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By Root 1793 0

sufficiently attended to, or provided for, in forming the national Compact. Domestic Loans are also useful from the farther Consideration that as Taxes fall heavy on the lower Orders of a Community, the Releif obtained for them by such Loans, more than counterballances the Loss sustained by those who would have borrowed Money to extend their Commerce or Tillage. Neither is it a refinement to observe, that since a Plenty of Money and consequent Ease of obtaining it, induce Men to engage in Speculations which are often unprofitable, the Check which these receive is not injurious, while the Releif obtained for the Poor is highly beneficial.

By making foreign Loans, the Community (as such) receive the same extensive Benefits which one Individual does in borrowing of another. This Country was always in the Practice of making such Loans. The Merchants in Europe trusted those of America. The American Merchants trusted the Country Storekeepers; and they the People at large. This advance of Credit may be Stated at not less than twenty Million of Dollars. And the Want of that Credit is one principle Reason of those Usurious Contracts mentioned above. These have been checked by the Institution of the Bank, but the Funds of that Corporation, not permitting those extensive Advances which the Views of different People require, the Price given for particular Accommodations of Money continues to be enormous; and that again Shews, that to make domestic Loans would be difficult if not impracticable. The Merchants not having now that extensive Credit in Europe which they formerly had, the obtaining such Credit by the Government, becomes in some Sort necessary. But there remains an Objection with many against foreign Loans, which (tho it arises from a superficial View of the Subject) has no little Influence. This is, that the Interest will form a Balance of Trade against us, and drain the Country of Specie; which is only saying in other Words, that it would be more convenient to receive Money as a Present, than as a Loan. For the Advantages derived by the Loan exist, notwithstanding the Payment of Interest. To shew this more clearly, a Case may be Stated which in this City is very familiar. An Island in the Delaware overflowed at high Water has, for a given Sum, suppose a thousand Pounds, been banked in, drained and made to produce by the Hay sold from it at Philadelphia a considerable Sum annually, for Instance two hundred Pounds. If the owner of such an Island had borrowed (in Philadelphia) the thousand Pounds to improve it, and given six per Cent Interest, he would have gained a net Revenue of one hundred and forty Pounds. This certainly would not be a Balance of Trade against his Island, nor the draining it of Specie. He would gain considerably, and the City of Philadelphia also would gain, by bringing to Market an increased Quantity of a necessary Article. In like manner, Money lent by the City of Amsterdam to clear the Forests of America, would be beneficial to both. Draining Marshes and bringing Forests under Culture are beneficial to the whole human Race, but most so to the Proprietor. But at any Rate, in a Country and in a situation like ours, to lighten the Weight of present Burthens (by Loans) must be good Policy. For as the Governments acquire more Stability, and the People more wealth, the former will be able to raise, and the latter to pay much greater Sums than can at present be expected.

What has been said on the general nature and Benefit of public Loans, as well as their particular Utility to this Country, contains more of Detail than is necessary for the United States in Congress, tho perhaps not enough for many of those to whose consideration this Subject must be Submitted. It may seem Superfluous to add that Credit is necessary to the obtaining of Loans. But among the many extraordinary Conceptions which have been produced, during the Present Revolution, it is neither the least prevalent, nor the least pernicious, that Foreigners will trust us with Millions, while our own Citizens will not trust us with a Shilling. Such