Jefferson's Treasure: How Albert Gallatin Saved the New Nation from Debt

by Gregory May

From internationally known tax expert and former Supreme Court law clerk Gregory May comes this long overdue biography of the remarkable immigrant who launched the fiscal policies that shaped the early Republic and the future of American politics. Not Alexander Hamilton---Albert Gallatin.To this day, the fight over fiscal policy lies at the center of American politics. Jefferson's champion in that fight was Albert Gallatin---a Swiss immigrant who served as Treasury Secretary for twelve years because he was the only man in Jefferson's party who understood finance well enough to reform Alexander Hamilton's system. A look at Gallatin's work---repealing internal taxes, restraining government spending, and repaying public debt---puts our current federal fiscal problems in perspective.The Jefferson Administration's enduring achievement was to contain the federal government by restraining its fiscal power. This was Gallatin's work. It set the pattern for federal finance until the Civil War, and it created a culture of fiscal responsibility that survived well into the twentieth century.

Genres: History, Biography, American Revolution, American History

352 pages, Hardcover

First published August 6, 2018

Reviews

[Alex · Rating 4 out of 5]

I'm going to style this as a Q&A session, with an imaginary enquirer asking me about the book. Here goes.


***
What is this book about?
Interesting that you chose the word what rather than who, because that is in fact the correct word. The book is ostensibly a biography of Albert Gallatin, but he is just the vehicle that carries the narrative forward. At its core, this is a book about ideas—ideas about how a government should function, with special focus on what today we would call monetary and fiscal policy. It's about a government's money matters: financing, currency, taxes, tariffs, banking, spending. Those sorts of things.

Gallatin was Treasury Secretary during the administrations of Jefferson and Madison, so he of course in central in the war of financial ideology. But I wouldn't say it is truly a biography proper. For example, by around page 30, the story has already advanced to the point that Gallatin has secured his first post in Jefferson's cabinet.

What did you like most about the book?
The introduction. I'm serious. It sets the standard for book introductions. May lays out the landscape with total clarity. He articulates the essential conflict and how Gallatin fit in. Hamilton had a grand vision for the role and function of finance in his new nation. He was a force. Jefferson and Madison knew intuitively that they disagreed with Hamilton's propositions, but were not skilled enough to advance counterproposals. Enter Gallatin. He was their foil to Hamilton.

In terms of giving the reader the proper frame and boundaries for what to expect from the book, May could not have done better. Exceptional intro.

How was May's writing?
This is difficult for me to answer because I know how hard writing a book is (props to those of you who persevere in the endeavor!) But this is my honest—and of course subjective—assessment.

I would not call it dry. I think basic is a better word. Let me give you an example. May repeats a standard formula which goes something like, "There were three reasons Gallatin took this position. First... Second... Third..." It's a good way to present information, but when it's repeated over and over (and over and over and over), the whole comes across as somewhat elementary.

May continues in this style for the first 200 pages. It's a rote recounting of the facts, stating positions and counter-positions; informative but unadorned. I was gripped by the material, however, so I did not mind the plain presentation. I mention it only to level your expectations (if you have no interest in government financial policy, I suspect you may find it boring).

But! Something weird happens in the final third of the book. May finds his footing. He opens his stride and all of a sudden he is writing with ease. It's an incredible transformation. How? What changed? Where did this come from? I don't know. But it's an about-face I'm happy to congratulate.

How does May handle the cast of characters?
Adroitly. He does not betray a bias (too much). He keeps Hamilton distant and is neutral on Jefferson, while at the same time he clearly establishes both as poles at two distant ends of the spectrum. May comes across as a bit harsh on Madison and JQA, though refrains from passing judgment on them or any of the others. He states their positions.

When it comes to his main subject Gallatin, he is steadily evenhanded. He portrays him in his best light while not sweeping criticisms under the rug. Gallatin acted as something of a mediator, or pacifier, to Jefferson. Gallatin spent much time convincing Jefferson that there were merits to some components of Hamilton's plans, while also serving as the primary proponent of a conservative financial policy that changed the course of America. Gallatin was obsessed with paying down debt. May shows the merits and flaws and fallout from holding to that tenet—especially through a war.

Any final thoughts?
I love discovering books like this—books written by those who are not authors by profession, but are rather driven by their interests and compile the sum of their curiosities and experience into a book. If American history, government policy, finance, and banking are your cup of tea, then drink up without reservation. It's a good cup. May understands the subject, presents the information clearly, gets better as he goes, and has advanced an important piece of history. Well done.

[shadow_preacher · Rating 5 out of 5]

First. I must apologize for any grammar error may incur, and since I'm not a native English speaker there are likely to be many. And second, I must admit my sentiments have been affected by this book and many other biographies, so now it's irredeemably inclined in favor of Gallatin (and of course, Jeffersonian policies).

I was first drawn to this book because of it's title...If I had not instantly noticed it's subtitle, I must have downloaded it as a love-story fiction(?) of Thomas Jefferson...That's a joke.
But after reading this book, I , instead, found myself fascinated by Gallatin. I have for some time prior to this reading, learned his prominent position in early US history from biographies of his contemporaries, but this book gave me a more thorough understanding about his outstanding intellectual, lovable character and liberal mind. I somehow even regret there's never a musical about Gallatin to lift him into public eyes though I know his life and character do not suit popular art.
May's Jefferson's Treasure was a delicately written biography and surely the best one of Gallatin's biographies. (Not that there are many available, of course) This book is apparently well-researched, having over 150 pages of notes covering 350+ pages of text, and even the notes contained considerable insights and reasonable assumptions made by May.
While definitely understanding more about his subject than almost everyone else, Mr. May didn't let his work fell into dullness by adding tons of trivial details (Henry Adams have already done it to make his Life of Gallatin completely unreadable). He dealt with complicated issues and numerous side-characters with ease and explicitness and in all made this book a easy-reading and interesting one. That was even more awesome when the subject he wrote-Albert Gallatin-was not a man possessing flamboyant writing style or strong personality, at least on the first glimpse-Gallatin's wit, humor and eccentrics (he's definitely obsessed with saving money and to an equal extent, he disdained to dress properly) could only be sensed after reading over 100 pages of his biography.
As a finance major undergraduate, I found Mr. May's dealing with economical and financial issues to be professional and comprehensive. Mr. May wished his book to explain how Jeffersonian ideology was implemented into real policies dealing with economical issues during the early 19th century, and from my perspective, he have done it elegantly and even handedly.
Mr. May never shied away from criticizing Gallatin when he misstep, and never praised his subject to excessiveness. Almost every biographer inclined in favor to the person he wrote, but while I believe Mr. May appreciated Gallatin's talent and integrity, he managed to be relatively objective.
Guess I have no much to say, and in conclusion, I strongly recommend this book to every one who wish to learn more about 19th century US history. And I strongly recommend this book to be read alongside Ron Chernow's Hamilton to get a more balanced view. (I meant it, Hamilton is definitely nowhere close to be unbiased)

[Joseph · Rating 5 out of 5]

This book fills a void in our understanding of the early years of our Republic. Who was Albert Gallatin? A forgotten financier and founding father. He made sure the country had stability in its financial markets from the early years through to the Mexican War. Previously to reading this biography, I didn't even know Gallatin existed, yet alone what an outsized role he had in running the country. A very good effort and well worth the time spent reading it.

[Luke · Rating 5 out of 5]

I had recently finished a book about the details of Hamilton’s financial system and recommendations to congress as Treasurer and so this was a natural next read in the time period to get the anti-federalist view on government finance.

This biography of Gallatin has a heavy focus on his role in influencing and defining fiscal policies throughout his various roles in state government, congress, treasurer, diplomacy, and after public life politics. Similar to Hamilton, I came away amazed by how much this man did and accomplished. Gallatin plays a major role in so many famous political events starting as early as the Whiskey Rebellion and up through the Treaty of Ghent. It was great to get a recap of all the history between these events as well as get a new financial perspective on them. I have read great biographies on many major players active in this time but still feel like I learned a great deal from this book (it’s because Gallatin is also a major player but his story/perspective hasn’t been highlighted in many popular histories).

The author clearly has a slant toward anti-federalist/Democratic Republican financial ideas, or at least the ones defined by Gallatin (there isn’t always cohesion within the movement), but is fair enough to the Federalists and Hamilton. It is generally well done. My only small gripe is that the history/story starting with John Quincy Adams and through Jackson is a bit quick (necessarily as Gallatin is winding down) which leads to a bit more noticeable bias.

I highly recommend this if you have an interest in financial aspects of our founding or want a fresh recap of early history as experienced by someone who was extremely involved and a top player in Democrat Republican politics. Gallatin is definitely someone worth studying and who deserves more attention.

[Chris Miller · Rating 5 out of 5]

Mr. May has done yeoman work recounting the life of Albert Gallatin. He presents a balanced account of the anti-Federalist, anti-Hamiltonian System that put this country in a financial position to survive Gallatin was a major force in enacting Jefferson's economic thought that relied on a tiny navy, state militia, and no government debt, that hobbled the country during the early Republic. Gallatin did, however appreciate the national bank and worked hard to reinstate it after its permit had been allowed to expire, only to see the second bank wiped out by Andrew Jackson. May shows the breadth of character in Gallatin and his active mind and work ethic that rivaled Hamilton. Those who have read Chernow's biography of Hamilton, should read this to complete the picture of Federalist/Democratic rivalry. Well done!

[Mike Smith · Rating 4 out of 5]

The story of how a Genevan emigre went from a settler on the western frontier of Pennsylvania to Secretary of Treasury. Gallatin was an integral part of the Whiskey Rebellion and afterwards got more involved in federal politics. Never a personal financial success Gallatin was a wizard when it came to public finance. During his time as Secretary of Treasury he helped pay down the national debt. May details how Gallatin's and Congress's policies were unable to cope of the pressure of paying for the War of 1812. Gallatin was integral to the positive outcome of the Treaty of Ghent in 1814. Afterwards Gallatin worked on what most people consider the beginnings of the study of Native American languages. Gallatin's progressive ideas also led to major changes in the American university system. A fascinating look on one of the unknown giants of early American government.

[Joseph Adelizzi, Jr. · Rating 4 out of 5]

Albert Gallatin, as portrayed by Gregory May in Jefferson’s Treasure is defined by two traits. First, the man was the longtime Secretary of the Treasury across multiple administrations, he possessed an in-depth knowledge of finance, yet he insisted throughout his life that he did not care about money. Second, while not the most outspoken or outgoing person, when the situation was difficult and no one else was stepping up Gallatin always took charge.

This excellent biography is the most even-keeled biography I’ve read. Usually biographers succumb to a sort of Stockholm Syndrome in which they develop such an affinity for their subject they lose perspective and produce a very slanted portrayal. Not so with May; he criticizes Gallatin where warranted, praises where deserved, and the result is a very realistic and valuable history.

[Jim Thomas · Rating 3 out of 5]

This filled a hole in my geographic knowledge of that era. I had read about Gallatin in Henry Clay's biography and was intrigued with his peacekeeping mission during the war of 182. he had a much deeper career than just his work in Europe. Gregory May did great research and compiled a good book that was not too long. I enjoyed the book.

[Casey · Rating 4 out of 5]

A good book, providing a biography of Albert Gallatin, Secretary of the Treasury during the Jefferson and Madison Presidencies. The author, American historian Gregory May, follows Gallatin through his growing up in Geneva, his immigration to America, and his political rise in the young United States. May highlights Gallatin’s approach to finance and economics as a contrast to that of Alexander Hamilton, though the differences appear more in scope than in fundamentals. Gallatin appears as a pragmatic steward of the country’s finances, successfully reducing debt and limiting government fiscal intrusion, though at the cost of restricting large-scale national enterprises. His early advocacy for internal improvements aligned with Hamilton’s vision of increased industrialization, demonstrating his ability to push Jeffersonians toward economic development. The book details Gallatin’s political struggles, including the failure to recharter the First Bank of the U.S. and the fiscal challenges posed by the War of 1812. These illustrate the difficulties of securing public investment in an administration committed to austerity. A great book for anyone wanting to understand the other side of the Hamilton story and the complexities of financial policy in early America.

[Alex · Rating 3 out of 5]

Account of Albert Gallatin that focuses mainly on his time as Treasurer under Jefferson. The book is detailed in his time as Secretary and his political influence under Jefferson and afterwards. But the book spent perhaps too little time discussing her early life, his role (or non-role?) in the Whiskey Rebellion, or his later years as Minister to London.

[Ryan Mckee · Rating 5 out of 5]

A great insight into arguably one of the greatest Secretary of Treasury. From humble beginnings to becoming an influential statesman, this book tells it all. Great read for those interested in learning more about the history of public finance and the ground work of our Treasury department.

[James · Rating 2 out of 5]

Somewhat disappointed with the lack of intimacy that the author portrays his subject in this book. I feel that Gallatin was a kind peaceful and highly adapt businessman who had an uncanny grasp for finance but beyond that the author does not do much justice to Gallatin’s character as a living and breathing human. Gallatin’s years before and after his tenure with the Jefferson and Madison Administrations serve as mere bookends to this period in his life.
What I found particularly boring was the section where the author explains details of Gallatin’s fiscal policy. One can tell that section was written by someone with a background in taxes and finance. This being said I applause the attempt as no biography of any Treasury Secretary would be complete if the author did not write about such material. What I found particularly disappointing was that the narrative did not pick up much pace afterwards.
In the books defense I did find it interesting when the author compared Gallatin’s fiscal policy with that of Alexander Hamilton. In that respect I learned something new.
Overall the book fell somewhat short of what I expected due mainly for the reasons I listed above. Hence the two star rating.