Dissertations on Government
The Affairs of the Bank, and Paper Money.

by Thomas Paine
(1786)

From The Works of Thomas Paine (Conway Edition, 1894-96), Volume 2.
Source: https://filthylittleatheist.com/works/dissertations-on-government/
Public domain. CC0 / Public Domain Mark 1.0.

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Every government, let its form be what it may, contains within itself a principle common to all, which is, that of a sovereign power, or a power over which there is no control, and which controls all others : and as it is impossible to construct a form of government in which this power does not exist, so there must of necessity be a place, if it may be so called, for it to exist in.

In despotic monarchies this power is lodged in a single person, or sovereign. His will is law; which he declares, alters or revokes as he pleases, without being accountable to any power for so doing. Therefore, the only modes of redress, in countries so governed, are by petition or insurrection. And this is the reason we so frequently hear of insurrections in despotic governments ; for as there are but two modes of redress, this is one of them.

Perhaps it may be said that as the united ressistance of the people is able, by force, to control the will of the sovereign, that therefore, the controlling power lodges in them ; but it must be understood that I am speaking of such powers only as are constituent parts of the government, not of those powers which are externally applied to resist and overturn it.

In republics, such as those established in America, the sovereign power, or the power over which there is no control, and which controls all others, remains where nature placed it — in the people ; for the people in America are the fountain of power. It remains there as a matter of right, recognized in the constitutions of the country, and the exercise of it is constitutional and legal. This sovereignty is exercised in electing and deputing a certain number of persons to represent and act for the whole, and who, if they do not act right, may be displaced by the same power that placed them there, and others elected and deputed in their stead, and the wrong measures of former representatives corrected and brought right by this means. Therefore the republican form and principle leaves no room for insurrection, because it provides and establishes a rightful means in its stead.

In countries under a despotic form of government, the exercise of this power is an assumption of sovereignty ; a wresting it from the person in whose hand their form of government has placed it, and the exercise of it is there styled rebellion. Therefore the despotic form of government knows no intermediate space between being slaves and being rebels.

I shall in this place offer an observation which, though not immediately connected with my subject, is very naturally deduced from it, which is that the nature, if I may so call it, of a government over any people, may be ascertained from the modes which the people pursue to obtain redress of grievances ; for like causes will produce like effects. And therefore the government which Britain attempted to erect over America could be no other than a despotism, because it left to the Americans no other modes of redress than those which are left to people under despotic governments, petition and resistance : and the Americans, without ever attending to a comparison on the case, went into the same steps which such people go into, because no other could be pursued : and this similarity of effects leads up to, and ascertains the similarity of the causes or governments which produced them.

But to return. The repository where the sovereign power is placed is the first criterion of distinction between a country under a despotic form of government and a free country. In a country under a despotic government, the sovereign is the only free man in it. In a republic, the people, retaining the sovereignty themselves, naturally and necessarily retain their freedom with it : for wherever the sovereignty is, there must the freedom be.

As the repository where the sovereign power is lodged is the first criterion of distinction, so the second is the principles on which it is administered.

A despotic government knows no principle but will. — Whatever the sovereign wills to do, the government admits him the inherent right, and the uncontrolled power of doing. He is restrained by no fixed rule of right and wrong, for he makes the right and wrong himself, and as he pleases. If he happens (for a miracle may happen) to be a man of consummate wisdom, justice and moderation, of a mild affectionate disposition, disposed to business, and understanding and promoting the general good, all the beneficial purposes of government will be answered under his administration, and the people so governed, may, while this is the case, be prosperous and easy. But as there can be no security that this disposition will last, and this administration continue, and still less security that his successor shall have the same qualities and pursue the same measures ; therefore no people exercising their reason, and understanding their rights, would, of their own choice, invest any one man with such a power.

Neither is it consistent to suppose the knowledge of any one man competent to the exercise of such a power. A sovereign of this sort, is brought up in such a distant line of life ; lives so remote from the people, and from a knowledge of everything which relates to their local situations and interests, that he can know nothing from experience and observation, and all which he does know he must be told. Sovereign power without sovereign knowledge, that is, a full knowledge of all the matters over which that power is to be exercised, is a something which contradicts itself.

There is a species of sovereign power in a single person, which is very proper when applied to a commander-in-chief over an army, so far as relates to the military government of an army, and the condition and purpose of an army constitute the reason why it is so. In an army every man is of the same profession, that is, he is a soldier, and the commander-in-chief is a soldier too : therefore the knowledge necessary to the exercise of the power is within himself. By understanding what a soldier is, he comprehends the local situation,, interest and duty of every man within what may be called the dominion of his command ; and, therefore, the condition and circumstances of an army make a fitness for the exercise of the power.

The purpose, likewise, or object of an army, is another reason : for this power in a commander-in-chief, though exercised over the army, is not exercised against it ; but is exercised through or over the army against the enemy. Therefore the enemy, and not the people, is the object it is directed to. Neither is it exercised over an army for the purpose of raising a revenue from it, but to promote its combined interest, condense its powers, and give it capacity for action.

But all these reasons cease when sovereign power is transferred from the commander of an army to the commander of a nation, and entirely loses its fitness when applied to govern subjects following occupations, as it governs soldiers following arms. A nation is quite another element, and every thing in it differs not only from each other, but all of them differ from those of an army. A nation is composed of distinct, unconnected individuals, following various trades, employments and pursuits : continually meeting, crossing, uniting, opposing and separating from each other, as accident, interest and circumstance shall direct. An army has but one occupation and but one interest.

Another very material matter in which an army and a nation differ, is that of temper. An army may be said to have but one temper ; for however the natural temper of the persons composing the army may differ from each other, there is a second temper takes place of the first : a temper formed by discipline, mutuality of habits, union of objects and pursuits, and the style of military manners: but this can never be the case among all the individuals of a nation. Therefore the fitness, arising from those circumstances, which disposes an army to the command of a single person, and the fitness of a single person for that command, is not to be found either in one or the other, when we come to consider them as a sovereign and a nation.

Having already shown what a despotic government is, and how it is administered, I now come to show what the administration of a republic is.

The administration of a republic is supposed to be directed by certain fundamental principles of right and justice, from which there cannot, because there ought not to be any deviation ; and whenever any deviation appears, there is a kind of stepping out of the republican principle, and an approach towards the despotic one. This administration is executed by a select number of persons, periodically chosen by the people, who act as representatives and in behalf of the whole, and who are supposed to enact the same laws, and pursue the same line of administration, as the people would do were they all assembled together.

The public good is to be their object. It is therefore necessary to understand what public good is.

Public good is not a term opposed to the good of individuals ; on the contrary, it is the good of every individual collected. It is the good of all, because it is the good of every one : for as the public body is every individual collected, so the public good is the collected good of those individuals.

The foundation-principle of public good is justice, and wherever justice is impartially administered the public good is promoted ; for as it is to the good of every man that no injustice be done to him, so likewise it is to his good that the principle which secures him should not be violated in the person of another, because such a violation weakens his security, and leaves to chance what ought to be to him a rock to stand on.

But in order to understand more minutely, how the public good is to be promoted, and the manner in which the representatives are to act to promote it, we must have recourse to the original or first principles, on which the people formed themselves into a republic.

When a people agree to form themselves into a repubhc (for the word republic means the public good, or the good of the whole, in contradistinction to the despotic form, which makes the good of the sovereign, or of one man, the only

138 THE WHITINGS OF THOMAS PAINE. [1786

object of the government), when I say, they agree to do this, it is to be understood, that they mutually resolve and pledge themselves to each other, rich and poor alike, to support and maintain this rule of equal justice among them. They therefore renounce not only the despotic form, but the despotic principle, as well of governing as of being governed by mere will and power, and substitute in its place a government of justice.

By this mutual compact, the citizens of a republic put it out of their power, that is, they renounce, as detestable, the power of exercising, at any future time, any species of despotism over each other, or doing a thing not right in itself, because a majority of them may have strength of numbers sufficient to accomplish it.

In this pledge and compact * lies the foundation of the republic : and the security to the rich and the consolation to
  â€¢ This pledge and compact is contained in the declaration of rights prefixed to the constitution [of Pennsylvania], and is as follows :

I. That all men are born equally free and independent, and have certain natural, inherent and unalienable rights, amongst which are, the enjoying and defending life and liberty, acquiring, possessing and protecting property, and pursuing and obtaining happiness and safety.

II. That all men have a natural and unalienable right to worship almighty God, according to the dictates of their own consciences and understanding : and that no man ought or of right can be compelled to attend any religious worship, or erect or support any place of worship, or maintain any ministry, contrary to, or against, his own free will and consent : nor can any man, who acknowledges the being of a God, be justly deprived or abridged of any civil right as a citizen, on account of his religious sentiments or peculiar mode of religious worship : and that no authority can or ought to be vested in, or assumed by, any power whatever, that shall in any case interfere with, or in any manner control, the right of conscience in the free exercise of religious worship.

III. That the people of this state have the sole, exclusive and inherent right of governing and regulating the internal police of the same.

IV. That all power being originally inherent in, and consequently derived from, the people ; therefore, all officers of government, whether legislative or executive, are their trustees and servants, and at all times accountable to them.

V. That government is, or ought to be, instituted for the common benefit, protection and security of the people, nation or community ; and not for the particular emolument or advantage of any single man, family, or set of men, who are a part only of that community : and that the community hath an indubitable, unalienable and indefeasible right to reform, alter or abolish govern-1786] DISSERTATIONS ON GOVERNMENT, ETC. I39 the poor is, that what each man has is his own ; that no despotic sovereign can take it from him, and that the common cementing principle which holds all the parts of a republic together, secures him likewise from the despotism of numbers : for despotism may be more effectually acted by many over a few, than by one man over all.

Therefore, in order to know how far the power of an assembly, or a house of representatives can act in administering the affairs of a republic, we must examine how far the power of the people extends under the original compact they have made with each other ; for the power of the representatives is in many cases less, but never can be greater than that of the people represented ; and whatever the people in their mutual original compact have renounced the power of doing ment in such manner as shall be by that community judged most conducive to the public weal.

VI. That those who are employed in the legislative and executive business of the state may be restrained from oppression, the people have a right, at such periods as they may think proper, to reduce their public officers to a private station, and supply the vacancies by certain and regular elections.

VII. That all elections ought to be free ; and that all free men having a sufficient evident common interest with, and attachment to the community, have a right to elect officers, or to be elected into office.

VIII. That every member of society hath a right to be protected in the enjoyment of life, liberty and property, and therefore is bound to contribute his proportion towards the expense of that protection, and yield his personal service when necessary, or an equivalent thereto ; but no part of a man's property can be justly taken from him, or applied to public uses, without his own consent, or that of his legal representatives : nor can any man who is conscientiously scrupulous of bearing arms, be justly compelled thereto, if he will pay such equivalent : nor are the people bound by any laws, but such as they have in like manner assented to, for their common good.

IX. That in all prosecutions for criminal offences, a man hath a right to be heard by himself and his counsel, to demand the cause and nature of his accusation, to be confronted with the witnesses, to call for evidence in his favour, and a speedy public trial, by an impartial jury of the country, without the unanimous consent of which jury he cannot be found guilty : nor can he be compelled to give evidence against himself ; nor can any man be justly deprived of his liberty, except by the laws of the land, or the judgment of his peers.

X. That the people have a right to hold themselves, their houses, papers, and possessions free from search or seizure ; and therefore warrants without oaths or affirmations, first made, affording a sufficient foundation for them, towards, or acting over each other, the representatives cannot assume the power to do, because, as I have already said, the power of the representatives cannot be greater than that of the people they represent.

In this place it naturally presents itself that the people in their original compact of equal justice or first principles of a republic, renounced, as despotic, detestable and unjust, the assuming a right of breaking and violating their engagements, contracts and compacts with, or defrauding, imposing or tyrannizing over each other, and therefore the representatives cannot make an act to do it for them, and any such kind of act would be an attempt to depose not the personal sovereign, but the sovereign principle of the republic, and to introduce despotism in its stead.

and whereby any officer or messenger may be commanded or required to search suspected places, or to seize any person or persons, his or their property, not particularly described, are contrary to that right, and ought not to be granted.

XI. That in controversies respecting property, and in suits between man and man, the parties have a right to trial by jury, which ought to be held sacred.

XII. That the people have a right to freedom of speech, and of writing and publishing their sentiments : therefore the freedom of the press ought not to be restrained.

XIII. That the people have a right to bear arms for the defence of themselves and the state — and as standing armies, in the time of peace, are dangerous to liberty, they ought not to be kept up — and that the military should be kept under a strict subordination to, and governed by, the civil power.

XIV. That a frequent recurrence to fundamental principles, and a 6rm adherence to justice, moderation, temperance, industry and frugality are absolutely necessary to preserve the blessings of liberty and keep a government free — the people ought therefore to pay particular attention to these points in the choice of officers and representatives, and have a right to exact a due and constant regard to them, from their legislators and magistrates, in the making and executing such laws as are necessary for the good government of the state.

XV. That all men have a natural inherent right to emigrate from one state to another that will receive them, or to form a new state in vacant countries, or in such countries as they can purchase, whenever they think that thereby they may promote their own happiness.

XVI. That the people have a right to assemble together, to consult for their common good, to instruct their representatives, and to apply to the legislature for redress of grievances, by address, petition, or remonstrance. — Author.

It may in this place be proper to distinguish between that species of sovereignty which is claimed and exercised by despotic monarchs, and that sovereignty which the citizens of a republic inherit and retain. The sovereignty of a despotic monarch assumes the power of making wrong right, or right wrong, as he pleases or as it suits him. The sovereignty in a republic is exercised to keep right and wrong in their proper and distinct places, and never suffer the one to usurp the place of the other. A republic, properly understood, is \^ a sovereignty of justice, in contradistinction to a sovereignty '^ of will.

Our experience in republicanism is yet so slender, that it is much to be doubted, whether all our public laws and acts are consistent with, or can be justified on, the principles of a republican government.

We have been so much habited to act in committees at the commencement of the dispute, and during the interregnum of government, and in many cases since, and to adopt expedients warranted by necessity, and to permit to ourselves a discretionary use of power, suited to the spur and exigency of the moment, that a man transferred from a committee to a seat in the legislature, imperceptibly takes with him the ideas and habits he has been accustomed to, and continues to think like a committee-man instead of a legislator, and to govern by the spirit rather than by the rule of the constitution and the principles of the repubHc.

Having already stated that the power of the representatives can never exceed the power of the people whom they S represent, I now proceed to examine more particularly, what the power of the representatives is. 
It is, in the first place, the power of acting as legislators in making laws — and in the second place, the powe^ of acting in certain cases, as agents or negotiators for the commonwealth, for such purposes as the circumstances of the commonwealth require.

A very strange confusion of ideas, dangerous to the credit, stability, and the good and honor of the commonwealth, has arisen, by confounding those two distinct powers and things together, and blending every act of the assembly, of whatever kind it may be, under one general name, of Laws of the Commonwealth, and thereby creating an opinion (which is truly of the despotic kind) that every succeeding assembly has an equal power over every transaction, as well as law, done by a former assembly.

All laws are acts, but all acts are not laws. Many of the acts of the assembly are acts of agency or negociation, that is they are acts of contract and agreement, on the part of the state, with certain persons therein mentioned, and for certain purposes therein recited. An act of this kind, after it has passed the house, is of the nature of a deed or contract, signed, sealed and delivered ; and subject to the same general laws and principles of justice as all other deeds and contracts are : for in a transaction of this kind, the state stands as an individual, and can be known in no other character in a court of justice.

By " laws," as distinct from the agency transactions, or matters of negociation, are to be comprehended all those public acts of the assembly or commonwealth, which have a universal operation, or apply themselves to every individual of the commonwealth. Of this kind are the laws for the distribution and administration of justice, for the preservation of the peace, for the security of property, for raising the necessary revenue by just proportions, &c.

Acts of this kind are properly laws, and they may be altered, amended and repealed, or others substituted in their places, as experience shall direct, for the better effecting the purpose for which they were intended : and the right and power of the assembly to do this is derived from the right and power which the people, were they all assembled together, instead of being represented, would have to do the same thing : because, in acts or laws of this kind, there is no other party than the public. The law, or the alteration, or the repeal, is for themselves ; — and whatever the effects may be, it falls on themselves ; — if for the better, they have the benefit of it — if for the worse, they suffer the inconvenience. No violence to any one is here offered — no breach of faith is here committed. It is therefore one of those rights and powers which is within the sense, meaning and limits of the original compact of justice which they formed with each other as the foundation-principle of the repubhc, and being one of those rights and powers, it devolves on their representatives by delegation.

As it is not my intention (neither is it within the limits assigned to this work) to define every species of what may be called laws (but rather to distinguish that part in which the representatives act as agents or negotiators for the state from the legislative part,) I shall pass on to distinguish and describe those acts of the assembly which are acts of agency or negotiation, and to show that as they are different in their nature, construction and operation, from legislative acts, so likewise the power and authority of the assembly over them, after they are passed, is different.

It must occur to every person on the first reflection, that the affairs and circumstances of a commonwealth require other business to be done besides that of making laws, and, consequently, that the different kinds of business cannot all be classed under one name, or be subject to one and the same rule of treatment. — But to proceed —

By agency transactions, or matters of negociation, done by the assembly, are to be comprehended all that kind of public business, which the assembly, as representatives of the republic, transact in its behalf, with a certain person or persons, or part or parts of the republic, for purposes mentioned in the act, and which the assembly confirm and ratify on the part of the commonwealth, by affixing to it the seal of the state.

An act of this kind, differs from a law of the before-mentioned kind ; because here are two parties and there but one, and the parties are bound to perform different and distinct parts : whereas, in the before-mentioned law, every man's part was the same.

These acts, therefore, though numbered among thojjiws, are evidently distinct therefrom, and are not of the legislative kind. The former are laws for the government of the commonwealth ; these are transactions of business, such as, selling and conveying an estate belonging to the public, or buying one ; acts for borrowing money, and fixing with the lender the terms and modes of payment ; acts of agreement and contract, with a certain person or persons, for certain purposes : and, in short, every act in which two parties, the state being one, are particularly mentioned or described, and in which the form and nature of a bargain or contract is comprehended. — These, if for custom and uniformity sake we call them by the name of laws, are not laws for the government of the commonwealth, but for the government of the contracting parties, as all deeds and contracts are ; and are not, properly speaking, acts of the assembly, but joint acts, or acts of the assembly in behalf of the commonwealth on one part, and certain persons therein mentioned on the other part.

Acts of this kind are distinguishable into two classes : —

1st, Those wherein the matters inserted in the act have already been settled and adjusted between the state on one part, and the persons therein mentioned on the other part. In this case the act is the completion and ratification of the contract or matters therein recited. It is in fact a deed signed, sealed and delivered.

2d, Those acts wherein the matters have not been already agreed upon, and wherein the act only holds forth certain propositions and terms to be accepted of and acceded to.

I shall give an instance of each of those acts. First, the state wants the loan of a sum of money — certain persons make an offer to government to lend that sum, and send in their proposals: the government accept these proposals, and all the matters of the loan and the payment are agreed on ; and an act is passed according to the usual form of passing acts, ratifying and confirming this agreement. This act is final.

In the second case, — the state, as in the preceding one, wants a loan of money — the assembly passes an act holding forth the terms on which it will borrow and pay : this act has no force until the propositions and terms are accepted of and acceded to by some person or persons, and when those terms are accepted of and complied with, the act is binding on the state. — But if at the meeting of the next assembly, or any other, the whole sum intended to be borrowed, should not be borrowed, that assembly may stop where they are, and discontinue proceeding with the loan, or make new propositions and terms for the remainder ; but so far as the subscriptions have been filled up, and the terms complied with, it is, as in the first case, a signed deed : and in the same manner are all acts, let the matters in them be what they may, wherein, as I have before mentioned, the state on one part, and certain individuals on the other part, are parties in the act.

If the state should become a bankrupt, the creditors, as in all cases of bankruptcy, will be sufferers ; they will have but a dividend for the whole : but this is not a dissolution of the contract, but an accommodation of it, arising from necessity. And so in all cases of this kind, if an inability takes place on either side, the contract cannot be performed, and some accommodation must be gone into, or the matter falls through of itself.

It may likewise, though it ought not to, happen that in performing the matters, agreeably to the terms of the act, inconveniences, unforeseen at the time of making the act, may arise to either or both parties : in this case, those inconveniences may be removed by the mutual consent and agreement of the parties, and each finds its benefit in so doing : for in a republic it is the harmony of its parts that constitutes their several and mutual good.

But the acts themselves are legally binding, as much as if they had been made between two private individuals. The greatness of one party cannot give it a superiority or advantage over the other. The state, or its representatives, the assembly, has no more power over an act of this kind, after it has passed, than if the state was a private person. It is the glory of a republic to have it so, because it secures the individual from becoming the prey of power, and prevents might from overcoming right.

VOL. II. — 10 If any difference or dispute arise afterwards between the state and the individuals with whom the agreement is made respecting the contract, or the meaning, or extent of any of the matters contained in the act, which may affect the property or interest of either, such difference or dispute must be judged of, and decided upon, by the laws of the land, in a court of justice and trial by jury ; that is, by the laws of the land already in being at the time such act and contract was made. — No law made afterwards can apply to the case, either directly, or by construction or implication : for such a law would be a retrospective law, or a law made after the fact, and cannot even be produced in court as applying to the case before it for judgment.

That this is justice, that it is the true principle of republican government, no man will be so hardy as to deny. — If, therefore, a lawful contract or agreement, sealed and ratified, cannot be affected or altered by any act made afterwards, how much more inconsistent and irrational, despotic and unjust would it be, to think of making an act with the professed intention of breaking up a contract already signed and sealed.

That it is possible an assembly, in the heat and indiscretion of party, and meditating on power rather than on the principle by which all power in a republican government is governed, that of equal justice, may fall into the error of passing such an act, is admitted ; — but it would be an actless act, an act that goes for nothing, an act which the courts of justice, and the established laws of the land, could know nothing of.

Because such an act would be an act of one party only, not only without, but against the consent of the other ; and, therefore, cannot be produced to affect a contract made between the two. — That the violation of a contract should be set up as a justification to the violator, would be the same thing as to say, that a man by breaking his promise is freed from the obligation of it, or that by transgressing the laws, he exempts himself from the punishment of them.

Besides the constitutional and legal reasons why an assembly cannot, of its own act and authority, undo or make void a contract made between the state (by a former assembly) and certain individuals, may be added what may be called the natural reasons, or those reasons which the plain rules of common sense point out to every man. Among which are the following :

The principals, or real parties in the contract, are the state and the persons contracted with. The assembly is not a party, but an agent in behalf of the state, authorised and empowered to transact its affairs.

Therefore it is the state that is bound on one part and certain individuals on the other part, and the performance of the contract, according to the conditions of it, devolves on succeeding assemblies, not as principals, but as agents.

Therefore, for the next or any other assembly to undertake to dissolve the state from its obligation is an assumption of power of a novel and extraordinary kind. — It is the servant attempting to free his master.

The election of new assemblies following each other makes no difference in the nature of the thing. The state is still the same state. The public is still the same body. These do not annually expire though the time of an assembly does. These are not new-created every year, nor can they be displaced from their original standing ; but are a perpetual, permanent body, always in being and still the same.

But if we adopt the vague, inconsistent idea that every new assembly has a full and complete authority over every act done by the state in a former assembly, and confound together laws, contracts, and every species of public business, it will lead us into a wilderness of endless confusion and insurmountable difficulties. It would be declaring an assembly despotic for the time being. — Instead of a government of established principles administered by established rules, the authority of government by being strained so high, would, by the same rule, be reduced proportionably as low, and would be no other than that of a committee of the state, acting with discretionary powers for one year. Every new election would be a new revolution, or it would suppose the public of the former year dead and a new pubUc in its place.

Having now endeavoured to fix a precise idea to, and distinguish between legislative acts and acts of negotiation and agency, I shall proceed to apply this distinction to the case now in dispute, respecting the charter of the bank.

The charter of the bank, or what is the same thing, the act for incorporating it, is to all intents and purposes an act of negotiation and contract, entered into, and confirmed between the state on one part, and certain persons mentioned therein on the other part. The purpose for which the act was done on the part of the state is therein recited, viz. the support which the finances of the country would derive therefrom. The incorporating clause is the condition or obligation on the part of the state'; and the obligation on the part of the bank, is " that nothing contained in that act shall be construed to authorise the said corporation to exercise any powers in this state repugnant to the laws or constitution thereof."

Here are all the marks and evidences of a contract. The parties — the purport — and the reciprocal obligations.

That this is a contract, or a joint act, is evident from its being in the power of either of the parties to have forbidden or prevented its being done. The state could not force the stockholders of the bank to be a corporation, and therefore as their consent was necessary to the making the act, their dissent would have prevented its being made ; so on the other hand, as the bank could not force the state to incorporate them, the consent or dissent of the state would have had the same effect to do, or to prevent its being done ; and as neither of the parties could make the act alone, for the same reason can neither of them dissolve it alone : but this is not the case with a law or act of legislation, and therefore the difference proves it to be an act of a different kind.

The bank may forfeit the charter by delinquency, but the delinquency must be proved and established by a legal process in a court of justice and trial by jury ; for the state, or the assembly, is not to be a judge in its own case, but must come to the laws of the land for judgment ; for that which is law for the individual, is likewise law for the state.

Before I enter further into this affair, I shall go back to the circumstances of the country, and the condition the government was in, for some time before, as well as at the time it entered into this engagement with the bank, and this act of incorporation was passed : for the government of this state, and I suppose the same of the rest, were then in want of two of the most essential matters which governments could be destitute of — money and credit.

In looking back to those times, and bringing forward some of the circumstances attending them, I feel myself entering on unpleasant and disagreeable ground ; because some of the matters which the attacks on the bank now make it necessary to state, in order to bring the affair fully before the public, will not add honour to those who have promoted that measure and carried it through the late house of assembly ; and for whom, though my own judgment and opinion on the case oblige me to differ from, I retain my esteem, and the social remembrance of times past. But, I trust, those gentlemen will do me the justice to recollect my exceeding earnestness with them, last spring, when the attack on the bank first broke out ; for it clearly appeared to me one of those overheated measures, which, neither the country at large, nor their own constituents, would justify them in, when it came to be fully understood ; for however high a party measure may be carried in an assembly, the people out of doors are all the while following their several occupations and employments, minding their farms and their business, and take their own time and leisure to judge of public measures; the consequence of which is, that they often judge in a cooler spirit than their representatives act in.

It may be easily recollected that the present bank was preceded by, and rose out of a former one, called the Pennsylvania bank which began a few months before ; the occasion of which I shall briefly state.

posed of many of the same members, and nearly all of the same connexion, which composed the late house that began the attack on the bank. I served as clerk of the assembly of 1780, which station I resigned at the end of the year, and accompanied a much lamented friend, the late colonel John Laurens, on an embassy to France.

The spring of 1780 was marked with an accumulation of misfortunes. The reliance placed on the defence of Charleston failed, and exceedingly lowered or depressed the spirits of the country. The measures of government, from the want of money, means and credit, dragged on like a heavy loaded carriage without wheels, and were nearly got to what a countryman would understand by a dead pull.

The assembly of that year met, by adjournment, at an unusual time, the loth of May, and what particularly added to the affliction, was, that so many of the members, instead of spiriting up their constituents to the most nervous exertions, came to the assembly furnished with petitions to be exempt from paying taxes. How the public measures were to be carried on, the country defended, and the army recruited, clothed, fed, and paid, when the only resource, and that not half sufificient, that of taxes, should be relaxed to almost nothing, was a matter too gloomy to look at. A language very different from that of petitions ought at this time to have been the language of every one. A declaration to have stood forth with their lives and fortunes, and a reprobation of every thought of partial indulgence would have sounded much better than petitions.

While the assembly was sitting, a letter from the commander-in-chief was received by the executive council and transmitted to the house. The doors were shut, and it fell officially to me to read.

In this letter the naked truth of things was unfolded. Among other informations, the general said, that notwithstanding his confidence in the attachment of the army to the cause of the country, the distress of it, from the want of every necessary which men could be destitute of, had arisen to such a pitch, that the appearances of mutiny and discon- tent were so strongly marked on the countenance of the army, that he dreaded the event of every hour.

When the letter was read, I observed a despairing silence . in the house. Nobody spoke for a considerable time. At length a member, of whose fortitude to withstand misfortunes I had a high opinion, rose : " If," said he, " the account in that letter is a true state of things, and we are in the situation there represented, it appears to me in vain to contend the matter any longer. We may as well give up at first as at last."

The gentleman who spoke next, was (to the best of my recollection) a member of Bucks county, who, in a cheerful note, endeavored to dissipate the gloom of the house — " Well, well," said he, " don't let the house despair, if things are not so well as we wish, we must endeavour to make them better." And on a motion for adjournment, the conversation went no further.

There was now no time to lose, and something absolutely necessary to be done, which was not within the immediate power of the house to do ; for what with the depreciation of the currency, and slow operation of taxes, and the petitions to be exempted therefrom, the treasury was moneyless, and the government creditless.

If the assembly could not give the assistance which the necessity of the case immediately required, it was very proper the matter should be known by those who either could or would endeavor to do it. To conceal the information within the house, and not provide the relief which that information required, was making no use of the knowledge, and endangering the public cause. The only thing that now remained, and was capable of reaching the case, was private credit, and the voluntary aid of individuals ; and under this impression, on my return from the house, I drew out the salary due to me as clerk, enclosed five hundred dollars to a gentleman in this city, in part of the whole, and wrote fully to him on the subject of our affairs.

The gentleman to whom this letter was addressed is Mr. Blair M'Clenaghan. I mentioned to him, that notwithstand- ing the current opinion that the enemy were beaten from, before Charleston, there were too many reasons to believe the place was then taken and in the hands of the enemy : the consequence of which would be, that a great part of the British force would return, and join at New-York. That our own army required to be augmented, ten thousand men, to be able to stand against the combined force of the enemy. I informed Mr. M'Clenaghan of general Washington's letter, the extreme distresses he was surrounded with, and the absolute occasion there was for the citizens to exert themselves at this time, which there was no doubt they would do, if the necessity was made known to them ; for that the ability of government was exhausted. I requested Mr. M'Clenaghan to propose a voluntary subscription among his friends, and added, that I had enclosed five hundred dollars as my mite thereto, and that I would increase it as far as the last ability would enable me to go.*

The next day Mr. M'Clenaghan informed me that he had communicated the contents of the letter at a meeting of gentlemen at the coffee-house, and that a subscription was immediately began ; that Mr. Robert Morris and himself had subscribed two hundred pounds each, in hard money, and that the subscription was going on very successfully. This subscription was intended as a donation, and to be given in bounties to promote the recruiting service. It is dated June 8th, 1780. The original subscription list is now in my possession — it amounts to four hundred pounds hard money, and one hundred and one thousand three hundred arid sixty pounds continental.

While this subscription was going forward, information of the loss of Charleston arrived, f and on a communication from several members of congress to certain gentlemen of this city, of the increasing distresses and dangers then taking place, a meeting was held of the subscribers, and such other
  â€¢ Mr. M'Clenaghan being now returned from Europe, has my consent to show this letter to any gentleman who may be inclined to see it. — Author,

\ Colonel Tennant, aid to general Lincoln, arrived the 14th of June, with despatches of the capitulation of Charleston. — Author.

1786] DISSERTATIONS ON GOVERNMENT, ETC. 1 5 3.

gentlemen who chose to attend, at the city tavern. This meeting was on the 17th of June, nine days after the subscriptions had begun.

At this meeting it was resolved to open a security-subscription, to the amount of three hundred thousand pounds, Pennsylvania currency, in real money ; the subscribers to execute bonds to the amount of their subscriptions, and to form a bank thereon for supplying the army. This being resolved on and carried into execution, the plan of the first subscriptions was discontinued, and this extended one established in its stead.

By means of this bank the army was supplied through the campaign, and being at the same time recruited, was enabled to maintain its ground ; and on the appointment of Mr. Morris to be superintendent of the finances the spring following, he arranged the system of the present bank, styled the bank of North America, and many of the subscribers of the former bank tranferred their subscriptions into this.

Towards the establishment of this bank, congress passed an ordinance of incorporation, December 21st, which the government of Pennsylvania recognized by sundry matters : and afterwards, on an application of the president and directors of the bank, through the mediation of the executive council, the assembly agreed to, and passed the state act of incorporation April ist, 1782.

Thus arose the bank — produced by the distresses of the times and the enterprising spirit of patriotic individuals. — Those individuals furnished and risked the money, and the aid which the government contributed was that of incorporating them. — It would have been well if the State had made all its bargains and contracts with as much true policy as it made this : for a greater service for so small a consideration, that only of an act of incorporation, has not been obtained since the government existed.

Having now shown how the bank originated, I shall proceed with my remarks.

The sudden restoration of public and private credit, which took place on the establishment of the bank, is an event as extraordinary in itself as any domestic occurence during the progress of the revolution.

How far a spirit of envy might operate to produce the attack on the bank during the sitting of the late assembly, is best known and felt by those who began or promoted the attack. The bank had rendered services which the assembly of 1780 could not, and acquired an honour which many of its members might be unwilling to own, and wish to obscure.

But surely every government, acting on the principles of patriotism and public good, would cherish an institution capable of rendering such advantages to the community. The establishment of the bank in one of the most trying vicissitudes of the war, its zealous services in the public cause, its influence in restoring and supporting credit, and the punctuality with which all its business has been transacted, are matters, that so far from meriting the treatment it met with from the late assembly, are an honour to the state, and what the body of her citizens may be proud to own.

But the attack on the bank, as a chartered institution, under the protection of its violators, however criminal it may be as an error of government, or impolitic as a measure of party, is not to be charged on the constituents of those who made the attack. It appears from every circumstance that has come to light, to be a measure which that assembly contrived of itself. The members did not come charged with the affair from their constituents. There was no idea of such a thing when they were elected or when they met. The hasty and precipitate manner in which it was hurried through the house, and the refusal of the house to hear the directors of the bank in its defence, prior to the publication of the repealing bill for public consideration, operated to prevent their constituents comprehending the subject: therefore, whatever may be wrong in the proceedings lies not at the door of the public. The house took the affair on its own shoulders, and whatever blame there is, lies on them.

The matter must have been prejudged and predetermined by a majority of the members out of the house, before it was brought into it. The whole business appears to have been fixed at once, and all reasoning or debate on the case rendered useless.

Petitions from a very inconsiderable number of persons, suddenly procured, and so privately done, as to be a secret among the few that signed them, were presented to the house and read twice in one day, and referred to a committee of the house to inquire and report thereon. I here subjoin the petition * and the report, and shall exercise the right
  â€¢ Minutes of the assembly, March 21, 1785. Petitions from a considerable number of the inhabitants of Chester county were read, representing that the bank established at Philadelphia has fatal effects upon the community ; that whilst men are enabled, by means of the bank, to receive near three times the rate of common interest, and at the same time receive their money at very short warning, whenever they have occasion for it, it will be impossible for the husbandman or mechanic to borrow on the former terms of legal interest and distant payments of the principal ; that the best security will not enable the person to borrow : that experience clearly demonstrates the mischievous consequences of this institution to the fair trader ; that imposters have been enabled to support themselves in a fictitious credit, by means of a temporary punctuality at the bank, until they have drawn in their honest neighbours to trust them with their property, or to pledge their credit as sureties, and have been finally involved in ruin and distress; that they have repeatedly seen the stopping of discounts at the bank operate on the trading part of the community, with a degree of violence scarcely inferior to that of a stagnation of the blood in the human body, hurrying the wretched merchant who hath debts to pay into the hands of griping usurers : that the directors of the bank may give such preference in trade, by advances of money, to their particular favourites, as to destroy that equality which ought to prevail in a commercial country ; that paper money has often proved beneficial to the state, but the bank forbids it, and the people must acquiesce : therefore, and in order to restore public confidence and private security, they pray that a bill may be brought in and pissed into n law for repealing the law for incorporating the bank.

March 28. The report of the committee, read March 25, on the petitions from the counties of Chester and Berks, and the city of Philadelphia and its vicinity, praying the act of the assembly, whereby the bank was established at Philadelphia, may be repealed, was read the second time as follows— OT2.

The committee to whom was referred the petitions concerning the bank established at Philadelphia, and who were instructed to inquire whether the said bank be compatible with the public safety, and that equality which ought ever to prevail between the individuals of a republic, beg leave to report, that it is the opinion of this committee that the said bank, as at present established, and privilege of a citizen in examining their merits, not for the purpose of opposition, but with a design of making an intricate affair more generally and better understood.

So far as my private judgment is capable of comprehending the subject, it appears to me, that the committee were unacquainted with, and have totally mistaken, the nature and business of a bank, as well as the matter committed to them, considered as a proceeding of government.

They were instructed by the house to inquire whether the bank established at Philadelphia was compatible with the public safety. It is scarcely possible to suppose the instructions meant no more than that they were to inquire of one another. It is certain they made no inquiry at the bank, to inform themselves of the situation of its affairs, how they were conducted, what aids it had rendered the public cause, or whether any ; nor do the committee produce in their report a single fact or circumstance to show that they made any inquiry at all, or whether the rumours then circulated were true or false ; but content themselves with modelling the insinuations of the petitions into a report and giving an opinion thereon. It would appear from the report, that is in every view incompatible with the public safety — that in the present state of our trade, the said bank has a direct tendency to banish a great part of the specie from the country, so as to produce a scarcity of money, and to collect into the hands of the stockholders of the said bank, almost the whole of the money which remains amongst us. That the accumulation of enormous wealth in the hands of a society, who claim perpetual duration, will necessarily produce a degree of influence and power, which cannot be intrusted in the hands of any set of men whatsoever, without endangering the public safety. That the said bank, in its corporate capacity, is empowered to hold estates to the amount of ten millions of dollars, and by the tenor of the present charter, is to exist forever, without being obliged to yield any emolument to the government, or to be at all dependent upon it. That the great profits of the bank which will daily increase as money grows scarcer, and which already far exceed the profits of European banks, have tempted foreigners to vest their money in this bank, and thus to draw from us large sums for interest.

That foreigners will doubtless be more and more induced to become stockholders, until the time may arrive when this enormous engine of power may become subject to foreign influence ; this country may be agitated with the politics of European courts, and the good people of America reduced once more the committee either conceived that the house had already determined how it would act without regard to the case, and that they were only a committee for form sake, and to give a colour of inquiry without making any, or that the case was referred to them, as law-questions are sometimes referred to law-officers for an opinion only.

This method of doing public business serves exceedingly to mislead a country. — When the constituents of an assembly hear that an inquiry into any matter is directed to be made, and a committee appointed for that purpose, they naturally conclude that the inquiry is made, and that the future proceedings of the house are in consequence of the matters, facts, and information obtained by means of that inquiry. — But here is a committee of inquiry making no inquiry at all, and giving an opinion on a case without inquiring into the merits of it. This proceeding of the committee would justify an opinion that it was not their wish to get, but to get over information, and lest the inquiry should not suit their wishes, omitted to make any. The subsequent conduct of the house, in resolving not to hear the directors of the bank, on into a state of subordination, and dependance upon some one or other of the European powers. That at best, if it were even confined to the hands of Americans, it would be totally destructive of that equality which, ought to prevail in a republic. We have nothing in our free and equal government capable of balancing the influence which this bank must create — and we see nothing, which in the course of a few years, can prevent the directors of the bank from governing Pennsylvania. Already we have felt its influence indirectly interfering in the measures of the legislature. Already the house of assembly, the representatives of the people, have been threatened, that the credit of our paper currency will be blasted by the bank ; and if this growing evil continues, we fear the time is not very distant, when the bank will be able to dictate to the legislature, what laws to pass and what to forbear.

Your committee therefore beg leave further to report the following resolution to be adopted by the house — viz.

Resolved, that a committee be appointed to bring in a bill to repeal the act of assembly passed the 1st day of April, 1782, entitled, "An act to incorporate the subscribers to the bank of North-America : " and also to repeal one other act of assembly, passed the 18th of March, 1782, entitled, "An act for preventing and punishing the counterfeiting of the common seal, bank bills and bank notes of the president, directors and company, of the bank of North-America, and for the other purposes therein mentioned." — Author. their application for that purpose, prior to the publication of the bill for the consideration of the people, strongly corroborates this opinion : for why should not the house hear them, unless it was apprehensive that the bank, by such a public opportunity, would produce proofs of its services and usefulness, that would not suit the temper and views of its oppressors?

But if the house did not wish or choose to hear the defence of the bank, it was no reason that their constituents should not. The constitution of this state, in lieu of having two branches of legislature, has substituted, that, " to the end that laws before they are enacted may be more maturely considered, and the inconvenience of hasty determinations as much as possible prevented, all bills of a public nature shall be printed for the consideration of the people." * The people, therefore, according to the constitution, stand in the place of another house ; or, more properly speaking, are a house in their own right. But in this instance, the assembly arrogates the whole power to itself, and places itself as a bar to stop the necessary information spreading among the people. The application of the bank to be heard before the bill was published for public consideration had two objects. First, to the house, — and secondly, through the house to the people, who are as another house. It was as a defence in the first instance, and as an appeal in the second. But the assembly absorbs the right of the people to judge ; because, by refusing to hear the defence, they barred the appeal. Were there no other cause which the constituents of that assembly had for censuring its conduct, than the exceeding unfairness, partiality, and arbitrariness with which its business was transacted, it would be cause sufficient.

Let the constituents of assemblies differ, as they may, respecting certain peculiarities in the form of the constitution, they will all agree in supporting its principles, and in reprobating unfair proceedings and despotic measures. — Every constituent is a member of the republic, which is a station of more consequence to him than being a member of a party, Constitution, sect. 15th. — Author. and though they may differ from each other in their choice of persons to transact |:he public business, it is of equal importance to all parties that the business be done on right principles ; otherwise our laws and acts, instead of being founded in justice, will be founded in party, and be laws and acts of retaliation ; and instead of being a republic of free citizens, we shall be alternately tyrants and slaves. But to return to the report.

The report begins by stating that, "The committee to whom was referred the petitions concerning the bank established at Philadelphia, and who were instructed to inquire whether the said bank be compatible with the public safety, and that equality which ought ever to prevail between the individuals of a republic, beg leave to report " (not that they have made any inquiry, but) " that it is the opinion of this committee, that the said bank, as at present established, is, in every view, incompatible with the public safety." But why is it so ? Here is an opinion unfounded and unwarranted. The committee have begun their report at the wrong end ; for an opinion, when given as a matter of judgment, is an action of the mind which follows a fact, but here it is put in the room of one.

The report then says, " that in the present state of our trade, the said bank has a direct tendency to banish a great part of the specie from the country, and to collect into the hands of the stockholders of the bank, almost the whole of the money which remains among us."

Here is another mere assertion, just like the former, without a single fact or circumstance to show why it is made, or whereon it is founded. Now the very reverse of what the committee asserts is the natural consequence of a bank. Specie may be called the stock in trade of the bank, it is therefore its interest to prevent it from wandering out of the country, and to keep a constant standing supply to be ready for all domestic occasions and demands. Were it true that the bank has a direct tendency to banish the specie from the country, there would soon be an end to the bank ; and, therefore, the committee have so far mistaken the mat- ter, as to put their fears in the place of their wishes : for if it is to happen as the committee states, let the bank alone and it will cease of itself, and the repealing act need not have been passed.

It is the interest of the bank that people should keep their cash there, and all commercial countries find the exceeding great convenience of having a general depository for their cash. But so far from banishing it, there are no two classes of people in America who are so much interested in preserving hard money in the country as the bank and the merchant. Neither of them can carry on their business without it. Their opposition to the paper money of the late assembly was because it has a direct effect, as far as it is able, to banish the specie, and that without providing any means for bringing more in.

The committee must have been aware of this, and therefore chose to spread the first alarm, and, groundless as it was, to trust to the delusion.

As the keeping the specie in the country is the interest of the bank, so it has the best opportunities of preventing its being sent away, and the earliest knowledge of such a design. While the bank is the general depository of cash, no great sums can be obtained without getting it from thence, and as it is evidently prejudicial to its interest to advance money to be sent abroad, because in this case the money cannot by circulation return again, the bank, therefore, is interested in preventing what the committee would have it suspected of promoting.

It is to prevent the exportation of cash, and to retain it in the country, that the bank has, on several occasions, stopped the discounting notes till the danger has been passed.* The
  â€¢ The petitions say, " That they have frequently seen the stopping of discounts at the bank operate on the trading part of the community, with a degree of violence scarcely inferior to that of a stagnation of the blood in the human body, hurrying the vifretched merchant who hath debts to pay into the hands of griping Tusurers. "

As the persons who say or signed this live somewhere in Chester county, they are not, from situation, certain of what they say. Those petitions have every appearance of being contrived for the purpose of bringing the matter on. The

1786] DISSERTATIONS ON GOVERNMENT, ETC. l6l first part, therefore, of the assertion, that of banishing the specie, contains an apprehension as needless as it is groundless, and which, had the committee understood, or been the least informed of the nature of a bank, they could not have made. It is very probable that some of the opposers of the bank are those persons who have been disappointed in their attempts to obtain specie for this purpose, and now disguise their opposition under other pretences.

I now come to the second part of the assertion, which is, that when the bank has banished a great part of the specie from the country, " it will collect into the hands of the stockholders almost the whole of the money which remains among us." But how, or by what means, the bank is to accomplish this wonderful feat, the committee have not informed us. Whether people are to give their money to the bank for nothing, or whether the bank is to charm it from them as a rattlesnake charms a squirrel from a tree, the committee have left us as much in the dark about as they were themselves.

Is it possible the committee should know so very little of the matter, as not to know that no part of the money which at any time may be in the bank belongs to the stockholders?

petitions and the report have strong evidence in them of being both drawn by the same person : for the report is as clearly the echo of the petitions as ever the address of the British parliament was the echo of the king's speech.

Besides the reason I have already given for occasionally stopping discounting notes at the bank, there are other necessary reasons. It is for the purpose of settling accounts : short reckonings make long friends. The bank lends its money for short periods, and by that means assists a great many different people : and if 'it did not sometimes stop discounting as a means of settling with the persons it has already lent its money to, those persons would find a way to keep what they had borrowed longer than they ought, and prevent others being assisted. It is a fact, and some of the committee know it to be so, that sundry of those persons who then opposed the bank acted this part.

The stopping the discounts do not, and cannot, operate to call in the loans sooner than the time for which they were lent, and therefore the charge is false that ' ' it hurries men into the hands of griping usurers : " and the truth is, that it operates to keep them from them.

If petitions are to be contrived to cover the design of a house of assembly, and give a pretence for its conduct, or if a house is to be led by the nose by the idle tale of any fifty or sixty signers to a petition, it is time for the public to look a little closer into the conduct of its representatives. — Author. Not even the original capital which they put in is any part of it their own, until every person who has a demand upon the bank is paid, and if there is not a sufficiency for this purpose, on the balance of loss and gain, the original money of the stockholders must make up the deficiency.

The money, which at any time may be in the bank, is the property of every man who holds a bank note, or deposits cash there, or who has a just demand upon it from the city of Philadelphia up to fort Pitt, or to any part of the United States ; and he can draw the money from it when he pleases. Its being in the bank, does not in the least make it the property of the stockholders, any more than the money in the state treasury is the property of the state treasurer. They are only stewards over it for those who please to put it, or let it remain there : and, therefore, this second part of the assertion is somewhat ridiculous.

The next paragraph in the report is, " that the accumulation of enormous wealth in the hands of a society who claim perpetual duration, will necessarily produce a degree of influence and power which cannot be entrusted in the hands of any set of men whatsoever " (the committee I presume excepted) " without endangering public safety." There is an air of solemn fear in this paragraph which is something like introducing a ghost in a play to keep people from laughing at the players.

I have already shown that whatever wealth there may be, at any time, in the bank, is the property of those who have demands upon the bank, and not the property of the stockholders. As a society they hold no property, and most probably never will, unless it should be a house to transact their business in, instead of hiring one. Every half year the bank settles its accounts, and each individual stockholder takes his dividend of gain or loss to himself, and the bank begins the next half year in the same manner it began the first, and so on. This being the nature of a bank, there can be no accumulation of wealth among them as a society.

For what purpose the word " society " is introduced into the report I do not know, unless it be to make a false impression upon people's minds. It has no connexion with the subject, for the bank is not a society, but a company, and denominated so in the charter. There are several religious societies incorporated in this state, which hold property as the right of those societies, and to which no person can belong that is not of the same religious profession. But this is not the case with the bank. The bank is a company for the promotion and convenience of commerce, which is a matter in which all the state is interested, and holds no property in the manner which those societies do.

But there is a direct contradiction in this paragraph to that which goes before it. The committee, there, accuses the bank of banishing the specie, and here, of accumulating enormous sums of it. So here are two enormous sums of specie ; one enormous sum going out, and another enormous sum remaining. To reconcile this contradiction, the committee should have added to their report, that they suspected the bank had found out the philosopher' s stone, and kept it a secret.

The next paragraph is, " that the said bank, in its corporate capacity, is empowered to hold estates to the amount of ten millions of dollars, and by the tenor of the present charter is to exist for ever, without being obliged to yield any emolument to the government, or be in the least dependant on it."

The committee have gone so vehemently into this business, and so completely shown their want of knowledge in every point of it, as to make, in the first part of this paragraph, a fear of what, the greater fear is, will never happen. Had the committee known any thing of banking, they must have known, that the objection against banks has been (not that they held great estates but) that they held none; that they had no real, fixed, and visible property, and that it is the maxim and practice of banks not to hold any.

The honourable chancellor Livingston, late secretary for foreign affairs, did me the honour of showing, and discoursing with me on, a plan of a bank he had drawn up for the state of New-York. In this plan it was made a condition or obligation, that whatever the capital of the bank amounted to in specie,' there should be added twice as much in real estates. But the mercantile interest rejected the proposition. It was a very good piece of policy in the assembly which passed the charter act, to add the clause to empower the bank to purchase and hold real estates. It was as an inducement to the bank to do it, because such estates being held as the property of the bank would be so many mortgages to the public in addition to the money capital of the bank.

But the doubt is that the bank will not be induced to accept the opportunity. The bank has existed five years, and has not purchased a shilling of real property : and as such property or estates cannot be purchased by the bank but with the interest money which the stock produces, and as that is divided every half year among the stockholders, and each stockholder chooses to have the management of his own dividend, and if he lays it out in purchasing an estate to have that estate his own private property, and under his own immediate management, there is no expectation, so far from being any fear, that the clause will be accepted.

Where knowledge is a duty, ignorance is a crime ; and the committee are criminal in not understanding this subject better. Had this clause not been in the charter, the committee might have reported the want of it as a defect, in not empowering the bank to hold estates as a real security to its creditors : but as the complaint now stands, the accusation of it is, that the charter empowers the bank to give real security to its creditors. A complaint never made, heard of, or thought of before.

The second article in this paragraph is, " that the bank, according to the tenor of the present charter, is to exist for ever." Here I agree with the committee, and am glad to find that among such a list of errors and contradictions there is one idea which is not wrong, although the committee have made a wrong use of it.

As we are not to live for ever ourselves, and other generations are to follow us, we have neither the power nor the right to govern them, or to say how they shall govern themselves. It is the summit of human vanity, and shows a covetousness of power beyond the grave, to be dictating to the world to come. It is sufficient that we do that which is right in our own day, and leave them with the advantage of good examples.

As the generations of the world are every day both commencing and expiring, therefore, when any public act, of this sort, is done, it naturally supposes the age of that generation to be then beginning, and the time contained between coming of age, and the natural end of life, is the extent of time it has a right to go to, which may be about thirty years ; for though many may die before, others will Hve beyond ; and the mean time is equally fair for all generations.

If it was made an article in the constitution, that all laws and acts should cease of themselves in thirty years, and have no legal force beyond that time, it would prevent their becoming too numerous and voluminous, and serve to keep them within view in a compact compass. Such as were proper to be continued, would be enacted again, and those which were not, would go into oblivion. There is the same propriety that a nation should fix a time for a full settlement of its affairs, and begin again from a new date, as that an individual should ; and to keep within the distance of thirty years would be a convenient period.

The British, from the want of some general regulation of this kind, have a great number of obsolete laws ; which, though out of use and forgotten, are not out of force, and are occasionally brought up for particular purposes, and innocent, unwary persons trapanned thereby.

To extend this idea still further, — it would probably be a considerable improvement in the political system of nations, to make all treaties of peace for a limited time. It is the nature of the mind to feel uneasy under the idea of a condition perpetually existing over it, and to excite in itself apprehensions that would not take place were it not from that cause.

Were treaties of peace made for, and renewable every seven or ten years, the natural effect would be, to make peace continue longer than it does under the custom of making peace for ever. If the parties felt, or apprehended, any inconveniences under the terms already made, they would look forward to the time when they should be eventually relieved therefrom, and might renew the treaty on improved conditions. This opportunity periodically occurring, and the recollection of it always existing, would serve as a chimney to the political fabric, to carry off the smoke and fume of national fire. It would naturally abate and honorably take off the edge and occasion for fighting: and however the parties might determine to do it, when the time of the treaty should expire, it would then seem like fighting in cool blood : the fighting temper would be dissipated before the fighting time arrived, and negotiation supply its place. To know how probable this may be, a man need do no more than observe the progress of his own mind on any private circumstance similar in its nature to a public one. But to return to my subject.

To give limitation is to give duration : and though it is not a justifying reason, that because an act or contract is not to last for ever, that it shall be broken or violated to-day, yet, where no time is mentioned, the omission affords an opportunity for the abuse. When we violate a contract on this pretence, we assume a right that belongs to the next generation ; for though they, as a following generation, have the right of altering or setting it aside, as not being concerned in the making it, or not being done in their day, we, who made it, have not that right ; and, therefore, the committee, in this part of their report, have made a wrong use of a right principle ; and as this clause in the charter might have been altered by the consent of the parties, it cannot be produced to justify the violation. And were it not altered there would be no inconvenience from it. The term " for ever " is an absurdity that would have no effect. The next age will think for itself, by the same rule of right that we have done, and not admit any assumed' authority of ours to encroach upon the system of their day. Our for ever ends, where i}a.€\x for fver begins.

The third article in this paragraph is, that the bank holds its charter " without being obliged to yield any emolument to the government." Ingratitude has a short memory. It was on the failure of the government to support the public cause, that the bank originated. It stepped in as a support, when some of the persons then in the government, and who now oppose the bank, were apparently on the point of abandoning the cause, not from disaffection, but from despair. While the expenses of the war were carried on by emissions of continental money, any set of men, in government, might carry it on. The means being provided to their hands, required no great exertions of fortitude or wisdom ; but when this means failed, they would have failed with it, had not a public spirit awakened itself with energy out of doors. It was easy times to the governments while continental money lasted. The dream of wealth supplied the reality of it ; but when the dream vanished, the government did not awake.

But what right has the government to expect any emolument from the bank? Does the committee mean to set up acts and charters for sale, or what do they mean ? Because it is the practice of the British ministry to grind a toll out of every public institution they can get a power over, is the same practice to be followed here ?

The war being now ended, and the bank having rendered the service expected, or rather hoped for, from it, the principal public use of it, at this time, is for the promotion and extension of commerce. The whole community derives benefit from the operation of the bank. It facilitates the commerce of the country. It quickens the means of purchasing and paying for country produce, and hastens on the exportation of it. The emolument, therefore, being to the community, it is the office and duty of government to give protection to the bank.

Among many of the principal conveniences arising from the bank, one of them is, that it gives a kind of life to, what would otherwise be, dead money. Every merchant and person in trade, has always in his hands some quantity of cash, which constantly remains with him ; that is, he is never entirely without : this remnant money, as it may be called, is of no use to him till more is collected to it.— He can neither buy produce nor merchandize with it, and this being the case with every person in trade, there will be (though not all at the same time) as many of those sums lying uselessly by, and scattered throughout the city, as there are persons in trade, besides many that are not in trade.

I should not suppose the estimate overrated, in conjecturing, that half the money in the city, at any one time, lies in this manner. By collecting those scattered sums together, which is done by means of the bank, they become capable of being used, and the quantity of circulating cash is doubled, and by the depositors alternately lending them to each other, the commercial system is invigorated : and as it is the interest of the bank to preserve this money in the country for domestic uses only, and as it has the best opportunity of doing so, the bank serves as a sentinel over the specie.

If a farmer, or a miller, comes to the city with produce, there are but few merchants that can individually purchase it with ready money of their own ; and those few would command nearly the whole market for country produce ; but, by means of the bank, this monopoly is prevented, and the chance of the market enlarged. It is very extraordinary that the late assembly should promote monopolizing; yet such would be the effect of suppressing the bank ; and it is much to the honour of those merchants, who are capable by their fortunes of becoming monopolizers, that they support the bank. In this case, honour operates over interest. They were the persons who first set up the bank, and their honour is now engaged to support what it is their interest to put down.

If merchants, by this means, or farmers, by similar means, among themselves, can mutually aid and support each other, what has the government to do with it ? What right has it to expect emolument from associated industry, more than from individual industry ? It would be a strange sort of government, that should make it illegal for people to assist each other, or pay a tribute for doing so.

But the truth is, that the government has already derived emoluments, and very extraordinary ones. It has already received its full share, by the services of the bank during the war ; and it is every day receiving benefits, because whatever promotes and facilitates commerce, serves likewise to promote and facilitate the revenue.

The last article in this paragraph is, " that the bank is not the least dependant on the government."

Have the committee so soon forgotten the principles of republican government, and the constitution, or are they so little acquainted with them, as not to know, that this article in their report partakes of the nature of treason ? Do they not know, that freedom is destroyed by dependance, and the safety of the state endangered thereby ? Do they not see, that to hold any part of the citizens of the state, as yearly pensioners on the favour of an assembly, is striking at the root of free elections ?

If other parts of their report discover a want of knowledge on the subject of banks, this shows a want of principle in the science of government.

Only let us suppose this dangerous idea carried into practice, and then see what it leads to. If corporate bodies are, after their incorporation, to be annually dependant on an assembly for the continuance of their charter, the citizens which compose those corporations, are not free. The government holds an authority and influence over them, in a manner different from what it does over other citizens, and by this means destroys that equality of freedom, which is the bulwark of the republic and the constitution.

By this scheme of government any party, which happens to be uppermost in a state, will command all the corporations in it, and may create more for the purpose of extending that influence. The dependant borough towns in England are the rotten parts of their government and this idea of the committee has a very near relation to it.

ciples of the committee, I shall pass on to the next paragraph in the report. — Which is —

" That the great profits of the bank, which will daily increase as money grows scarcer, and which already far exceeds the profits of European banks, have tempted foreigners to vest their money in this bank, and thus to draw from us large sums for interest."

Had the committee understood the subject, some dependance might be put on their opinion which now cannot. Whether money will grow scarcer, and whether the profits of the bank will increase, are more than the committee know, or are judges sufficient to guess at. The committee are not so capable of taking care of commerce, as commerce is capable of taking care of itself. The farmer understands farming, and the merchant understands commerce ; and as riches are equally the object of both, there is no occasion that either should fear that the other will seek to be poor. The more money the merchant has, so much the better for the farmer who has produce to sell ; and the richer the farmer is, so much the better for the rrierchant, when he comes to his store.

As to the profits of the bank, the stockholders must take their chance for it. It may some years be more and others less, and upon the whole may mot be so productive as many other ways that money may be employed. It is the convenience which the stockholders, as commercial men, derive from the establishment of the bank, and not the mere interest they receive, that is the inducement to them. It is the ready opportunity of borrowing alternately of each other that forms the principal object: and as they pay as well as receive a great part of the interest among themselves, it is nearly the same thing, both cases considered at once, whether it is more or less.

The stockholders are occasionally depositors and sometimes borrowers of the bank. They pay interest for what they borrow, and receive none for what they deposit ; and were a stockholder to keep a nice account of the interest he pays for the one and loses on the other, he would find, at the year's end, that ten per cent, on his stock would probably not be more than common interest on the whole, if so much.

As to the committee complaining "that foreigners by vesting their money in the bank will draw large sums from us for interest," it is like a miller complaining, in a dry season, that so much water runs into his dam some of it runs over.

Could those foreigners draw this interest without putting in any capital, the complaint would be well founded ; but as they must first put money in before they can draw any out, as they must draw many years before they can draw even the numerical sum they put in at first, the effect for at least twenty years to come, will be directly contrary to what the committee states ; because we draw capital from them and they only interest from us, and as we shall have the use of the money all the while it remains with us, the advantage will always be in our favour. — In framing this part of the report, the committee must have forgotten which side of the Atlantic they were on, for the case would be as they state it if we put money into their bank instead of their putting it into ours.

I have now gone through, line by line, every objection against the bank, contained in the first half of the report ; what follows may be called. The lamentations of the committee, and a lamentable, pusillanimous, degrading thing it is.— It is a public affront, a reflection upon the sense and spirit of the whole country. I shall give the remainder together, as it stands in the report, and then my remarks. The lamentations are :

" That foreigners will doubtless be more and more induced to become stock holders, until the time may arrive when this enormous engine of power may become subject to foreign influence, this country may be agitated by the politics of European courts, and the good people of America reduced once more into a state of subordination and dependance upon some one or other of the European powers. That at best, if it were even confined to the hands of Americans, it would be totally destructive of that equality which ought to prevail in a republic. We have nothing in our free and equal government capable of balancing the influence which this bank must create ; and we see nothing which in the course of a few years can prevent the directors of the bank from governing Pennsylvania. Already we have felt its influence indir'ectly interfering in the measures of the legislature. Already the house of asembly, the representatives of the people, have been threatened, that the credit of our paper currency will be blasted by the bank ; and if this growing evil continues, we fear the time is not very distant when the bank will be able to dictate to the legislature, what laws to pass and what to forbear."

When the sky falls we shall all be killed. There is something so ridiculously grave, so wide of probability, and so wild, confused and inconsistent in the whole composition of this long paragraph, that I am at a loss how to begin upon it. — It is like a drowning man crying fire ! fire !

This part of the report is made up of two dreadful predictions. The first is, that if foreigners purchase bank stock, we shall be all ruined ; — the second is, that if the Americans keep the bank to themselves, we shall be also ruined.

A committee of fortune-tellers is a novelty in government, and the gentlemen, by giving this specimen of their art, have ingeniously saved their honour on one point, which is, that though the people may say they are not bankers, nobody can say they are not conjurors. — There is, however, one consolation left, which is, that the committee do not \i'!\ow exactly how long it may be ; so there is some hope that we may all be in heaven when this dreadful calamity happens upon earth.

But to be serious, if any seriousness is necessary on so laughable a subject. — If the state should think there is any thing improper in foreigners purchasing bank stock, or any other kind of stock or funded property (for I see no reason why bank stock should be particularly pointed at) the legislature have authority to prohibit it. It is a mere political opinion that has nothing to do with the charter, or the charter with that ; and therefore the first dreadful prediction vanishes.

It has always been a maxim in politics, founded on, and drav/n from, natural causes and consequences, that the more foreign countries which any nation can interest in the prosperity of its own, so much the better. Where the treasure is, there will the heart be also ; and therefore when foreigners vest their money with us, they naturally invest their good wishes with it ; and it is we that obtain an influence over them, not they over us. — But the committee set out so very wrong at first, that the further they travelled, the more they were out of their way ; and now they have got to the end of their report, they are at the utmost distance from their business.

As to the second dreadful part, that of the bank overturning the government, perhaps the committee meant that at the next general election themselves might be turned out of it, which has partly been the case ; not by the influence of the bank, for it had none, not even enough to obtain the permission of a hearing from government, but by the influence of reason and the choice of the people, who most probably resent the undue and unconstitutional influence which that house and committee were assuming over the privileges of citizenship.

The committee might have been so modest as to have confined themselves to the bank, and not thrown a general odium on the whole country. Before the events can happen which the committee predict, the electors of Pennsylvania must become dupes, dunces, and cowards, and, therefore, when the committee predict the dominion of the bank they predict the disgrace of the people.

The committee having finished their report, proceed to give their advice, which is,

" That a committee be appointed to bring in a bill to repeal the act of assembly passed the first day of April, 1782, entitled, 'An act to incorporate the subscribers to the bank of North-America,' and also to repeal one other act of the assembly passed the i8th of March, 1782, entitled, 'An act for preventing and punishing the counterfeiting of the common seal, bank-bills and bank notes of the president, directors and company of the bank of North-America, and for other purposes therein mentioned.' "

There is something in this sequel to the report that is perplexed and obscure.

Here are two acts to be repealed. One is, the incorporating act. The other, the act for preventing and punishing the counterfeiting of the common seal, bank bills, and bank notes of the president, directors and company of the bank of North-America.

It would appear from the committee's manner of arranging them (were it not for the difference of their dates) that the act for punishing the counterfeiting the common seal, etc. of the bank, followed the act of incorporation, and that the common seal there referred to is a common seal which the bank held in consequence of the aforesaid incorporating act. — But the case is quite otherwise. The act for punishing the counterfeiting the common seal, etc. of the bank, was passed prior to the incorporating act, and refers to the common seal which the bank held in consequence of the charter of congress, and the style which the act expresses, of president, directors and company of the bank of North-America, is the corporate style which the bank derives under the congress charter.

The punishing act, therefore, hath two distinct legal points. The one is, an authoritative public recognition of the charter of congress. The second is, the punishment it inflicts on counterfeiting.

The legislature may repeal the punishing part, but it cannot undo the recognition, because no repealing act can say that the state has not recognized. The recognition is a mere matter of fact, and no law or act can undo a fact, or put it, if I may so express it, in the condition it was before it existed. The repealing act therefore does not reach the full point the committee had in view ; for even admitting it to be a repeal of the state charter, it still leaves another charter recognized in its stead. — The charter of congress, standing merely on itself, would have a doubtful authority, but recognition of it by the state gives it legal ability. The repealing act, it is true sets aside the punishment, but does not bar the operation of the charter of congress as a charter recognized by the state, and therefore the committee did their business but by halves.

I have now gone entirely through the report of the committee, and a more irrational, inconsistent, contradictoryreport will scarcely befoundon the journals of any legislature of America.

How the repealing act is to be applied, or in what manner it is to operate, is a matter yet to be determined. For admitting a question of law to arise, whether the charter, which that act attempts to repeal, is a law of the land in the manner which laws of universal operation are, or of the nature of a contract made between the public and the bank, (as I have already explained in this work,) the repealing act does not and cannot decide the question, because it is the repealing act that makes the question, and its own fate is involved in the decision. It is a question of law and not a question of legislation, and must be decided on in a court of justice and not by a house of assembly.

But the repealing act, by being passed prior to the decision of this point, assumes the power of deciding it, and the assembly in so doing erects itself unconstitutionally into a tribunal of judicature, and absorbs the authority and right of the courts of justice into itself.

Therefore the operation of the repealing act, in its very outset, requires injustice to be done. For it is impossible on the principles of a repubHcan government and the constitution, to pass an act to forbid any of the citizens the right of appealing to the courts of justice on any matter in which his interest or property is affected ; but the first operation of this act goes to shut up the courts of justice and holds them subservient to the assembly. It either commands or influences them not to hear the case, or to give judgment on it on the mere will of one party only.

I wish the citizens to awaken themselves on this subject. Not because the bank is concerned, but because their own constitutional rights and privileges are involved in the event. It is a question of exceeding great magnitude ; for if an assembly is to have this power, the laws of the land and the courts of justice are but of little use. \ Having now finished with the report, I proceed to the third and last subject — that of paper money.

I remember a German farmer expressing as much in a few words as the whole subject requires ; " money is money, and paper is paper." — All the invention of man cannot make them otherwise. The alchymist may cease his labours, and the hunter after the philosopher's stone go to rest, if paper can be metamorphosed into gold and silver, or made to answer the same purpose in all cases.

Gold and silver are the emissions of nature: paper is the emission of art. The value of gold and silver is ascertained by the quantity which nature has made in the earth. We cannot make that quantity more or less than it is, and therefore the value being dependant upon the quantity, depends not on man. — Man has no share in making gold or silver ; all that his labours and ingenuity can accomplish is, to collect it from the mine, refine it for use and give it an impression, or stamp it into coin.

Its being stamped into coin adds considerably to its convenience but nothing to its value. It has then no more value than it had before. Its value is not in the impression but in itself. Take away the impression and still the same value remains. Alter it as you will, or expose it to any misfortune that can happen, still the value is not diminished. It has a capacity to resist the accidents that destroy other things. It has, therefore, all the requisite qualities that money can have, and is a fit material to make money of ; and nothing which has not all those properties, can be fit for the purpose of money.

Paper, considered as a material whereof to make money, has none of the requisite qualities in it. It is too plentiful, and too easily come at. It can be had any where, and for a trifle.

There are two ways in which I shall consider paper.

The only proper use for paper, in the room of money, is to write promissory notes and obligations of payment in specie upon. A piece of paper, thus written and signed, is worth the sum it is given for, if the person who gives it is

1786] DISSERTATIONS ON GOVERNMENT, ETC. lyj able to pay it ; because in this case, the law will oblige him. But if he is worth nothing, the paper note is worth nothing. The value, therefore, of such a note, is not in the note itself, for that is but paper and promise, but in the man who is obliged to redeem it with gold or silver.

Paper, circulating in this manner, and for this purpose, continually points to the place and person where, and of whom, the money is to be had, and at last finds its home; and, as it were, unlocks its master's chest and pays the bearer.

But when an assembly undertake to issue paper as money, the whole system of safety and certainty is overturned, and property set afloat. Paper notes given and taken between individuals as a promise of payment is one thing, but paper issued by an assembly as money is another thing. It is like putting an apparition in the place of a man ; it vanishes with looking at it, and nothing remains but the air.

Money, when considered as the fruit of many years industry, as the reward of labour, sweat and toil, as the widow's dowry and children's portion, and as the means of procuring the necessaries and alleviating the afflictions of life, and making old age a scene of rest, has something in it sacred that is not to be sported with, or trusted to the airy bubble of paper currency.

By what power or authority an assembly undertakes to make paper money, is difficult to say. It derives none from the constitution, for that is silent on the subject. It is one of those things which the people have not delegated, and which, were they at any time assembled together, they would not delegate. It is, therefore, an assumption of power which an assembly is not warranted in, and which may, one day or other, be the means of bringing some of them to punishment.

I shall enumerate some of the evils of paper money and conclude with offering means for preventing them.

party, and as it is the interest of some to depreciate and of others to raise its value, there is a continual invention going on that destroys the morals of the country.

It was horrid to see, and hurtful to recollect, how loose the principles of justice were left, by means of the paper emissions during the war. The experience then had, should be a warning to any assembly how they venture to open such a dangerous door again.

As to the romantic, if not hypocritical, tale that a virtuous people need no gold and silver, and that paper will do as well, it requires no other contradiction than the experience we have seen. Though some well meaning people may be inclined to view it in this light, it is certain that the sharper always talks this language.

There are a set of men who go about making purchases upon credit, and buying estates they have not wherewithal to pay for ; and having done this, their next step is to fill the newspapers with paragraphs of the scarcity of money and the necessity of a paper emission, then to have a legal tender under the pretence of supporting its credit, and when out, to depreciate it as fast as they can, get a deal of it for a little price, and cheat their creditors ; and this is the concise history of paper money schemes.

But why, since the universal custom of the world has established money as the most convenient medium of traffic and commerce, should paper be set up in preference to gold and silver? The productions of nature are surely as innocent as those of art ; and in the case of money, are abundantly, if not infinitely, more so. The love of gold and silver may produce covetousness, but covetousness, when not connected with dishonesty, is not properly a vice. It is frugality run to an extreme.

But the evils of paper money have no end. Its uncertain and fluctuating value is continually awakening or creating new sehemes of deceit. Every principle of justice is put to the rack, and the bond of society dissolved : the suppression, therefore, of paper money might very properly have been put into the act for preventing vice and immorality. The pretence for paper money has been, that there was not a sufficiency of gold and silver. This, so far from being a reason for paper emissions, is a reason against them.

As gold and silver are not the productions of North America, they are, therefore, articles of importation ; and if we set up a paper manufactory of money, it amounts, as far as it is able, to prevent the importation of hard money, or to send it out again as fast as it comes in ; and by following this practice we shall continually banish the specie, till we have none left, and be continually complaining of the grievance instead of remedying the cause.

Considering gold and silver as articles of importation, there will in time, unless we prevent it by paper emissions, be as much in the country as the occasions of it require, for the same reasons there are as much of other imported articles. But as every yard of cloth manufactured in the country occasions a yard the less to be imported, so it is by money, with this difference, that in the one case we manufacture the thing itself and in the other we do not. We have cloth for cloth, but we have only paper dollars for silver ones.

As to the assumed authority of any assembly in making paper money, or paper of any kind, a legal tender, or in other language, a compulsive payment, it is a most presumptuous attempt at arbitrary power. There can be no such power in a republican government : the people have no freedom, and property no security where thig^pfaetiee can be acted : and the committee who shal4"bring in a report for this purpose, or the member whcTmoves for it, and he who seconds it merit impeachment, and sooner or later may expect it. '

Of all the various sorts of base coin, paper money is the basest. It has the least intrinsic value of any thing that can be put in the place of gold and silver. A hobnail or a piece of wampum far exceeds it. And there would be more propriety in making those articles a legal tender than to make paper so.

It was the issuing base coin, and establishing it as a tender, that was one of the principal means of finally over- throwing the power of the Stuart family in Ireland. The article is worth reciting as it bears such a resemblance to the process practised in paper money.

" Brass and copper of the basest kind, old cannon, broken bells, household utensils were assiduously collected ; and from every pound weight of such vile materials, valued at four-pence, pieces were coined and circulated to the amount of five pounds normal value. By the first proclamation they were made current in all payments to and from the king and the subjects of the realm, except in duties on the importation of foreign goods, money left in trust, or due by mortgage, bills or bonds ; and James promised that when the money should be decried, he would receive it in all payments, or make full satisfaction in gold and silver. The nominal value was afterwards raised by subsequent proclamations, the original restrictions removed, and this base money was ordered to be received in all kinds of payments. As brass and copper grew scarce, it was made of still viler materials, of tin and pewter, and old debts of one thousand pounds were discharged by pieces of vile metal amounting to thirty shillings in intrinsic value." *

Had king James thought of paper, he needed not to have been at the trouble or expense of collecting brass and copper, broken bells, and household utensils.

The laws of a country ought to be the standard of equity, and calculated to impress on the minds of the people the moral as well as the legal obligations of reciprocal justice. But tender laws, of any kind, operate to destroy morality, and to dissolve, by the pretence of law, what ought to be the principle of law to support, reciprocal justice between man and man : and the punishment of a member who should move for such a law ought to be deaths

When the recommendation of congress, in the year 1780, for repealing the tender laws was before the assembly of Pennsylvania, on casting up the votes, for and against bringing in a bill to repeal those laws, the numbers were equal, Leland's History of Ireland, vol. iv. p. lii^.— Author .

' It is a curious indication of the tension caused by the bank controversy that a man of Quaker training could make such a statement as the above. A few years later Paine is found advocating abolition of the death-penalty, even fcr treason against the state, for which some would reserve it. — Editor. and the casting vote rested on the speaker, colonel Bayard. " I give my vote," said he, " for the repeal, from a consciousness of justice ; the tender laws operate to establish iniquity by law." But when the bill was brought in, the house rejected it, and the tender laws continued to be the means of fraud.

If any thing had, or could have, a value equal to gold and silver, it would require no tender law : and if it had not that value it ought not to have such a law; and, therefore, all tender laws are tyrannical and unjust, and calculated to support fraud and oppression.

Most of the advocates for tender laws are those who have debts to discharge, and who take refuge in such a law, to violate their contracts and cheat their creditors. But as no law can warrant the doing an unlawful act, therefore the proper mode of proceeding, should any such laws be enacted in future, will be to impeach and execute the members who moved for and seconded such a bill, and put the debtor and the creditor in the same situation they were in, with respect to each other, before such a law was passed. Men ought to be made to tremble at the idea of such a barefaced act of injustice. It is in vain to talk of restoring credit, or complain that money cannot be borrowed at legal interest, until every idea of tender laws is totally and publicly reprobated and extirpated from among us.

As to paper money, in any light it can be viewed, it is at best a bubble. Considered as property, it is inconsistent to suppose that the breath of an. assembly, whose authority expires with the year, can give to paper the value and duration of gold. They cannot even engage that the next assembly shall receive it in taxes. And by the precedent, (for authority there is none,) that one assembly makes paper money, another may do the same, until confidence and credit are totally expelled, and all the evils of depreciation acted over again. The amount, therefore, of paper money is this, that it is the illegitimate offspring of assemblies, and when their year expires, they leave a vagrant on the hands of the public.

Having now gone through the three subjects proposed in the title to this work, I shall conclude with offering some thoughts on the present affairs of the state.

My idea of a single legislature was always founded on a hope, that whatever personal parties there might be in the state, they would all unite and agree in the general principles of good government — that these party differences would be dropped at the threshold of the statehouse, and that the public good, or the good of the whole, would be the governing principle of the legislature within it.

Party dispute, taken on this ground, would only be, who should have the honour of making the laws ; not what the laws should be. But when party operates to produce party laws, a single house is a single person, and subject to the haste, rashness and passion of individual sovereignty. At least, it is an aristocracy.

The form of the present constitution is now made to trample on its principles, and the constitutional members are anti-constitutional legislators. They are fond of supporting the form for the sake of the power, and they dethrone the principle to display the sceptre.

The attack of the late assembly on the bank, discovers such a want of moderation and prudence, of impartiality and equity, of fair and candid inquiry and investigation, of deliberate and unbiassed judgment, and such a rashness of thinking and vengeance of power, as is inconsistent with the safety of the republic. It was judging without hearing, and executing without trial.

By such rash, injudicious and violent proceedings, the interest of the state is weakened, its prosperity diminished, and its commerce and its specie banished to other places. Suppose the bank had not been in an immediate condition to have stood such a sudden attack, what a scene of instant distress would the rashness of that assembly have brought upon this city and state. The holders of bank notes, whoever they might be, would have been thrown into the utmost confusion and difficulties. It is no apology to say the house never thought of this, for it was their duty to have thought of every thing. But by the prudent and provident management of the bank, (though unsuspicious of the attack,) it was enabled to stand the run upon it without stopping payment a moment, and to prevent the evils and mischiefs taking place which the rashness of the assembly had a direct tendency to bring on ; a trial that scarcely a bank in Europe, under a similar circumstance, could have withstood.

I cannot see reason sufficient to believe that the hope of the house to put down the bank was placed on the withdrawing the charter, so much as on the expectation of producing a bankruptcy of the bank, by starting a run upon it. If this was any part of their project it was a very wicked one, because hundreds might have been ruined to gratify a party spleen.

But this not being the case, what has the attack amounted to, but to expose the weakness and rashness, the want of judgment as well as justice, of those who made it, and to confirm the credit of the bank more substantially than it was before ?

The attack, it is true, has had one effect, which is not in the power of the assembly to remedy ; it has banished many thousand hard dollars from the state. By the means of the bank, Pennsylvania had the use of a great deal of hard money belonging to citizens of other states, and that without any interest, for it laid here in the nature of deposit, the depositors taking bank notes in its stead. But the alarm called those notes in and the owners drew out their cash.

The banishing the specie served to make room for the paper money of the assembly, and we have now paper dollars where we might have had silver ones. So that the effect of the paper money has been to make less money in the state than there was before.' Paper money is like dramdrinking, it relieves for a moment by deceitful sensation, but gradually diminishes the natural heat, and leaves the body

' The reader may be reminded of the humorous scene in Goethe's " Faust,'' Part Second, where Mephistopheles fills the empty Treasury by simple expedient of a printing-press, and the Court fool shows his sagacity by hastening to spend all the paper money he possesses. — Editor. worse than it found it. Were not this the case, and could money be made of paper at pleasure, every sovereign in Europe would be as rich as he pleased. But the truth is, that it is a bubble and the attempt vanity. Nature has provided the proper materials for money, gold and silver, and any attempt of ours to rival her is ridiculous.

But to conclude. If the public will permit the opinion of a friend who is attached to no party, and under obligation to none, nor at variance with any, an d who through a long habit of acquaintance with them has never deceived them, that opinion shall be freely given.

The bank is an institution capable of being made exceedingly beneficial to the state, not only as the means of extending and facilitating its commerce, but as a means of increasing the quantity of hard money in the state. The assembly's paper money serves directly to banish or crowd out the hard, because it is issued as money and put in the place of hard money. But bank notes are of a very different kind, and produce a contrary effect. They are promissory notes payable on demand, and may be taken to the bank and exchanged for gold or silver without the least ceremony or difficulty.

The bank, therefore, is obliged to keep a constant stock of hard money sufficient for this purpose ; which is what the assembly neither does, nor can do by their paper ; because the quantity of hard money collected by taxes into the treasury is trifling compared with the quantity that circulates in trade and through the bank.

The method, therefore, to increase the quantity of hard money would be to combine the security of the government and the bank into one. And instead of issuing paper money that serves to banish the specie, to borrow the sum wanted of the bank in bank notes, on the condition of the bank exchanging those notes at stated periods and quantities, with hard money.

Paper issued in this manner, and directed to this end, would, instead of banishing, work itself into gold and silver ; because it will then be both the advantage and duty of the bank. and of all the mercantile interests connected with it, to procure and import gold and silver from any part of the world, to give in exchange for the notes. The English bank is restricted to the dealing in no other articles of importation than gold and silver, and we may make the same use of our bank if we proceed properly with it.

Those notes will then have a double security, that of the government and that of the bank : and they will not be issued as money, but as hostages to be exchanged for hard money, and will, therefore, work the contrary way to what the paper of the assembly, uncombined with the security of the bank, produces : and the interest allowed the bank will be saved to government, by a saving of the expenses and charges attending paper emissions.

It is, as I have already observed in the course of this work, the harmony of all the parts of a republic, that constitutes their several and mutual good. A government that is constructed only to govern, is not a republican government. It is combining authority with usefulness, that in a great' measure distinguishes the republican system from others.

Paper money appears, at first sight, to be a great saving, or rather that it costs nothing ; but it is the dearest money there is. The ease with which it is emitted by an assembly at first, serves as a trap to catch people in at last. It operates as an anticipation of the next year's taxes. If the money depreciates, after it is out, it then, as I have already remarked, has the effect of fluctuating stock, and the people become stock-jobbers to throw the loss on each other. If it does not depreciate, it is then to be sunk by taxes at the price of hard money ; because the same quantity of produce, or goods, that would procure a paper dollar to pay taxes with, would procure a silver one for the same purpose. Therefore, in any case of paper money, it is dearer to the country than hard money, by all the expense which the paper, printing, signing, and other attendant charges come to, and at last goes into the fire.

Suppose one hundred thousand dollars in paper money to be emitted every year by the assembly, and the same sum to be sunk every year by taxes, there will then be no more than one hundred thousand dollars out at any one time. If the expense of paper and printing, and of persons to attend the press while the sheets are striking off, signers, etc. be five per cent, it is evident that in the course of twenty years' emissions, the one hundred thousand dollars will cost the country two hundred thousand dollars. Because the papermaker's and printer's bills, and the expense of supervisors and signers, and other attendant charges, will in that time amount to as much as the money amounts to ; for the successive emissions are but a re-coinage of the same sum.

But gold and silver require to be coined but once, and will last an hundred years, better than paper will one year, and at the end of that time be still gold and silver. Therefore, the saving to government, in combining its aid and security with that of the bank in procuring hard money, will be an advantage to both, and to the whole community.

The case to be provided against, after this, will be, that the government do not borrow too much of the bank, nor the bank lend more notes than it can redeem ; and, therefore, should any thing of this kind be undertaken, the best way will be to begin with a moderate sum, and observe the effect of it. The interest given the bank operates as a bounty on the importation of hard money, and which may not be more than the money expended in making paper emissions.

But nothing of this kind, nor any other public undertaking, that requires security and duration beyond the year, can be gone upon under the present mode of conducting government. The late assembly, by assuming a sovereign power over every act and matter done by the state in former assemblies, and thereby setting up a precedent of overhauling, and overturning, as the accident of elections shall happen or party prevail, have rendered government incompetent to all the great objects of the state. They have eventually reduced the public to an annual body like themselves ; whereas the public are a standing, permanent body, holding annual elections.

There are several great improvements and undertakings. such as inland navigation, building bridges, opening roads of communication through the state, and other matters of a public benefit, that might be gone upon, but which now cannot, until this governmental error or defect is remedied. The faith of government, under the present mode of conducting it, cannot be relied on. Individuals will not venture their money in undertakings of this kind, on an act that may be made by one assembly and broken by another. When a man can say that he cannot trust the government, the importance and dignity of the public is diminished, sapped and undermined ; and, therefore, it becomes the public to restore their own honour by setting these matters to rights.

Perhaps this cannot be effectually done until the time of the next convention, when the principles, on which they are to be regulated and fixed, may be made a part of the constitution.

In the mean time the public may keep their affairs in sufficient good order, by substituting prudence in the place of authority, and electing men into the government, who will at once throw aside the narrow prejudices of party, and make the good of the whole the ruling object of their conduct. And with this hope, and a sincere wish for their prosperity, I close my book.'
VII. THE SOCIETY FOR POLITICAL INQUIRIES.*

The moral character and happiness of mankind are so interwoven with the operations of government, and the progress of the arts and sciences is so dependent on the nature of our political institutions, that it is essential to the advancement of civilized society to give ample discussion to these topics.

But important as these inquiries are to all, to the inhabitants of these republics they are objects of peculiar magnitude and necessity. Accustomed to look up to those nations, from whom we have derived our origin, for our laws, our opinions, and our manners, we have retained with undistinguishing reverence their errors with their improvements ; have blended with our public institutions the policy of dissimilar countries; and have grafted on an infant commonwealth the manners of ancient and corrupted monarchies. In having effected a separate government, we have as yet effected but a partial independance. The revolution can only be said to be complete, when we shall have freed ourselves, no less from the influence of foreign prejudices than from the fetters of foreign power. When breaking through the bounds, in which a dependent people have been accustomed to think and act, we shall probably comprehend the character
l88 we have assumed and adopt those maxims of policy, which are suited to our new situation. While objects of subordinate importance have employed the associated labours of learned and ingenious men, the arduous and complicated science of government has been generally left to the care of practical politicians, or the speculations of individual theorists. From a desire of supplying this deficiency, and of promoting the welfare of our country, it is now proposed to establish a society for mutual improvement in the knowledge of government, and for the advancement of political science.

With these views, the subscribers associate themselves under the title of The SOCIETY FOR POLITICAL INQUIRIES, and under the following laws and regulations.

Laws and Regulations

I. This Society shall consist of fifty residing members, and shall meet every Friday fortnight, at half past six o'clock in the evening (the chair to be taken precisely at seven) except during the months of June, July, August and September, when their meetings shall be discontinued.

II. There shall be a president, two vice-presidents, a treasurer, and two secretaries, who shall be elected annually by ballot on the second Friday in February.

III. Persons residing at a distance shall be eligible into the Society as honorary members, but shall not be entitled to the privilege of electing.

IV. Every candidate for admission shall be proposed by at least two residing members, who shall give in his name in writing with their own subscribed to it. After which one of the acting secretaries shall read aloud the name of the candidate as well as of the nominating members, at two successive meetings previous to the election.

V. Every election shall be conducted by ballot, twelve members at least being present ; and the votes of three-fourths of thenumber present, shall be necessary to the admission of the candidate.

VI. Each residing member shall pay twenty shillings on his admission, as well as fifteen shillings annually, towards the expences of the Society.

ballot, on the same evening that the officers of the Society are elected. This committee shall consist of the president, vice-presidents, and six other members of the Society, and shall decide on the propriety of reading or publishing any paper which shall be presented to the Society. But they shall not proceed to any decision unless five of their number are present. Nor shall any essay, or the name of its author be published, without previously obtaining his consent.

VIII. The attention of the Society shall be confined to subjects of government and political oeconomy. And members having any essays, facts, or observations on these subjects, that they wish to have read in the Society, or any political queries that they may be desirous of having discussed in conversation, shall give the same into the hands of the president or vice-president who shall communicate the same to the Committee of papers and take order thereon.

IX. The president or vice-president shall announce to the Society, what papers are to be read, and what subjects to be discussed at their next meeting.

X. A fair record shall be kept of the proceedings of the Society, which shall be open to the inspection of the members.

XI. Medals shall be adjudged at the discretion of the Society to the authors (whether members or not) of the best essays upon such subjects as the Society may propose for that purpose. The votes in these cases shall be taken by ballot.

XII. If any person to whom a medal shall be adjudged, should not be a member of the Society, he shall be included in the list of honorary members.

XIII. The president or vice-president shall have power to call at any time a special meeting of the Society.

XIV. The Society shall be subject to such laws and regulations as shall be made from time to time. But no laws shall be enacted, rescinded or altered without the presence of twelve members, and without the consent of three-fourths of the number present : Nor shall any such measures be proposed, without notice has been previously given at two successive meetings of the alterations or additions intended to be made.

XV. There shall be a penalty of one shilling paid by every member not attending at any meeting, either \tated or special, provided he be not out of town or confined by sifi^kness.

Viii

PROSPECTS ON THE RUBICON:

OR AN INVESTIGATION INTO THE CAUSES AND CONSE-QUENCES OF THE POLITICS TO BE AGITATED AT THE NEXT MEETING OF PARLIAMENT.'

Preface

An expression in the British parliament respecting the American war, alluding to Julius Caesar having passed the Rubicon, has on several occasions introduced that river as the figurative river of war.

Fortunately for England, she is yet on the peaceable side of the Rubicon ; but as the flames once kindled are not always easily extinguished, the hopes of peace are not so clear as before the late mysterious dispute began.

But while the calm lasts, it may answer a very good purpose to take a view of the prospects, consistent with the maxim, that he that goeth to war should first sit down and count the cost.

The nation has a young and ambitious Minister at its head, fond of himself, and deficient in experience : and instances have often shown that judgment is a different thing from
191 genius, and that the affairs of a nation are but unsafely trusted where the benefit of experience is wanting.

Illustrations have been drawn from the circumstances of the war before last to decorate the character of the present Minister, and, perhaps, they may have been greatly overdrawn ; for the management must have been bad to have done less than what was then done, when we impartially consider the means, the force, and the money employed.

It was then Great Britain and America against France singly, for Spain did not join till near the end of the war. The great number of troops which the American colonies then raised and paid themselves, were sufficient to turn the scale, if all other parts had been equal. France had not at that time attended to naval affairs so much as she has done since ; and the capture of French sailors before any declaration of war was made, which, however it may be justified upon policy, will always be ranked among the clandestine arts of war, assured a certain, but unfair advantage against her, because it was like a man administering a disabling dose over night to the person whom he intends to challenge in the morning.

The Author.

publisher's note to the ENGLISH EDITION OF 1793.

This pamphlet was written by Mr. Paine in the year 1787, on one of Mr. Pitt's armaments, namely, that against Holland. His object was to prevent the people of England from being seduced into a war, by stating clearly to them the consequences which would inevitably befall the credit of this country should such a calamity take place. The minister has at length, however, succeeded in his great project, after three expensive armaments in the space of seven years ; and the event has proved how well founded were the predictions of Mr. Paine. The person who has the authority to bring forward this pamphlet in its present shape, thinks his doing so a duty which he owes both to Mr. P and the people of England, in order that the latter may judge what credit is due to (what a great judge calls) the wild theories of Mr. Paine.

Prospects on the Rubicon

Right by chance and wrong by system are things so frequently seen in the political world, that it becomes a proof of prudence neither to censure nor applaud too soon.

" The Rubicon is passed," was once given as a reason for prosecuting the most expensive war that England ever knew. Sore with the event, and groaning beneath a galling yoke of taxes, she has again been led ministerially on to the shore of the same delusive and fatal river, without being permitted to know the object or the reason why.

Expensive preparations have been gone into ; fears, alarms, dangers, apprehensions, have been mistically held forth, as if the existence of the nation was at stake, and at last the mountain has brought forth a Dutch mouse.

Whoever will candidly review the present national characters of England and France, cannot but be struck with surprize at the change that is taking place. The people of France are beginning to think for themselves, and the people of England are resigning up the privilege of thinking.

The affairs of Holland have been the bubble of the day ; and a tax is to be laid on shoes and boots (so say the newspapers) for the service of the Stadtholder of Holland. This will undoubtedly do honour to the nation, by veryfying the old English proverb, " Over shoes, over boots."

But tho' Democritus could scarcely have forborne laughing at the folly, yet, as serious argument and sound reasoning are preferable to ridicule, it will be best to quit the vein of unprofitable humour, and give the cause a fair investigation. But before we do this, it may not be improper to take a general review of sundry political matters that will naturally lead to a better understanding of the subject.

193 What has been the event of all the wars of England, but an amazing accumulation of debt, and an unparalleled burden of taxes ? Sometimes the pretence has been to support one outlandish cause, and sometimes another. At one time Austria, at another time Prussia, another to oppose Russia, and so on ; but the consequence has always been TAXES. A few men have enriched themselves by jobs and contracts, and the groaning multitude bore the burthen. What has England gained by war since the year 1738, only fifty years ago, to recompence her for TWO HUNDRED millions ster-Hng, incurred as a debt within that time, and under the annual interest of which, besides what was incurred before, she is now groaning ? Nothing at all.

The glare of fancied glory has often been held up, and the shadowy recompence imposed itself upon the senses. Wars that might have been prevented have been madly gone into, and the end has been debt and discontent. A sort of something which man cannot account for is mixed in his composition, and renders him the subject of deception by the very means he takes not to be deceived.

That jealousy which individuals of every nation feel at the supposed design of foreign powers, fits them to be the prey of Ministers, and of those among themselves whose trade is war, or whose livehhood is jobs and contracts. " Confusion to the politics of Europe, and may every nation be at war in six months," was a toast given in my hearing not long since. — The man was in court to the Ministry for a job. — Ye gentle Graces, if any such there be who preside over human actions, how must ye weep at the viciousness of man !

When we consider, for the feelings of Nature cannot be dismissed, the calamities of war and the miseries it inflicts upon the human species, the thousands and tens of thousands of every age and sex who are rendered wretched by the event, surely there is something in the heart of man that calls upon him to think ! Surely there is some tender chord tuned by the hand of its Creator, that struggles to emit in the hearing of the soul a note of sorrowing sympathy. Let it then be heard, and let man learn to feel, that the true greatness of a nation is founded on the principles of humanity ; and that to avoid a war when our own existence is not endangered, and wherein the happiness of man must be wantonly sacrificed, is a higher principle of true honour than madly to engage in it.

But independent of all civil and moral considerations, there is no possible event that a war could produce benefits to England or France, on the present occasion, that could in the most distant proportion recompence to either the expence she must be at. War involves in its progress such a train of unforeseen and unsupposed circumstances, such a combination of foreign matters, that no human wisdom can calculate the end. It has but one thing certain, and that is increase of TAXES. The policy of European courts is now so cast, and their interests so interwoven with each other, that however easy it may be to begin a war, the weight and influence of interfering nations compel even the conqueror to unprofitable conditions of peace.

Commerce and maritime strength are now becoming the fashion, or rather the rage of Europe, and this naturally excites in them a combined wish to prevent either England or France increasing its comparative strength by destroying, or even relatively weakening, the other, and therefore whatever views each may have at the commencement of a war, new enemies will arise as either gains the advantage, and continued obstacles ensue to embarrass success.

The greatness of Lewis the Fourteenth made Europe his enemy, and the same cause will produce the same consequence to any other European power. That nation, therefore, is only truly wise, who, contenting herself with the means of defence, creates to herself no unnecessary enemies by seeking to be greater than the system of Europe admits. The Monarch or the Minister who exceeds this line,* knows but little of his business. It is what the poet on another occasion calls —

" The point where sense and nonsense join.'' Perhaps there is not a greater instance of the folly of calculating upon events, than are to be found in the treaties of alliance. As soon as they have answered the immediate purpose of either of the parties they are but little regarded. Pretences afterwards are never wanting to explain them away, nor reasons to render them abortive. And if half the money which nations lavish on speculative alliances were reserved for their own immediate purpose, whenever the occasion shall arrive, it would be more productively and advantageously employed.

Monarchs and Ministers, from ambition or resentment, often contemplate to themselves schemes of future greatness, and set out with what appears to them the fairest prospect : In the meanwhile, the great wheel of time and fate revolves unobserved, and something never dreamed of turns up and blasts the whole. A few fancied or unprofitable laurels supply the absence of success, and the exhausted nation is huzza'd into new taxes.

The politics and interests of European Courts are so frequently varying with regard to each other, that there is no fixing even the probability of their future conduct. But the great principle of alliancing seems to be but little understood, or little cultivated in Courts, perhaps the least of all, in that of England. — No alliance can be operative that does not embrace within itself, not only the attachment of the Sovereigns, but the real interest of the nations.

The alliance between France and Spain, however it may be spoken of as a mere family compact, derives its greatest strength from national interest. The mines of Peru and Mexico are the soul of this alliance. Were those mines extinct, the family compact would most probably dissolve.

There exists not a doubt in the mind of Spain, what part England would act, respecting those mines, could she demolish the maritime power of France; and therefore the interest of Spain feels itself continually united with France. Spain has high ideas of honour, but has not the same ideas of English honour. They consider England as wholly governed by principles of interest, and that whatever she thinks it her interest to do, and supposes she has the power of doing, she makes very Httle ceremony of attempting. But this is not all — There is not a nation in Europe but what is more satisfied that those mines should be in the possession of Spain, than in that of any other European nation ; because the wealth of those mines, sufficient to ruin Europe in the hands of some of its powers, is innocently employed with respect to Europe, and better and more peaceably distributed among them all, through the medium of Spain, than it would be through that of any other nation. This is one of the secret causes that combine so large a part of Europe in the interest of France, because they cannot but consider her as a standing barrier to secure to them the free and equal distribution of this wealth throughout all the dominions of Europe.

This alliance of interest is likewise one of the unseen cements that prevents Spain and Portugal, two nations not very friendly to each other, proceeding to hostilities. They are both in the same situation, and, whatever their dislikes may be, they cannot fail to consider that by giving way to resentment that would weaken and exhaust themselves, each would be exposed a prey to some stronger power.

In short, this alliance of national interest is the only one that can be trusted, and the only one that can be operative. All other alliances formed on the mere will and caprice of Sovereigns, of family connections, uncombined with national interests, are but the quagmire of politics, and never fail to become a loss to that nation who wastes its present substance on the expectancy of distant returns.

With regard to Holland, a man must know very little of the matter, not to know that there exists a stronger principle of rivalship between Holland and England in point of commerce, than prevails between England and France in point of power : and, therefore, whenever a Stadtholder of Holland shall see it his interest to unite with the principle of his country, and act in concert with the sentiments of the very people who pay him for his services, the means now taken by England to render him formidable, will operate contrary to the political expectations of the present day.

Circumstances will produce their own natural effects, and no other, let the hopes or expectations of man be what they may. It is notour doing a thing with a design that it shall answer such or such an end, that will cause it to produce that end ; the means taken must have a natural ability and tendency within themselves to produce no other, for it is this, and not our wishes of policy, that governs the event.

The English Navigation Act was levelled against the interest of the Dutch as a whole nation, and therefore it is not to be supposed that the catching at the accidental circumstances of one man, as in the case of the present Stadtholder, can combine the interest of that country with this. A few years, perhaps a less time, may remove him to the place where all things are forgotten, and his successor, contemplating his father's troubles, will be naturally led to reprobate the means that produced them, and to repose himself on the interests of his country, in preference tb the accidental and tumultuous assistance of exterior power.

England herself exhibits at this day a species of this kind of policy. The present reign, by embracing the Scotch, has tranquillized and conciliated the spirit that disturbed the two former reigns. Accusations were not wanting at that time to reprobate the policy as tinctured with ingratitude towards those who were the immediate means of the Hanover succession. The brilliant pen of Junius was drawn forth, but in vain. It enraptured without convincing ; and tho' in the plenitude of its rage it might be said to give elegance to bitterness, yet the policy survived the blast.'

What then will be the natural consequence of this expence, on account of the Stadtholder, or of a war entered into from that cause ? Search the various windings and caverns of the human heart, and draw from thence the most probable conclusion, for this is more to be depended upon than the projects or declarations of Ministers.

It may do very well for a paragraph in a miserable common news-paper, or the wild effusions of romantic politicians,
1787J PROSPECTS ON THE RUBICON. I99 or the mercenary views of those who wish for war on any occasion, merely for the sake of jobs and contracts, to talk of French finesse or French intrigue ; but the Dutch are not a people to be impressed by the finesse or intrigue of France or England, or any other nation. If there has been any finesse in the case, it has been between the electorate of Hanover, the king of Prussia, and the Stadtholder, in which it is most probable the people of England will be finessed out of a sum of money.

The Dutch, as is already observed, are not a people open to the impression of finesse. It is lost upon them. They are impressed by their commercial interest. It is the political soul of their country, the spring of their actions, and when this principle coincides with their ideas of freedom, it has all the impulse a Dutchman is capable of feehng.

The Opposition in Holland were the enemies of the Stadtholder, upon a conviction that he was not the friend of their national interests. They wanted no other impulse but this. Whether this defect in him proceeded from foreign attachment, from bribery or corruption, or from the well known defects of his understanding is not the point of inquiry. It was the effect rather than the cause that irritated the Hollanders.

If the Stadtholder made use of the power he held in the government to expose and endanger the interests and property of the very people who supported him, what other incentive does any man in any country require ? If the Hollanders conceived the conduct of the Stadtholder injurious to their national interest, they had the same right to expel him which England had to expel the Stuarts ; and the interference of England to re-establish him serves only to confirm in the Hollanders the same hatred against England which the attempt of Lewis XIV. to re-establish the Stuarts caused in England against France ; therefore if the present policy is intended to attach Holland to England, it goes on a principle exceedingly erroneous.

Let us now consider the situation of the Stadtholder, as making another part of the question. He must place the cause of his troubles to some secret influence which governed his conduct during the late war, or, in other words, that he was suspected of being the tool of the then British Administration. Therefore, as every part of an argument ought to have its weight, instead of charging the French with intriguing with the Hollanders, the charge more consistently lies against the British Ministry for intriguing with the Stadtholder, and endangering the nation in a war without a sufiRcient object. That which the Ministry are now doing confirms the suspicion, and explains to the Hollanders that collusion of the Stadtholder, against their national interests, which he must wish to have concealed, and the explanation does him more hurt than the unnecessary parade of service has done him good.

Nothing but necessity should have operated with England to appear openly in a case that must put the Stadtholder on still worse terms with his countrymen. Had France made any disposition for war, had she armed, had she made any one hostile preparation, there might then have been some pretence for England taking a step that cannot fail to expose to the world that the suspicions of the Hollanders against the Stadtholder were well founded, and that their cause was just, however unsuccessful has been the event.

As to the consequence of Holland in the scale of Europe, (the great stake, says some of the news-papers, for which England is contending) that is naturally pointed out by her condition : As merchants for other nations her interest dictates to her to be a neutral power, and this she always will be unless she is made war upon, as was the case in the last war ; and any expectation beyond what is the line of her interest, that is, beyond neutrality, either in England or France, will prove abortive. It therefore cannot be policy to go to war to effect that at a great expence, which will naturally happen of itself, and beyond which there is nothing to expect.

Let Holland be allied with England or with France, or with neither, or with both, her national conduct, consequently arising out of her circumstances, will be nearly the same, that is, she will be neutral. Alliances have such a natural tendency to sink into harmless unoperative things, that to make them a cause for going to war, either to prevent their being formed, or to break any already formed, is the silliest speculation that war can be made upon, or wealth wasted to accomplish. It would scarcely be worth the attempt, if war could be carried on without expence, because almost the whole that can be hoped at the risk and expence of a war, is effected by their natural tendency to inactivity.

However pompous the declarations of an alliance may be, the object of many of them is no other than good-will, and reciprocally securing, as far as such security can go, that neither shall join the enemies of the other in any war that may happen. But the national circumstances of Holland, operate to insure this tranquillity on her part as effectually to the power she is not allied with, as the engagement itself does to the power with whom she is allied ; therefore the security from circumstances is as good as the security from engagement.

As to a cordial union of interest between Holland and England, it is as unnatural to happen as between two individual rivals in the same trade : And if there is any step that England could take to put it at a still greater distance, it is the part she is now acting. She has increased the animosity of Holland on the speculative politics of interesting the Stadtholder, whose future repose depends upon uniting with the Opposition in Holland, as the present reign did with the Scotch. How foolish then has been the policy, how needless the expence of engaging in a war on account of the affairs of Holland.

A cordiality between England and France is less improbable than between England and Holland. It is not how an Englishman feels but how a Dutchman feels, that decides this question. Between England and France there is no real rivalship of interest ; it is more the effect of temper, disposition, and the jealousy of confiding in each other, than any substantial cause, that keeps up the animosity. But on the part of Holland towards England, there is over and above the spirit of animosity, the more powerful motives of interested commercial rivalship, and the galling remembrance of past injuries. The making war upon them under Lord North's administration, when they were taking no part in the hostilities, but merely acting the business of merchants, is a circumstance that will not easily be forgotten by them. On these reasons, therefore, which are naturally deduced from the operative feelings of mankind, any expectation of attaching Holland to England, as a friendly power, is vague and futile. Nature has her own way of working in the heart, and all plans of politics not founded thereon will disappoint themselves.

Any one who will review the history of English politics for several years past, must perceive they have been directed without system. To establish this, it is only necessary to examine one circumstance, fresh in the mind of every man.

The American war was prosecuted at a very great expence, on the publicly declared opinion, that the retaining America was necessary to the existence of England ; but America being now separated from England, the present politics are, that she is better without her than with her. Both these cannot be true, and their contradiction to each other shows want of system. If the latter is true, it amounts to an impeachment of the political judgment of government, because the discovery ought to have been made before the expence was gone into. This single circumstance, yet fresh in every man's mind, is sufficient to create a suspicion, whether the present measures are more wisely founded than the former ones ; and whether experience may not prove, that going to war for the sake of the Stadtholder, or for the hope of retaining a partial interest in Holland, who under any connection, can from circumstances be no more than a neutral power, is not as weak policy as going to war to retain America.

If England is powerful enough to maintain her own ground and consequence in the world as an independent nation, she needs no foreign connection. If she is not, the fact contradicts the popular opinion that she is. There- fore, either her politics are wrong, or her true condition is not what she supposes it to be. Either she must give up her opinion to justify her politics, or renounce her politics to vindicate her opinion.

If some kind of connection with Holland is supposed to be an object worthy some expence to obtain, it may be asked why was that connection broken by making war upon her in the last war? If it was not then worth preserving without expence, is it now worth re-obtaining at a vast expence ? If the Hollanders do not like the English, can they be made to like them against their wills ? If it shall be said that under the former connection they were unfriendly, will they be more friendly under any other? They were then in as free a situation to chuse as any future circumstances can make them, and, therefore, the national governing sentiment of the country can be easily discovered ; for it signifies not what or who a Stadtholder may be, that which governs Holland is, and always must be, a commercial principle, and it will follow this line in spite of politics. Interest is as predominant and as silent in its operations as love ; it resists all the attempts of force, and countermines all the stratagem of controul.

The most able English Statesmen and Politicians have always held it as a principle, that foreign connections served only to embarrass and exhaust England. That, surrounded by the ocean, she could not be invaded, as countries are on the Continent of Europe, and that her insular situation dictated to her a different system of politics to what those countries required, and that to be enleagued with them was sacrificing the advantages of situation to a capricious system of politics. That tho' she might serve them they could not much serve her, and that as the service must at all times be paid for, it could always be procured when it was wanted ; and that it would be better to take it up in this line than to embarrass herself with speculative alliances that served rather to draw her into a Continental war on their account, than extricate her from a war undertaken on her own account.

From this discussion of the affairs of Holland, and of the inadequacy of Holland as an object of war, we will proceed to show that neither England nor France are in a condition to go to war, and that there is no present object to the one or the other to recompence the expence that each must be at, or -atone to the subjects of either for the additional burthens that must be brought upon them. I defend the cause of the poor, of the manufacturers, of the tradesmen, of the farmer, and of all those on whom the real burthen of taxes fall — but above all, I defend the cause of humanity.

It will always happen, that any rumour of war will be popular among a great number of people in London. There are thousands who live by it ; it is their harvest ; and the clamour which those people keep up in news-papers and conversations passes unsuspiciously for the voice of the people, and it is not till after the mischief is done, that the deception is discovered.

Such people are continually holding up, in very magnified terms, the wealth of the nation, and the depressed condition of France, as reasons for commencing a war, without knowing any thing of either of these subjects.

But admitting them to be as true as they are false, as will be hereafter shown, it certainly indicates a vileness in the national disposition of any country, that will make the accidental internal difficulties to which all nations are subject, and sometimes encumbered with, a reason for making war upon them. The amazing encrease and magnitude of the paper currency now floating in all parts of England, exposes her to a shock as much more tremendous than the shock occasioned by the bankruptcy of the South Sea funds, as the quantity of credit and paper currency is now greater than they were at that time. Whenever such a circumstance shall happen, and the wisest men in the nation are, and cannot avoid being, impressed with the danger, it would be looked upon as baseness in France to make the distress and misfortune of England a cause and opportunity for making war upon her, yet this hideous infidelity is publicly avowed in England. The bankruptcy of 1719 was precipi-1787] PSOSPECTS ON THE RUBICON. . 20S

tated by the great credit which the funds then had, and the confidence which people placed in them. Is not credit making infinitely greater strides now than it made then ? Is not confidence equally as blind now as at that day ? The people then supposed themselves as wise as they do now, yet they were miserably deceived, and the deception that has once happened will happen again from the same causes.

Credit is not money, and therefore it is not pay, neither can it be put in the place of money in the end. It is only the means of getting into debt, not the means of getting out, otherwise the national debt could not accumulate ; and the delusion which nations are under respecting the extention of credit is exactly like that which every man feels respecting life, the end is always nearer than was expected ; and we become bankrupts in time by the same delusion that nations become bankrupts in property.

The little which nations know, or are sometimes willing to know, of each other, serves to precipitate them into wars which neither would have undertaken, had they fully known the extent of the power and circumstances of each other ; it may therefore be of some use to place the circumstances of England and France in a comparative point of view.

In order to do this the accidental circumstances of a nation must be thrown out of the account. By accidental circumstances is meant, those temporary disjointings and derangements of its internal system which every nation in the world is subject to, and which, like accidental fits of sickness in the human body, prevent in the interim the full exertion and exercise of its natural powers.

The substantial basis of the power of a nation arises out of its population, its wealth, and its revenues. To these may be added the disposition of the people. Each of these will be spoken of as we proceed.

Instances are not wanting to show that a nation confiding too much on its natural strength, is less inclined to be active in its operations than one of less natural powers who is obliged to supply that deficiency by encreasing its exertions.

This has often been the case between England and France. The activity of England, arising from its fears, has sometimes exceeded the exertions of France reposing on its confidence.

But as this depends on the accidental disposition of a people, it will not always be the same. It is a matter well known to every man who has lately been in France, that a very extraordinary change is working itself in the minds of the people of that nation. A spirit that will render France exceedingly formidable whenever its government shall embrace the fortunate opportunity of doubling its strength by allying, if it may be so expressed (for it is difficult to express a new idea by old terms), the majesty of the Sovereign with the majesty of the nation ; for of all alliances that is infinitely the strongest and the safest to be trusted to, because the interest so formed, and operating against external enemies, can never be divided.

It may be taken as a certain rule, that a subject of any country attached to the government on the principles above mentioned, is of twice the value he was before. Freedom in the subject is not a diminution, as was formerly believed, of the power of government, but an increase of it. Yet the progress by which changes of this kind are effected, requires to be nicely attended to.

Were governments to offer freedom to the people, or to show an anxiety for that purpose, the offer most probably would be rejected. The purpose for which it was offered might be mistrusted. Therefore the desire must originate with, and proceed from the mass of the people, and when the impression becomes universal, and not before, is the important moment for the most effectual consolidation of national strength and greatness that can take place.

While this change is working, there will appear a kind of chaos in the nation ; but the creation we enjoy arose out of chaos, and our greatest blessings appear to have a confused beginning.

Therefore we may take it for granted, that what has at this moment the appearance of disorder in France, is no more

1787] PHOSPECTS ON THE RUB/COAT. 20/

than one of the links in that great chain of circumstances by which nations acquire the summit of their greatness. The provincial assemblies already begun in France, are as full, or rather a fuller representation of the people than the parliaments of England are.

The French, or, as they were formerly called, the Franks, (from whence came the English word frank and free) were once the freest people in Europe ; and as nations appear to have their periodical revolutions, it is very probable they will be so again. The change is already begun. The people of France, as it was before observed, are beginning to think for themselves, and the people of England resigning up the prerogative of thinking.'

We shall now proceed to compare the present condition of England and France as to population, revenues and wealth, and show that neither is in a condition of going to war, and that war can end in nothing but loss, and, most probably, a temporary ruin to both nations.

To establish this point so necessary for both nations to be impressed with, a free investigation of all matters connected with it is indispensable : If, therefore, any thing herein advanced shall be disagreeable, it must be justified on the ground that it is better to be known in order to prevent ruin, than to be concealed, when such concealment serves only to hasten the ruin on.

Of Population. — The population of France, being upwards of twenty-four millions, is more than double that of Great Britain and Ireland ; besides which France recruits more soldiers in Switzerland than England does in Scotland and Ireland. To this may likewise be added, that England and Ireland are not on the best terms. The suspicion that England governs Ireland for the purpose of keeping her low, to prevent her becoming her rival in trade and manufacturies, will always operate to hold Ireland in a state of sentimental hostility with England.

' Dr. Robinet {Danton Emigri, p. 7) alludes to these "prophetic" paragraphs, -written in the summer of 1787, as due to his personal intimacy with those who presently inaugurated the Revolution. It will be remarked that no overthrow of the French Monarchy is suggested. — Editor. Revenues. — The revenues of France are twenty-four millions sterling. The revenues of England fifteen milHons and an half. The taxes per head in France are twenty shillings sterling ; the taxes per head in England are two pounds four shillings and two pence. The national debt of France, including the life annuities (which are two fifths of the whole debt, and are annually expiring) at eleven years purchase, is one hundred and forty-two millions sterHng. The national debt of England, the whole of which is on perpetual interest, is two hundred and forty-five millions. The national debt of France contains a power of annihilating itself without any new taxes for that purpose; because it needs no more than to apply the life annuities as they expire to the purchase of the other three-fifths, which are on perpetual interest : But the national debt of England has not this advantage, and therefore the million a year that is to be applied towards the reducing it is so much additional tax upon the people, over and above the current service.

Wealth. — This is an important investigation : it ought therefore to be heard with patience, and judged of without prejudice.

Nothing is more common than for people to mistake one thing for another. Do not those who are crying up the wealth of the- nation mistake a paper currency for riches ? To ascertain this point may be one of the means of preventing that ruin which cannot fail to follow by persisting in the mistake.

The highest estimation that is made of the quantity of gold and silver in Britain at this present day is twenty millions : and those who are most conversant with money transactions, beheve it to be considerably below that sum. Yet this is no more money than what the nation possessed twenty years ago, and therefore, whatever her trade may be, it has produced to her no profit. Certainly no man can be so unwise as to suppose that encreasing the quantity of bank notes, which is done with as little trouble as printing of newspapers, is national wealth.

The quantity of money in the nation was very well ascer-17 87 J PSOSPECTS ON THE RUBICON. 209

tained in the years 1773, '74, and '76, by calling in the light gold coin.

There were upwards of fifteen millions and a half of gold coin then called in, which, with upwards of two millions of heavy guineas that remained out, and the silver coin, made above twenty millions, which is more than there is at this day. There is an amazing increase in the circulation of Bank paper, which is no more national wealth than news-papers are ; because an increase of promissary notes, the capital remaining unincreasing, or not increasing in the same proportion, is no increase of wealth. It serves to raise false ideas which the judicious soon discover, and the ignorant experience to their cost.

Out of twenty millions sterling, the present quantity of real money in the nation, it would be too great an allowance to say that one fourth of that sum, which is five millions, was in London. But even admitting this to be the case, it would require no very superior powers to ascertain pretty nearly what proportion of that sum of five millions could be in the Bank. It would be ridiculous to suppose it could be less than half a million, and extravagant to suppose it could be two millions.

It likewise requires no very extraordinary discernment to ascertain how immense the quantity of Bank Notes, compared to the capital in the Bank must be, when it is considered, that the national taxes are paid in Bank Notes, that all great transactions are done in Bank Notes, and that were a loan for twenty millions to be opened at the meeting of Parliament, it would most probably be subscribed in a few days : Yet all men must know the loan could not be paid in money, because it is at least four times greater than all the money in London, including the Bankers and the Bank amount too. In short, every thing shows, that the rage that overrun America, for paper money or paper currency, has reached to England under another name. There it was called Continental Money, and here it is called Bank Notes. But it signifies not what name it bears, if the capital is not equal to the redemption.

VOL. 2. — 14 There is likewise another circumstance that cannot fail to strike with some force when it is mentioned, because every man that has any thing to do with money transactions will feel the truth of it, tho' he may not before have reflected upon it. It is the embarrassed condition into which the gold coin is thrown by the necessity of weighing it, and by refusing guineas that are even standing weight, and there appears to be but few heavy ones. Whether this is intended to force the Paper Currency into circulation, is not here attempted to be asserted, but it certainly has that effect to a very great degree, because people, rather than submit to the trouble and hazard of weighing, will take paper in preference to money. This was once the case in America.

The natural effect of encreasing and continuing to increase paper currencies is that of banishing the real money. The shadow takes place of the substance till the country is left with only shadows in its hands.

A trade that does not increase the quantity of real money in a country, cannot be styled a profitable trade ; yet this is certainly the case with England : and as to credit, of which so much has been said, it may be founded on ignorance or a false belief, as well as on real ability.

In Amsterdam, the money deposited in the Bank is never taken out again. The depositors, when they have debts to pay, transfer their right to the persons to whom they are indebted, and those again proceed by the same practice, and the transfer of the right goes for payment ; now could all the money deposited in the Bank of Amsterdam be privately removed away, and the matter be kept a secret, the ignorance, or the belief that the money was still there, would give the same credit as if it had not been removed. In short, credit is often no more than an opinion, and the difference between credit and money is that money requires no opinion to support it.

All the countries in Europe annually increase in their quantity of gold and silver except England. By the registers kept at Lisbon and Cadiz, the two ports into which the gold

1787] PROSPECTS ON' THE RUBICON: 211

and silver from South America are imported, it appears that above eighty millions sterling have been imported within twenty years.* This has spread itself over Europe, and increased the quantity in all the countries on the Continent ; yet twenty years ago there was as much gold and silver in England as there is at this time.

The value of the silver imported into Europe exceeds that of the gold, yet every one can see there is no increase of silver coin in England ; very little silver coin appearing except what are called Birmingham shillings, which have a faint impression of King William on one side, and are smooth on the other.

In what is the profits of trade to show itself but by increasing the quantity of that which is the object of trade, money ? An increase of paper is not an increase of national noney, and the confounding paper and money together, or not attending to the distinction, is a rock that the nation will one day split upon.

Whether the payment of interest to foreigners, or the trade to the East Indies, or the nation embroiling itself in foreign wars, or whether the amount of all the trade which England carries on with different parts of the world, collectively taken, balances itself without profit ; whether one or all of these is the cause, why the quantity of money does not encrease in England, is not, in this place the object of enquiry. It is the fact and not the cause that is the matter here treated of.

Men immersed in trade and the concerns of a countinghouse are not the most speculative in national affairs, or always the best judges of them. Accustomed to run risks in trade, they are habitually prepared to run risks with Government, and though they are the first to suffer, they are often the last to foresee an evil.

Let us now cast a look towards the manufactures. A great deal has been said of their flourishing condition, and
  â€¢ From 1763 to 1777, a period of fifteen years of peace, the registered importations of gold and silver into Lisbon and Cadiz, was seventy millions sterling, besides what was privately landed. — Author. perhaps a great deal too much, for it may again be asked, where is the profit if there is no encrease of money ?

The woollen manufacture is the staple manufacture of England, and this is evidently on the decline, in some, if not in all its branches. The city of Norwich, one of the most populous cities in England, and wholly dependant on the woollen manufacture, is at this day, in a very impoverished condition, owing to the decline of its trade.

But not to rest the matter on a general assertion, or embarrass it with numerous statements, we will produce a circumstance by which the whole progress of the trade may be ascertained.

So long as thirty years ago, the price paid to the spinners of wool was one shilling for twenty-four skains, each skain containing five hundred and sixty yards. This, according to the term of the trade, was called giving a shilling for a shilling. A good hand would spin twelve skains, which was sixpence a day.

According to the increase of taxes, and the increased price of all the articles of life, they certainly ought now to get at least fifteen pence, for what thirty years ago they got a shilling for. But such is the decline of the trade, that the case is directly the contrary. They now get but nine pence for the shiUing, that is, they get but nine pence for what thirty years ago they got a shilling for. Can these people cry out for war, when they are already half ruined by the decline of trade, and half devoured by the increase of taxes ?

But this is not the whole of the misfortunes which that part of the country suffers, and which will extend to others. The Norfolk farmers were the first who went into the practice of manuring their land with marie ; but time has shewn that though it gave a vigour to the land for some years, it operated in the end to exhaust its stamina ; that the lands in many parts are worse than before they begun to marie, and that it will not answer to marie a second time.

The manufacturers of Manchester, Birmingham and Sheffield have had of late a considerable spring, but this appears to be rather on speculation than certainty. The speculations on the American market have failed, and that on Russia is becoming very precarious. Experience likewise was wanting to ascertain the quantity which the treaty of commerce with France would give sale to, and it is most probable the estimations have been too high, more especially as English goods will now become unpopular in France, which was not the case before the present injudicious rupture.

But in the best state which manufactures can be in, they are very unstable sources of national wealth. The reasons are, that they seldom continue long in one state. The market for them depends upon the caprice of fashions, and sometimes of politics in foreign countries, and they are at all times exposed to rivalship as well as to change. The Americans have already several manufactures among them, which they prefer to the English, such as axes, scythes, sickles, ploughs, planes, nails, etc. Window glass, which was once a considerable article of export from England to America, the Americans now procure from other countries, nearly as good as the English Crown Glass, and but little dearer than the common green window glass.

It is somewhat remarkable that so many pens have been displayed to shew what is called the increase of the commerce of England, and yet all of them have stopped short of the grand point, that is, they have gone no further than to shew that a larger proportion of shipping, and a greater quantity of tonnage have been employed of late years than formerly: But this is no more than what is happening in other parts of Europe. The present fashion of the world is commerce, and the quantity encreases in France as well as in England.

But the object of all trade is profit, and profit shews itself, not by an increase of paper currency, for that may be nationally had without the trouble of trade, but by an increase of real money : therefore the estimation should have ended, not in the comparative quantity of shipping and tonnage, but in the comparative quantity of gold and silver.

Had the quantity of gold and silver increased in England, the ministerial writers would not have stopt short at shipping and tonnage ; but if they know any thing of the matter, they must know that it does not increase, and that the deception is occasioned by the increase of paper instead of money, and that as paper continues to increase, gold and silver will diminish. Poorer in wealth, and richer in delusion.

Something is radically wrong, and time will discover it to be putting paper in the room of money.

Out of one hundred millions sterling of gold and silver, which must have been imported into Europe from South America since the commencement of the peace before last, it does not appear that England has derived or retains any portion of it.

M. Neckar states the annual increase of gold and silver in France, that is, the proportion which France, draws of the annual importation into Europe, to be upwards of one million sterling. But England, in the space of twenty years, does not appear to have encreased in any thing but paper currency.

Credulity is wealth while credulity lasts, and credit is, in a thousand instances, the child of credulity. It requires no more faith to believe paper to be money, than to believe a man could go into a quart bottle ; and the nation whose credulity can be imposed upon by bottle conjuring, can, for a time, be imposed upon by paper conjuring.

From these matters we pass on to make some observations on the national debt, which is another species of paper currency.

In short, to whatever point the eye is directed, whether to the money, the paper, the manufactures, the taxes, or the debt, the inability of supporting a war is evident, unless it is intended to carry it on by fleecing the skin over people's ears by taxes ; and therefore the endangering the nation in a war for the sake of the Stadtholder of Holland, or the king of Prussia, or any other foreign affairs, from which England can derive no possible advantage, is an absurd and ruinous system of politics.

France, perhaps, is not in a better situation, and therefore, a war where both must lose, and wherein they could only act the part of seconds, must historically have been denominated a boyish, foolish, unnecessary quarrel.

But before we enter on the subject of the national debt, it will be proper to make a general review of the different manner of carrying on war since the Revolution to what was the practice before.

Before the Revolution the intervals of peace and war always found means to pay off the expence, and leave the nation clear of incumbrance at the commencement of any succeeding war ; and even for some years after the Revolution this practice was continued.

From the year 1688, (the aara of the Revolution) to the year 1702, a period of fourteen years, the sums borrowed by Government at different times, amounted to forty-four millions ; yet this sum was paid off almost as fast as it was borrowed ; thirty-four millions being paid off, at the commencement of the year 1702. This was a greater exertion than the nation has ever made since, for exertion is not in borrowing but in paying.

From that time wars have been carried on by borrowing and funding the capital on a perpetual interest, instead of paying it off, and thereby continually carrying forward and accumulating the weight and expence of every war into the next. By this means that which was light at first becomes immensely heavy at last. The nation has now on its shoulders the weight of all the wars from the time of Queen Anne. This practice is exactly like that of loading a horse with a feather at a time till you break his back.

The national debt exhibits at this day a striking novelty. It has travelled on in a circular progression till the amount of the annual interest has exactly overtaken, or become equal to, the first capital of the national debt, NINE MIL-LIONS. • Here begins the evidence of the predictions so long foretold by the ablest calculators in the nation. The interest will in succession overtake all the succeeding capitals, and that with the proportioned rapidity with which those capitals accumulated ; because by continuing the practice, not onlyhigher and higher premiums must be given for loans, but the money, or rather the paper, will not go so far as it formerly did, and therefore the debt will increase with a continually increasing velocity.

The expence of every war, since the national debt began, has, upon an average, been double the expence of the war preceding it ; the expence therefore of the next war will be at least two hundred millions, which will encrease the annual interest to at least seventeen millions, and consequently the taxes in the same proportion ; the following war will encrease the interest to thirty-three millions, and a third war will mount up the interest to sixty-five^ millions. This is not going on in the spirit of prediction, but taking what has already been as a rule for what will yet be, and therefore the nation has but a miserable prospect to look at. The weight of accumulating interest is not much felt till after many years have passed over ; but when it begins to be heavy, as it does now, the burthen encreases like that of purchasing a horse with a farthing for the first nail of the shoe and doubling it.

As to Mr. Pitt's scheme of reducing the national debt by a million a year, applied to the purchase of stock, it will turn out, to say the least of it, a ridiculous and frivolous project : For if a Minister has not experience enough to distinguish a feather in the air, and such there always will be, from the God of War, nor the clamours and interest of those who are seeking for jobs and contracts from the voice and interests of the people, he will soon precipitate the nation into some unnecessary war : and therefore any scheme of redemption of the debt, founded on the supposed continuance of peace, will, with such conduct, be no more than a balloon.

That the funding system contains within itself the seeds of its own destruction, is as certain as that the human body contains within itself the seeds of death. The event is as fixed as fate, unless it can be taken as a proof that because we are not dead we are not to die.

The consequence of the funding scheme, even if no other event takes place, will be to create two violent parties in the nation. The one, goaded by taxes continually encreasing to pay the interest, the other reaping a benefit from the taxes by receiving the interest. This is very strongly shadowed forth, like the handwriting on the wall, by the ingenious author of the Commercial Atlas, in his observations on the national debt.

The slumber that for several years has over-shadowed the nation in all matters of public finance, cannot be supposed to last for ever. The people have not yet awakened to the subject, and it is taken for granted that they never will. But, if a supposed unnecessary expenditure of between five and six millions sterling in the finances of France (for the writer undertakes not to judge of the fact) has awakened that whole nation, a people supposed to be perfectly docile in all national matters, surely the people of England will not be less attentive to their rights and properties. If this should not be the case, the inference will be fairly drawn that England is losing the spirit that France is taking up, and that it is an ingenious device in the Ministry to compose the nation to unpopular and unnecessary taxes, by shamming a victory when there was no enemy at hand.

In short, every war serves to encrease every kind of paper currency in the nation, and to diminish the quantity of gold and silver, by sending it to Prussia and other foreign countries.

It will not be denied that credulity is a strong trait in the English character ; and this has in no instance shewn itself more than in mistaking paper for money, except it be in the unaccountable ignorance of mistaking the debt of the nation for riches. But the suspicion is beginning to awake.

We will close this article with observing, that a new kind of paper currency has arisen within a few years, which is that of country Bank Notes ; almost every town now has its Bank, its Paper Mint, and the coinage of paper is become universal. In the mean time the melting down the light guineas, and recoining them, passes with those who know no better for an encrease of money ; because every new guinea they see, and which is but seldom, they naturally suppose to be a guinea more, when it is really nothing else than an old guinea new cast.

From this account of the money, paper, and national debt of England, we proceed to compare it with the money, paper, and national debt of France.

It is very well known that paper has not the same credit in France which it has in England, and that, consequently, there is much less of it. This has naturally operated to encrease the quantity of gold and silver in France, and prevent the encrease of paper.

The highest estimation of the quantity of gold and silver in England, as already stated, is twenty millions sterling, and the quantity of. paper grafted thereon, immense.

The quantity of gold and silver in France is ninety millions sterling, and the quantity of paper grafted thereon trifling. France, therefore, has a long run of credit yet in reserve, which England has already expended ; and it will naturally follow, that when the Government of France and the nation shall adjust their differences by an amicable embrace of each other, that this reserved credit will be brought forth, and the power of France will be doubly encreased. The adjustment of these differences is but the business of a day, whenever its Government shall see the proper moment for doing it ; and nothing would precipitate this event more than a war. The cry of war, from the injudicious provocations given by the British Ministry, and the disadvantageous effect of the Commercial Treaty, is becoming popular in France.

The near situation of France to Spain and Portugal, the two countries which import gold and silver, and her manufactures being better adapted to the warm climate of those countries than the manufactures of England, give her superior opportunities of drawing money into the nation ; and as she has but little trade to the East Indies, the money so drawn in is not drawn out again, as in England. Another advantage is that, from the greatness of her dominions, she has no occasion to waste her wealth in hiring foreign troops, as is the practice with England ; and a third advantage is, that the money which England squanders in Prussia and other countries on the Continent serves to encrease the wealth of France, because a considerable part of it centres there through the medium of her commerce.

Admitting Great Britain and Ireland to contain ten millions of inhabitants, the quantity of money per head is forty shillings ; the money per head in France is three pounds fifteen shillings, which is nearly double.

The national debt of England, compared to the whole amount of money in the nation, is as twelve to one, that is, the debt is twelve times greater than all the money amounts to.

The national debt of France,' compared to the whole amount of her money, is considerably less than as two is to one, that is, her debt is not so much as twice the amount of her money. France, therefore, as already stated, has an immense credit in reserve whenever the settlement of her present internal differences shall furnish her with the means of employing it ; and that period, so much to be dreaded by England, is hastening on.

The annual interest of the national debt of England and France are nearly equal, being NINE MILLIONS sterling ; but with this difference, that above three millions and a half of the annual interest of France are only life annuities. The interest, therefore, of her debt lessens every year, and she will have a surplus up to the amount of three millions and a half, to apply to the purchase of that part of the debt which is on perpetual interest ; therefore, without any new taxes for that purpose, she can discharge her whole debt in less than a third of the time in which it can be done in England, according to Mr. Pitt's plan, with his additional tax of a million a year.

But let the event of Mr. Pitt's plan be what it may, as to reducing the debt, there is one circumstance that cannot fail to accompany it, which is, that of making it the interest of Government, in executing this plan, to undermine the interest of its creditors, or the value of the funds, for the purpose of purchasing at a cheaper rate. The plan is founded on the presumption of a long uninterrupted peace, and that future loans would not be wanted, which cannot now be expected, for France in her turn is getting into a temper for war. The plan naturally strikes at the credit of Government, in contracting further debts ; for were a loan to be opened to-morrow, the subscribers, naturally perceiving that it was the interest of Government to undermine them as soon as they became creditors, would consequently seek to secure themselves by demanding higher premiums at first. It is a question whether a premium of thirty per cent, is now as good as ten was before, and therefore the plan, in case of a war, instead of lessening the debt, serves to push it more rapidly on.

The Minister certainly never understood the natural operation of his plan, or he would not have acted as he has done. The plan has two edges, while he has supposed it to have only one. It strikes at the debt in peace, and at the credit in war.

The gentleman who originally furnished the Minister with this plan, now gives it totally up. He knew its operation both in peace and war, but the Minister appears not to have comprehended it : But if he has made a mistake, his youth and inexperience must be his apology.

The plan, unless it should be altered, that is given out for providing for the expence of the late armaments, is in reality no other than the American plan of paper money, and it is very probable that the Minister has received it from some American refugee.

The plan given out is, that the Minister is to borrow the MONEY of the Bank. Here is the delusion. The name of MONEY covers the deception. For the case is, that the Bank does not lend the real money, but it issues out an emission of Bank-paper, and the presumption is that there will be no run upon the Bank in consequence of such an extraordinary emission ; but if there should, no. man can be at a loss in foreseeing the issue.

There are those who remember that on a former run the Bank was obliged to prolong the time of paying shillings and sixpences, and it is universally credited that a quantity of silver is now preservfed in the Bank for the same purpose ; but the device, to every person of reflection, shows that the capital is not equal to the demands, and that the Chapter of Accidents is part of the Bible of Bank.

It may be asked why does not the Government issue the paper instead of the Bank ? The answer is, that it is exactly the same thing in the end, only with this difference in the mode, that were the Government to do it, it would be too visible a system of paper currency, and that a disguise is necessary.

Having recourse to the Bank, is a kind of playing the Bank off against the Funds. Fighting one kind of paper against another, and in the combat both will be sufferers.

In short, the delusion of paper riches is working as rapidly in England as it did in America. A young and inexperienced Minister, like a young and inexperienced Congress, may suppose that he sees mines of wealth in a printing press, and that a nation cannot be exhausted while there is paper and ink enough to print paper money. Every new emission, until the delusion bursts, will appear to the nation an increase of wealth. Every merchant's coffers will appear a treasury, and he will swell with paper riches till he becomes a bankrupt.

When a Bank makes too free with its paper, it exposes itself in much the same manner which a Government does that makes too free with its power ; too much credit is as bad as too little ; and there is such a thing as governing too much, as well in a Bank, as in a Government. But nothing exposes a Bank more than being under the influence instead of the protection of Government, and whenever either the property or the credit of a Bank, can be commanded or influenced by a Government, or a Minister, its destruction is not far off.

We have now stated the comparative condition of England and France as to money matters. But there yet remain some things necessary to be touched upon.

It is an error very frequently committed in the world to mistake disposition for condition. France, with a much better permanent condition for war than England, is in a less disposition to enter into one, and this want of disposition in her is mistaken in England for want of condition ; and on the other hand, the apparent disposition in England for war is mistaken by her for a condition to undertake and carry one on.

There appears a uniformity in all the works of Nature, from individual animals up to nations. The smaller animals are always the most fretful, passionate, and insulting. They mistake temper for strength, and often fall a sacrifice to vexatious impetuosity, while larger ones go calmly on, and require repeated provocations to incense them. France may yet be aggravated into war, and very probably will. Where the condition exists, the disposition may at any time take place. We may create temper, but we cannot create strength.

While the literature of England preserves an honourable rank among the nations of Europe, her national character is most miserably suffering in the world through her newspapers. The most barefaced perfidiousness, the most abandoned principles are daily propagated. A total disregard to all the obligations of national faith and honour are publicly professed. Instead of that true greatness of heart, that calm grandeur of sentiment, that generous disdain of vulgar littleness that ought always to accompany the disputes of nations, scarcely any thing is to be seen but mean abuse and low scurrility. This is not the case in any other country in the world but England.

We will now proceed to conclude with a few additional observations on the state of politics.

For several weeks the nation was amused with the daily rumours of some great Cabinet secret, and admiring how profoundly the secret was kept, when the only secret was, that there was no secret to divulge.

But this opinion of a secret very well shews that the opinion of the nation was opposed to the opinion of the Minister, or the supposition of some great secret would not have taken place, as the affairs of the Stadtholder were then

1787] PROSPECTS ON THE RUBICON.

publicly known. It shews that the nation did not think the Stadtholder of Holland a sufficient reason for laying new taxes on England, and running into the risk and expence of a war, and great was the surprise when the declaration and counter-declaration, like twin mice, peeped from the Cabinet.

But there is one secret that requires to be investigated, which is, whether the Minister did not know that France would not engage in a war, and whether the preparations were not an idle parade, founded on that knowledge.

Whether it was not meanly putting England under the banners of Prussia, and taking thereby a dishonourable advantage of the internal perplexity which France was then in, and which in its turn may happen to England, to assume the air of a challenge, which it must be known would not be accepted, because there was nothing to make the acceptance necessary.

Whether this conduct in the Minister does not mischievously operate to destroy the harmony that appeared to be growing up between the two nations ; to lessen, if not totally destroy, the advantages of the Commercial Treaty, and to lay the seeds of future wars, when there was a prospect of a long and uninterrupted peace.

When there are two ways of accomplishing the same object, it almost always happens that the one is better than the other ; and whether the Minister has not chosen the worst, a few observations will elucidate.

It signifies not what airy schemes, projects, or even treaties may be formed, especially if done under the point of the bayonet, for all that can be expected of Holland is neutrality. Her trade is with all nations, and it is from her neutrality that this trade has arisen. Destroy this neutrality and Holland is destroyed. Therefore it matters not what sentiments party men may be of in Holland as to the Stadtholdership, because there is still a superior banner under which all will unite.

Holland will not expose her trade to the devastations of England by joining France in a war, neither will she expose it to France by joining England. It may very well be asked, what are England or France to Holland, that she should join with either in a war, unless she is compelled to it by one or the other making war upon her, as was the case in the last war ?

Events may soon happen in Europe to make all the force that Prussia can raise necessary to her own defence, and Holland must be wise enough to see that, by joining England, she not only exposes her trade to France but likewise her dominions, because France can invade her in a quarter in which England cannot defend her, provided her Generals prove true, for Holland lies open to France by land. It is, therefore, more immediately the interest of Holland to keep on good terms with France ; neither can England give her any equivalent to balance this circumstance. How foolish then are the politics which are directed to unnatural and impossible objects ! Surely the experience of a century past is sufficient to shew to any man, except one of yesterday, what the conduct of Holland in all cases must be.

But there is another circumstance that does not fail to impress foreigners, and especially Holland ; which is, that the immensity of the national debt of England, the prospect of its still encreasing, and the exorbitancy of her paper currencies, render her too insecure in herself to be much confided in by foreign nations for any length of time. Because that which must happen may soon happen.

Concerning the rescript delivered by the French Minister, there is one certain explanation to be put upon it, which is, that if France had been disposed for war, she would not have made that communication. The very making it goes to a full explanation of the parts ; and as soon as Mr. Pitt obtained this knowledge, it appeared to him a safe moment to gird on his sword ; and when he found that France was as well weaponed as himself, to propose to take it off again. This is in a few words the whole history of the campaign. A war Minister in peace, and a peace Minister in war. Brave where there is no danger, and prudent when there is.

The rescript could be nothing else than an explanation, on the part of France, of the situation she conceived herself to be subject to, and the probable consequences that naight follow from it. This she was not obliged to make, and therefore her making it was a matter of civil communication towards a power she was at peace with, and which in return entitled her to a similar communication on the part of the British Cabinet. All this might have been done without either the expence, the tumult, the provocations, or the ill blood that has been created.

The alliance between France and the Dutch was formed while the Stadtholder was a part of the Government, therefore France could not, from that alliance, take a part either for or against him. She could only act when the whole interest of the Republic was exposed to a foreign enemy, and it was not certain that this might not be the case.

The rescript, therefore, instead of being taken as a ground for war, was in itself a ground for peace, because it tended to bring on a discussion of all the circumstances of France and England relative to Holland, which would not have failed to place Holland in a state of neutrality, and that only will be the final event now ; because, independent of all parties, no other is consistent with the whole national interest of that Republic.

But this is not being done, it is now left to the Dutch to do it for themselves.

An alliance with England, at the same time there is one existing with France, will secure this neutrality, so necessary to the Dutch Republic. By this stroke of politics she will be free from all obligations to join with either in a war, and be guaranteed by both. Her alliance with England will debar England from molesting her trade by sea, and that with France will debar France from the same thing, and likewise from invading her by land in all future cases. There are so many probable circumstances to arise on the Continent of Europe, that the situation of Holland requires this safeguard, more especially from France, on account of her land connection.

The rising greatness of the Russian Empire, the probable union of this Empire with those of Germany and France,

VOL. II— IS and consequently with Spain, whose interests cannot be separated, and the probability of a rupture between the Emperor and the King of Prussia, are matters that cannot fail to impress the Dutch with the necessity of securing themselves by land as well as by sea, and to prevent their being drawn into the quarrels either of England or France.

Upon the whole, as there was a civil as well as an uncivil line of politics to be pursued, every man of humane and generous sentiments must lament it was not chosen.

A disposition for peace was growing up in every part of France, and there appeared at the same time a mutual one rising in England. A silent wish on both sides was universally expanding itself, that wars, so fatal to the true interest and burthensome by taxes to the subjects of both countries, might exist no more, and that a long and lasting peace might take place.

But instead of cultivating this happy opportunity, the pettish vanity of a young and inexperienced Minister, who balanced himself between peace and war to take his choice of circumstances, instead of principles, and who went into an expensive armament when there was none to contend with, and not till after the affairs of Holland might be said to be terminated, has destroyed those seeds of harmony that might have been rendered of more value to both nations than their fleets and armies.

He has permitted the nation to run mad under the universal influence of a groundless belief of vast hostile armaments in the East and West Indies, and the supposition of a secret that never existed. By this means the sparks of ill will are afresh kindled up between the nations, the fair prospects of lasting peace are vanished, and a train of future evils fills up the scene, and that at a time when the internal affairs of France, however confused they at present appear, are naturally approaching to a great and harmonious encrease of its power.

Thomas Paine.

York Street, St. James's Square, 20th August, 1787.

IX. Specification of Thomas Paine.

A.D. 1788 . . . . N° 1667.

Constructing Arches, Vaulted Roofs, and Ceilings

To ALL TO WHOM THESE PRESENTS SHALL COME, I,

Thomas Paine, send greeting.

Whereas His most Excellent Majesty King George the Third, by His Letters Patent under the Great Seal of Great Britain, bearing date the Twenty-sixth day of August, in the Twenty-eighth year of His reign, did give unto me, the said Thomas Paine, His special licence that I, the said Thomas Paine, during the term of fourteen years therein expressed, should and lawfully might make, use, exercise, and vend, within England, Wales, and Town of Berwickupon-Tweed, my Invention of " A Method of Constructing OF Arches, Vaulted Roofs, and Cielings, either in Iron or Wood, on Principles New and Different to anything hitherto practiced, by means of which Construction Arches, Vaulted Roofs, and Cielings MAY be Erected to the extent of several Hundred Feet beyond what can be performed in the present practice of Architecture ; " in which said Letters Patent there is contained a proviso obliging me, the said Thomas Paine, to cause a particular description of the nature of my said Invention, and in what manner the same is to be performed, by an instrument in writing under my hand and seal, to be inroUed in His Majesty's High Court of Chancery

227 within one calendar month next and immediately after the date of the said recited Letters Patent, as in and by the same (relation being thereunto had) may more fully and at large appear.

Now KNOW YE, that in compliance with the said proviso, I, the said Thomas Paine, do hereby declare that my said Invention of A Method of Constructing of Arches, Vaulted Roofs, and Cielings, either in Iron or Wood, on Principles New and Different to anything hitherto practiced, by means of which Construction, Arches, Vaulted Roofs, and Cielings may be Erected to the Extent of several Hundred Feet beyond what can be performed in the present practice of Architecture, is described in manner following (that is to say):—

The idea and construction of this arch is taken from the figure of a spider's circular web, of which it resembles a section, and from a conviction that when nature empowered this insect to make a web she also instructed her in the strongest mechanical method of constructing it.

Another idea, taken from nature in the construction of this arch, is that of increasing the strength of matter by dividing and combining it, and thereby causing it to act over a larger space than it would occupy in a solid state, as is seen in the quills of birds, bones of animals, reeds, canes, etc. The curved bars of the arch are composed of pieces of any length joined together to the whole extent of the arch, and take curveture by bending. Those curves, to any number, height, or thickness, as the extent of the arch may require, are raised concentrically one above another, and separated, when the extent of the arch requires it, by the interposition of blocks, tubes, or pins, and the whole bolted close and fast together (the direction of the radius is the best) through the whole thickness of the arch, the bolts being made fast by a head pin or screw at each end of them. This connection forms one arched rib, and the number of ribs to be used is in proportion to the breadth and extent of the arch, and those separate ribs are also combined and braced together by bars passing 'cross all the ribs, and made fast thereto above and below, and as often and wherever the arch, from its extent, depth, and breadth, requires. When this arch is to be applied to the purpose of a bridge, which requires more arches than one, they are to be connected in the following manner (that is to say) : — Wood piles are to be driven into the earth ; over each of those piles are to be let fall a hollow iron or metal case, with a broad foot let into a bed ; the interspace between the case and the wood pile to be filled up with a cement and pinned together. The whole number of those pillars are to be braced together, and formed into a platform for receiving and connecting the arches. The interspaces of those pillars may be filled with plates of iron or lattice work so as to resemble a pier, or left open so as to resemble a colonade of any of the orders of architecture. Among the advantages of this construction is that of rendering the construction of bridges into a portable manufacture, as the bars and parts of which it is composed need not be longer or larger than is convenient to bestowed in a vessel, boat, or waggon, and that with as much compactness as iron or timber is transported to or from Great Britain ; and a bridge of any extent upon this construction may be manufactured in Great Britain and sent to any part of the world to be erected. For the purpose of preserving the iron from dust it is to be varnished over with a coat of melted glass. It ought to be observed, that extreme simplicity, though striking to the view, is difficult to be conceived from description, although such description exactly accords, upon inspection, with the thing described. A practicable method of constructing arches to several hundred feet span, with a small elevation, is the desideratum of bridge architecture, and it is the principle and practicability of constructing and connecting such arches so as totally to remove or effectually lessen the danger and inconvenience of obstructing the channell of rivers, together with that of adding a new and important manufacture to the iron works of the nation, capable of transportation and exportation, that is herein described. When this arch is to be applied to the purpose of a roof and cieling cords may be added to the arch to supply the want of butments, which are to be braced to or connected with the arch by perpendiculars.

In witness whereof, I, the said Thomas Paine, have hereunto set my hand and seal, the Twenty-fifth day of September, in the year of our Lord One thousand seven hundred and eighty-eight.

Thomas (l.s.) Paine.

Sealed and delivered, being first duly stamped, in the presence of

Peter Whiteside.

And be it remembered, that on the Twenty-fifth day of September, in the twenty-eighth year of the reign of His Majesty King George the Third, the said Thomas Paine came before our said Lord the King in His Chancery, and acknowledged the Instrument aforesaid, and all and every ^ thing therein contained and specified, in form above written. And also the Instrument aforesaid was stamped according o to the tenor of the several Statutes made in the sixth year of the reign of the late King and Queen William and Mary of England, and so forth, and in the seventeenth and twentythird years of the reign of His Majesty King George the Third.

Inrolled the said Twenty-fifth day of September, in the year last above written.

Letter to Jefferson in Paris

No. 13 Broad Street Buildings, London, Feb. 16, 1789.

" Dear Sir : — Your favour of the 23d Dec'r continued to the — of Jan'y came safe to hand ; for which I thank you. I begin this without knowing of any opportunity of conveyance, and shall follow the method of your letter by writing on till an opportunity offers. I thank you for the many and judicious observations about my bridge. I am exactly in your Ideas, as- you will perceive by the following account. — I went to the Iron Works [Yorkshire] the latter end of Oct'r. My intention at the time of writing to you was to construct an experiment arch of 250 feet [an iron Bridge], but in the first place the season was too far advanced to work out of doors, and an arch of that extent could not be worked within doors ; and nextly, there was a prospect of a real Bridge being wanted on the spot, of 90 feet extent. The person who appeared disposed to erect a Bridge was Mr. Foljambe, nephew to the late Sir George Saville, and Member in the last Parliament for Yorkshire. He lives about three miles from the Works, and the river Don runs in front of his house, over which there is an old ill-constructed Bridge which he wants to remove. These circumstances determined me to begin an arch of 90 feet, with an elevation of five feet. — The foreman of the Works is a relative of the Proprietors [Messrs. Walker], an excellent mechanic, who fell in with all my Ideas with great ease and penetration. I staid at the Works till one-half of the Rib, 45 feet, was compleated and framed horizontally together, and came up to

231 London at the meeting of Parliament on the 4th of December. The foreman, whom, as I told him, I should appoint ' President of the Board of Works ' in my absence, wrote me word that he has got the other half together with much less trouble than the first. He is now preparing for erecting and I for returning.

" Feb. 26. A few days ago I received a letter from Mr. Foljambe in which he says, ' I saw the Rib of your Bridge. In point of elegance and beauty it far exceeded my expectations, and is certainly beyond anything I ever saw.'

" My Model and myself had many visitors while I was at the Works. A few days after I got there, Lord Fitz William, heir to the Marquis of Rockingham, came with Mr. [Edmund] Burke. The former gave the workmen five guineas and invited me to Wentworth House, a few miles distant from the Works, where I went, and staid a few days.

" This Bridge I expect will bring forth something greater, but in the meantime I feel like a bird from its nest [America], and wishing most anxiously to return ; therefore as soon as I can bring anything to bear I shall dispose of the contract and bid adieu. I can very truly say that my mind is not at home.

" I am very much rejoiced at the account you give me of the state of affairs in France. I feel exceedingly interested in the affairs of that nation. They are now got or getting into the right way, and the present reign will be more immortalized in France than any that ever preceded it: they have all died away, forgotten in the common mass of things, but this will be to France like an Anno Mundi, or an Anno Domini.

" The happiness of doing good, and the pride of doing great things, unite themselves in this business. But as there are two kinds of Pride, the httle and the great, the privileged orders will in some degree be governed by this division. Those of little pride (I mean little-minded pride) will be schismatical, and those of great pride will be orthodox, with respect to the States General. Interest will likewise have some share, and could this operate freely it would arrange itself on the orthodox side. To enrich a nation is to enrich the individuals which compose it. To enrich the farmer is to enrich the farm — and consequently the landlord ; — for whatever the farmer is, the farm will be. The richer the subject, the richer the revenue, because the consumption from which taxes are raised are in proportion to the abilities of people to consume ; therefore the most effectual method to raise both the revenue and the rental of a country is to raise the condition of the people, — or that order known in France by the Tiers Etat. But I ought to ask pardon for entering into reasoning in a letter to you. I only do it because I like the subject.

" I observe in all the companies I go into the impression which the present circumstances of France have upon this country. An internal Alliance [of Throne and People] in France is an alliance which England never dreamed of, and which she most dreads. Whether she will be better or worse tempered afterwards I cannot judge of, but I believe she will be more cautious in giving offense. She is likewise impressed with an idea that a negotiation is on foot between the King [Louis XVI.] and the Emperor [of Germany] for adding Austrian Flanders to France. This appears to me such a probable thing, and may be rendered [so] conducive to the interest of all parties concerned, that I am inclined to give it credit and wish it success. I hope then to see the Scheld opened, for it is a sin to refuse the bounties of Nature. On these matters I shall be glad of your opinion. I think the States General ' of Holland could not be in earnest when they applied to France for the payment of the quota to the Emperor. All things considered, to request it was meanness and to expect it absurdity. I am more inclined to think they made it an opportunity to find how they stood with France. Absalom (I think it was) set fire to his brother's field of corn to bring on a conversation.

"March 12. With respect to political matters here the truth is, the people are fools. They have no discernment into principles and consequences. Had Mr. Pitt proposed a National Convention at the time of the King's insanity, he had done right ; but instead of this he has absorbed the right of the Nation into a right of Parliament, — one house of which (the Peers) is hereditary in its own right, and over which the people have no control (not as much as they have over their King) ; and the other elective by only a small part of the Nation. Therefore he has lessened instead of increased the rights of the people ; but as they have not sense enough to see it, they have been huzzaing him. There can be no fixed principles of government, or anything like a Constitution, in a country where the government can alter itself, or one part of it supply the other.

" Whether a man that has been so compleatly mad as not to be managed but by force and the mad shirt can ever be confided in afterwards as a reasonable man, is a matter I have very little opinion of. Such a circumstance, in my estimation, if mentioned, ought to be a perpetual disqualification.

" Had the Regency gone on and the new Administration been formed I should have been able to communicate some matters of business to you, both with respect to America and France, as an interview for that purpose was agreed upon, and to take place as soon as the persons who were to fill the offices should succeed. I am the more confidential with those persons, as they are distinguished by the name of the Blue and Buff, — a dress taken up during the American war, and the undress uniform of General Washington with lapels, which they still wear. But at any rate, I do not think it worth while for Congress to appoint any Minister to this Court. The greater distance Congress observes on this point, the better. It will be all money thrown away to go to any expense about it, — at least during the present reign. I know the Nation well, and the line of acquaintance I am in enables me to judge better than any other American can judge, especially at a distance. If Congress should have any business to state to the Government here, it can be easily done thro' their Minister at Paris ; but the seldomer the better. " I believe I am not so much in the good graces of the Marquis of Lansdowne as I used to be. I do not answer his purpose. He was always talking of a sort of reconnection of England and America, and my coldness and reserve on this subject checked communication. I believe he would be a good Minister for England with respect to a better agreement with France.

" Remember me to the Marquis de la Fayette, Mr. Le Roy, Mr. De Corney. Please to inform me if anything further has been done about the Bridge ; and likewise how the new Bridge in your neighbourhood goes on.

" I am, Dear Sir, with much respect,

" Your sincere Friend,

" and ob't H'ble servant,

"Thomas Paine."

XI. Thomas Paine's Answer to Four Ques-tions on the Legislative and Executive Powers.

Translated from the MS. by Condor cet.

I HAVE received from my friend M a note containing the four following propositions on which you are kind enough to desire my opinion. I shall not take up your valuable time with compliments and apologies, but as a man who looks upon himself as a member of the great human family.

On reading the four questions put to T. Paine, one perceives the intention of soliciting, and the hope of obtaining for them, an affirmative answer. The inquirer took care to let the stern Republican understand that should his opinion perchance coincide with that hope, he might expect the
I79i] ON LEGISLATIVE AND EXECUTIVE POWERS. 237

gratitude that a work so conducive to the freedom of the human race would deserve. But interested and eager as I am for its happiness wherever it is found on the face of the earth, and working as a brother and associate with you and all those who are contributing to its felicity, I will lay before you, as briefly as I can, the reflexions that your questions have suggested. In the first place I must warn you that I shall not stop to consider whether our opinions agree in every particular ; but in the assurance that our end is one and the same, I shall limit myself to discussing with you the means of attaining it.

First you agree that the basis of the French constitution is good ; then you ask whether it is not defective on several points, and

1. Whether the legislative and executive powers are not so unequally balanced that there is cause to fear lest the former should encroach upon the latter ?

2. Whether the executive power is not too weak to insure obedience to the law and to secure the respect and confidence of the people ?

3. Whether it is not to be feared that the legislative body consisting of one single chamber will be carried away by its own impetuosity and lack self-restraint ?

4. Whether the organization of the system of administration is not too complicated and of a kind to make anarchy lasting ?

I shall first impart to you a few reflexions on these questions considered separately. I shall next add some remarks that embrace them all. Finally, without examining whether the French constitution is defective and could be improved by being added to, or curtailed, I will lay before you some easy means of modifying it without disturbing the order of government should experience show the necessity of such modifications.

With regard to your opening declaration that the basis of the constitution is good, this basis being no other than the rights of man, it rests on truths so well demonstrated that they can no longer be a subject of discussion — I will merely quote and apply to those who dispute them the well-known saying : The fool hath said in his heart there is no God.

First Question

Are not the legislative and executive powers too unequally balanced, and is there not cause to fear that the former will encroach upon the latter ?

If we consider the legislative and executive powers as emanating from a common source, the nation, and as a distribution of the national power aiming at the general good, it will be difficult to perceive any motive why the one should encroach upon the other, or to conceive any advantage to be derived by either from the success of such an undertaking. But if, on the contrary, we look upon these two powers as having a different origin and struggling against each other, the one for the rights of the nation, and the other for rights that are not those of the nation, your question is no longer the same, and the fear it formulates is no longer fear of evil, but fear for the public safety.

As your terms do not show under which of these two aspects it should be considered, and as it is difficult to discuss separately a question which is directly dependent on a preceding one, I will use to its full extent the liberty which the vagueness of the proposition allows me and put down a few remarks as they suggest themselves to my mind. I shall thus carry the problem to the point of solution rather than solve it myself.

Nations suffer so universally from the fatal custom of being ill governed, and the human soul " cribbed, cabined and confined " through so many centuries, is so unaccustomed to light, that it may be doubted whether the faculty of distinguishing prismatic hues is as yet fully developed within it.

If we rid our ideas of all superfluous words, and consider them in their natural bareness and simplicity, we perceive (as in the very forms of the proposition) only two main divisions of the powers that constitute government : the power of making laws, and that of causing them to be car- ried out or administered. Thus all that pertains to government naturally falls under one or the other of these primary divisions.

We have, I think, generally a more precise and fuller conr caption of the nature of the legislative power than of the executive. By the first, we merely mean the delegated power of making laws in conformity with the basis and principles of the constitution. For, without this conformity, the legislative power would only be despotic power disguised under another name.

But, when we examine the executive power in the vague sens© generally given to that term, we have not so precise or so clear an idea of it as we have of the legislative power. This idea seems to carry with it some admixture of arbitrary power, with the inevitable result of creating suspicion rather than confidence. Consequently, until these powers shall have been defined with equal precision, it is difficult to treat of the propositions that relate to them.

But, if any mutual invasion of these two powers be possible, it is as possible on the part of the one as of the other ; and in this alternative, I should deem that nation safer where an elected legislative body should possess itself of the executive, than where a non-elected executive should assume the power of making laws.

Independently of these considerations, I own that I do not see how a government can with any exactness be compared to a pair of scales. What is there to balance? A balance suggests the idea of opposition. This figure of speech is, I think, borrowed from England, where circumstances had, at first, given it some appropriateness. The English government being a tyranny founded on the Norman Conquest, the nation has constantly sought a counterpoise to what it could not remove.

With the Norman Conquest, aristocracy came in, and the nation had to struggle against a host of obstacles. The weight of the nation was then in the scale against the ruling powers. It is what has since been called the national interest to distinguish it from the interest o/the Court. But the metaphor of a pair of scales is inconceivable in a country where all the powers of government have a common origin. In this case, the idea of two extremities in opposition to each other disappears, and we see only one edifice where union and harmony are the order of the day.

II.

I pass on to the second question, namely " Whether the executive power is not too weak to insure obedience to the law and to secure the respect and confidence of the people ? " When there is a fundamental objection to the first proposition, this objection reappears necessarily in all the propositions that are derived from that first one, and here I ask again. What is the executive power ? If, by this expression, is meant the power of carrying out the laws, these words refer naturally to every tribunal and court of justice whose business it is to enforce the law, since the last recourse is to them, wherever it is violated. The legislature is particularly interested in maintaining the power of the executive, considered from this point of view ; for if the enforcement of the law is weakened, the laws themselves, and those who made them, will be weakened in proportion. But, if it should be admitted that the executive is no longer able to enforce obedience to the laws and secure the respect and obedience of the people, a great question presents itself, namely, what is the cause of this incapacity ?

This question leads us to consider the term executive power, as referring, not to the immediate carrying out of the laws, but as designating a medium or centre through which they must pass to reach the point of execution. And this brings our thoughts to bear on that part of the constitution called the monarchy.

The original and direct meaning of the word " monarch " is absolute power concentrated in one man. This meaning is always the same and suffers no other interpretation. It must be admitted that the constitution, although sublime in its principles, offers here a contradiction between ideas and terms, and as such a contradiction ever brings suspicion in its train, let us examine to what extent suspicion leads, in its turn, to non-execution of the law.

If a remembrance of the nature and extent of monarchical power in old days, and the idea that is attached to those terms, continue to be identified with that of executive power, every scheme likely to strengthen the latter will only tend to increase suspicion and diminish confidence.

If there were a law of Nature, or a decree of the Almighty, made known to men, by which He had determined that all the successive holders of the same power should be endowed with the same heart, and that heart never deceived, suspicions, fears, and alarms would be appeased. But when we see Nature act as if she were determined to disown the monarchical system, producing monarchs as diverse in character as in person, making one wicked, the other stupid, a third mad, and another all these things at once, will it be possible, so long as reason remains a faculty of man, for him to give the least credence to this hereditary absurdity ?

If the French should scorn reflexion as long as the English have done, their lethargic indifference might look like happiness, and their thoughtlessness like confidence ; but confidence, to be lasting, must be an edifice raised by time on the foundation of reason.

Iii

I pass on to the third question : Is there not cause to fear that the legislative body, composed of a single chamber, may be carried away by its own impetuosity aud lack self-restraint f

This question may be considered under so many aspects, each of which is open to so many arguments, that it seems as yet hardly susceptible of a positive answer. I will nevertheless give you my ideas on this point.

A Constitution, in defining the limits of power, together with the principles which the legislature is bound to obey, has already provided a most powerful and trustworthy check upon any abuse of power.

If, for instance, a law were proposed in one of the legislatures of America, like that passed in the English Parliament (at the beginning of the reign of George I.), to prolong the duration of these Parliaments, such a law could never pass, because the constitution is opposed to it and says : " Thus far shall ye go and no farther."

But, although all the restrictions to power under. its various forms should be provided for by the constitution itself, much will always have to be left to the prudence and discretion of the different legislative bodies.

However much skill is displayed in combining the various powers of a constitution, if you establish two chambers you cannot calculate beforehand, with any certainty, the degree of restraint they will exercise upon each other. They may have an understanding not to use that power of mutual restraint, either for good or for evil ; but a check provided by the constitution will have a certain and beneficial effect.

As to my private opinion, I should prefer for the reasons I shall unfold, that the legislature should be divided in two sections at the beginning of a debate, to its being always one body, or to its forming two separate bodies.

It seems to me that in this matter of the division of the legislative body, reason is not so much to be taken into consideration, as the passions of men. For, whenever the object is to convince or to persuade, the influence of these passions should be turned to account.

Wherever the legislative body consists of one single chamber, it runs the risk of coming to rash decisions; whereas division offers one chance more for collected judgement. There is no doubt that discussion sheds light, and that a superior man may sometimes derive benefit from the ideas of a person less enlightened than himself. But, if he means to carry out these ideas, it is best he should himself take but Httle part in the debate. I suppose therefore that the legislative body consists of 100 persons : instead of opening the debate in one assembly, divide the chamber into two equal sections that shall deal with some question, not at the same time, but successively. By this means, one section would listen to the arguments of the other, and when each separately should have closed the debate, it might be renewed and the vote put in the general assembly. I think therefore it might be possible to hit on some scheme preferable to one chamber, as at present established, and free from the drawbacks that result from two chambers, some of which I shall proceed to state.

In the first place, it is illogical that one division of the legislature should have the power of coming to a final decision on any one question while this question is still under discussion by another body and consequently still open to new lights.

Secondly, it is possible and constantly happens that when the votes of each chamber are taken separately, the minority governs the majority in a way both shocking and ridiculous. Let us suppose, for instance, that the two chambers are composed of 50 members each. If unanimity exists in the one, and the other be divided in the proportion of 26 votes against 24 — then 26 shall carry it against 74, that is, onefourth of the votes and one over, shall govern the other three-fourths. If the chambers are in the proportion of 60 to 40, 70 to 30, or 80 to 20, the evil is greater still, for then eleven votes can carry it against 89, if these eleven votes are at the same time in opposition to the nine of their own, and to the totality of the other chamber.

But if the legislative body be only divided in order to facilitate debate and not for the purpose of carrying resolutions, all the advantages of separate discussion result from this division without the drawbacks of two chambers.

As to the two chambers which constitute the Parliament of England, they seem absolutely fused into one, and as legislative bodies to have no special character of their own. In all respects they take that of the Premier of the day, whatever it be, and whatever the epoch of his premiership. He touches them with his soporific wand, and at once they fall into the sleep of subserviency.

If we consider the individual merit of those who compose these two chambers, we shall see that the one whose very name (House of Lords *) is an outrage on nature, has been very justly deprived of talent and virtues by nature herself. Pitiable though the representation of England is, the Commons are in a virile state compared to the Lords. That wretched assembly is so little considered and appears so puerile, that the people never ask what it is about. It also comes most under ministerial influence. In the debate on war with Russia, the minister had a majority of over 90 in the Lords, whilst in the other chamber, which is twice as numerous, he had only a majority of 63. Chesterfield, a member of that assembly, and one of those who knew it best, had nicknamed it " the Hospital for Incurables."

I am little inclined to admit the idea of two chambers with an arbitrary and reciprocal veto. Nothing in the principle of good representation shows that the one may be wiser than the other, and thus to intrust power where wisdom cannot be given to use it is as much to run a risk as to take a precaution.

All human institutions having been improved since their origin, we must believe that the representative system will be improved too and this hope is all the better established that this system is among our institutions one of those which have met with the greatest number of obstacles and have had the best chance of being perfected.

IV.

I pass on to the fourth question — Whether the organization of the administrative system is not too complicated and of such a nature as to perpetuate anarchy ?

A great advance has been made in the science of government (especially where the state is of considerable extent) by the institution of a system which puts each part of a country in a position to govern all its private affairs. Not only is private and public business simplified thereby, but the waste of time and the expense consequent upon administration from a distance are avoided, as well as the mistakes that such a system of jurisdiction entails. Lord means Master. — Author. Although the general utility of the institution referred to above is evident, a particular knowledge of local circumstances is necessary to judge of its details. I own I do not possess this particular knowledge, my purpose being rather to elucidate general principles of government ; for, if these be good, the application of them to particular cases, will be good also. The science of government being still in its infancy I am satisfied with hoping that no system will be established likely to prevent us from profiting by the lessons of experience.

In spite of the study which has been made of the science of government, of its principles, its operations, and its manifold results, the following question has not yet been sufficiently examined, nor has enough light been thrown upon it : How small a measure of government is necessary to civilized man?

I cannot now go thoroughly into this question. To do so would be to exceed the limits I have prescribed to myself. Moreover, it is being considered in a work of mine now in course of composition.

But I am very decided in the opinion that the sum of necessary government is much less than is generally thought, and that we are not yet rid of the habit of excessive government.

If I ask any one to what extent he thinks himself in need of being governed, he gives me to understand that in his case " a little would be enough " ; and I receive the same answer from every one. But if, reversing the question, I ask the same man what amount of government he deems necessary for another, he answers : " a great deal." As that other person decides the question in the same way for everybody else, the result of all these answers is excess of government. I conclude therefore that the amount really necessary is to be found between these two extremes. It is, namely, a little more than each wants for himself and a good deal less than he thinks necessary for others. Excess of government only tends to incite to and to create crimes which else had never existed.

The wretched traffic of former governments was in a great measure upheld by the care they took to throw everywhere seeds of division, and to encourage the growth of suspicion, not only from nation to nation, but also from man to man. Such a traffic can only perpetuate itself by destroying the very principles of society, and we are still suffering from the effects of that rotten system. We must therefore consider that the moral condition of man must needs change, and that under better principles of government, he will cease to be the suspicious creature he inevitably was under former systems. Already, as nations come nearer to adopting the principles of civilized government, the human mind acquires a new faculty. The people of England and those of France are no longer what they were two years ago with respect to each other, and the same principles that actuate the bulk of these nations will prevail in the private relations of each. But the moral changes which obtain between nations, or between individuals, although very rapid in their operation when they lead to evil, are very slow when they lead to good. It is easy enough to prompt suspicion, but difficult to eradicate it. Force cannot kill it : it must be undermined silently, and it will crumble away without noise.

If we consider the situation of France under the old regime, we see a government founded on suspicion, consequently on spies and eaves-droppers, whose business it was to report everything to the pohce. Every social circle was accustomed to suspect one or other of its members ; confidence, except as a word, did not exist. The master suspected his servants, neighbours suspected each other, government suspected them all, and all suspected government. Therefore, we should rather wonder at the new regime being able to obtain the degree of confidence it does enjoy, than lament its not obtaining more. So much must needs be forgotten in this respect, that I wish the nation had no memory for the past.

I now come to the last part of my letter — to the consideration of the best means of perfecting the constitution (should experience show the necessity of it) without interrupting the course of government. The best way to do so would be to insert in the constitution a clause by which the method of these improvements would be determined. As opinion is divided on this point, I shall make it the object of a special discussion. So far, France has been without a Constitution : not only is she now on the eve of establishing one, but of electing a legislative assembly. In this condition of things, it is more than ever necessary to distinguish between the situation of the nation, when delegating power to form a constitution, and its situation afterwards, when obliged to delegate its authority to a legislative body, organized in accordance with that constitution. The constitution itself, and the laws, are two things essentially distinct from the power of framing laws to meet special circumstances, in accordance with the principles of that constitution. If the primal authority to form a constitution were to come down as an inheritance to every legislative body in succession, it is clear there would no longer be such a thing as a constitution ; and legislation having become arbitrary, as in England, it would without difficulty set up any government it liked. The present National Assembly, or to speak more exactly and to distinguish it from ordinary legislatures, the National Assembly of the Convention, has been obliged by stress of circumstance to take the place of a legislature, at the same time that it was framing a constitution. It was called upon to destroy, to construct, and to provide for immediate needs, whilst completing the new edifice. The mass of business was enormous and its attention was called for on every side at the same time. Without mentioning the special business which occupied the Assembly, its labours, in order to frame a constitution, come under two heads : what it has destroyed, what it has built up. With respect to the first head, it could not err; for the old edifice rested on an evil foundation, that is on usurped power.

After thus simplifying the question, it remains only to examine the second head, namely what has been set up in lieu of the old edifice. The foundations, on which the new rests are undisputably good, and that alone is sufficient compensation for all the nation has suffered. But have the old materials been used too sparingly, or with too free a hand, in the new building? Do all the parts present an exact symmetry ? Is this symmetry greater or less than experience shows to be necessary? These are points on which experience itself can alone pronounce. All the wisdom of the present moment must limit itself to putting no obstacles in the way of the improvement that time may bring.

Meanwhile the world is perfectly agreed on two points : the boldness of the undertaking, and the perseverance displayed in carrying it out. It is natural that zeal, together with the fear of a return of bad government, should have induced the men to whom the power of framing a constitution had been delegated, to establish permanently what is only relatively good, instead of risking a return of former evils. But since this final settlement prevents what is good from becoming better, the wisdom of such a, measure is at least doubtful. The degree of enlightenment attained by a nation, or more generally by the world, is one of the points to be considered. Reason is beginning to throw such strong daylight upon all political questions that we should boldly and magnanimously repulse every sort of fear lest man should sink back in the black night of ignorance ; and since, in all countries whatever, the interest of the greatest number makes for good rather than for evil, these different causes working together will bring the science of government to a degree of perfection of which we can, as yet, form no idea. We should not therefore hinder its progress. While it would not be wise in us to fetter ourselves, with respect to posterity it would be usurpation. Man has no authority over posterity — if he had, our rights would long since have been lost. Pride inclines us too much to cast our eyes toward the future, when considering this question ; whereas, the best way of doing so, would be to reflect on the past, and see to what state we should be reduced, had our ancestors sue- ceeded in putting upon us with any show of legitimacy, the yoke we are trying to impose upon our descendants. We should not have been able to do what we are doing at the present moment. It is not enough that man should have the enjoyment of his rights. The exercise of these rights must be secured to him by the principles of social order.

The best we can do for our children in the matter of government, is to bequeath to them freedom together with good examples. What is worthy of imitation will necessarily be imitated. The intrinsic merit of our institutions, and not the checks we might put upon posterity, will determine it to imitate these institutions. When a man bequeaths an inheritance, he does not impose upon his heirs the obligation to accept it ; such a condition would be absolutely null and void. The inheritance will be accepted if it is worth anything, and refused if it be valueless. Can it be otherwise with respect to government ? The rights of man are the rights of all generations. We should not let anxiety for their welfare carry us to the pitch of doubting their capacity. They might be wiser than we are. Let us not therefore be so bUnd as to usurp a power to which we have no right.

The means of amending itself is a very important part of the constitution. It is perhaps impossible to combine in one institution principles, opinions and practice, in such a way that time shall bring no alterations and show no drawbacks. The best way to obviate such an increase of these drawbacks as might discourage attempts at reform or provoke revolutions, is to provide means of correcting them as they arise. Such a constitution may be called a perpetual constitution, but no other deserves that name. The constitution of Pennsylvania, established 1776 by the convention of which Benjamin Franklin was president, contained' a statute to the effect that at the end of seven years (a term of years supposed to extend beyond the duration of the war) a new convention should be elected to revise the constitution, to compare it with public opinion and to propose such additions or retrenchments as might be deemed useful or necessary. But the proposed amendments were to be the object of public attention for a considerable time before being either rejected or confirmed. This clause was altered in a subsequent convention, and the right of the nation to alter or perfect the constitution whenever she should deem it necessary was substituted for it.

For my part I think that a periodical exercise of that right is preferable to the above general declaration ; for, at the same time that the periodic exercise of their power does not destroy the everlasting right, it provides frequent opportunities of using it and thus helps to keep government within the principles of the constitution.

The federal government, or that which embraces the whole of the United States, framed by the convention of 1787, under the Presidency of General Washington, to-day President of Congress, also contains a clause which admits of every future improvement ; but to bring these about recourse must be had to the authority of the people, and to those very means by which the constitution itself was framed. Whilst establishing a good government, it is necessary to provide means to keep it so.

This precaution is in fact so necessary that a constitution would be incomplete without it. Experience having shown us how very difficult it is to carry out reforms, it is to the real advantage of posterity that we should devise beforehand means for their accomplishment.

A constitution which contains a clause giving facilities for its amendment, is protected against all opposition ; for the hopes that may desire improvements, or what they look upon as such, will operate to bring them the means which the constitution furnishes and by doing so, will carry on its authority. This measure has another advantage. It defines precisely wherein consists the crime of high treason against the constitution itself — to seek to alter any part of it by other means than those it furnishes (means equally within reach of all citizens) is a clear definition of those terms and serves to impress, not merely on individuals, but on the holders of power also, a wholesome fear lest they should prove guilty of high treason. The authority to frame a constitution does not necessarily imply the authority to establish it : it must first be proposed and then approved before the power to establish it can exist. It is thus the matter has been settled in America. But, in spite of different methods of action having been followed in that country and in France, results in both have shown a good deal of similarity. The American Convention did not allow any part of its labours to appear until it was completed, when it published the whole and gave public opinion time to sanction it before putting it into execution. The French National Assembly, on the contrary, has published its work as it proceeded with it, beginning with the declaration of rights. Both methods therefore are alike in one particular, namely in appealing to the public approbation, and either system may be equally good.

It is not necessary, in order to add a precautionary clause, to examine whether the constitution is so perfect as to be under no need, or even susceptibility, of improvement. This clause extends to any alteration the constitution may require in the future, and to what we cannot even foresee. I do not believe that the men now living have produced every possible thought on government, and the Abb6 Raynal has just proved to us that ancient errors have not yet died of old age.

When the general principles of a constitution are sound, the minor reforms which experience may demand are so easy to bring about that the nation will never be tempted to let abuses accumulate. It seems to me good policy to fix the date for the first revision of the constitution to seven years hence; for before those years are over, its advantages and defects will have had time to make themselves known. We should remark also that some of the most important articles of the constitution have not been the result of reflexion, but of special circumstances ; such, for instance, is the decree on the right of peace and war. As, on the other hand, it is not to be supposed that the space of two years (the time which the Assembly took to frame the constitution) has been sufficient to produce every possible circumstance, it is well, on the supposition of necessary additions or amendments, that the first period of revision should not be deferred to a too distant date. It is not impossible — nay, it is even probable — that the whole system of government in Europe will change, that the ferocious use of war, — that truly barbarous cause of wretchedness, poverty and taxation, — will yield to pacific means of putting an end to quarrels among nations. Government is now being revolutionized from West to East by a movement more rapid than the impulse it formerly received from East to West. I wish the National Assembly may be bold enough to propose a Convention elected by the different peoples of Europe for the general welfare of that portion of the world. Freedom for ourselves is merely happiness : it becomes virtue when we seek to enable others to enjoy it.

A journey has prevented my finishing sooner this letter, begun more than five weeks ago. Since that time, circumstances have changed in France, owing to the flight and arrestation of Louis XVI. Every successive event incites man to reason. He proceeds from idea to idea, from thought to thought, without perceiving the immense progress he is making. Those who believe that France has reached the end of its political knowledge, will soon find themselves, not only mistaken, but left behind, unless they themselves advance at the same rate. Every day brings forth something new. The mind, after having fought kings as individuals, must look upon them as part of a system of government, and conclude that what is called monarchy is only a superstition and a political fraud, unworthy of an enlightened people. It is with monarchy as with all those things which depend on some slavish habit of mind.

Could we draw a circle round a man, and say to him : You cannot get out of this, for beyond is an abyss ready to swallow you up— he will remain there as long as the terror of the impression endures. But if, by a happy chance, he sets one foot outside the magic circle, the other will not be slow to follow.

Thomas Paine.

XII. Address and Declaration.

At a select Meeting of the Friends of Universal Peace and Liberty, held at the Thatched House Tavern, St. James's Street, August 20, ijgi, the following Address and Declaration to our Fellow Citizens was agreed on and ordered to be published.

Friends and Fellow Citizens,

At a moment like the present, when wilful misrepresentations are industriously spread by the partizans of arbitrary power, and the advocates of passive obedience and court government, we think it incumbent on us to declare to the world our principles, and the motives of our conduct.

We rejoice at the glorious event of the French Revolution.

If it be asked : What is the French Revolution to us ?

We answer, (as it has been already answered in another place,*) It is much to us as men : much to us as Englishmen.

As men we rejoice in the freedom of twenty-five millions of our fellow men. We rejoice in the prospect which such a magnificent example opens to the world. We congratulate the French nation for having laid the axe to the root of tyranny, and for erecting government on the sacred hereditary rights of man — Rights which appertain to ALL, and not to any one more than to another. We know of no human authority superior to that of a whole nation ; and we pro-
  â€¢ Declaration of the Volunteers of Belfast. — Author. 253 fess and proclaim it as our principle that every nation has at all times an inherent indefeasible right to constitute and establish such government for itself as best accords with its disposition, interest, and happiness.

As Englishmen we also rejoice, because we are immediately interested in the French Revolution.

Without enquiring into the justice on either side of the reproachful charges of intrigue and ambition, which the English and French Courts have constantly made on each other, we confine ourselves to this observation : — That if the Court of France only was in fault, and the numerous wars which have distressed both countries, are chargeable to her alone, that Court now exists no longer ; and the cause and the consequence must cease together. The French, therefore, by the revolution they have made, have conquered for us as well as for themselves ; if it be true that their Court only was in fault, and ours never.

On this state of the case, the French Revolution concerns us immediately. We are oppressed with a heavy national debt, a burthen of taxes, and an expensive administration of government, beyond those of any people in the world. We have also a very numerous poor ; and we hold that the moral obligation of providing for old age, helpless infancy, and poverty, is far superior to that of supplying the invented wants of courtly extravagance, ambition, and intrigue.

We believe there is no instance to be produced but in England, of seven millions of inhabitants, which make but little more than one million of families, paying yearly SEVEN-TEEN MILLIONS of taxes.

As it has always been held out by all administrations that the restless ambition of the Court of France rendered this expense necessary to us for our own defence, we consequently rejoice as men deeply interested in the French Revolution, for that Court, as we have already said, exists no longer ; and consequently the same enormous expenses need not continue to us.

Thus rejoicing, as we sincerely do, both as men and Englishmen, as lovers of universal peace and freedom, and as friends to our own national prosperity, and a reduction of our public expenses, we cannot but express our astonishment that any part, or any members of our own government, should reprobate the extinction of that very power in France, or wish to see it restored, to whose influence they formerly attributed (whilst they appeared to lament) the enormous increase of our own burthens and taxes. What, then, are they sorry that the pretence for new oppressive taxes, and the occasion for continuing many of the old taxes, will be at an end ? If so, and if it is the policy of courts and of court governments, to prefer enemies to friends, and a system of war to that of peace, as affording more pretences for places, ofifices, pensions, revenue, and taxation, it is high time for the people of every nation to look with circumspection to their own interests.

Those who /ay the expense, and not those who participate in the emoluments arising from it, are the persons immediately interested in inquiries of this kind. We are a part of that national body, on whom this annual expense of seventeen millions falls ; and we consider the present opportunity of the French Revolution as a most happy one for lessening the enormous load under which this nation groans. If this be not done, we shall then have reason to conclude, that the cry of intrigue and ambition against other courts, is no more than the common cant of all courts.

We think it also necessary to express our astonishment that a government, desirous of being called FREE, should prefer connection with the most despotic and arbitrary powers in Europe. We know of none more deserving this description than those of Turkey and Prussia, and the whole combination of German despots. Separated as we happily are by nature, from the tumults of the Continent, we reprobate all systems and intrigues which sacrifice (and that too at a great expense) the blessings of our natural situation. Such systems cannot have a national origin.

If we are asked, what government is? — We hold it to be nothing more than a NATIONAL ASSOCIATION, and we hold that to be the best which secures to every man his rights.

and promotes the greatest quantity of happiness with the least expence.

We live to improve, or we live in vain ; and therefore we admit of no maxims of government or policy on the mere score of antiquity, or other men's authority, the old whigs or the new.

We will exercise the reason with which we are endued, or we possess it unworthily. As reason is given at all times, it is for the purpose of being used at all times.

Among the blessings which the French Revolution has produced to that nation, we enumerate the abolition of the feudal system of injustice and tyranny on the 4th of August, 1789. Beneath the feudal system all Europe has long groaned, and from it England is not yet free. Game laws, borough tenures, and tyrannical monopolies of numerous kinds, still remain amongst us ; but rejoicing as we sincerely do, in the freedom of others, till we shall happily accomplish our own, we intended to commemorate this prelude to the universal extirpation of the feudal system, by meeting on the anniversary of that day (the 4th of August) at the Crown and Anchor. From this meeting we were prevented by the interference of certain unnamed and skulking persons with the master of the Tavern, who informed us, that on their representations he could not receive us. Let those who live by, or countenance feudal oppressions, take the reproach of this ineffectual meanness and cowardice to themselves. They cannot stifle the public declaration of our honest, open, and avowed opinions.

These are our principles, and these our sentiments. They embrace the interest and happiness of the great body of the nation of which we are a part. As to riots and tumults, let those answer for them, who, by wilful misrepresentations, endeavor to excite and promote them ; or who seek to stun the sense of the nation, and to lose the great cause of public good in the outrages of a misinformed mob. We take our ground on principles that require no such riotous aid. We have nothing to apprehend from the poor ; for we are pleading their cause. And we fear not proud oppression, for we

i79i]

Address and Declaration have truth on our side. We say, and we repeat it, that the French Revolution opens to the world an opportunity in which all good citizens must rejoice — that of promoting the general happiness of man. And that it moreover offers to this country in particular, an opportunity of reducing our enormous taxes.

These are our objects, and we will pursue them.

J. Horne Tooke

Chairman.'

' Only signed by Tooke as Chairman, but written by Paine. — Editor. VOL. u.— 17

XIII.
