[Here a part of the manuscript is missing.]

which, having all the operation of money, and of a more advantageous kind than that which the lenders have parted with, will have all the efficacy of a payment. It is for this reason they are made to bear interest: and there can be no doubt, that every man will prefer a species of money which answers all the purposes of a currency, and even, when lying idle, brings in a profit to the possessor. The same consideration will prevent the lenders recalling the old paper, at the quarterly payments; because they hold a more valuable property instead of it. The interest is to be paid in specie, as a further temptation, for which a small sum will suffice. The denomination of the money is altered; because it will produce a useful illusion. Mankind are much led by sounds and appearances; and the currency having changed its name, will seem to have changed its nature.

The Bank will advance bills to the amount of two millions of pounds sterling to Congress; and, in addition to its stock, will now have a debt due it of this sum, which is to be considered as so much gained.

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Brought over, 7,075,000
To be deducted,
Drawn out of circulation, by the sale of goods imported,4,000,000
By governmental taxes, supposed to be, 1,000,000—5,000,000
————-
Remaining in circulation the fourth year, £2,075,000

This will be less than the preceding, which is occasioned by the million supposed to be drawn in by taxes.

The national debt, on this plan, will stand thus, at the end of three years:

Foreign loan,2,000,000
Domestic loan, at two millions per annum,6,000,000
Interest, at four per cent.,320,000
————-
8,320,000
Half the value of the Bank,7,900,000
————-
Balance against the United States,£420,000

We may, therefore, by means of this establishment, carry on the war three years, and only incur a debt of four hundred and twenty thousand pounds over and above the guarantee of the subscription money; which, however, is not to be paid till the end of ten years.

I have said, in one place, that abstract calculations, in questions of finance, are not to be relied on: and as the complex operations of trade are involved in the present plan, I am, myself, diffident of those flattering results which it presents at every step. I am aware how apt the imagination is to be heated in projects of this nature, and to overlook the fallacies which often lurk in first principles. But when I consider, on the other hand, that the scheme stands on the firm footing of public and private faith; that it links the interest of the State in an intimate connection with those of the rich individuals belonging to it; that it turns the wealth and influence of both into a commercial channel, for mutual benefit, which must afford advantages not to be estimated; that there is a defect of circulating medium, which this plan supplies, by a sort of creative power; converting what is so produced into a real and efficacious instrument of trade; I say, when I consider these things, and many more that might be added, I cannot forbear feeling a degree of confidence in the plan; and, at least, hoping that it is capable of being improved into something that will give relief to our finances.