13. Those who talk of the bankruptcy of the United States, are of two descriptions: 1. Strangers who do not understand the nature and history of our paper money. 2. Holders of that paper money who do not wish that the world should understand it. Thus, when in March, 1780, the paper money being so far depreciated that forty dollars of it would purchase only one silver dollar, Congress endeavored to correct the progress of that depreciation by declaring they would emit no more, and would redeem what was in circulation at the rate of one dollar of silver for forty of paper; this was called by the brokers in paper money, a bankruptcy. Yet these very people who had only given one dollar's worth of provisions, of manufactures, or perhaps of silver, for their forty dollars, were displeased that they could not in a moment multiply their silver into forty. If it were decided that the United States should pay a silver dollar for every paper dollar they emitted, I am of opinion (conjecturing from loose data of my memory only as to the amount and true worth of the sums emitted by Congress and by the several States) that a debt, which in its just amount is not more, perhaps, than six millions of dollars, would amount up to four hundred millions, and instead of assessing every inhabitant with a debt of about two dollars, would fix on him thirty guineas, which is considerably more than the national debt of England affixes on each of its inhabitants, and would make a bankruptcy where there is none. The real just debts of the United States, which were stated under the third query, will be easily paid by the sale of their lands, which were ceded on the fundamental condition of being applied as a sinking fund for this purpose.
14. The whole army of the United States was disbanded at the close of the war. A few guards only were engaged for their magazines. Lately they have enlisted some two or three regiments to garrison the posts along the Northern boundary of the United States.
16. The United States do not own, at present, a single vessel of war; nor has Congress entered into any resolution on that subject.
17. I conjecture there are six hundred and fifty thousand negroes in the five southernmost States, and not fifty thousand in the rest. In most of these latter, effectual measures have been taken for their future emancipation. In the former, nothing is done towards that. The disposition to emancipate them is strongest in Virginia. Those who desire it, form, as yet, the minority of the whole State, but it bears a respectable portion to the whole in numbers and weight of character, and it is continually recruiting by the addition of nearly the whole of the young men as fast as they come into public life. I flatter myself it will take place there at some period of time not very distant. In Maryland and North Carolina a very few are disposed to emancipate. In South Carolina and Georgia, not the smallest symptom of it, but, on the contrary, these two States, and North Carolina, continue importations of negroes. These have been long prohibited in all the other States.
18. In Virginia, where a great proportion of the legislature consider the constitution but as other acts of legislation, laws have been frequently passed which controlled its effects. I have not heard that in the other States they have ever infringed their constitution, and I suppose they have not done it, as the Judges would consider any law as void which was contrary to the constitution. Pennsylvania is divided into two parties very nearly equal, the one desiring to change the constitution, the other opposing a change. In Virginia there is a part of the State which considers the act for organizing their government as a constitution, and are content to let it remain; there is another part which considers it only as an ordinary act of the legislature, who, therefore, wish to form a real constitution, correcting some defects which have been observed in the act now in force. Most of the young people as they come into office arrange themselves on this side, and I think they will prevail ere long. But there are no heats on this account. I do not know that any of the other States propose to change their constitution.
19. I have heard of no malversations in office which have been of any consequence, unless we consider as such some factious transactions in the Pennsylvania Assembly; or some acts of the Virginia Assembly which have been contrary to their constitution. The causes of these were explained in the preceding article.
20. Broils among the States may happen in the following ways: 1. A State may be embroiled with the other twelve by not complying with the lawful requisitions of Congress. 2. Two States may differ about their boundaries. But the method of settling these is fixed by the confederation, and most of the States which have any differences of this kind, are submitting them to this mode of determination, and there is no danger of opposition to the decree by any State. The individuals interested may complain, but this can produce no difficulty. 3. Other contestations may arise between two States, such as pecuniary demands, affrays among their citizens, and whatever else may arise between any two nations, with respect to these, there are two opinions. One that they are to be decided according to the ninth article of the confederation, which says that Congress shall be the last resort in all differences between two or more States, concerning boundary jurisdiction, or any other cause whatever; and prescribes the mode of decision, and the weight of reason is undoubtedly in favor of this opinion, yet there are some who question it.
It has been often said that the decisions of Congress are impotent because the confederation provides no compulsory power. But when two or more nations enter into compact, it is not usual for them to say what shall be done to the party who infringes it. Decency forbids this, and it is as unnecessary as indecent, because the right of compulsion naturally results to the party injured by the breach. When any one State in the American Union refuses obedience to the confederation by which they have bound themselves, the rest have a natural right to compel them to obedience. Congress would probably exercise long patience before they would recur to force; but if the case ultimately required it, they would use that recurrence. Should this case ever arise, they will probably coerce by a naval force, as being more easy, less dangerous to liberty, and less likely to produce much bloodshed.
It has been said, too, that our governments, both federal and particular, want energy; that it is difficult to restrain both individuals and States from committing wrong. This is true, and it is an inconvenience. On the other hand, that energy which absolute governments derive from an armed force, which is the effect of the bayonet constantly held at the breast of every citizen, and which resembles very much the stillness of the grave, must be admitted also to have its inconveniences. We weigh the two together, and like best to submit to the former. Compare the number of wrongs committed with impunity by citizens among us with those committed by the sovereign in other countries, and the last will be found most numerous, most oppressive on the mind, and most degrading of the dignity of man.
22. The States differed very much in their proceedings as to British property, and I am unable to give the details. In Virginia, the sums sequestered in the treasury remain precisely as they did at the conclusion of the peace. The British having refused to make satisfaction for the slaves they carried away, contrary to the treaty of peace, and to deliver up the ports within our limits, the execution of that treaty is in some degree suspended. Individuals, however, are paying off their debts to British subjects, and the laws even permit the latter to recover them judicially. But as the amount of these debts are twenty or thirty times the amount of all the money in circulation in that State, the same laws permit the debtor to pay his debts in seven equal and annual payments.