The general effect of the depreciation among the inhabitants of the States has been this, that it has operated as a gradual tax upon them, their business has been done and paid for by the paper money, and every man has paid his share of the tax according to the time he retained any of the money in his hands, and to the depreciation within that time. Thus it has proved a tax on money, a kind of property very difficult to be taxed in any other mode; and it has fallen more equally than many other taxes, as those people paid most, who, being richest, had most money passing through their hands.

With regard to the paper money or bills borrowed by the Congress, it appears by the above account to be under two different descriptions.

First, the quantity of bills borrowed before the depreciation, the interest of which in silver was to be and is paid. The principal of this sum is considered as equal in value to so many dollars of silver as were borrowed in paper, and will be paid in silver accordingly.

Secondly, the quantities of bills borrowed in different stages of the depreciation down to the present time. These sums are, by a resolution of Congress, to be repaid in silver according to the value they were of in silver at the time they were lent; and the interest is to be paid at the same rate. Thus those lenders have their property secured from the loss by depreciation subsequent to the time of their loan.

All the inhabitants are satisfied and pleased with this arrangement, their public debt being by this means reduced to a small sum. And the new paper money, which bears interest, and for the payment of which solid funds are provided, is actually in credit equal to If any persons living in distant countries have, through their absence from their property in America, suffered loss by not having it timely fixed in the several loans above mentioned, it is not doubted but that, upon an application to Congress stating the case, they will meet with redress.

The real money used in the United States is French, Spanish, Portuguese, and English coins, gold and silver. The most common is Spanish milled dollars, worth five livres five sols tournois.

The nominal money is generally paper, reckoned in pounds, shillings, and pence, of different value in the different States when compared with real money, and that value often changing, so that nothing certain can be said of it. Everywhere the accounts are kept in the nominal pounds, shillings, and pence, the pound containing twenty shillings, and the shilling twelve pence, whatever may be the real value.

Bills of exchange are frequently drawn on Europe; the rate of exchange differing in different States, and fluctuating in the same State, occasioned by the greater or less plenty of bills or of demand for others; they are commonly drawn at thirty days' sight.

The usages in buying and selling merchandises, are much the same as in Europe, except that in Virginia the planter carries his tobacco to magazines, where it is inspected by officers, who ascertain its quality and give receipts expressing the quantity. The merchants receive these receipts in payment for goods, and afterwards draw the tobacco out of the magazines for exportation. Weights and measures are uniform in all the States, following the standard of Great Britain.

Money is lent either upon bond or on mortgage, payable in a year with interest. The interest differs in the different States from five to seven per cent.

Goods are generally imported on eighteen months' credit from Europe, sold in the country at twelve months' credit.

Billets or promissory notes, payable to the creditor or order, are in use, and demandable when due, as well as accepted bills of exchange, without any days of grace, but by particular favor.

COMPARISON

OF GREAT BRITAIN AND THE UNITED STATES

IN REGARD TO

THE BASIS OF CREDIT IN THE TWO COUNTRIES.

This paper was written in the year 1777, while Franklin was one of the Commissioners from the United States in France. The object was to produce in Europe a just impression of the resources and political condition and prospects of the United States, with the view of encouraging governments and private capitalists to loan money to the American Congress. It was translated into various languages and widely circulated. - EDITOR.

In borrowing money, a man's credit depends on some, or all, of the following particulars.

First. His known conduct respecting former loans. and his punctuality in discharging them. Secondly. His industry.ni di Thirdly. His frugality, music

Fourthly. The amount and the certainty of his income, and, the freedom of his estate from the incumbrances of prior debts.

Fifthly. His well-founded prospects of greater future ability, by the improvement of his estate in value, and by aids from others.

Sixthly. His known prudence in managing his general affairs, and the advantage they will probably receive from the loan which he desires.

Seventhly. His known probity and honest character, manifested by his voluntary discharge of debts, which he could not have been legally compelled to pay. The circumstances, which give credit to an individual, ought to have, and will have, their weight upon the lenders of money to public bodies or nations. If then we consider and compare Britain and America in these several particulars, upon the question, "To which is it safest to lend money?" we shall find,

1. Respecting former loans, that America, who borrowed ten millions during the last war, for the maintenance of her army of twenty-five thousand men and other charges, had faithfully discharged and paid that debt, and all her other debts, in 1772. Whereas Britain, during those ten years of peace and profitable commerce, had made little or no reduction of her debt; but on the contrary, from time to time, diminished the hopes of her creditors by a wanton diversion and misapplication of the sinking fund destined for discharging it.

Hence the embarrassments of private fortunes, and the daily bankruptcies, arising from a universal fondness for appearance and expensive pleasures; and hence, in some degree, the mismanagement of public business; for habits of business, and ability in it, are acquired only by practice; an 1, where universal dissipation and the perpetual pursuit of amusement are the mode, the youth educated in it can rarely afterwards acquire that patient attention and close application to affairs, which are so necessary to a statesman charged with the care of national welfare. Hence their frequent errors in policy, and hence the weariness at public councils, and backwardness in going to them, the constant unwillingness to engage in any measure that requires thought and consideration, and the readiness for postponing every new proposition; which postponing is therefore the only part of business they come to be expert in, an expertness produced necessarily by so much daily practice. Whereas, in America, men bred to close employment in their private affairs attend with ease to those of the public when engaged in them, and nothing fails through negligence.

3. Respecting frugality; the manner of living in America is more simple and less expensive than in England; plain tables, plain clothing, and plain furniture in houses prevail, with few carriages of pleasure. There an expensive appearance hurts credit, and is avoided; in England it is often assumed to gain credit, and continued to ruin. Respecting public affairs, the difference is still greater. In England the salaries of officers and emoluments of office are enormous. The King has a million sterling per annum, and yet cannot maintain his family free of debt; secretaries of state, lords of the treasury, admiralty, &c., have vast appointments; an auditor of the exchequer has sixpence in the pound,