Alexander Hamilton Free Franks
by Thomas Lera
At the inauguration of the constitutional government in 1789, George Washington’s former military aide, Alexander
Hamilton (1757-1804) was appointed the first Secretary of the Treasury. He was a brilliant administrator in organizing
the Treasury Department. Wanting a strong, centrally controlled Treasury, he not only designed a Treasury
Department for the collection and disbursing of public revenue, but also promoted the economic development of the
country. Hamilton argued if the nation was to grow and prosper; its credit would have to be sound to encourage both
foreign and domestic investment.
Facing a treasury burdened by the heavy debt of the Revolutionary War, Hamilton’s first goal was the repayment of the
war debt in full. “The debt of the United States ... was the price of liberty,” he affirmed (1).
On 14 January, 1790, he sent Congress the first “Report on the Public Credit.” He organized the Nation’s finances,
provided for a funding system and taxes to meet it, and instituted a plan for the assumption of the state debts.
In mid-1790, with the customs laws firmly in place, Hamilton set to work devising adequate means of enforcing
treasury regulations. “A few armed vessels, judiciously stationed at the entrances of our ports,” Hamilton suggested,
“might, at a small expense, be made useful sentinels of our laws (2).” Congress concurred, and that same year
appropriated $10,000 to build and maintain a fleet of ten revenue cutters to be placed under the charge of the customs
collectors (Figure 1. Otho H. Williams, Customs Collector).
Figure 1. Free Frank from the Secretary of the Treasury [Hamilton], Treasury Department with Bishop Mark 13AV, dated on reverse
August 9, 1793 contained an acknowledgement of Bank Receipt No. 5. After the Revolutionary War, Otho H. Williams returned to
Baltimore and was appointed by the Governor as naval officer for the Port of Baltimore. When the federal government was formed in 1789,
the position of naval officer under the Maryland state government was abolished, and President Washington appointed Williams as
collector of the Port of Baltimore. He held this office until his death on July 15, 1794. (From the Smithsonian National Postal Museum
Reverend Floyd S. Leach Collection, Accession No. 260305)
Hamilton, members of Congress, and government officials used the free frank privilege, as authorized in the Postal Act
of 1789, which allowed them to send and receive correspondence for free as long as the required signature was
personally applied to the envelope (Figure 2).
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Figure 2. Alexander Hamilton, Treasury Department, Free Frank. The Salem Customs District was one of a network of Customs Districts
created in 1789 to govern the maritime activities of American ports. As Collector of Customs, Joseph Hiller’s responsibilities included
overseeing the collection of import and tonnage taxes (duties) and registering or licensing all American vessels at their port. (From the
Smithsonian National Postal Museum Reverend Floyd S. Leach Collection, Accession No. 260305)
Between 1790 and 1791, Hamilton put into effect a revenue system based on customs’ duties and excise taxes which
helped reduce the national debt, securing the confidence and respect of foreign nations. He also introduced plans for
the First Bank of the United States, which was established in 1791 as the financial agent of the Treasury Department.
The Bank served as a depository for public funds and assisted the Government in its financial transactions (3).
In 1870 the first U.S. Postage stamp (Scott 143) to honor a Secretary of the Treasury was issued (Figure 3).
Figure 3. Engraving modeled after a bust by Italian sculptor Giuseppe Ceracchi.
(NPM Accession No. 1980.2493.721)
Hamilton said, “In framing a government which is to be administered by men over men, the great difficulty lies in this:
You must first enable the government to control the governed, and in the next place, oblige it to control itself. (4)” In
the five years between September 11, 1789 and January 31, 1795, Hamilton built the foundation for the Treasury
Department.
All images are from Smithsonian National Postal Museum, Reverend Floyd S. Leach Collection (Accession No.
260395). Thanks to James O’Donnell, Museum Specialist, for scanning the above images for this article.
References:
1.
2.
3.
4.
Alexander Hamilton. 1790.First Report on the Public Credit
The Federalist No. 12. The Utility of the Union in Respect to Revenue. November 27, 1787
Chernow, Ron. Alexander Hamilton. Penguin Books, (2004)
The Federalist No. 51. The Structure of the Government Must Furnish the Proper Checks and Balances Between
the Different Departments. February 6, 1788
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