that's wrong. that's misleading. it's bad history. i am not prepared to say that we should avoid the founder's cul-de-s cul-de-sac, that phrase is going to haunt me the rest of my career, i know that. but i also don't think that we -- i don't think that we should be plastering campaign buttons or bumper stickers on our books. i'm not for them. i'm not against them. i found them interesting. i try to see them in context. good scholarship of the sort that we want to encourage does that. we try to introduce that to our students. whenever teach about this stuff, i mention hamilton, i wonder, look, this is a play, this is not history.

a can and this is -- we all know

around -- and we don't -- and just how what -- and. >> it's very different.

and playing field and powerful -- not the real hamilton and that needs to be and it's important to understand the founders and it's not that

this is new terms of now we've moved on and it's going to keep happening. we have to engage and we have to actually teach the lessons that are distinguished with real historians do as opposed to popular culture, our knowledge matters and we have to defend it. >> so if i can jump on that, i want to make a distinction between hollywood and broadway because while miranda is extraordinarily powerful and popular and it may be made into a movie. it's making it into a movie is going to put it in a way and change it in a way that we'll have a profound effect on it. i don't know who remembers rent.

so. >> changed it. so it wasn't as successful so there was something that was contingent about the liveness of it and the fact that it would change from night to night, whether you had a tragedy that would reshape it, for example, those of you who saw the tonys and they remembered that they took the guns out of the performance, the hamilton performance because they didn't want to put that on stage. there's a profound change in the way it's being staged that's contingent on historical moment. so i think the broadway liveness

we lose that lexicon and i'm wondering if the same thing will at some point happen with the way it's working on it. maybe you go to your blog and you get to display what it meant to you. i think we always in the world where the power brokers are going to tell us what it meant and so we have to contend with that, as well. yes, we may be.

>> what nobody has mentioned, they didn't mention it last night and nobody here really mentioned it either, the play doesn't end with alexander hamilton, the play ends -- it ends with a list of the accomplishments and all the things she did. i kind of woonder, why don't we ever bring that up. why -- i know a lot of us -- but why don't we kind of pay attention to the fact that this

play is about more than one hamilton. it's about also what she doe 8sds erm 34dsing wooi o'2qu4sds sd 9z stw sxwh not sure if it'se she's seeing hamilton or she's seeing the audience and realizing his story has been told. i guess i'm wondering -- >> because turn out really wants to turn elizabeth skyler into nancy reagan and she's also the hamilton family or part of the production of creating the memory of hamilton. in fact, very effective, as we know, some founders have good people who preserve their papers, preserve -- recreate their identity and hamilton is quite skilled in that. and elizabeth skyler hamilton was in the forefront of playing that role, which is a traditional role of women, protecting the reputations of their dead husbands, dd

soldiers, the dead family honor, the dead family legacy. >> and i completely agree. i will just add to that, it's partly because the way i read it is, it's still really about him. i mean, they want -- i mean, they sort of want to make it about her. it's still really about him and how his memory will be preserved, how he could have done so much more. and it's a beautiful poignant song about how when she sees the or fan she's helping him reminds, she sees their eyes. i mean, it's a beautiful song, but it's still about him. i mean, to me that's how it functions in the musical. >> we've run out of time. >> oh, i'm sorry. >> so i want to thank everybody on the panel.

and i hope we've cast light rather than shedding heat, especially today. . . . . . . . . . . . . . . . . . . . . .

>> that happened at 1804 at the young age. for short, the ha ha society. we've had many discoveries and we just revealed three new ones this past thursday liberty hall, check on that -- online for that needs to give special thanks of number of organizations that made this program possible today. especially trinity church, who hosts this partners with great spirit and great support con --

c -- and the members of the haha society and the board of directors all worked hard to bring this together. we had 32 ents and 20 locations over 10 days. and it took everyone's support and encouragement. the haha society joins two honor hamilton's life and his legacy. in that light to the awareness society will be presenting the first hamilton legacy award to ri richard for his two decades of his work to educate the public. the revival of history can be traced to mr. brookheiser's work, i'll give you four examples. after reading about and writing a studying a book, he saw that, wow, there's someone, a right

hand aid and man in his life, alexander hamilton became intrigued and wrote a tremendous book in 1999. the book is only 220 pages long, that deserves an award. if you can tell alexander hamilton's life and all the dimensions of it and 220 pages, it's magnificent. the other thing that we really impersonate and really gets the true hamilton and going to the primary sources, it's been really helpful to the cause of looking for people and about the accurate characterization where many of us didn't hear about him because of the mischaracterization, so we thank him for that book and really was quite accomplishment. number two, he was historian cure rater the man who made

modern -- -- how many were able to see that. how many were able to see that, good. he worked with the institute with jim and nicole, and then there were these alexander exhibit panels that were produced, and it was so excited, we went down where alexander hamilton was born and there were those panels. we were at the patterson museum, yesterday, sorry, sunday and there were those panels, so articulately tell the story of all the dimensions of his life, number three. mr. -- called rediscovering alexander hamilton and that came out in 2011. now, all of these resources created a foundation from years ago that resulted in great scholarship and content of much renown. they have become the core resource material this year, you

may have heard the support of thestitute, along with the rockefeller foundation and the hamilton musical, all came together to serve 20,000 students to see that over 18 months. and that rich content was because of the work of him over many years, and quite a hamilton legacy. because it was original continued efforts to share alexander's story, richard is very deserving as the first recipient of the hamilton legacy award, which reads "richard is here by presented with legacy award, for decades of outstanding service and dedication, to educating the public about the contributions of alexander hamilton to the united states of america. the alexander awareness society,

2016. let's thank richard brookheiser. >> you have to have them, but they're not enough. they have to be made real in the world, you have to work for them. and the same is true of memory. we have to remember what we've done right. we have to remember what we've done wrong, but memory is not automatic. it has to be informed and it has to be cherished and encouraged,

and the alexander awareness society does splended work in that regard and it's a great honor to be recognized by them. thank you. in the hamilton musical, it in the hamilton musical, it ends with a profound perspective and a set of question. who lives, who dies, who tells your story? i would like to answer those in three parts. who lives? we all live in hamilton's america. it was alexander hamilton that created the visions and shaped the foundation upon which the united states of america achieved greatness. who dies? on this date, july 12th, 212 years ago, alexander hamilton

died defending his honor. such as he would say to be in the future useful. in 18 minutes, will be marked the 2:00 passing of alexander hamilton after 30 years from his injury from the duel. he often chose the nation while being over his physical, financial and family's well-being. who tells your story, we are most privileged to have richard brookhizer tell the story, alexander hamilton, the man who made america prosperous. ladies and gentlemen, richard bro brookheiser. >> so, how did hamilton make america prosperous? i think we have to look at three

things. we have to look at the arc of his life, where he came from, and where he went. anyone, we have to review what he did at the height of his life. then, we have to consider what inspired him, what most moved him. hamilton, as you know, was an immigrant. there were several other immigrants among the founding fathers. horatio gates, robert morris, james wilson. these other men all came from the british isles. hamilton was the unique immigrant from the west indies, born on the island of nevis, raised on the i'll of st. croix, in the virgin islands. in the west indies in hamilton's lifetime, mid to the late 18th century, was like the middle east today. it was the place where the thing that everyone wanted came from.

today, that's oil. in the 18th century, that was sugar. the wealth that was generated by west indian sugar was fantastic. when hamilton was six years old, 1763, the french and indian war ends, also called the seven years war. at the end of this world war between britain and france, britain had conquered so many of france's colonies that they had to give some back. they couldn't possibly hold all that they had won. so there was a serious debate in the british government, should we keep canada or the island of guadaloupe, half of north america or one sugar-producing island? they decided to give back guadaloupe and they were fiercely criticized by the british business community. how could they have done this.

canada is only snow. guadaloupe is a sugar island where real money is being made. that was a sign of how valuable these islands were. hamilton saw the commerce that was generated from the ground up. his first job in christian stead in st. croix was for merchant house named beetman and kruger. it was headquartered in new york city, branches in the west indies and another branch in bristol england. the kruger that ran the brings stall branch became a member of parliament and represented britain along with edmond burke. that's another sign of the importance of the sugar trade and the wealth that it generated. hamilton was not bound for parliament. he was a clerk in the store e saw from the bottom, from the ground up, how trading was done, how money circulated, how deals with made. he also saw the enormous

disparities in the holding of this wealth. most of this money went to planters. many of them didn't live in the islands where their plantations were. jane mansfield's novel, mansfield park, sir thomas ber frum is a plantation owner in an teague qua. he comes back from england. many never left england, france or their home countries and their islands were run by overseers. beneath the planter class, there was a small service class, agents, merchants, a few professionals. this was the class to which hamilton's p parents belonged, james hamilton, rachel faucet. he was a merchant agent. she owned a small store. the vast bulk of the population was slaves. the population of nevis when hamilton lived there was 10,000

slaves, 500 white people. the population of st. croix was 22000 slaves, 2000 white people. the average life span of a field hand who was brought to the west indies from africa was seven years before he was worked to death or before he died of diseases. the planters were not so concerned with that, because there was always another slave ship coming in. beekman and kruger sometimes dealt in slaves. when hamilton lived in nevis, he lived just down the street from a large pen where the slaves fresh from africa were held before they were sorted out and put on smaller ships and sent throughout the west to the british west indies. this was the social system that hamilton grew up in, heavily skewed, no opportunity to rise. he managed to get out because of

his own brilliance and because of his luck. he was a very smart boy and a smart young man. his employers recognized that. so did the local minister and christian stead man named hugh knox. he had connections in the north american mainland. when hamilton was a teenager, he was sent to north america to be educated. the plan was to get him trained as a doctor and he would come back and practice. the first plan was to send him to princeton. that didn't work. he went to kings college, which is now columbia and then just up broadway from this building. this is the second important location in hamilton's life. the fact that he came here to new york rather than to philadelphia or to boston, which were the other significant cities in british north america. philadelphia was the largest,

new york had passed boston to become second and was gaining on philadelphia. they were all commercial cities. boston and philadelphia had been und founded as hollily cities. they were religious experiments. boston was the city on the hill. philadelphia was the city of brotherly love. some of that atmosphere still clunk to them. new york was always and only about getting and spending. the dutch founded it as new amsterdam, as a trading post to take furs from the ear acoy indians and ship them back to holland. as the fur traffic died and withered, they traded other things. the english acquired the city. it kept its character. i'm sure you all know the founding myth of new york. that was that it was bought from the indians for $24 with beads

and trinkets and tools by peter minuet in 1624. the way the myth is usually told is that the poor indians were cheated because for $24, they gave up manhattan island. the land is worth billions and billions now. i have heard some tellings of the myth in which the indians who sold manhattan didn't actually live here. they were just passing through. there may have been some double dealing on both sides. but myths always tell a truth and the truth of that myth is that the soul of new york is commerce. that's why people live here to make it, to get ahead. hamilton was coming from one commercial place to another very commercial, inately commercialle plate. it was more equal. by no means a paradise. new york was a slave city in a

slave colony. when hamilton came here, the population of the city was about one-sixth slave. they worked as house servants. they also worked on the small farms in what is now brooklyn and queens. the city was doubly bound to slavery, because what was grown and produced on those farms, the food, timber, fabric, it was shipped down to the west indies to be used by the slaves and the owners of the slaves there. so there was still slavery here in new york. but there were other things going on. there was a lot of commercial. there was also some manufacturing. it wasn't supposed to happen under the british mer can till system. all manufacturing was to be done in england and the home country and be shipped out of the home colonies. people got around the rules an laws as i hear they still do in new york. so there was manufacturing here then. so hamilton came from a place

that marked him and he moved from a place that continued to mark him. he never graduated from columbia. he left his college to fight. he started in a student militia company. then, he became a captain of an artillery company. he was noticed by george washington, put on his staff as a colonel where he served for four years. finally, at the end of the fighting, he was given a field command at the battle of yorktown. after the war, he came back to new york. he made his money as a lawyer. he also briefly served in the new york assembly and in the continental congress. he was sent as a delegate to the constitutional convention in philadelphia in 1787. he wasn't very regular in his attendance. after the constitution was

written, he took up the job of campaigning for it in the newspapers. here, his performance was stellar. he organized a series of essays, we would now call them op ed pieces in the new york newspapers. new york was crucial, because it had an anti-constitution governor but a central location. if new york stayed out of the country, new england would be split off from the rest of the country. so new york was a must-win state. hamilton found two col lab bore raytors, james madison, jon jay, a former diplomate and spy master. the three of them wrote 85 essays for the new york newspapers. jay got sick early on. so he only wrote five. madison write 29. ha hamilton wrote 51. they came out at a rate of four a week and reached 2000 words long. some weeks there were five.

one week there was six. columnists in the new york time today, paul krugman, david brooks, they write 750 words twice a week. so this was greater frequency, greater length plus they are also immortal. after the constitution was ratified, george washington had to pick a first treasury secretary. he first asked robert morris, who had run the finances of the country during the second half of the revolution. morris was the richest man in america but he didn't want to do public service again. he wanted to make money. so he recommended alexander ham hamily ton saying he was dam sharp. washington knew that already. hamilton had been on his stuff. he becomes the first treasury secretary of the united states september, 1789 when he is 32 years old. now, we come to what he did at the climax of his life.

the problem that he faced was debt. wars cost money. the united states had no money. we had gone through the war. 8 1/2 year war, longest war we fought until vietnam. longer than the civil war and our portion in world war ii put together. we couldn't pay for it. the government under the continental congress and the articles of federation could not tax the states. they could ask the states for money. if the states wouldn't or couldn't pay, they didn't have to pay. robert morris said at one point asking the states for money was like preaching to the dead. so they did other things. they printed paper money. as unbacked paper money always does, it inflated away until it

was almost worthless. they called in the old dollars and said 40 old ones would be worth one new one and they issued new money. that began to inflate in turn. they kited their bills, did funny stuff with their creditors. they took out loans. they took out loans from the rich people who existed in america. they also got loans from dutch bankers who were willing to run a risk. they got loans from france. they scraped through at the very end of the war, the soldiers marching to yorktown would not have got there, because they had not have been paid. a french ship filled with silver was part of the french armada that came to participate in the yorktown campaign. that campaign was funded and america won its final victory. after the war 1783, the larder

was truly bare. our debt was trading in europe and amsterdam and antwerp at a quarter to a third of its value. it was essentially junk. so what did hamilton do? he had going for him the fact na the new constitution did allow the federal government to raise taxes. so that was a plus. he made two early decisions of great consequence. one was called assumption. the other was called nondiscrimination. assumption had to do with the fact that there was not one american debt but there were 14. there were the debts owed by the united states and there were the debts owed by each of the 13 states. the 13 states had raised their own troops. they had made their own expenses in the war and some of them were badly in arears.

massachusetts, in particular, and also south carolina. there was ill-feeling among the states because some of the states had paid off their debts and they thought, why should we take on obligations by the deadbeat states? not all the states who paid their debtsone it honestly. north car ca north carolina announced they would knock off 20% of their debts and pay the rest. rhode island had paid its debts by printing paper money. there was a lot of suffering and sharp dealing on all sides. hamilton's argument was that the war had been a common struggle h all the states were fighting together for the liberty of all. for the whole country. he assumed the debts of the 13 states along with the federal debt. they would all be treated as one debt and be paid off at one time. this was the decision for

assumption. nondiscrimination had to do with the creditors, the holders of the debt. most of them were soldiers that had not been paid during the war. they were not paid but given ious. they were sent home with their ious, promises of future payment. over the years, some of these ious had been sold. if a soldier needed money immediately, he might sell his iou at a discount to a merchant or maybe he would sell it to a speculator, someone with resources who thought, well, maybe one day these things will be paid off. let me buy them up from soldiers. the ious had been traded. everyone agreed that soldiers should be paid off at their full value. these men had suffered for the country. they had fought. they had bled. many americans felt, why should

we pay off speculators. any haven't fought. they haven't bled. they were simply looking for a profit. hamilton knew the way the borld of money works. he knew if debtors pick and choose among their creditors, they can do it once. they won't be able to get a loan again for they can, it will be at punishing rates of interest. he said, there should be nondiscrimination. that all the creditors would be paid off at a common rate. he was able to get congress to agree to this too. he had to do some bargaining to make this happen. the most consequential deal was to move the capital of the united states from new york where it was then sitting, first to philadelphia for ten years and then to a site in the potomac, which was as yet undeveloped is now washington,

d.c. so we incurred a future of murderous washington summers but not america's debts paid off in a timely fashion. that was due to hamilton's foresight and his clever deal-making. he also had an insight about how to handle the debt. his intention was not to pay it off and make it go away. he wanted to manage the debt. he wanted a debt where regular payments would be made on the interest. his insight was, if you did that with debt, it turns from being a liability into being a resource. people see you are not struggling under a burden. you are maintaining. so they are willing to extend you credit. debt becomes credit. debt can become money.

if you have a credit card, you know how this works. if you have 20 credit cards, you know how this doesn't work. debt has to be managed carefully. that was hamilton's intention. his way of managing the debt was a new thing in world finance. only two countries had gone this route. holland was the first. england followed with the bank of england. early in the 18th century, france had tried to join the new financial world. the man in charge of their debt was not carbcioutious, a man na john plau, a scotsman. brilliant but literally he gambled, and certainly gambled with france's mon think. the smashup was so terrible, the french have been suspicious of banks to this day. most are not called banks. john law. that is how deep the suspicious

of banks and banking goes. alexander hamilton was going to take this small country on the edge of nowhere and make it the third country in the world in the new world of modern finance. there would be many bumps on the road after his death. people did not maintain his policies. we would have panics and depressions. he got us off to a solid start when he came in as treasury secretary. as i said, our debt was trading at a quarter to a third of its value. when he left, it was trading at 110% of his value. he had made it worth as good as gold. so the money men of europe were willing to pay a small premium to hold it. the phrase we use for poor troubled new nations is banana republic. most of them are in countries where bananas grow.

america was on the way to being one of those countries. if hamilton had not lived and served, the phrase for a troubled new nation would be maple republic or pine republic. we would have been the first one. he helped us to avoid that fate. he wasn't doing it only to balance the books. he wasn't even doing it to expand the economy. he had a further vision in mind. that's what i want to end with. we can see it in his report on manufactures. the alexander hamilton awareness society had an event at the falls of the passaic, where the passaic river drops 50 foot on its way to the atlantic. hamilton saw that during the war, he had a picnic there wa george washington and lafayette. he saw, this is a source for power. this can be used for factories.

there were some problems with hamilton's plan. the first director turned out to be a crook. he embezzled funds. factories did come to patterson and they did come to america. in a report that hamilton issued to congress, he talked about the benefits of a diverse economy p to the united states. he said, we have agriculture. we have commerce and trade but we also need manufacturing. we need all we can get. he went into great detail about the kinds of things that could be made in america. one of the people he found was samuel colt, who built a factory in patterson and then moved it to hartford and the colt pistol and weapons were produced by colt and his descendants. he was one of hamilton's talent picks for the patterson great

falls project. in his report on manufacturers, hamilton talks about what manufacturing and economic diversity can do for people. he wrote what i consider to be the most eloquent, the most moving words he ever wrote. he said that minds of the strongest and most active nature can fall below mediocrity and labor without effect if confined to uncongenial pursuits. but were all the different kinlkinds of industry contained in a community, each individual can find his proper element and crawl into activity the full vigor of his nature. he have each individual can find his proper element and call into activity the whole vigor of his nature.

hammel fon is going beyond dollars and cents. he is even going beyond diversity. he is looking at an economy's effect on people. i find this moving, because he is writing about himself. he could so easily have fallen below mediocrity and labored without effect. if he had stayed the rest of his life in the islands, that would have been his life story. but through brilliance and luck, he got out and he had a career. but unlike some people who rise from nowhere and make it, he thought about other alexander hamilt hamilton. he wanted to make a world that would be easier and better for them. that's what he wanted the american economy to be. that's what he was atrying to create. we are here to celebrate his life. we are also commemorating, we have been calling it his passing. let's be honest, his death.

his death in a duel which i believe was needless. i believe was tragic. it makes me angry with him whenever i consider it. i remember the first time i went to weehawken, where many of you have been. the dueling site is long gone. it was a ledge over the hudson about 20 feet up from the water. it was dynamited in the 19th century to put in a railroad. now, at the top of the cliff, they have a tiny little park. it is not much bigger than this lectern. they have a rock against which hamilton is said to have leaned after he was shot. there is a flagpole and a fence. there really isn't much to see there. what there is to see is across the water. it is right on the hudson. when you look to the east, you see all of manhattan p from the

battery all the way up through midtown up to riverside church. the manhattan mountain range of skyscrapers and apartment buildings. i knew that if hamilton could see that now, he would say this is why i came here. this is what i worked to build. use it. thanks very much. [ applause ] >> mr. brookhizer has been

gracious enough to be willing to take some questions and to answer them. please, for consideration of other people if you could keep your questions short and make them questions and not statements, it will make for a very special time. you will see in the middle at the front, here is a microphone if you want to come up with a short and terse question, that would be very helpful. thank you. >> yes. in isn't the constitutional convention. hamilton gave one speech that was six hours but we are not going to emulate that. yes, sir. >> did hamilton have any economic interest in any of the enterprises built at the great falls? >> i can't say that he didn't have a dime in it but hamilton was probably the poorest treasury secretary we ever had. his money came from being a lawyer. a lawyer. he was a very good one and a

very well paid one. after he retired from the treasury and was back in legal practice, his finances had taken a hit because of all of the years he had spent as treasury secretary. he hoped to recoup and he expected to be able to leave his wife and children a nice estate. his death cut that short and his widow and his family was in very straight circumstances afterwards. >> the reason i ask the question is that there is an attack on hamilton currently that really is an echo of attacks on hamilton that went on during his life and after his life, as i understand it. his wife spent 50 years defending him after his death. >> oh, they have been attack him for a long time. >> the current attack that i hear from my people who maybe once were jeffersonians. i don't know what the hell they are today.

they are saying that hamilton, this exploiter of everybody, only built the great falls dam because he owned the land or had a financial interest in manufacturing. i didn't believe it. so i'm glad to hear you agree that it is a lie. >> right, right. you can always ask them, do you want to live in a poor country? would that be better? any other questions? >> yes. here is one. >> you mentioned something that i think is very sophisticated talking about the end. every person is a specialist. maybe you could talk more about specialization of labor, which you didn't talk about, which is a big part of capitalism that seemed to be a part of the end of your talk. each individual, his own personal talents and professions being specialized in. >> right. >> the report on manufacturers

is very long. nair is a lot in it. it is easy to miss this para graph. it leaped out at me as a biographer. i did have the sense that hamilton was writing about himself, which he rarely does. he is not a self-analytical person. he is not very self-reflective. he never kept a diary. some of his letters talk about himself. this is true of most of the founding fathers. they weren't generally an inward-looking lot. john adams was. he had some of that puritan self-examination. he keeps a very detailed diary. i thought here for a surprising moment, it is like the mask slips and we are seeing something about the inner man. he probably and perhaps is not even aware of it. he is perhaps not even aware

this is his own life, how it could have gone. his alternate life that he is describing. it could so easily have happened. he work ford a merchant firm that was head quartered here. that's one break. he had a minister who had been educated at princeton. that was the second break. when he was a teenager, he wrote al a let tter that flattened st. croix and it was published in a newspaper, the royal danish gazette. some people read this and thought, this is a bright kid. let's give him a boost. you could so easily see none of those things happening or just short circuiting somehow. necessary what he could have been. i just see him wanting to change the deck for future players. very inspiring.

any other questions? >> i know you've seen the play hamilton. if your books had been the source of material, is there anything you would have changed or added or do you think it is perfect the way it is? >> i love the play. i saw it at the public theater. i reviewed it. they made me pay for the reviewers ticket. lynn manual miranda read ron chernow's book. we agree on everything except theler manily t letter hamilton. the question was, was he born in 1755 or '57? anyway, no. the one thing that the play does and i see why they did it. they make aaron burr into

basically a nice guy. he has no ideas and he does kill the hero but basically, he is a good sort. 234 is done for dramatic reasons. you want an antagonist who is not just a villain or a mustache-twirling villain. they are trying to make a kind of a, not a parody between him and hamilton but not nothing lopsided. certainly, burr had many admiral qualities. he was a brave man. he was an intelligent man, well-read man. i just see something cold and empty at the heart of him, which is not the way lin-manuel miranda xhoez chose to go. it is not the way that chernow goes. his view is very dark, indeed. >> any other questions?

why don't dyou do that so everybody else can hear? they also were able to speak to huge rooms in the 18th century and they did it differently. it must have been like singing. >> i would like to ask you a question that i asked alexander hamilton actor n. i asked the question in front of professor joann freeman. he didn't give me an answer. the actor in his portrayal of hamilton was offended by my question. i would like to ask you, was alexander hamilton romantically in love with his wife's sister? thank you. >> you know, yes, but did they have an affair, that, i don't know. we never know. certainly, this is his wife sister, angelica.

betsy schuyler was one of a number of schuyler daughters. her sister, angelica, married a man named john church. it was john church's dueling pistols that were used in the fatal duel with aaron burr. i've seen them. they are really good-looking, which makes it terrible. i mean, these are fet i shized, artistic objects of gentlemanly death. it is really chilling to see these things. incidentally, dueling was also illegal in new jersey. it was illegal everywhere. deaths and duels were considered murders but they were never prosecuted. jury nullification. no jury would have convicted, because that's what gentlemen do. it was a parallel and wicked system. we lived with it.

but so, okay, there were these church sisters and clearly angelica is mrs. smitten with hamilton. she writes these letters to him and about him. she reminds me of a character in a jane austin novel. one of these characters that are amusing because of how annoying they are. they are always in your face and putting their emotions before you. i think hamilton was very flattered by this attention. he had an eye for the ladies. he is not the only person you can think of who falls in love with a whole group of sisters simultaneously. mozart did that, charles dickens did that. it is a common pattern for someone often maybe from the margins and they meet rich, glamorous or attractive sisters and they pick out one whom they marry but they are just all in love with the whole crop of them. they are in love with him.

so that's my best answer. i mean, there is no solid proof of anything more than that. yes, i think there was a kind of erotty sized quality to the whole relationship with all the schuyler girls. >> thank you so much for your attention. [ applause ] >> you can tell by mr. brookhizer's knowledge and the depth that he has, there are many historians. there are many biographers, many authors, many journalists, very few have the scholarly depth and width that mr. brookhizer has. i just wanted to share this with you all today. we announced it last week. richard brookhizer has also been

designated as a national hamilton scholar which reads, for exemplary scholarship, research, and writing to provide accurate, objective, and insightful information to the public about the united states of america's remarkable founding father, alexander ham inton. the alexander hamilton awareness society, 2016. thank you for your service to alexander hamilton. >> to conclude, we just want to let you know if you haven't gotten one of these, you can ask for it afterwards. we have a number of more hamilton events upcoming. hamilton on the hudson, the lower part and mid-hudson valley region. that's the july 15th to the 17th and the trinity church archives is going to be original documents. i believe also baptism certificates of five of

alexander hamilton and the lives of hamilton's children. we encourage you to see that. thank you so much for coming. keep following and cheering on alexander hamilton and his contribution. c-span where history unfolds daily. it was created as a public service in 1979 by america's cable companies and is brought to you today by your cable or satellite provider. with the supreme court back in session, we have a special web page to help you follow the court. go to cspan.org and select supreme court near the right-hand top of the panel. once there, you will see the

calendar of this term, a list of all current justices and with supreme court video on demand, watch oral arguments and recent c-span appearances by supreme court justices. at c-span.org. this afternoon, a look at senate, house, and governor races to watch across the country. we'll hear from political analyst, charlie cook and amy walter, from the cook political report. that's at noon eastern on cspan2. on c-span, 2012 republican presidential candidate, mitt romney, talks about the legal system and how it impacts business and the economy. live from the u.s. chamber of commerce at 12:15 eastern. yesterday, attorney general loretta lynch discussed relations between law enforcement and students at black colleges and universities during the historically black colleges and universities national conference. she speaks for about 25 minutes.

good morning, good morning. welcome to day two of the national hbc uconn ferns. how has the conference been so far? wonderful. this morning, i have the honor of introducing the attorney general of the united states, loretta lynch. we can think of no better person to frame our education justice discussion this morning. to members of congress, she said that the divide between law enforcement and the communities they serve is the issue of the day facing our nation. by recognizing our common humanity, our common laws and our common goals, we can, in fact, work on this difficult

problem. we could not agree more. as the daughter of a retired minister, and a lib brare yan, attorney general lynch says their commitment to justice and public service shaped her interest in this work. a graduate of harvard law school, she joined the united states attorney's office for the eastern district of new york in the '90s. there, she forged an impressive career prosecuting cases involving violent crimes, public corruption and civil rights. she is an advocate for justice and a defender of civil rights, as you know. as attorney general of the united states, she has been a steady voice for justice in some very tough times in our country. from the charleston church shootings to the shootings of citizens at the hands of police, to the shootings of police at the hands of citizens, and the orlando nightclub shooting as well, she has been there,

calling for calm and bringing us together. in times of unrest, our attorney general noted, we must reject the easy impulses of bitterness and ran core and embrace the difficult work of finding a path forward together. today, as we continue the conversations many of you are having on your campuses and in your communities, we are honored to welcome to our hbcu national conference, our attorney general, loretta lynch. >> good morning, everyone. there we go. how are we doing? how is the conference? how are the hbcus.

yeah! that's what i want to hear, what's what i want to hear. thank you so much for having me. thank you, doctor kim hunter-reed for that gracious introduction. the leadership on hcbus. something that should be at the white house because it is vital to the life's blood of all of our communities. let me thank the department of education and secretary king for helping to host this conference. we have some tremendous panelists here. i think you are going to hear from some of them later on today. my colleague, nancy rodriguez, who directs the national institute of justice and calvin hudnet, d.o.j. special adviser for campus security. i want to thank all of you, all of the hbcu leadership, faculty, students, consultants, those of you who care about what is in my opinion, one of our national treasures. thank you for being here today

and washinging on this issue. when i look at you, i see the life blood, the life blood of our nation's hbcus. together, you are writing a new chapter in this proud legacy of service, of enrichment and empowerment, not only for african-americans but for all americans. this country is better and stronger because of you. now, as everybody here knows, hbcus have long been instrumental in in nation's rather halting progress toward equality for all. you have been the backbone of a rising economic and educational tie for african-americans since before the civil war. people don't think about that but this has been part of american history. you have trained our leaders like due voice and thur goode marshall, march thin luther king jr. and ella baker. during the civil rights movement

of the '50s and '60s, it was the hbcu students that led the way. from the effort of the student nonviolent coordinating committee, that group is close to my heart. it was founded at my parents alma mater, shaw university in raleigh, north carolina. yes, i am a shaw baby. my parents met and married there and made the friends of their lifetime and learned and got the grounding that would support not just them but our entire family for so many generations. we all remember the lunch counter sit-ins of the '60s, when four young men from north carolina a&t, walk nood that segregated wool worths in greensboro, the scity of my birh and asked to be treated like anybody else. this has been the story of hbcu

courage and dedication and commitment over the years. it sounds like a simple ask, right? all you want to do is to be treated like everybody else but as we all know it is as complicated as the history of this country. the greensboro four, we know, were met with scorn and dir riggs and they per sited. some of you have had the opportunity to visit our most wonder new museum, the smithsonian museum of african-american history and culture where one of the stools they sat on is on display. you have to see it. it is just one but it is in there in the educational section. i was able to visit it the other day. it holds a particular significance for me, not just because i was born in greensboro

and not just because my father, a young minister, allowed the student young activists to meet in the basement of his church, providence baptist church and not because of this audacious for its time act of civil disobedience, changed literally the very neighborhoods and the schools that i grew up in. when i look at that stool, they are enshrined in one of theost wonderful places on themall, what it says to me, what it illustrates for me, is what the hbcus have always given us, the ordinary individual's ability to change the world. to strike a blow for justice. you don't have to have a name or a title. all you have to have is a commitment to an ideal. that's what hbcus have given be

us for so many years. it is also the case that our students are our leaders. they refuse to accept the indignity, they refuse to accept the insist on change. that's what is happening today. the same lessons of the hbcu of 50 years ago are the ones that we have to rely on today.

that spirit is what we need today. the dedication and commitment and the ability to hurl yourself into the fray armed with just nothing more than the knowledge that you're right. that's been the training of our hbcu's. that's what the young people have done and now we have young people that are confronting the challenge of our own time. the issue of today. what i feel is one of the most important issues facing the nation now and that's the relationship between law enforcement and the communities that we serve especially our communities of color. this is the issue of today. not only is it defining interactions between people and law enforcement, it's influencing how people feel about government rich large. the relationship of the overall

government to our citizens. this issue -- this issue of the defrayed relationship and distrust and the pain we see quit frankly is old as our country, but as resent as the evening news. that's where we see it. you know we have seen it because the pain of the minority community is especially captured in what we're seeing today. i know it's hard to look at a lot of these things the viral videos of lost lives are painful to watch and painful to see. they underscore this issue like nothing really has and they have actually allowed us to move beyond the de9/nials and to hava

discuss on what so many people in the minority community have been talking about for generations. we know the denial and people that don't have the similar experience and say i don't think that it's that bad. you must have miss understood. no, i don't believe anybody would do that. so it's painful as today's environment is, it's allowed us to to move past that stage and to to bring the minority experience in the forefront like a time that we have not seen since 50 years ago in that civil rights movement when the television cameras showed the young people in the streets. showed the young people being met with the dogs and hoses and the hbcu students fighting for their fights and standing up for their rights and illustrated the star treatment in the government's -- stark reality in

the government's community as black and white citizens. as painful as the images are, they have allowed us to have important conversations with community members and with law enforcement. they have allowed us to talk act the issues and talk about how to change them and to start the difficult process of bringing about real change. these conversations reveal at the end of the day no matter who we are, no matter what we look like, we all want the same thing. we want to be understood as people. not as stereotypes. as individual human beings that had hopes and dreams that want to live lives and for the safety and security, we all want the same thing. we are able to move the discussion and where do we take it. first we hold on to the common bond.

we hold on to what we have discovered out of the pain because whether the loss of life is civilian or law enforcement, there's a family grieving. there are children without parents. there's spouses that have to pick up the pieces and move on. out of the common bond, we can move forward. one of my personal heros is the late great barbara jordan. also hbcu. one of the things that's struck me the most and one of my favorite quotes when she says are we to be one people bound together by common spirit sharing in a common endeavor or will we become a divided nation? well, i know the answer. we made that choice. we made that choice 200 years ago. we made it 50 years ago to come together to call on this nation

to live up to it's promise to all of it's citizen so that we in fact can share in that common endeavor. this is the work of our time, and all of us have a responsibility to help carry that effort forward. that's when i become the attorney general, i made rebuilding the trust between communities and law enforcement one of the top priorities. one of the top things i was going to work on. we have worked on that in the department in a number of ways. i have done a 12 city tour and we have convened a series of justice forms and we have continued the justice department's efforts to give law enforcement agencies the tools and the training and the equipment that they need to serve their communities fairly and affectively. these are important efforts and the department of justice is committed to them. ultimately as we have seen through our history, change comes from the community.

change comes from our young people. change comes through all of you and here is where hbcu is uniquely posed to play not just a pivotal but a leadership role in the effort. we need you to do this now. you're the thought leader of today. you are the think tanks of the community. you have the best and brightest students, but you also see these issues and see the consequences of ignoring them. you know -- you know in particular that an educational institution for those of color is preparing them to move into a world that's going to change everyday and a world that's going to grow and thrive and lead. the young people are leading. they're out there marching in th streets and working on the issues. they're also focussing on the

issues. just a few weeks ago i was at howard university for a forum. an outstanding forum put together and the purpose of the forum was to bring police officers and young people together to have the honest discussions that we have to have. to come and have the understanding of the issues, goals and desires that we have to have. to learn so that we can have the mutual respect that we have to have. that we all have to have. they have discussed everything from the law enforcement to also the roles of the young people and the people of color play in diverse identifying and building the law enforcement agencies of the 21st century. the people that protect the community have to come from the community. the people that protect and honor the community have to be of that community.

they have to understand that community. in fact it's our responsibility to protect our community. it was a tremendous gathering and they were tough conversations and they were honest conversations and they were respectful conversations. it highlighted for me the hbcu's unique ability to convene the stalking holders in the discussion. you can hold them together to forge the coalitions. you have the connections to bring the groups together and also to drive a meaningful and productive discussions on the steps that we have to take together. we have to take them together to make sure that we don't lose the progress of the last eight years or 15 years but build on it for a brighter future for all of us. that forum to me respects the kind of work that i know hbcu's

are doing throughout the nation. i know that they're the thought leader in the field because this is what they're doing throughout history. it's what all of you have done since cheney was founded and lincoln was founded and reconstruction and so many other great schools came into being. ever since my parents walked into shawl and beyond. that's what we need you to do today. it's the challenge to issue to you and pick up the man tell and have the conversations. you provide a safe space for the conversations. y you use it to channel it. i need you to use the championship here to.

i need you to be the voice on this issue. this is our issue. it's the issue of our time. you're training the activist and leader tomorrow. your students are going to be leading the fight. they already are, and i tell you the conscience of this nation cannot rest until all americans feel not only respected but protected by our laws. i have been a prosecutor for years and how we handle the system of laws tells people what we value in this society, whom we value in this society and what we think is important. if we're not involved in shaping that discussion, shaping those laws and shaping those thoughts

and we have move forward by grabbing the opportunity and seizing the moment. we do the community of thought and learning of the hbcu's and making the changes that this country that all americans have benefitted from. that's what the issue of community and police relations is about for me. are we going to be content as so many of the family members and friends and fellow americans feel that the law works not for them but against them. can we rest while anybody has that feeling? can we sit back while the young people struggle under the burden? can we not engage? we can not afford to do so. we face that question so many times before o every issue of

the day and on the important issues that in fact have moved the country forward. it's come to this community to decide how we will take a stand and every time we have given the same answer, we will be there. that's the answer given by the opportunities that began the busb bus boycott it was at the lunch counter that i urge you to go and see and the same answer by the young graduate john lewis when he lead the march across the bridge named for hatred. he turned it into a bridge of peace. every time the answer is we will be there, and hbcu's i need you to be there now. i need you to be there in this issue and for the young people.

i need you to be there in this time because we will not be satisfied. we can not be satisfied until the promise of this country and the promise of liberty and equality is made real. not just real but felt for everyone in this country. now i know that in so many areas and so many ways this is what they call preaching to the choir. you're already working on this. i know from reading about this conference and i know from this agenda that this is the mission and this is the calling. i want to thank you all. students, faculty, administrators alike for the contributions to this work. i want to thank you for realizing that the struggles of yesterday give us the strength to move on to the fight of today. i urge you to continue to find those ways to be a voice for justice in the society. not just on the campuses, but in

the world beyond. the world that we have always prepared young people to attend. the world that hbcu's have always been the backbone of preparation courage and commitment. as you continue the work that this department of justice will stand by you and support you as you take up the leading causes of today. hbcu leader and community members, thank you so much for the work, your time, for your dedication and most of all, thank you for supporting the education and the advancement of our national treasures. thank you so very much.

thank you all. thank you. thank you all. former republican nominee is speaking on legal changes that could impact the business on the economy. c-span will have live coverage at 12:00 p.m. eastern. and then hillary clinton live in tampa, florida. the poll released today has trump ahead by two points in florida. the and polls show the plin state is coming into play. you can see that event live at c-span 2 at 5:30 eastern.

and then the senate races with the coverage of the candidates debate and speeches. c-span where history un folds daily. american history tv prime time continues while congress is on break. tonight the civil war and reconstruction. it begins at 8:00 eastern with gettysburg and then after the civil war and then freed people's refugee camp and american history tv and prime time on c-span3 all this week at 8:00 eastern. this weekend on american history tv saturday morning from

9:00 eastern to just after noon. >> it's the common wealth and last for a thousand years. they say. >> we're live for the conference in washington dc and focussing on the prime ministers temporaries. and then state senator jose and phil collins talk about the spanish commission the alamo in austin. >> the memories that i have at that time was that this group of people were going and they knew they were going to die or they

were there. they kind of -- there was something very noble or romantic. it was not black and white. that's something that would be good in this day and age. >> he would lead attacks and carrying nothing that you see in the left hand. the men looked at this and realized that if the kernel or later if they could take it, i could take it. >> we visit the memorial in virginia to learn about the early life of douglas who commanded allied force in the pacific during world war ii. >> the great leader serve as conscience in chief with the highest level of integrity and the moral lock on drew north and

that we can always count on them to do the right thing when times are tough or no one is looking. >> author and for the complete men history tv schedule, go to c-span.org. from the washington institute for the policy this is an hour and 15 minutes. >> good afternoon, everyone, we're about to begin, if you could take a seat, that would be great.

good afternoon, everyone, welcome to the washington institute for middle east policy. i'm matt levitt. this is the latest in our counterterrorism series. it gives me great pleasure to welcome danny glaser. he's with the office of financial intelligence. once upon a time danny and i served at deputy assistant secretaries better. he can tolerate the bureaucracy much more than i can. he stuck it out and is an assistant secretary. i think longest-serving person in the treasury department on this set of issues going back long before there was a tfi at treasury. and it's a great, great pleasure to hdanny back here today.

it's not his first time in this hot seat. today we'll be talking about the evolution of terrorism financing and in particular the specific issues that go into disrupting the islamic state which has a very different set of means of raising and moving, laundering and spending money. it gives me great pleasure to welcome you this afternoon. those of you with us in the room in person and those participating across the television screen with c-span, so with no further ado, join me in welcoming assistant secretary danny glaser. [ applause ] >> thank you, matt, for that very nice introduction and we were -- matt and i were colleagues for treasury for a number of years and it was great working with him in that capacity and it's certainly been great working with him ever since and it's an honor for me to be here today, to see a lot of familiar faces in the crowd, i'm very flattered that people are interested to come and hear what we have to say about how we are approaching the issue of isil financing at the treasury

department and in the u.s. government more broadly. i think it's going to be -- it's a positive story. i think this is an area where we have great challenges but we've also made tremendous progress and i want to talk about the challenges that we face and talk a little bit about how isil raises revenue, talk about our strategy to address those issues and talk about where i think things are going from there. that's going to be my remarks, my prepared remarks, when we get to the q and a, if people have questions about terrorist financing more broadly i'm happy to address those questions as well. so let me just start, jump right into it and talk about the

unique challenge isil does present us, when you think about terrorist financing, it's pretty -- it's conceptually pretty simple. there's infinite varieties but it's conceptually pretty simple when you think about how we try to address terrorist financing. there's two parts. we try to prevent terrorists from raising money and we try to prevent them from gaining access to the financial system so they can't spend their money. that's it. that's counterterrorist financing in a nutshell. interfere with a group's ability to generate revenue so they don't have money to spend and interfere with their ability to gain access to the financial system so they can't spend the money they have. that's what terrorist financing is in a nutshell with varieties among terrorist organizations in different situations but that's conceptually how we approach any terrorist organization when we think about disrupting its financing. traditionally when we think about terrorist organizations we use very similar tools to approach both, when you think about al qaeda, when you think about any number of terrorist organizations that primarily receive their funds externally we -- by attacking their access to the financial system, we can

both prevent them from generating -- raising revenue and using revenue. what's really unique about isil is the fact that it generates such a substantial portion of its revenue internally. now, we've had -- there are terrorist organizations in the past and currently that control territory, hamas controls territory, al shabab to a certain extent controls territory. but the sheer size, the vast wealth that isil's been able to generate internally really makes it a qualitatively different challenge from any organization we've seen before and it's required us to take a qualitatively different approach from what we've done before. so let me talk a little bit about the first part with isil generating revenue then i'll talk about the second part, interfering with their access to the international financial system. so sources of revenue for isil. the numbers -- wherever i speak

publicly about isil i give some numbers and these are 2015 numbers. these are numbers -- these are estimates that we have from 2015 and what we've generally said is they generated about a billion dollars in revenue, maybe even more than that in 2015 and those are from three different sources, the first source is oil and gas, sales of oil and gas. and the number that we have used for 2015 is $500 million. now i think the number is substantially less than that now and i'll explain why in a little bit but in 2015 we estimate they made probably about $500 million off of the sale of oil and gas. the second important source of revenue is taxation and extortion. people like to say extortion because we don't want to -- the

use of the word "taxation" seems to legitimize isil as a government so we like to use the word "extortion." to be honest with you, "taxation" is probably closer, more descriptive of what's going on as they really do levy fees and taxes among the populations that they control. again, our estimate for this for 2015 was $30 million per month or $360 million per year from taxation and, again, that's internal source. so i've just rattled off $860 million of internally-generated revenue for isil. and then finally in 2014/2015 when isil came and took mosul, there was in excess of $500 million worth of cash in bank vaults in mosul, primarily in the state-owned banks and the central bank branch in mosul. so that's another approximately half a billion dollars that was available in mosul when isil came rolling in and that really

does -- those three things together really make up the lion's share. by far the lion's share of isil's financing. now, there is some external financing that comes. there's kidnapping for ransom, a variety of other sources but those are all, frankly, quite small in comparison to just, again, can't emphasize enough the vast wealth that they're able to raise internally within their territory. so that creates a challenge for an organization like the treasury department, as i said, who -- we've sort of traditionally specialized in preventing these groups from getting access to the financial system. but how do you really prevent them from getting access to

wealth that's internal to their territory? the answer is there's more of a military solution to this than most terrorist financing issues and it's pretty unusual to have an assistant secretary of the treasury stand up before a crowd and talk about military operations but that's precisely what i'm going to talk about for a few minutes, because that's an important part of our counterterrorist financing efforts within isil. the coalition has launched an air campaign called tidal wave 2. tidal wave 2 began in november and is ongoing and the purpose of tidal wave 2 is to attack the entire supply chain in the oil and gas sector. it's attacking the ability of isil to extract oil and gas, its ability to refine and its ability to transport. and this is something we work very, very closely with the defense department on, with the military on and with the coalition and this is a very

deliberate campaign, it's a very intelligent campaign and it's one that i think is substantially impacting isil's ability to extract wealth and to extract oil and gas and to make that available. so that's the first part and that's the military portion. there are other ways to prevent isil from getting -- from gaining wealth from this territory and the most important of those is preventing liquidity from flowing into the area in the first place. if there's less liquidity in the area, there's less funds that can be taxed. frankly it's our very strong view that the very large portion of isil's ability to even get profit from its oil and gas, it's sold internally. we don't think there's a lot of smuggling going on with oil and gas outside of isil territory. the money they make off of that is sales internally, again, going to liquidity. so to the extent we can impact liquidity within isil territory we can impact their ability to profit off of oil, we could impact their ability to profit off of taxation and extortion. the most important step in this direction was about a year ago

when the iraqi government took the decision to terminate the payment of government salaries into isil-controlled territory and instead hold those salary payments in escrow. prior to that decision there was about $170 million per month that was going into isil-controlled territory in the form of government salary payments. that's $2 billion a year. i don't know, i mean, we don't know for sure exactly what the tax rate is in isil-controlled territory but take a conservative estimate and say 10%. 10% of $2 billion is a lot of money to isil. and the decision of the iraqi government to terminate that was a very, very important decision and one that we continue to talk to them about and work with them

on. there continues to be challenges with respect to that decision but i think from a terrorist financing perspective it was one of the most important steps anybody has taken in the area of counterterrorist financing with respect to isil. and finally bulk cash, so the good news about the fact -- the good news about that in excess of half a billion dollars that was in the vaults for isil is that was a one-time take for them. that's not a renewable source the way oil is a renewable source, the way taxation might be a renewable source.

so they're not going to get another $500 million or more from vaults. once they spend that money down, that money is not going to be available to them. we've been helping, again, on the military side of things by targeting bulk cash sites and there's been at least millions of dollars -- the phrase that we use -- at least millions of dollars of bulk cash that has been literally incinerated as a result of the air campaign. so that is how we're approaching isil's ability to generate revenue. this is going to be an ongoing effort but i do think that we can demonstrate that we've had an impact. we've seen that in certain areas, in raqqah, in the raqqah area, for example, we've seen the salaries of isil fighters drop by 50%. and the fighters in the raqqah area are not the first people who have their salaries drop, i can assure you that. that is a sign of financial distress on isil. we've also seen a rise in internal corruption within isil. we've seen -- isil is concerned about this themselves and they've launched their own anti-corruption investigations because they understand that with the decrease in resources available to them there's going to be an increase of people with their hands in the cookie jar. and this is a real problem for isil and one that we see

growing. we've also seen an increase in arbitrary fees and fines that isil is charging the citizens in the territories that they control. and we've seen the increase in taxation in the territories that they control in an attempt to make up some of the difference. so we've seen signs of financial distress on isil and we're going to continue the campaign and continue to do everything we can to deprive them of access to as much resources as possible. that said, we're not going to be 100% successful, we're not going to bring them down to zero, we know that. so it's also important we focus on the other half, what i call the more traditional portion of the terrorist financing effort and that's depriving them of access to the international financial system so they can not make use of the money that they have. this effort starts with the iraqis themselves and we work very closely with the iraqis and the iraqis take this issue quite seriously. i have a very good close relationship with the central bank governor and the iraqis are quite focused on making sure that they're doing everything they can to protect their

financial system from access by isil. so where that started was banks, there are approximately -- there were approximately 90 iraqi bank branches in territory isil controlled when isil basically took mosul and took that portion of iraq. there were approximately 90 iraqi bank branches and almost immediately we were working with the iraqis to ensure those bank branches were cut off from their headquarters in -- almost entirely in baghdad, maybe there were a couple that had headquarters in erbil as well. but the goal were to make sure those branches were cut off from their headquarters in baghdad. in so doing, it cuts them off from the financial system as a whole because none of those banks have the ability to conduct international transactions outside of going through their headquarters. there was one that did have that ability and the iraqis immediately forced that bank to move its headquarters to baghdad so what then became a branch, they did not have the ability to conduct international

transactions. so you never say never, you never say something isn't a risk or threat anymore but that's not where i think the focus of our attention should be, i think those bank branches are -- to the extent that you can trust in anything, those bank branchs are in a good place right now, where i think the bigger concern is exchange houses. there's approximately 1900 exchange houses in iraq as a whole. and to the extent that isil gaining access to the financial system, that's where we need to look and that's where the iraqis are looking as well. there's a short-term portion to this problem and then there's a longer-term solution to this problem. in the longer term they need to shrink that sector down. 1900 exchange houses is not an appropriate number of exchange houses for iraq. iraqis understand that and have a plan to get that number down substantially and we're working closely with them at the treasury department, working

with iraqis to put them in a position where they could have a number of exchange houses that could be overseen, supervised and regulated. we need to focus on making sure in the short term that the exchange houses that are either in isil-controlled territory or that are willing to work with isil are dealt with appropriately. the iraqis, again, have been quite cooperative on this effort and the central bank of iraq has published a list of in excess of 100 exchange houses in isil-controlled territory. this is a dynamic list. entities can get added to this list from time to time if we have concerns about a particular entity and they come off the list as territory is liberated, but there's in excess of 100 exchange houses on this list, a public list on the iraqi web

site, i talk about it with central bank governors and others around the world all the time. it's important that financial institutions consult that list and make sure they are not doing business with any of these quote/unquote blacklisted exchange houses. in addition, we have a very, very active information exchange information sharing, a number of information sharing arrangements with the iraqis so they could be alerted to any information or concerns that we have about particular exchange houses. and then it's of course also quite important and something we work on very closely with iraqis to ensure that this is not just a central bank effort, the central bank is obviously important as a regulator of these institutions but this is something law enforcement authorities need to be involved in, that security services need to be involved in, that their finance ministry needs to be involved in, that the justice ministry needs to be involved in. we've formed a group called the u.s./iraq committee to counter

terrorist financing that these groups are involved in. we at the treasury department are part of that group as well. it meets periodically and it's one of the ways we try to encourage iraq to take the all of government approach to these problems that really it needs to bring to bear in order to be as effective as we could be. so that's where it starts. that's iraq and, again, we have seen results from this, millions of dollars have been blocked by the iraqis from these blacklisted exchange houses. millions of dollars have been blocked. that's an important signal that they're taking this seriously. we've seen iraqis take steps to

improve the regulation of their financial system, they have adopted anti-money laundering and counterterrorist financing laws and are issuing regulations to make those as -- to implement them, but it's not just -- as we all know it's not just enacting laws and regulations, it's really at the end of the day comes down to implementation and we've seen them take extraordinary steps to make sure that not only are the banks in baghdad appropriately regulated but they've sent teams out to places like kirkuk to ensure that they have an eye on what's going on in areas that are closer to isil control. they've worked very closely and are working very closely with authorities in the kurdish region to ensure there's a uniform anti-money laundering system throughout the country. so, again, a lot of work to be done. i don't want to paint too rosy a picture. there's a lot of work to be done and a lot of capacity to be developed and this is a really, really tough problem set. as we get information in the united states that gives us greater insight into iraqi financial networks, we share that information as much as we can but that information is hard to come by and it's something we're still developing and it's still a challenge for us. so i don't want to give you the impression that this is an issue that's been solved but what i do

want to give you the impression of, it's an issue at's been well identified and that there's a lot of effort going into addressing. and that again is just talking about iraq. now, even though it starts with iraq, it certainly doesn't end with iraq. there's responsibilities both regionally and globally. we work closely with the governments throughout the region whether it's turkey, whether it's jordan, uae, whether it's lebanon to make sure that they're doing what they need to do to make sure isil doesn't gain access to those financial systems. i will say, this issue is going to become as we succeed in the military campaign, as isil loses territory, this is only going to become more important because what you see isil developing towards is again a more traditional terrorist organization that again relies -- will increasingly rely on access to the international financial system both to raise money and to spend money. and as that happens, as that becomes more important, as they develop towards focusing more on their affiliates, as they

develop more on being a disbursed global organization that needs to maintain networks, the work that we do regionally and globally is only going to become more important. so we work very closely again with the emirates, with the jordanians and other countries in the region to make sure that that's being addressed appropriately. then as i said, globally, as we focus on external plotting, as we focus on isil as a global organization, as we focus on isil evolving towards again, a more traditional terrorist organization, these -- the global effort that we've been really engaged in since 9/11 becomes more and more important in organizations like the financial action task force which sets international standards for anti money laundering and counter terrorist financing become more important.

u.n. efforts became important. efforts within the coalition, the coalition is not just a military coalition. it's a counter isil coalition with a variety of lines of effort. one of those lines of effort is obviously the military line of effort. one of those lines of effort is the counter finance line of effort. and i co-chair that line of effort along with saudi arabia and italy. we're in fact meeting in a couple of weeks in kuwait. that will bring over 30 countries together to talk about the things that people are doing throughout the world whether in asia, whether in europe, in the middle east, north america, south america. to make sure that the global isil financial threat is as contained as possible. that's an important group and it's an important line of effort. and it's one that we take quite seriously. so again, iraq and regional and then global. and that's the plan.

that's the secret plan you guys are all clued in on now. you know, again, i was going to conclude by talking about the challenges that we see in front of us. i think i've already kind of touched on them though already. the first in the area of challenges that we see in front of the us is all the old challenges. so i'm glad i could paint a rosy picture about the impact we're having on oil. i'm glad i could paint a rosy picture about the impact we're having on liquidity. i think it's important that we acknowledge the progress that we've made but i think it's also important to emphasize they're still making money on oil, on gas, they're still making money on taxation. and they're making a lot of money. so there's -- this isn't about resting on our laurels. we understand that this is an

ongoing effort and frankly, they're going to be making that money until they get pushed off the territory that they control, which hopefully will happen as quickly as possible. but until that does happen, we're going to be focusing our efforts on the types of things that i talked about before. but in the terms of new challenges, again, it's what i

the work that we do with respect to al qaeda or other terrorist os in terms of sharing information and identifying donors and in terms of identifying charitable organizations that may be on the wrong side of this issue. those are standard things that we've done since 9/11 that i've -- matt, when he was at treasury was doing, as well. it's something we're going to continue to do. it's going to become more and more important in the future. with that, i'm going to conclude my remarks. i'm happy to answer questions on broader terrorist financing issues, but thanks for your attention. [ applause ] >> danny, thank you very much. the podium is going to magically be pulled back by somebody so that people sitting on this side of the room can see. i'm going to give au opportunity to take a breather and have a glass of water and stall for a second. thank you. i'll take the moderator's prerogative to ask the first question. then we'll open up to everybody and i'll get you as i see you. dana, let's posit continued success just for the fun of it.

i'd like to you answer what that might look like, what the consequences might it be domestically within areas that the islamic state still controls in terms of its financing and what the nature of its financial relationship might be with its far flung provinces. so domestically, if we think about this as a balloon, we squeeze the balloon not so hard that it pops but make it harder for them to raise money through say oil and gas or other things. the logic has it is they would perhaps move to other areas that would be available to them including some they haven't used traditionally like the donors and the abusive charity you mentioned at the very end there. do you see those or other areas as places we need to keep an eye on, areas for fundraising that they may try to tap into now than some of the more traditional fundraising tools that they've had at their -- that that i have been able to tap into are denied them? and then in terms of their relationships abroad, the u.n. monitoring report talks about payments including through

banks, including through exchange houses that the islamic state despite all of our best efforts have still been able to make to some of the far flung provinces. a lot of us are beginning to think what happens in the post, quote/unquote, caliphate as you mentioned in your opening remarks as the islamic state becomes more of an insurgent and international terrorist organization. might we see them trying to send money to some of these provinces as a place where they could kind of set up shop in isil 2.0 scenario? >> sure. so with respect to the first part of your question on sort of the way you describe it, squeezing the balloon and domestically and what are the implications of that, we've already seen that. so we've seen as they are losing access to oil wealth and other forms of wealth, they're increasing taxation. they're trying to extract more

resources from the limited pool that they have. there's limits to that. there's an upper limit to what they're going to be able to do on that. what we're trying to do is push down on that upper limit again. why i focus a lot on liquidity. at the end of the day, they could only extract resources to the extent there's liquidity for them to extract. and so i think it's a combination of continuing to squeeze the balloon but making sure that the whole sort of potential level of resources available to them is as low as possible and then again, as the territory that they control continues to decrease, that's also going to be a separate check on their ability to expand that. so then the question becomes, as you said, do they turn to foreign resources. well, first of all, there's no level of external financing that's going to equal the billion dollars or more that they could make year, you know, off of controlling a territory like this.

so there's really no substitute for that. now, that said, as i said, as they lose territory, as they -- to use your term, move to sort of a post-caliphate entity, whenever that entity may look like, it does become incumbent upon us to look even harder. we're looking at it pretty hard now, but to focus our efforts even more on the ability of them to generate wealth through the more traditional -- i say traditional, you know, methods that we see al qaeda using, whether it's deep pocket donor, charities, ngos, whether it's other criminal activity. and you know -- and i do think, as i said before, i think that that's as they lose the ability to gain wealth from the territory they control, we need to make sure that these other sources are deprived from them and we'll do that. those sources will never equal