to report complete, which would supersede the necessity of its going to a committee of the whole. The senator replied, that though he had no objection to make the experiment, yet that he was persuaded the motion would not prevail, because the Senate, not having a press of business before them, uniformly refused thus committing bills to select committees instead of a committee of the whole. Colonel Burr then suggested, that perhaps if the mover would intimate, while on the floor, that the honourable Samuel Jones was contemplated as chairman of that committee, the confidence which the Senate was known to repose in him, and in his uniform attention to every thing relating to the city of New-York, would perhaps induce the Senate on this occasion to depart from its accustomed mode of proceeding. Accordingly the motion was made, and pa.s.sed without opposition.

The committee named by the honourable Stephen Van Rensselaer, then lieutenant-governor, were Samuel Jones, Ambrose Spencer, and Thomas Morris. It was suggested to one of these gentlemen that the part of the bill authorizing the employment of the surplus capital had better be stricken out of it; in consequence of which that gentleman applied to Colonel Burr for an explanation on this point. Mr. Burr promptly and frankly informed the honourable member, that it not only did authorize, but that it was in tended the directors should use the surplus capital in any way they thought expedient and proper. That they might have a bank, an East India Company, or any thing else that they deemed profitable. That the mere supplying the city with water would not, of itself, remunerate the stockholders. Colonel Burr added, that the senator was at liberty to communicate this explanation to other members, and that be had no secrecy on the subject. The bill was subsequently reported by Mr. Jones and pa.s.sed.

This view of the proceedings of the legislature is sustained by what occurred in the Council of Revision, from the minutes of which an extract has been made.

"_At a meeting of the Council of Revision, held at the City Hall of the City of Albany, on Monday, the 1st of April, 1799._

"PRESENT--His Excellency the Governor, the Honourable the Chancellor, the Chief Justice, and Judge Benson.

"Mr. Reynolds and Mr. Robbins, from the honourable the a.s.sembly, delivered to the council the bill ent.i.tled _An act for the relief of John Lansing_, the bill ent.i.tled _An act for supplying the city of New-York with pure and wholesome water_, and the bill ent.i.tled _An act to amend the statute of limitation_, and the bill ent.i.tled _An act making provision to keep in repair the bridge over Schoharie Creek, at Fort Hunter, in the county of Montgomery_.

"The council proceeded to take the said bills into consideration, and thereupon

"_Resolved_, That the bill ent.i.tled _An act for supplying the city of New-York with pure and wholesome water_ be committed to the honourable the Chief Justice; that the bill ent.i.tled _An act to amend the statute of limitation_ be committed to the honourable the Chancellor."

"_At a meeting of the Council of Revision, held at the City Hall of the City of Albany, on Tuesday, the 2d of April, 1799._

"PRESENT--His Excellency the Governor, the Honourable the Chancellor, the Chief Justice, and Judge Benson.

"The honourable the Chief Justice, to whom was committed the bill ent.i.tled _An act for supplying the city of New-York with pure and wholesome water_, reported the following objections, to wit:

"_Because_ the bill creates a corporation, with a capital of two millions of dollars, vested with the unusual power to divert its surplus capital to the purchase of public or other stock, _or any other moneyed transactions or operations not inconsistent with the const.i.tution and laws of this state or of the United States_, and which surplus may be applied to the purposes of trade, or any other purpose which the very comprehensive terms in which the clause is conceived may warrant; this, in the opinion of the council as a novel experiment, the result whereof as to its influence on the community must be merely speculative and uncertain, peculiarly requires the application of the policy which has heretofore uniformly obtained, that the powers of corporations relative to their money operations should be of limited instead of perpetual duration."

"The council proceeded to take the preceding objections into consideration, which were overruled; it was thereupon

"_Resolved_, That it does not appear improper to the council that the said bill, ent.i.tled _An act for supplying the city of New-York with pure and wholesome water_, should become a law of this state.

"_Ordered_, That the honourable the Chancellor deliver a copy of the preceding resolution, signed by his excellency the Governor, to the honourable the a.s.sembly."

"_State of New-York, Secretary's Office_.

"I certify the preceding to be true extracts from the minutes of the Council of Revision of this state.

(Signed)

"ARCHD. CAMPBELL,

"_Deputy Secretary_.

"_Albany, April 29th_, 1836."

Of the correctness of the above statement, and the fairness of Mr.

Burr's conduct in relation to the Manhattan Company, there cannot be the shadow of a doubt; but it is probable that a large portion of the members never attempted to examine into the extent of the powers granted to the Manhattan Company; while another portion considered the project of Colonel Burr, in reference to an East India Company or a bank, as chimerical and visionary. It is, however, evident that no trick or misrepresentation was practised to procure the pa.s.sage of the bill; unless, indeed, his silence on the floor of the house as to his ulterior views may be so construed. His object was a bank; and when appealed to on this particular point, he admitted the fact. At all other times he remained silent on the subject. When the bill had pa.s.sed he was lauded by the democratic party for his address, and they rejoiced in his success. Its political effect was considered highly important, as it tended to break down a system of pecuniary favouritism, which was made to operate in support of the party in power.

During the summer of 1799 vague rumours were privately circulated respecting certain transactions of Colonel Burr with the Holland Land Company. It was whispered that a bond, which the company held against him for twenty thousand dollars, had been given up for secret services rendered them. In other circles it was hinted that the compensation was for procuring the pa.s.sage of a bill through the legislature authorizing aliens to hold lands, &c. Connected with these rumours, John B. Church, Esq. had spoken with so much freedom as to produce a challenge from Colonel Burr. On the 2d of September, 1799, the parties met at Hoboken, and having exchanged a shot without effect, Mr. Church made the _amende honorable_, and the affair was so satisfactorily adjusted as to restore the social intercourse of these gentlemen. Mr.

Church was attended by Abijah Hammond, Esq., and Colonel Burr by Judge Eda.n.u.s Burke, of South Carolina.

On the ground a most ludicrous incident occurred. Previous to leaving the city of New-York, Colonel Burr presented to Judge Burke his pistol-case. He explained to the Judge that the b.a.l.l.s were cast intentionally too small; that chamois leather was cut to the proper size to put round them, but that the leather must be greased (for which purpose grease was placed in the case), or that there would be a difficulty in getting the ball home. After the parties had taken their stand, Colonel Burr noticed the judge hammering the ramrod with a stone, and immediately suspected the cause. When the pistol was handed him by his friend, he drew the ramrod, and ascertained that the ball was not home, and so informed the judge; to which Mr. Burke replied, "I forgot to grease the leather; but you see he is ready, don't keep him waiting; _just take a crack as it is, and I'll grease the next_!"

Colonel Burr bowed courteously, but made no reply, and discharged his pistol in the state it had been given to him. The anecdote for some time after was the subject of merriment among those who had heard it.

No explanation was ever given, it is believed, of the transactions between Colonel Burr and the Holland Land Company. It was his practice to let his actions speak for themselves, and to let the world construe them as they pleased. This was a great error, and was the source in after life of much trouble and suffering to him, yet he would not depart from it. A few weeks subsequent to this duel, however, be received from a friend a kind letter, asking confidentially an explanation of these transactions, to which he replied,

COLONEL BURR TO -----.

New-York, 6th October, 1799.

DEAR SIR,

I cannot refuse to the manner of your request, nor to the friendly motives which have produced it, to satisfy your inquiries with regard to Witbeck's bond and the Holland Company.

In December, 1795 or 1796, I forget which, I entered into a covenant with the Holland Company for the purchase of one hundred thousand acres of land, at twelve shillings per acre, payable by instalments.

The covenant contained a penalty of twenty thousand dollars; as security on my part for this penalty, in case it should become due, I mortgaged to Cazenove, or the Holland Company, twenty thousand acres of land in Presque Isle, being one hundred shares of two hundred acres each in the Population Company, and I a.s.signed to him Thomas L.

Witbeck's bond, payable to me, for twenty thousand dollars, as further collateral security.

In the fall of 1797 Cazenove joined with me in a power of attorney to James Wadsworth, then in Europe, for the sale of one hundred thousand acres, and, until the summer or fall of the year following, we had reason to believe that they were or would be sold, which of course would have terminated all questions about the penalty. Some time in the year 1797 or 1798, it was noised in Albany that Thomas L. Witbeck had given a bond for twenty thousand dollars, and his credit at the bank and elsewhere became affected by it. He wrote me often on the subject. In reply, I begged him to explain that the bond was not for the payment of money, and that, even if it should become forfeited, the twenty thousand acres of Presque Isle lands were alone a sufficient security. Witbeck, however, continued to be uneasy for his credit, and teased me to take up his bond by giving other security. I thought this rather unkind, and did not trouble myself about it.

Indeed, I was in hopes that the sale of the land in Europe would have closed the transaction. Not long after this, I think in November last, Cazenove informed me that be had been applied to by Witbeck to change that security, and added that he was willing to change it for one of equal solidity, provided it would not impair his rights.