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tender, when fo many people are averfe to the measure. ?

I fill with to prevent rogues and villains from ruining honeft men. Without fuch provifion, it would leave it in the power of an avaricious creditor, to imprison an honeft debtor, who is both able and willing to pay him, till he extorts double the fum from him, with cots of fuit.

But if your fcheme fhould fucceed fo well, as to answer as an internal medium of trade, without depreciating, will it be received in Europe for the purchase of foreign commodities, which we cannot do without? No: nor would I be willing to let foreigners have it for their manufactures, even if they were willing to take it, except we had too much in circulation. Money, to the ftate, is like the mechanic's tools, the very last things he fhould difpofe of; it is the medium which facilitates agriculture, trade, and bufinefs of all kinds-deprive a people of the ufe of money, and you alfo reduce induftry to the loweft ebb.

How, then, are we to procure neceflary clothing, and many other articles from Europe, which we cannot do without, or manufacture ourselves, if we cannot purchafe them with our money?

The produce of our country is what we should exchange with the European nations, for real neceffaries; and articles of luxury we should relinquish, till we are better able to pay for them.

But it is faid, we have not a fufficient quantity of produce to export for the purchafe of real neceffaries; and what we have to fpare, bears fuch a high price, that our merchants fink money upon many articles at foreign markets; are we not therefore under a neceflity of exporting y?

our money

By no means. This is the very circumstance which ought to induce us to abandon the practice of export

ing our money, as it is impoffible to carry on agriculture, trade, or bufinefs of any kind without it. The quantity of produce will diminish, in proportion to the scarcity of cath: and the price increase, in proportion to the dimination of the quantity brought to market. It is, therefore, clearly our intereft, our indispensible duty, to keep our money at home, as the only means of increasing the quantity of our produce, which will foon lower the price, and enable our merchants to find good markets abroad for all we have to fpare: and in fome years hence (with proper economy) the balance of trade may be in our favour, when we may bring home that balance in money.

However trifling these confiderations may appear to a foreign merchant, who wishes to refide no longer in the country than it fuits his intereft, and then return home and laugh at our folly-it is, or ought to be, a matter of ferious concern to an American, who wishes to spend his days in the country, and stand or fall with it; but we are the only people I ever heard of, who contend for the privilege of ruining ourselves by exporting our money.

2.

Elay on paper-money, (published in Baltimore, July, 1786).

T is a maxim founded on reason,

IT

and fupported by the fatal experience of many nations, that in all governments, the good of the state fhould be regarded prior to all other confiderations; that is, where the views of individuals clash with the honour, profperity, and happiness of the community at large, the former must be facrificed to the latter : on the contrary, when the members of a fiate create interefts diftinct and incompatible with the well-being of the whole-when that regard to the public weal, which ought to actuate each individual, is poftponed to private

advantage-when men lofe fight of to form a juft judgment, we must take

the great principle of fociety, and, regardless of the claims of their country, centre every confideration in felf, -in fuch cafe, the ftate is rapidly haftening to a diffolution. It is well known that few caufes have more frequently occafioned the deftruction of nations. The various modifications of the vice of selfishness, the innumerable forms it affumes, have equally confpired to effect their ruin.

Reflexions of this kind, naturally prefent themselves on confidering the fabject of paper-currency, which has, of late, engaged the attention of the people, and, concerning which, a variety of fentiments have been entertained. When I reflect on the warmth with which a measure fo neceffary to the good of the ftate, in our prefent circumftances, has been oppofed-and that the character and fituation of thofe engaged in the oppofition, are generally fuch, that a refpect to their own emolument would engage their averfion to it-I cannot but lament the want of that zeal for the common welfare, which ever confolidates private with public interefts-and that in the difcuffion of a question of fuch general concern, men fhould fuffer the intrufion of paffions altogether unworthy of true patriotifm, and which cannot fail to bias their judgment. The arguments which are generally offered against a paper-credit, carry, in themfelves, trong evidence of the motives which originate them. Those who advance them, fay, there is already a fufficient quantity of fpecie in circulation, to anfwer the purposes of life; and, to prove their pofition, tell us, that the articles of commerce bear a high price, and command ready cafh. This affertion may be true, when applied to fome things, but, in general, is of no validity. It is admitted, that the current value which commodities bear, may ferve as a criterion to estimate the quantity of cash in circulation: but

into our view every object of commerce. In vain do men affirm, that the farmers may at any time receive a good price and ready money for their produce. There are numberless kinds of property which do not bear more than a third of their value. Lands, houfes, &c. are reduced to fo disproportionate a price, that many, whom neceffity has compelled to difpofe of them, have been ruined by it. Even certificates of the ftate and continent, (fpeculations confeffedly the moft profitable) are far from meeting with a ready fale: the holders of them find the greatest difficulty in procuring purchasers, and are obliged to fubmit to very confiderable lofs. Indeed it is fcarcely poffible to fell them on any other terms, than for one half goods. Afk the reafon of this, and thofe very men, who are fuch strenuous afferters of the abundance of mo. ney, tell you, cash is not to be had. Whence proceed the many difficulties which are daily opposed to the dif charge of debts? it is in vain to urge that this depends on want of integrity in the debtor-men, however difhoneftly inclined, would never fuffer their property to be feized and fold, infinitely below its value, and thereby expofe themselves to unavoidable lofs and diftrefs, could they procure money with fuch eafe as is generally reprefented. If we look into our courts, the vaft increase of suits exhibits a melancholy teftimony of the univerfal fcarcity of cafh, and the difficulties to which numbers are reduced.

It is not unfrequent to adduce the high price of provifion at the markets, as another proof. The answer to this is obvious: those things, which nature, or custom, has made neceffary to our exiftence or convenience, will ever depend on the will and caprice of the vender; and can never be otherwife affected, except by reftraints and limitations eftablished by law.

The miferies which many have already fuffered-the ruin, which menaces numbers in this ftate, loudly demand that the legislature should interpofe, and fave them from the cloud of calamities which threatens to envelope them.

It is folly to argue against the common experience. Imprifonments of perfon, feizure of property, and all the dreadful fufferings attendant on them, difcover a fad prefage of what we may expect. The neceffities of people unavoidably accumulate debts, which they cannot fatisfy, and which will only terminate in their ruin. But their patience may be worn out, and refentment and despair may produce confequences which fome little apprehend. The affembly muft adopt fome mode for the relief of the country.

Many, who acknowledge the great demand for money, exprefs appre henfions concerning the fuccefs of a paper emiffion. The injurious confequences of the depreciation of the continental and ftate-monies, have left impresions extremely unfavour able to it. Men, who have fo recently fuffered the hardships occafioned by that diminution of value, are apt to regard every thing, which may poffibly produce a fimilar train of mifchiefs, with an eye of the utmoft diffidence and fufpicion, But there is lefs caufe to fear, that the fame fatality will occur in the prefent inftance, which happened during the late war, than is generally apprehended. If we advert to the precarious fituation in which we then flood-the difficulties which we had to combat -the continual hazard, to which we were expofed, of being fubjected— and, above all, the want of proper fecurity for the redemption of the continental and ftate-emiffions, we fhall have no reafon to be furprised at what happened. But there is no

glorious ftruggle has been crowned with its just reward. By our perseverance and magnanimity, we have broken the fhackles, which the oppreffive hand of tyranny had prepared for us. We have become a free people, and it depends on ourfelves to be a happy one. It is in our power to establish a paper-credit on fo firm a bafis, that nothing, but the arts of perfons unfriendly to our happinefs-emiffaries, employed by our enemies to perplex us with every poffible obftacle in the way of cur profperity-and men, who, forgetting the duty they owe to their country, are willing to build their fortunes on its ruin, can shake it. Unfortunately, there are fome among us of this character-from thefe, the only danger is to be apprehended; but let us guard againft their designs

let us convince them, that we have a juft fenfe of our rights, and that we are not difpofed to fubmit to injuries which must terminate in our ruin. Let us fhew them, that we have the courage to affert and defend our rights, and the resolution to punifh every encroachment on them. Let us act with that fpirit which diftinguifles men confcious of their freedom. Shew them that you, who difdained to yield to the united efforts of lawless power and oppression, will never ftoop to the tyranny of individuals. It is vain to attempt, by gentle means, to fruitrate their villainous defigns. A regard to yourfelves, and the fafety of your country, demand that fome fevere examples fhould be made-these are the means by which you may prevent the depreciation of your money.

AN OLD SOLDIER.

July 7, 1786.

Thoughts on paper-money.

HEN children Ifrael

analogy between our circumstances W croffed the red den, they frac

at that and the present time. Our fidered themselves as fecured from

every other danger. But, in this they tant intereft is the only confiderawere foon mistaken. They met with tion that can be oppofed to this powerful enemies-with fiery fer- fear. pents, and with famine, which diminished their number, fo that only two of them entered into the promifed land.

The inhabitants of the united ftates feem to have acted like the children of Ifrael. They have fuppofed that the mere declaration of independence was to make them free; and that all the dangers and difficulties of establishing a new empire, were to cease with the war. In this, they have been mistaken. There are many enemies, more formidable than British armies, and more infidious than American tories, yet to be encountered and vanquished. These enemies come forth under various forms. At prefent, they appear in a fhape that threatens the diffolution of the commerce, agriculture, and manufactures of our country; and, with thefe, of our freedom and independence. The creature fo pregnant with mischief, is paper

money.

I thall confider this fpecies of money in a two-fold light. 1ft, as unequal in value to gold and filver; and zdly, as equal to gold and filver in value.

Paper-money, when it circulates of an inferior value to gold and filver, produces the following evils :— 1. It promotes fpeculation; and therein employs a quantity of money which might be usefully employed in commerce,agriculture, and manufac

tures.

2. It prevents private loans, which, in former times, were the great fource of the improvement and profperity of our country; for, while a depreciated paper-money is in circulation, there will always exift an apprehenfion of a tender-law.

3. It promotes unlawful ufury; for this is the natural confequence of the dread of a tender-law. Exorbi

4. It prevents the union of the flates being increased and strengthened by commerce; for no man hereafter, will touch the money of a fifter ftate, without being acquainted with her fyftem of laws with refpect to finance, or without a regular correfpondence with the demagogue of each state.

5. It prevents all intercourse and commerce with foreigners, which, in the prefent ftate of this country, muft foon end in the destruction of our farmers.

6. It leads our farmers to feclude their gold and filver for years from the light of the fun, and our monied men to fend their cash to the banks of Europe.

7. It produces delay in the payment and collection of taxes; for the more the money can be depreciated, the eafier we pay our taxes. The impoft and excife, I believe, were paid punctually in fpecie, till the lure of paper-money produced a delay, which finally eluded the tax by its depreciation. I fhall fay nothing here of the great opportunities which a depreciated paper-currency affords to collectors and treasurers to enrich themselves by the well-known practice of money-changing.

8. It increases the price of provifions, and keeps up rents; for while landlords and market-people are uncertain what kind of money will be offered to them, they take care to afk fuch prices, as will prevent their lofing any thing by depreciation→ hence they receive, by far, too much when they are paid in fpecie.

9. But the greateft evil of a de preciated paper-currency remains to be mentioned. It deftroys the morals of our citizens-creates extravagance-produces endless difputes and frauds-multiplies law-fuits-promotes art and chicanery in business

and thereby prepares us for ariftocracy and flavery.

I come now to confider the effects of paper-money, when it circulates equal to gold and filver. Its natural operation is to produce debt, and dependence upon the rations of Europe. While gold and filver are the only mediums of trade, our imports and exports will mutually balance and check each other; but when goods can be purchased by our farmers, and bills of exchange by our merchants, with paper-money manufactured by ourselves, it will always be preferred to the produce of our country; and hence, our debt in Europe will always be in an exact proportion to the quantity and credit of our paper-money. The late war found the middle ftates labouring under a very heavy debt to Great Britain, owing entirely to the quantity and credit of our paper-currency, while Massachusetts-bay, which had no medium of trade but gold and filver, owed little or nothing to Great Britain. We fee every day the effects of thefe debts in Pennfylvania, in the bankruptcy and diftrefs of merchants, once refpectable for their property and industry. Thefe debts are the old and ftubborn offspring of our paper emiffions before the war.

NOTE.

I am fo perfectly satisfied that ar. tificial money, of equal value with fpecie, does mifchief by begetting debt, that even a bank fhould not emit a fingle note beyond the fum of fpecie in its poffeffion. The profits of a bank fhould arife only from fhares and depofits. The laft, while they become a revenue to stockholders, facilitate trade, and increase manufactures. A bank upon these principles is like the mechanic powers in producing force, compared with the ftrength of the hands in advancing the improvements and profperity of a country.

I shall now reply to the arguments that are ufually brought in favour of a paper-currency. it. We are told, that a loan-office is abfolutely neceffary to improve the state, and to prevent the ruin of debtors; and that this cannot be established without per-money. pa

I am a friend to a loan-office in all ftates which have new lands to fettle. Thefe lands will not command private loans, till their value is determined by cultivation, and increased by buildings and other improvements. But in the prefent fituation of our country, I maintain that this loan-office can only be fupported by fpecie; and this fpecie may be eafily procured from a variety of fources, provided the springs of industry and confidence in government are opened by the annihilation of paper-money. The loan-office, in Pennfylvania, formerly fupplied only a few hundred thoufand pounds to the new settlers and farmers. The principal fund, for loans, was always found in individuals. Near two millions of pounds were fuppofed to be lent upon private bonds and mortgages, in the state of Pennsylvania, in the year 1774. This immmenfe fum was the machine that formed, conducted, and invigorated near one half of the commerce, agriculture, and manufactures of the state. The loan-office was only a drop in the bucket, compared with this ocean of private credit. Now, by upholding a loan-office, we grafp a drop, and lofe an ocean. This thought is new, and deferves our most faithful attention. A paper loan-office, and private credit, for the reasons that have been mentioned, cannot exist together. A loan-office, alone, if it emitted gold and filver, inftead of paper, cannot be equal to all the demands of our commerce, agriculture, and manufactures. Private loans are of ten times more confequence than a loan-office, as they bring ten times more money into circulation. They

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