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harvest, that he had scarcely a moment to spare from the substantial business of reaping."

But his mind was never wholly withdrawn from an attention to the welfare of his fellow-citizens. The important benefits which he had anticipated from an extensive system of banking, on its true principles, have been shown at an early period of his life.

Could he have succeeded in establishing a well-organized general government, this would have been effected under its powers. But his expectations had been disappointed, and it was doubtful whether the union of the states would continue. Under these circumstances he determined to introduce a local bank, under franchises to be derived from the state.

His attention appears to have been called to this subject by a friend, who, dissatisfied with the Bank of North America, proposed the establishment of a bank in NewYork.

While this was in contemplation, a plan of a land bank, of which another was the ostensible parent, but Chancellor Livingston the originator, was projected, and a petition for an exclusive charter was addressed to the legislature. "I thought it necessary," Hamilton observes in a letter to his friend, "not only with a view to your project, but for the sake of the commercial interests of the state, to start an opposition to this scheme, and took occasion to point out its absurdity and inconvenience to some of the most intelligent merchants, who presently saw matters in a proper light, and began to take measures to defeat the plan.

"The chancellor had taken so much pains with the country members, that they began to be persuaded that the land bank was the true philosopher's stone, that it was to turn all their rocks and trees into gold; and there was great reason to apprehend a majority of the legislature would have adopted his views. It became necessary to

convince the projectors themselves of the impracticability of their scheme, and to countervail the impressions they had made, by a direct application to the legislature."

To carry this plan into effect, a general meeting* of the citizens of New-York was convened, at which McDougal presided, and half a million of dollars were subscribed.

The constitution of the Bank of New-York, framed by Hamilton, was adopted, and he was chosen one of its directors, was chairman of the committee to prepare its bylaws, and was occupied in devising a mode for receiving and paying out gold, which had been done elsewhere by weighing in quantities; a practice attended with many evils, and for which, in the absence of a national coinage, it was difficult to find a substitute.†

The abuses of the banking system of this country have rendered it an object of prejudice; but he has thought little of its infant condition, who cannot trace to these institutions the most important public benefits.

Contemporaneously with them may be remarked the introduction of those habits of punctuality, which, by giving stability to domestic, and, as a consequence, to foreign credit, were highly instrumental in raising the character of the nation and advancing its commercial prosperity. And in the same degree in which can be seen the early introduction into the different states of an enlightened system of banking on commercial principles, in the same ratio the relative advances of those states may be traced. A letter from La Fayette of this period invites attention

*February 26, 1784.

+ The rates for the value of each foreign coin in circulation were fixed by the bank. A person was employed to regulate each piece according to the standard weight; and an allowance or deduction of three per cent. was made on each gold piece, as it exceeded or fell short of that value. To give effect to this arrangement, the chamber of commerce, on the 4th of May, 1784, adopted a regulation fixing a tariff of values

to another subject. After mentioning an intended visit to the Prussian and Austrian armies, he wrote:-"In one of your gazettes, I find an association against the slavery of negroes, which seems to be worded in such a way as to give no offence to the moderate men in the southern states. As I have ever been partial to my brethren of that colour, I wish, if you are in the society, you would move, in your ɔwn name, for my being admitted on the list."

This association, emanating from one previously formed in Philadelphia, was composed of individuals, of whom the most active were members of the society of Friends. At its second meeting Jay was chosen president, and a committee raised, of which Hamilton was chairman, to devise a system for effecting its objects.

Believing that the influence of such an example would be auspicious, he proposed a resolution that every member of the society should manumit his own slaves.

He never owned a slave; but on the contrary, having learned that a domestic whom he had hired was about to be sold by her master, he immediately purchased her freedom.

Others found the theory of humanity lighter than the practice. This resolution was debated and deferred. Disgusted with the pretensions of persons who were unwilling to make so small a sacrifice, he discontinued his attendance at these meetings.

The condition of New-York at this time is summarily shown in a letter from him to a friend. "Discrimination bills, partial taxes, schemes to engross public property in the hands of those who have present power, to banish the real wealth of the state, and substitute paper bubbles, are the only dishes that suit the public palate at this time."

While the sphere of his political usefulness was limited by such counsels, Hamilton kept aloof from party contests with the secondary men, who succeeded to the great acVOL. III-4

tors in the revolution; and aware that a strong necessity could alone change the unhappy tendency of the public mind, he was content to pause, and, as he beautifully observed, “to erect a temple to time, to see what would be the event of the American drama."

CHAPTER XXXIX.

THE failure of the imperfect union of the States either "to provide" prospectively "for the common defence," or "to establish justice," has been shown in the preceding narrative. Its utter incompetency "to promote the general welfare," by the protection of the national industry, and of national rights, or "to ensure domestic tranquillity;" thus failing, in every essential particular, "to secure" to the American people "the blessings of liberty," will now be seen.

The policy to be pursued in their intercourse with other nations would, it may be supposed, early engage the attention of a people by position and habit necessarily commercial. Hence it is perceived that before the declaration of independence, Congress had deliberated upon that subject.

The result of these deliberations was such as was to have been expected under their circumstances. It was a resolution to open the ports of the colonies to the world, excepting the inhabitants, productions, and vessels of Great Britain, and East India tea. This purpose of placing each nation on the footing of "natives," it has been seen, was proposed to France, but was relinquished, and that of the "most favored nation" adopted. This was also the basis of the treaties with Sweden and the Netherlands; in the latter of which, provisions were made defining the state of block

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