these institutions, collectively and indiscriminately, the odious character of aristocracies. But names alter not things; or, as Mr. Taylor himself expresses it, "names constitute nothing." There are no qualities in the banking or funding systems, as such, which possess any of the evil properties ascribed to aristocracies;unless, indeed, their being means of creating and diffusing wealth in a nation, by the aid they afford to credit, is to be considered as an evil: and this will scarcely be contended by men of liberal minds, having a competent knowledge of the subject. Would Mr. Taylor prohibit a fair and honourable acquisition of wealth by individuals, or associations of individuals, in a community, because he supposes that wealth contaminates its possessor with aristocratical principles? We presume he could have no serious intention of proceeding so far; and yet, it is evident, his doctrines tend to the support of a system founded in this extreme of political folly.

The arguments adduced by Mr. Taylor against banks and funding, are mostly founded on false premises. They are such as have been often refuted by the ablest writers, and those best versed in political arithmetic. In fabricating objections to those objects, much of the reasoning he has employed for the purpose of destroying all belief in their usefulness, is of that species which is drawn from an abuse of the principles on which they are usually established. We mean not to advocate any abuse of either the banking or funding systems; but to contend, against such unfounded dogmas as Mr. Taylor's, that public banks and a funded national debt, confined within reasonable limits in their operations and extent, and judiciously managed, are foundations upon which, either separately or in connexion with each other, highly beneficial systems of credit, public and private, are erected by means commodiously practicable.

We are not advocates for a burthensome national debt. We consider it a grievous evil; as we do war, also, which produces it, or oppressive taxes, which are its necessary consequence. But, inasmuch as war is sometimes unavoidable, so are these its appendages: And when the administrators of the government of a nation have contracted a debt with individuals, on the public account, the national credit requires that it should be faithfully paid,

according to the terms of the contract. The public faith is plighted, for its fulfilment, and moral honesty imperiously demands the performance of so solemn an obligation.

What then-if these sentiments be just-must we be compelled to think of Mr. Taylor's opinions, on this head? The reader will judge for himself, when he shall have read the following passage, quoted from our author's “ Inquiry.”

"A spell," says he, " is put upon our understandings by the words 'public faith and national credit,' which fascinates us into an opinion, that fraud, corruption, and oppression, constitute national credit-and debt and slavery, public faith."-p. 61.

The great importance of banks to commerce, and the interests connected with it, have been practically shown, in the examples of Genoa, Venice, Holland, and England, as well as some other commercial states; more especially, by the two last mentioned. Profiting by those examples, the independent government of our own country early manifested its sense of the utility of national banking. The foundation of a public bank was first laid, here, during the war of the revolution, under the sanction of the old congress.

In less than two years after the organization of our present federal government, the late bank of the United States was erected into a corporation by an act of congress; and the preamble of that law is in these words:-" Whereas it is conceived, that the establishment of a bank for the United States, upon a foundation sufficiently extensive to answer the purposes intended thereby, and at the same time upon the principles which afford adequate security for an upright and prudent administration thereof, will be very conducive to the successful conducting of the national finances; will tend to give facility to the obtaining of loans for the use of the government, in sudden emergencies; and will be productive of considerable advantages to trade and industry in general: Therefore, be it enacted," &c.

The legitimate objects of this institution, as expressed in the preamble to its charter, were fully experienced both by the government and individuals, during twenty years of national prosperity. But the term of its incorporation having expired on the fourth day of March, in the year 1811, the enemies of that ably and faith

fully conducted institution succeeded, by various artifices, in preventing a renewal of its charter: and it is worthy of remark, that Mr. Taylor's "Inquiry," so hostile to banks throughout, though not published until the year 1814, was written (as the author tells us) before the 17th of November, 1811.

The war which, unfortunately, soon after supervened, with the financial and commercial distresses of the country, consequent thereon, soon convinced many speculative and timid men of the error into which they had been seduced, concerning banks, by such reasoners as Mr. Taylor. Hence we have recently seen the re-establishment of an efficient national bank, under the auspices of an administration, the purity of whose motives Mr. Taylor will not, perhaps, be disposed to arraign.

With such facts, then, before us as these, may we not askwhether the United States have not unequivocally testified their approbation of public banks? and also, whether they do not, as unquestionably, admit, that important advantages result to the public interests, by connecting, in some measure, the operations of a national bank with the financial concerns of the country?

A celebrated patriot, philosopher, and divine, Dr. Berkeley, asks this question in his "Querist:" " Whether the credit of the public funds be not a mine of gold to England; and whether any step that should lessen this credit ought not to be dreaded?" The very ingenious author of an anonymous work, entitled " Characteristics of the present political state of Great Britain,” (a second edition of which was published in London, in 1758) makes the following reflection on the bishop's query:" How different is this from the language of the "Three Essays," the author of which, with an unusual vehemence, calls upon the landed gentlemen, upon the farmers, and upon the manufacturers, to put an end to our paper-credit altogether!" How similar to this, i the hostility evinced by Mr. Taylor against the funding system of his country! In the commencement and progress of the American revolution, the principles and policy of the English whigs were pursued. Yet, says our author, "the whig party was made strong in England, by the paper stock with which it was enriched and united. In spite of its principles, it was forced by its regimen of this legal

wealth to enslave the nation, by poisoning the principles it professed to nurture. Hence a modern whig may believe, that it would have been better for the English nation, had success followed the landed tories, who would have strangled the paper-system of the whigs in its infancy."-p. 570.

"Credit of some kind or other is necessary, says the author of the Characteristics,' wherever there is much trade."-" In nations where there is great simplicity of manners and little trade," continues this author, "there is little necessity either of borrowing, or of buying upon credit. But as commerce is enlarged, credit must be enlarged in proportion. There can be little trade where every one buys for ready money. If, therefore, we would increase our trade, we must submit to the disadvantages, or rather natural consequences, arising from credit; since credit is absolutely necessary to an extensive commerce. In whatever manner this credit is given, it may be said to come in the place of money, to answer for it, or to supply the want of it. It may be reckoned money, and is truly a kind of money.”

"Besides the credit given by private dealers one to another, and the advantages arising from such credit, equal or greater advantages may be gained by a more regular and public credit, given by banks under proper regulations, and established by proper authority."

Further, says the same author: "Banks, settled by public authority under right regulations, continually increase the current species, by issuing notes which circulate as money. By giving credit, they furnish men of substance with the means of giving greater employment to the industrious, and enable merchants to carry on a more extensive trade."

Although banks had no existence in this country while in its colonial state, a paper currency was early resorted to, in the principal colonies, to supply the deficiency of a sufficient quantity of the precious metals to answer the purposes of a circulating medium. The principle upon which a paper credit was instituted in Pennsylvania, was analogous to that of a land-bank. The paper bills of credit were emitted under the authority of the legislature, through the medium of a loan-office: they were lent to

landed proprietors, on the security of their lands; and were repayable, with interest, in small annual instalments or portions. This paper system was introduced into the governmental policy of Pennsylvania nearly a century ago. It was continued during the long period of seventy years, of which, seventeen were under the independent government of the state.

This admirable institution, which greatly contributed to the early prosperity of Pennsylvania, bears strong testimony in favour of a well-regulated paper credit. Almost half a century's experience of its effects in the nature of a bank, induced the late governor Pownal to mention it in the following terms of eulogy:— "I will venture to say, that there never was a wiser or a better measure; never one better calculated to serve the uses of an increasing country; that there never was a measure more steadily pursued, or more faithfully executed, for forty years together, than the loan-office in Pennsylvania, formed and administered by the assembly of that province." (See his work on the Administration of the Colonies, published between fifty and sixty years since.)

So sensible were the people of Pennsylvania of the good ten dency of the loan-office system of paper-credit, after seventy years experience of its effects, that, when the bank of Pennsylvania was erected, in the year 1793, with a capital of three millions of dollars, provision was made by law for engrafting upon it a loan-office, to the amount of one-sixth part of that sum. The act to incorporate that bank, made it obligatory on them to lend half a million of dollars, at the legal rate of interest, to the commonwealth, for the purpose of establishing a loan-office; to be paid by the borrowers in ten annual instalments. Accordingly, an act for erecting a loan-office for the sum of five hundred thousand dollars, was passed within a fortnight after.

This was, however, the last loan-office law enacted in Pennsylvania. It was repealed about a year afterwards; the establishment of banks was gradually introduced into the interior districts of the country; and it was expected, that these inland banks would, in a great degree, supply the useful purposes of a loanoffice, by lending to landholders and farmers in such manner, as