so extensive in the beginning as the plan supposes. Beside this, the profits of the commerce will not be so large, in proportion, after the first or second year, as during those years: neither will it be possible to increase the paper credit in the same degree. But the Bank of England is a striking example, how far this may be carried, when supported by public authority and private influence. On the other hand, a variety of secondary expedients may be invented, to enlarge the advantages of the Bank. The whole system of annuities, as practiced in England, may be engrafted upon it, with such differences as are proper to accommodate it to our circumstances. The European loan may also be converted into a European Bank, the interests of which, being interwoven with the American Bank, may engage rich individuals there in promoting and extending the plan.

Very beneficial contracts may be made between Government and the Company, for supplying the army, by which money may be saved to the public, the army better furnished, and the profits of the Bank extended.

I have confined the Bank to the space of ten years; because this will be long enough to judge of its advantages and disadvantages: and the latter may be rectified by giving it a new form. I do not suppose it will ever be discontinued; because it seems to be founded on principles that

must always operate well, and make it the interest, both of Government and the Company, to uphold it. But I suppose the plan capable of improvement, which experience will suggest.

I give one half the whole property of the Bank to the United States; because it is not only just, but desirable, to both parties. The United States contribute a great part of the stock; their authority is essential to the existence of the Bank; their credit is pledged for its support. The plan would ultimately fail, if the terms were too favourable to the Company, and too hard upon Government. It might be encumbered with a debt which it could never pay, and be obliged to take refuge in a bankruptcy. The share which the State has in the profits, will induce it to grant more ample privileges, without which the trade of the Company might often be under restrictions injurious

to its success.

It is not, perhaps, absolutely necessary that the sum subscribed should be so considerable as I have stated it, though the larger the better. It is only necessary it should be considerable enough to engage a sufficient number of the principal monied men in the scheme. But Congress must take care to proportion the advantages they give and receive.

It may be objected, that this plan will be prejudicial to trade, by making the Government a par

ty with a trading Company; which may be a temptation to arrogate exclusive privileges, and thereby fetter that spirit of enterprise and competition, on which the prosperity of commerce depends. But Congress may satisfy the jealousies on this head, by a solemn resolution not to grant exclusive privileges, which alone can make the objection valid. Large trading Companies must be beneficial to the commerce of a nation, when they are not invested with these, because they furnish a capital with which the most extensive enterprises may be undertaken. There is no doubt the establishment proposed, would be very serviceable at this juncture, merely in a commercial view ; for private adventurers are not a match for the numerous obstacles resulting from the present posture of affairs.

The present plan is the product of some reading on the subjects of commerce and finance, and of occasional reflections on our particular situation : but a want of leisure has prevented its being examined in so many lights, and digested so materially, as its importance requires. If the outlines are thought worthy of attention, and any difficulties occur which demand explanation: or if the plan be approved, and the further thoughts of the writer are desired; a letter directed to James Montague, Esquire, lodged in the post office at Morristown, will be a safe channel of any com

munications you may think proper to

an immediate answer will be given. writer has reasons which make him

make; and

Though the unwilling to

be known; if a personal conference with him should be thought material, he will endeavour to comply.

You will consider this as a hasty production, and excuse the incorrectnesses with which it abounds.

I am, Sir, very respectfully,

Your most obedient and humble servant.

HAMILTON TO WASHINGTON.

Amboy, March 17, 1780.

DEAR SIR:

I duly received your letter of the fourteenth, and shall not fail, in conjunction with General St. Clair, to attend to the military object of it. I am much obliged to your Excellency for the communication of your Southern advices. The enemy are still in the dark about their fleet and army gone that way, as we gather from the commissioners. They pretend to have little European news, though a vessel arrived two or three days since from England, after ten weeks passage. We send you some late New York papers.

The commission has been several days at an end. The enemy, as was supposed, had no idea of treat

ing on national ground. We are now in private conversation, and so far not without hopes that the liberation of our prisoners will be effected on admissible terms. Two or three days more will probably put an end to the interview. General St. Clair and Colonel Carrington, beg their respects may be presented to your Excellency.

I have the honour to be,

Very respectfully and affectionately,
Your Excellency's most ob't servant,

ALEX. HAMILTON.

HAMILTON TO BARON STEUBEN.

DEAR BARON:

May 10, 1780.

General Knox, in conversation, has observed to the General, that instead of sending to Philadelphia for the fifteen hundred arms mentioned in your letter of the sixth, and sending those here to that place to be fitted, it would be a great saving of expense, in the article of transportation, to have the bayonets and accoutrements brought on without the arms, and fitted to those now here; which can easily be done at the Park. The question is, if the arms here have no other defect than want of bayonets. The General will be glad to know what you think of General Knox's proposal. It seems to him eligible, unless there are reasons he is not acquainted with.