the profits of the contracts made with government, which should bear interest, to be annually paid in specie; in the loan of money at interest, say six per cent.; in purchasing lives by annuities, as practised in England, &c. The benefit resulting to the company is evident, from the consideration, that they may employ in circulation a great deal more money than they have specie in stock, on the credit of the real property which they will have in other use. This money will be employed, either in fulfilling their contracts with the public, by which, also, they will gain a profit, or in loans, at an advantageous interest, or in annuities.

"The bank may be allowed to purchase plate and bullion, and coin money, allowing government a part of the profit.

"I make the bank notes bear interest, to obtain a readier currency, and to induce the holders to prefer them to specie, to prevent too great a run upon the bank, at any time, beyond its ability to pay.

"If government can obtain a foreign loan, it should lend to the bank, on easy terms, to extend its influence, and facilitate a compliance with its engagements. If gov ernment could engage the States to raise a sum of money in specie, to be deposited in bank, in the same manner, it would be of the greatest consequence. If government could prevail on the enthusiasm of the people, to make a contribution in plate, for the same purpose, it would be a master stroke. Things of this kind sometimes succeed in popular contests; and if undertaken with address, I should not despair of its success; but I should not be sanguine.

"The bank may be instituted for a term of years, by way of trial; and the particular privilege of coining money be for a term still shorter.

"A temporary transfer of it to a particular company

can have no inconvenience, as the government are in no condition to improve this resource; nor could it, in our circumstances, be an object to it; though with the industry of a knot of individuals, it might be a valuable one to them.

"A bank of this kind, even in its commencement, would answer the most valuable purposes to government, and to the proprietors; in its progress, the advantages will exceed calculation. It will promote commerce, by furnishing a more extensive medium, which we greatly want, in our circumstances. I mean a more extensive, valuable medium. We have an enormous nominal one at this time; but it is only a name.

"In the present unsettled state of things, in this country, we can hardly draw inferences, from what has happened in others; otherwise I should be certain of the success of this scheme; but I think it has enough in its favor to be worthy of trial.

"I have only skimmed the surface of the different subjects I have introduced. Should the plans recommended come into contemplation in earnest, and you desire my farther thoughts, I will endeavor to give them more form and particularity.

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"I am persuaded a solid confederation, a permanent army, a reasonable prospect of subsisting it, would give us treble consideration in Europe, and produce a peace this winter.

"If a convention is called, the minds of all the States and the people ought to be prepared to receive its determinations by sensible and popular writings, which should conform to the views of Congress. There are epochs in human affairs, when novelty even is useful. If a general opinion prevails that the old way is bad, whether true or false, and this obstructs or relaxes the operations of the

public service, a change is necessary if it be but for the sake of change. This is exactly the case now. 'Tis an universal sentiment that our present system is a bad one, and that things do not go right on this account. The measure of a convention would revive the hopes of the people, and give a new direction to their passions, which may be improved in carrying points of substantial utility. The Eastern States have already pointed out this mode to Congress they ought to take the hint, and anticipate the others.

"And in future, my dear sir, two things let me recommend, as fundamental rules for the conduct of Congress : to attach the army to them by every motive,-to maintain an authority, (not domineering,) in all their measures with the States. The manner in which a thing is done, has more influence than is commonly imagined. Men are governed by opinion: this opinion is as much influenced by appearances as by realities. If a government appears to be confident of its own powers, it is the surest way to inspire the same confidence in others. If it is diffident, it may be certain there will be a still greater diffidence in others, and that its authority will not only be distrusted, controverted, but contemned.

"I wish, too, Congress would always consider, that a kindness consists as much in the manner as in the thing. The best things, done hesitatingly, and with an ill grace, lose their effect, and produce disgust rather than satisfaction or gratitude. In what Congress have at any time done for the army, they have commonly been too late. They have seemed to yield to importunity, rather than to sentiments of justice, or to a regard to the accommodation of their troops. An attention to this idea is of more importance than it may be thought. I, who have seen all the workings and progress of the present discontents, am

convinced that a want of this has not been among the most inconsiderable causes.

"You will perceive, my dear sir, this letter is hastily written, and with a confidential freedom, not as to a mem-1 ber of Congress, whose feelings may be sore at the prevailing clamor; but as to a friend, who is in a situation to remedy public disorders,-who wishes for nothing so much as truth, and who is desirous for information, even from those less capable of judging than himself. I have not even time to correct and copy, and only enough to add, that I am, very truly and affectionately, dear sir," &c.

It will be observed that Hamilton proposed that the convention, to carry into effect his views, should meet within two months, "authorized to conclude finally on a general confederation." There is little doubt, had Congress avowed their inability to carry on the war advantageously without such a measure, appealing to the people of the United States to exert their sovereignty in the organization of a new vigorous government, the appeal would have been successful.

What the benefits of such a result, then accomplished, might have been to this country, a retrospect of the thirty years that followed would amply show.

The conclusion of a peace within a few months, Hamilton anticipated as a certain consequence. Released from the pressure of war, with a small national debtwith burdens so light as not to be felt,-with no motives to fetter industry in its competition with the European world, their new institutions, during a profound peace, under the guidance of the men who had won their liberty, conformed to their new condition, and consolidated by a happy harmony, before the revolution of France shook the world with the evil influences of its mad philosophy,— become too formidable to be lightly insulted or injured by

public service, a change is necessary if it be but for the sake of change. This is exactly the case now. 'Tis an universal sentiment that our present system is a bad one, and that things do not go right on this account. The measure of a convention would revive the hopes of the people, and give a new direction to their passions, which may be improved in carrying points of substantial utility. The Eastern States have already pointed out this mode to Congress they ought to take the hint, and anticipate the others.

“And in future, my dear sir, two things let me recommend, as fundamental rules for the conduct of Congress: to attach the army to them by every motive,-to maintain an authority, (not domineering,) in all their measures with the States. The manner in which a thing is done, has more influence than is commonly imagined. Men are governed by opinion: this opinion is as much influenced by appearances as by realities. If a government appears to be confident of its own powers, it is the surest way to inspire the same confidence in others. If it is diffident, it may be certain there will be a still greater diffidence in others, and that its authority will not only be distrusted, controverted, but contemned.

"I wish, too, Congress would always consider, that a kindness consists as much in the manner as in the thing. The best things, done hesitatingly, and with an ill grace, lose their effect, and produce disgust rather than satisfaction or gratitude. In what Congress have at any time done for the army, they have commonly been too late. They have seemed to yield to importunity, rather than to sentiments of justice, or to a regard to the accommodation of their troops. An attention to this idea is of more importance than it may be thought. I, who have seen all the workings and progress of the present discontents, am