this were allowed, and perhaps public convenience requires it, each office ought to be prohibited from taking the paper of any such bank that should in any case fail to redeem its paper on demand as above directed, nor should it be received unless the directors of such bank would guarantee to the United States office such daily redemption of its paper. This provision for taking the specie bank paper of the eight cities in which the United States Branch Treasury offices are situated, would be convenient to the people and the Treasury. We make these suggestions for the consideration of the people and of American statesmen of all parties. This project presents a neutral ground on which all may unite and finally settle, upon an immovable basis, our financial system. A settled and unchanging financial policy is essential to national prosperity. As the friends of these various plans of finance are all honestly seeking for some permanent, stable and improved financial system, we trust that the good points of the several projects may be combined according to the dictates of experience and wisdom in some mode ensuring a permanent system.

A more simple plan is suggested by a gentleman, for whose opinions we have great respect. He proposes that Treasury notes, not bearing interest, to fifteen or twenty millions be paid out as

at present to all persons willing to receive them, and that they be received for all government debts and dues, and that no new offices be created. This project is recommended by its simplicity and

economy.

SECTION FIFTH. CREDIT OF THE STATES.

The next inquiry is how far the United States government is bound to maintain the credit of the twenty-six states of the Union, as well as that of the republic. The debts of the states incurred for canals, rail-roads and other objects, amount to about two hundred millions of dollars. The value of these debts has been added to the country by their expenditure. The people of the United States are too moral and too well acquainted with the truth of the ancient maxim that honesty is the best policy, to think for a moment of the infamous doctrine of repudiation. We have seen Spain and other leading monarchies of Europe repudiate their debts, but these unworthy precedents the states of our Union will never follow.

As much of the debt of the states is owned in England, and as the interest has, for about two years, been unpaid, state credit has fallen and with it for a time that of the United States. As the states represented in the Senate are an intimate component part of the national government, the

states must be deemed a branch of the Union. By the Constitution, as originally adopted, a state might be sued in the Supreme Court of the United States by our own citizens or by subjects of a foreign state, on its obligations due them. By the 11th Article of the Amendments, this power as to private citizens of the republic and citizens or subjects of a foreign state, is taken away from the judiciary, so that the states are left, like the United States to their moral accountability as to indi. vidual citizens and foreigners. Still a state may be sued by a foreign state. Upon principles of justice and equity the obligation of a state to pay its debts is the same as that of the Union. As the Union has deprived individual foreigners and our citizens of all right legally to coerce payment of debts by the states, some affirm there is a just obligation resting on the United States to see the pecuniary faith of the states maintained. If foreigners, say they, ask for a legal remedy to collect their debts against states as well as individuals and are denied, upon what principle can the United States avoid being held morally responsible for the wrong? The answer is that the national government treats foreigners and citizens alike, and we have shown in part second that there is therefore no violation of international obligation. But it must be admitted that this state of things is a re

proach to the nation, which every true friend of the republic and of free representative government desires to see speedily removed. We trust that this dishonor may be soon wiped away, and that the star-spangled banner may float aloft forever an ensign of freedom and honor. To the honesty of the States and the cheering encouragement of our entire people we look for relief.

SECTION SIXTH. DIRECT TAXATION.

By the Constitution Congress can lay direct taxes to provide for the common defence and the general welfare of the republic. But such taxes will not be patiently borne by the people except in time of of war or pressing necessity. And as long as the expenses of the nation can be defrayed out of the customs, no statesman will probably be found to needlessly lay a direct tax. When any State, or the United States, are obliged to levy direct taxes, if the necessity of so doing is apparent the people will cheerfully pay them. Such a necessity now exists with respect to the indebted States, but not as to the United States. The United States can have no occasion to levy direct taxes in time of peace, and none ought to be levied except in time of war, or to pay off the expenses of wars of selfdefence.

Free trade is the doctrine of this country, but while France and England maintain high tariffs on American imports into those countries, much as we desire free commerce, we are forced to defend our American industry by levying on foreign products all the money necessary to an economical administration. By this policy we shut out the foreign products, unless they pay such a duty that our agricultural, mechanical and manufacturing productions are enabled in the home market to enter into competition with them. The effect of opening our ports duty free is obvious. The multitudes of poor in France, Britain and Ireland are so great that labor is one half less there than with us. Of course they could supply our markets to the exclusion of our own people, if our tariff was destroyed. The necessary consequence would be that our annual labor, now worth eight hundred millions of dollars, would fall to, say four hundred; which loss in ten years would be four thousand millions, a sum equal to the present aggregate property of the United States. Such a great reduction of the means of living would be exhibited in a poorly fed, poorly clothed, and badly educated people. We should soon have a few very rich and many very poor. The right performance of this duty