Tag Archives: Finances

No one has a clue, not even the author! Part 1 of 2

I think it an object of great importance, to be kept in view, and to be undertaken at a fit season, to simplify our system of finance, and bring it within the comprehension of every member of Congress. Hamilton set out on a different plan. in order that he might have the entire government of his machine, he determined so to complicate it as that neither the President or Congress should be able to understand it, or to controul him. he succeeded in doing this, not only beyond their reach, but so that he at length could not unravel it himself.
To Albert Gallatin, April 1, 1802

Patrick Lee’s Explanation
Great leaders SIMPLIFY.
A year into his Presidency, he hoped to up-end the incomprehensible financing system created by a previous Treasury Secretary, Alexander Hamilton. He wanted Gallatin, now in that role, to simplify that system to the point where every member of Congress could understand it.

There was no love lost between Jefferson and Hamilton. The new President thought the former Secretary wanted to control the entire government. To do that, Hamilton had deliberately created a system so obtuse “that neither the President or Congress should be able to understand it.”

It followed that no one would be able to control the one person, Hamilton, who understood the whole process. Eventually it backfired, Jefferson claimed, becoming so convoluted that Hamilton “could not unravel it himself.”

“On behalf of the Missouri Council …
I would like to express my deepest gratitude for your inspirational presentation …”
Conference Chair, Missouri Federation Council for Exceptional Children
Invite Thomas Jefferson to speak.
Call 573-657-2739
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It doesn’t have to be complicated!

I have read and considered your report … and entirely approve of it, as the best plan on which we can set out. … I think it an object of great importance … to simplify our system of finance, and bring it within the comprehension of every member of Congress … we might hope to see the finances of the Union as clear and intelligible as a merchant’s books, so that every member of Congress, and every man of any mind in the Union, should be able to comprehend them to investigate abuses, and consequently to control them.
To Albert Gallatin, April 1, 1802
(Second letter down)

Patrick Lee’s Explanation
Objective leaders simplify to help people to understand.
Gallatin was Jefferson’s Treasury Secretary for eight years. Together, they wanted to replace the indecipherable finances and bookkeeping of the previous Secretary, Alexander Hamilton.  One year into Jefferson’s Presidency, he commented favorably on Gallatin’s plan to do that.
The goal of their plan was simple. The nation’s finances should be so straightforward that every member of Congress and every thinking person could understand them, “investigate abuses,” and thus control those abuses.

“We heard nothing but praise from audience members.”
Policy Director, Washington State Association of Counties

Thomas Jefferson will earn the praise of your audience, too!
Invite him to speak. Call 573-657-2739

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He is TRYING to confuse us, and it’s working!

… I do not at all wonder at the condition in which the finances of the US. are found. Ham[ilton]’s object from the beginning was to throw them into forms which should be utterly undecypherable. I ever said he did not understand their condition himself. I ever said he did not understand their condition himself, nor was able to give a clear view of the excess of our debts beyond our credits, nor whether we were diminishing or increasing the debt.  … The accounts of the US. ought to be, and may be, made, as simple as those of a common farmer, and capable of being understood by common farmers.
To James Madison, March 6, 1796

Patrick Lee’s Explanation
Careful leaders want the finances clear to every citizen.
Jefferson, retired as Secretary of State and a year before becoming Vice President, expressed these thoughts to Madison, a member of the House of Representatives:
1. Treasury Secretary Hamilton intended to confuse the nation’s finances.
2. Succeeding at that, he created a system even he didn’t understand.
3. It was impossible to understand the nature or extent of our debt.
4. Always fond of the farmer, Jefferson used him as the measuring stick. The nation’s finances should be understandable by “common farmers.”

Jefferson expressed the same thoughts five years later to his Albert Gallatin, who would serve as his
Treasury Secretary for eight years. He eventually credited Gallatin with creating the first clear record of the nation’s finances since its founding.

Too bad Jefferson couldn’t be as tough on his personal finances! From the late 1780s on, he continually spent money he didn’t have. He often had to borrow more to pay debts as they came due. In 1825, at age 81, near the end of his life and hopelessly indebted, he would write to a youngster, “Never spend your money before you have it.”

“Clearly the visits with President Jefferson and Captain Clark
have set the standard for future conferences.”
Indiana Historical Society, Director of Education

Thomas Jefferson will maintain a high standard for your audience!
Invite him to speak: Call 573-657-2739

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