commerce, as it pretends to do the energies of war; or by
propelling and exciting human industry: it remains to consider, whether, in this last character, it acts as a goad or reward; and whether any more effectual, permanent, and upright mode of excitement is practicable.
Several ideas occurring here, will be postponed until the subject of banking is considered. At present, however, it is necessary to remark, that stock, created for war or commerce, will equally excite either as a goad or a reward, and that if it acts as a goad, it behooves us to consider whether industry, like bravery, may not be excited in some blotter mode.
Any species of paper stock, which is a debt upon national industry, is taxation. Taxation is not a reward. It belongs to the tyrannical class of excitements. If such excitements have a stronger influence over the human mind, than those arising from the principles of social liberty, the governments of the United States are founded in an erronieous policy. They have all conceived that industry would be better excited by justice, than by taxation; that commerce to flourish, needed only to be free; and that by freedom, the supplies of land and labour would be increased. By free and moderate government, our constitutions have expected to excite a military spirit to defend, an industrious spirit to improve, and a commercial spirit to enrich our country. Neither the monopolies of standing armies, hereditary perpetuities, or chartered currencies, were considered as the best excitements for defending, cultivating or enriching it.
A feudal or landed monopoly starved commerce, because it tended to discourage industry, by which commerce is supplied. This effect flowed from the injustice of enriching by legal monopoly without industry. A monopoly for the regulation of a paper currency, far more unexceptionable, enriches by law without industry; and in producing the same effect, discloses that it is the same principle. If this monopoly was guided by a noble order, unconnected with com-
