ployment from the manufacturer and merchant; though he pays the same price for every thing in the market. The farmer cannot dispose of his corn and cattle; though he pays the same rent to his landlord. The poverty, and beggary, and sloth, which must ensue, are easily foreseen."

It is much to be lamented to the dishonour of ancient legislation, that the views here given by Mr. Hume, were so frequently realized in former times, even in communities highly civilized in other respects; but finance, for its numerous relations, the most difficult of all the sciences, was never understood till since the birth of Sully, except partially by Solomon, Pericles, Augustus and the Medici, who were envied for their knowledge, and calumniated for the life and vigour they every where diffused, by all the idle and ignorant of ancient and modern times; but the art of printing has fortunately preserved a sufficient number of facts for conviction, and as we have already smarted under two insurrections for carrying injudicious taxes into parts of our country where there was nothing to pay them, we hope that proper order will one day be taken to watch the state of our circulating medium, as the officer who distributes the fluid for the Delta does the pillar of the Nile; if we do not, we shall always be liable to be greatly injured, though we hope we have too much discretion again to trust in remedies worse than the disease, as in the times of the two insurrections of Massachusetts and Pennsylvania.*

The importance of more carefully watching the state of our commercial circulations, when we have the power at any moment so abundantly to supply and to correct any error in finance, or to redress all grievances of the kind alleviated by our funding system, is best seen by looking often at the pictures of our former distresses. By anti-financial policy, the effects of ignorance or inattention in the legislature, our merchants may again be forced to run deeply in debt, to near the whole amount of their shipping and all their other stock in trade, by which, as in former times, an extra burthen of ten to fifteen per cent. per annum for the increased risk of credits and interest, will be realized, to an amount incredible with those who have not fully attended to the subject. To these losses must be added the loss in time by running after bad debts, and to borrow money, the cost of law suits, the expenses in confinement for debt, the slothful habits and lingering manners of our agricultural labourers and artizans, when they are doubtful of being paid, and yet dare not refuse the rare offers of work, the prevarications, want of confidence, and many immoral practices that have ensued, in the old world, in all such changes, are too shocking to dwell on: so are the circumstances that led to our happy change, to which a report of the secretary of the treasury, from which we give the following extracts, was chiefly instrumental,

*Whenever a government makes money scarce it has been usual to charge the merchants with the fault of over trading.

On the Importance of Public Credit.

"To promote the increasing respectability of the American name; to answer the calls of justice; to restore landed property to its due value; to furnish new resources both to commerce and agriculture; TO CEMENT MORE CLOSELY THE UNION OF THE STATES; to add to their security against foreign attack; to establish public order on the basis of an upright and liberal policy: these are the great and invaluable ends to be secured by a proper and adequate provision for the support of public credit."

To shew the difference between the unfunded paper money, which may be pernicious to any community, and a FUNDED STOCK, which is the reverse: of the latter he says, "It answers the purposes of money; transfers of stock are equivalent to payments in specie, or, in other words, stock, in the principal transactions of business, passes as money. Trade is extended by it, because there is a larger capital to carry it on, and the merchant can at the same time afford to trade on less profits (in this he accords with Hume, Smith, &c.) as his stock, when employed, brings him an interest from the government, and serves him also as money when he calls for it in his commercial operations. Agriculture and manufactures are also promoted by it, for like reasons, that more capital can be commanded in both, and because the merchant, whose enterprize gives to them greater activity and extension, has greater means for enterprize. The interest of money will be lowered by it; for interest is always in a ratio to the quantity of money; this circumstance will enable both the public and individuals to borrow on lower and easier terms: from a continuation of these effects, additional aid will be furnished to labour, to industry, and to arts of every kind.

The depreciated value of land ought, in a great measure, to be attributed to the scarcity of money; consequently, whatever produces an augmentation of the monied capital of the country, must have a proportional effect in raising that value. The proprietors of land would not only feel the benefit of this increase in the value of their property, and a more prompt and better sale when they have occasion to sell, but the necessity of selling would be greatly diminished.”

Having recently heard more complaints than at any time since the fortunate funding of the debt, of an universal scarcity of specie, which now bears a higher premium than usual, and of the banks being obliged to curtail their operations; and also a more striking proof of money being too scarce in the falling price of real estates, while population is rapidly increasing, and while the average of our lands are at less than one-fifth of their real value; we have endeavoured to compare the average state of our specie, before the funding system, with two different periods since, and believe we had not in 1790 above two dollars and fifty cents for the entire population of the states; but by the effect of the funding system we rose to near seven dollars each, in facile money, in the year 1794, including bank notes, at one

third, in addition to the specie, and find by the same rules we have not more than five dollars and fifty cents of facile money, at this time, 1805, which by the depreciation of money in Europe, would soon reduce us to a very low rate indeed, if it were not that our insurance, turnpike and other stocks, as negotiable money, have supplied in part the deficiency; these, with the increased and increasing number of our banks, are now often used as remittances; but this is an injurious fact, for, as by paying off six per cents. we induce foreigners to buy into eight per cent. banks, &c. at par, we thus increase the foreign drains one-third, without any increase of our capital.

It may therefore be well worthy of the legislature to consider what effects the sale of a three per cent. loan,* for the improvement of roads, from the Atlantic to the national land bank, would have on the prices and the sales of the lands that are finally to discharge these and all other public loan certificates. We all know that the stock, thus created, would, in lieu of specie, serve for remittances to Europe, and often bring thence the purchasers, a desirable white population, with their families, who would soon exchange their public certificates for the public lands. This consideration would shew a providential and paternal regard to their primary duty, and lead to an extension in financial knowledge, of incalculable importance to their country.

Having stated that many new banks have been recently formed, in part to supply the merchants with remittances, bills, &c. in lieu of the bills now bought annually by government, to discharge both the principal and interest of our nominal debt, we have subjoined a list as far extended as we have been able to collect information, of their numbers and capital, but as some of the banks have not yet paid their whole, and others have increased their capital, this list is not complete.

We ought here to repeat our obligations to Mr. R. Morris, to whose vigilant and vigorous patriotism the people of the United States are chiefly indebted for having first introduced the banking system into our country. To his bank of North America, we are chiefly indebted for the means that kept our army in camp till the peace of 1783. By following his plans the poorer states of that time are now the most wealthy and most industrious of the union. By continuing to increase in banks, we are enabled to bear the annual drain of above four millions, in discharge of public loans held abroad, of which our legislature have not fully considered the value to their country, nor have they yet attended to these facts, namely; "the public land laws have virtually provided for all the public debts." 2. Foreign loans are now worth ten per cent. at an annual compound, and will continue to be worth as much till we have the value of fifty days labour a head, if averaged, for each individual in the United States. 3. The present value of money will not cease till the entire lands of the union bring more than four times their present prices.

The highest bidders for cash will be foreigners.

We are without the necessary information to give the capitals of the following institutions, and therefore only note their establishment.

Hudson, New York; Portland, Maine; Nantucket, Massachusetts; Beverly, Mass. Worcester, Mass. Merimack bank at Newbury Port, Mass. Wiscasset, Maine, Salem, Mass. New Bedford, Mass. Plymouth, Mass. Marblehead, Mass. Northampton, Mass. Warren, R. Island; New London, Connecticut; Penobscot, Maine; Taunton Manufacturers, Mass. Bank of New Orleans, Louisiana; Philadelphia, Pennsylvania; Newark Bank and Insurance, N. Jersey; Trenton Bank, N. Jersey; Hallowel and Augusta Bank, Mass.

The entire capitals of the preceding institutions, when all paid in, will be near fifty millions. They, however, at present do not reach forty-five, and if in some instances renewable notes are received, with deposites of the original stock of the bank, and other sufficient securities, as substitutes for the final payments by instalments after the first, as is frequently the case in European institutions of this kind, the facilities created by all these banks do not give to the specie medium an additional circulation of facile money, more than one-third on the real amount; thus with eighteen millions of specie we may now have thirty-three millions, or five and an half dollars a head, if averaged, for each individual in the United States. This is as near the mark as we can arrive by our best present means of information, and we hope not far from the truth.

It is not our intention to give a history of banks, or of their routine; they may both be found in part in Mr. Dobson's enlarged eđition of a British encyclopedia; it is enough to say that our mode is an improvement on the best in the world.