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 them; 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 further thoughts, I will endeavor to give them more form and particularity. 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 a 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 air of 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 member of Congress, whose feelings may be sore at the prevailing clamors; 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 of 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,
Your most obedient servant,
A. Hamilton.