By all accounts, George Washington was a remarkable man, "first in war, first in peace, and first in the hearts of his countrymen." History has seen few leaders of his character and stature.
But Washington was not immune to financial frustrations and setbacks. With the markets closed today in honor of Washington's Birthday, I'm reminded of a story about Washington's struggle as a lessor and bill collector. It's a true story, reflected in a letter George Washington wrote to James Welch, a man who owed him money.
Not long after Washington retired from public life in 1797, he leased part of his land along Virginia's (now West Virginia's) Great Kanawha River to Mr. Welch. Two years later, Welch still hadn't made a payment.
In fact, he not only failed to pay Washington, he tried to borrow money from others using Washington as a reference!
Here is an excerpt from the letter Washington sent to Welch in the spring of 1799.
Mount Vernon
April 7, 1799Sir,
I have received your letter of the 10th of March....
It would be uncandid, Mr Welch, not to inform you that I have heard too much of your character lately, not to expect tale after tale...of your numerous disappointments, by way of excuses for the non-compliance of your agreement with me....
I am not unacquainted, Sir, with your repeated declarations of your having purchased my lands on the Great Kanawa and endeavoring by that means, and...misrepresentations to obtain extensive credit where you were not known. Letters, to enquire into the truth of these things, have been written to me on the subject....
I will...assure you in the most unequivocal terms of two things — first, that I am in extreme want of the money which you gave me a solemn promise I should receive the first of January last; and secondly — that however you may have succeeded in imposing upon, and deceiving others, you shall not practice the like game with me with impunity. To contract new debts is not the way to pay old ones....
Consider this letter well; and then write without any deception....
Your Very Humble Servant,
George Washington
Washington was a great military leader and president, but he was not a successful collection agent. He died in December 1799, having never received a payment from Welch.
"To contract new debts is not the way to pay old ones" — sage but often unheeded advice from the Father of our Nation.
Here's another financial tidbit about George Washington: His image first appeared on the U.S. $1 bill in 1869.
The head-and-shoulders image used by the U.S. Bureau of Engraving and Printing (still in use today, though somewhat altered) is based on Gilbert Stuart's 1796 portrait of Washington. Stuart's original painting is displayed in the National Portrait Gallery in Washington, D.C.
