Tag Archives: Bankers
you mentioned that the receipt of the 400. D. in March would be quite sufficient, or even later if it should be inconvenient to me. I am not yet certain how that will be; but either then, if I have it not in hand, or at any other moment when your calls require it, I can get it from the bank here; but that being in the hands of federalists, I am not fond of asking favors of them. however I have done it once or twice when my own resources have failed, and can do it at all times.
To John Wayles Eppes, February 21, 1803
Patrick Lee’s Explanation
Indebted leaders are humbled by their financial insecurity.
Eppes was married Maria Jefferson, the President’s younger daughter. Always solicitous of his two daughters and their families, Jefferson was quick to come to their financial aid, even when his own resources were lacking.
There was little cash in circulation. Financing was most often by credit – personal loans, advances on future tobacco and wheat crops, and mortgages on property, plus the buying and selling of the “paper” created by those advances. Borrowing money from one source to pay another was a common practice, one Jefferson had been forced into since his ambassadorship to France in the late 1780s. Only those prudent enough to buy only with cash, or “ready money,” had control over their financial health. Jefferson was rarely in that category.
Eppes had $400 coming due in March and had asked his father-in-law for help in meeting those “calls.” Jefferson didn’t have the cash and didn’t know if he would when the time came. If so, he would go to the bank for another advance. He hated that last resort, as the bank was controlled by his political opponents. Whether they charged him harsher terms or simply exulted in humbling the President or both is unknown, but his liberal personal spending, coupled with political and economic reverses he had no control over, left him at their mercy.