Rook ■ \/<r^A 
 
 PRESENTED BY 
 
 \9.--- 
 
[third STEREOTYrK EDITION,] 
 
 A 
 
 TREATISE 
 
 ON 
 
 CIVIL POLITY 
 
 AND 
 
 POLITICAL ECONOMY: 
 
 WITH 
 
 AN APPENDIX, 
 
 CONTAINING 
 
 A BRIEF ACCOUNT OF THE POWERS, DUTIES, AND 
 
 SALARIES, OF NATIONAL, STATE, COUNTY 
 
 AND TOWN OFFICERS. 
 
 FOR THE USE OF SCHOOLS AND ACADEMIES. 
 
 BY MARCIUS WILLSOJ^. 
 
 NEW YORK: 
 WILLIAM K. CORNWELL, 
 
 95 BEAVER. STREET. 
 
 1845. 
 

 Entered according to act of Congress, in the year 18S8, bj 
 J. Orville Taylor, in the Clerk's Office of the District Court 
 of the United States for the Southern District of New -York. 
 
 Gift 
 Judge and Mrs. Isaac R.HHt 
 July 3, 1933 
 
 Stereotypes 
 
 BY Smith 
 
 AND Wright, 
 
 
 
 216 William St. 
 
 N. 
 
 Y. 
 
 & Seed Pri 
 
 
 
 
 
 Piercy 
 
 nters, 
 
 
 
 
 
 9 Spruce 
 
 Street. 
 
 
 
 
 
 . .A 
 
 
 r<^ 
 
PREFACE. 
 
 TiiE object of the writer in compiling the following work, has 
 been to prepare a book that may be read with profit by all, but 
 principally to afford a useful and long-needed text-book for high 
 schools and academies. The subjects here treated have too 
 long been considered beyond the pale of a common education, 
 and as belonging exclusively to the pursuits of literary and pro- 
 fessional men ; and it is but lately that they have been intro 
 duced into a few of our colleges and higher seminaries of learn- 
 ing. 
 
 Why subjects of such paramount importance to American cit- 
 izens — subjects which explain the theory, principles, and practi- 
 cal operation of our republican institutions — and the nature, ori- 
 gin, and principles of national wealth, should have been so long 
 neglected by the great mass of those who are so obviously inter- 
 ested in an intimate acquaintance with them, can be explained 
 only by the supposition that they have reflected too little upon 
 the objects of these studies, and consequently have remained un- 
 aware of their importance. Otherwise, their real utility would 
 long since have placed them among the first studies in a course 
 of popular education. 
 
 The most important knowledge for an individual to acquire, is 
 such as will best enable him honorably and usefully to fill the 
 station which by birlh or fortune he is destined to occupy. — 
 Having adopted a new system of government, and assumed a new 
 station in the political world, if our republican institutions are 
 v< >rthy of being preserved by us, and transmitted unimpaired to 
 
IV PREFACE. 
 
 posterity, we should, as a people, strive to acquire that know- 
 ledge which best befits our station, that we may honorably and 
 faithfully fulfil those duties which devolve upon us. 
 
 As our government depends directly upon the people for its 
 support and preservation, it is idle to suppose that they will 
 feel a very ardent attachment for, or prove very able supporters 
 of a system of whose principles they are ignorant ; but while 
 their opinions, although correct, are founded on ignorance, they 
 will ever be liable to be led astray by the wild theories and idle 
 epeculations so prevalent in a country where public opinion is the 
 ultimate tribunal of appeal. There is scarcely a theory, how- 
 ever extravagant or absurd, that will not find supporters either 
 among the ignorant or the selfish and designing ; and if. public 
 opinion be unenlightened, there is no antidote beyond it that can 
 save us from the evils of any destructive, disorganizing, popular 
 delusion. 
 
 Believing that our form of government is the best ever adopted 
 for an enlightened people, and that if they understand its princi- 
 pies they will value it too highly to desire a change to any of the 
 systems which have preceded it, or to any hitherto untried ex- 
 periment, there seems to be nothing wanting to insure its perpe- 
 tuity but a more general and intimate knowledge of its princi- 
 ples and practical operation. The importance and necessity of 
 such knowledge are not confined to any one class or portion of 
 community, but extend to every American citizen, whatever his 
 calling or profession. 
 
 To afford such instruction, that portion of the following work 
 which treats of Political Knowledge and Constitutional Law has 
 been written. It is designed to give a concise but comprehen- 
 sive exposition of the elementary principles of those sciences ; 
 and it is believed to be written in so plain and familiar a manner, 
 that any one, who will, can understand it. 
 
 Several commentaries and expositions of the Constitution have 
 already appeared, but most of them have been designed for the 
 reading of the higher classes in colleges, or for professional men, 
 and are not well adapted to the use of schools. Those writings 
 
PREFACEi»' V 
 
 to which the author is principally indebted for the materials of 
 that portion of the following work which treats of the Constitu. 
 tion, are the Commentaries of Chancellor Kent and Chief Justice 
 Story, Gordon's Digest of the Laws of the United States, Bay- 
 ard's andDuer's Expositions of the Constitution, and Mansfield's 
 Political Grammar. 
 
 The author claims little originality for this portion of his 
 work, other than for the manner in which the subject is illus- 
 trated. His design has been to compile a work that will be use- 
 ful, and in following out his plan, he has not hesitated to avail 
 himself of the aid afforded by the writings of others. 
 
 The study of Political Economy is beginning to receive that 
 attention from the friends of popular education which its impor- 
 tance demands. It is now introduced into most of our colleges 
 and schools of a higher order, but, as yet, most of the text-books 
 used are too voluminous to be generally adopted in high schools 
 and academies. To supply the want of such a work, the "Ele- 
 ments OF Political Economy" have been written, in which the 
 principles of that science are familiarly explained. 
 • In the compilation of this portion of his work, the author has 
 principally consulted the writings of Adam Smith, Mr. Say, and 
 the late excellent work of President Wayland. The first twenty- 
 three pages, ending with " Protective Duties," are little more 
 than an abridgment of the first one hundred and forty pages of 
 Wayland. It has been the aim of the writer to avoid all repeti- 
 tion, and yet to illustrate his subject in as concise and simple a 
 manner as possible. The remainder of the work, both in man- 
 ner and matter, has more claim to originality ; but it is believed 
 that the principles attempted to be established and illustrated, 
 are the same with those advanced by the principal political econo- 
 mists of the present day. 
 
 h\ Most of those principles, which are now considered erroneous, 
 but which present some claim to our attention on account of 
 their adoption by the earlier writers on Political Economy, have 
 been adverted to chiefly in the notes which accompany this work. 
 In a work so limited as the present, which professes simply to 
 
 1» 
 
Vl PREFACE. 
 
 inetiiodize and illustrate obvious and first principles, it is thought 
 the writer's time would be mis-spent in combating erroneous 
 theories, which wUl of themselves sink into oblivion as the first 
 principles of Political Economy become more generally and 
 more perfectly understood. 
 
 In relation to the many erroneous theories advanced by unin- 
 formed political economists, I cannot forbear to quote the words 
 of Mr. Say. " With respect to the wild or antiquated theories 
 so often produced or reproduced by authors who possess neither 
 sufiiciently extensive nor well digested information to entitle 
 them to form a sound judgment, the most effectual method of re- 
 futing them is to display the true doctrines of the science with 
 still greater clearness, and to leave to time the care of dissemi- 
 nating them. We otherwise should be involved in interminable 
 controversies, affording no instruction to the enlightened part of 
 society, and inducing the uninformed to believe that nothing is 
 Busceptible of proof, in as much as every thing is made the sub-" 
 ject of argument and disputation." 
 
 In the hope that this work may be found useful to the public 
 —that it ^ay serve to increase the intelligence and excite the 
 patriotism of his fellow-citizens, and prove an efficient auxiliary 
 in the cause of common education, the author respectfully sub- 
 mits it to the judgment of the public. 
 
 PougTikeepsie, January, 1839. 
 
CONTENTS 
 
 AND 
 
 PLAN OF THE WORK. 
 BOOK FIRST. 
 
 CIVIL POLITY, 
 
 CONTAINING ELEMENTS OF POLITICAL KNOWLEDGE 
 AND CONSTITUTIONAL LAW. 
 
 PART FIRST. 
 
 Elements of Political Knowledge, 
 
 Natural Liberty 
 
 Civil Liberty . 
 
 Political Liberty 
 
 Civil Society 
 
 Law 
 
 Sovereignty 
 
 Government 
 
 Despotism 
 
 Aristocracy 
 
 Democracy 
 
 Limited Monarchy 
 
 United States Government 
 
 Constitution 
 
 Common Law . , 
 
 Statute Law , , 
 
 Corporations . , 
 
 21 
 22 
 23 
 
 lb 
 24 
 26 
 27 
 
 ih 
 28 
 30 
 31 
 33 
 36 
 39 
 40 
 41 
 
8 
 
 CONTENTS. 
 
 Charter 
 Parties 
 /*actions 
 
 41 
 ib 
 
 PART SECOND. 
 Constitutional Law. 
 
 Origin of the Constitution of the United States 
 Preamble ..... 
 
 Article L — Of the Legislature. 
 
 Sec. I.— Legislative Power 
 
 Of the Organization of the Government 
 Of the constituent parts of the Legislature 
 
 H.—Electors of Representatives . 
 Qualifications of Representatives 
 Ratio of Representation 
 Vacancies in the Representation from a State 
 Mode of electing Representatives 
 OfScers of the House of Representatives 
 Power and Mode of Impeachment 
 III.— Composition of the Senate 
 
 Qualifications for Senators , 
 President and other ofiicers of the Senate 
 Power to try Impeachments . 
 Judgment upon Impeachments 
 
 IV.— Elections for Senators and Representatives 
 
 Assembling of Congress 
 V — ^The keeping of a Journal by each House 
 Expunging of the Journal 
 Adjourrmients of either House , 
 
 VI.— Members privileged irom Arrest 
 
 Treason, Felony, and Breach of the Peace 
 
 43 
 
 46 
 
 46 
 ib 
 ib 
 ib 
 47 
 48 
 ib 
 50 
 ib 
 51 
 ib 
 52 
 54 
 55 
 ib 
 ib 
 56 
 ib 
 57 
 ik 
 5ij 
 ib 
 ih 
 
CONTENTS. 
 
 VII. — Biils for raising Revenue 
 Mode of passing Laws 
 Executive Veto 
 
 59 
 60 
 61 
 
 Of the Powers of Congress. 
 VIII.— To impose Taxes, Duties, Imposts, and Ex 
 
 cises . . . i * 
 
 63 
 
 To borrow Money 
 
 65 
 
 To regulate Commerce . . 
 
 ib 
 
 To establisli the Mode of Naturalization 
 
 67 
 
 Protective Duties 
 
 ib 
 
 Naturalization . 
 
 ib 
 
 Bankruptcy . . • 
 
 ib 
 
 To coin Money, &c. 
 
 68 
 
 To establish Post-offices, and Post-roads 
 
 69 
 
 Internal Improvements . 
 
 ib 
 
 Patent and Copy rights . 
 
 71 
 
 To constitute Judicial Tribunals 
 
 72 
 
 To punish Piracy 
 
 ib 
 
 Piracies — High Seas 
 
 ib 
 
 To declare War, support Armies, &c. 
 
 72 
 
 Letters of Marque and Reprisal 
 
 73 
 
 Navy — Standing Armies 
 
 74 
 
 Powers of Congress over Military Affairs 
 
 ; ib 
 
 Powers of the President as Commander-in 
 
 
 chief .... 
 
 75 
 
 Legislation over ceded Places 
 
 76 
 
 The question of a National Bank 
 
 77 
 
 Of Restrictions upon the Powers of Congre 
 
 ss. 
 
 IX. — Importation of Slaves . o 
 
 79 
 
 Writ of Habeas Corpus — Bills Oi Attaiader 
 
 80 
 
 Ex post facto Laws . 
 
 ih 
 
 Capitation Taxes . . , 
 
 81 
 
 Duties on Exports , * , 
 
 ib 
 
10 CONTENTS. 
 
 Commercial Regulations . * ' . 82 
 
 The Public Moneys . . . . i6 
 
 Titles of Nobility .... 83 
 
 Of Restrictions upon the Powers of the States. 
 
 X.— Bills of Credit .... 84 
 
 Obligation of Contracts ... ib 
 
 Tonnage Duties . . ^ . . 85 
 
 Article II. — Of the Executive. 
 
 Sec. I. — Executive . . . 
 
 Electors of President and Vice-President 
 Manner of Election . 
 Qualifications for President . 
 II. — His Powers and Duties 
 
 Public Ministers — Ambassadors — Consuls 
 III. — President's Messages 
 
 86 
 87 
 88 
 89 
 92 
 93 
 96 
 
 Article III. — Of the Judiciary. 
 
 Sec. I. — Organization of the Courts of the United 
 
 States ..... 97 
 
 II.— Extent of Judicial Power ... 99 
 
 A Case^ — Equity .... ib 
 
 Admiralty and Maritime Jurisdiction . ib 
 
 Original and Appellate Jurisdiction . . 101 
 
 Trials by Jury .... 102 
 
 III. — Treason — Conviction and Punishment of . 103 
 
 Article IV.- — Miscellaneous. 
 
 Sec. I. — Credit given to Domestic Judgments— to fo- 
 reign Judgments . . . ,104 
 
 II. — Privileges of Citizens in diffeVent States , 105 
 
 Fugitive Slaves — Delivery of Criminals , ib 
 
 22 - ^ 
 
CONTENTS. 
 
 III. — ^Admission of new States 
 
 Territorial Regulations 
 IV.— Protection of the States 
 
 11 
 
 106 
 107 
 ih 
 
 1 Article V. — Of Amendments. 
 
 Amendments, how made 
 
 Ijimitations to the power of making Amendments 
 
 108 
 ib 
 
 , Article VI. 
 
 Debts contracted before the adoption of the Constitution 109 
 
 Laws of the Land . . . . « «6 
 
 Oath required of Public Officers — Religious Test . 110 
 
 Article VII. 
 Of the Ratification of the Constitution 
 
 Amendments . . . 
 
 Ill 
 112 
 
 BOOK SECOND. 
 
 ELEMENTS OF POLITICAL ECONOMY. 
 
 
 Introdtwtion. 
 
 \ 
 
 Political Economy- 
 
 « 1 « 
 
 121 
 
 Wealth . . 
 
 
 • • « 
 
 122 
 
 Value intrinsic . . 
 
 
 » i • ' • 
 
 ih 
 
 Value exchangeable 
 
 
 • • • 1 
 
 123 
 
 Division of the Subject 
 
 
 « L-; . ;■'•: . 
 
 126 
 
12 
 
 CONTENTS. 
 
 PART FIRST. 
 
 Of the Production of Wealth, 
 
 Section I. — Of Capital. 
 
 The Nature of Capital c . 
 
 The Forms and Changes of Capital 
 Productive and Unproductive Capital . 
 Fixed and Circulating Capital 
 
 128 
 129 
 130 
 131 
 
 Section II. — Of Industry. 
 
 I. The Object of Industry . . , . 132 
 Changes effected by Industry . . . 133 
 The different Forms of Industry , . . 134 
 The Products of the different Forms of Industry . 135 
 
 II. Of the different Modes by which the Productiveness 
 of Human Industry may be increaoed ; and, first, by 
 
 the Use of Natural Agents « . ,137 
 
 Natural Agents — ^animate and inanimate . « 138 
 
 Their Uses and Importance . . . . i6 
 
 III. Of the manner in which Productiveness may be 
 increased by Division of Labor . . , 139 
 
 Division of Labor among the different Departments of 
 
 Industry , , , . 140 
 
 IVv Limitations to the Division of Labor , v 142 
 
 From the Nature of the Process . , . ih 
 
 Amount of Capital , , . . » 143 
 
 Extent of the Demand .... 144 
 
 Of the Natural Divisions of Labor , , . 145 
 
 V» Effects of the increased Productiveness of Human 
 
 Industry .,..,. 145 
 
 Labor-saving Machinery . "» » . ih 
 
 Effect upon both Consumers and Producers , • 146 
 
CONTENTS. 
 
 13 
 
 Section III. — Of the Principles wldch govern the application 
 
 of Labor to Capital. 
 
 Labor and Capital united 
 
 I. Freedom of Labor and Capital necessary to Produc 
 lion ...... 
 
 Effects of an Insecurity of Property upon Industry 
 Monopolies ..... 
 
 II. The greater the ratio of Capital to Labor, the 
 greater will be the Wages of Labor, and the greater 
 will be the stimulus to Industry 
 
 Advantages of accumulations of Capital 
 
 III. The Productiveness of Industry and Capital will 
 be increased in proportion to the Intellectual Im 
 provement of a People 
 
 rV. Of Protective Duties . . . - 
 
 V. Of Bounties 
 
 149 
 
 149 
 150 
 L51 
 
 153 
 154 
 
 155 
 156 
 
 168 
 
 PART SECOND. 
 
 Of the Distribution of Wealth. 
 
 The Prirrciples which regulate the Division of Value 
 
 among the Producers 
 The Wages of different kinds of Labor 
 Of simple Labor .... 
 
 Of educated Labor . . . 
 
 Of the price paid for the use of Capital 
 Causes which occasion Fluctuations in the Rate of In 
 
 rest . . . ... 
 
 Rent ...... 
 
 Of legal Interest .... 
 
 2 
 
 172 
 174 
 175 
 176 
 
 177 
 
 18D 
 ih 
 
 182 
 
14 
 
 CONTENTS* 
 
 PART THIRD. 
 
 Of the Exchange of Wealth, 
 
 The diffeient kinds of Exchange . . . 187 
 
 Section I. — Of Barter in General^ or Exchange in Kind. 
 
 I. The Necessity of Exchanges 
 Of the Principles which give rise to Exchange 
 
 II. Barter in General, or Exchange in Kind . . 192 
 
 168 
 189 
 
 Section II.~-0/ Exchange by means of a Metallic Currency 
 
 I. Of the Qualities necessary to that which constitutes 
 
 the Circulating Medium .... 198 
 
 II. Of the Amount of Money necessary to effect the 
 Exchanges of a Community . . . :7: 204 
 
 Exchanges between Nations . . ^^' . . 205 
 
 Effect of a Productive Season upon Exchanges . 208 
 
 of an Unproductive Season . , . 209 
 
 Of the abundance and scarcity of Money , . 211 
 
 III. Of Banks of Deposite and Exchange . . 212 
 The Evils which they remedy » . . 213 
 Bills of Exchange ..... 219 
 
 Section III. Of Exchange by means of a Paper Currency. 
 
 I. Banks of Discount and Loan ; and of Circulation, or 
 
 Issue Banks, in this Country , . . 222 
 
 Their Nature and Mode of Operation . . 223 
 
 11. Of the Sources of the Profits of Banks 
 
 ni. Ofthe Utility of Banks . 
 
 As Institutions of Deposit and Exchange 
 
 As Institutions of Discount and Loan 
 
 228 
 
 230 
 231 
 
 232 
 
CONTENTS. 
 
 15 
 
 rV. Of the Disadvantages of Banks '. 
 Their liability to Forgery 
 
 to Fraud and Fluctuation 
 
 Of the New-York Safety Fund System 
 
 236 
 
 ib 
 
 237 
 
 242 
 
 PART FOURTH. 
 
 Of the Consumption of Wealth, 
 
 I. Of the Nature and Different Kinds of Consumption 
 Productive and Unproductive Consumption 
 Consumption for the Increase of Value 
 for the Gratification of Desire 
 
 II. Of Public Expenditure • Hi" • 
 Effects of Public Profusion 
 
 251 
 
 252 
 
 253 
 
 ih 
 
 254 
 255 
 
AN APPENDIX, 
 
 CONTAINING ' 
 
 A BRIEF ACCOUNT OF THE POWERS, DUTIES, AND 
 
 SALARIES, OF NATIONAL, STATE, COUNTY> 
 
 AND TOWN OFFICERS. 
 
 CHAPTER I. 
 
 
 OF NATIONAL OFFICERS. 
 
 
 Section I. — Of the Executive Department. 
 
 
 I. Of the Department of State , „ i 
 
 260 
 
 IL Of the Treasury Department 
 
 ib 
 
 III. Of the War Department 
 
 261 
 
 IV. Of the Navy Department 
 
 262 
 
 i V. Of the Post-office Department . 
 
 ib 
 
 VI. Of the Mint Department 
 
 264 
 
 Section II. — Of the Legislative Department. 
 
 
 I. The Officers of Congress 
 
 265 
 
 II. Their Committees • . 
 
 ib 
 
 III. Their Rules • . . . . 
 
 d TTT /^T jT. T..7- "T Tr» j™ J 
 
 266 
 
 Section III. — Of the Judicial Department. 
 
 The Supreme Court — The Circuit Courts — The Dis, 
 
 trict Courts ...... 268 
 
 Of the Officers of the Courts, 
 Attorneys— Clerks— Marshals — Reporters . . 268 
 
CONTEJSTS. 17 
 
 CHAPTER 11. 
 
 OF THE STATE, COUNTY, AND TOWN OFFICERS 
 OF THE STATE OF NEW-YORK. 
 
 Section I. — Of State Officers. 
 
 I. Of Legislative Officers .... 270 
 
 Senators — ^Members of Assembly 
 
 II. Of Executive Officers .... 270 
 
 Of the Governor — Lieutenant-Governor, Secre- 
 tary of State — Comptroller — Treasurer — Attor- 
 ney-General — S urveyor-Goneral — S tate Printer 
 —Governor's Private Secretary and Door-keeper 
 of the Executive Chamber — ^Administrative Of- 
 ficers. 
 
 in. Of the Judiciary ..... 278 
 
 Of the Court for the Trial of Impeachments and 
 the Correction of Errors — Court of Chancery — 
 The Supreme Court — The Circuit Courts — 
 Courts of Oyer and Terminer — Courts of Coiru 
 mon Pleas — Courts of General Sessions — Courts 
 of Special Sessions — Courts of Justices of the 
 Peace. 
 
 Section II.— 0/ County Officers. . 282 
 
 Of the Sheriff— ^Coroners — District Attorney — Judges 
 of the County Courts — County Clerk — Surrogate — 
 Superintendents of the Poor — County Treasurer- 
 Board of Supervisors — Commissioners of Loans- 
 County Sealer — Inspectors of Commodities. 
 
 2» 
 
18 CONTENTS. 
 
 Section III. — Of Town Officers. T 
 
 OF the Supervisor — Town Clerk — Assessors — Justices 
 of the Peace — Collector — Overseers of the Poor — 
 Commissioners of the Highways — Commissioners of 
 Common Schools — Inspectors of Common Schools- 
 Constables — ^Town Sealer — Overseers of Highways 
 —Pound Masters — Fence- Viewers— Commissioners 
 ©f ExciEo— Board of Auditors of Town Accounts— 
 Commissioners of Dec^ls 
 
 ^ 
 
BOOK I. 
 CIVIL POLITY; 
 
 CONTAINING 
 
 ELEMENTS 
 
 OP 
 
 POLITICAL KNOWLEDGE 
 
 AND 
 
 CONSTITUTIONAL LAW. 
 
A 
 
 PART FIRST. 
 
 ELEMENTS 
 
 OF 
 
 POLITICAL KNOWLEDGE 
 
 Natural Liberty — is freedom from all human re» 
 straint. It is freedom to act as one's will and pas- 
 sions prompt him, restrained only by those laws of 
 our nature which the Deity has imposed upon us. 
 This kind of liberty can exist only in a state of soli- 
 tude, and never under any form of government : the 
 very idea of a government precludes it. 
 
 Where men have the liberty of doing whatever 
 <^their passions urge them- to attempt, or their strength 
 enables them to effect, their very liberty becomes sav- 
 age ferocity : it is the liberty of a tiger, and not that 
 of a man. Unbridled liberty is the worst of tyranny ; 
 and where there is no law, there can be no freedom. 
 
 If men were never actuated by wrong motives, no 
 codes of jurisprudence would be necessary to keep 
 them in the path of duty ; but the design of a wise 
 
 What is Natural Liberty 1 
 
 Where, and where only, can it exist 1 
 
 What would natural liberty become if unrestrained 1 
 
22 ELEMENTS OP 
 
 government is to restrain the evil and licentious, and 
 to protect the innocent and virtuous from wrong and 
 injustice. 
 
 Hence arises the necessity of laws which abridge 
 the natural liberty of man where its exercise would 
 infiinge upon the rights of others. 
 
 One man has no right to that unrestrained freedom 
 which seeks his own interest exclusively, and disre- 
 gards the welfare of his fellow men. 
 
 Were men wise enough to seek their true interest, 
 it would never be promoted by the violation of right 
 and duty ; for the laws of the Creator are such, that 
 permanent individual good never clashes with the gen- 
 eral happiness of all. 
 
 From the restrictions placed by a wise government 
 upon the natural liberty of man, there arises a more 
 secure and desirable state of freedom, called civil 
 liberty. 
 
 Civil Liberty — is the being restrained hy no law hut 
 what conduces to the public welfare. After a govern- 
 ment has been established, those rights which are re- 
 tained by the people are the residuum of natural liber- 
 ty, which is not required by the laws of society to be 
 sacrificed to public convenience ; or they may be said 
 to be those civil privileges which society engages to 
 provide in place of the- natural liberties given up by 
 individuals. 
 
 Whence arises the necessity of governmont andlaws 1 
 What is tliat state of freedom called, which arises from tlie restrictions pla- 
 ced upon natural liberty 1 
 What is Civil Liberty ? 
 
POLITICAL KNOWLEDGE. 23 
 
 Laws which augment the civil liberty of a people, 
 must often necessarily restrain the personal liberty of 
 individuals. 
 
 Although a person in the freest Republic in the 
 world may be imprisoned for a crime, his civil liberty 
 is not invaded, if his confinement is the result of a 
 beneficial public law ; for, according to the definition 
 of civil liberty, the law by which his crime is punished 
 conduces to the public welfare. 
 
 Political Liberty — is that degree of security with 
 which any particular form of goverment guarantees the 
 enjoyment of civil liberty. Civil liberty may exist in 
 perfection under an absolute monarch, who has the 
 will and the wisdom to make beneficial laws, and the 
 power to execute them. But under such a government 
 there is no security for the continuance of civil liberty ; 
 consequently political liberty is there unknown. 
 
 Civil Society — is the union of a multitude of people 
 who agree to live in subjection to certain laws which 
 either the people themselves form, or which are left to 
 the regulation of their rulers. Nothing can be ad- 
 vanced with certainty respecting the origin of civil 
 societies. 
 
 What are the rights retained by tlie people 1 
 
 How may the civil liberty of a people be increased, while the personal lib- 
 erty of individuals is restrained 1 
 
 What is Political Liberty 1 
 
 How may civil liberty exist under an absolute monarch, and why not polit- 
 ical liberty 1 
 
 What is Civil Society 1 
 
 To what has the origui of civil societies been attributed 1 
 
24 ELEMENTS OF 
 
 Their origin has been attributed — 
 
 First — To paternal authority — that authority which 
 a father exercises over his family- — a patriarch over 
 his direct descendants. The band, thus united by the 
 ties of kindred, and by a similarity of views and inte- 
 rests, would naturally be kept together after the death 
 of the patriarch, and his authority would be transferred 
 , to some one of his descendants. 
 
 Second — Civil society is supposed by some to have 
 originated in that fear and diffidence which mankind 
 had of one another, which induced them to unite toge- 
 ther in order to shelter themselves from the evils they 
 apprehended. 
 
 Third — That ambition in the more powerful was the 
 cause of reducing the weaker to subjection ; thus form- 
 ing the germs of sovereignty and empire. 
 
 But the varieties of character among the rudest peo- 
 ple, will not permit us to refer the origin of all gov- 
 ernments to a general and uniform principle. It is 
 more natural to suppose that different circumstances 
 gave rise to different states. 
 
 Law — is a mode of existence, or a state of being. It 
 is not a rule of action only, for inertia is a law of mat- 
 ter. The term law, however, embraces the rules of all 
 action, and comprehends alike the rules by which the 
 heavenly bodies move, by which nations are governed 
 and plants grow. 
 
 First— Second— Third— What is the most natural supposition relating to 
 their origin 1 
 What is Law? 
 What is law in its most general signification 1 
 
POLITICAL KNOWLEDGE. 25 
 
 Law, in a political sense, however, signifies a rule of 
 human action. In a particular state, it is a rule pre- 
 scribed by the supreme power in the State, the design 
 of which should be to declare and enforce the observ- 
 ance of what is right, and to forbid and punish what is 
 wrong. 
 
 Law may be divided into four kinds — -the Law of 
 Nature, Revealed Law, the Laws of Nations, and Muni- 
 cipal Law. 
 
 The Law of Nature — is the will of the Deity as 
 gathered from his works. 
 
 Revealed Law — is the will of the Deity as expressed 
 by himself in divine revelation. 
 
 The former is what, by the assistance of reason, we 
 imagine to be the will of the Deity. The latter is 
 what the Deity has expressly declared to be his will. 
 
 The Laws of Nations — are those rules which de- 
 line the rights, and prescribe the duties of nations, in 
 their mutual intercourse with each other. 
 
 Municipal Law — is a rule of civil conduct prescribed 
 by the supreme power in a state. Municipal Laws are 
 civil or internal, as distinguished from national or ex- 
 ternal laws. The laws relative to the descent of pro- 
 perty are municipal laws ; but laws relative to com- 
 
 What is the signification of the term wiieu used iu a political sense t 
 
 What is it in a particular state ? 
 
 How may law be di\ided 1 
 
 What is the Law of Nature I 
 
 Revealed Law 1 
 
 The Laws of Nations 1 
 
 Municipal Law 7 
 
 3 
 
26 ELEMENTS OF 
 
 morce, to war, the army and navy, are external and 
 national. 
 
 Sovereignty — is the highest power inan independent 
 state or community, and is incompatible with the natu» 
 ral hberty of man. But a wise sovereignty, whether 
 its power be vested in one man, in a select body of men, 
 or in the whole people, does not subvert civil liberty, 
 but, on the contrary, contributes to strengthen and ce» 
 ment it. 
 
 For a State or Nation to be sovereign, it must govern 
 itself i without any dependence upon another power. It 
 must have no superiors. But when a community, cityj 
 or State forms a part of another community or State, 
 and is represented in foreign countries by that commu- 
 nity or State of which it is a part, then it is not sove- 
 reign. 
 
 With respect to the United States, the individual 
 States are not sovereign powers. The General 
 Government of the United States is sovereign in a na^ 
 tional capacity, and that of the States in a municipal 
 capacity. The former can declare war, make peace, 
 enter into treaties, regulate commerce, coin money, &c. 
 And these are national objectso. 
 
 The States have reserved to themselves the power to 
 make municipal laws — those which directly concern 
 
 "V^Tiat is Sovereignty ? 
 
 With which is sovereignty incompatible, natural or civil liberty ? 
 
 What is necessary in order for a State to be sovereign 1 
 
 In the United States are the individual States sovereign powers 1 
 
 In what capacity is the general government sovereign 1 
 
 la what may the States be considered sovereign 1 
 
POLITICAL KNOWLEDGE. 27 
 
 the States alone — such as those which relate to State 
 taxation, descent of property, chartered companies, po- 
 lice regulations, &c. The States are, therefore, sove- 
 reign in their municipal capacity only. 
 
 But the government of the United States is superior 
 to and sovereign over the governments of the States in 
 those cases in which they are constitutionally brought 
 into collision. Finally, the people of the United States, 
 are one nation, and do not constitute many separate 
 sovereignties united by a league. 
 
 Government — is the whole body of constituted au- 
 thority. From the very origin of society, one portion 
 of the people has exercised authority over the rest. 
 The authority thus exercised is called the. government f 
 and it derives its just powers from the consent of the 
 governed. 
 
 There are four principal forms of government, viz : 
 Despotism, Limited Monarchy, Aristocracy, and De- 
 mocracy, or Republic. 
 
 • A Despotism — is that form of government in which 
 a single individual, without any law, governs accord- 
 ing to his own will and caprice. An example of this 
 kind of goverment may be found in Turkey, where the 
 Sultan exercises all the powers of sovereignty, with re- 
 spect to the general administration of public affairs ; 
 
 Wliich is superior, the General or the State governments 7 
 
 What is Government 1 
 
 How many, and what are the principal forms of government 1 
 
 What is a Despotism 1 
 
 Wliere may an example of this kind of goveniment be found ? 
 
 By what is the sovereigi-.ty of the Sultan limited l 
 
28 ELEMENTS OF 
 
 but even there he is limited by certain customs and 
 rules, as it respects private justice. 
 
 The advantages of a despotism are unity of counsel, 
 activity, decision, secrecy, military strength, the exclu- 
 sion of popular and aristocratical contentions, and the 
 prevention, by a known order of succession^ of all com- 
 petition for the supreme power. 
 
 The evils to which it is liable are tyranny, expense, 
 unnecessary wars waged to gratify the passions of an 
 individual, uncertainty of obtaining a good prince, ig- 
 norance in the rulers of the interests of the people, want 
 of constancy and uniformity in the rules of government, 
 and, finally, insecurity of person and property. 
 
 An Aristocracy — -is that form of government in 
 which the legislature and sovereign power are in a select 
 assembly, the members of which either fill up by election 
 the vacancies in their own body, or succeed to their 
 places in it by inheritance, property, or in respect of 
 some personal right or qualification. 
 
 The word aristocracy is of Greek derivation, and is 
 compounded of the adjective aristos, signifying best or 
 wisest, and hratos, signifying power or strength. The 
 whole word signifies that form of government in which 
 a few of the wisest and best govern. 
 
 The theory of this government is certainly a very 
 
 What are the advantages of a despotism 1 
 What are the evils to which it is liable 1 
 What is an Aristocracy 1 
 
 What is the derivation and signification of the word aristocracy 1 
 What is said of the theory, as contrasted with the practical effects of this 
 form of goverment 1 
 
POLITICAL KNOWLEDGE. 29 
 
 beautiful one ; and if the best and the wisest were the 
 rulers, the government would be as perfect as human 
 ingenuity could* devise. But the practical effects of 
 this form of government are often widely different from 
 the advantages promised by the theory. 
 
 Aristocracies are of two kinds : First, that in which 
 the power of the nobility belongs to them in their col- 
 lective capacity only ; that is, where, although the gov- 
 ernment is vested in an assembly of the order, yet the 
 members of that assembly, separately and individually, 
 possess no authority or privilege beyond the rest of the 
 community. 
 
 Secondly, where the nobles are severally invested 
 with great personal power and immunities, and where 
 the power of the Senate is little more than the aggre- 
 gated power of the individuals who compose it. 
 
 Of these two forms of government, the former is far 
 more tolerable than the latter. For in the former, 
 although a few members of the Senate should be profli- 
 gate enough to abuse their authority, it would still be 
 difficult to obtain the con^nt of a majority to any spe- 
 cific act of oppression. 
 
 Or if the Senate had the will to do wrong, the povver 
 would be more confined ; for one tyrant, whether the 
 tyranny resides in a single person or in a Senate, cannot 
 exercise oppression at so many places at the same 
 
 Of how many kinds are ailstocracies 1 
 What is the form first mentioned 1 
 The second 1 
 Wliicb is the more tolerable, and whv 1 
 
 3* 
 
30 ELEMENTS OP 
 
 time as may be exercised by a numerous nobility over 
 their respective vassals and dependents. 
 
 The peculiar advantage claimed for an aristocracy, 
 is the wisdom which may be expected from experience 
 and education. A permanent council naturally pos- 
 sesses experience, and the members who succeed to 
 their places in it by inheritance, will probably be edu- 
 cated with a view to the stations which they are des- 
 tined by their birth to occupy. 
 
 The evils to which an aristocracy is liable, are dis- 
 sensions among the ruling orders of the State, oppres- 
 sion of the lowei* orders by the privileges of the higher, 
 and laws partial to the separate interests of the law- 
 makers. 
 
 A DEMocRACY~is that form of government in which 
 the legislature and sovereign power are in the hands of 
 the people at large. The term democracy is derived 
 from two Greek words, demos, signifying people, and 
 hratos, signifying power, meaning that form of govern- 
 ment in which the people rule. 
 
 Democracies are of twp kinds : First, that in 
 which the people govern themselves by primary as^ 
 semhlies, as in ancient Athens — a mode which could 
 be adopted only by the citizens of a small country, or 
 inhabitants of one city. Secondly, where the people 
 
 What peculiar advantage is claimed for an aristocracy 1 
 
 To what evils is it liable 1 ■ 
 
 What is a Democracy 1 
 
 What is the derivation and signification of the word democracy 1 
 
 Of how many kinds are democracies 1 
 
 What is the kind first mentioned 1 
 
 The second 1 
 
POLITICAL KNOWLEDGE. 31 
 
 govern themselves by delegates, or through the princi- 
 ples of representation, as in the United States. The 
 iattsr form of democracy is more frequently called a 
 B^public. 
 
 The advantages of a Democracy or Republic, are 
 civil liberty, equal laws, regulations adapted to the 
 wants and circumstances of the people, public spirit, 
 /rugality, averseness to war, and the opportunities 
 vjhich democratic assemblies afford to men of every 
 description for exhibiting their abilities to the public. 
 Here merit seldom goes unrewarded, and a field fer thw, 
 display of talent is always open. 
 
 The evils to which a democracy is liable, are dissen- 
 sions, tumults, and faction ; the attempts of the ambi- 
 tious to possess themselves of supreme power, and the 
 delay and disclosure of public counsels and designs. 
 
 Knowledge and virtue among the people are the only 
 conservative principles of a democratic form of govern- 
 ment. 
 
 A Limited Monarchy — is formed by a combination 
 of two or more of these simple forms of government — 
 despotism, aristocracy, and democracy ; and, in what- 
 ever proportion either of these forms enters into the 
 constitution of a government, in the same proportion 
 may both the advantages and the evils which are at- 
 h'ibuted to that form be expected. 
 
 Wliat is the last mentioned form of a democracy often called ? 
 
 Wliat^are the advantages of a democracy 1 
 
 What are tlie catIs to which it is liable "? 
 
 What are the only conservative principles of this form of government ? 
 
 B.01V is a Limited Monarchy formed 1 
 
82 ELEMENTS OF 
 
 Some limited monarchies are hereditary ; others are 
 elective. 
 
 A hereditary monarchy is universally to be preferred 
 to an elective monarchy. A crown is too splendid a 
 prize to be conferred upon merit, and nothing is gained 
 by a popular choice worth the dissensions and tumults 
 with which it is invariably attended. 
 
 Besides, a king who passes to a throne through 
 scenes of tumult, and often of bloodshed, will be liable 
 to regard one portion of his subjects as the associates 
 of his fortune, and the other as conquered foes. 
 
 Also, the benefits to be derived from a uniformity of 
 counsels and designs, may be expected with greater 
 probability where the supreme power descends in the 
 same race, and where each prince succeeds in some 
 sort to the aim, pursuits, and disposition of his ancestory 
 than if the crowii, at every change, devolve upon a 
 stranger, whose first care will commonly be to pull 
 down what his predecessor had built up. 
 
 The English government is a hereditary limited 
 monarchy, and is probably the best kind of limited mon- 
 archy known It is formed by a combination of the 
 three different forms of simple goverraent, viz. — des- 
 potism or monarchy, which resides in the King — aris- 
 tocracy, in the House of Lords — and democracy, in the 
 House of Commons. 
 
 Why is a hereditai-y monarchy to be preferred to an elective monarchy ? 
 What is the best form of limited monarchy known 1 
 Of what is the English government composed 1 
 
political knowledge. 66 
 
 United States Government. 
 
 There were originally three forms of government hi 
 the American colonies, viz. — the Charter — the Pro- 
 prietary — and the Royal governments. 
 
 In the Charter governments, the people were allowed 
 the right of choosing their own rulers. 
 
 In the Proprietary governments, the power of ap- 
 pointing officers and making laws rested in the proprie- 
 tors, by the advice generally, and with the consent of 
 the freemen. 
 
 In the Royal governments, the governor and council 
 were appointed by the crown, and the people elected 
 representatives to the colonial legislature. The gov- 
 ernor had a negative in both houses of the ■ legislature, 
 and most of the officers were appointed by the king. 
 
 In 1777, articles of confederation were adopted by 
 most of the colonies, under which the Revolution was 
 terminated. They were a mere league, which did not 
 pretend to be a government, and were deficient in 
 nearly all the attributes of sovereignty. In 1788, the 
 present Constitution was adopted by most of the States, 
 and soon after by all. 
 
 The government of the United States is founded upon 
 the consent of the people. The Constitution asserts 
 that it was formed by " the people," and the ratifica- 
 
 How many forms of government were there in the American colonies 1 
 What were the Charter governments ? The Proprietary 1 The Royal ? 
 When were the Articles of Confederation adopted, and wliat were they 1 
 When was the present Constitution adopted ? 
 Upon what is the government of the United States founded 1 
 
84 ELEMENTS 01* 
 
 tions of all the States commence with " we the delegates 
 ©f the people" — hence, the foundation of our govern- 
 ment is the consent of the people. Under despotic govern, 
 ments, the people have often no voice in the choice of 
 their rulers or their laws, and under monarchies and 
 aristocracies frequently very little. 
 
 The government of the United States is a Republic, 
 or Democracy, because the people hold sovereign pow- 
 er, and both the legislative and executive branches of 
 the government are chosen by the people. 
 
 It is a Federal Republic because composed of seve- 
 ral States, some of which were originally independent, 
 but which are now united under one general govern- 
 ment. 
 
 The government of the United States is a Represen- 
 tative Federal Republic, because the people act through 
 heir delegates. 
 
 It is also a goyemment of majorities. In the conven- 
 tions of the people which ratified the Constitution, a 
 majority in any one convention made the decision, for 
 no other rule could be adopted where they were subor- 
 dinate to no authority but their own. Members of the 
 House of Representatives are chosen by majorities of 
 the people, and the House of Representatives decides 
 by majorities. 
 
 A majority of the House of Representatives consti- 
 
 How does this appear ? 
 
 Why is the government a Republic 1 
 
 Why a Federal Republic ? 
 
 Why a Representative Federal Republic ' 
 
 Why is it a governiacht of majorities I 
 
POLITICAL KNOWLEDSE. 35 
 
 tutes a quorum. Members of the Senate are chosen 
 by majorities of the State legislatures. ?<Iajorities 
 in Congress decide all questions upon which their ac- 
 tion is required. 
 
 But there are some exceptions to this rule of majori- 
 ties. 
 
 1st. Where bills have .passed both Houses of Con- 
 gress, and the President has refused them his sanction, 
 they may become law if repassed by two thirds of each 
 house. 
 
 2d. The President and two thirds of the Senate form 
 treaties. 
 
 3d. It requires two thirds of the House of Represen- 
 tatives to make impeachments, and two thirds of the 
 Senate to convict a person upon impeachment. 
 
 The Judges are appointed by the President, who is 
 elected by a majority ; and their appointments are con- 
 firmed by the Senate, also elected by a majority. The 
 Judges, are, therefore, appointed indirectly by a ma- 
 jority. They are necessarily far removed from popu- 
 lar influence. 
 
 Thus, the whole structure of the government is based 
 upon the acts of majorities, and these majorities at last 
 rest upon majorities of the whole people. The excep- 
 tions to this almost universal rule, are cases of obvioua 
 and urgent necessity. 
 
 What tliree exceptions to this rule of majorities 1 
 
 How are the Judges appointed 1 
 
 What is said of the exceptions to the rule of majorities I 
 
36 ELEMENTS OP 
 
 Constitution — is the constituted form of govern- 
 ment. It is the fundamental law ; the regulation which 
 determines the manner in which the authority vested in 
 government is to be executed. 
 
 The Constitution of the United States was delineated 
 by the hand of the people, and ratified by them in their 
 original, sovereign, social capacity. These ratifica- 
 tions were made in conventions of the people, and in the 
 name of the people, and not in the name of the States. 
 Hence, the Constitution proceeded from the people, in 
 their sovereign capacity. 
 
 The Constitution of the United States acts upon 
 both individuals and States. It acts upon the States, 
 for almost every article in the Constitution refers to 
 the States, and requires something to be done by them 
 or prohibits them from doing something. It acts upon 
 individuals, because Congress has power to tax the 
 people, arm the militia, &c. 
 
 The Constitutions of the States act upon individuals, 
 and not upon the government of the United States, nor 
 upon each other. 
 
 They act upon individuals, because State legislation 
 is mostly municipal, and refers to individuals only. 
 
 They do not ^ct upon each other, because, as it re- 
 spects each other, the States are precisely equal. 
 
 They do not act upon the United States, because that 
 
 What is a Constitution ? 
 
 By whom was the Constitution of the United States delineated, and how 
 ratified ? 
 Upon whom does the Constitution of the United States act 1 
 Upon whom do the C«>R«(t,sS,ution3 of the States act 1 
 
POLITICAL KrCOWLEDGE. 37 
 
 would be incompatible with the national sovereignty of 
 the General Government. 
 
 The government of the United States is perpetual, 
 unless abrogated by the will of a majority of the people. 
 A government justly constituted can be justly abro- 
 gated only by the same power which brought it into 
 existence. A majority of the people, in their sove. 
 reigp capacity, formed the government, and they alone, 
 in that capacity, can abrogate it. 
 
 The State governments are not the people in their 
 sovereign capacity, and cannot therefore change the 
 General Government ; for they cannot unmake what 
 they never had power to make. As the Constitution 
 was formed by a majority of the whole people, one 
 State, v/hich must be si .minority, cannot alter the acts 
 of a majority. 
 
 As the Constitution acts upon individuals, one State 
 cannot secede from the Union, and establish a separate 
 government of its own, any more than could a few in- 
 dividuals, or a town. Any less number than a majority 
 would subject themselves to the penalties of treason, by 
 revolutionary acts. The Constitution acts upon indi- 
 viduals, without any reference to State lines. 
 
 If the form and principles of the government are to 
 be in any manner changed, they must be changed by a 
 majority, in the manner pointed out by the Constitu- 
 tion. 
 
 What is said of the perpetuity of the government 1 
 Who only have the power of changing or abrogating the government 1 
 Why may not the State governments change the General Government ? 
 Why may not a State secede from the Union ? 
 
 4 
 
S8 ELESiEr-rrs of 
 
 The people, indeed, in their sovereign capacity, have 
 the power to abolish their form of government, and 
 establish a new one : it is only asserting the common 
 right of all nations, to alter and amend their forms of 
 government. That is the right of revolution — the last 
 right to which oppressed nations resort. Until that 
 right be exercised, the Constitution must be perpetual. 
 
 The Constitution of the United States is a written 
 form of government, definite, clear, and explicit in its 
 details ; so that all may, know its principles and its re- 
 quisitions. It is the first example in history where 
 the sages of a nation, delegated by, and from among 
 the people, met together to form a constitution and 
 laws for their government. 
 
 The forms and principles of most other governments 
 have been constantly changing with the character of 
 the times, and with the varying opinions and manners 
 of the people. The}^ have been the results of chance 
 more frequently than of design, and their constitutions 
 €ire to be learned only from thejr history. 
 
 The English Constitution is not found in any one 
 written article, but consists of acts of Parliament, de- 
 cisions of courts of law, and immemorial usages. 
 
 According to the theory of the British government, 
 the English Constitution may at any time be abroga- 
 ted by Parliament : — Parliament being absolutely om- 
 nipotent. But the theory of the American government 
 
 What is said of the form of tlis Constitution of the United States, as com- 
 pared with the Constitutions of other governments 1 
 Of what does the Engiish Constitution consist 1 
 
POLITICAL KJTOV/LEDGE. 39 
 
 is widely different from this ; for the Constitution is 
 the original act of the people themselves ; and they 
 aloncj and not Congress,, can alter it. 
 
 Common Law — comprises those principles, usages, 
 and rules of action, which do not rest for their authority 
 upon the positive will of the Legislature. , In other 
 words, it consists of those customs and rules to which 
 time and usage have given the sanction of law. 
 
 Of such, it is plain, must be the great body of the 
 laws of every people ; for the rules of business and the. 
 usages of society are so variable and complicated as 
 to be incapable of being governed wholly by statute law. 
 
 It was remarked by Lord Hale, that " the origin of 
 the common law is as undiscoverable as the head of the 
 Nile," it consisting of those scattered maxims and cus- 
 toms which have existed " time whereof the memory of 
 man runneth not to the contrary." 
 
 The English common law has been generally adopt 
 ed in this country, subject however to some few modi 
 fications. 
 
 In some cases differences of circumstance and situa 
 tion have introduced new customs in this country 
 since the Revolution, that were unknown in England 
 and^ others have since arisen there which are here un 
 
 What power has Parliament in changing the British Government, and how 
 compared with the American Congress 1 
 What is Common Law ^ 
 
 Of what must he the great body of the laws of every people 1 
 What has been said of the origin of the common law 1 
 From whence has the common law of this country been derived 1 
 To what modifications has it been subject 1 
 
40 ELEMENTS OF 
 
 known. But with this qaalification the present com- 
 mon law of England is that of the several American 
 States with the exception of Louisiana, which, on ac- 
 count of its French origin and population, is governed 
 by the French or Roman law. 
 
 Statute Law — is the express written will of the 
 Legislatwe. Thus the statutes of New York are the 
 laws enacted by the Legislature of New York. The 
 common law in the United States is modified by the 
 statutes of Congress, and by the Legislatures of the 
 States. The statutes of Congress relate chiefly to the 
 promotion of specific national objects ; and in general 
 do not in any way change the common law. 
 
 The statutes of the State Legislatures, sometimes, 
 although seldom, alter the common law. Their object 
 is chiefly to define and establish the principles of com- 
 mon law, — to provide for the protection of rights and 
 the redress of wrongs, and to establish and regulate the 
 various departments of State government. 
 
 When the statute declares in what manner an act 
 must be performed, it must be performed in the mani^er 
 specified, or it will not be binding in law. Thus if the 
 statute declares that a will shall be made in a certain 
 form, it will not be valid if executed in any other form. 
 The statute laws must be consistent with the Constitu- 
 
 What is the common law of Louisiana ? 
 What is Statute Law 1 
 How is tlie common law modified 1 
 To what do the statutes of Congress chiefly relate 1 
 What are the several objects of the statutes of the State Legislatures ? 
 How must the statutes be performed; and with what must they be consis- 
 tent 1 
 
POLITICAL KN(fWLEDGE. 41 
 
 tion : for the Constitution being i\\Q fundamental law, 
 created by the people themselves, all other laws are in- 
 ferior to it. 
 
 Statute law is superior in force to common law ; and, 
 wherever they are inconsistent with each other, the 
 latter gives place to the former. 
 
 A Corporation — is defined to be a hody-j^oUtic, hav- 
 ing a common seal. It is an artificial or political per- 
 son, maintaining a perpetual succession by means of 
 several individuals united in one body, through a com^ 
 men seal. 
 
 Corporations have a legal immortality, except so far 
 as they are limited by the law of their creation. They 
 were originally created for purposes of charity, trade, 
 or education; but are now used for all purposes in 
 which it is wished to transmit a con^non property. 
 
 Thus, all banks, railroad companies, and chartered 
 societies, are examples of corporations. 
 
 Charter — is the act creating the corporation, or 
 separate government; or the privileges bestowed upon 
 a community, or a society of individuals. It is derived 
 from the Latin term cliarta, signifying a writing. 
 
 A Party — is any number of persons confederated by a 
 similarity of objects and opinions in opposition to others. 
 Illustrations of this may be found in all countries. 
 
 Wliich is superior, Statute or Coiumon Law 1 
 
 What i» a Corporation 1 
 
 For what purposes were Corporations originally created, and for what are 
 they now used 1 
 
 What are examples of Corporations 1 
 
 What is a Charter 1 From what is the term derived ? 
 
 What is a Party 1 What examples of parties in England ? In France I 
 And oil the contment of Europe 1 
 
 4* 
 
42 ELEM^Urs'TS OF 
 
 In Eiiglandf the whigs and tories are two great par- 
 ties, Yvhich have long divided the nation. 
 
 In France, during the revolution, the jacobins and 
 royalists Vv^ere violently opposed to each other. 
 
 On the continent of Europe, there have long been the 
 parties of the liberals and absolutists. The former are 
 advocates of republican, and the latter of monarchical 
 principles. 
 
 In the United States, the federal and democratic 
 parties divided the country till the termination of the 
 last war. 
 
 A Faction — is any number of persons, whether 
 majority or minority, confederated by some common 
 motive, in opposition to the rights of other persons, or 
 to the Interests of community. 
 
 The difference i>etween 'party and faction, then, is, 
 that the former is a difference of principle, and is 
 founded on a general or public object ; the latter may 
 have anymotive, however personal or selfish, and be di- 
 rected towards any end, however little connected with 
 the public welfare. 
 
 Thus, two divisions of the people, differing as to the 
 manner in which the government shall be administered, 
 are parties; but a section whose object is to keep one 
 portion of the people from the enjoyment of power, or 
 to aggrandize an individual, or to divide among them- 
 selves all the offices of state, is Vi faction. 
 
 What is a Faction 1 What is the difference between Party and Faction 
 Esample 1 
 
PART SECOND 
 
 CONSTITUTIONAL LAW. 
 
 Origin of the Constitution of the United States. 
 
 The continent of North America was chiefly settled 
 by emigrants from Great Britain, who came out as 
 colonists of the mother country. 
 
 Many of them had fled from England, to avoid the per- 
 secution which they incurred by advocating principles 
 in opposition to the established religion, and, voluntarily 
 nbandoning the comforts and luxuries of home, they 
 were willing to encounter the dangers and privations of 
 a v/ilderness, that they might enjoy greater liberty of 
 conscience, and a more simple and a purer form of 
 worship. 
 
 Others were induced by the thirst for novelty and 
 the desire of adventure, and some were sent out by the 
 government to form settlements and secure possession 
 of the country. 
 
 But they still considered themselves subjects of 
 Great Britain, and submitted to the jurisdiction of her 
 laws. 
 
 In some parts of the country they were left for a 
 while to govern themselves, and adopted democratic 
 forms of government ; in other parts the lands were 
 
44 CONSTIrUTION OF THH 
 
 granted by charter to individuals, who formed settle- 
 ments and regulated the governments of their respec- 
 tive colonies ; and in other parts governors were ap- 
 pointed by the crown. 
 
 Difficulties soon arose between the American colo- 
 nies and the mother country, which continued to in- 
 crease during a period of more than one hundred and 
 fifty years, until the colonies, being harassed by re- 
 peated injuries and usurpations, and by the exercise of 
 an unwarrantable jurisdiction over them, were obliged 
 to resort to arms in defence of their rights, and to dis- 
 solve their allegiance to the British crown. 
 
 A form of government was then necessary, and 
 " Articles of Confederation" were adopted, under which 
 the Revolution was brought to a happy termination. 
 But the Articles of Confederation being a mere league 
 between the several States, were found to be a very in- 
 efficient form of government, and the necessity of re- 
 vising the system soon became apparent. 
 
 In 1787, delegates appointed by the several States 
 for this purpose met at Philadelphia ; the result of 
 -whose deliberations was the adoption by them, and the 
 ratification by the States, of the present Constitution, 
 which, since that period, has continued in successful 
 operation. 
 
 The importance of a knowledge of the principles of 
 the Constitution, not only to every one who aspires to 
 the character of a gentleman and a scholar, but to 
 every citizen of the Republic, however humble his sta- 
 tion, is at once evident, from the very system of the 
 government under which we live — a goverment in 
 
UNITED STATES. 45 
 
 which the people are the rulers — a government in 
 which every citizen is a legislator, and may aspire to 
 the highest offices within the gift of the people. 
 
 The Constitution of the United States is the plan of 
 the first civil government ever established upon the 
 genuine basis of freedom, and its principles should be 
 studied both on account of their pre-eminent excellence, 
 and because an acquaintance with them will better 
 enable a person to fulfil those duties which, in a free 
 government, he may be called to discharge. 
 
46 CONSTITUTION OF THE 
 
 CONSTITUTION OF, THE UNITED STATES. 
 
 PREAMBLE.^ 
 
 We, the people of the United States, in order to form 
 a more perfect union, establish justice, insure domestic 
 tranquillity, provide for the common defence, promote 
 the general welfare, and secure the blessings of liberty 
 to ourselves and our posterity, do ordain and establish 
 this Constitution for the United States of America. 
 
 ARTICLE. I. 
 Of the Legislature. 
 
 SECTION I. 
 
 All legislative'^ powers herein granted shall be vested 
 in a congress^ of the United States, which shall consist 
 of a Senate and House of Representatives. 
 
 ^A preamble is a preface or introduction, the object of which 
 is to announce the character and design of the work to which 
 it is prefixed. 
 
 The preamble to the Constitution asserts that the power which 
 formed the Constitution resides in the people, and that the oh 
 jects of the Constitution are to secure the rights, and to pro. 
 vide for and promote the general welfare of the people. 
 Section 1st. 
 
 ^Legislative power is the law-making power. Thus, in a 
 Republic the Legislature is that branch of the government in 
 which the people have vested the power of making laws. 
 
 '^Congress is a meeting for the settlement of national affairs, 
 
 What is the object of the Constitution, as expressed in the preamble 1 
 What is a preamble 1 
 
 Art. 1st.— In what is the legislative power vested 1 What is legislativ* 
 power 1 What is a Congress 1 
 
UNITED STATES. 47 
 
 SECTION II. 
 
 First Clause. — The House of Representatives shall 
 bs composed of members chosen every second year by 
 
 whether relating to one or more nations. In Europe a confer, 
 ence of different powers by their ministers is called a Congress. 
 In the United States the National Legislature is called the Con, 
 gress. 
 
 The object in dividing the legislative power between two 
 bodies, is to render measures less precipitate, and combine vir- 
 tue, wisdom, and experience. A hasty decision, or an unwise 
 law, is not so likely to be passed when the decisions of one 
 house are subjected to a jealous and critical review in the other. 
 
 The members of the House of Representatives coming direci;- 
 ly from the people, will naturally be retained within their influ- 
 ence ; while the Senate, being chosen for a longer period, and 
 by the Legislatures of the States, will be less dependent upon 
 the people, and consequently farther removed from the action of 
 popular passion. It is the same principle which regulates the 
 distribution of legislative power in Great Britian and in France, 
 So also the legislative power of the State governments is simi- 
 larly vested in tv/o houses. . ^ 
 
 Section 2d. — First Clause. 
 1, A representative is chosen for two years. In England mem- 
 bers of the House of Commons are chosen for seven years. The 
 object in having frequent elections, is to make the reprcsenta . 
 live more directly responsible to the people, and to have the 
 views and interests of the people represented ; yet its effect is 
 
 What is the object in dividing the legislative power between two bodies 1 
 Sec. 2d. — 1st Clause. — Of vv'hom is the House of Representatives com- 
 posed 1 
 
 What is the object in having frequent elections 1 And what, further 
 more, is its effects 1 
 
48 CONSTITlJTlOi'f OP THE 
 
 the people of the several States, and the electors* in 
 each State shall have the qualifications reijjisite for 
 electors of the most numerous branch of the State 
 Legislature. 
 
 Second Clause. — No person shall be a representative 
 who shall not have attained to the age of twenty-five 
 years, and been seven years a citizen of the United 
 
 also to render the representative less independent, and place him 
 more under the influence of party and sectional interest. Vir- 
 tue and intelligence in tlie people are the only means that will 
 secure the s.ime qualities in their representatives ; and while the 
 people remain virtuous and intelligent, no danger can arise from 
 frequent elections. 
 
 ''■An elector is one who has a vote in the choice of an officer. 
 " The electors in each State," here spoken of, are those who are 
 entitled, by the laws of the State in which they reside to vote 
 for members of the most numerous branch of the State Legisla- 
 ture ; consequently, those who are entitled to vote for members 
 of this branch of the State Legislature, may vote for members 
 of the House of Representatives, And as the right of suffrage 
 is now almost universal to American citizens of twenty-one 
 years of age, nearly all have a voice in the choice of their 
 rulers. 
 
 Second Clause. 
 It has been decided that a man residing at the seat of govern- 
 ment in his official capacity, does not cease to be a legal inhabi- 
 tant of the State of which he was a citizen ; consequently, such 
 person is entitled to all the privileges of citizenship, and is eligi- 
 ble to an office in the State from which he came. 
 
 What are the qualifications of electors of Representatives 1 What is an " elec- 
 tor!" Who are the electors spoken of in this clause of the Constitution % 
 
 2d Clause. — What qualifications are required of a representative 1 What is 
 <jaid of the citizenship of a man resid ng officially at the seat of government 1 
 
UNITED STATES. 49 
 
 States, and who shall not, when elected, be an inhabitant 
 of that State in which he shall be chosen. 
 
 Third Clause, — ^Representatives and direct taxes 
 shall be apportioned among the several States which 
 may be included within this Union, according to their 
 respective numbers, which shall be determined by ad- 
 ding to the whole number of free persons, including 
 those bound to service for a term of years, and, exclu- 
 ding Indians not taxed, three fifths of all other persons. 
 The actual enumeration shall be made within three 
 fears after the first meeting of the Congress of the 
 
 Third Clause. 
 
 The appointment of representatives was one of the greatest 
 difficulties the framers of the Constitution had to encounter. 
 The smaller States claimed a right, as independent sovereign, 
 ties, to an equal share in the General Government ; while the 
 larger ones insisted upon having an influence proportioned to 
 the number of their inhabitants. But a compromise was finally 
 effected, by wliich the larger States were allowed their just 
 share of influence in one house, and the equality of the smaller 
 States was recoo-ajved and admitted in the other. 
 
 The representai^ -population is not the whole population of 
 the United States ; for, after including all free persons, exclud- 
 ing Indians not taxed, it includes " three fifths of all other per- 
 sons." The " other persons" here mentioned are slaves, conse- 
 quently the slaveholding States have a representation for three 
 fifchs of the whole number of slaves. Thus, the citizens of 
 slaveholding States have, individually, greater political power 
 than the citizens of noti-slaveheldins: States ; but this was a ne- 
 
 M Clause.— Row are representatives and direct taxes apportioned among 
 the States 1 How often must the citizens be enumerated for this purpose "? 
 What difficulty had the framers of the Constitution to encounter in the ap- 
 pointment of representatives 1 "What compromise was effected ? Who are 
 .5 
 
60 CONSTITUTION OF THE 
 
 United States, and within eveiy subsequent term of tcK 
 yearsy in such a manner as they shall by law direct. 
 
 The number of representatives shall not exeeed one 
 for every thirty thousand, bet eaeh State shall have at 
 least one representative, and until such enumeration 
 .shall be made, the State of New-Hampshire shall be en* 
 titled to choose three, Massachusetts eight, Rhode Island 
 and Providence Plantations one, Connecticut five, New- 
 York six. New- Jersey four, Pennsylvania eight, Dela» 
 ware one, Maryland six, Tirginia ten. North Carolina 
 five, South Carolina five, and Georgia three. 
 
 Fourth Clause. — When vacancies happen in the; 
 
 cessary- result of the compromise, without which it is probable 
 the Union would never have been formed. But direct taxes are 
 also to be apportioned by the same rule as representation, so that 
 the same cause which increases their influence in the National' 
 Legislature, subjects them to the necessity of making larger 
 contributions to the national treasury when that mode of taxa= 
 tion is resorted to. 
 
 The ratio of representation is a common divisor of the num- 
 bers in the several States, and not in the whole Union. The- 
 ratio has been changed from time to time by Congress^ In 1790,^ 
 the period of the first census,, the ratio, or the number of citi- 
 zens entitled to a representative, was 33,000, and the whole 
 number of representatives was 106. In 1830, the ratio wa& 
 47,700, and the. whole number of representatives 249. 
 
 Fourth Clause. 
 The necessity for this clause frequently arises by virtue of the 
 death or regign5j,tion of members of Congress. 
 
 ^e " other persons" spoken of in this clause, and what is said of the repre^^ 
 sentation of the slaveholding States 1 What is understood bj' the ratio of 
 representation 1 What was the ratio of representation in 1830 ? 
 
 Wl Clause.—Wbf't ia the fn-^v!h f'n,,K8 1 
 
UNITED STATES 51 
 
 representation from any State, the executive authority 
 thereof shall issue writs of election to fill up such va- 
 cancies. 
 
 Fifth Clause. — ^The House of Representatives shall 
 choose their Speaker, and other officers, and shall have 
 the sole power of impeachment.^ 
 
 Fifth Clause. ' 
 The Senate aI§o choose theii* own officers, with the exception 
 of the Speaker. The Vice-President of the United States is 
 Speaker of the Senate. 
 
 ^Impeachment is a public accusation, by a body authorized to 
 make it. - 
 
 The power of impeachment, as vested in the House of Rep- 
 resentatives, extends only to officers of the General Government. 
 This power is one of the most important under the Constitution. 
 It is the only mode in which the Judiciary is made responsible, 
 and it is a salutary and necessary check upon the President and 
 his officers. 
 
 The mode of impeachment is this : — The House pass a reso- 
 lution to impeach, arid then appoint a committee to manage the 
 impeachment, and prepare the articles of accusation. The 
 Senate, (upon which devolves the power of trying the person 
 impeached,) is then informed that such charges are preferred by 
 the House, and it then resolves that on a given day, the Senate 
 will sit as a Court of Impeachment. 
 
 In the meantime, the accused is summoned to appear and an. 
 swer, and as many subpoenas for witnesses arc issued as either 
 party may direct. At twelve o'clock, on the day of trial, the 
 
 5th Clause. — By whom is the Speaker of the House of Representatives 
 chosen 1 Who is Speaker of the Senate 1 What is impeachment 1 What 
 officers may be impeached by the house 1 What is the mode of impeach- 
 ment? 
 
52 CONSTITUTION OF THE 
 
 SECTION III. 
 
 First Clause. — The Senate of the United States 
 shall be composed of two Senators from each State, 
 
 Secretary of the Senate administers an oath to the President of 
 the Senate, that " he will do impartial justice, according to the 
 Constitution and law^ of the United States." The same oath 
 is then administered by the President, to each Senator present. 
 
 Witnesses are examined and cross-examined in the usual 
 manner. Questions proposed by Senators are reduced to 
 writing, and put by the President. Counsel are then heard 
 for the respective parties ; all motions are addressed to the 
 President, and decisions are made by ayes and nays, without 
 debate. 
 
 After the case has been fully considered, the question is pro- 
 pounded by the President of the senate, to each 'individual 
 member, whereupon the member rises and answers guilty, or 
 not guilty, as his opinion is. It requires two thirds to make a 
 conviction. 
 
 If the accused be found guilty, the Senate proceeds to fix and 
 declare the punishment. 
 
 State officers may be impeached in a similar manner by the 
 Legislatures of the several States. 
 
 Tills mode of impeachment and trial, is derived from the 
 Britisli Parliament, in which the Commons have the sole power 
 of impeachment, and the House of Lords the power of trial. 
 
 Section 3d. — First Clause. 
 In the Senate, each State is equally represented. It has been 
 .said that this feature of the Senate, is an evidence of the sepa- 
 
 Sec. 3d.— 1st Clause.— 'Who compose the senate ? For how long a term 
 are Senators chosen 7 As each state is equally represented in the Senate, is 
 not this an evidence of the separate and independent existence of the States? '5 
 
 
UNITED STATES. 53 
 
 chosen by the Legislature thereof, for six years ; and 
 each Senator shall have one vote. 
 
 Second Clause. — Immediately after they shall be as- 
 sembled, in consequence of the first election, they shall 
 be divided, as equally as may be, into three classes. 
 
 rate and independent existence of the States. Yet the contrary 
 is shown by the fact, that the Senate votes not by States, but 
 by persons. Hence the members from a given State, may and 
 often do vote on opposite sides of a question. 
 
 The true theory of our government is, that our Senators and 
 Representatives should legislate for the whole Union, and not 
 exclusively for the interests of a particular section. It is, how- 
 ever, supposed that each will be best acquainted with the inter- 
 ests of his immediate constituents ; that he will represent their 
 interestSj and make known their wishes, and then endeavor, as 
 far as possible, to unite the interests of each section in the com- 
 mon welfare. 
 
 The Senators being chosen by the State Legislatm-es, it is 
 settled by the practice of most of the States, that they may be 
 chosen by joint ballot of both houses, and not necessarily by 
 the Legislature, in its official capacity ; each house having a 
 negative on the other. 
 
 Second Clause. 
 Care is taken that but one vacancy shall occur at the same 
 time, in the representation of any one State. The Governor of 
 a State can make no appointment of a Senator, in anticipation 
 of a vacancy. The vacancy must exist when the appointment 
 is made. 
 
 What interests should be regarded in the legislation of Congress 1 What is 
 the manner of choosing Senators by the State Legislatures 1 
 
 '2d Clause.— Row were the Senators divided after their first electi( n 1 
 
 How, if the vacancy be anticipated 1 
 
 5* - " 
 
54 CONSTITUTION OF THE 
 
 The seats of the Senators of the first class, shall be 
 vacated at the expiration of the second year ; of the 
 second class, at the expiration of the fourth year ; and 
 of the third class, at the expiration of the sixth year ; 
 so that one third may be chosen every second year ; 
 and if vacancies happen, by resignation or otherwise, 
 during the recess of the Legislature of any State, the 
 Executive thereof may make temporary appointments, 
 until the next meeting of the Legislature, which shall 
 then fill such vacancies. 
 
 Third Clause, — No person shall be a senator who 
 shall not have attained to the age of thirty years, and 
 been nine years a citizen of the United States, and 
 who shall not, when elected, be an inhabitant of that 
 State for which he shall be chosen. 
 
 Fourth Clause. — The Vice-President of the United 
 
 Third Clause. 
 The age required for a member of the House of Representa. 
 tives, is only tvventy-five years. The nature of the Senatorial 
 trust requires, in many particulars, greater maturity of judg- 
 ment, and more extensive information, and therefore renders this 
 distinction very proper. 
 
 Fourth Clause. 
 The Vice-President has the power of preserving order in the 
 Senate, and all questions of order are decided by him, without 
 debate, subject to appeal to the Senate. 
 
 How are vacancies supplied whicli happen during the recess of the Legis- 
 lature of a State 1 
 
 2d Clause. — WhdA qualifications are requisite for a Senator ? 
 
 Ath Clause. — W^ho is President of the Senate, and when only may he vote 1 
 What are the powers of the Vice-President 1 
 
rNITED STATES. 55 
 
 'States shall be President of the Senate ; but shall have 
 no vote, unless* they be equally divided. 
 
 Fifth Clause. — The Senate shall choose their other 
 officers, and also a President pro tempore, in the absence 
 of the Vice-President, or when he shall exercise the 
 office of President of the United States. 
 
 Sixth Clause. — The Senate shall have the sole power 
 to try all impeachments. When sitting for that pur- 
 pose, they shall be on oath, or affirmation. When the 
 President of the United States is tried, the Chief Justice 
 shall preside ; and no person shall be convicted with- 
 out the concurrence of two thirds of the members 
 present. 
 
 Seventh Clause. — Judgment, in case of impeach- 
 ment, shall not extend farther than to a removal from 
 office, an^ disqualification to hold and enjoy any office 
 of honor, trust, or profit, under the United States; 
 but the party convicted shall, nevertheless, be liable 
 and subject to indictment, trial, judgment, and punish- 
 ment, according ta law. 
 
 Fifth, Sixth, and, Seventh Clauses, 
 In England, the judgment upon impeaclimenls, extends not 
 vonly to removal from office, but to the whole penalty attached 
 hj law to the oifenee. The House of Lords may, therefore, in- 
 flict capital punishment, banishment, or forfeiture of goods, ac- 
 cording to its discretion. 
 
 ■5th Clause.— How are the ether officers of the Senate choseu 1 
 
 6tA Clduse. — Who try impeachments 1 Who presides when the President 
 
 <jf the United States is tried "? 
 Ith Clause.— In the trial by impeachment, how far may judgment extend 1 
 
 How is it in England 1 
 
56 CONSTITUTION OF THE 
 
 SECTION IV. 
 
 First Clause.— The times, places, and manner of 
 holding elections for Senators and Representatives, 
 shall be prescribed, in each State, by the Legislature 
 thereof; but the Congress may, at any time, by law, 
 make or alter such regulations, except as to the places 
 of choosing Senators. 
 
 Second Clause,— The Congress shall assemble at 
 least once in every year, and such meeting shall be on the 
 first Monday in December, unless they shall, by law^ 
 appoint a different day, 
 
 SECTION V. 
 
 First Clause. — Each house shall be the judge of the 
 election, returns, and qualifications of its own mem- 
 bers, and a majority of each shall constitute a quorum 
 to do business ; but a smaller number may adjourn from 
 
 Section 4:th. — First Clause. 
 Although Congress has the power to appoint the times and 
 modes of choosing Senators and Representatives, this power has 
 never been exercised by them. It might be well to have the 
 times and modes of election uniform ; but they are now various 
 in the several States^ 
 
 Section Fifth. — First, Second, and Third Clauses. 
 It has been a point of serious controversy, whether the Senate 
 
 Sec. 4th. — 1st Clause. — Who determine the time, places, and manner oi 
 holding elections for Senators and Representatives 1 What power has Con- 
 gress over the matter 1 
 
 2d Clause. — How often must Congress assemble 1 
 
 Sec. 5th. — 1st Clause. — Who is to judge of the validity of the elections and 
 qualifications of members of Congress 1 
 
UNITED STATES. 57 
 
 day to day, and may be authorized to compel the at- 
 tendance of absent members in such manner, and un- 
 der such penalties, as each house may provide. • ^ 
 
 Second Clause. — Each house may determine the 
 rules of its proceedings, punish its members for disor- 
 derly behavior, and, with the concurrence of two-thirds, 
 expel a member. 
 
 Third Clause, — Each house shall keep a journal of 
 its proceedings, and, from time to time, publish the 
 same, excepting such parts as may, in their judgment, 
 require secrecy ; and the yeas and nays of the mem- 
 can, without violating the third clause of this section, expunge 
 from the journal, acts passed during a previous session. 
 
 The clause, " to keep a journal," would seem to imply, that 
 the journal should be legible, and should in no manner be de- 
 faced ; otherwise, if black lines may be drawn, and words written 
 across a recorded resolution, at the pleasure of a succeeding 
 Senate, the clause in the Constitution is a nullity. 
 
 It has been said, that a recorded resolution may be " expunged"' 
 from the journal, without being " destroyed" — the journal is pub- 
 lished, and the resolution also, as it was passed. But if, in any 
 succeeding act, reference ' should be made to the journal, the 
 best, and in all cases the ultimate authority, would be the jour 
 nal as "kept" by the House. 
 
 It would seem a dangerous precedent to establish, that one 
 Congress might erase from the journal whatever it deemed un- 
 wise, unjust, or unconstitutional in the legislation of former 
 houses. Where the acts of a former Congress were deemed 
 anjust, or unconstitutional, there could certainly be no constitu.. 
 'ional objection to the introducing of counter resolutions. 
 
 2(1 ClaiLse.— How may a member of either house be expelled 1 
 3i CZaitse.— What duty is enjoined upon each house, relative to a journal 
 »f its proceedings 1 What controversy has arisen from this clause 1 
 
58 CONSTITUTION OP THE 
 
 bers of either house, on any question, shall, at the de- 
 sire of one fifth of those present, be entered on the 
 jottrnal. 
 
 Fourth Clause. — 'Neither house, during the session 
 of Congress, shall, without the consent of the other, 
 adjourn for more than three days, nor to any other 
 place than that in which the two houses shall be sit- 
 ting. 
 
 SECTION VI. 
 
 First Clause.— -The Senators and Representatives 
 shall receive a compensation for their services, to be 
 ascertained by law, and paid out of the Treasury of 
 the United States. 
 
 They shall, in all cases, except treason,^ felony,^ and 
 breach of the peace,^ be privileged from arrest during 
 
 Section 6th. — First Clause. 
 
 ^ Treason consists in one or more of these three things — levy- 
 ing war against the United States — adhering to their enemies- 
 giving them aid and comfort. The war must be actually levied, 
 to constitute treason ; a conspiracy to levy war, is not treason. 
 
 ^Felony, according to the English law, is any crime which 
 occasions a forfeiture of lands and goods. But felony, in com- 
 mon speech, signifies any capital offence. 
 
 '^The term "breach of peace," includes all indictable offences. 
 
 For a speech, merely delivered in the House, a member can- 
 not be questioned ; yet, if he publish the speech, and it contain 
 a libel, he is liable to an action for it as in any other case. 
 
 A.th Clause. — What length of time may either house adjourn, without con- 
 sent of the other? 
 
 Sec. 6th. — 1st Claiise. — ^In what cases are Senators and Representatives 
 privileged from arrest 1 What is treason 1 Felony 1 Breach of the peace 1 
 
UNITED STATES. 59 
 
 their attendance at the session of their respective 
 liouses, and in going to and returning from the same ; 
 and, for any speech or debate, in either house, they 
 shall not be questioned in any other place. 
 
 Secand Clause. — ^No senator or Representative shall, 
 during the time for which he was elected, be appointed 
 to any civil office, under the authority of the United 
 States, which shall have been created, or the emolu* 
 raeiits v/hereof shall have been increased during such 
 time ; and no person, holding any office under the Uni- 
 ted States, shall be a member of either house, during his 
 continuance in office. 
 
 SECTION VII. 
 
 First Clause. — AM bills for raising revenue, shaU 
 originate in the House of Representatives; but the 
 Senate may propose or concur with amendments, a« on 
 other bills. 
 
 Section Ith. — First Clause. 
 
 Bills for raising revenue do not include all bills whicTi bring 
 ■money into the Treasury. Thus, bills for the sale of public 
 3ands, for regulating the Post-ofRce, and Mint, are directly pro- 
 iductive of money, and may originate in either house. The 
 ?neaning of the phrase is confined to bills to levy taxes. • 
 
 This provision is borrowed from the British Constitution, by 
 which bills for raising revenue must originate in the House of 
 Commons, whose members are the exclusive representatives of 
 
 2d Clause.— M7hdX restrictions are placed upon Senators and Representa- 
 tives ■? 
 
 Sec. 7th'.— 15< Clause.— Whete must bills for raising revenue originate? 
 What do " bills for raising revenue" include % From what is this :j»ovisioa 
 in the Constitution borrowed^ 
 
60 CONSTITUTION OF THE 
 
 Second Clause, — Every bill which shall have passed 
 the House of Representatives and the Senate, shall, be- 
 fore it become a law, be presented to the President of 
 the United States ; if he approve, he shall sign it ; but 
 if not, he shall return it, with his objections, to that 
 house in which it shall have originated, who shall 
 enter the objections at large on their journal, and pro- 
 ceed to reconsider it. 
 
 the people. So tenacious of this privilege are the Commons, 
 that the Peers are not even allowed to amend a money bill ; 
 they must reject it, or adopt it, as it has been framed by the 
 Commons. 
 
 Second Clause. 
 
 The ordinary mode of passing laws, is, briefly, as follows : — 
 
 A member of either house, wishing to propose a bill, gives at 
 least one day's notice of his intention ; and, on the day specified 
 by him, makes a motion accordingly. If the motion prevails, 
 the bill is read. On some other day, the bill is called up, con- 
 sidered, and passed to a second reading. Amendments are then 
 in order. 
 
 In the House of Representatives, bills, after being twice read, 
 are committed to a committee of the whole house, when the 
 Speaker leaves the chair, a^d takes part in the debate, as an or- 
 dinary member, and a chairman is appointed by him, to preside 
 in his stead. 
 
 Having been a third time read, the bill is passed, and trans- 
 mitted to the other house, where it goes through a similar form ; 
 though in the Senate there is less formality, and bills are often 
 
 M-Clause.—'Wh^t is necessary in order that a bill, passed by both houses, 
 shall become a law 1 What if the President refuse to sign the bill 1 What 
 is the ordinary mode of passing laws in both houses 1 
 
''^' UNITED STATES. 61 
 
 If, after such reconsideration, two thirds of that 
 house shall agree to pass the bill, it shall be sent, to- 
 gether with the objections, to the other house, by which 
 it shall likewise be reconsidered ; and if approved by 
 two thirds of that house, it shall become a law. 
 
 But, in all such cases, the votes of both houses shall 
 be determined by yeas and nays ; and the names of the 
 persons voting for and against the bill, shall be entered 
 on the journal of each house respectively. 
 
 committed to a select committee, chosen by ballot, instead of a 
 committee of the whole house. 
 
 These regulations are rules of convenience, adopted by the 
 two houses, and may be changed by them at pleasure. If a bill 
 be not presented to the President, more than ten days before tho 
 end of the session, he has it in his power to defeat it by simply 
 withholding his signature. 
 
 The power given to the President, of placing his veto upon 
 laws passed by Congress, was adopted after much discussion and 
 great opposition. It was designed as an additional security 
 against the enactment of improper laws, and as a defence of the 
 Executive against the encroachments of the Legislature. 
 
 Should the Presi-dent abuse the veto, it is presumed the Con- 
 gress would pass the bill in question, by the constitutional ma- 
 jority of two thirds. The power of the President to return bills, 
 with his objections, has been repeatedly exercised. 
 
 The King of England has an absolute negative upon all bUls 
 passed by Parliament ; but, for more than a ceittury, he has not 
 
 What if the bill be not returned within ten days after its presentation 
 to him'? 
 
 Wliat was tlie design in giving the President the power of placing his veto 
 upon laws passed by Congress 1 What remedy, if the President greatly abuse 
 this power 1 What power has the King of England in similar cases, and la 
 that power often exercised 1 
 
 6 
 
62 CONSTITUTION OF THE 
 
 If any bill shall not be returned by the President 
 within ten days, (Sundays excepted,) after it shall have 
 been presented to him, the same shall be a law, in like 
 manner as if he had signed it, unless the Congress, by 
 their adjournment, prevent its return, in which case it 
 shall not be a law. 
 
 Third Cla,use.— 'Every order, resolution, or vote, to 
 which the concurrence of the Senate and House of 
 Representatives may be necessary, (except on a ques- 
 tion of adjournment,) shall be presented to the President 
 of the United States ; and before the same shall take 
 effect, shall be approved by him ; or, being disapproved 
 by him, shall be repassed by two thirds of the Senate 
 and House of Representatives, according to the rules 
 and limitations prescribed in the case of a bill. 
 
 exercised this power — -the influence of the crown being sufficient 
 to arrest an obnoxious measure in its passage through Parliament. 
 
 Third Clause. 
 
 The "orders, resolutions, and vote," here referred to, are not 
 those which relate to the separate and internal government of 
 each house. The President has no right to interfere with the 
 sessions of Congress, unless in case of disagreement between 
 the two houses, in which case he may adjourn them. 
 
 In this respect, his power is widely different from that of the 
 King of Engljgid, who may adjourn or dissolve Parliament at 
 his pleasure. 
 
 In what case might the President defeat a bill passed by two thirds of both 
 houses 1 
 
 * 3d! Clause. — Where orders, resolutions, &c. require the concurrence of both 
 houses, what is necessary in order for them to take effect I When only may 
 the President interfere with the- sessions of Congress 1 How (loes his powerj 
 In this respect, differ from that of the King of England ? 
 
UNITED STATES. 63 
 
 SECTION VIII. 
 
 Of the Powers of Congress, 
 
 First Clause. — The Congress shall have power — to 
 lay and collect taxes,a duties,^ imposts,c and excises ;<^ 
 to pay the debts and provide for the common defence and 
 
 Section 8th. — First Clause. 
 
 The clause divided by the semi-colon, lias been thought by 
 some to confer upon Congress two separate powers : one " to 
 collect taxes," «Stc. and the other " to provide for the general 
 welfare." But it -will hardly bear that construction. The pow- 
 er " to collect taxes," was given /or the purpose of providing for 
 the general welfare. Consequently Congress has not the power 
 " to lay and collect taxes," unless the general welfare require it. 
 
 * Taxes, are all contributions, whether of money or of com- 
 modities, imposed 1?y the government, upon individuals, for the 
 service of the State. But revenue is the money raised for the 
 uses of government, and may be derived frorh various sources, 
 as by the sale of public land, &c., or by taxation. Duties, im- 
 posts, and excises, are different kinds of taxes. 
 
 ^Duties, are taxes required by government, to be paid on the 
 importation, exportation, or consumption of goods. 
 
 '^Imposts, are taxes required by government, to be paid on 
 goods imported. 
 
 ^Excise, is a tax on commodities, wherever found : as, a tax 
 on the wares of the merchant, on the produce of the farmer, 
 &c. The term excise, in this country, has been applied to a tax 
 on domestic distilled liquors ; because this was the only excise 
 tax ever imposed by government, and was of short duration. 
 
 Sec. 8th. — 1st Clause. — What powers are conferred upon Congrv. by tha 
 first clause of this section 1 How has this clause been construed oy some i 
 What are taxes 1 Duties ■? Imposts ? Excises 7 '"^ 
 
64 CONSTITUTION OF THE 
 
 general welfare of the United States : but all duties 
 imposts, and excises, shall be uniform throughout the 
 United States. 
 
 This wa^ in- 1793, and the law became so odious as to excite 
 to acts of open insurrection, in the neighborhood of Pittsburg, 
 Pennsylvania. The display of a military force was necessary 
 to quell the insurgents. 
 
 There are two methods of taxation, direct and indirect. By 
 the former, the tax is assessed directly upon the individual, in 
 proportion to the property which he is known to possess. By 
 the latter, the tax is levied upon various goods imported from 
 foreign countries, viz : — upon tea, coffee, wines, broadcloths, &c.» 
 which taxes the citizen may avoid paying, by not using the 
 articles upon which they are imposed. 
 
 There is, however, a diversity of opinion in regard to the 
 policy of indirect taxation. It is alleged, in its favor, that the 
 people do not feel an indirect tax, and willingly pay it. This, 
 however, may be an objection. 
 
 In a republic, the people being the fountain of power, it would 
 seem more in harmony with the genius of such a government, 
 that the people sjiould know VjJiat they pay, and when and how 
 they pay it. 
 
 Indirect ta"':es are not levied in proportion to wealth. A per- 
 son worth a lillion of dollars, may avoid paying the tax, by not 
 using the article upon which it is imposed, while a poor man 
 may pay a greater amount of taxes. 
 
 A portion of the taxes paid by this method, does not accrue 
 to the government. By a duty of twenty-five cents per bushel 
 on imported wheat, the price of all wheat in New- York is liable 
 to be raised twenty-five cents per bushel, and government re. 
 
 What aie the two methods of taxation 1 What is said of indirect taxation 
 and what are the objections against it? What object is it sometimes sup- 
 posed to accomplish, separate from that of taxation 7 
 
UNITED STATES. 65 
 
 Second Clause, — To borrow money*on the credit of 
 the United States. 
 
 Third Clause. — To regulate commerce with foreign 
 
 ceives only tlie extra price paid upon imported wheat, while the 
 consumers pay into the hands of the producers, the extra price 
 upon American wheat ; thus one portion of the people is pay 
 ing into the hands of another, and not into the hands of govern- 
 ment. 
 
 Indirect taxes, therefore, do not fully answer the avowed 
 design of taxation. But, by some, they are supposed to answer 
 another end, often of greater importance :' — the protection and 
 encouragement of domestic industry. Duties upon foreign 
 cloths, raise the price of American cloths, and thus give sup- 
 port to domestic manufactures. 
 
 And, thus, a duty upon any foreign article of commerce, gives 
 better support to that class of citizens who are engaged in its 
 production or manufacture. (For the design and effects of jpro^ 
 tecting duties see Protecting Duties.) 
 
 Second Clause. 
 
 It is the frugal policy of the government, to tax the people no 
 farther than the necessities of the government demand. Hence, 
 in case of war, there being no money in the treasury to defray 
 the necessary expenses, a resort must be had to taxation, or 
 government must have the power of borrov/ing money on the 
 credit of the United States. 
 
 This power has been frequently exercised. In 1816, the 
 national debt amounted to upwards of one hundred and twenty 
 millions of dollars ; but, in 1834, the debt was not only extin- 
 guished, but a large surplus revenue had accumulated. 
 
 Third Clause. 
 The power to regulate commerce, comprehends the power to 
 
 What power is conferred by the second clause 1 
 Whence the necessity of this power 1 
 34 Clause. — What power is conferred by the third clause 1 
 6* 
 
66 CONSTITUTION OF THB 
 
 nations, and amofig the several States, and with tha 
 Indian tribes. 
 
 regulate navigation, and extends to every species of commercial 
 intercourse hetv<;een the United States and foreign nations, and 
 among the several States. 
 
 It does not, however, embrace the internal trade between man 
 and man, in different parts of the same State ; but Congress may- 
 interdict such trade between different States. 
 
 Under this clause, Congress has exercised the power of im- 
 posing duties upon foreign goods, for the protection of domestic 
 manufactures. 
 
 The exercise of this power by Congress, has been controvert- 
 ed by some, as unconstitutional. It is admitted by all, that duties 
 fnay be imposed upon any articles whatever, for the purpose of 
 revenue ; but some deny the power to impose these very duties, 
 if protection is the object. 
 
 It is difficult to see why this distinction should be made. The 
 result is the same in both cases, whether the power be exercised 
 for the purpose of revenue or protection. All duties imposed upon 
 foreign articles create a revenue, and also protect the domestic 
 manufacture of these articles. 
 
 If Congress impose duties upon foreign broadcloths, who shall 
 ^determine the constitutionality of the act ? For Congress has 
 only to declare revenue to have been its motive, and it has trans- 
 gressed no law. 
 
 It is thought it would be a better rule, to test the constitution. 
 ality of legislative acts, by their tendency and obvious effects, 
 and not by the motives of the legislators; for the effects of legis- 
 lation may be better known than the motives of the legislators. 
 And, where the effects are the same, (as they are in these two 
 cases,) tbe action must be equally constitutional. 
 
 But the Constitution also gives Congress power " to make all 
 laws which are necessary to promote the general welfare," I^ 
 
 What does the power " to regulate commerce" embrace? What kind of 
 trade does it not embrace 1 What power has Congress exercised under this 
 ciauusQ % What discussion has arisen upon this question ? 
 
UNITED STATES. 67 
 
 Fourth Clause. — To establish an uinform rule of 
 naturalization,^ and uniform laws on the subject of 
 bankruptcies,^ throughout the United States. 
 
 therefore, Congress deem the protection of domestic manufac 
 tures necessary to promote the general welfare, the Constitution 
 certainly gives the power to make laws for that purpose. 
 
 The question relative to such protecting duties, appears, then, 
 to be one of policy and not of right. 
 
 An Indian tribe, within the limits of a State, is not consider, 
 ed a foreign nation, but is entitled to sue in the courts of tho 
 United States. 
 
 Fourth Clause. 
 
 '■Naturalization, is the act by which a foreigner is made a 
 citizen. The law by which this is permitted, is called a natw^- 
 alization law ; and the acts by which a party avails himself of 
 this law, are the naturalization. 
 
 America is believed to be the only country, where a general 
 law is enacted for this purpose. In England, and most other 
 countries, it may be done, as a matter o? special favor ; but, even 
 then, the privilege never extends so far as to make a foreigner 
 eligible to the higher offices of State. 
 
 The States have no authority to pass laws of naturalization. 
 This is an exclusive power of* the United States. By acts of 
 Congress, on this subject, an alien of full age, may become a 
 citizen of the United States, after a residence of five years in 
 the country, upon complying with certain requisitions, among 
 which are, a renunciation of all allegiance to every foreign 
 prince and power, and a declaration, on oath or affirmation, that 
 he will support the Constitution of the United States. 
 
 The children of naturalized persons, if dwelling within the 
 United States, are considered citizens of the United States. 
 
 ^Bankruptcy, is the act of becoming a bankrupt. Bankrupt 
 
 How is an Indian tribe, within the hmitsof a State, considered with regard 
 to its nationality 1 
 
 Ath Clause. — What powers are conferred by the fourth clause ? What ia 
 naturalization 1 May the States pass laws of natural tzation 7 How may aa 
 
68 CONSTITUTION OF THE 
 
 Fifth Clause. — To coin money, regulate the value 
 thereof, and of foreign coin, and fix the standard of 
 weights and measures. 
 
 Sixth Clause. — To provide for the punishment of 
 
 and bankruptcy, are legal terms, signifying a particular kind of 
 insolvency, or failure to pay one's debts. In common speech, 
 one who cannot pay his debts, is a bankjupt ; but it is not so in 
 law. Thus, by the law of England, a bankrupt is a trader who 
 secretes himself, or does other acts tending to defraud his ere- 
 ditors. 
 
 There is now no national bankrupt law. Congress passed a 
 temporary bankrupt law in 1800, but the law was repealed in 
 1803. In the. absence of a general bankrupt law, the States 
 have passed bankrupt laws, which are valid only between the 
 citizens of the State by which the law was passed. Should 
 Congress pass a general law upon this subject, however, the 
 State laws would be void so far as inconsistent with it. 
 Fifth Clause. 
 
 The pov/er to coin money, has long been exercised, and the 
 Mint department has been established for that purpose. Any 
 person ma)?^ bring gold or silver to the mint to be coined, and 
 if it be of the standard value, it is, coined free of expense ; other- 
 wise, enough is retained^to pay the expense of coinage. 
 
 Congress has not yet passed any general law, fixing the stand- 
 ard of weights and measures ; but such a law would conduca 
 greatly to the accuracy of trade, and the convenience of com- 
 merce. 
 
 Sixth Clause. 
 
 Connected with the power to coin money, and regulate the 
 value thereof, Congress has the right " to provide for the punish, 
 ment of counterfeiting the securities and current coin of the 
 United States." 
 
 alien become a citizen ? W^hat is bankruptcy ? Have we any general bank- 
 rupt law 1 How is its place supplied ? 
 
 5th Clause. — W^Jiat powers are conferred by the fiftli clause ? 
 
 Uh Clause —What jiowcrs are conferred by the sixth clause 1 ' 
 
UNITED STATES. 69 
 
 counterfeiting the securities and current coin of the 
 United States. 
 
 Seventh Clause.— To establish post-offices and post- 
 roads. 
 
 It is of great importance that the laws regulating the cur- 
 rency, should be the same throughout the Union ; and as Con- 
 gress legislates for the whole people, the power is most properly 
 placed in their hands. 
 
 Seventh Clause. 
 
 To establish post-ofnces and post-roads, means simply, to 
 designate any road upon which the mail shall be carried, and 
 appoint, in any given place, a post-master. 
 
 Congress have, also, passed laws for the safety and speedy 
 transportation of the mail. Of such importance is the speedy 
 transmission of the mail considered, that even a stolen horse 
 attached to a mail stage, cannot be seized, nor the driver arrest, 
 ed on civil process, such as debts, &c., in such way as to obstruct 
 the mail ; but the driver may be arrested for.cr breach of the 
 peace. 
 
 Under this clause, and that of providing for the general wel- 
 fare, has arisen the question of Internal Improvements. Con- 
 gress have repeatedly passed laws and made appropriations for 
 internal improvements, in the construction of roads, canals, &:,c. . 
 and the improvement of water-courses ; but the constitutional 
 power has long been a subject of discussion, and is n.ot yet set- 
 tled. Legislative authority has invariably been in favor of the 
 constitutionality of the power», but the executive has been most- 
 ly against it. 
 
 During the administrations of Washington and the elder 
 Adams, the subject was little examined, and no executive opiu 
 
 1th CZawse.— "What powers are conferred by the seventh clause ? What isi 
 the meaning of the phrase, " to establish post-offices and post-roads 7" What 
 Important question has arisen under this clause 1 
 
70 CONSTITUTION OF THE 
 
 Eighth Clause, — To promote the progress of sci- 
 encQ and useful arts, by securing, for limited times, 
 
 ions were formally advanced. Both Mr. Jefferson and Mr 
 Madison denied the constitutionaHty of the power, bu>t recom 
 meiided the grant of such powers by the States, in the way pro 
 vided, by an amendment of the Constitution."^ Mr. Monroe, ir 
 his first message to Congress, declared his agreement with hia 
 predecessors, but after the passage of a resolution by Congress 
 affirming the power, he withdrew his opposition, and during his 
 administration appropriations for internal improvements greatly 
 increased. 
 
 Mr. John Quincy Adams strongly recommended and encour- 
 aged internal improvements ; and during his administration the 
 system seemed to have become a part of the permanent policy 
 of the country. Mr. Adams admitted the entire constitutionality 
 of the power to make internal improvements by the general 
 government. 
 
 Thus far, all the Presidents were in favor of the measures 
 themselves ; but some were opposed to them on constitutional 
 grounds, deeming it unsafe to exercise powers not expressly 
 granted. President Jackson, however, not only denied the con- 
 stitutionality of the power, but was opposed to the measures 
 themselves, upon the ground that the power of appropriating 
 money was unsafe and insufficient for tlie successful prosecution 
 of national works. 
 
 The Supreme Court has given no direct decision upon the 
 subject. It has, however,, decided that a contemporary exposi- 
 lion of the Constitution, practised and acquiesced in for a num- 
 ber of years, fixes the construction of the Constitution, and the 
 Court will not alter or shake it. It has also decided that the»-e 
 
 What were tlie opinions of the various Presidents upon the subject of in 
 temal improvements ? What decisions of the Supreme Court seem to affect 
 this question 1 
 
UNITED STATES. 71 
 
 to aathors and inventors the exclusive right to their 
 respective writings and discoveries, 
 
 is nothing in the Constitution of the United States which es 
 eludes incidental or imphed powers. This would appear t 
 show an inclination in the Supreme Court to sustain the powet 
 claimed by Congress. The power, although strongly opposea 
 by some, has long been exercised, and appears to be sanctioned 
 by public opinion. 
 
 Eighth Clause. 
 
 -By acts of Congress, " patents may be obtained for any new 
 and useful art, machine, manufacture, or composition of matter 
 n-ot known before the application." The term for which a patent 
 jnay be obtained is fourteen years. Copy-rights may be secured 
 for, twenty-eight years, and at the expiration of that time the 
 patentee, or (if he be dead) his wife or children,, may renew ife 
 for fourteen years longer. The term for copy-rights was former- 
 ly fourteen years, the same as for patents. 
 
 The acts of Congress upon this subject assign to an author or 
 his assignee the sole right and liberty of publishing and selling 
 Lis work, and to a patentee the full and exclusive right and 
 liberty of constructing, using, and selling to others his invention, 
 or discovery, within the time limited for the enjoyment of their 
 respective privileges. For the violation of a patent, the tres- 
 passer must pay,.to the patentee tkree times the actual damage 
 proved to have been sustained. The penalty for infringing a 
 copy-right is the forfeiture of every volume so printed to the 
 author, and the forfeiture of fifty cents for every sheet printed, 
 one half to the author, and one half to the United States ; and 
 furthermore, to pay the author all the damages which he may 
 prove to have sustained. 
 
 Wt Clause. — What powers are conferred by the eighth clause 1 
 For what length of time may patent and copy-rights be obtained ? Whal 
 jfe the penalties for the violation of patent and copy-rights 3 
 
72 CONSTITUTION OF THE 
 
 Ninth Clause. — To constitute tribunals inferior to 
 the Supreme Court. 
 
 Tenth Clause.— Tq define and punish piracies^ .and 
 felonies committed on the high seas,^ and offences 
 against the law of nations. 
 
 Eleventh Clause. — To declare war, grant letters of 
 
 Ninth Clause. 
 The power given by this clause will be examined under the 
 article which relates to the judiciary. 
 
 Tenth Clause. 
 
 a Robbery on the high seas is called piracy. It is the same 
 crime which, when committed on the land, is denominated rob- 
 bery. Piracy is punished by all nations. But if a foreigner 
 acts under the sanction of a national commission, his acts are 
 not denominated piracy. In this case the government which 
 eanctions liis acts is responsible for the wrong, and not the indi- 
 vidual. Tlius the Barbary States are now regarded as lawful 
 powers, and not pirates. 
 
 *> The term " high seas" means all the waters of the ocean 
 below the boundaries of low water mark, where the tide ebbs 
 and fiov/s, although in a roadstead or bay, within the limits of 
 one of the States or of a foreign government. Betv.^een high 
 water mark and low water mark, the courts of common law and 
 of admiralty hold alternate jurisdiction. 
 
 Eleventh Clause. 
 In most governments the power to declare war is vested in 
 the Executive, particularly in monarchies, where it is generally 
 
 Wi Clause. — What power is conferred by the ninth clause 1 
 
 10th Clause.— What powers are conferred by the tenth clause 1 What is 
 
 piracy 1 What is understood by the " high seas 1" 
 11 th Clause. — AYhat pov/ers are conferred by the eleventh clause ? In most 
 
 governments, where is the fiower to declare wai vested 1 
 
 ■* ■"■.. 
 
UNITED STATES. 73 
 
 marque and reprisal,^^ and make rules concerning cap- 
 tures on land and water. 
 
 Twelfth Clause. — To raise and support armies ; but 
 no appropriation of money for that use shall be for a 
 longer term than two years. 
 
 exercised by the sovBreign. It is sometimes said that the power 
 of the King of England to make war is nugatory, while the 
 people have tlie right of refusing the supplies for carrying it on. 
 But it may be said, v/ith much more truth, that the right of the 
 people to deny the supplies is nugatory, when the crown has 
 involved them in a predicament that, makes consent a matter 
 of necessity. But the people of this Repu'blic, jealous of so great 
 a. power vested in one man, \A\o might so easily abuse it, have 
 given it to Congress, who represent the people, and who, it is 
 presumed, will not engage in war needlessly, without the sanction 
 of public opinion. 
 
 ^Letters of marque and reprisal are commissions to seize the 
 persons and property of the members of a nation which has com- 
 aiitted some injury, and refuses to make satisfaction. 
 
 Twelfth Clause. 
 
 It is the policy of the govei-nment to keep the standing army 
 no larger than is necessary to keep up the forts on the seaboard 
 and frontiers, and awe the Indians. The standing army is with, 
 in the immediate control of the people, as it can be destroyed 
 Vv'henever their representatives refuse appropriations for its sub- 
 sistence. 
 
 What is said of the power of the King of England to make war *? 
 What are " letters of marque and reprisal V 
 
 Vith Clause. — What power is conferred by the twelfth clause 1 How may 
 our standing army be broken up ? 
 
 1 
 
74 CONSTITUTION OF THE 
 
 Thirteenih Clause. — To provide and maintain a 
 navy. 
 
 Fourteenth Clause. — To make rules for the govern^ 
 ment and regulation of the land and naval forces. 
 
 Fifteenth Clause. — To provide for calling forth the 
 militia to execute the laws of the Union, suppress in- 
 surrections, and repel invasions. 
 
 ThirteentJi Clause. 
 
 The United States have long had a large and respectable navyv 
 A large navy is more necessary for the protection of our exten- 
 sive commerce and' the defence of the Republic than a large 
 standing army ; and if we ever engage in war with any Euro- 
 pean nation, our commerce will be the first object of attack. 
 We should be able to meet the enemy abroad, and not allow him 
 to come within our territories. 
 
 History shows us that a large standing army, in the democra- 
 cies of the old world, has often been converted to dangerous uses 
 in times of civil discord. Fut while the navy is our strongest 
 bulwark of defence, it is under so wise a supervision, that there 
 is no danger of its being used as an engine of domestic oppress, 
 fsion.^ 
 
 Fourteenth Clause, 
 The Departments of War and Navy have been established 
 for the superintendence of the land and naval forces, and rules 
 and regulations for their government and discipline have been 
 adopted by Congress. 
 
 Fifteenth, and Sixteenth Clauses. 
 Under these two clauses^ and a subsequent one, that the Pre- 
 
 12tk Clause. — What power is conferred by the thirteenth clause 1 What 
 is said of the importance of a navy. 
 lAth Clause.— What power is conferred by the fourteenth clause? 
 15th and IQtJi Clauses.— What powers are conferred by the fifteenth and 
 
UNfTED STATES. 75 
 
 Sijcteentn Clause. — To provide for organizing, arm- 
 ing, and disciplining the militia, and for governing 
 such part of them as may be employed in the service 
 of the United States, reserving to the States respec- 
 tively the appointment of the officers, and the authority 
 of training the militia according to the discipline pre- 
 scribed by Congress. 
 
 sident shall be commander-in-chief of the militia when called 
 into actual service, several questions have arisen : 
 
 1st. Who is to determine when the militia are to be called out, 
 the Governors of the States or the President ? 
 
 2d. Can the President place the militia under the command 
 of any one but himself? 
 
 3d. Can he detach parts of the militia corps ? 
 
 It has been decided by the Supreme Court of the United 
 States that the authority to decide when the militia are to be 
 called out belongs exclusively to the President. The power to 
 govern the militia, when in the service of the United States, is 
 an exclusive one ; but the militia are not to be considered in that 
 service until they are mustered at the place of rendezvous, and 
 nntil that time their respective States retain jurisdiction over 
 ihem, concurrent with the jurisdiction of the general govern- 
 ment. 
 
 A State may call forth its own militia, when not in the ser- 
 vice of the United States, to suppress insurrections within, or 
 repel invasions from its own borders, or to assist the United 
 States. 
 
 Upon the two remaining questions, the Supreme Court has 
 given no decision. The general opinion, however, seems to be 
 
 sixteenth clauses 1 What questions have arisen under these clauses 1 How- 
 has the first question been decided 1 When are the militia considered in the 
 sei-vice of the United States 1 What is said of the two remaining ques- 
 tions 1 
 
76 CONSTITUTION OF THE 
 
 Seventeenth Clause.— To exercise exclusive legisla» 
 tion,^in all cases whatsoever, over such district (not 
 exceeding ten miles square) as may, by cession of par- 
 ticular States, and the acceptance of Congress, be- 
 come the seat of the government of the United Statesj 
 and to exercise like authority over all places purchased 
 by the consent of the Legislature of the Stat© in which 
 the same shall be, for the erection of forts, magazines, 
 arsenals, dock-yards, and other needful buildings. 
 And, 
 
 in favor of the power claimed for the President. The ConstL 
 tution gives to the President the command of the militia " when 
 m the actual service of the United States ;" but the command 
 would be almost a nullity without the implied power of delega- 
 ting to others either a part or the whole of his authority, or of 
 detaching parts of the militia when occasion demanded it. 
 
 Seventeenth Clause. 
 
 Congress has accepted a grant from Virginia a:nd Maryland, 
 of ten miles square, for the seat of government, which is the 
 present District of Columbia. Over this district, Congress has 
 exclusive jurisdiction, and also over other places purchased for 
 the uses of the government. The inhabitants of those places 
 cease to be inhabitants of the States, and can no longer exercise 
 any political rights under the laws of the States. But the States 
 have commonly reserved the right of criminal jurisdiction with- 
 in the limits of ceded places, as this right maybe exercised con. 
 sistently with the jurisdiction of the general government. 
 
 llth Clause. — What powers are conferred by the seventeenth clause ? What 
 district has been ceded to Congress 1 What is the extent of the jurisdictiou 
 of Congress over all ceded places 1 
 
UNITED STATES. 77 
 
 Eighteenth Clause,— To make all laws which shall 
 be necessary and proper , for carrying into execution 
 
 Eighteenth Clause. 
 
 This clause has given rise to much discussion and great diver- 
 S5ity of sentiment. It gives to Congress the power " to make all 
 laws which shall be necessary and proper" for carrying into 
 execution certain other specified powers. A question arises, 
 What laws shall be necessary and proper for these purposes ? 
 
 A national bank has by some been thought necessary to the 
 proper administration and regulation of the financial concerns 
 of the nation. And if it be necessary for this purpose, argue 
 its advocates, its establishment by Congress cannot be unconsti- 
 tutional. On the other hand, some of its opponents admit the 
 utility of a national bank, but deny its constitutionality, on the 
 grounds that Congress cannot exercise any powers not expressly 
 granted, and that if the exercise of such implied powers were 
 admitted, there would be no limits to the powers of the general 
 government. Others, however, deny its constitutionality on the 
 ground that it is an unnecessary institution in a financial point 
 of view, and that it is pregnant with danger^ owing to its liabil- 
 ity to be converted to political purposes. 
 
 A national bank was incorporated in 1791, although with 
 much opposition. It received the sanction of Washington, then 
 President of the United States, and the weight of his favorable 
 judgment. The Secretary of State and the Attorney General, 
 (Jefferson and Randolph,) denied its constitutionality, while the 
 Secretaries of the Treasury and War, (Hamilton and Knox,) 
 agreed with the majorities in Congress in its favor. 
 
 In 1811 the charter of the bank expired, and a majority in 
 Congress rejected a bill for its re-charter. In 1816, the curren- 
 
 ISth Clause. — What general power&are conferred by the eighteenth clause 1 
 What important question has arisen under this clause 1 Wliat are the argu- 
 ments for and against the constitutionality of a national bank 1 When was 
 
 aational bank first incorporated, and what has been its history 1 
 
 7* 
 
78 CONSTITUTION OF THE 
 
 the foregoing powers, and all other powehs vested by 
 this Constitution in the government of the United 
 States, or in any department or officer thereof. 
 
 cy of the country having become in a very depreciated condi- 
 tion, a new national bank was chartered with a much larger 
 capital than the old one. The effect of the establishment of the 
 bank was to revive credit, and restore a healthy action to the 
 money market. In 1832 a bill for tlie re-charter of the bank 
 (the charter of which would expire in 1836) passed both houses 
 of Congress, but was rejected by the executive veto of President 
 Jackson. 
 
 The Supreme Court has decided — 
 
 1st. That Congress has the nower to incorporate a national 
 bank. 
 
 2d. That there is nothing in the Constitution which excludes 
 incidental or implied powers ; and, 
 
 ■ 3d. That if the,means proposed for the accpmplishment of a 
 constitutional object are adapted to the end, and not prohibited, 
 they may be constitutionally employed. 
 
 The constitutionality of a national bank is therefore settled 
 as far as it can be by the decision of the highest jndicizl tribunal 
 in the Union. Its expediency may be questioned, but its vali- 
 dity As establisiied while the decisions of the Supreme Court re- 
 main unimpaired and the Constitution unviolated. 
 
 Another incidental power claimed and exercised by the gov- 
 ernment is to create a priority of payment in their favor in case 
 of the death or insolvency of the debtor. Where a company or 
 an individual is a debtor to Congress, and becomes insolvent, the 
 claims of the United States must be liquidated before those of 
 any other creditor. 
 
 What have been the decisions of the Supreme Court upon the subject! 
 What other incidental power is claitned by Congress 1 
 
UNITED STATES. 79 
 
 SECTION IX. 
 
 Of Restrictions upon the Power of Congress. 
 
 First Clause. — The migration or importation of 
 such persons as any of the States now existing shall 
 think proper to admit, shall not be prohibited by the 
 Congress prior to the year one thousand eigbt liundred 
 and eight ; but a tax or duty may be imposed on such 
 importation, not exceeding ten dollars for each person. 
 
 Second Clause. — The privilege of the writ q? habeas 
 ■corpus,^ shull not be suspended, unless when, in cases 
 
 Section 9th. — First Clause. 
 
 'The persons here spoken of were slaves, and by this olause 
 their introduction was admitted until 180B. In 1815 the slave 
 trade was prohibited under severe penalties. Congress has since 
 declared the slave trade to be piracy, and that if a citizen of the 
 Tlnit'cd States be engaged in it, he shall be adjudged a pirate, 
 and on conviction suffer death. The Supreme Court of the Uni- 
 ted States, however, has decided that the slave trade is not pira- 
 cy by the universal law of nations, nor except so far as it has 
 been made so by the treaties or statutes of the nation to which 
 the party belonged. The slave trade has been abolished by the 
 TJnited States, and by all European nations, and there is not a 
 flag of any European power that can now legally cover this 
 traffic north of the equator. Vessels, of whatever nation, en- 
 gaged in the slave trade, are now liable to seizure and confisca- 
 tion. 
 
 Second Clause. 
 
 '^The writ of habeas corpus is a judicial writ, grantable by 
 any court of record, or judge thereof, and commands tlie sheriff, 
 
 Sec. 9tB. — 1st Clause. — What is the first clause of section ninth? Who 
 were the " persons" liere spoken of? What is the penalty for engaging in 
 the slave trade t What has the Supreme Court decided upon the subject 1 
 flow is the slave trade eonsidej-ed by other nations ? 
 
80 CONSTITUTION OF THE 
 
 of rebellion ar invasion, the public safety may re 
 quire it. 
 
 Third Clause. — ^No bill of .attainder,^ or eix post facto 
 law^ shall be passed. 
 
 or other officer, named in ':K to have or take the body, and bring 
 it before said judge or court. 
 
 The object of the writ is, by bringing a person, confined by any 
 means whatever, before a competent authority, to have his con- 
 finement, and the cause of it, investigated ; and, if it be not 
 strictly legal, to discharge him. 
 
 The writ is grantable upon the application of any persors 
 whomsoever, on behalf of the prisoner. 
 
 The only attempt to suspend the writ of habeas corpus, was 
 made on the occasion of Burr's conspiracy : but it failed in the 
 House of Representatives, by a large majority. 
 
 Third Clause. 
 
 ^A hilt of attainder, is a special act of the Legislature, in^ 
 flicting capital punishments upon persons supposed to be guilty 
 of high offences, such as treason and felony, v/ithout any con- 
 viction in the ordinary course of judicial proceedings. If it 
 anflict a milder punishment, it is called a bill of pains and penal- 
 ties. 
 
 ^'An ex post facto la^m, is a retrospective criininal law. A 
 retrospective law, is one which acts upon things already done. 
 
 An ex post facto law makes something criminal which was 
 not criminal when done. Thus, if the Legislature should jmiss 
 an act, declaring that all persons who had not attended church 
 last year, should be imprisoned, that law would be unconstitu- 
 tional, because, ex post facto. 
 
 k 2d Clause.— When only may the writ of " habeas corpus" be suspended ? 
 What is the writ of " habeas corpus ?" Has the writ ever been suspended in 
 this country 1 
 
 Sd Clause.— What is the third clause 1 What is a "bill of attainder 1" 
 What is an " ex post facto law 1" 
 
UNITED STATES. 81 
 
 Fourth Clause. — No capitation,^ or other direct tax, 
 shall be laid, unless in proportion to the census or 
 enumeration herein before directed to be taken. 
 
 Fifth Clause. — No tax or duty shall be laid on 
 articles exported from any State. 
 
 But if the Legislature should pass an act, that those who had 
 attended militia duty last year, should be excused from paying 
 taxes, and those who had not, should not be excused, such a law 
 would be retrospective, but not ex post facto, because, not crimi- 
 nal. An ex post facto law makes past acts criminal, which 
 were not so before. 
 
 Fourth Clause. 
 
 »The term^ capitation, here, signifies a direct tax upon indi- 
 viduals. Such tax cannot be levied by Congress upon one por- 
 tion of the people and not upon another ; but all taxes must be 
 uniform among the States. 
 
 If a national tax were to be levied, Congress would apportion 
 it among the several States, according to the number of repre- 
 sentatives which they were allowed to send to Congress ; and 
 each State would apportion its tax among its citizens, according 
 to the property possessed by each. ■ 
 
 Thus, Congress would apportion the tax among the States, 
 accoi-ding to numhers ; and the States among the citizens, ac- 
 cording to property. 
 
 Fifth Clause. 
 Duties upon exports can at no time be advantageous to a na- 
 tion ; for it is by its exports only that one nation is enabled to 
 procure the money or produce of other nations. 
 
 4f7i Clause. — What is tlie fourth clause ? What does the term " capitation' 
 here signify 1 How would a national tax be levied "? 
 
 5th Clause. — What is the fifth clause 1 Are duties on exports ever advau 
 iageous to a nation 1 
 
8^ CONSTITUTION OF THE 
 
 Sixth Clause.— ■'No preference shall be given, by any 
 regulation of commerce or revenue, to the ports of one 
 State over those of another ; nor shall vessels bound 
 to or from one State, be obliged to enter, clear, or pay 
 duties in another. 
 
 Seventh Clause. — ^No money shall be drawn from 
 the Treasury, but in consequence of appropriations 
 made by law ; and a regular statement and account 
 of the receipts and expenditures of all public money, 
 shall be published from time to time. 
 
 Kings, sometimes, resort to duties of this kind, to increase 
 their revenue ; but where the people are the rulers, they will not 
 thus oppress themselves. 
 
 Sixth Clause, 
 
 Were vessels of one State obliged to pay duties in another, 
 the States would be in the relation of foreign nations to each 
 other. A diversity of interests would soon arise, and the unity 
 of government would be destroyed. 
 
 Sccenth Clause. 
 
 The public moneys are thus placed beyond the reach of the 
 Executive, and the people who bear the burdens of taxation, 
 have, through their representatives,, the sole power of appi-o- 
 priating their own revenue. 
 
 By the regulations of the Treasury Department, the greatest 
 fidelity and accuracy are ensured in the disbursement of the 
 public moneys. The people have always an opportunity of 
 knowing how their money is disposed of. 
 
 6tft CZaMse.--What is the sixth clause 1 Why lis propriety 1 
 1th Clause— How only may money b& drawn from the Treasury 1 
 
UTflTED STATES. 83 
 
 Etghtli Clause,— -No title of nobility shall be grant- 
 ed by the United States ; and no person, holding any 
 office of profit or trust under them, shall, without the 
 consent of the Congress, accept of any present, emolu- 
 ment, office, or title of any kind whatever, from any 
 «ing, prince, or foreign state, 
 
 SECTION X. 
 
 Of Restrictions upon the Power of the States, 
 
 First Clause. — No State shall enter into any treaty, 
 alliance, or confederation ; grant letters of marque and 
 
 Eighth Clause. 
 Titles of nobility, and the odious aristocratical distinctions 
 found in most governments, are utterly inconsistent with our re- 
 publican manners and institutions. This clause, also, guards 
 against the possibility of public officers being bribed to betray 
 the interests of their country. 
 
 *• ' Section IQth. — First Clause. 
 
 This clause divests the States of the most important attributes 
 of national sovereignty. It will be seen in the end, that they 
 retain no attributes of national sovereignty ; but are sovereign 
 in a municipal capacity only. The terms "letters of marque 
 and reprisal," " bill of attainder," and " ex post facto law," have 
 already been defined. 
 
 8tk Clause.— What is the law with reference to titles of nobility, and pre- 
 sents from foreign states ? 
 
 Sec. 10th. — 1st Clause. — ^What restrictions are placed upon the power of 
 the States, by the first clause of section tenth ? 
 
84 CONSTITUTION OF THE 
 
 reprisal ; coin money ; emit bills of credit ;^ make any 
 thing but gold and silver coin a tender in payment of 
 debts ; pass any bill of attainder, ex post facto law, or 
 law impairing the obligation of contracts ;^ or grant 
 any title of nobility. 
 
 '^ Bills of credit, within the meaning of the Constitution, which 
 prohibits their emission by the States, are promissory notes, or 
 l>ills, issued exclusively on the credit of the State, and designed 
 to circulate as money, and for the payment of which, the faith 
 of the State only is pledged. 
 
 The prohibition does not, therefore, apply to the notes of a 
 State bank, drawn on the credit of a particular fund, set apart 
 for the purpose „ 
 
 •"A contract, is an agreement to do or not to do a certain 
 thing. If two individuals have formed a contract which is sanc- 
 tioned by the lav/s of the State, and the fulfilment of which 
 could be legally exacted by either of the contracting parties, 
 wen the State cannot declare such contract void, or release 
 either party from his obligation. 
 
 Nor can a State revoke what it has once granted away. But 
 when the law itself, under which the contract was made, pro- 
 vides for the dissolution of the contract, in any prescribed mode, 
 the parties are presumed to have»»acted subject to such contin- 
 gency ; and when the contingency happens, the obligation may 
 be declared void, either in whole or in part, as the original law, 
 (under which the contract v/as made,) provided. 
 
 The obligation consists in the law applicable to the contract. 
 If, then, the law which permitted the contract, permit the law- 
 giver, at any time, to declare it void, the contract is made sub- 
 ject to such contingency. 
 
 What are " bills of credit 1" What is a " contract 1" Iii what does ife© 
 ' obligation" consist 1 
 
UNITED STATES. 85 
 
 Second Clause. — No State shall, without the con- 
 sent of the Congress, lay any imposts or duties on im- 
 ports or exports, except what may be absolutely neces- 
 sary for executing its inspection laws ; and the nett 
 produce of all duties and imposts, laid by any State on 
 imports or exports, shall be for the use of the Treasury 
 of the United States ; and all such laws shall be sub- 
 ject to the revision and control of the Congress. 
 
 Third Clause. — No State shall, without the consent 
 of the Congress, lay any duty of tonnage,^ keep troops 
 or ships of war in time of peace, enter into any agree- 
 
 Second Clause. 
 
 By this clause, the States can obtain no revenue from com, 
 merce by imposing duties upon either imports or exports. 
 
 But the States have inspection laws, under the authority of 
 which many domestic articles are inspected before they are sub- 
 ject to use or exportation. The States are allowed to lay duties 
 upon these articles, sufficient to pay for their inspection. The ' 
 object of inspection laws, is to improve the quality of articles 
 produced in the country. 
 
 Third Clause. 
 
 * Tonnage duties are taxes laid on vessels, at a certain rate 
 per ton. The States cannot keep troops or ships of war, in 
 time of peace, for these are attributes of national sovereignty. 
 If this power existed in both the general and State governments, 
 it would constitute them separate nations ; which would be 
 wholly at variance with the object of the Constitution. 
 
 2d Clause. — What restrictions are imposed by the second clause ? What 
 are inspection laws, and what is their object 1 
 
 3d Clause.— What restiictions are imposed by the thkd clause 7 What aro 
 " tonnage duties 7" 
 
 8 
 
86 CONSTITUTION Or THE 
 
 ment or compact with another State, or with a foreign 
 power, or engage in war, unless actually invaded, or 
 in such imminent danger as will not admit of delay. 
 
 ARTICLE II. 
 
 Of the Executive, 
 
 SECTION I. 
 
 First Clause. — The Executive"^ power, shall be vest- 
 ed in a President of the United States of America. 
 He shall hold his office during the term of four years ; 
 
 First Clause, 
 
 a Executive, is that which relates to the execution of the laws. 
 Thus, the chief officer of the government, whether he be called 
 King, President, or Governor, is denominated the Executive ; 
 for, on him, in most cases, the Constitution imposes the duty 
 of executing the laws. 
 
 As it is the duty of the Executive to execute the laws, which 
 often requires great decision, secrecy, and despatch, this power 
 is better vested in one man than in several individuals. 
 
 The Executive being elected for a definite term of years, if 
 his administration be odious, he is, at the expiration of his term 
 of office, held amenable at the bar of public opinion, and another 
 person may be elected to fill his place. 
 
 1st Clause. — ^In whom is the Executive power vested 1 How long does 
 the President hold his office 1 What is the meaning of the term " executive ?" 
 Wliy might not the Executive power be placed in the hands of many in- 
 dividuals ? 
 
UNITED STATES. 87 
 
 and, together with the Vice-President, chosen for the 
 same time, be elected as follows : — 
 
 Second Clause. — Each State shall appoint, in such 
 manner as the Legislature thereof may direct, a num- 
 ber of electors, equal to the whole number of Senators 
 and Representatives to which the State may be entitled 
 in the Congress ; but no Senator or Representative, 
 or person holding an office of trust or profit, under the 
 United States, shall be appointed an elector.* 
 
 (12t7i Amendment to the Constitution.) — The electors 
 shall meet in their respective States, and vote by ballot, 
 for President and Vice-President, one of whom, at least. 
 
 It will, hereafter, be seen, that the Executive is made directly 
 responsible for his acts, to the representatives of the people. 
 So great is the difference between the Executive branch of 
 many of the governments of Europe and that of, the United 
 States. 
 
 It is a principle of the English law, that " the king can do 
 no wrong." His acts are placed above inquiry, and above ac- 
 countability. If the king errs, or offends, his ministers are held 
 responsible. 
 
 Second Clause. 
 
 As the electors are to be appointed in such manner as the 
 Legislature may direct, different States have adopted different 
 modes. In some States, the electors are chosen by the Legisla- 
 ture itself; in others, by the people. 
 
 * The next clause in the Constitution, was abrogated in the 
 year 1801, and the above amendment introduced. 
 
 To whom is the Executive responsible 7 How is it with the Executive 
 of th3 English government 1 
 2d Clause.— Hovf are the President and Vice-President elected 1 
 
88 CONSTITUTION OF THE 
 
 shall not be an inhabitant of the same State with them- 
 selves. 
 
 They shall name, in their ballots, the person voted 
 for as President, and in distinct ballots, the person 
 voted for as Vice-President ; and they shall make dis- 
 tinct lists of all persons voted for as President, and of 
 all persons voted for as Vice-President, and of the num- 
 ber of votes for each ; which lists they shall sign and 
 certify, and transmit, sealed, to the seat of government 
 of the United States, directed to the President of the 
 Senate. 
 
 The President of the Senate shall, in the presence 
 of the Senate and House of Representatives, open all 
 the certificates, and the votes shall then be counted ; 
 the person having the greatest number of votes for Pre- 
 sident, shall be President, if such number be a majority 
 of the whole number of electors appointed ; and if no 
 person have such majority, then, from the persons 
 having the highest numbers, not exceeding three, on 
 the list of those voted for as President, the House of 
 Representatives shall choose, immediately, by ballot, 
 the President. 
 
 But, in choosing the President, the votes shall be 
 taken by States, the representation from each State 
 having one vote ; a quorum for this purpose, shall con- 
 sist of a member or members from two thirds of the 
 States, and a majority of all the States shall be neces- 
 sary to a choice. 
 
 And if the House of Representatives shall not choose 
 a President, whenever the right of choice shall devolve 
 upon them, before the fourth day of March next follow- 
 
UNITED STATES, ©9 
 
 ing, then the Vice-President shall act as President, as 
 in the case of the death or other constitutional disability 
 of the President. 
 
 The person having the greatest number of votes as 
 Vice-President, shall be the Vice-President, if such 
 number be a majority of the whole number of electors 
 appointed ; and if no person have a majority, then, 
 from the two highest numbers on the list, the Senate 
 shall choose the Vice-President : a quorum for the 
 purpose, shall consist of two thirds of the whole num- 
 ber of Senators, and a majority of the whole number 
 shall be necessary to a choice. 
 
 But no person constitutionally ineligible to the office 
 of President, shall be eligible to that of Vice-President 
 of the United States. 
 
 Third Clause. — -The Congress may determine the 
 
 Third Clause. 
 
 As regards the time of choosing the electors, Congress have 
 only enacted that the States shall choose their electors within 
 the thirty-four days preceding the first Wednesday in Decem- 
 ber. 
 
 The consequence is, that within that time, the elections are 
 still made at different periods. It would, doubtless, be better if 
 the elections were held by the different States on the same days. 
 As it now is, those which are held last, are liable to be more or 
 less influenced by those which are held first, upon the principle 
 of a common desire in human nature to be on the strong side. 
 
 The electors meet in their respective States, at a place ap- 
 
 2d Clause. — Who determines the time of choosing the electors ? Is tha 
 day of choosing the electors the same throughout the States ? What objec* 
 tion is there to their present mode of election 1 
 
 8* 
 
90 CONSTITUTION OF THE 
 
 time of choosing the electors, and the day on which 
 they shall give their votes ; which day shall be the 
 same throughout the United States. 
 
 Fourth Clause.— No person, except a natural born 
 citizen, or a citizen of the United States at the time 
 of the adoption of this Constitution, shall be eligible 
 to the office of President ; neither shall any person be 
 eligible to that office who shall not have attained to 
 the age of thirty-five years, and been fourteen years a 
 resident within the United States. 
 
 Fifth Clause. — In case of the removal of the Presi- 
 
 pointed by the Legislature thereof, on the first Wednesday in 
 December, in every fourth year succeeding the last election, and 
 vote by ballot for President and Vice-President. 
 
 Fourth Clause. 
 
 Most of the Presidents heretofore elected, have been more 
 than sixty years of age. The age of thirty-five is young enough. 
 
 It is not required that the person elected President, should 
 have been within the United States during the vt^hole period of 
 fourteen years preceding his election ; but his permanent domicil 
 must be there, unless he reside abroad on business of the govern, 
 ment. 
 
 A public officer, residing abroad in pursuance of his duty, is 
 still considered a resident citizen of the United States, so far as 
 his political rights are affected. 
 
 Fifth Clause. 
 Congress has provided, that, in case of the removal, death,, 
 resignation, or inability of both the President and Vice-President, 
 
 On what day do the electors give their votes ? 
 
 ith Clause. — What qualifications are required for the office of President 1 
 What has been the age of most of the Presidents, when elected 1 Must the 
 person elected President, have been within the United States during the whole 
 j)eriod of the fourteen years preceding his election 1 
 
UNITED STATES. 91 
 
 dent from office, or of his death, resignation, or inabil- 
 ity to discharge the powers and duties of the said office, 
 the same shall devolve on the Vice-President ; and the 
 Congress may, by law, provide for the case of removal, 
 death, resignation, or inability both of the President 
 and Vice-President, declaring what officer shall then 
 act as President ; and such officer shall act according- 
 ly, until the disability be removed, or a President shall 
 be elected. 
 
 Sixth Clause. — The President shall, at stated times, 
 receive, for his services, a compensation, which , shall 
 neither be increased nor diminished during the period 
 for which he shall have been elected, and he shall not 
 receive within that period any other emolument from 
 the United States, or any of them. 
 
 the President pro tern, of the Senate, and in ease there shall be 
 no such President of the Senate, then the Speaker of the House 
 of Representatives, shall act as President until the disability be 
 removed or the vacancy filled. 
 
 In case of a non-election of President and Vice-President, at 
 the proper period, Congress has declared that there shall imme- 
 diately be held a new election. 
 
 Sixth Clause. 
 The salary of^ the President is twenty -five thousand dollars 
 per annum, and that of the Vice-President, five thousand dollars. 
 
 5th Clause.— Who succeeds the President, in case of his removal by death 
 or otherwise 1 What provisions have Congress made for the case of the re- 
 moval of both President and Vice-President 1 If there be no President of the 
 Senate 1 In case of a non-election of both President and Vice-President ? 
 
 Qth Clause. — What provision is made relative to the compensation of tlie 
 President ? What is his salary ? 
 
92 CONSTITUTION OF THE 
 
 Seventh Clause. — Before he enters on the execution 
 of his office, he shall take the following oath or affir- 
 mation :— 
 
 " I do solemnly swear, (or affirm,) that I will faith- 
 fully execute the office of President of the United 
 States, and will, to the best of my ability, preserve, 
 protect, and defend the Constitution of the United 
 States." 
 
 SECTION II. 
 
 First Clause, — The President shall be commander- 
 in-chief of the army and navy of the United States, 
 and of the militia of the several States, when called 
 into the actual service of the United States. 
 
 He may require the opinion, in writing, of the prin- 
 cipal officer in each of the Executive Departments, 
 upon any subject relating to the duties of their respect- 
 
 Section 2d. — First Clause. 
 
 The opinions of the subordinate Executive officei's, are often 
 required in matters pertaining to their respective departments. 
 As the President cannot have the entire management of all the 
 Executive departments, a general supervision over them re, 
 quires that he should be allowed to avail himself of the opinions 
 of those to whom these departments are more particularly in- 
 trusted. 
 
 7th Clause. — What oath is required of the President, before he enters upon 
 the duties of his office 1 
 
 Sec. M.—lst Clause.— What powers are vested in the President, by this 
 clause 1 Why should the President have the power of requiring the written 
 opinions of the heads of departments 1 
 
tTNITED STATES. 93 
 
 tlve offices, and he shall have power to grant reprieves 
 and pardons for offences against the United States, 
 except in cases of impeachment. 
 
 Second Clause.— Re shall have power, by and with 
 the advice and consent of the Senate, to make treaties, 
 provided two thirds of the Senators present concur : 
 and he shall nominate, and by and with the advice and 
 consent of the Senate, shall appoint ambassadors, other 
 
 Second Clause. 
 
 Helative to the power of making treaties, a question of the 
 following nature has arisen : — 
 
 If a treaty be ratified by the President and Senate, and a law 
 be required to carry it into execution, may the House of Repre- 
 sentatives withhold such law ? 
 
 The House of Representatives once declared, that when a 
 treaty depended, for the execution of any t)f its stipulations, on 
 an act of Congress, it was the right and duty of the House to 
 deliberate on the expediency of carrying such treaty into effect. 
 
 The House of Representatives, however, have subsequently 
 decided that the sole power over treaties, rests with the Senate 
 and President. This appears, now, to be the prevailing opinion. 
 
 The Constitution has made treaties, when properly ratified, 
 the supreme law of the land, and as such, they are binding upon 
 the whole nation, and upon Congress also. 
 
 As nations cannot treat together immediately, they must hold 
 conferences by means of delegates, or public ministers. 
 
 A public ininister is one who is charged with the care of 
 
 Wliat exception to his power of pardoning 1 
 
 2d Clause. — In whom is vested the power of making treaties ? What 
 question has arisen relative to the treaty-making power 1 What right over 
 this power did the House of Representatives formerly claim 1 How has 
 the question been decided 1 How extensive is the binding power of treaties ? 
 What is a " public minister 1" 
 
94 CONSTITUTION OF THE 
 
 public ministers, and consuls, judges of the Supreme 
 Court, and all other officers of the United States, 
 whose appointments are not herein otherwise provided 
 for, and which shall be established by law ; but the 
 Congress may, by law, vest the appointment of such 
 inferior officers as they think proper, in the President 
 alone, and in the courts of law, or in the heads of 
 departments. 
 
 public affairs at a foreign court. Of these, there are several 
 orders : — 
 
 1st. An ambassador is one who represents the government, 
 and is authorized to act for it on all occasions. 
 
 2d. An envoy is a minister who is sent for a particular pur- 
 pose — as, to adjust a special treaty, or arrange disputed boun- 
 daries. There are envoys ordinary, and envoys extraordinary 
 or plenipotentiary. The former, as the term signifies, are in- 
 vested with merely the ordinary powers of an envoy ; the latter 
 have full power to act as they deem expedient. 
 
 3d. Ministers resident, or charge d'affaires, are those who 
 are charged with the ordinary affairs of a nation at a foreign 
 court. 
 
 To each of the a^ove offices, is attached a secretary of lega- 
 tion, who performs the duties of a secretary, and is frequently 
 left in charge of affairs when a minister is recalled. 
 
 Consuls are commercial agents, appointed to reside in the 
 seaports of foreign countries, with a commission to watch over 
 the commercial rights and privileges of the nation deputing 
 them. 
 
 As the Constitution says nothing about removals from office, 
 it has been a question, whether the power of removal is vested in 
 
 What officers are appointed by the President and Senate ? What is an 
 " ambassador ? . An " envoy 1" " Ministers resident," or " charge d'affaires V[ 
 A " secretary of legation 7" What are " consuls 7" In whom is vested the 
 " power of removal" from office 1 
 
UNITED STATES, 95 
 
 Third Clause. — The President shall havi; power to 
 fill up all vacancies that may happen during ihe recess 
 of the Senate, by granting commissions, which shall 
 expire at the end of their next session, 
 
 SECTION III. 
 
 He shall, from time to time, give to the Congress, in- 
 formation of the state of the Union, and recommend to 
 
 the President alone, or in the President and Senate jointly. In 
 1789, the question came before Congress, and, after an animated 
 debate, the power of the President was affirmed. This decision 
 of the House lias long been sanctioned by public opinion. 
 
 Third Clause. 
 
 Should the office of a foreign ambassador become vacant 
 during the recess of Congress, the President would have power 
 to fill the vacancy ; and the ambassador appointed might retain 
 bis office until the close of the next senatorial term. Should 
 the President nominate this officer to the Senate, and the Senate 
 reject him, the President might, on the first day of the next re- 
 cess, appoint him again, to fill the vacancy, and thus perpetuate 
 the appointment 
 
 1h.G on\y remedy against this abuse of executive privilege, 
 lies in the power of Congress to withhold the appropriations 
 which are necessary to sustain the office. But the President 
 cannot appoint a foreign ambassador, or other officer, during 
 the recess of Congress, unless the vacancy happens during that 
 time. 
 
 2d C^awse.— What vacancies may the President alone supply ? How may 
 the President perpetuate an appointment made by him 7 What remedy 
 against this abuse of Executive privilege 1 
 
yo CONSTITUTION OF THE 
 
 their consideration such measures as he shall judge ne- 
 cessary and expedient ; he may, on extraordinary oc- 
 casions, convene both Houses, or either of them, and in 
 case of disagreement between them, with respect to 
 the time of adjournment", he may adjourn them to such 
 time as he shall think proper. 
 
 He shall receive ambassadors and other public min- 
 isters ; he shall take care that the laws be faithfully 
 executed, and shall commission all the officers of the 
 United States. 
 
 Section Zd. 
 
 At the opening of each session, the President lays before Con- 
 gress a message, exhibiting the operations of the government 
 during the past year, which is accompanied by reports from the 
 chief ofiicers of government, illustrating the condition and pros- 
 pects 9f tlieir several departments. The President also gives 
 his views upon all the measures Vv^hich, in his opinion, ought to 
 be acted upon by Congress. 
 
 President Washington, and the eider Adams, in person met 
 Congress, and delivered oral speeches, to which answers were 
 returned in a similar manner. President Jefferson abolished the 
 custom ; since which time, a w^ritten message has been sent to 
 Congress, but no answer returned. 
 
 Congress frequently calls upon the President, and upon the 
 officers of the different departments, for such documentary facts 
 as they may desire. 
 
 The power to call an extra session of Congress, has been 
 exercise.d on four different occasions : once by the elder Adams, 
 twice by President Madison, and once by President Van Buren. 
 
 Sec. 3d. — \st Clause. — What duties are imposed on the President by this 
 section? In what manner is the required information presented to Con- 
 gress ? 
 
UNITED STATES. 97 
 
 SECTION IV. 
 
 The President, Vice-President, and all civil officers 
 of the United States, shall be removed from office on 
 impeachment for, and conviction of, treason, bribery, 
 or other high crimes and misdemeanors. 
 
 ARTICLE III. 
 
 Of the Judiciary, 
 
 SECTION I. 
 
 The Judicial power of the United States, shall be 
 vested in one Supreme Court, and in such inferior 
 
 The power to receive ambassadors, includes also the power to 
 reject and dismiss them. 
 
 Section \st. 
 
 The Constitution has left the organization of the Supreme 
 Court, and the establishment of the inferior courts, to Congress. 
 
 Congress has organized a Supreme Court, by creating a Chief 
 Justice and eight Associate Justices, any five of whom make a 
 quorum ; and it holds one term annually, at the seat of govern- 
 ment. 
 
 Previously to the third of March, 1837, the Supreme Court 
 consisted of one Chief Justice, and six Associate Justices, any 
 four of whom made a quorum. 
 
 May ambassadors be rejected, and by whom 1 
 
 Sec. 4th. — For what crimes, and in what manner, may civil officers of the 
 United States be removed from office ? 
 See. 1st.— 'In what is the Judicial power of the United States vested 1 
 9 
 
98 CONSTITUTION OP THE 
 
 courts as Congress may, from time to time, ordain and 
 establish. 
 
 The Judges, both of the Supreme and inferior courts, 
 shali hold their offices during good behavior, and shall, 
 fit stated times, receive for their services, a comp'ensa- 
 tion, which shall not be diminished during their con- 
 tinuance in office. 
 
 The inferior courts organized by Congress, are the Circuit 
 and the District Courts, The Circuit Court is composed of one 
 Judge of the Supreme Court and the District Judge, except 
 when the District Judge is interested, when it may be held by 
 the Circuit Judge. The United States are divided into Circuit 
 Districts, and the number of circuits is equal to the number of 
 the Supreme Judges. 
 
 The District Court is composed of a single Judge, who holds 
 annually four terms, and special courts at his discretion. The 
 United States are at present divided into thirty-three districts. 
 
 The Supreme Court is the ultimate tribunal of appeal from 
 the Circuit and District Courts, and from the Courts of the 
 several States. Its general powers are enumerated in the next 
 two clauses. 
 
 The Supreme Court is the national court of the United States ; 
 and its jurisdiction is coextensive 'mth national objects, and in- 
 dependent of other branches of the government. The Consti- 
 tution and laws of the United States are to be construed and 
 adjudged of by the -Supreme Court. It is also a sovereign 
 arbiter between the States ; which is a sufficient answer to the 
 theory that the States have the power to annul the laws of the 
 Union. 
 
 How long do the Judges retain their offices t How has the Supreme Court 
 been organized 1 What inferior courts have been created ? How are thej' 
 organized 1 
 
UNITED STATES. 90 
 
 SECTION II. 
 
 First Clause, — The Judicial power shall extend to 
 all cases^ in law and equity,^ arising under this Con- 
 stitution, the laws of the United States, and treaties 
 made, or which shall be made, under their authority ; 
 to all cases affecting ambassadors, other public min- 
 isters, and consuls ; to all cases of admiralty and 
 maritime jurisdiction f to controversies to which the 
 United States shall be a party -A — 
 
 Although the Supreme Court is the ultimate tribunal in all 
 cases, yet it is the judge, and not the lawgiver. Its duty is to 
 say what the law is, and not to maJce it. Judicial power as con- 
 tradistinguished from the power of the laws, has no existence. 
 Courts are the instruments of the law, and can will nothing. 
 Section 2d. — First Clause. 
 
 ^ The term case, as here employed, means a suit in law or 
 equity, instituted according to the regular course of judicial pro- 
 ceedings. 
 
 ^ Equity, considered as a legal term, is the correction of that 
 wherein the law, (by reason of its universality,) is deficient. 
 Courts of law are those in which decisions are regulated by the 
 known laws of the land ; and courts of equity take cognizance 
 of those cases' which either the law, on account of its deficiency, 
 does not reach ; or, in which a strict adherence to the law would 
 be attended by manifest injustice. 
 
 « The admiralty and maritime jurisdiction of the United 
 States courts, embrace all civil and criminal cases where the of- 
 fence was committed at sea, or on the coasts, out of the body 
 of a county. 
 
 ^To enforce the rights of the United States, they have power 
 
 Sec. 2d.— 1st Clause.— To what several cases does the Judicial power ex- 
 tend 1 What is a " case," as here contemplated 1 What is " equity V 
 What do the "admiralty and maritime" jurisdiction of tlie United States 
 courts embrace "? 
 
100 CONSTITUTION OF THE 
 
 To controversies between two or more States ; be- 
 tween a State and citizens of another State ;a between 
 citizens of different States ;b between citizens of the 
 
 to sue in their own courts. But neither can an individual -nor a 
 State bring a suit against the United States. It is inherent in 
 the nature of the sovereignty of the government not to be ame- 
 nable to any private person, nor to any State. If the citizens 
 are oppressed by the public officers, the remedy lies in the power 
 of removing them ; or, if the oppression be in the exercise of 
 unlawful and unconstitutional powers, the oppressors are amena- 
 ble to the judicial tribunals of the country. 
 
 ^The eleventh amendment to the Constitution declares that 
 the judicial power does not extend to any suit in law or equity 
 prosecuted against a State by individuals. This, however, does 
 not apply to a " writ of error," which is not a suit against & 
 State within the meaning of the Constitution ; and the jurisdio 
 lion of the Supreme Court, in cases arising under the Constitu- 
 tion, laws, and treaties of the Union, may be exercised by a writ 
 of error brought upon the judgment of a State court. 
 
 A suit is considered as brought against a State, when the 
 State is on the record as a party, and is sued in its political ca- 
 pacity. To constitute the State a party, it is not sufficient that 
 it has an interest in the suit, or that its powers and duties come 
 incidentally in question. 
 
 ^ The question here is, who is a citizen of a State, and how 
 does he change his citizenship ? Every person who is a citizen 
 of one State, and removes into another, with the intention of 
 taking up his residence there, becomes in reality a citizen of the 
 
 How are the rights of the United States enforced against the States 'I Why 
 may not an individual or State bring a suit against the United States 1 
 What remedy, then, have the citizens against the oppression of public offi 
 cers ■? What does the eleventh amendment to the Constitution declare 1 In 
 what case does this not apply 1 When is a suit considered as broughl 
 against a State 1 Who are citizens, and how do they change their citiaen 
 Shipl 
 
UNITED STATES. 101 
 
 same State, claiming lands under grants of different 
 States ; and between a State, or the citizens thereof, 
 and foreign States, citizens, or subjects. 
 
 Second Clause. — In all cases affecting ambassadors, 
 other public ministers, and consuls, and those in which 
 a State shall be a party, the Supreme Court shall have 
 /■.riginal jurisdiction.^ In all the other cases before 
 mentioned, the Supreme Court shall have appellate 
 jarisdiction,^ both as to law and fact, with such excep- 
 
 State v/here he resides ; and a native citizen of one State never 
 ceases to be a citizen thereof till he acquires a new citizenship 
 
 elsewhere. 
 
 Second Clause. 
 
 '^ Original jurisdiction is entire jurisdiction. It is where the 
 Supreme Court takes special cognizance of a case which has 
 been before no other court. This jurisdiction can be exercised 
 only in the cases specified by the Constitution, and cannot be 
 enlarged by Congress. But it has been a matter of dispute, 
 which is not yet definitely settled, whether this original jurisdic- 
 tion is exclusive ; that is, whether it may not be exercised con- 
 currently by the inferior United States courts. 
 
 ^Appellate jurisdiction is the power of re-examining, and re- 
 versing or afiirming the decisions of other courts. The usual 
 modes of exercising appellate jurisdiction, are : by Writ of 
 Error — which removes nothing for re-examination but the law 
 of the case ; and by Appeal — which removes ^ cause entirely, 
 and subjects the facts as well as the law to a review and retrial. 
 
 ^d Clause.~In what cases has the Supreme Court original jurisdiction 1 
 In what cases has it appellate jurisdiction "? What is " original jurisdiction V 
 What dispute has arisen upon this subject? What is " appellate jurisdic- 
 tion "?" What are the usual modes of exercising appellate jurisdiction ? 
 WTiich is tlie most frequently exercised by the Supreme Court, appellate or 
 original jurisdiction ? 
 
 9* 
 
102 CONSTITUTION t»P THE 
 
 tioiis, and under such regulations as the Congress shall 
 make. 
 
 Third Clause. — The trial of all crimes, except in 
 cases of impeachment, shall be by jury ; and such trial 
 
 It is the appellate jurisdiction which gives to the Supreme 
 Court its chief dignity and importance, and renders it an object 
 of constant attention and solicitude on the part of the govern^ 
 ments of the several States. 
 
 Third Clause. 
 
 In connection with this clause must be taken the fifth and the 
 sixth amendment to the Constitution, which will be found in 
 their proper places. 
 
 The right to a trial hy jury is esteemed one of the most pre- 
 cious rights of freemen, as it enables the accused to appeal from 
 the arbitrary judgment of either governments or individuals, to 
 the disinterested verdicts of their equals. 
 
 Before a person can be tried for a criminal offence, he must 
 first be charged with the offence by a grand jury. This charge 
 is in the form of an indictment. 
 
 A grand jury is a number of men, not less than twelve nor 
 more than twenty-three, selected from the people in the body of 
 the county, to inquire into offences against the State. They are 
 instructed by the court in the matters pertaining to their inqui- 
 ries, and then withdraw to receive indictments, which are pre- 
 ferred to them in the name of the State, but at the suit of a 
 private prosecutor. After an examination, such of the bills as 
 are found correct, are endorsed, "A true Bill," signed by the 
 foreman ; and hence become official accusations, to be rebutted 
 only by proof at the trial. These bills are called indictments. 
 
 2d Clatcse. — What is the law regulating the trial of crimes? What pre- 
 liminary steps are requisite before a person can be tried for a criminal of 
 fence 1 What is a " grand jury 1" 
 
UNITED STATES. 103 
 
 shall be held in the State where the said crimes shall 
 have been committed ; but when not committed within 
 any State, the trial shall be at such place or places as 
 the Congress may, by law, have directed. 
 
 SECTION in. 
 
 First Clause. — Treason against the United States, 
 shall consist only in levying war against them, or in 
 adhering to their enemies, giving them aid and com- 
 fort. 
 
 Second Clause. — No person shall be convicted of 
 
 It is provided in the fifth amendment to the Constitution, that 
 no person shall be twice put in jeopardy of life or limb for the 
 same oifenee. The meaning is, that no person shall be a second 
 time tried for the same offence, where there has been an actual 
 verdict and judgment rendered in a former trial. But the ac- 
 cused may be tried a second time, when the jury have been 
 dismissed for want of agreement, or where a new trial has hQen 
 granted on aecounl of some illegal proceedings, or for want of 
 evidence. 
 
 Section Zd. — First, Second, and Third Clauses. 
 Death by hanging is the punishment of treason in this eoun- 
 try. 
 
 How often may a person be tried for the same criminal offence 1 
 
 What is the meaning of the phrase, " No person shall be twice but in jeo- 
 pardy of life or limb for the same offence ?" 
 
 Sec. 3d.— l5i Clause.— In what does treason against the United Stotes con- 
 sist"? 
 
 2d Clause.—What is requisite to the conviction of a person charged with 
 l;reason'? 
 
 3d CiflM^e.— What is the punishment of treason 1 
 
104 CONSTITUTION OP THE 
 
 treason, unless on the testimony of two witnesses to 
 the same overt act, or on confession in open court. _ 
 Third Clause. — ^The Congress shall have power to 
 declare the punishment of treason ; but no attainder 
 of treason shall work corruption of blood, or forfeiture, 
 except during the life of the person attainted. 
 
 ARTICLE IV. 
 MISCELLANEOUS. 
 
 SECTION. I 
 
 Full faith and credit shall be given in each State, to 
 the public acts, records, and judicial proceedings of 
 every other State, And the Congress may, by general 
 
 By corruptictfi of blood, is meant the destruction of all inher- 
 itable qualities, so that no one can claim any property, or any 
 right to the same, from a person attainted, or through him. In 
 England, even the children of a person attainted cannot inherit 
 his property, if they are obliged to trace their title through him« 
 But these relics of feudal barbarism arc prohibited by our Con- 
 stitution. 
 
 Section 1st. 
 Foreign judgments in law are considered as prima facie evi- 
 dence, that is, are taken as true, until the contrary be proved. 
 But domestic judgments, that is, the decisions of courts in the 
 
 What restriction upon tlie penalty for treason ? What is meant by " cor- 
 ruption of blood 7" What is the English law upon this subject ? 
 
 Sec. 1st.— What credit is given to the public acts, records, and judicial pro- 
 ceedings of the several States 1 Bow are foreign judgments in law considei»- 
 edi How domestic judgmental 
 
UNITED STATES. 105 
 
 laws, prescribe the manner in which such acts, records, 
 and proceedings shall be proved, and the effect thereof. 
 
 SECTION II. 
 
 First Clause. — The citizens of each State shall be 
 entitled to all privile,<jes and immunities of citizens in 
 the several States. 
 
 Second Clause. — A person charged in any State, 
 with treason, felony, or other crime, who shall flee from 
 justice, and be found in another State, shall, on demand 
 of the Executive authority of the State from which 
 he fled, be delivered up, to be removed to the State 
 having jurisdiction of the crime. 
 
 Third Clause. — No person held to service or labor 
 in one State, under the laws thereof, escaping into 
 another, shall, in consequence of any law or regulation 
 
 several States, are to oe considered valid and conclusive law in 
 every state in the Union, and cannot be denied in another State 
 finy more than in the State where they originated. 
 
 Section' '2, d. — First, Second, and Third Clauses. 
 The clause relative to persons held to service or labor, refers 
 to the slaves of the southern States who may take refuge in the 
 non-slaveholding States. Slaves are to be delivered up without 
 a full trial, after a summary investigation before a magistrate 
 who shall think it probable that the circumstances charged are 
 
 Sec. 2d.— Isi Clause.— What rights are guarantied to the citizens of each 
 State by this clause 1 
 
 2d Clause.— How are criminals who flee from one State to another to be 
 delivered up? 
 
 3d Clause.— What is the law relative to the escape of slaves from one State 
 to another "? Is 3 full trial requisite before the surrender of a slave ? 
 
106 CONSTITUTION OP TH» 
 
 therein, be discharged from such service or labor, but 
 shall be delivered up, on claim of the party to wborn 
 such service or labor may be due. 
 
 SECTION III. 
 
 Fii'st Clause. — New States may be admitted by the 
 Congress into this Union ; but no new State shall be 
 formed or erected within the jurisdiction of any other 
 State, nor any State be formed by the junction of two 
 or more States, or parts of States, without the consent 
 of the Legislatures of the States concerned, as well as 
 of the Congress. 
 
 true. Such proof may be either by affidavit or oral testimony, 
 and adduced by either the principal or his attorney. 
 
 Section 3d. — First Clause, 
 
 Tiis power to admit new States into the Union, in the manner 
 provided by the Constitution, is a new principle in government 
 Under the old Confederation no provision of this kind was made, 
 for there was then no anticipation of the rapid growth and pros- 
 perity of those wild regions, whose population and territory have 
 since nearly doubled those of the original States. 
 
 By this provision of the Constitution the United States open 
 an asylum for all mankind, and make the whole world partners 
 with themselves in an inheritance of liberty, power, and wealth. 
 This benevolent principle has no example among nations. 
 
 But the term used in the Constitution relative to the admis- 
 sion of new States is may, and not shall. Hence, it is not im- 
 perative upon the government of the United States to admit 
 new States whenever they may demand it. 
 
 Sec. 3d. — Ist Clause.— Whatis the law regulating the erection and admis- 
 sion of new States 1 Is the power to admit new States a long-established 
 principle in government? Is it imperative upon the general government to 
 admit new States when the latter demand it 1 
 
UNITED STATES. 107 
 
 Second Clause. — The Congress shall have power to 
 dispose of and make needful rules and regulations re- 
 specting the territory or other property belonging to 
 tho United States ; and nothing in this Constitution 
 shall be so construed as to prejudice any claims of the 
 United States, or of any particular State. 
 
 SECTION IV. 
 
 'the United States shall guaranty to every BtzM m 
 this Union, a republican form of government, and snail 
 protect each of them against invasion ; and on appli- 
 cation of the Legislature, or of the Executive, (when 
 the Legislature cannot be convened,) against domestic 
 violence. 
 
 ARTICLE V. 
 
 Of Amendment 
 The Congress, whenever two thirds of both houses 
 
 Section 4tk. 
 It was necessary for the United States to assume the defence 
 of the several States, as the Constitution had already taken 
 from the latter the power to keep troops and ships of war, and 
 «^xisequently the power efficiently to suppress insurrections. 
 
 Article 5th. 
 No amendments can be made except in the manner here point- 
 
 2d Clause.— Whati *r -.r has Congress over the territory and other proper- 
 ty of the United States ? 
 
 Sec. 4th.— What form of government, and what protection, are guarantied 
 to every State ? Why might not the defence of the States have been left to 
 themselves 3 
 
108 CONSTITUTION OF THE 
 
 shall deem it necessary, shall propose amendments to 
 this constitution, or, on the application of the Legisla- 
 tures of two thirds of the several States, shall call a 
 convention for proposing amendments, which in either 
 case shall be valid, to all intents and purposes, as part 
 of this Constitution, when ratified by the Legislatures 
 of three fourths of the several States, or by conventions 
 in three fourths thereof, as the one or the other njode 
 of ratification may be proposed by the Congress ; pro- 
 vided that no amendment, which may be made prior to 
 the year one thousand eight hundred and eight, shall in 
 any manner afiect the first and fourth clauses in the 
 
 ed out ; but there are three limitations to the power of making 
 amendments : — ■ 
 
 1st. That the clause in the Constitution prohibiting Congress 
 from passing any law forbidding the introduction of slaves prior 
 to the year 1808, should not be repealed. This restriction was 
 introduced as a matter of compromise between the northern and 
 the southern States. 
 
 2d. That the mode of levying direct taxes should not be 
 changed prior to the year 1808. The Constitution provided, 
 that, in apportioning taxes among the States according to their 
 population, three fifths of the slaves should be enumerated in the 
 census of the population. Consequently, before the year 1808, 
 the slaveholding States could not be taxed for more than three 
 fifths of their slaves, although Congress should desire it. 
 
 3d. That no State should be deprived, without its consent, of 
 its equal representation in the Senate. The small States are 
 represented in the Senate equally with the larger ones, and may 
 always remain so, unless the smaller States themselves conseat 
 
 How may the Constitution be amended 1 W^hat are the several limitaiioiis 
 to the power of making amendments 1 
 
UNITED STATES. 109 
 
 ninth section of the first article ; and that no State, 
 without its consent, shall be deprived of its equal suf.. 
 frage in the Senate. 
 
 ARTICLE VI. 
 
 First Clause. — All debts contracted, and engage- 
 ments entered into, before the adoption of this Consti- 
 tu!ion, shall be as valid against the United States under 
 this Constitution as under the Confederation. 
 
 Second Clause. — This Constitution, and the laws of 
 the United States, which shall be made in pursuance 
 thereof ; and all treaties made, or which shall be made, 
 
 to a change. They are thus effectually and permanently pro- 
 tected against all encroachments from the larger States. 
 
 Article Gth. — First Clause. 
 During the struggle for independence, the United States con- 
 tracted engagements and incurred debts, which many persons 
 were apprehensive might not be considered binding upon the 
 new government. But it is a law of nations, as well as a prin- 
 ciple of justice, that a nation continues bound by all its engage- 
 ments, no matter what changes may be made in its government. 
 In accordance with this rule, the Constitution has made all 
 debts contracted, and engagements entered into, before the adop- 
 tion of the Constitution, valid and binding against the United 
 States. 
 
 Second Clause. 
 In consequence of the supremacy of the Constitution, as here 
 set forth, whenever the constitution or the laws of any State 
 
 Art. 6th.— 1s« Clause.— What provision was made respecting the debts 
 contracted before the adoption of the Constitution 1 What is the genera] 
 law of nations upon this point 1 
 
 10 
 
110 CONSTITUTION OP THE 
 
 under the authority of the United States, shall be the 
 supreme law of the land ; and the judges in every State 
 shall be bound thereby* any thing in the Constitution 
 or laws of any State to the contrary notwithstanding. 
 Third Clause.— The Senators and Representatives 
 before mentioned, and the members of the several State 
 Legislatures, and all executive and judicial officers, 
 both of the United States and of the several States 
 shall be bound, by oath or affirmation, to support this 
 Constitution ; but no religious test^ shall ever be r&. 
 
 come in contact with it, or in contact with the constitutional 
 treaties or laws of the United States ; all judges, whether of the 
 State courts or of the United States courts, are bound to give 
 effect to the Constitution, and to the acts of the general govern, 
 ment, and to declare the State acts invalid, so far as they coma 
 in collision with them. 
 
 All constitutional treaties and laws of the United States are 
 as binding upon the several States as the Constitution itself. 
 
 Third Clause. 
 An oath of similar import is required in all Civilized nations 
 from the officers of government. 
 
 » A test act is one which requires all public officers, before 
 they can enter upon their duties, to subscribe to certain religious 
 opinions, and perform certain religious acts. By the above 
 clause this is expressly forbidden in the United States. But in 
 most other governments something of this kind is required. 
 
 2rf Clause. — What constitute the supreme law of the land 1 How are all 
 Judges bound to act, when the laws of a State come in collision with those 
 of the Union 1 
 
 2d Clause. — By what oath are all legislative, executive, and judicial offi- 
 cers bound 1 How is it with regard to a religious test 1 What is a ' ' tesS 
 «ct1" 
 
UNITED STATES. 1X1 
 
 quired as a qualification to any office or public trust 
 under the United States. 
 
 ARTICLE VII. 
 
 The ratification of the conventions of nine States 
 shall be sufficient for the establishment of this Consti- 
 tution between the States so ratifying the same. 
 
 Thus, by the statutes of England, all civil and military officers 
 are required to make a declaration against transubstantiation, 
 partake of the sacrament of the Lord's Supper, and obtain cer- 
 tificates of the same, before they can enter upon any such 
 office. 
 
 Article 1th 
 
 At the formation of the Constitution there were thirteen 
 States, nine of which ratified it immediately, three after the 
 lapse of a few months, but the State of Rhode Island not till 
 more than a year afterward. Had not all the States ratified the 
 Constitution, its authority would have extended only over those 
 ratifying the same. 
 
 What religious test is required by the laws of England ? 
 
 Art. 7th.— How many States were required, to ratify the Constitution be- 
 fore it took effect ? How many States were there at the time of the forma- 
 tion of the Constitution "? Would the Constitution have been binding up<Hl 
 aay State which did not assent to it ? 
 
112 CONSTITUTION OF THE 
 
 OF AMENDMENTS. 
 
 When the Constitution was submitted to conventions of the 
 people, called for that purpose, it met with violent opposition 
 from many, and numerous objections were urged against it. 
 The most important objections were those against the great 
 power with which it invested the general government ; and the 
 fear that the influence of the States would be greatly impaired, 
 if not altogether destroyed, by the supremacy of the Union. 
 
 The Constitution was, however, ratified by the requisite num- 
 ber of States, and Congress, during its first session, proposed 
 ten distinct articles, selected from those which had been sug- 
 gested in the State Conventions, which, having been ratified in 
 the manner provided, are now a part of the Constitution. Two 
 other amendments have since been added. 
 
 The general design of the amendments was to secure certain 
 rights to the States and people, beyond the possibility of en- 
 croachment by Congress ; and to set a more definite limit to the 
 powers of^the general government. 
 
 What were the most important objections urged against the Constitution 1 
 How many amendments have been added to the Constitution 1 . Wliat was 
 their general design 1 
 
UNITED STATES. 113 
 
 AMENDMENTS. 
 
 Article I. — Congress shall make no law respecting 
 an establishment of religion, or prohibiting the free 
 exercise thereof; or abridging the freedom of speech, 
 or of the press ; or the right of the people peaceably 
 to assemble, and to petition the government for a re- 
 dress of grievances. 
 
 Article I. 
 
 Although the imposition of any religious test had already been 
 prohibited by the Constitution, yet such was the solicitude of 
 the people on this point, such their determination to preserve 
 the utmost freedom of conscience, that it was deemed proper 
 to deprive Congress of all pretence for ever attempting to legis- 
 late upon the subject of religion. The government offers no 
 hindrance to any, while it affords protection to all religious 
 sects. 
 
 The terms " freedom of speech and of the press," mean the 
 right to speak and publish whatever is not in derogation of pri- 
 rate rights. But no one has a right to speak or publish what 
 will injure another ; — hence the law of slander and libel. 
 
 The right of the people to assemble, either to petition or for 
 any other purpose, arises necessarily from the form of a rejiub- 
 lican government. 
 
 Art. 1st.— What restrictions are placed upon the power of Congress by 
 Art. 1st ■? What is the meaning of the terms " freedom of speech and of the 
 press 1" 
 
 10* 
 
114 CONSTITUTION OF THE 
 
 Art. II. — A well-regulated militia boing necessary 
 to the security of a free State, the right of the people 
 to keep and bear arms shall not' be infringed. 
 
 Art. III. — No soldier shall, in time of peace, be 
 quartered in any house without the consent of the own- 
 er, nor in time of war but in a manner to be prescrib- 
 ed by law. 
 
 Art. IV.^ — The right of the people to be secure in 
 their persons, houses, papers, and effects, against un- 
 
 Article II. 
 ' The term " militia" is applied to that species of soldiery which 
 is composed wholly of enrolled citizens held ready for service, 
 but not actually under arms. 
 
 Article III. 
 
 This article is intended to guard against the tyranny which 
 arbitrary governments have soihetimes exerted, by keeping large 
 numbers of troops quartered upon the peaceable citizens, to watch 
 over their motions and hold them in subjection. 
 
 The people of this country, while under the dominion of Eng- 
 land, had felt, too sensibly, the evils arising from the want of 
 arms, and the presence of foreign troops, not to take every pre- 
 caution against their recurrence. 
 
 Article IV. 
 The power of an officer to arrest and imprison any one at his 
 discretion, has often been an engine of great oppression under 
 
 Art. 2(1.— What is the second amendment ? To what is the term " militia" 
 applied 1 
 
 Art. 3d.— What is the third amendment 1 For what was this article par- 
 ticularly intended 1 
 
 Art. 4th.— What is the fourth amendment 1 For what was this article 
 particularly designed 1 
 
UNITED STATES. llo 
 
 reasonable searches and seizures, shall not be violated, 
 and no warrants shall issue but upon probable cause, 
 supported by oath or affirmation, and particularly de- 
 scribing the place to be searched, and the persons or 
 things to be seized. 
 
 Art. V. — ^No persons shall be held to answer for a 
 capital, or otherwise infamous crime, unless on a pre- 
 sentment or indictment of a grand jury, except in cases 
 arising in the land or naval forces, or in the militia, 
 when in actual service in time of war or public danger ; 
 nor shall any person be subject, for the same offence, 
 to be twice put in jeopardy of life or limb ; nor shall 
 be compelled, in any criminal case, to be a witness 
 against himself, nor be deprived of life, liberty, or pro- 
 perty, without due process of law ; nor shall private 
 property be taken for public use without just compen- 
 sation. 
 
 Art. VI.— In all criminal prosecutions, the accused 
 shall enjoy the right to a speedy and public trial, by an 
 impartial jury of the State and district wherein the 
 crime shall have been committed, which district shall 
 have been previously ascertained by law, and to be in- 
 
 arbitary governments. This article was designed to prevent the 
 possibility of such a practice here. 
 
 Amendments 5th, 6th, and 7th, have already been considered 
 in connection with another part of the Constitution. 
 
 Art. 5th.— V\/Tiat provisions are made in this aiticle to guard against vio- 
 lations of personal liberty and private rights 1 
 
 Art. 6th.— What privileges are here given to individuals, in criminal pro- 
 secutions against them 1 
 
116 eONSTITUTKN OP THE 
 
 formed of the nature and cause of the accusation ; to 
 be confronted with the witnesses against him ; to have 
 compulsory process for obtaining witnesses in his favor, 
 and to have the assistance of counsel for his defence. 
 
 Art. VII.— In suits at common law, where the 
 value in controversy shall exceed twenty dollars, the 
 right of trial by jury shall be preserved, and no fact 
 tried by a jury shall be otherwise re-examined, in any 
 court of the United States, than according to the rules 
 of the common law. 
 
 Art. VIII.— Excessive bail^ shall not be required 
 nor excessive fines imposed, nor cruel and unusual pun- 
 ishments inflicted. 
 
 Art. IX,-— The enumeration, in the Constitution, of 
 
 Article VIII. 
 
 ^ Bail is a term used for setting at liberty one arrested, on 
 surety being given for his appearance at the time and place ap- 
 pointed. 
 
 What must be determined excessive bail or excessive fines, 
 must be determined by the proper judge or court in each par- 
 ticular case, since what would be excessive bail in one case, 
 would be extremely moderate in another. The design of the 
 article is, therefore, to declare, in general terms, that bail is to 
 be taken, and fines imposed, for the purpose of justice, and not 
 as means of oppression. 
 
 Art. 7tli.— What is the seventh amendment "? 
 
 Art. 8th.— What is the eighth amendment!" What is" bail 1" What 
 must be considered " excessive bail," and " excessive fines 1" 
 Aet. 9th.— What is the ninth amendment^ 
 
UNITED STATES. 117 
 
 certain rights, shall not be construed to deny or dis- 
 parage others retained by the people. 
 
 Art. X. — The powers not delegated to the United 
 States by the Constitution, nor prohibited by it to the 
 States, ase reserved to the States respectively, or to the 
 people. 
 
 Art. XI. — The judicial power of the United States 
 shall not be construed to extend to any suit, in law or 
 equity, commenced or prosecuted against one of the 
 United States by citizens of another State, or by citi- 
 zens or subjects of any foreign State. 
 
 (Article twelfth, of the Amendments, relating to the 
 choosing of President and Vice-President, will be found 
 under the head of" Executive.") 
 
 Article IX. 
 
 This article is designed to affirm, that, although the Constitu- 
 tion had enumerated certain rights as belonging to the people, 
 yet it did not design to affirm that the people should retain no 
 other rights than those expressly reserved to them. It shows 
 the care with which the people guarded against any unauthor- 
 ized extension of the power of the general government. 
 
 Article X. 
 
 As the Constitution derives all its power from the people, it 
 consequently follows that all authority which is not thus dele- 
 gated, remains with the people, the original source of power. 
 
 (Amendments 11th and 12th, have already been considered 
 in their appropriate places.) 
 
 Art. 10th. — What is the particular design of this article 1 
 Art. 11th. — What is the tenth amendment ? 
 What is tjje eleventh amendment 1 
 
w 
 
\ 
 
 ^^. BOOK IL 
 
 FXEMSNTS 
 
 OT' 
 
 POLITICAL ECONOMi^. 
 
iNTRODUCTION. 
 
 Political Economy is the science of wealth. It 
 treats of the principles and laws which govern its cre- 
 ation ; of its course and order of distribution ; of its 
 uses ; and, also, of the consequences resulting from 
 these several circumstances. 
 
 Valite, is that particular quality in a substance which 
 renders it capable of gratifying human desire. For 
 example, that quality in food which gives it value, is 
 its capacity to gratify the desire of hunger in man. 
 Different substances possess different degrees of value, 
 which depend upon the nature and the number of desires 
 which they can gi-atify. 
 
 Such articles as food, clothing, <Sz;c., which gratify 
 necessary desires, have more intrinsic value than those 
 which are mere articles of luxury and amusement, 
 
 India rubber was formerly used for but one purpose ; 
 — that of rubbing out pencil marks ; but it is now 
 used for the manufacture of shoes, and for many other 
 important purposes. Its value, therefore, has been 
 greatly increased. 
 
 What is political economy 1 
 What is value 1 
 
 Upon what do the degrees of value indifferent substances, depend ? Ex- 
 ample? 
 
 11 
 
122 INTRODUCTJONc 
 
 Wealth, then, consists of all articles of value ; and 
 the wealth of an individual is proportioned to the 
 amount of value that he possesses ; or, to the number 
 and importance of the desires which his possessions will 
 enable him to gratify. 
 
 If a person possesses a large amount of money, ha 
 is considered wealthy, because the money will enable 
 him to gratify numerous and important desires. But 
 if a person could gratify all his desires without the use 
 of money, simply by a wish or a command, he would 
 be as wealthy as man could be, and money would no 
 longer be valuable to him. 
 
 Some substances, such as air, water, and sunlight, 
 are capable of gratifying desire, without any change 
 being made in them ; but not so with gold, silver, 
 iron, &c. ; yet the latter also possess value. The 
 value of the former is intrinsic. The latter may be 
 exchanged for articles which have intrinsic value. 
 
 There are, then, two kinds of value, intrinsic and 
 exchangeable. Exchangeable value, is the power of 
 one article to obtain something else in exchange for 
 it. Gold has little intrinsic, but great exchangeable, 
 value : air has vast intrinsic, but no exchangeable, 
 value. Yet all articles that have exchangeable value, 
 have some intrinsic value. 
 
 Those which have no exchangeable value, are found 
 every where abundant, and inexhaustible, and are 
 
 What is wealth, and to what is the wealth of an individual proportioned 1 
 How many kinds of value are there 1 Examples 1 
 What is exchangeable value 1 
 
INTRODVCTION. 123 
 
 derived directly from the gift of the Creator : such 
 are the light of the sun, air, water, &;c. The others 
 derive their chief value from human tabor, and aie 
 limited either in quantity or in place. 
 
 But, as articles of exchangeable value derive that 
 value chiefly from human labor, they will be found in 
 the possession of those who have exerted the labor 
 ppcessary to produce them. But he who makes knives, 
 will not part with them without a compensation for 
 his labor. Hence, he who wants knives must either 
 make them himself, or he must offer in exchange for 
 them some value which he himself has created, or which 
 he possesses. 
 
 Cost is the amount of labor and skill expended in 
 the creation of value, and it is the cost of an article 
 which, for long periods, determines its exchangeable 
 value. When the degree of skill is the same, no man 
 will exchange the products of two days' labor for that 
 which has cost another man but one day's labor. 
 
 If a hunter procure twenty-five pounds of venison 
 by a day's labor, and a fisherman one hundred pounds 
 of fish, they will exchange labor for labor, and not 
 pound for pound. If the hunter demand one hundred 
 and fifty pounds of fish for twenty-five pounds of ven- 
 ison, the fisherman will not exchange in this rianner- 
 for he can better afford to hunt his own venison. 
 
 How do articles which have no exchangeable value, differ from those 
 Tirhich have exchangeable value "? 
 Where will articles of exchangeable value be found, and how obtained ? 
 What is cost 7 
 What determines the exchangeable value of articles 1 
 
124 INTEODUCTION. 
 
 But temporary circumstances may, for short peiiods, 
 create a variation from this standard, and elevate the 
 exchangeable value above, or depress it below, the cost. 
 The causes of this variation we will now briefly illus- 
 trate : — 
 
 1st. If, during on» season, a larger quantity qf flour 
 were carried into the city of New-York than was suf- 
 ficient to supply all demands for the article, the price 
 of flour would fall ; that is, the less amount of other 
 articles would a barrel of flour obtain by exchange. 
 
 And this effect would be the same, although a barrel 
 of flour cost no less this year than in the year previous. 
 Hence, the greater the supply, the less the exchangeable 
 value, 
 
 2d. If, while the cost of producing flour remained 
 the same, only half that was necessary to supply the 
 demand were carried to market, the price of flour would 
 rise : and hence, the less the supply, the greater the 
 exchangeable value, 
 
 3d. Suppose that, on account of the high price offer- 
 ed for flour in some foreign country, it should become 
 profitable to export it from New- York ; the great de- 
 mand for flour would immediately raise the price i 
 hence, the r< eat&r the demand, the greater the exchange- 
 able value. 
 
 4th. Suppose that the demand for flour in New-York 
 should suddenly decline, while there were large quan- 
 
 How illustrated ? 
 
 The cost of production regulating exchangeable value, ■what circurastancejf 
 occasion a variation from this standard 1 
 Jiiustrate the causes of this variation. 
 
INTRODUCTION. 125 
 
 titles in market ; the holders would, nevertheless, wish 
 to dispose of their flour, and hence, there would arise 
 a competition among them, each one striving to sell : 
 the price of flour would, consequently, fall : conse- 
 quently, the less the demand, the less the exchangeable 
 value. 
 
 These principles operate to keep the supply of an 
 article, usually, equal to the demand. This, in par- 
 ticular, is the case with regard to manufactured articles. 
 Thus, in cities, the supply of hats, shoes, &;c., is al 
 ways equal to the demand for them. If more hats are 
 manutactured than are sufficient to supply the wants 
 of the community, the increased supply of the article 
 reduces the price below cost, and the manufacture of 
 hats ceases until the supply becomes equal to the de- 
 mand. 
 
 Also, if there is not a sufficient number of hats pro- 
 duced to supply the demand, more persons engage in 
 their production, until the supply rises equal to the 
 demand. Hence, also, we see why a scarcity is likely 
 to be followed by an excess, and high prices by low 
 prices. 
 
 If there be a great scarcity, the high price of the 
 articles induces many persons to engage in their pro- 
 duction, and a surplus of the article, and a fall in price, 
 are the consequence. 
 
 Articles which will soon perish if undisposed of, are 
 subject to greater fluctuations in exchangeable value 
 
 What is the effect of these principles ? 
 
 What articles are subject to the greatest fluctuations iu exChangeabia 
 yalue 1 
 
 11* 
 
126 INTRODUCTION. 
 
 than those of more durable materials. Fish and fruits, 
 if kept on hand, will soon perish, and the holder will 
 dispose of them for less than their cost, rather than 
 lose them. 
 
 But iron, being a durable article, will not be subject 
 to such variations ; for, although it be kept on hand 
 for years, it will lose none of its intrinsic value. 
 
 Also, articles which require a long time for theif 
 production, are subject to greater variations in ex 
 changeable value, than articles which may be pro- 
 duced on demand. Thus, if there be a scarcity of 
 wheat in the country, the price of that which remains 
 will rise rapidly. 
 
 But if there be a scarcity in the article oi nats, the 
 price will not rise so rapidly, because every person 
 knows that the demand may be supplied upon short 
 notice. 
 
 The subject ot political economy may be divided 
 into four parts : — production, distribution, exchange, 
 and consumption. 
 
 What other articles are subject to like fluctuations 1 
 How may the subject of political economy be divided 1 
 
PART FIRST. 
 
 OF THE PRODUCTION OF WEALTH. 
 
 Pkoduction is the act by which v/e confer a par- 
 ticular value upon any object whatever, or by which 
 we give to any object its adaptedness to gratify desire- 
 
 For example : — the miner of iron takes the ore from 
 the earth, and, by his labor, converts it into a knife 
 thus giving it a value which it did not possess before* 
 This process, — the creation of value, is called produO' 
 tion. The person who performs the labor, is called a 
 jjroducer, and the article which is produced, viz., the 
 knife, is called a product. 
 
 The material upon vv^hich labor or industry is ex- 
 erted, is called capital. Thus, in the above case, iron 
 ore was the capital. But the same article may, some- 
 times, be the product of one person, and the capital of 
 another. Thus, leather is the product of the currier, 
 and the capital of the shoemaker. 
 
 But, the term capital is not applied to the material 
 only, upon which industry is to be exerted, but also to 
 the instruments by which industry is assisted, and also 
 
 What is production 1 Example 1 
 To what Is the term capital applied 
 
 •^ 
 
128 OF PRODUCTION. 
 
 to whatever is necessary to the support of that in- 
 dustry. 
 
 Thus the capital of the shoemaker, comprises his 
 leather, his tools, the provision for his support, &c. ; 
 and, in fine, it is whatever of value or property he pos- 
 
 The subject of production, may, therefore, be divided 
 mto three parts : — -Ist. Capital ; 2d. Industry ; and^ 
 3d. The principles which govern the application of in- 
 dustry to capital. 
 
 SECTION I. 
 
 Of Capital, 
 
 As capital is the amount of value, or property, whicfe 
 each man possesses, capital appears in as many forms 
 as there are various employments of menc Thus, the 
 farmer, the manufacturer, and the merchant, possess 
 capital in as many forms as they have articles of 
 value* 
 
 lu every industrious community, capital is continu- 
 ally undergoing changes, by the effect of labor exerted 
 upon it. The cotton and wool of the manufacturer,, 
 are changed into the fabrics which he produces. The 
 wood and nails of the carpenter, are changed into 
 houses. The seed and manures of the farmer, are 
 changed into vegetables, and these again into the grain 
 of the harvest. 
 
 How may the subject of production be divided ? 
 What Is capital, and in what form does it appear ? 
 What is said of tho changes which capital undergoes? 
 
OF PRODUCTION. 129 
 
 The merchant exports one commodity, and imports 
 another of a different kind. Also, the instruments and 
 machinery of the several classes of laborers undergo 
 changes, and are finally destroyed ; but if they have 
 been properly used, their value reappears in another 
 form, — in the increased value which they have given 
 to the various objects upon which they have been em- 
 ployed. 
 
 If the labor has been skilfully directed, the value of 
 the product will be sufficient to replace the value of 
 the original material, and also to pay the laborer, and 
 pay the interest of the capital. Capital often passes 
 through maay hands, continually increasing in value, 
 until it reaches the hands of the consumer, when, if it 
 be profitably consumed, it again reappears in some form 
 adapted to create a further increase of the means of 
 enjoyment. 
 
 Thus, wheat passes from the hands of ..the farmer to 
 those of the miller, then to the merchant, and thence 
 to the consumer ; but, if profitably consumed, its value 
 reappears in reanimated health and vigor, by which 
 we are prepared for subsequent labor. 
 
 But, if we destroy a value, and produce another only 
 equal to it, we lose our labor. If we destroy a value, 
 and reproduce nothing, we lose both labor and capital. 
 If the value created be superior to the value of labor 
 and capital destroyed, we are so much the more 
 wealthy. 
 
 If the labor required to effect the change be skilfully directed, what will be 
 the result 7 If otherwise 1 
 
J 30 ^ OF PRODUCTION. 
 
 Hence, to add to our wealth, our labor must be pro- 
 fitably employed, — we must be industrious in creating 
 value, and frugal in the disposal of it. 
 
 Of the different kinds and forms of capital, there 
 may be made two divisions ; productive, and unproduc- 
 tive, capital. 
 
 "Pi'odiictive capital is that which, being in any 
 manner united with industry, is in the process of aug. 
 mentation. Unproductive capital is that which, not 
 being .united with industry, remains at the end of the 
 year just as it was at the beginning. Money at inter- 
 est, tilled land, and manufactories in operation, are 
 productive capital. Money lying in coffers, unsaleable 
 materials, manufactories unoccupied, and land lying 
 waste, are unproductive capital."^ 
 
 In all branches of production where there are no 
 restrictions upon the use of capital, the rate of accu- 
 mulation is nearly the same. For if one kind of busi- 
 ness be unusually lucrative, capital will flow into it, 
 and men will engage in it, until, by competition, they 
 reduce the profits to the ordinary rate. If commerce 
 be unusually lucrative, more men will engage in it ; 
 and if it be depressed, they will devote themselves to 
 other pursuits. 
 
 Nothing but oppressive legislation can render the 
 rates of profit permanently unequal. In some parts 
 
 a Wayland. 
 
 What are the principal divisions of capital 1 
 What is productive capital ? Unproductive capital ? 
 Where capital and labor are free, does the rate of accumulation vary grc^ 
 ly in different branches of production 1 Why not 1 
 
OP PRODUCTIOEf. 131 
 
 of Asia the son must follow the calling and occupation 
 of his father, v/hether the business be profitable or not. 
 Such restrictions upon industry can be attended by no 
 benefits, but almost incalculable evils often flow from 
 them. 
 
 Capital may also be still further divided into fixed 
 and circulating capital. 
 
 Circulating capital comprises those articles of value 
 which the owner wishes to dispose of as soon as pi-o- 
 duced. Thus, the v/ares of the merchant, the products 
 of the manufacturer, and the harvests of the farmer, 
 are circulating capital. 
 
 Fixed capital comprises those articles of value which 
 the owner does not wish to part with while he continues 
 his occupation^ but the use of which he needs in the 
 creation of other products. Thus, the ships and ware- 
 houses of the merchant, the machines and buildings of 
 the manufacturer, and the tools and land of the farmer, 
 are fixed capital. 
 
 Moreover, circulating capital consists of those arti- 
 cles which are already prepared for the gratification of 
 human desire, or which are in a course of preparation 
 for that purpose ; while fixed capital, in general, con- 
 sists of the instruments which, in some form or manner, 
 assist us in accomplishing this result. Money must 
 therefore, be called fixed capital, because it cannot, di- 
 
 How may capital be still further divided 1 
 
 What is circulating capital 1 
 
 W^hat is fixed capital ? 
 
 Does circulating capital require any further change before it can gratify de- 
 sire? , . 
 . What kind of capital, then, is money 1 
 
182 OF PRODUCTION. 
 
 rectly, gratify desire, but is subservient to this purpose, 
 only by its utility in facilitating the exchange of other 
 articles of value. 
 
 Circulating capital is rapidly consumed by its use 
 in gratifying desire ; while fixed capital may last for a 
 length of years. If fixed capital be properly used, it 
 increases the amount of circulating capital, and vice 
 versa. Thus, the fixed capital of the farmer, if skil- 
 fully used, increases the amount of his produce, or cir- 
 culating capital. The avails of his produce he applies, 
 in part, to the gratification of his wants or desires, 
 and in part to the increase of his fixed capital, by the 
 purchase of more land, the erection of buildings, the 
 improvement of his tools, &c., by which he is enabled 
 again to increase the amount of his circulating capi- 
 tal : and thus they go on, year after year, mutually 
 ai%menting each other. 
 
 SECTION II. 
 
 Of Industry, 
 
 I. The object of industry is the creation of value. 
 We have seen that capital can be increased only by 
 effecting some change in it, and it is evident that this 
 change must be produced by labor. 
 
 Different changes are required for different kinds ot 
 
 Which is the more rapidly consumed, circulating or fixed capital ? 
 How does the use of fixed capital increase circulating capital 1 
 What is the object of industiy % 
 
 What is the only manner in which capital can be increased ? 
 What changes are required 1 
 
OF PRODUCTION. 133 
 
 capital, and for the creation of different products. 
 Thus, the farmer, by means of seed, manure, and cul- 
 tivation, aided by the agencies of the sun, earth, rain, 
 and the atmosphere, changes the elementary forms of 
 carbon, gases, and water, into wheat. Merchants and 
 manufacturers are generally employed in effecting 
 changes in the aggregate forms of matter. Thus, the 
 cabinet-maker changes the form of a board into that of 
 a desk or a table. Others change the 'place of matter. 
 Thus, the importer brings goods from abroad, the mer- 
 chant carries them into the country, and the farmer 
 transports his produce to market. 
 
 Hence the necessity of different professions and dif- 
 ferent occupations ; which all concur in the creation 
 of value. They mutually support ea"ch other, and 
 there is no reason for jealousy between different classes 
 of producers ; — if left to themselves, they all flourish, 
 and all suffer, together. The farmer requires the tools 
 and instruments made by the mechanic, the cloths of 
 the manufacturer, and the wares of the merchant ; and 
 if the business of the latter be obstructed, the former 
 suffers with him. Thus it is with ail : — they are mu- 
 tually dependant upon each other. 
 
 The industry above alluded to, which is requisite to 
 effect a change in matter, may be called the industry 
 of operation, or, operative industry. The laborers in 
 this department of industry are those who, guided by 
 
 Why the necessity of different professions 1 
 What is said of their mutual dependance upon each other 1 
 What is "operative industry," and who are the laborers in t^iis depart- 
 ment ; 
 
 12 
 
134 OF PRODUCTION, 
 
 certain directions, put forth the physical effort neces- 
 sary to create the values desired. Such are the mere 
 operatives, ot workmen, in the arts. But, before this 
 kind of industry can be exerted, there must be some 
 persons who are able to give the necessary directions ; 
 for labor exerted without design or object, will be at- 
 tended with no utility. 
 
 Hence there is need of two other kinds of industry. 
 
 First— The industry of discoverers or investigators, 
 who ascertain the laws or the established relations of 
 things ; — such as the industry of Newton, when he 
 discovered the laws of gravitation ; and of Franklin, 
 when he discovered the laws of electricity. The labor 
 of philosophers belongs to this class. 
 
 Secondlyr^r-The industry of inventors ; or those who 
 avail themselves of the knowledge acquired by discov- 
 erers, and apply it to some practical purpose. Thus 
 Fulton, knowing the laws of steam, which had been 
 previously discovered, applied them to the purpose of 
 propelling vessels through the water. Under this class 
 may also be comprehended professional labor generally. 
 The clergyman teaches us how to avail ourselves of 
 the moral laws of the Creator. The lawyer teaches 
 us how to avail ourselves of the laws of civil society, 
 for the purpose of protecting our rights and redressing 
 our grievances. The physician teaches us how to 
 avail ourselves of the physiological laws under which 
 
 What is requisite before this industry can be exerted 1 
 
 What other kinds of industry 1 Explain them. 
 
 Under which kind of industry may professional labor be ranked,? 
 
OF PRODUCTION. 135 
 
 we are created, so that we may be relieved from sick- 
 i»ess or preserved in health. 
 
 Two or three of these forms of industry are fre- 
 quently performed by the same person. Thus, Frank- 
 lin performed the labor of the discoverer when he 
 discovered the laws of electricity ; he performed the 
 labor of the inventor, v/hen he applied those laws to 
 the construction of the lightning rod ; and he would 
 also have performed the labor of the operative, or ar- 
 tisan, if ho had constructed the rod with his. own 
 hands. 
 
 The product of operative industry is a change of 
 form or of place in matter ; while that which the dis- 
 coverer or inventor creates, is an immaterial product. 
 It is knowledge, or a change effected in mind. Politi- 
 cal Economy treats almost exclusively of material pro- 
 ducts, because the values of the products of discoverers 
 and inventors, being immaterial, can be adjusted by no 
 fixed rule. 
 
 The exertion of operative industry confers upon the 
 laborer, either wholly or in part, a right to the value 
 produced ; and i\iQ extent of this right can be easily 
 knov/n and enforced where the product is material. 
 Thus, the operative manufacturer who receives wool, 
 the product of the wool grower, and manufactures it 
 into broadcloth, acquires a right to the additional value 
 which he has conferred upon the wool ; and this addi- 
 
 Are the, diiferent kinds of industry ever performed by the same person? 
 Example ? 
 What is the product of opevative industry ? Of inventive industry 7 
 Of what does political economy n .'most exclusively treat"? 
 
136 OF PRODUCTION. 
 
 * tional value being easily known, the right to it can be 
 easily enforced by seizing upon a material product. 
 
 But in this respect there is a broad difference be- 
 tween the products of operative industry, on the one 
 hand, and the products of discr /ery and avention, on 
 the other» 
 
 Although discoveries in science, and inventions in 
 the arts, may demand both expensive and protracted 
 labor, yet those who create knowledge have little means 
 of monopolizing it, because the value produced resides 
 in 210 tangible objecl 
 
 Ths discoveries of Locke and Bacon in the sciences, 
 have been of inestimable value to mankind, but the 
 discoverers could realize only a small share of the 
 profits accruing therefrom, because the values produced 
 being immaterial and intangible, and easily conve;^ ed 
 to others by means of the press, and thus inimitably 
 increased, soon cease to possess any exchangeable 
 value. But civil society has devised means by which 
 laborers in llie last two mentioned kiLdfs of industry 
 im.y receive some remuneration for their labor. The 
 laws of copy and of patent right, by which uuthors 
 and inventors are entitled, for a limited time, to the 
 exclusive control over their works, are designed for this 
 purpose. 
 
 But there is need of laborers in each of these depart- 
 ments of industry. A community in which there were 
 
 Are the products of inventive industry easily monopolized'? 
 What laws are designed to remunerate inventive industry ? 
 What is said of the importance of laborers in all tht lepartments of in 
 dustry 1 
 
0? PRODUCTION. 137 
 
 .30 discoverers or inventors, if isolated from the rest of 
 mankind, would remain stationary in civilization and 
 the arts. 
 
 It would be a mere machine, which had the power 
 to execute, but not the mind to direct : like the steam 
 engine, which, if combined with proper machinery, and 
 properly directed, is productive of the most useful re- 
 sults ; but whose power, if left to itself, is vainly dis- 
 sipated or ruinously exerted. 
 
 And, on the other hand, were the community com- 
 posed entirely of philosophers, inventors, and profes- 
 sional men, whose industry was employed in the crea- 
 tion of knowledge only, they must, of necessity, starve. 
 Knowledge is of no utility, unless some use can be 
 made of it. Thus, we see that all classes of laborers 
 are mutually necessary to, and dependant upon, each 
 other. 
 
 11, Of the modes hy which the productiveness of human 
 industry may he increased ; and, first, hy the use of 
 natural agents. 
 
 In the early stages of society, industry is productive 
 of but a small amount of value. The reason is, that 
 here labor derives but little assistance from the use of 
 natural agents. With nothing to labor with but his 
 hands and feet, man could subsist only in the most 
 temperate climes. 
 
 By the invention of a very simple instrument, as a 
 
 What is said of industry in the early stages of society 1 
 
 12* 
 
138 OF PRODUCTION. 
 
 bow and arrow, or a lance, his condition is materially 
 improved ; and, by still further availing himself of 
 natural agents, and by economizing his labor, he may 
 multiply his power, extend the circle of his desires, and 
 increase the means of gratifying them, until he, at 
 length, arrives at all the blessings of mature civilization. 
 Hence, we see the use of natural agents. Without 
 them, human productiveness would be limited to the 
 exertion of the mere physical powers of man. 
 
 Natural agents, are all things, whether animate or 
 inanimate, which man can use for the purpose of assist- 
 ing him in production. 
 
 Animate natural agents, are beasts of burden, gener- 
 ally ; such as the ox, the horse, and the mule ; and, 
 also, in particular districts, the camel, the rein-deer, 
 the elephant, and the dog. 
 
 Some of the most important inanimate natural agents, 
 are, the explosive force of gunpowder, wind, the gra- 
 vitating power of v/ater, and the expansive power of 
 steam. 
 
 Every one is familiar with the uses to which the 
 natural agents are applied. The value of the benefits 
 which they have conferred upon mankind, by increas- 
 ing the productiveness of the otherwise unassisted labor 
 of man, can be estimated only by comparing the ad- 
 vantages which a civilized community possesses ovei 
 a tribe of ignorant barbarians. 
 
 And, as by further discoveries in science, and inven- 
 
 What are natural agents 1 
 
 What are animate natural agents 1 Inanimate? 
 
 What is said of the importance of the natural agents 1 
 
OP PRODUCTION; 139 
 
 tions in the arts, the natural agents shall become more 
 subjected to the power of man, and as knowledge be- 
 comes more widely disseminated, in the same ratio will 
 the condition of mankind be improved, and the means 
 of happiness augmented. 
 
 III. Of the manner in which 'productiveness may he 
 increased hy division of labor. 
 
 It has been seen that the productiveness of human 
 industry, may be greatly increased by inventions and 
 discoveries in the arts and sciences, by means of which 
 man may avail himself of the use of natural agents. 
 But human industry derives another important advan- 
 tage from a proper division of labor. 
 
 Thus, there are three departments of industry : in- 
 dustry of discovery, industry of invention, and opera- 
 tivo industry ; and different laborers in each. 
 
 In the first department, are ranked philosophers and 
 men of science ; such as those who investigate the 
 laws of mechanics, of astronomy, of navigation, and 
 agriculture, &c. ; and here, also, there are many sub- 
 divisions. The astronomer, the mechanic, and the 
 agriculturist, seldom make discoveries out of their own 
 departments. 
 
 In the second department, are those who make in 
 ventions in the arts, and apply the laws discovered by 
 
 By what other means, besides the use of natural agents, may productive- 
 ness be greatly increased 1 
 What are the three principal departments of industry 7 
 Who are ranked under the first department 1 Under the second 1 
 
140 OF PRODUCTION. 
 
 the first class, to practical purposes ; and here a di 
 vision of labor is equally necessary to success in inven- 
 tive industry. 
 
 In thei third department of industry, there are as 
 many distinct classes of laborers, and, consequently, 
 as many divisions of labor, as there are different trades, 
 pursuits, and professions, among mankind. 
 
 And so extensive is the field of labor comprised 
 within these three departments of industry, that, if the 
 labor were not divided among many thousands, and if 
 each individual were obliged to be his own discoverer, 
 inventor, and operator, old age would come upon him, 
 and death would close his labors, before he could re- 
 ceive any avails from his industry. 
 
 Therefore, each individual succeeds best, and pro- 
 duces a greater amount of value, by devoting himself 
 to but one occupation. Were the farmer obliged to 
 make his farming utensils, to build his own house and 
 barns, make his own furniture, and manufacture his 
 own clothing, it is evident that each article would be 
 poorly made, and much time would be uselessly con- 
 sumed. 
 
 But, by constantly pursuing the same occupation, 
 a great degree of skill and dexterity is acquired, 
 which greatly increases the productiveness of human 
 labor. 
 
 Division of labor, in a complicated process, avoids 
 the loss of time required in passing from one operation 
 
 Under the third 1 What would be the result if there were no division of 
 Jabor 1 What is gained by division of labor, in a complicated process 1 
 
OF PRODUCTION. 141 
 
 to another ; it shortens the period required for learn- 
 ing an operation, and suggests the contrivance of tools 
 for the performance of the operation in which they 
 are employed. For, the simpler any operation is, the 
 easier it is to contrive a tool, or an adjustment, by 
 which it may be performed. 
 
 Some operations, in a given process, require greater 
 muscular power, or greater dexterity, than others. 
 Some can be performed only by the most experienced 
 workmen, while others can be performed by children. 
 
 Now, by division of labor, a manufacturer is enabled 
 to employ, upon each operation, precisely the labor 
 adapted to it, and is obliged to pay for each portion of 
 the labor, no more than it is actually worth. This 
 must greatly diminish the cost of production. 
 
 Thus, the manufacture of pins may be divided into 
 ten or more operations, and each operation employ one 
 laborer. Thus, the labor of making a pin may be 
 divided into wire-drawing, wire-straightening, point- 
 ing, heading, turning, &;c. 
 
 But, some of the laborers employed, are men ; others, 
 are women or children ; and their wages vary from six 
 shillings to four and a half pence per day. 
 
 If the labor were not divided, one person must un- 
 derstand the whole process ; and, therefore, must be 
 employed at the highest price of labor ; and, hence, he 
 must be paid at the rate of six shillings a day, for that 
 part of the work which is worth only four and a half 
 pence a day. 
 
 What example is given as an illustration 1 
 
142 OF PRODUCTION. 
 
 This would greatiy increase the price of pins, and, 
 also, occasion a great deficiency in labor. It is by 
 this means, also, that occupation is provided for the 
 weak and the aged, for females and for children, who 
 would, otherwise, be unable to earn any thing. 
 
 Thus, by a proper division of labor, all the labor of 
 the community is rendered productive, and an im- 
 mense amount is annually added to the revenue of a 
 country.^ 
 
 IV. Limitations to the division of Labor, 
 
 Every process can be reduced to its most simple 
 operations ; and, when we have arrived at this point, 
 we can proceed no further in the division of labor. 
 Thus, the labor of making a pin 'can be divided into 
 many separate operations, each differing from either 
 of the rest ; but there is a point beyond which this 
 division cannot be carried, for it is no division of labor 
 to employ two men to perform the same operation. 
 
 From what has been said concerning the acquisition 
 of skill, the saving of time, &;c., by this division of 
 labor, it is evident that an establishment which carries 
 the division to this limit, and has just as many laborers 
 as will fully employ each other, can undersell any 
 other establishment of the kind, which does not carry 
 the division of labor to the same extent. And the 
 more systematically this division of labor, and of labor- 
 ers, is accomplished, the greater will be the economy. 
 
 Wayland. 
 
 What is the natural limit to the division of labor ? 
 
OF PRODUCTION. 143 
 
 But the division of labor may also be limited by- 
 other causes. These are, the limitations of capital, 
 and of demand. 
 
 1st. The greater the division of labor in any estab- 
 lishment, the greater the amount of capital which is 
 requisite. Thus, in a pin manufactory, where division 
 of labor is carried to its utmost limit, the proprietor 
 must have sufficient capital to provide a large amount 
 of the gross material, in order to keep all his laborers 
 employed. A large amount of ca^^tal is requisite to 
 establish and keep in operation such a manufactory. 
 
 Hence, in a poor, or in a new country, before capi- 
 tal has accumulated in the hands of large capitalists, 
 there is but little division of labor. Manufactories 
 will not be extensive, and the products of the country 
 will consist mostly of the raw materials, which require 
 but little division of labor for their production. 
 
 For example, in a new country, where cotton may 
 be raised, the raw material, cotton, will be exported, in 
 order to be Vv'rought into cloth, where there are greater 
 accumulations of capital, and consequently a greater 
 division of labor. 
 
 2d. Division of labor is controlled by the demand 
 for the article produced. If, in a certain district, there 
 has, heretofore, been a demand for all the cotton cloth 
 which one factory, with the proper division of labor. 
 
 What other causes limit the division of labor 7 
 
 Why may not a division of labor be carried to any gi-eat extent in poor or 
 new countries ? 
 
 How does a diminished densand for articles affect a division of the labor 
 required for their production 1 
 
144 OF PRODUCTION. 
 
 can manufacture ; and, if the demand should now de- 
 crease one half, a portion of the laborers must be dis- 
 charged, which would make the division of labor less, 
 or the whole must work only half the time. The for- 
 mer alternative would, probably, be preferred, as we 
 know is usually the case. 
 
 The demand for the article is controlled by several 
 circumstances, which it may be well to mention : — 
 
 1st. It is evident, that the greater the number of 
 the consumers, the greater the demand, and vice versa. 
 
 2d. The demand is controlled by the wealth of the 
 inhabitants, for none buy but those who are able. 
 
 3d. The demand is controlled by the cost of the ar- 
 ticle ; which, as it is greater or less, increases or di 
 minishes the number of consumers. 
 
 The same principles, as enumerated above, regulate 
 the division of labor, whether considered in relation to 
 portions of the same country, or to portions of the 
 whole world. There are, also, certain physiological 
 laws which regulate the division of labor in different 
 countries. 
 
 Only a very ^q\y of the objects of desire, are pro- 
 duced in one country ; for, different portions of the 
 globe possess different facilities for production, and no 
 district possesses advantages for producing every thing. 
 Thus, China produces tea ; Cuba produces sugar and 
 cotton ; and New York produces wheat ; and it would 
 be folly for one country to attempt to produce those 
 products to which it is in nowise adapted. 
 
 By what several circumstances is the demand for articles controlled 1 
 , What principles regulate the division of labor in different countries 1 
 
OP PRODUCTION* 145 
 
 And by this natural division of labor nations are 
 made dependant upon each other ; and if one prospers, 
 and exchanges and commerce are free, all prosper ; and 
 if one suffers, all suffer. Thus, this mutual depend- 
 ance makes it the interest of nations to seek the hap. 
 piness and prosperity of each other. 
 
 V. EJfects of the increased productiveness of human 
 industry. 
 
 When industry is judiciously applied to capital, the 
 result is product, value, or the means of gratifying human 
 desire. That is, increased productiveness is equivalent 
 to increased means of human happiness. If every 
 man, in a particular district, by the same amount of 
 labor that he employed last year, were able this year 
 to create twice as much value ; it must appear obvious 
 that a greater number of desires would be gratified, 
 and that, consequently, human happiness would be in- 
 creased. 
 
 This subject leads us to examine an objection which 
 has been made — that ^he use of labor-saving machinery 
 is prejudicial to the interests of the laboring classes. 
 
 The objections urged against labor-saving machines 
 are, that they employ a less number of laborers ; and 
 hence, that many laborers are thrown out of employ. 
 But, one general and incontrovertible argument against 
 
 What is the effect of this natural division of labor 1 
 
 What is the result of a judicious application of industry ? 
 
 What objections have been made to the use of labor-saving machineiy 3 
 
 IS 
 
146 OF PEODUCTION* 
 
 the truth of this objection is, that Improvenienfs in 
 machinery have been going on ever since the creation ; 
 that the demand for labor has not diminished, but has 
 more than kept pace with the increase of population ; 
 and that in those districts where improvements are the 
 most extensive, the laborers are the most numerous. 
 The desires of mankind have been found continually 
 to increase with the means of gratifying them ; and 
 although more products have been created by this in- 
 crease of productiveness, yet the desires of mankind 
 have been found sufficient for their consumption. The 
 population of a country is found to increase nearly in 
 the ratio of its productiveness. 
 
 It is true, that by the use of machines i\\Q manner 
 of labor is often changed, and a portion of the labor- 
 ers are thrown out of that kind of employment.' But 
 these changes are generally gradual ; for improvements 
 in machinery are usually made by slow degrees, and' 
 as the demand for laborers becomes less, fewer will 
 learn the trade, which will tend to keep up the wages 
 of those who remain m it. But the rm.pro\^ment may 
 be so sudden, that many ^aborer^ will be deprived of 
 their present occupation. Thus, upon the introduction- 
 of the cotton gin machine, for freeing the cotton of the 
 seed, which before required an immense amount of la- 
 bor, many laborers v/ere thrown out of this employ-^ 
 ment : but a new avenue for labor was thereby opened ;• 
 cotton became cheaper- — it was used by thousands who 
 
 What may bs said of th.e truth, of this objection /? 
 WJiat change in labor is effected by the use of machines ? 
 What has beeB. the effect of the introduction of the cotton-gin 1' 
 
OP PRODUCTION. 147 
 
 before were unable to procure it, a greater demand for 
 cotton was created, and a greater number of laborers 
 Demanded. There was a change in the manner of the 
 labor, but the amount required was greater. And sup- 
 pose the demand for cotton cloth to be doubled, there 
 must not only be twice the amount of cotton produced, 
 but also twice as many vessels built to transport it, and 
 twice as many men to navigate them, besides a greater 
 number of men to construct machinery to fabricate 
 the cloth. And all this increased demand for labor is 
 the result of the introduction of a simple labor-saving 
 machine. 
 
 A printing press is a labor-saving machine. So 
 by the invention of the o i of printing many thousand 
 copyists were thrown out of employ ; but who can es- 
 timate the vast increase of laborers, in communicating 
 knowledge, to which this invention has given rise ? 
 The desire for knowledge has fully kept pace with the 
 means of gratifying it. 
 
 But producers are also the consumers of many pro- 
 ducts, and they derive an advantage from the cheapness 
 occasioned by labor-saving machines. Each is there- 
 by able, by the same amount of labor, to procure a 
 greater amount of the objects of desire. 
 
 This is the same as though the income of each indi- 
 vidual were increased : for, if a man can procure, by 
 one day's labor, double the amount of products, it is 
 
 What of printing presses 1 
 
 What particular advantages do the producers themselves derive from the 
 Introduction of machinery 1 
 
148 OP PRODUCTION. 
 
 the same thing in effect as though his wages were 
 doubled. 
 
 By an increase of productiveness, therefore, every 
 consumer is rendered richer. It is also one of the 
 effects of machinery, as we have seen, that production 
 is rendered more perfect ; so that each person not only 
 obtains more of the same article, by his own labor, but 
 he also obtains a better article. 
 
 Machinery, in a greater or less degrecj supersedes 
 human labor. Let us, then, suppose the extreme case, 
 in which machinery should be brought to supersede 
 human labor altogether. Yet the numbei-s of mankind 
 would not be diminished, for the sum total of products 
 would be the same, and there would probably be less 
 suffering to the poorer and laboring classes to be ap- 
 prehended : for in that case the momentary fluctua- 
 tions, that distress the different branches of industry, 
 would principally affect machinery, which, and not 
 human labor, would be paralyzed ; and machinery 
 cannot die of hunger ; it can only cease to yield 
 profit to its employers, who are generally farther re- 
 moved from want than mere laborers. Although this 
 is hardly a supposable case, yet it serves to illustrate 
 the principle. 
 
 The conclusion, therefore, at which we arrive, is, 
 that transient evil may sometimes be experienced by 
 the producers, upon the introduction of labor-saving 
 machines ; but that an increase of productiveness, oc- 
 casioned by this means, is highly beneficial to the con- 
 
 Suppose the extreme case, in which machineiy should be made to super- 
 sede human labor entirely — what is the conclusion arrived at 1 
 
OF PKODUCTION. 149 
 
 sumers, and ultimately beneficial to the producers 
 themselves. All that we possess above the comforts of 
 savage life, is the result of the use of natural agents, 
 and of the increased productivensss of human labor. 
 
 SECTION III. 
 
 Of the Principles which govern the application of 
 Labor to Capital. 
 
 We have thus far considered labor and capital sep- 
 arately. But, as all production is the result of the 
 application of industry to capital, it will be proper to 
 consider the conditions on which they unite, and the 
 laws which regulate their union. In examining the 
 conditions on which labor and capital unite, and in in- 
 vestigating the laws of production, we shall be led into 
 the secret of national wealth, and shall discover those 
 principles of government and legislation which have 
 advanced the prosperity of some nations, and the mis- 
 taken policy which has so often involved the depression 
 and bankruptcy of others. 
 
 I. Freedom of Labor and Capital necessary to Pro- 
 duction. 
 
 Industry will be applied to capital in proportion to 
 the security of property ; and as every man enjoys the* 
 
 How have labor and capital been considered thus far, and what is it now 
 proposed to examine 1 
 What is the first principle necessary to production 1 
 What is said of tlie importance of security of property ? 
 
 13* 
 
150 OF PRODUCTION. 
 
 advantages of his labor and capital. This is almost a 
 self-evident proposition, for no one will labor unless he 
 expects to receive the rewards of his industry. 
 
 Where there is no division of property, and each 
 one is at liberty to take what he will, as the indolent 
 will fare as well as the industrious, th&re is no incentive 
 to industry. 
 
 And the same consequence results from insecurity 
 of property. Where the avails of one's industry are 
 liable to be taken from him, at any moment, by the 
 rapacious hands of a tyrant, few will labor more than 
 sufficient to support existence ; for if the industrious 
 lose the avails of their labor, they are benefitted no 
 more than the idle. Therefore, human labor will be 
 exerted, in different countries, very much in proportion 
 as the right of property is both understood and en- 
 forced. • 
 
 Hence the necessity of wise and efficient laws, and 
 the importance of all means which shall prevent the 
 violation of the right of property, either by governments 
 or by individ^ials. 
 
 Therefore, to preserve freedom of labor and capital, 
 and consequently to increase the amount of produc- 
 tiveness, moral and religious principles should be in- 
 culcated, and men should be taught to respect the 
 .rights of others. All violations of property should he 
 redressed, and each individual should be allowed to use 
 his property and his industry as he will, and as he 
 thinks will be the most advantageous to himself: for 
 
 What is said of the importance of good moral and rellgioua principles 1 
 
OF PRODUCTION. 151 
 
 every man is more likely to ascertain in what manner 
 he can best employ his capital and industry, than any 
 other man can ascertain for him. 
 
 But a government, by a mistaken policy, even when 
 its object is the public welfare, may sometimes aggra- 
 vate the very evil which it is designed to remedy. 
 
 If freedom of labor and capital be necessary to cre- 
 ate the greatest amount of productiveness, we see what 
 must be the effect of monopolies. 
 
 A monopoly is an exchisive right granted to a man, 
 or to a company of men, to employ their labor or 
 capital in some particular manner. Such was the ex- 
 clusive right granted to the British East India Com- 
 pany, to import into Great Britain or her territories 
 the productions of all countries east of the Cape of 
 Good Hope, 
 
 The effect of such a regulation is, to restrain the 
 freedom of labor and capital, and to prevent others 
 from engaging in business which might be profitable 
 to them. Such a regulation, is taking from one portion 
 of community some of its natural rights, and granting 
 them to others as a privilege. It is, therefore, a direct 
 injury to those from whom the right is taken. 
 
 Moreover, those who hold this exclusive privilege, 
 being liable to no "competition, may charge for their 
 commodities whatever they choose ; and thus the price 
 which the consumer must pay, is enhanced at the mere* 
 will of the monopolist. And it being for the pecuniary 
 interest of the monopolist to charge dear for his com- 
 
 What is a monopoly, and what its effect ? 
 
152 OP PRODUCTION* 
 
 modities, and there being nothing to restrain him, there 
 can scarcely be imagined any limit to the oppression 
 which he may exercise. 
 
 In the case of a patent and copy right, which, per- 
 haps, might be regarded as a species of monopoly, no 
 right is taken from the community, and the law inter- 
 poses merely to guaranty to a man the avails of his 
 own industry. 
 
 There are, however, some kinds of business, in the 
 good management of which the whole people are direct- 
 ly interested, which may be made the subjects of mon- 
 oply, for the general welfare. 
 
 Monopolies are sometimes created for the purpose 
 of building bridges and railroads, constructing ferries 
 and digging canals, where they are objects of public 
 interest ; and it is thought that such monopolies are 
 often very beneficial. For they are, many of them, 
 works that would never be undertaken by individuals, 
 unless government, by preventing the competition of 
 others, should secure to the proprietoi*s of such works 
 a more exclusive right in them than they would other- 
 wise possess. 
 
 But monopolies should never be granted where the 
 exclusive object is to promote the interest of one per- 
 son, or of a company of individuals. 
 
 Are patent and copy rights monopolies 1 
 
 In what cases may monopolies properly be granted 1 
 
OF rRODUCTIOX. 153 
 
 II. The greater the Ratio of Capital to Labor, the 
 greater will he the Wages of Labor, and the greater 
 will be the Stimulus to Industry. 
 
 Those who hold capital, are desirous of uniting it 
 with industry ; and those who have industry, are desir- 
 ous of uniting it with capital : for, if they be not so 
 united, neither will yield any profit. 
 
 Hence, when the number of laborers is great in pro- 
 portion to the capital, the demand for labor becomes 
 less, and the price of labor falls ; and, on the contrary, 
 when the amount of capital is great in proportion to 
 the number of laborers, the demand for labor increases, 
 and the price of labor rises^ This is always the case 
 under a permanent and wise government, where the 
 right of property is secure, and men expect to receive 
 the avails of their own industry. But, without any 
 opposition to this principle, wages may be high^ and the 
 laborer be unable to appropriate them to the gratifica- 
 tion of his desires, and here the stimulus to industry will 
 be lessened. 
 
 Such is often the case in a newly settled country of 
 great fertility, where wages are high, but where the 
 objects of desire are few, and attainable with difficulty. 
 
 But in a large city, where the ratio of capital to 
 labor is great, the wages of labor increase in propor- 
 tion ; and also the numerous objects of desire call forth 
 a greater exertion of industry ; for, by means of it, a 
 greater number of desires is gratified. 
 
 How does the ratio of cajjital to labor affect wages, and how illustrated 1 
 
154 OF PRODUCTION. 
 
 Hence, an accumulation of capital is an advantage 
 to the laborer as well as to the capitalist. For, as has 
 been seen, the wages of labor rise in proportion to the 
 increase of capital ; that is, in proportion to the ability 
 of those who must pay for the labor. 
 
 Hence, if the laboring classes repine at the prosperity 
 of the wealthy, they repine against the means of in- 
 creasing their own rate of compensation.'* 
 
 ^ It must not, however, be supposed, that it is better for a na- 
 tion, that one portion of the people should be mere capitalists, 
 and the other mere laborers ; that one portion should be f ery 
 wealthy, and the other very poor : better if all, by industry, vir- 
 tue, and economy, could attain to a moderate degree of inde- 
 pendence, and thus unite the occupations of laborer and capit- 
 alist. 
 
 But, the principles, views, and abilities of men, are so dif- 
 ferent, to say nothing of the effects of fortunate or disastrous 
 chances, or events, that any arbitrary attempts to equalize prop- 
 erty, must be regarded as vain and foolish in the extreme ; and 
 if property were equally divided to-day, there would be an ine- 
 quality to-morrow. 
 
 And, where this inequality arises from the economy and 
 frugality of the more industrious members of community, and 
 not from fraud and injustice, those less industrious, or less for- 
 tunate, have no cause of complaint, and have been defrauded of 
 none of their rights. 
 
 But, where distinctions in wealth have arisen, and are still 
 propagated by a partial and oppressive government, which taxes 
 the poor and industrious, for the support of the wealthy and idle, 
 there is sufficient cause of complaint, and the wealthy are justly 
 regarded as the enemies of the poor. 
 
 Of what advantage to the laborer, then, is an accumulation of capital 1 
 
OF PRODUCTIOlSr. ' 155 
 
 III. The Productiveness of Industry and Capital will 
 he increased in proportion to the Intellectual Improve^ 
 ment of a People. 
 
 Ignorant men are indolent, because they are unac- 
 quainted with the benefits that may be secured by in- 
 dustry, or because they know not the means of securing 
 them. 
 
 An Indian, who knows no better condition than his 
 own, has no motive to industry beyond what may be 
 adequate to procure the simple necessaries of life : but, 
 acquaint him with the conveniences and luxuries of 
 civilized life, and that by an additional effort he can 
 procure them, and his industry will expand with the 
 occasion. Thus knowledge excites the savage to exer- 
 tion, and directs that exertion to a profitable end. 
 
 In all trades and professions, the amassing of wealth, 
 and the consequent gratification of desire, are the 
 prime motives to exertion ; and knowledge and skill in 
 one's particular calling, are the sure and only means 
 of success. 
 
 We therefore see how labor must be stimulated, and 
 productiveness increased, by intellectual cultivation. 
 The principle upon which this proceeds, is so evident 
 in itself, that there is little need of a further illustra- 
 tion ; for every day's observation teaches us, that those 
 who are best acquainted with their business, are the 
 most successful. 
 
 What effect has the uitellectual improvement of a people upon the pro- 
 ductiveness of industry and capital 1 
 Why are ignorant men usually indolent 1 
 
156 ' OF PRODUCTION* 
 
 Knowledge should be made general, and extended to 
 all classes in community, for it enlarges the resources 
 of all. Also, the prosperity of a nation will depend 
 greatly on the purity of its moral character. 
 
 As morals become corrupted, idleness and crime in- 
 crease. On the contrary, on the good moral charac- 
 ter of a nation, and especially of a Republic, depend 
 the justice of its laws, security of property, and indi- 
 vidual and social virtue ; the invariable attendants of 
 which are industry and frugality, the sources of wealth 
 and happiness. 
 
 IV. Of Protective Duties. 
 
 By protective duties, is here understood duties or 
 taxes upon imported foreign products. Such duties 
 are levied either for the purpose of favoring the do- 
 mestic production of some commodity, — as when a 
 duty is levied upon all imported broadcloths, for the 
 purpose of favoring domestic manufactures ; or, 2dly, 
 for the purpose of public revenue ; or, 3dly, to support 
 the manufacture of some important article of public 
 use, so as to enable a nation to rely on its own inter- 
 nal resources, in case of restrictions upon its commerce, 
 by which a supply of foreign products may be prohi- 
 bited. Each of these objects will be considered in 
 detail. 
 
 Why does the prosperity of a nation depend greatly upon the pxirity of i«s 
 mofal character T 
 What are protective duties 1 
 For what purposes are they imposed 1 
 
OF PRODUCTION. 157 
 
 1st. Suppose that foreign broadcloths can be afford- 
 ed for five dollars per yard, but that our home manu- 
 factures cannot afford them for less than ten dollars 
 per yard. In this case we should use foreign cloths 
 exclusively. 
 
 But suppose that government, for the purpose of 
 supporting home manufactures, should now impose a 
 duty of four dollars per yard on all imported broad- 
 cloths. Now all who purchased broadcloths, would be 
 obliged to pay nine dollars per yard for the same, for 
 they could not be afforded for a less sum. 
 
 But it is evident that this duty would not support 
 home manufactures, for the profits upon the sale of do- 
 mestic broadcloths would not be sufficient to pay the 
 cost of production. For, if it cost ten dollars per 
 yard to manufacture the cloth, and only nine could be 
 obtained for it, as no profits could be gained in the 
 business, none would engage in it. 
 
 The effect of such a duty, then, where the duty is 
 not sufficient" to raise the price equal to the cost of 
 production, is simply this : — the importer pays govern- 
 ment four dollars per yard for all broadcloth that he 
 brings into the country ; and the consumer, or pur- 
 chaser of the .cloth, pays the importer. In other 
 words, the consumer pays the importer four dollars ex- 
 tra per yard, for which he receives no value in return ; 
 and the importer is merely the agent for transferring 
 this money into the hands of government. 
 
 1st. When they are imposed for tne purpose of favoring domestic manu- 
 factures, what are the arguments for and against them •? 
 
 14 
 
153 OF PSODUCTION. 
 
 The consumers, or the people generally, are losers 
 to the full amount of the extra price paid ; the impor- 
 ter neither loses nor gains by the operation, because 
 he charges the consumer or purchaser an extra price 
 per yard equal to the amount of the duty ; and the 
 government receives the whole benefit, which is none 
 other than an indirect tax upon those who use broad- 
 cloths. By such a duty domestic manufactures are 
 not supported, and the nation is evidently impover- 
 ished. 
 
 But let us suppose that the duty, instead of being 
 four dollars, should now be increased to six dollars per 
 yard. 
 
 Then foreign cloths could not be obtained for less 
 than eleven dollars per yard, and the domestic manu- 
 facturer being%ble to manufacture cloth for ten dol- 
 lars, would be able to undersell the importer. Now 
 encouragement would be given to domestic manufac- 
 tures, and industry would flow in that dire'jtion in 
 proportion as that business was more profitable than 
 any other. 
 
 But competition would soon reduce the profits to 
 the same ratio that existed between other branches of 
 industry. Nevertheless, as we can ijow furnish our 
 own cloths cheaper than foreigners can produce them 
 while they are obliged to pay the duty, we may use 
 cloths wholly of domestic manufacture. Let us now 
 see if the nation is any gainer in wealth by this sys- 
 tem. 
 
 We will suppose that the price at which cloth is 
 sold, still remains at eleven dollars per yard. The 
 
OF PRODUCTION. 159 
 
 manufacturer would then gain one dollar on every yard 
 that he sold ; and it cannot be conceived that he could 
 possibly gain more, for the cost of production, by 
 labor, machinery, (fee, is ten dollars per yard, and he 
 sells for eleven. Free competition will always keep 
 the price reduced ; and one branch of industry cannot 
 long be more profitable than others, for the high profits 
 will induce other individuals to make investments in 
 the business, until the rate of profit is reduced to ils 
 ordinary level. 
 
 It is therefore evident, that the profits derived by 
 the manufacturer are no greater than those derived 
 from other branches of industry. The manufacturer 
 gains one dollar profit on each yard, and the consumer 
 evidently loses six dollars on each yard that he pur- 
 chases. For, were it not for the duty on foreign cloths, 
 he might have obtained those of the same quality for 
 five dollars, and he now pays eleven. 
 
 What profit, then, does the nation derive by the sup- 
 port of domestic manufactures ? It may be said that 
 they give encouragement and support to industry which 
 would not otherwise be employed. 
 
 But, although industry should be supported, it would 
 be supported u^nprofitably, for the cost of production, 
 as we have seen, is greater than the value of the pro- 
 duct. Thus, in the above case, the value of broadcloth 
 was five dollars per yard, for it could be manufactured 
 for that ; and wherever a greater value is consumed 
 in the manufacture of the product, the excess is ^ 
 much loss. 
 
 But again ; as the price of broadcloth rises, the de- 
 
160 OF PRODUCTION. 
 
 mand for it will lessen, and if the price be doubled, 
 probably not half the quantity will be used. One half 
 of the consumers, and those of the poorer classes, will 
 thus be deprived of the use of the article. 
 
 And if the price of broadcloth be doubled, and only 
 half the usual quantity used, the community will pay 
 the same for the half that they did for the whole, and 
 the same amount of industry will be employed as be- 
 fore. But it will be industry unprofitably employed ; 
 the same as where a laborer might have obtained a 
 bushel of wheat for a day's labor, but now voluntarily 
 works two days for the same.^ 
 
 ^It is sometimes cheaper for a man to buy goods than to man- 
 ufacture them ; it is sometimes cheaper for a man to buy wheat 
 ihan to raise it. Upon the same principle it is sometimes cheap- 
 er for a nation to buy its broadcloths than to manufacture them. 
 And the principles which should govern the policy of indivi- 
 duals and of nations, are the same. If a farmer has time, which 
 he could not profitably employ in any thing else, he may make 
 many of his farming utensils ; but if the business of cultivating, 
 gathering, and disposing of his crops demands the whole of his 
 time, better it would be to purchase his farming utensils of the 
 mechanic. If the farmer could make all his farming utensils 
 equally as well as the mechanic by working twenty days in the 
 year, and if by working upon his farm ten days in the year he 
 could raise produce sufficient to purchase his farming utensils, 
 the latter would certainly be the more politic course. The same 
 principle may be applied to nations. 
 
 Now, suppose that Great Britain had hitherto supplied us 
 with all the broadcloth that we have us'cd, and that she exported 
 to this country one hundred thousand yards annually ; suppose 
 that we paid for this cloth five hundred thousand bushels of 
 wheat, which cost the country five hundred thousand days labor j 
 
OF PRODUCTION. 161 
 
 2d. We are next to consider duties upon imports, as 
 a system of taxation ; that is, where they are imposed 
 for the purposes of public revenue. 
 
 The revenue which is obtained from duties on im- 
 ports, is not levied in proportion to the wealth of those 
 
 now, suppose that we could not manufacture the same amount 
 of cloth, of the same quality, with less than eight hundred 
 thousand days labor, which would be the better policy for the 
 country ; to manufacture the cloth, or to raise the wheat, and 
 send that in exchange for it ? 
 
 The answer is at once obvious. While we can raise the 
 w^heat, we shall purchase our cloths with it. But if there is a 
 f^reat amount of industry in the country which could not be em- 
 ployed in raising wheat or any other products by which to obtain 
 the broadcloth, we might then find it the better policy to manu- 
 facture our own cloths ; the same as the farmer, who had not 
 land enough to employ his whole time in raising wheat or other 
 products, might find it a saving to make a part or the whole of 
 his farming utensils. It is for the advantage of nations, as well 
 as of individuals, to obtain their necessary articles of consump. 
 tion with the least possible amount of labor. 
 
 But although it may at first cost us more to manufacture our 
 own cloths than to pay other countries for them, it may be 
 urged, that by protective duties, we shall shorten the period at 
 which we may profitably supply ourselves, and that thus our ul. 
 timate benefit will more than repay our temporary loss. And 
 first, what proof have we that we can ever manufacture cloths 
 as advantageously as England, for example, can manufacture 
 them ? And why can England or any other country now 
 afford them so cheap ? If we enquire into the causes that ena- 
 ble the English manufacturer to afford cloths at so low a price. 
 
 2d. What are the arguments for and against protective duties, wlien i'la 
 posed for the purposes of public revenue 1 
 
 14* 
 
162 OF PRODUCTION. 
 
 who pay. A person worth a mllHon of dollars maj 
 avoid paying the tax, by not using the article upon 
 which the tax is levied ; while a poor person, by using 
 the article, may pay a greater amount of taxes. 
 
 If the duty were upon broadcloths, the man worth 
 
 I apprehend that we shall not be so ardent to see the same state 
 of things in our own country. Until our population, and espe- 
 cially the operative classes, become so numerous that the labor- 
 ers are obliged to work for a bare subsistence, the wages of labor 
 can never be so low in this country, nor, consequently, can 
 manufactured products be afforded so cheap here, as in Great 
 Britain, or in any other country where the same causes operate 
 to keep down the v/ages of labor. 
 
 I speak here of the manufactu4-e of those products for which 
 one country affords no better natural fac^Htics than another. If 
 Great Britain receives the cotton which supplies her manufac- 
 tu:i3s at the same rate that Massachusetts receives hers, and the 
 natural facilities of water, steam power, machinery, &c., are 
 th© same in both countries — and if the wages of labor are lower 
 •^Xi England than in Massachusetts, England can certainly 
 manufacture cotton cloth cheaper than Massachusetts can. 
 Therefore, before concluding ^that manufactures can be support- 
 ed as cheaply and profitably in one country as in another, we 
 'must take into consideration the natural facilities of each 
 country, and the wages of labor as they now are, and as they 
 are likely to be in future. 
 
 Bnt if it be thought, that by the natural course of events, we 
 can ever manufacture any given article as cheaply as any other 
 nation can produce it, the farther question arises, can we, by 
 protective duties, hasten such an event ; and if so, can we do it 
 profitably ? For it may be that the cost would be far greater 
 than the gain. As has been shown, protective duties are a pre- 
 sent tax upon the nation ; and if their object be to encourage 
 tiUT manufactures until thejr can support themselves, they should 
 
OF PRODUCTICN. 163 
 
 five thousand dollars would want as many coats as the 
 man worth a million, and he must therefore pay as 
 high taxes, if the public revenue were all derived from 
 this source. 
 
 Another objection is, that the taxes paid by this 
 
 not only be able to support themselves after that period, but also 
 to repay the expense of that fostering care which has been be 
 stowed upon them. 
 
 For the support of manufactures in a country that possesses 
 natural advantages for them, large accumulations of, capital in 
 the hands of individuals are necessary, and also a numerous 
 population ; and the poorer and more numerous are the operatives, 
 so much the cheaper may the manufactured articles be afforded. 
 If the wealth of a community be pretty equally divided among 
 Us inhabitants, it is evident that the wages of labor will be higher. 
 For those in easy circumstances will not labor at so cheap a rate 
 ss i.iiose who are pressed by immediate v/ant. 
 
 Now, it has been shown, that where protective duties are 
 necessary for the support of domestic manufactures, they do not 
 increase the sum total of the capital of a country, but, on the 
 contrary, the country is impoverished by them, for they occasion 
 an unproductive expenditure of industry. But yet it is true that 
 protective duties, if carried to a very great extent, may work 
 such a change in things, that manufactured articles may be pro- 
 duced as cheaply in the country impoverished as elsewhere ; for 
 although protective duties impoverish the nation, they impoverish 
 that portion of the nation chiefly which pays the duties or the 
 extra price occasioned by them, and the other portion (thfe 
 manufacturers) continue to increase in wealth. Thus, although 
 there is a deduction from the national capital, yet what remains 
 accumulates in the hands of a few, and the remainder are ren- 
 dered poorer than they otherwise would be. 
 
 By the continued operation of such causes, manufactures may 
 
164 ' OF PRODUCTION. 
 
 method do not all accrue to the government. By a 
 duty of five dollars per yard on imported broadcloth, 
 the price of all broadcloth in the country is raised five 
 dollars per yard, while foreign broadcloth continues to 
 be imported ; and government receives only the extra 
 
 finally be supported, if they will only increase the population to 
 such an amount that there will be no other source of industry 
 open for them ; for protective duties evidently collect capital in 
 title hands of the few, and impoverish the great mass of the com- 
 munity. So far they are favorable to the support of manufac- 
 tures ; but it must be confessed it is not so readily seen v/hat 
 tendency they have to increase the numbers of the population ; 
 for as the means of subsistence fail, it is a natural consequence, 
 that the population diminishes. But if the population, and espe- 
 cially if the poorer classes are sufficiently numerous, doniuf^Lic 
 manufactures may be supported, although their introduction 
 may have been attended by an unprofitable consumption of the 
 national wealth. But no person should wish them to be intro- 
 duced before their natural time, if the unnatural means used for 
 the purpose are attended with consequences so fatal. 
 
 At their proper time, manufactories will be established m 
 every country where they can be rendered profitable, and it is 
 thought that no legislative enactments can hasten that period 
 without inflicting upon the country an evil greater than the 
 good which is gained. But as facts are a kind of argument the 
 least liable to contradiction, we will advance a few to illustrate 
 the effects of the French protective system. 
 
 To favor the working of her own mines, France has imposed 
 duties on all foreign iron imported into the country. During a 
 period of eight years, from 1814 to 1822, the French paid, in 
 the increased price of native iron, occasioned by the duties on 
 foreign iron, upwards of forty millions of francs. This is the 
 direct cost for protection : in other words, it is the price that 
 
OF PRODUCTION. 165 
 
 price paid on that which is imported, while the con- 
 sumers pay into the hands of the producers the extra 
 price on American cloths. Thus one portion of the 
 people is paying into^ the hands of another, and not 
 into the hands of government. 
 
 France has paid for unproductive industry, for she could have 
 obtained the iron for forty millions of francs less than she gave 
 for it. The iron which the French are obliged to use, is render- 
 ed dearer by this system, consequently the demand for iron has 
 diminished, for fewer can afford to use it ; and wherever it is 
 used, it has increased the price of every thing with which it is 
 connected. 
 
 " The effect of these measures is to add fifty francs to the 
 price of a plough, and to render cotton machinery one third 
 dearer than it otherwise, would be if imported. The price of 
 charcoal has been doubled or trebled, and from twenty.five to 
 fifty per cent, has been added to the price of fire and wood." 
 And yet the iron business remains below the average rate of 
 profit. 
 
 France has imposed a duty on foreign sugar, which has in- 
 deed increased the quantity made at home and at her islands ; 
 but by the effect of this duty, France pays for the sugar that she 
 now uses one million four hundred thousand pounds per annum 
 more than she would otherwise pay. Suppose this to continue 
 for twenty years, it will then amount to twenty-eight million 
 pounds sterling, the interest of which, at five per cent., will buy 
 nearly the whole amount of sugar now consumed in France. It 
 was thought that these duties would give encouragement to the 
 manufacture of sugar from beet-root, which would finally supply 
 France a* the ordinary price. But long before such a period 
 can arrive, if it ever Can, France will have expended a sum of 
 money, the interest upon which would far more than supply hey 
 with the sugar that she now consumes. 
 
166 OP PRODUCTION. 
 
 But it is not simply taking five dollars from one man 
 and giving it to another, — it is worse than this ; it is 
 taking five dollars from the consumer, while the man- 
 ufacturer receives, in the case supposed, only one dol- 
 lar profit, and the difference, four dollars, is consumed 
 
 In order to favor the cotton manufacture, for which she ia 
 but poorly adapted, France has imposed duties upon the pro- 
 ducts of other nations, which have retaliated by imposing duties 
 on her wines and silks. Thus other nations, which before pur- 
 chased these articles of France, now supply themselves, which 
 has been so great an injury to France, that since the Revolution 
 her exports of wines and silks have considerably diminished. 
 Thus the industry of Fi'ance has been expended upon products 
 that were not natural to her soil and climate ; and other nations, 
 for the sake of retaliation, have exper^ded their industry upon 
 what is not natural to them. The productiveness of all coun- 
 tries would be greatly increased if all could be induced to follov/ 
 the liberal system of free trade. 
 
 But while many admit that the free trade system would be 
 the best for all nations, if all would adopt it, they contend, that 
 if one nation adopts the prohibitive policy, others are obliged, in 
 self-defence, to adopt the same. For example, we are told that 
 if England imposes duties on the cotton that we export to that 
 country, we must, in self-defence, oblige her to pay duties upon 
 broadcloth, or some other product with which she supplies us. 
 By obliging us to pay the duty on cotton, England may inflict 
 a severe injury upon us, for she may thus deprive us of our best 
 market for cotton ; but at the same time she inflicts a gi^eater 
 injury upon herself; for if she attempts to cultivate the cotton 
 either at home or in her colonies, the very fact that she is obliged 
 to support that cultivation by a duty upon our cotton, shows 
 that her industry might have been more profitably employed iu 
 the creation of some other product which she might have ex. 
 changed for our cotton. 
 
OF PKODITCTION. 167 
 
 in unproductive labor. It is so much value lost to the 
 community. 
 
 3d. Duties are sometimes levied on imported articleSy 
 m order to encourage their home manufacture ; lest, 
 in case of war or some unforeseen event, the nation 
 that produced the articles "should refuse to supply 
 fhem. 
 
 Thus, if, in time of peace, we received all our mu- 
 nitions of war from Great Britain, because she could 
 afford them cheaper than we could manufacture them, 
 it would certainly be an advantage to the nation to 
 obtain them from that source, provided it could always 
 
 But although we suffer by the policy of England, shall we 
 gain any thing by adopting the same policy towards her ? If 
 we impose a duty on her broadcloths, whether we attempt to 
 manufacture our own cloths, or still use those of England, the 
 country is impoverished, as has already been shown. The only 
 benefit, as I conceive, that we can derive from this system of 
 retaliation, is, that, we may, perhaps, compel England, by injur 
 ing her, to adopt a more liberal policy towar Is us. 
 
 If England closes her. market against our cottoi', we may re- 
 fuse to receive her broadcloth ; we may, perhaps, injure her more 
 than she can injure us. But while we continue the prohibitive 
 policy towards England, we shall be hijuring ourselves ;. and 
 the ofily wisdom in such a course, v.'Ould be the probability that 
 we might induce Englaad to abolish her duties on our products. 
 Were the foreign trade of nations regulated by their true in- 
 terests, there wouM no longer be any necessity for this destrac, 
 tive pystem of commercial Vv'arfare. 
 
 3d, Vfhat maj^ be said of the policy of productivG duties, when imposel 
 for purposes of iiatiGnal safety 1 
 
163 OP PRODUCTION. 
 
 thus obtain them. But, if war should occur; Great 
 Britain would prohibit the export from her ports of 
 munitions of war, and* we should be left at the mercy 
 of our enemy. 
 
 It is best for the nation to guard itself, at any haz- 
 ard, against such an event. And, although duties 
 upon articles of necessity are an evil, yet in the case 
 above mentioned it may be an unavoidable one. 
 
 V. Of Bounties, 
 
 The des gn and effect of bounties is nearly the same 
 as that of prospective -iuties, and the principle objections 
 that may be urged a^^^ainst the former, apply equally 
 to the latter. But, in one respect they differ from 
 protective duties. Bounties are never offered for the 
 purpose of obtaining a revenue ; on the contrary 
 government, in this case, is paying out money instead 
 of receiving it. 
 
 The follov/ing is the manner in which bounties are 
 bestowed :— If foreign cloth can be afforded for five 
 dollars per yard, and we cannot make it for less than 
 .ten, government gives to the home manufacturer five 
 dollars for every yard that he sells, and the cloth is 
 sold at its former price of five dollars per yard. 
 
 But from whence does government obtain the money 
 which it thus expends in bounties ? Evidently by tax- 
 
 What is the design and effect of bounties ? 
 How do they differ from protective duties 1 
 In what manner are bounties bestowed ? 
 
OF PRODUCTION. 169 
 
 ing the people in some manner ; for government has 
 nothing which it does not receive from the people. 
 
 To show the inexpediency and folly of granting 
 bounties for the purpose of favoring domestic manufac- 
 tures, would require but the same arguments which 
 may be used against protective duties ; for the effects 
 of each upon production are the same. 
 
 Bounties, however, the same as protective duties, 
 may be effectual in supplying us with necessary pro- 
 ducts, such as munitions of war, &;c., for the supply 
 of which it would be unwise to depend upon foreign 
 countries. But, for several reasons, bounties -are less 
 objectionable than protective duties : — for, 
 
 1st The price of the article is not visibly raised, 
 and the rich and the poor are supplied as equally as 
 before, and apparently, though not really, at as cheap 
 a rate ; — for the taxes of all must be heavier, as from 
 this source government obtains the revenue which it 
 expends in bounties. 
 
 2d. In the case of bounties, we pay the extra price 
 only upon articles of domestic manufacture, while by 
 discriminating duties we pay the same upon articles 
 both foreign and domestic* 
 
 Thus, by a duty of five dollars upon every yard of 
 imported broadcloth, the price of broadcloth is liable 
 to be raised five dollars, and the country pays this 
 extra price for all the cloth which it consumes, whether 
 foreign or domesti<3. 
 
 In what cases-might bounties be bestowed with proprietj' ? 
 Why axe they Jess objectionable than protective ^dut}es 3 
 
170 OF PROBUGTIOIf* 
 
 But, hy a bounty of five dollars on domestic cloths, 
 the price of broadcloth is not advanced, and the coun» 
 try pays, in increased taxes, only for the cloths of 
 home manufacture. The evil of bounties is of the 
 same nature, although of less extent than that which 
 arises from protective duties. 
 
PART SECOND. 
 
 DISTRIBUTION OF WEALTH 
 
 It has been seen, under the head of production, that 
 all exchangeable value is the result of the application 
 of labor to capital. 
 
 Where both labor and capital are the property of 
 the same individual, the whole increase of value be- 
 comes his exclusive property ; but, where they belong 
 to different individuals, — where one advance? labor 
 and the other capital, — the value must be shared be- 
 tween them. 
 
 It belongs to this part of the work to treat of the 
 laws by which this distribution is regulated, in the va- 
 rious branches of production. 
 
 The subject of Distribution is different from that of 
 Exchange, The former treats of the laws by which 
 the immediate -producers of value receive respectively 
 their portion of the result : but the latter, considering 
 these values as already apportioned among their respec- 
 
 Of what does this part of the work treat 1 
 
 How does the subject of Distribution differ from that of ExcLianse ? 
 
172 OF DISTRIBUTION. 
 
 tive owners, treats of the manner in which individuals 
 make a mutual exchange of these values, and the prin- 
 ciples which pegulate those exchanges. 
 
 After value has been created by the union of indus- 
 try and capital, the first object is to divide that value 
 among those who have contributed to the production. 
 
 We shall therefore next proceed to consider the 
 laws which regulate this division. 
 
 We shall first consider the relative proportions of 
 the value created which different kinds of labor re- 
 ceive. 
 
 I. Let us, for example, suppose a cotton factory to 
 be established where many different kinds of labor are 
 required. 
 
 Among the laborers there will be some possessing 
 considerable skill and experience, acquired by pre- 
 vious discipline ; and others, whose manual labor only 
 will be required, which any healthy laborer can per- 
 form, although possessed of no previous skill and ex- 
 perience. 
 
 Now, we know that those of the latter class will be 
 paid the lowest wages ; but, where some previous 
 skill and experience are required, the wages will be 
 higher. 
 
 Where previous skill and experience are required, 
 and where trust and confidence also are reposed, as in 
 
 What are the first laws to be considered, under the head of Distribution 1 
 How is the subject illustrated by the case supposed 1 
 What principles regulate the wages of those who perform the simple 
 labor 1 
 
OF DISTRIBUTION. l73 
 
 those who manage the purchases aad sales,, a greater 
 remuneration will be given ; and he who has the gen- 
 eral supervision of the whole, will expect to receive 
 the greatest remuneration for his services. 
 
 Suppose the factory to be a profitable establishment, 
 and that, at the end of each year, after settling the 
 accounts of the receipts and expenditures, there re- 
 mains a certain sum, to be divided among the laborers 
 and the owners, of the capital employed. Of that part 
 which falls to the laborers, let us see v.'hat are the prin- 
 ciples which regulate their respective portions ; for wo 
 know they will not share equally. 
 
 First, with regard to the portions of those who per- 
 form the simple labor, or that which is unconnected 
 with previously acqmred skill. 
 
 Such laborers must be paid at least as much as their 
 labor costs them ; that is, sufficient to furnish them 
 with all the necessaries of life. For, if less be paid 
 them, their number will diminish, and the class will 
 soon become extinct. 
 
 Their wages must also be sufficient to support their 
 families— to support their children while unable to 
 support themselves— and also to support the aged and 
 the infirm. 
 
 The wages of all the laboring classes must be ade- 
 quate for all these purposes— for these are the least 
 wages which they can receive, and live, and keep their 
 species in existence. 
 
 And, were the profits in any kind of industry not 
 sufficient to afford the means of support to the labor- 
 ers^ that branch of industry would soon be abandoned. 
 15* 
 
174 OF DISTRIBUTION. 
 
 It is however iiere to be remarked, that what is lie- 
 cessary to the sustentation and comfort of a human 
 being, differs greatly in different climates, and in differ- 
 ent countries in similar climates. 
 
 The necessary cost of living in a cold climate, is 
 usually greater than the cost of living in a warm cli- 
 mate. In the latter, therefore, the wages of labor will 
 be less than in the former. 
 
 Thus, in some parts of the East Indies, laborers may 
 be obtained for five or six cents per day ; while in the 
 United States, a laborer can barely support himself 
 with fifty cents per day. 
 
 Thus, the greater the expenses of living, the greater 
 will be the wages of labor. ^ 
 
 This general principle, the cosi of living, is there- 
 fore the first and the most iaiportant principle that 
 regulates the wages of labor. 
 
 a There sometimes arises a temporary exception to this gene- 
 ral principle. It sometimes happens that a high price of food 
 depresses rather than elevates the scale of wages. During a 
 period of temporary scarcity, when, of course, provisions are 
 high, the difficulty of procuring subsistence may force more la. 
 borers into the market, or exact more exertion from those already 
 engaged, and thus the supply being too great for the demand, 
 the wages of labor will fall. 
 
 But the sufferings of the laboring class would, ere long, thin 
 its ranks, and again reduce the supply to a level with the de- 
 mand. This temporary exception is, therefore, a confirmation 
 of the general principle. 
 
 How does the cost of living vary in different climates 1 
 And, how are the wagos of labor affected thereby 1 
 
or DISTRIBUTION. 
 
 175 
 
 But the wages of simple labor are often far above 
 this point, and are also liable to many variations ; the 
 causes of which, we will proceed to explain. 
 
 If the profits upon industry and capital are great, 
 and capital is abimdant, the wages of labor will rise ; 
 for, in proportion to the amount of capital, and the 
 profits to be made by its investment, the demand for 
 labor will increase ; and, the greater the demand for 
 labor, the greater will be its exchangeable value. 
 
 And, if the supply of labor be small, while there is 
 abundant capital for its employment, the greater will 
 be the demand, and the higher the wages of labor. 
 
 But, if the supply of labor be abundant, an opposite 
 effect will be the result, and the wages of labor will 
 fall. 
 
 , The application of these principles will determine 
 the wages which the common operatives in a cotton 
 factory, or in any branch of business, will receive for 
 their labor. 
 
 The above are the most important principles which 
 regulate the wages of simple labor. 
 
 But there is another kind of labor that requires 
 education, which of course adds t^> its cost ; and, 
 where one kind of labor costs more than another, 
 the wages must be sufficient to pay the whole cost, 
 or that kind of labor will soon cease to be produced. 
 
 If, in the above factory, those v/ho manage the pur- 
 
 What circumstances cause the wages of labor to vary from tlje cost of 
 liying 1 
 What regulates the wages of educated lahor 1 
 
176 OF PRODUCTION^ 
 
 chases and sales, had previously employed much tirae 
 in commercial transactions, whereby they bad acquired 
 skill in the management of such business, as such skill 
 can be obtained only by costly experience, they must 
 be remunerated for all their skill has cost them, or no 
 one hereafter will be at the expense of acquiring it. 
 
 And, where an apprenticeship is required in any 
 trade, the time thus employedy and the expenses incur- 
 red, must be met by a proportionate increase of wages 
 paid for labor in such trade. 
 
 ThuSy before a person can be admitted to the prac- 
 tice of law or medicine, a previous course of study 
 must be pursued, and the practitioner must be remune- 
 rated for the expenses of his education ; and, as the 
 time thus employed in acquiring the profession, has 
 produced no revenue, he must receive an additional- 
 compensation equal to what he might have obtained 
 during the same time in other branches of industry. 
 
 And, if it be a trade or profession in which few suc- 
 ceed, those few will be more highly remunerated for 
 their services. 
 
 The same principles aiiect the wages of difFereni 
 kinds of labor in the before-mentioned factory. Each 
 kind of labor must be paid at least as much as it has 
 cost : the wages will then vary from the standard of 
 cost, according to the fluctuations of supply and de- 
 mand, and according to the profits obtained in that 
 branch of industry. 
 
 How is it in different professions ? 
 
 What general principles regulate the wages in the Ijef ore-mentioned fac- 
 tory 1 
 
or DISTRIBUTION. 177 
 
 Thus, if a certain amount of profits is to be shared 
 among the laborers in the factory, their relative pro- 
 portions are to be determined by the above-mentioned 
 circumstances. 
 
 In determining the wages of labor, therefore, mathe- 
 matical exactness cannot be expected. All that can 
 be effected, and all that is necessary, is firmly to estab. 
 lish general principles, whence it will be easy to draw 
 a multitude of inferences, varied and modified by cir- 
 cumstances. 
 
 II. We next proceed to consider the relative propor. 
 tions of the value created which fall to the share of 
 different kinds of capital employed in the production. 
 
 All capital which possesses exchangeable value, (and 
 that is the only kind of capital for the use of which 
 any thing is given in exchange,) has been obtained by 
 labor, and, consequently, represents a certain amount 
 of labor. 
 
 But, diflTerent kinds of capital represent different 
 kinds of labor ; such as the labor of discovery — the la- 
 bor of invention — and mere manual labor : conse- 
 quently, the use of capital should be paid upon the 
 same principles that the labor which obtained it was 
 
 Suppose that a western fur- trader should obtain the 
 
 Can we arrive at mathematical exactness upon this point 1 
 What is the second division of the subject to be considered ? 
 How has all exchangeable value been obtained ? 
 Upon what principles should the use of capital be paid ? 
 Illustrate the principle by the case supposed. 
 
178 OF DISTEIBUTION* 
 
 aid of an Indian to assist him in transporting his furs, 
 and for twenty days' labor should agree to give him 
 ten pounds of powder. 
 
 This would be the wages of labor paid for twenty 
 days' service. ' 
 
 But, suppose the trader should now require a canoe, 
 the building of which would cost the Indian twenty 
 days' labor. 
 
 If he purchased the canoe, he would give him ten 
 pounds of powder ; that is, allowing that the tools and 
 the materials of the Indian cost him nothing, and that 
 this kind of labor required no more skill than the other. 
 
 But, if the trader only wished to obtain the use of 
 the canoe, how much powder must he give for the use 
 of this capital ? 
 
 If he used the canoe but twenty days, he would not 
 give ten pounds of powder for the loan of it during 
 that time, if the canoe were but little injured by this 
 use of it ; for then -the Indian might lend it many 
 times, and receive for the twenty days' labor employed. 
 in building it much more powder than he recei>ved for 
 the same amount of labor employed in transporting 
 furs. 
 
 But, if the Indian knew that the canoe would be de- 
 stroyed by this twenty days' use of it, he would then 
 demand the ten pounds of powder. 
 
 But, if the canoe might be employed a hundred days 
 before it would be rendered useless, then for the hun- 
 dred days he would charge but ten pounds of powder, 
 and for twenty days only two pounds. 
 
 Thus, the interest paid for the use of capital, is de- 
 
OF DISTRIBUTION. 178 
 
 termined by the same principles which regulate the wa- 
 ges of labor. For capital is labor only in another 
 Ibrm.^ 
 
 * Smith asserts that all values produced, represent pre-exerted 
 human labor, or industry, either recent or remote ; or, in other 
 words, that wealth is nothing more than labor accumulated, 
 from which he infers the consequence that labor is the sole 
 measure of wealth, or of value produced. 
 
 Mr, Say considers this principle erroneous, and his argumck; 
 is, that when once an important invention is made, the produa* 
 tion resulting from it, is no longer the product of the inventor's 
 industry ; that " the man who first discovered the property of 
 fire to soften metcls, was not tlie actual creator of the utility 
 this process adds to smelted ore." 
 
 It is true that the labor of discovering this process, if any labor 
 were required, did not create the utility here spoken of. Mr, 
 Say is, therefore, correct, and I apprehend that the views of 
 Mr.' Smith were also correct, although he failed to express theio 
 clearly. 
 
 Although the utility of Ihe above.mentitaned process, was not 
 created by the discovery, yet the exchangeable value of smelted 
 ore, is still determined by the labor required to effect that prt 
 ess. And the exchangeable value I suppose to be the wealth 
 here referred to by Mr. Smith. 
 
 Very great value is often created by a very small amount of 
 human industry, assisted by natural agents ; therefore, it is not 
 liuman industry alone which creates this value. But it is never- 
 theless true, that the exchangeable value of the commodity, is 
 determined by the human industry required to be exerted. 
 
 When, therefore, we speak of interest paid for the use o? 
 capital, and regard capital as only accumulated labor, we con- 
 sider merely the exchangeable value of that capital, which is all 
 oiat regulates its rate of interest. 
 
 Por, however great the intrinsic value of the capital may be» 
 
180 OF DISTRIBUTION. 
 
 In considering the wages paid for labor, we saw 
 that different kinds of labor were paid different wages. 
 
 It is the same with the interest paid for the use of 
 capital. If it be a kind of capital which is obtained 
 by mere manual labor, other things remaining the 
 same, the lowest rate of interest will be paid for it. 
 But fluctuations of supply and demand will change the 
 rate of interest, upon the same principles that the same 
 causes will change the wages of labor. 
 
 But if the capital be the result of talent, skill, and 
 experience, it will obtain a higher rate of interest. 
 Therefoxe, the general principle which regulates the 
 interest paid for the loan of capital, is the cost of its 
 production. 
 
 But there are causes which greatly vary the rate 
 of interest from this standard. 
 
 while it costs nothing, that is, while no labor is required to pro- 
 duce it, it is evident that nothing will be given for the use of 
 such capital, any more than for the use of air and sunlight. 
 
 Therefore, we may with perfect propriety consider capital or 
 wealth as accumiilated labor, for that portion of wealth which 
 is not derived from human industry, has no exchangeable value 
 whatever. 
 
 But, as this exchangeable value varies from the cost of pro- 
 duction, by the fluctuations of supply and demand, so the same 
 fluctuations similarly affect the rate of interest paid for the use 
 of the capital, as will be seen. 
 
 Do the principles which regulate the wages of different kinds of labor, dif 
 far from those which regulate the interest of different kinds of capital 1 
 What.th6n, is the general principle which regulates the interest of capita? 
 
OF DISTEIBX^TION. 181 
 
 /■ 
 
 1^\\'Q first are the fluctuations of supply and demand, 
 which are very evident, and require no comment. 
 
 The second is risk. When a man loans capital, 
 there is always a risk of his not being repaid when he 
 himself needs his capital, and also a risk of his never 
 being repaid. And the greater this risk, (whether it 
 depend upon the character of the borrower, the inse- 
 curity afforded to property by government, or the dif- 
 ferent modes of employing the capital,) — the greater 
 will be the rate of interest. 
 
 Thirdly, the rate of interest is varied by the different 
 degrees of the productiveness of capital. The different 
 degrees of productiveness vary the demand ; and the 
 ratio between supply and demand, produces the same 
 effect upon the rate of interest as upon every thing 
 else. 
 
 Kent, or the price paid for the use of land, is regu- 
 lated by the same principles that regulate the interest 
 upon other kinds of capital. 
 
 He who hires land for the purpose of employing it 
 in production, pays according to its productiveness ; 
 that is, according to the profits which may be derived 
 from it. 
 
 The price paid for the use of money, is called in- 
 terest, and is usually estimated in money, because those 
 who wish to borrow capital, usually borrow money in 
 the first place, wherewith they obtain the capital. 
 
 What causes often vary the rate of interest from this standard 1 
 
 What is rent, and how regulated ? 
 
 What is interest ? 
 
 How is capital usually borrowed ? 
 
 16 
 
182 OF DISTRIBUTION. 
 
 But it is in reality capital that is wanted, and no? 
 money. When, therefore, the interest of money is 
 spoken of, it must be borne in mind that it is the same 
 thing as the interest of capital, or the price paid for 
 the loan of capital. 
 
 But a man is allowed to loan his capital, and to re- 
 ceive for its use what others are willing to give. But 
 when he converts his capital into money, and then 
 loans it, why should he be restricted by law, as he is 
 in all civilized countries, in the price which he may 
 receive for the use of it ? Why the restriction in one 
 case more than in the other 1 
 
 If the legislature should enact that a man shall not, 
 under severe penalties, receive more than a certain 
 amount of compensation for the loan of land, farming 
 utensils, &c., all would say that the law unjustly inter, 
 feres with the right of property. But, if the individual 
 convert his property into money, and he be restrained 
 in the loan of it, is not the case the same ? 
 
 But the real price of capital or money, or its real 
 worth and value when employed in production, cannot 
 be fixed by law ; — why then should the rate of inter- 
 est remain the same, when capital is so much more 
 valuable at one time than at another 1 
 
 Political economists have generally agreed that laws 
 
 Does the interest of monejf differ from tlie interest or price paid for the use 
 of capital 1 
 
 What difference have the laws made between the price paid for the use of 
 capital and that paid for the use of money 1 
 
 Can the feal price or real profit of capital or money be fixed by law ? 
 
 What have political economists generally thought of laws regulating the 
 rate of interest 7 
 
OP DISTRIBUTION. 183 
 
 regulating the rate of interest are an unjust interfer- 
 ence with the right of property, and injurious to the 
 prosperity of a country. 
 
 It is generally thought, on the other hand, that laws 
 regulating the rate of interest prevent great fluctua- 
 lions in the price of money, and that if there were no 
 such laws, capitalists would often take advantage of thf3 
 necessities of the borrowers, to extort from them an 
 unjust and oppressive price for the use of money. 
 
 But fluctuations in the price of money are probably 
 more likely to arise when the rate of interest is estab- 
 lished by law. Suppose the established rate of interest 
 be seven per cent., while capital invested in most kinds 
 of business is worth tvv^elve per cent. 
 
 In such case, those who have money will not loan it 
 for seven per cent., but will either loan it at a higher 
 rate and find some method of evading the law, as is 
 often the case ; or they themselves will invest it in busi- 
 ness, and thus receive the worth of it, viz., twelve per 
 cent. 
 
 Now, the result is the same to the community, whe- 
 ther the capitalist receives twelve per cent, for his 
 money when he loans it to another, who will invest it 
 in business ; or whether he himself thus invests it, and 
 thus obtains its worth. 
 
 But the effect of the law is to compel the capitalist 
 to invest his own capital in business, for which he may 
 
 What prevalent opinions are opposed to this 1 
 
 How are these objections answered; and what is the effect of the law 
 regulating the rate of intereet, upon the capitalist ? 
 
184 OF DISTRIBUTION. 
 
 have no inclination and little skill, or to receive for it 
 less than its real worth, and to surrender its profits, 
 without compensation, to another. 
 
 Now, when the profits upon capital rise above the 
 legal interest, there will arise a great demand for capi^ 
 tal, but no one will loan it at the legal rate, because it 
 is worth much more. There is then a scarcity of 
 capital, — no supply, and the demand increasing. 
 
 This increases the, price which men are willing to 
 give for the loan of capital, and those who are the 
 least conscientious will break through the "< cobwebs 
 of the law," and avoid the penally, by loaning at the 
 legal rate, and receiving a present, or bonus, for the 
 favor, in advance. This is offering a premium to 
 those who are sufficiently daring to break the law, and 
 artful enough to screen themselves from its penalty. 
 
 The law, then, establishing the rate of interest, has 
 often a manifest tendency to increase those fluctua- 
 tions to which the rate of interest is liable, and to 
 bring the law into disrepute, by offering a premium to 
 those who will break it. And it is well known to 
 business men, that when the profits upon capital rise 
 above the legal rate of interest, the law becomes a dead 
 letter. 
 
 But it is also said, that if there be no legal interest 
 established, capitalists will often take advantage of 
 the necessities of the boiTowers. The same objections 
 
 What will be the result when the profits of capital rise above the legal 
 rate of interest 1 
 
 What, then, is the effect of the law upon fluctuations in tlie rate of inter- 
 est 1 
 
OF BISTIKBUTIOX. 185 
 
 may be urged against the loan of other kinds of capi- 
 tal as against the loan of money. If money, or other 
 capital, were in the hands of a few wealthy capitalists 
 only, they might monopolize the loan of it, raise the 
 interest, and thus seriously oppress the borrowers. 
 
 So far as there is danger from this source, it is a 
 weighty argument in favor of establishing the rate of 
 interest. Perhaps this evil might occasionally arise in 
 individual cases, in the absence of such a lav/. 
 
 But in this country capital is so universally dissemi- 
 nated among all classes, that this evil is little to be 
 feared. Competition among those who have money 
 or other capital to loan, would probably keep the rate 
 of interest nearly upon a par with the profits to be made 
 by the employment of capital. 
 
 Whether, then, the rate of interest should be estab- 
 lished by law, or left to be regulated by the supply, the 
 demand, and the profits of money, that is, of capital, 
 is a question that would be attended with no diversity 
 of opinion, were it not for the apprehended danger that 
 a few capitalists would monopolize the loaning of 
 money, and thus acquire the power of oppressing the 
 borrowers. 
 
 This danger would doubtless be the greatest in a 
 country where property is the most unequally distribu- 
 ted. But it is evidently proper for the law to define 
 what shall be the rate of interest, when nothing is said 
 on the subject in the contract. 
 
 What is the principal objection to the absence of a law regulating the rate 
 f interest, and how considered 1 
 What, then, alone occasions tlie diversity of opinion upon this subject ? 
 
 16* 
 
186 OF DISTSIBUflOr^. 
 
 Bat the rate of interest paid for the use of money, 
 is by no means a certain indication of either the pros- 
 perity or the adversity of a country. For, if the rate 
 of interest be raised by an increase of risk, as this rise 
 of interest benefits no one, it is an indication of ad- 
 versity. But, on the other hand, if the rise of interest 
 be occasioned by increased productiveness, as where 
 the employment of capital affords greater profits than 
 usual, then it is an indication of national prosperity. 
 
 If the rate of interest fall, on account of the diminu- 
 tion of risk, it is then an evidence of increasing pros- 
 perity. But, if the fall be occasioned by a diminution 
 of the profits formerly gained by the use of capital, it 
 is then an evidence of national adversity. 
 
 Thus, in England, a large amount of capital for 
 which an interest is paid, is employed in manufactures ; 
 but, if other nations should henceforth make their own 
 manufactures, the capital thus employed in England 
 would be thrown out of employ, and the rate of inter- 
 est paid for capital would fall. The fall, in this case, 
 would be an evidence of national adversity. 
 
 Is the rate of interest any sure indication of either national adversity or 
 prosperity ? 
 Foi- what several reasons is it not ? 
 
PART THIRB. 
 
 EXCHANGE OF WEALTH 
 
 Exchange is a transaction in which two individu- 
 al ? mutually and voluntarily transfer to each other the 
 ri^ht of property, to a given amount, either in capital 
 or labor. ^ 
 
 Exchange is of three kinds, viz : — 
 
 1st. Barter in general, or exchange in kind. 
 2d. Exchange by means of a metallic currency. 
 3d. Exchange by means of a paper currency. 
 
 » Wayland, 
 
 What is exchange 1 
 
 t>f how many kinds is exchange, and what are they 1 
 
188 OF EXCHANGE. 
 
 SECTION^ I 
 
 OF BARTER IN GENERAL, OR EXCHANGE IN 
 KIND. 
 
 I. The necessity of Exchanges. 
 
 As men are constituted with different aptitudes for 
 different pursuits, and with different dispositions to- 
 wards those pursuits, it will be an advantage to all if 
 each one will devote himself to that occupation for 
 which he is the best adapted, 
 
 Thusy one man has a talent for mechanical pursuits, 
 one for agriculture, another for manufactures, and an- 
 other for navigation. And if each be allowed to pur- 
 sue the occupation for which he is best adapted, a 
 greater amount of productiveness will be the result ; 
 and the same with nations, as we have before seen. 
 
 There are products v/hich are natural to one coun- 
 try and not to another ; and no country possesses 
 advantages for producing every thing. But each indi- 
 vidual and each nation wishes to obtain the products 
 of other individuals and of other nations, and this can 
 be effected only by an exchange of products. 
 
 We have seen that productiveness is greatly in- 
 creased by division of labor. The same principle 
 Applies to exchange. Were each individual obliged 
 
 What kind of labor is the most advantageous for each individual, and for 
 the whole community 1 
 What occasions the necessity for exchanges 1 
 What is gained by division of labor in exchanges 1 
 
OF EXCHANGE. 189 
 
 to make all his own exchanges, there would be a great 
 loss of time and labor, and it would be better for the 
 whole if a part of a society would devote themselves 
 exclusively to the business of making them. 
 
 Hence, we see the need of merchants, who effect ex- 
 changes between inhabitants of the same country, or 
 between different nations. 
 
 If the citizen who now purchases his grooeries and 
 drygoods of the merchant, were obliged to go to the 
 original producers of these articles, and there exchange 
 some products of his own for them, the labor of ex- 
 change would be immense, and the cost of the articles 
 inestimable. 
 
 The wholesale merchant and the importer conduct 
 the exchanges between different nations, and the retail 
 merchant purchases of the former, or of the manufac- 
 turer, and sells to individuals in smaller quantities. 
 By this saving of time and labor, the exchanges in- 
 crease the cheapness of articles, and thus add to the 
 productiveness of industry. 
 
 Although exchange simply, v/hen uncombined with 
 the labor of transportation, adds nothing to the value 
 of a commodity, yet it adds greatly to the convenience 
 of both buyer and seller. 
 
 Thus, suppose two individuals, one of whom has two 
 knives, and the other, two pencils. 
 
 As one of each is useless, an exchange will be better 
 for both. And although no value has been added to 
 the articles by the exchange, yet each individual is 
 
 ■ . ____ : „ 
 
 Does the simple exchange of a commodity add to its value 1 
 
190 OF EXCHANGE^ 
 
 richer than he was before, for he is now enabled to 
 gratify a greater number of desires. 
 
 It is thus with nations. A nation exchanges com- 
 modities which it does not need, for those of which it 
 has need. 
 
 Thus, Cuba produces more cotton and sugar than 
 she requires for her own consumption, and New- York 
 raises more wheat than she needs, and a mutual ex- 
 change of products will be advantageous to both coun- 
 tries. 
 
 This illustration is sufficient to show the fallacy of 
 the notion formerly entertained, that by exchange only 
 one party is benefited, and that what one gains another 
 loses. 
 
 As a simple exchange, therefore, confers no new 
 value upon the product, the exchange should be effecte^l 
 with as little loss of time as possible, in order that the 
 article may be mbre speedily applied to the use for 
 which it was designed. 
 
 Also, a delay in making the exchange adds to the 
 price which must be paid for the article. This addi- 
 tion is the interest on the capital advanced. 
 
 Thus, if a merchant purchase to-day a thousand 
 dollars worth of goods, and sell them to-morrow, he 
 charges the purchaser for his labor and skill, and adds 
 to the sum the interest of only one day upon his 
 capital. 
 
 But, if he retain the goods a whole year, and then 
 
 How does it add to the convenience of individuals and nations ? 
 
 How, then, should exchanges be effected 1 
 
 What is the effect of a delay in making exchanges 1 
 
OP EXCHANGE 191 
 
 dispose of tUsn, he charges for his labor and skill the 
 same as before, and adds to the sum the interest on 
 his capital for a year. 
 
 Besides, if the merchant dispose of his goods within 
 a week after the purchase, he may reinvest the same 
 capital, and exchange it fifty times in the course of a 
 year, and thus receive a profit on his skill and labor 
 fifty times a year. 
 
 Thus, rapid exchanges are advantageous both to the 
 buyer and the seller, and, consequently, to the whole 
 community.^ 
 
 As individuals exchange for the pui-pose of improving 
 
 '^ Thus, if French silks were to be imported to New- York, the 
 sooner they were disposed of, the better for all parties. But, 
 should they be carried first to New-Orleans, thence up the Mis. 
 sissippi, and across the country, to New- York, the producer or 
 the exporter of the silks must charge the New- York merchant 
 for all this extra labor of exchange and transportation, and~the 
 New- York merchant must charge the consumers a higher pricej 
 Which would be so much loss to the latter, and the demand for 
 the article would also be diminished ; less silks would be dis. 
 posed of, which would injure the business of the producer, the 
 exporter, and the merchant. 
 
 The sooner the producer gets his returns for his silks, the 
 sooner he can recommence a new and equally lucrative opera- 
 tion. 
 
 All unnecessary exchanges and transportation are no other 
 than the expenditure of unproductive labor, which must be paid 
 for, but which adds no new value to the product. 
 
 Why, then, arc rapid exchanges advantageous to ail 1 
 For what do indiriduals exciiange, and how only can they effect their 
 object? 
 
192 OF EXCHANGE. 
 
 their condition, if they really exchange articles of less 
 utility for articles of greater utility to themselves, the 
 more numerous their exchanges, the more generally 
 will their condition be improved. And, whatever pro- 
 motes such exchanges, promotes the happiness and 
 prosperity of a people. And to this end, there must be, 
 
 1st. A desire for exchange, which will depend prin- 
 cipally upon the intelligence of the people. 
 
 2d. An ability to exchange, which will depend upon 
 the productiveness of their labor and capital ; and, 
 
 3d. The security of property, which will depend 
 apon their individual and social morality. 
 
 That is, exchanges will be frequent in proportion 
 to the intelligence, wealth, and moral character of a 
 people. 
 
 II. Barter in general, or Exchange in kind. 
 
 It has been seen, that the general rate at which pro- 
 ducts are exchanged, is not quantity for quantity, but 
 value for value ; because a given amount of labor will 
 procure a much larger amount of some products than 
 of others. 
 
 The rate of exchange, therefore, is regulated by 
 the amount of labor which is required to produce the 
 article;^ 
 
 ^ Although exchangeable value is regulated by the cost of 
 prodaction, exchangeable value is not the cost of production, as 
 
 Upon wbat do the frequency of exchanges depend 1 
 
 What is the general rate at which products are exchanged 1 
 
 By what is the rate of exchange regulated 1 How illustrated ? j 
 
OF EXCHANGE. 193 
 
 If an ounce of gold may be procured by one day's 
 !«.bor, and a hundred weight of iron may be obtained 
 by the same amount of labor, the gold is said to be 
 " of the same value," or, in common language, " worth 
 a« much" as the iron. 
 
 has been frequently asserted. The cost of an article means 
 simply the amount of labor expended, or the expense incurred 
 in its production : but the exchangeable value of the article, or 
 the price at which it is ordinarily disposed of, is something more 
 than the cost of its production. 
 
 Cost and exchangeable value are different things. If they 
 were the same things, commodities would be disposed of merely 
 for what they cost ; that is, in manufactures, for instance, the 
 money received by the sale of an article would only be equal to 
 that expended in its production, and thus the manufacturer 
 would gain nothing. 
 
 But this is not so. In all profitable business, the cost of pro- 
 duction must be somewhat less than the exchangeable value of 
 the product. 
 
 When a merchant imports a cargo of teas from the East 
 Indies, he must first estimate what the cargo has cost him, and 
 also the interest on the capital employed, before he can deter- 
 mine upon the pi-ice ; that i«!, upon the exchangeable value at 
 which he ought to dispose of it. 
 
 For this purpose, he must sum up the wages which he pays 
 for labor — the amount which he exchanges for tea — the interest 
 on the sum thus advanced — risk of the ship and cargo, or the 
 premium, paid for their insurance — the interest on the capital 
 advanced in fitting out the ship; and, lastly, the wear and tear 
 ©f the ship, &e., or the repairs required during the voyage. 
 
 All of this is equivalent to the direct cost of production, added 
 to the interest of the capital advanced ; and this, which is the 
 whole cost or expense incurred, must be added to the projU 
 17 
 
194 0F EXCHANGE. 
 
 Although, if by ehanee the ounce of gold should he 
 found in its native state, it would be worth just a® 
 much, although do labor were req^uired to produee it ; 
 for the amount found,^ when compared with the whole 
 amount which required labor for its production, would 
 be so small, as not to affect the general principle. 
 
 But, as the chances of obtaining gold without labor 
 increased, the value of gold would proportionably 
 diminish. 
 
 In all exchanges,, therefore, we may regard it as the 
 labor which is exchanged, and not the intrinsic values 
 of the commodities. For the intrinsic value of a 
 hundredweight of iron is inestimably greater than the 
 
 which the importer makes by his sales, aiid w© then have the. 
 exchangeable value of the cargo. 
 
 Capital, united with industry,, together with the interest upoa 
 th« carpital used, which here goes to increase the exchangeable, 
 value of the product, may be said to be the wages paid for th& 
 use of capital. Thus, capital and industry both labor in pro- 
 duction, and the same rules of supply and demand, regulate the 
 wages oflioth.. 
 
 In the case supposed above, if the individual engaged in the 
 business of importing tea, had hired the capital, which he was 
 to refund, together with the interest, this whole amount, interest 
 and all, might be reckoned as so much labor exerted towards- 
 the cost of production, for labor might pay this interest. 
 
 But the exchangeable value of the tea, must still t(e in ad- 
 vance of the cost of production, if the business were profitable^ 
 and must be estimated at the cost of production, added to the 
 profit made in the business,.. 
 
 What then, may we suppose to he exchanged in all cases 1: 
 
OF EXCHANGE. 195 
 
 value of an ounce of gold. Mankind could dispense 
 with the latter far more conveniently than with the 
 former. 
 
 In the earliest stages of society, all exchanges were 
 made in kind -that is, by barter. If one savage 
 wished to obtain a bow and arrow from another, he 
 was obliged to give in exchange some product of his 
 own. 
 
 But, as exchanges increased in number and amount, 
 many disadvantages would arise from this mode of 
 exchange. 
 
 We have seen how division of labor increases pro- 
 ductiveness, the effect of which is to multiply products 
 in the hands of the producer. Thus, hats accumulate 
 in the hands of the hatter, bread in those of the baker, 
 and shoes in those of the shoemaker ; and the case is 
 the same throughout all the trades and professions. 
 
 But, although each individual produces but one kind 
 of commodity, he wishes to obtain a portion of the 
 products of every other producer. The hatter has 
 hats which he wishes to exchange for bread and shoes ; 
 but, perhaps both the shoemaker and the baker are at 
 present supplied with hats, and wish for some other 
 article — perhaps fuel. 
 
 The hatter must, then, find some one who v/ants 
 hats, and who has fuel to dispose of; and he must thus 
 obtain the fuel ; and then, by a second exchange, he 
 will be able to obtain the required articles. 
 
 How were exchanges made in the early stages of sociMy ? 
 What inconveniences would arise from this mode of exchange? 
 
196 
 
 OF EXCHANGE. 
 
 But here is a loss of time, which must be added to 
 the cost of the hnts, or the hatter will be the loser. 
 Hats will then become dearer, and this will be a loss 
 to the consumer or purchaser ; and as they become 
 dearer, the demand for them will lessen, which will be 
 a loss to the producer. 
 
 But there is another difficulty which would attend 
 exchange in kind. If the hatter wish for a penknife, 
 or any article of less value than a hat, how is he to 
 obtain it ? He cannot divide a hat, but must find some 
 one who will give in exchange for it such articles as 
 the owner of the knife may desire, and which are, 
 moreover, capable of being divided without injury. 
 
 But material products are not the only things to be 
 exchanged. One great article to be exchanged, is 
 labor. If exchanges were made wholly in kind, it 
 would frequently happen that the laborer would not be 
 able to labor for those who needed his services, be- 
 cause they could not give him in exchange such arti- 
 cles as he wished. The lawyer would be obliged to 
 receive his fees in such commodities as his client pro- 
 duced ; and the same with physicians, and other pro- 
 fessional men. 
 
 . The effect of these inconveniences in makino- ex- 
 changes would be, that fewer exchanges would be made, 
 
 What would be the eSbct of a loss of time required in eschanging, upoa 
 the price of the article ? 
 How would both the consumer and producer be affected ? 
 What difficulty besides the loss of time would attend exchange in kind 1 
 Are material products the only things to be exchanged ? 
 Whut difficulties, then, would the laborer encounter 1 
 
OF EXCHANGE. 197 
 
 and every person would be his own farmer, mechanic, 
 and manufacturer, and there would be no division of 
 labor, except in its most imperfect form. 
 
 Now, these inconveniences might be remedied if 
 there were some appropriate article that was univer- 
 sally wanted, and which every person would be willing 
 to receive in exchange for such products as he wished 
 to dispose of. And then, by exchanging for this arti- 
 cle, the producer might obtain, by another exchange, 
 whatever he needed. 
 
 The necessity for such an article, has led to the 
 adoption of some medium of exchange even among the 
 rudest nations. In pastoral nations, cattle were fre- 
 quently used as a circulating medium. Property was 
 estimated as being worth so many head of cattle. Thus, 
 Homer mentions that the armor of Diomede cost nine 
 oxen. 
 
 Some of the baser metals were afterwards used. The 
 Lacedemonians, under Lycurgus, established iron as 
 the circulating medium. 
 
 Shells and beads were used as money by the North 
 American savages. 
 
 The Romans used copper or brass, in the early ages 
 of their history. 
 
 But as these materials became more abundant, and 
 consequently depreciated in value, gold and silver 
 
 What would be the general effect of these inconveniences in making ex- 
 cli anges 1 
 
 How might these inconveniences be remedied 1 
 
 What articles have been used as a medium of exchange at different pe- 
 riods? 
 
 17* 
 
198 OF EXCHANGE. 
 
 were substituted in their place. At first, gold and sil- 
 ver were weighed at every exchange ; but as this re- 
 quired much time and care, they were next fashioned 
 into coin, and the value or weight of each piece stamped 
 on the face of it. 
 
 Gold and silver are now used for the purposes of 
 money throughout the civilized world. 
 
 Copper is used only in the payment of sums less in 
 value than the lowest denomination of silver coin. 
 
 SECTION II. 
 
 OF EXCHANGE BY MEANS OF A METALLIC CUR- 
 RENCY. 
 
 I. Of the qualities necessary to that which constitutes 
 the circulating medium. 
 
 The design and use of money, or of whatever is used 
 as a circulating medium, is to facilitate exchanges. 
 Whatever instrument best accomplishes this purpose, 
 should be selected ; and the preference is now univer- 
 sally given to gold and silver. Those qualities in gold 
 and silver which have given them this preference, will 
 be seen by inquiring into the qualities necessary to 
 constitute a circulating medium. 
 
 1st. The article used as a circulating medium must 
 be universally desired as such ; that is, it must be an 
 
 How were gold and silver first used 1 
 
 What is the design and use of money 1 
 
 What is the first requisite for the ai'ticle used es a circulating medium 1 
 
OP EXCHANGE. 199 
 
 article which every one is willing to receive in ex- 
 change for such products as he wishes to dispose of. 
 
 This article or instrument for facilitating exchanges, 
 is called money. And if this article be not difficult of 
 transportation, it is evident that every one will be 
 willing to receive it in exchange for his own products, 
 if he can obtain as much for his money as he could 
 have obtained for the products which he disposed offer 
 the money. 
 
 Thus, a farmer exchanges a bushel of wheat for a 
 dollar, because a merchant will give as much tea or 
 sugar for a dollar as he will give for a bushel of wheat. 
 
 And now the question naturally arises — what is it 
 that renders money so valuable to community ? We 
 answer—the same that renders a plough, or any other 
 farming utensil, valuable to a farmer. The earth must 
 he cultivated, and a plough is an instrument for culti- 
 vating the earth, and it is desired and is valuable for 
 that purpose : — it greatly increases the productiveness 
 of labor. 
 
 But it requires labor to make a plough, and if the 
 farmer exchange his products for it, he must give 
 those articles in exchange which have cost him as 
 much labor and skill as the plough has cost the me- 
 chanic. 
 
 We have said the earth must he cultivated. So also 
 exchanges must be effected. Now, money is an in- 
 strument for facilitating exchanges, and it is desired 
 
 Wliy are persons willing to exchange tiieir ptsductg for money 1 
 What jg it that renders money so valuable to community ? 
 
200 OF EXCHANGE 
 
 and is valuable for that purpose. In its department 
 of labor— -that is, in exchanging — it greatly increases 
 the productiveness of labor. 
 
 But the instrument, viz., money, cannot be obtained 
 without labor, and its exchangeable value, like the ex- 
 changeable value of other articles, is regulated by the 
 cost of production, varying, as other products vary, by 
 fluctuations in supply and demand. 
 
 If in New-York a bushel of wheat is exchanged for 
 a dollar, it is because the labor expended in mining, in 
 transporting the silver from the mine, and in coining, 
 is equal to the labor expended in raising the wheat, and 
 in transporting it to the place of exchange. 
 
 Thus, the exchange of silver and wheat is regulated 
 by the same principles which regulate any other ex- 
 changes. And the exchangeable value of the precious 
 metals, like other commodities, is likewise influenced 
 by the fluctuations of supply and demand. If more 
 gold and silver are obtained by the same amount of 
 labor, their exchangeable value becomes less, that isy 
 more money will be given in exchange for other pro- 
 ducts. 
 
 This was the case after the discovery of the mines 
 of South America, by which the amount of the pre- 
 cious metals was greatly increased. And if, by any 
 reason, money becomes scarce in a country, so that 
 there is not a sufficient quantity to effect the exchanges, 
 
 What regulates the exchangeable value of money 1 
 How is the exchangeable value of th» precious metals varied by fiactua- 
 tions in supplf aad demand 1 
 
OF EXCHANGE. 201 
 
 tfien there will be an increased demand for money, and 
 its exchangeable value will rise :— the same as it* there 
 were not a sufficient supply of ploughs in the country, 
 — the demand for ploughs would increase, — their value 
 would rise, and a greater amount of other products 
 would be given in exchange for them. 
 
 2d. The instrument used as a circulating medium 
 should not be liable to sudden fluctuations of value, 
 occasioned by variations ir^ the cost of production. 
 
 Suppose that an individual has exchanged to-day a 
 quantity of wheat, which cost him one hundred days' 
 labor, for a quantity of silver which cost the same 
 amount of labor. The individual receiving the silver 
 expects that he can exchange it for other products 
 vv^hich cost one hundred days' labor. 
 
 But, if in a few days silver could be produced by 
 one half the amount of labor that it formerly cost, the 
 value of silver would fall, and ho who had exchanged 
 wheat for silver, would find that his silver would obtain 
 for him, in exchange, products which had cost only 
 fifty days' labor. 
 
 Hence, vegetable products, the amount of which is 
 liable to vary under the same amount of labor, could 
 never be employed as money. But gold and silver 
 are not liable to these sudden fluctuations, and on 
 this account they are better adapted for a circulating 
 medium than any other articles. 
 
 3d. If the article used should contain a large amount 
 
 What is the second requisite for a good circulating medium ? 
 
 Why might not vegetable products be employed as a circulating medium I 
 
^02 OF EXCHANGE. 
 
 of value within a small bulk, it would be a great ad- 
 vantage, by thus saving the labor of transportation. 
 The iron money of Lycurgus would be a very inconve- 
 nient circulating medium in the present day. 
 
 4th. The substance should be capable of division 
 without loss of value, in order that persons may pur- 
 chase in as small quantities as they choose. 
 
 5th, The substance should be of such a nature that 
 it can be easily verified, and distinguished from coun- 
 terfeit imitations. Platina is more costly than silver, 
 but in appearance it, very much resembles some of the 
 baser metals. This is an objection to its use as a cir- 
 culating medium. But gold and silver are easily veri- 
 fied, and counterfeit imitations are easily detected. 
 We meet with no counterfeit gold coins, and with but 
 little counterfeit silver money. 
 
 And lastly, it may be remarked, that gold and silver 
 are used as the instruments for facilitating exchanges, 
 because they are the best and most convenient instru- 
 ments for that purpose, and not because government 
 has arbitrarily made them the circulating medium. As, 
 under every government, the people should have the 
 liberty of making what exchanges they choose, the gov- 
 ernment should not interfere with the instrument which 
 the people have selected for this purpose. 
 
 Any laws directing the people m what manner they 
 
 What is the third requisite for a convenient circulating medium 1 The 
 fourth ■? The fifth ? 
 
 Are gold and silver used as the circulating medium because government 
 has arbitrarily made them such 1 
 
 In what manner should government not interfere with the eirculating me- 
 dium 1 
 
OF EXCHANGEr 208 
 
 shall use the instrument, money, is as great an interfe- 
 rence with the liberty of exchanging, as if government 
 should direct the farmer to use his ploughs in a particu-. 
 lar manner: this would be an interference «with his 
 I'ight to cultivate the soil as he may deem expedient. 
 
 If one citizen wishes to purchase any articles pfj 
 another citizen, he should have the liberty o^ exchang- 
 es he pleases ; or if he wishes to exchange his specie 
 for foreign products, government should not prevent 
 him. 
 
 And if it be admitted (as it certainly will be under a 
 free government) that citizens have the right of keep- 
 ing or exchanging their property as they please, it fol- 
 lows that goveniment has no right to prevent the im- 
 portation or exportation of specie. 
 
 But there is one kind of agency which government 
 may properly exert over the circulating medium. Gold 
 and silver being used as a circulating medium hy com- 
 mon consent, the agency of government should be ex- 
 erted to render the circulating medium such as the 
 people wish it, and so to prepare the substance em- 
 ployed that it may be used with the greatest common 
 advantage. 
 
 To accomplish this object, the substance which has 
 been thus universally chosen for the purposes of ex- 
 change, should be made a legal lender for the payment 
 of all debts. That is, if a debtor offer his creditor 
 legal money in payment of a debt, the latter is bound 
 to receive the same, or free the former from his obliga- 
 
 What agency^ then, may government properly exert over it t 
 
204 OF EXCHANGE. 
 
 tioj^ unless some other article had been preyiously 
 agreed upon between the parties. 
 
 Government should also regulate the coining of 
 money, Ijecause it is a work that requires great fidelity, 
 and could not be safely intrusted to individuals. 
 
 The business of coining comprises whatever relates 
 to the uniform purity of the metal, and to such size and 
 form of the material as shall best adapt it to the pur- 
 poses of exchange. 
 
 But the power of government should never be exerted 
 so as to interfere with the right of individuals to ex- 
 change their property with any one and for any thingt 
 as they may think for their advantage. 
 
 IT. Of the amount of money necessary to effect the ex- 
 changes of a community. 
 
 Whatever be the instrument used in making ex- 
 changes, its value, at any one time of exchange, must 
 be equal to the value of all the commodities exchanged 
 for it. 
 
 Suppose the precious metals were the only mstru' 
 ments used for tjiis purpose. But yet the value of the 
 precious metals in community is not equal to the value 
 of all the other commodities. 
 
 The value of the precious metals would be equal to 
 the value of all the other commodities, if all exchanges 
 were made in money, and made at the same instant. 
 
 But only a very small portion of the commodities 
 
 Why is not the value of the precious metals in community equal to the 
 Ifslue of all the other commodities 1 
 
OF EXCHANGE. 205 
 
 once exchanged during a year, are exchanged at the 
 same time. Consequently, a small amount of money, 
 if used many times, may exchange a large amount of 
 property. 
 
 Thus, if A and B have each one thousand dollars 
 worth of property to exchange with each other, ten dol- 
 lars in the hands of either party may be sufficient to 
 effect the exchange of two thousand dollars worth of 
 property. 
 
 Thus, A, having the money, may purchase of B fen 
 dollars worth of his property, and B may then use the 
 same money wherewith to purchase of A ; and thus, 
 by one hundred mutual exchanges, the whole work 
 would be accomplished. 
 
 It is the same with the exchanges of community. A 
 single dollar may perhaps in one year be the instru. 
 ment of exchanging values of a thousand times its 
 amount. 
 
 And, as many exchanges are made in Jdnd, this also 
 diminishes the amount of money required. Where 
 wheat is exchanged for cotton, if the values exchanged 
 are equal, no money is required to accomplish the 
 work. 
 
 Between nations also most exchanges are made in 
 kind. A nation that possesses no mines of the pre- 
 cious metals, can obtain the products of another nation 
 
 In wh3t manner is a small amount of money made to exchange a large 
 amount of property 1 
 
 What kind of exchange furthermore diminishes the amounf of money re- 
 quired? 
 
 How are exchjmges made between nations 1 
 
 18 
 
206 OF EXCHANGE. 
 
 only by its own labor, which must be employed in the 
 creation of products which may be given in exchange. 
 
 If, for instance, New-York purchase of Liverpool, 
 New-York must eventually pay the debt in American 
 products. If it pay Liverpool in gold and silver, these 
 articles must previously have been obtained by sending 
 American products to some other nation. 
 
 Thus, one nation cannot exchange with another to 
 a greater amount than it has products to give in ex. 
 change ; and we see what it is that creates a demand 
 for foreign products. 
 
 The productiveness of one country opens a demand 
 for the products of another. For it is the same with 
 nations as with individuals : they cannot purchase un- 
 less they have something to give in exchange. 
 
 The prosperity or the adversity of one must, therefore, 
 go hand in hand with the prosperity or adversity of 
 another. Should the products of America fail, and 
 famine desolate the land, England would find no market 
 here for her manufactures ; nor, under such eircum. 
 stances, could England escape the evils that afflicted 
 us. 
 
 The value of the specie used in any country for the 
 purposes of exchange, is therefore necessarily small in 
 proportion to the whole value of capital. In Great 
 Britain, some writers, have estimated it at the 50th, 
 and others at the 127th part of the whole capital. 
 
 How is the prosperity of one nation allied with that of another ? 
 What estimates have been made of the relative value which specie bears 
 to other capital 1 
 
OF EXCHANGE. 207 
 
 But the amount of circulating medium required in 
 any community while its value remains the same, va- 
 ries vrith the amount of products to be exchanged. 
 While the amount of exchanges remains the same, the 
 same value in specie will always be required, and no 
 greater value can be used. If a greater amount of 
 specie be introduced, its value will fall, and if the 
 amount be diminished, its value will rise. 
 
 It is the same with money as with other instruments 
 in other kinds of labor. If more ploughs be intro- 
 duced than are necessary for agricultural purposes, 
 their value will fall ; and if the number of ploughs be 
 diminished, their value will rise. 
 
 Nothing is gained by introducing more ploughs than 
 are needed, as they must be sent from the country, or 
 they will remain on hand, unproductive capital. And, 
 if more money be introduced than is necessary for the 
 purposes of exchange, it must either be sent abroad 
 again, or remain on hand, unproductive capital. 
 
 If the amount of production in a country be greatly 
 increased in any one year, a greater amount of money 
 will be required to make the necessary exchanges ; or, 
 if the amount of money remain the same, its value will 
 rise. 
 
 But the very nature of the case will provide its own 
 
 Upon what depends the amount of circulating medium required in any 
 community 1 
 
 What will be the effect of an increase of productiveness upon the amount 
 required 1 
 
 How will the want of money be remedied in this case 1 
 
208 OF EXCHANGFJ* 
 
 remedy : specie will be imported to supply the defi- 
 ciency, or the domestic products will be exported, un. 
 less there has been a corresponding increase of produc- 
 tiveness throughout other nations. 
 
 Let us suppose that there has been during one 
 year a great increase of productiveness in the State 
 of New-York alone, throughout all the departments of 
 agricultural, manufacturing, and commercial industry. 
 Every thing would now be cheap. If wheat were 
 formerly sold for two dollars per bushel, it could now 
 be obtained for one. 
 
 Suppose that, in ordinary seasons, six bushels of 
 wheat, or their equal in value, six dollars, could obtain 
 a yard of broadcloth in Liverpool, and that it is imma- 
 terial to the New-York merchant which he sends in ex- 
 change. 
 
 But, during this very productive season, the New- 
 York merchant finds that six dollars and twelve bush- 
 els of wheat are of equal value in this country, but six 
 bushels of wheat will obtain as much broadcloth in 
 Liverpool as six dollars will purchase. 
 
 The New-York merchant will now find it greatly to 
 his interest to export wheat in exchange for broad- 
 cloth, and therefore the specie, which is now needed at 
 home, will not leave the country. 
 
 Thus, the want of money will soon be remedied by 
 the exportation of that superfluity of productions 
 which has occasioned the want. 
 
 This will be the case in every country, whenever 
 an increase of productiveness shall have created a 
 demand for money. 
 
OF EXCHANGE. 209 
 
 Thus, the interest of the merchant, and of every 
 other individual, is the same as the interest of the 
 nation. What is favorable to the former, is also 
 favorable to the latter. 
 
 Also, if, during such a season, other nations wish 
 to obtain our products, it will evidently be to their 
 interest to send specie in exchange, because specie is 
 scarce here, and products abundant ; — specie is in the 
 greatest demand, and we will give more for that than 
 for any other article. 
 
 It is also evident that an unproductive season will 
 render money comparatively more abundant than usual ; 
 — exchanges being less in amount, there will be less 
 demand for the instrument used in exchanging. Money 
 will therefore be cheap, and every thing else dear. 
 We shall have more money than can be used in ex- 
 changing, and shall be in greater need of other pro- 
 ducts. 
 
 But the nature of the case provides its own remedy. 
 The New-York merchant now finds that twelve dollars 
 and six bushels of wheat are of equal value to him in 
 New-York, but the twelve dollars will obtain two yards 
 of broadcloth in Liverpool, while the six bushels of 
 wheat will obtain only one. 
 
 It is now for his interest to export the specie, and 
 it is also for the interest of the whole country. Na- 
 tional and individual interests are the same. The 
 
 Wliat will be the effect of an unproductive season upon the amount of 
 money required t 
 How will tliis case provide Its own remedy 1 
 18* 
 
210 or EXCHANGE. 
 
 same prlnelples in political economy should regulate 
 the management of the affairs of both. 
 
 When, therefore, we speak of the abundance or 
 scarcity of money, we are to understand by the terms, 
 not the real amount of money in community, but the 
 relative proportion which it bears to the products 
 required to be exchanged. 
 
 There is an abundance of money when there is more 
 than a sufficiency for the purposes of exchange — the 
 same as a community has a superabundance of vehicles 
 for transportation when there is more than a sufficiency 
 for transporting all its merchandize ; but should its 
 merchandize be increased, the same number of vehicles, 
 which was before an abundance, might become a 
 scarcity, a 
 
 Abundance of moneys and scarcity of money, are, 
 
 ^ There is this difference, however, between the two cases : — 
 If the amount of merchandise ba increased, the same number 
 of vehicles cannot accomplish th§ whole work of transporta- 
 tion. 
 
 But if a million of dollars were required to effect the ex- 
 changes of a country, during one season, and the amount of 
 products to be exchanged should be doubled during the next, 
 the same amount of money might be made to do all the work 
 of exchanging. 
 
 But the value of money must rise to twice its original amount. 
 If one dollar were formerly exchanged for a bushel of wheat, 
 it must now be exchanged for two. The inconvenience that 
 
 What, then, are we to understand by the terms abundance and scarcity 
 of money? 
 
OF EXCHANGE. 2H 
 
 therefore, terms which convey an idea of the relation, 
 merely, that exists between the amount of money and 
 the amount of products to be exchanged. 
 
 A scarcity or an abundance of money may arise 
 from various causes. It has been seen that an in- 
 crease of productiveness renders money comparatively 
 scarce, and a diminution of productiveness renders it 
 comparatively abundant. The scarcity of money in 
 the first case is, therefore, an indication of prosperity, 
 and the abundance of money, in the second case, is an 
 indication of adversity. 
 
 An abundance of money may be occasioned by the 
 discovery of a new mine ; and if the cost of mining 
 be not too expensive, the abundance of inoney thus 
 occasioned will be an advantage to the nation. But 
 it can be of use only by being sent abroad in exchange 
 for other products, if there were previously sufficient 
 nioaey in community for the purposes of exchange. 
 But should gold and silver become as abundant as iron, 
 they would lose all value as money. 
 
 A scarcity of money may also be occasioned by an 
 unproductive consumption of value ; as, if it be em- 
 ployed in useless wars : and here it is a sign of adver- 
 
 arises from this relative scarcity of money, results from the dif- 
 ficulty of accommodating exchanges to this new state of things. 
 But should this state of things become permanent, there would 
 be no more difficulty in the way of exchange than formerly. 
 
 Prom what various causes may a scarcity or an abundance of monpy 
 arise? 
 
212 OF EXCHANGE, 
 
 sity. Therefore, the relative abundance or the relative 
 scarcity of money, is by no means an unfailing indica- 
 tion of the prosperity or adversity of a country. 
 
 Ansibundance may be the sign of prosperity in one 
 case, and of adversity in another. The only sure in- 
 dication of the economical prosperity of a country, is 
 the increase of its productiveness. 
 
 III. Of Banhs-of Deposit and Exchange^ 
 
 We have seen that exchanges are greatly facilitated 
 by means of the use of a metallic currency. But were 
 an individual to give gold and silver in exchange for 
 whatever he purchased, if he were engaged in exten- 
 sive business, he would be obliged to keep constantly 
 on hand a great amount of the precious metals, in 
 order to effect his exchanges. 
 
 This would be so much witlidrawn from his produc- 
 tive capital ; and if, by any means, he could diminish 
 the amount, and effect his exchanges with a less sura, 
 he might, to the whole extent of this contraction, en- 
 large his business and increase his sources of wealth. 
 
 If a manufacturer worth fifty thousand dollars were 
 obliged to employ ten thousand of it in effecting his 
 exchanges, it is evident that he could invest in his 
 business only forty thousand. But if, by any means, 
 
 Is either a scarcity or an abundance of money any certain indication of 
 either the prosperity or adversity of a country 1 
 
 What is the only sure indication of a country's prosperity ? 
 
 What would be the effect upon the amount of one's productive capital if 
 fee were obliged to effect all his exchanges with specie 1 
 
OF EXCHANGE. 213 
 
 he could effect all his exchanges with one thousand 
 dollars, he could then employ in his business forty-nine 
 thousand dollars of productive capital. 
 
 Another inconvenience that the manufacturer vi^ould 
 encounter, is the time and labor lost in transporting a 
 great amount of gold and silver. If this also could be 
 avoided, it would be a manifest advantage. And wert 
 all exchanges made through the medium of money, 
 each payment must be counted by both parties, which 
 would occasion a loss of time, and a wear and tear of 
 the coin. 
 
 Although this may be deemed a trifling inconveni- 
 ence and loss, yet it would be very perceptible in a 
 large mercantile house which exchanges from fifty to 
 one hundred thousand dollars worth in a day. 
 
 And were each individual to keep constantly on 
 hand the whole amount of gold and silver necessary to 
 effect his exchanges, he would be exposed to frequent 
 robbery, and would be obliged to guard his property 
 with increased vigilance. Gold and silver are bulky 
 and noisy, and consequently difficult of concealment. 
 Since the institution of banks, robberies have been far 
 less frequent than formerly. 
 
 The evils above mentioned have been, in a measure, 
 remedied by the institution of banks. We shall pro- 
 ceed to consider the nature and uses of banks, and the 
 benefits which they confer upon community, when 
 
 What are the several other mconveniences that would attend exchangea 
 by an exclusive metallic currency ? 
 How have these evils been, in a measure, remedied 1 
 
214 OF EXCHANGE, 
 
 properly conducted, and also the evils and abuses to 
 which they are liable. 
 
 The banks first instituted were those of deposit and 
 exchange. They are the most simple in their plan 
 and in the nature of their operations. Individuals, 
 instead of keeping their money on hand, deposit it with 
 an individual or with a company for safe keeping. 
 
 Thus, suppose that the merchants in a place, instead 
 of keeping their money themselves, lodged it with a 
 company in whom they had implicit confidence, and 
 that this company established a hanh where they might 
 receive the money, and conduct the business relative 
 to its deposit and transfer. The bank would now 
 open its books, and keep an account with each person 
 depositing money, crediting him with whatever he 
 deposited, and debiting him to whatever he withdrew. 
 
 Let us now see how the business of exchange might 
 be conducted in such a community. If A owed B 
 one thousand dollars, he need not withdraw that 
 amount of his money from the bank in order to make 
 the payment, but he may give B an order for one 
 thousand dollars, which B will present to the banker, 
 and the one thousand dollars will be transferred from 
 the account of A to that of B. If B owe C, he may 
 make his payment in the same manner ; C may do 
 the same to D ; and D perhaps may owe A, and pay 
 him in the same manner. 
 
 What was the first kind of bank instituted 7 
 
 Describe how exchanges would be eflected by the aid of a bank of depoMI 
 and exchange. 
 
0/ EXCHANGE. 215 
 
 And thus, at the end of the day,''exchanges to the 
 amount of four thousand dollars may have been effect- 
 ed without any transportation or counting of the 
 specie. It has been the labor of a few minutes, and 
 has all been accomplished by writing a few lines in a 
 bank leger. 
 
 There has been a saving of the transportation, count- 
 ing, and consequent wear and tear of the coin ; and, 
 also, the expenses of guarding and securing the money 
 have been materie^^ily lessened. 'i 
 
 » We shall hereafter see how the institution of another kind 
 of bank, lessens the amount of the precious metals required to 
 effect the exchanges of a community, and by that means renders 
 available a greater amount of productive capital. 
 
 But a less amount of money is required to effect exchanges 
 between individuals, than may be at first imagined, and banks 
 of deposit, in a measure, diminish that amount, although not to 
 the same degree as banks of circulation and issue. 
 
 An individual can purchase only by the disposal of some 
 values of his own production. All purchases, therefore, are 
 merely exch-anges of tlie products of one man for those of 
 another, and one man cannot purchase to a greater amount 
 than he has, or is supposed to have, products to give in ex- 
 change. 
 
 If, then, each individual exchanged directly for the ultimate 
 article desired, and there were no need of first obtaining any 
 thing intermediate, with which to procure it, there would be no 
 need of money in any exchange whatever ; for every man sells 
 as much as ho buys, and this would be morely barter. 
 
 But, when one man purchases of another fifty dollars' worth 
 of products, in one day, and parts with only twenty-five dollars' 
 worth of his own, he requires something more ti make the ex» 
 ''Aange : he must pay the difference in monej. 
 
216 OF EXCHANGE. 
 
 And if the exchanges of a community were trans- 
 acted by several banks, they would be conducted upon 
 the same principles, without the necessity of a transfer 
 of the money deposited. 
 
 Suppose that A, B, C, and D, have business with 
 each other, which requires a transfer of property ; sup- 
 pose that A and D have deposited their money in the 
 Jirst bank, B and C in the second. If A is to pay B 
 a thousand dollars, he gives him a draft, check, or or- 
 der on the first bank, which B deposits in the second 
 
 But, if the second individual will not receive the products of 
 the first, the former will need fifty dollars to make the exchange. 
 Thus, an individual may be obliged to make all his purchases 
 with money, which will require a large amount of the precious 
 metals, although, at the end of the year, his purchases may not 
 exceed his sales. 
 
 He has, finally, exchanged product for product, although he 
 has been obliged to use an instrument, money, to accomplish the 
 work. Now, a bank of deposit and exchange may, in a great 
 measure, supply the place of this instrument, money, and at a 
 far cheaper rate. The individual may deposit in the bank a 
 Email sum of money, equal to the excess, if any, of his pur- 
 chases above his sales during a day, a week, or a longer period. 
 
 If, now, the bank transact the business of exchange between 
 the parties, and the accounts be settled at the close of each 
 week, an amount of money equal to the diiference of the ex- 
 changes between the parties would meet every emergency. Each 
 person might, therefore, employ a greater portion of his capital 
 in active business, and the active capital of community would, 
 therefore, be greatly increased. 
 
 Describe the manner in which exchanges would be effected between seve- 
 ral banks of this kind. 
 
OF EXCHANGE. 217 
 
 bank. C pays D in a draft on the second bank, which 
 D deposits in the first bank. 
 
 Each bank is thus to receive a thousand dollars, and 
 to pay out a thousand dollars. The drafts cancel each 
 other, and thus the transaction is completed. It would 
 have Deen useless to transport the money back and forth 
 in this c^se, yet it must have been done had there 
 been no banks or similar institutions to transact the 
 business. 
 
 If the exchanges were between distant places, as 
 between New-York and Liverpool, the saving of time 
 and labor by this method of exchange would be still 
 greater. Suppose tliat A in Liverpool sells to B in 
 New-York ten thousand dollars' worth of broadcloths, 
 and that C in New-York sells to D in Liverpool ten 
 thousand dollars' worth of cotton ; A is entitled to de- 
 mand ten thousand dollars from B, and C to demand 
 the same amount from D« A now writes an order to 
 B, ordering him to pay ten thousand dollars to the 
 bearer, or to some person mentioned. D gives A ten 
 thousand dollars for this order, and transmits it to C, 
 who receives it in payment of the debt due him from 
 D ; C then carries this order to B, or to his banker. 
 
 But banks of discount and loan, and of circulation and issue, 
 more fully and more conveniently accomplish the same object, 
 and have now almost entirely superseded the use of banks of de- 
 posit and exchange. 
 
 Describe the manner in which exchanges are usually effected betwees ( 
 £ant places, such as New- York and LiverpooL 
 
 19 
 
218 OF EXCHAP^GK. 
 
 and receives for it ten thousand dollars. Thus all the 
 payments have been made without the transfer of anj 
 specie. Banks usually conduct this business. 
 
 In the case supposed above, D might not have known 
 to whom to apply for the " order ;" but if all the mer- 
 ©hants in Liverpool who had demands on the merchants 
 in New-York, should deposit their orders or v/ritten 
 demands with a certain bank, the purchasers would 
 know where to apply, and the bank might conduct th© 
 business between the sellers and purchasers. 
 
 But we have supposed that the exchanges between 
 the tv/o places were equaL Now, suppose that Nev/= 
 York should purchase of Liverpool products to the 
 amount of ten millions of dollars, and should sell to 
 her products to the amount ©f only five millions in re- 
 turn. In some way New-York must pay the difference^, 
 If she send specie in exchange, she must have obtained 
 the specie from some other quarter by an exchange of 
 her products, for thei?e is no other way by which she 
 could have oMa-ined it. 
 
 Or New -York might perhaps send wheat to Cuba^ 
 and obtain in exchange sugar or cotton, which might 
 be transmitted to Liverpool, sold, and the proceeds de- 
 posited in a bank in Liverpool. Then the merchant,. 
 who ov/ed a debt in Liverpool, v/ould send to his credi- 
 tor a draft or order upon the bank ; the -money, pre» 
 viously deposited there by the sale^ of the sugar and 
 
 Of what assistance are banks in this transaction ? 
 
 Now, suppose that the exchangea- Setween the two places were uneq(ia3^. 
 how will tliedifferehce be paid?' 
 
OF EXCHANGE. 219 
 
 cotton, would be given in exchange for it, and thus the 
 debt be cancelled. 
 
 These " orders" for the payment of money between 
 different countries are called bills of exchange, or fo- 
 reign bills of exchange, in distinction from inland bills 
 of exchange. They greatly facilitate commerce or 
 the exchanges between different nations, as we shall 
 see by inquiring more particularly into their nature 
 and origin, 
 
 A bill of exchange is an open letter of request, or an 
 order from one person to another, desiring the latter to 
 pay, on account of the former, a sum of money there- 
 in mentioned to a third person. 
 
 Thus, if A in New- York have owing him from B in 
 Liverpool ten thousand dollars, and C in New-York be 
 going to Liverpool to purchase goods, A may draw a 
 bill of exchange on B ; that is, request him to pay ten 
 thousand dollars to C. A thus assigns the debt due 
 him to C ; C pays A for this bill, and carries his 
 money over to Liverpool in paper credit, without the 
 risk of robbery or loss. For although this bill should 
 fall into the hands of another person, it would not be 
 paid without the authority of C written upon it for 
 that purpose. 
 
 The person who draws the bill is termed the drawer ; 
 he to whom it is addressed, is, before acceptance, called 
 the drawee, and afterwards the acceptor. The person 
 
 What is a bill of exchange 1 
 
 How are payments of money made by them ? 
 
 Wlio is the drawer of a bill of exchange 1 The drawee "? The acceptor % 
 
 ^v. 
 
220 OF EXCHANGE, 
 
 « 
 
 in whose favor it is drawn is termed the pa,7/ee, or the 
 one to whom the debt is made payable ; and when ho 
 endorses the bill, or transfers his right in it to another, 
 he is called the endorser, and the person to whom he 
 transfers it is called the endorsee or holder. 
 
 Bills of exchange were probably first invented among 
 merchants for the more easy and safe remittance of 
 money from one to the other in different countries ; 
 but since the great increase of commerce, they have 
 become equivalent to specie, and thereby greatly faci- 
 litate commercial transactions. 
 
 Thus, a merchant in New- York may have present 
 need of ten thousand dollars wherewith to purchase 
 goods in Liverpool, but may not have ready money to 
 that amount, but a Liverpool merchant may owe 
 him ten thousand dollars, payable in six months from 
 this time. 
 
 The Nev/-York merchant now drav/s a- bill of ex- 
 change on his debtor, payable at six months after date, 
 and gives this in security for the goods which he pur» 
 chases ; and the one of whom he obtains the goods 
 may, in his turn, obtain goods on the credit of this 
 bill of exchange ; and thus the bill may have the same 
 effect in different hands, and be transmitted by en- 
 dojsement or otherwise. It thus answers the purpose 
 of money. But the credit of the person on whom the 
 
 Who is the payee ? The endorser ? The endorsee ? 
 By whom and for what purpose were bills of exchange probably first in- 
 vented 1 
 In what manner are they made to answer the purposes of money ? 
 
OF EXCHANGE. 221 
 
 bill is drawn must be good, or the bill will not be thus 
 received. 
 
 When one country has purchased of another a great- 
 er amount of products than has been sent in return, 
 there arises a demand for bills of exchange wherewith 
 to pay the debt. . If the New-York merchants have im- 
 ported cloths from Liverpool to the amount of two mil- 
 lions of dollars, and have sent in return products to the 
 amount of only one million, there will arise a demand 
 for bills of exchange upon Liverpool. 
 
 Perhaps Liverpool may be indebted to Paris, and 
 Paris to New-York. In this case New-York will re- 
 ceive her pay from Paris in bills of exchange upon 
 Liverpool, and send these bills to Liverpool in payment 
 of the debt due there. Thus, New-York pays Paris, 
 and Paris pays Liverpool. 
 
 This is an accommodation to all parties, who make 
 their paj^ments without the transmission of any specie 
 whatever, which is a saving of the cost and risk incur- 
 red by transportation. It is credit that is transferred, 
 and not money. 
 
 Thus, bills of exchange become articles of merchan- 
 disc as much as any thing else, and are negotiated to 
 a considerable degree, by banking institutions, and by 
 men who devote themselves to the buying and seUing 
 of exchange. 
 
 Under what circumstances would there naturally arise a demand for bills 
 of exchange upon Liverpool or any other place 1 
 3y whom are the bills of exchange negotiated ? 
 
 19* 
 
222 OF EXGHANGB. 
 
 SECTION III. 
 
 OF EXCHANGE BY MEANS OF A PAPER CUR. 
 RENCY. 
 
 I. Banks of Discount or Loan, and of Circulation or 
 Issue* 
 
 There is another kind of bank founded on principles 
 materially different from banks of deposit and exchange* 
 Banks of deposit are now, indeed, nearly obsolete, and 
 are suited only to the early stages of commercial pros- 
 perity, and are liable to many inconveniences. 
 
 The common process of banking offers all the advan- 
 tages possessed by banks of deposit and exchange, ex- 
 cept, perhaps, that of security ; the banks now estab- 
 lished possess a greater degree of utility, are more 
 convenient, and far less expensive. 
 
 Many objections, however, have been urged against 
 them, and some very justly, considering the manner in 
 which they have often been conducted. 
 
 We shall examine the principles upon which they 
 are instituted, and the manner in which they are de- 
 signed to operate, and leave the reader to judge how far 
 the defects complained of are inherent in their nature, 
 and how far they arise from a fraudulent and remedia- 
 ble abuse of their privileges. 
 
 What other kind of bank remains fobs considered ? 
 What is said of the objections urged against them, and the manner in whicBi 
 Ihe subject will be treated 1 
 
OF EXCHANGE, 22& 
 
 Banks in this country are chartered incorporations. 
 Which are created by the legislatures of the States, un- 
 der such restrictions and regulations as the legislature 
 may impose. Persons wishing to be incorporated as a 
 banking company, present a petition to the legislature 
 of the State in which they reside, praying for such 
 privilege. 
 
 If the. petition be granted, they are thus incorporated, 
 and the amount of capital designed to be employed in 
 the banking transactions is fixed in the act of incor- 
 poi-ation. 
 
 This sum is divided into shares, or equal portions, of 
 such amount as may be supposed best suited to the 
 wants of the community ; and at a gj-ven time and 
 place, publicly notifisd, books for subscription are 
 «)pened, and every one is allowed to subscribe for and 
 purchase as many shares as he wishes, until the shares 
 are all disposed of. 
 
 The subscribers or purchasers are called siockhold- 
 ei's, and the shares are called stock. 
 
 The stockholders then meet, and choose from their 
 number certain persons' to conduct the operations of 
 the bank, who are called directors ; and the whole of 
 these together are called the hoard of directors. 
 
 The directors then choose from their number a 
 president, and a person not of their number, as cashier. 
 
 The board of directors meet at stated times to direct 
 
 What are banks in this country, and how created 1 
 What is their manner of operation ? 
 
224 OF EXCHANGE, 
 
 the general affairs of the bank ; but the active duties 
 of the bank devolve upon the president and cashier. 
 
 When the bank is thus organized, those who have 
 subscribed for stock are required to pay to the cashier 
 the sums for which they have subscribed. The bank 
 is then ready to commence operations. 
 
 The bank loans its own bills, redeemable in specie, to 
 those who wish to borrow, and receives the notes of 
 individuals, of equal amount, in return^ and charges 
 them interest on the amount loaned, which is paid in 
 advance. 
 
 The payment of the bills loaned is usually guaran- 
 tied by some other person or persons, called endorsers. 
 If those who borrow money of the banks fail to pay 
 (le debt is collected of the endorsers. The ordinary 
 period of loan is thirty, sixty, or ninety days, at the 
 close of which time the notes may be required to be 
 paid 5 and the bank may thus, if it chooses, close its 
 business v/ithin sixty days, and remain as it was when 
 it commenced, with the exception of the interest ob- 
 tained by its loans. 
 
 Let us now see what guarantee the bank possesses 
 for the redemption of its bills. 
 
 Suppose the capital of the bank to be one hundred 
 thousand dollars, and this amount to be actually paid, 
 in specie, by the stockholders. If now the bank issue 
 bills merely to the amount of its capital, it will have 
 more than a double guarantee for their redemption. 
 
 What guarantee does the bank possess for the redemption of its bills, li sS 
 loan merely to the amount of its capita! 1 
 
OF EXCHANGE* 225 
 
 For it win have specie equal to the amount of bills 
 loaned, and will also hold the notes or securities of in- 
 dividuals to the same amount. 
 
 This will now be a double security for the redemp- 
 tion of its bills. But, in addition to this, it has also 
 the interest of the sum loaned, which has been paid in 
 advance. It has, therefore, more than a double secu- 
 rity for the redemption of its bills. 
 
 It is therefore evident, that the bank may issue bills 
 to a greater amount than it has specie, and still be able 
 to redeem all its bills, if its securities are good. 
 
 Therefore, in the chartei^ which they receive from 
 the legislature, they are allowed to issue bills to a 
 greater amount than they have specie, and the extent 
 of this amount is fixed in the act of their incorporation. 
 Banks are usually allowed to issue bills to twice or three 
 times the amount of their capital. 
 
 But the bank pledges itself to redeem its bills in spe- 
 cie, on demand, and in failure of so doing, forfeits its 
 charter, — in other words, the bank breaks, or becomes 
 insolvent. 
 
 Now, there is a possibility that the bank may be 
 broken while it is perfectly solvent, — that is, while its 
 available dues exceed its liabilities. For example : the 
 capital of a certain bank is one hundred thousand dol- 
 lars, and it has loaned bills to the amount of three hun- 
 dred thousand dollars, for the period of sixty days. 
 
 To wJiat extent, tben, may banks be allowed to issue bills 1 
 
 How does a bank pledge itself to redeem its bills 1 
 
 How may a bank be broken while it is perfectly solvent 1 
 
226 OF EXCHANGE. 
 
 For the three hundred thousand dollars of iis bills in 
 circulation the bank has good security to that amount, 
 together with its capital of one hundred thousand dol- 
 lars ; but the securities are not available until the ex- 
 piration of sixty days. If, at the expiration of that 
 period, the borrowers of the bank's money fail to pay 
 their debts then due, the bank may take the property 
 secured to it, to the full amount of such debts. 
 
 But if the whole amount of these bills should be re- 
 turned to the bank within thirty days after their issue, 
 and specie shouM be demanded from them, the bank 
 would not have wherewith to meet the demand. And 
 the bank failing to fulfil its promises to redeem all its 
 bills in specie, must therefore break, although at the 
 expiration of the sixty days it might still be able to re- 
 deem all its bills, if not in specie, at least in valuable 
 property to that amount. 
 
 The cause which so lately (in 1837) obliged the 
 banks in this country to suspend specie payments, was 
 the sudden presentation of their bills, and the demand 
 for specie, while no time was allowed them to collect 
 their debts, and redeem their bill.« '^ith the securitiaa 
 which they held. 
 
 " But in ordinary times there is no danger that the 
 bills will be returned for specie so suddenly/. And if 
 the loans of a well-conducted bank do not exceed sixty 
 days, it can within that time compel the payment of 
 
 Why were the banks in this country obliged to suspend specie payments in 
 1837? 
 
 How many a bank usually place itself on a safe footing within a short pe- 
 riod? 
 
OF EXCHANGE. 22? 
 
 its debts, call in its loans, and leave no demands against 
 it, while its capital remains untouched. For those who 
 borrow the bills of the Gank, must repay them at the 
 expiration of the time for which they were loaned — 
 either in specie, in the bills of the same bank, or in the 
 bills of other specie-paying banks. 
 
 In the former two cases, the bank calls in its own 
 bills, or specie suiicient to meet them ; and in the lat- 
 ter case, it may exchange other bills for its own, or for 
 the specie of the banks that issued them. And thus 
 none, or only a few, of its bills will be left in circula- 
 tion, and the demands that can be made for specie will 
 be quite trifling. 
 
 Thus, any well-conducted bank may, in a short pe- 
 riod, wind up its concerns, redeem its promises to pay 
 its bills in specie, and place itself upon a perfectly safe 
 footing. And this, also, although it has loaned bills to 
 three times the amount of its capital. 
 
 The same might have been accomplished by the 
 banks generally throughout the United States in 1837, 
 if they had been allowed the short period of sixty days ; 
 at the expiration of which time they might have called 
 in all their bills. 
 
 But the remedy would have been far wmse than the 
 evils incurred by a temporary suspension of specie 
 payments. To have removed such an amount of tha 
 circulating medium of the country, would have been a 
 blow as fatal to commerce, as the destruction of his 
 
 What would have been the eflect if the banks, in 1837, had withdrawn 
 tkeiT bills from circulation, in order to render themselves secure ? 
 
228 OF EXCHANGE. 
 
 implements of husbandry would have been injurious to 
 the farmer.^ 
 
 We see, then, that well-regufated banks may safely, 
 in ordinary times, issue bills to a greater amount than 
 they have capital ; and the extent of their capital need 
 be no more than sufficient to redeem every bill as soon 
 as presented, and, besides, to guaranty the holders of 
 its bills against any injury that the bank might suffer 
 • from a failure of its securities. 
 
 II. Of the Sources of the Profits of Banks. 
 
 1st. From deposits. Individuals frequently deposit 
 money with a bank for safe keeping. The bank then 
 uses this money as its own, upon which it receives 
 considerable profits. Thus, if a bank have fifty thou= 
 sand dollars of deposits, it may consider this as a por 
 tion of its capital, and issue bills upon it to perhaps 
 twice or thrice its amount, 
 
 » But a bank never issues its bills gratuitously ; and even if 
 it have no fun,ds of its own, these bills imply, in the coffers of 
 the bank, a value of like amount, either in the form of specie, 
 or of valuable securities bearing interest. So long, therefore, aa 
 the business of the bank is v/ell administered, supposing a total 
 failure of confidence to bring all its notes upon it at once for pay- 
 ment, the worst that can happen to the holders, is to he paid with 
 the same bills or securities whereon the bank issued its notes. 
 And if the bank have a capital of its own, there is so much 
 additional security. 
 
 What should be the extent of capital possessed by banks generally 1 
 What are the several sources of the profits of banks 1 
 
or EXCHANGE, 22& 
 
 2(3. By negotiating and exchanging drafts and bills 
 of exchange, &c. Thus, A, at Buffalo, wishing to 
 send a thousand dollars to B, in Nev/-York, gives one 
 thousand dollars to a Buffalo bank for its draft to that 
 amount, which is a request to some bank in New-York 
 to pay on demand one thousand dollars to B. This 
 draft is then sent to B, who receives the money by 
 presenting the draft at the bank. 
 
 And if a person in New-York wishes to send money 
 to Buffalo, the business is transacted in the same 
 manner. 
 
 And it is evident, that if the exchange of drafts be- 
 tween the two places were equal, there need be no 
 transmission of money. This is a safe and convenient 
 way of making payments in distant places ; and the 
 banks charge a certain per centage for transacting 
 this business, from which a portion of their profits is 
 derived. 
 
 8d. The chief source from which a bank derives its 
 revenue, is its regular loans. The bank receives in- 
 terest on all the notes it issues, and the amount of 
 these notes may be twice or thrice that of the capital 
 of the bank. 
 
 There would, however, be little or nothing gained 
 by banking, were banks allowed to issue notes only to 
 the amount of their actual capital ; for although they 
 received interest on their notes, interest to the same 
 amount would lay dormant in the specie withdrawn 
 from circulation. 
 
 20 
 
230 • OF EXCHANGE, 
 
 III. Of the utility of Banks. 
 
 In treating of the utility of banks, as a distinct sub- 
 ject of consideration, there can be little more than a 
 repetition of the. principles which have already been 
 advanced. 
 
 It has been seen, that in a state of barter exchanges 
 are difficult, and few in number. The use of money 
 as a labor-saving instrument, increases the number 
 and convenience of exchanges. Banks are more com- 
 plicated instruments, or labor-saving machines, design- 
 ed to accomplish the same object. 
 
 A proper estimate of the utility of such institutions* 
 when well conducted, can be derived only from an in- 
 timate acquaintance with the varieties and magnitude 
 of commercial transactions ; from a knowledge of the 
 peculiar adaptation of the machine to the purposes for 
 which it is designed ; and, finally, the application, to 
 this knowledge, of established principles in political 
 economy. 
 
 But the principles upon which commercial transac- 
 tions are conducted, are few and simple, and easy of 
 comprehension, and may be gathered mostly from the 
 preceding parts of this work which treat of Production 
 and Exchanges. 
 
 The nature of banks, and the principles upon which 
 
 What is said of the utility of banks 1 
 
 For what are banks designed 1 
 
 How only can a proper knowledge of their utility be obtained 1 
 
 What is said of tlie principles of commercial transactions 1 
 
OS* EXCHANGE. 231 
 
 they are conducted, have been examined as far as the 
 limited extent of this work would permit ; and perhaps 
 the application of principles already established, would 
 remove any necessity of considering this subject fur- 
 ther in detail. But, to render the subject somewhat 
 plainer, we will briefly advert to a few of those prin- 
 ciples which may be deduced from the previous portion 
 of the chapter on exchanges. 
 
 In reference to the utility of banks as institutions 
 of deposit, it is sufficient to advert to their saving of 
 the labor of transportation, of counting, and of vigil- 
 ance, which have already been examined under the 
 article, " Banks of Deposit and Exchange." Although 
 banks of deposit are now nearly obsolete, yet all their 
 advantages are retained in the banks of the present 
 day. 
 
 The utility of banks as institutions of discount^ and 
 
 » Discounting a note or bill, is merely the advance of its pre- 
 sent value before it becomes due. Thus, if A holds a note of 
 one hundred dollars, due twelve months hence, and wishes the 
 money at the present time, B, perhaps, will discount the note 
 for. him. 
 
 A transfers the note to B, in consideration that B will now 
 advance him the present value of the note. That is, B gives A 
 in exchange for the note, not one hundred dollars, but such a 
 sum as, put at interest at the given rate, would, at the expira- 
 tion of a year, amount to one hundred dollars. 
 
 Thus, banks discount commercial paper, bills of exchange, &c 
 
 What of the utility of banks as institutions of deposit and exchange! 
 
 From what is the utility of banks of discount derived ? 
 
 {W/ liat is meant by disco'J nting a note '^) ' ■ ^ 
 
232 OF EXCHANGE, 
 
 loaii, or of circulation and issue, is derived, not from 
 their adding any thing directly to the capital of a 
 country, but from their rendering the existing capital 
 much more 'productive. 
 
 This object is accomplished in several ways. Banks 
 collect together and render productive a large amount 
 of capital that would otherwise be scattered and use- 
 less. Small sums in the hands of laborers, widows, 
 minors, and aged persons, which would otherwise be 
 often thrown away in folly and dissipation, are now 
 safely deposited in banks, which allow the depositor a 
 certain rate of interest, and still make a profit to them- 
 selves. Thus, a larger amount of capital is engaged 
 in active production, by which not only the owners 
 of capital thus rendered useful, but also the banks and 
 the country at large are benefited. 
 
 Banks also render the capital of a country far more 
 productive by the facilities which they afford for the 
 extension of credit. For example, a merchant in one 
 of the western States wishes to purchase a new stock 
 of goods to the value of ten thousand dollars, but can- 
 
 If a bank discount a bill of exchange, it gives its own money in 
 return for the bill — subtracting therefrom the discount. The 
 bank then collects the full amount of tlie bill-, when it becomes 
 due. 
 
 Where a bank discounts a note or bill of exchange, it is in 
 effect loaning its own money, and receiving in security the note 
 or bill payable on a future day. 
 
 In what different ways do banks render the capital of a country more pra 
 ductive T 
 How do banks afford facilities for the extension of credit 7 
 
OF EXCHANGE. 233 
 
 not command that amount of money at the present 
 time. 
 
 But he perhaps owns twenty thousand dollars of 
 valuable property. He now goes to a neighboring 
 bank, and, by mortgaging his property as security, 
 obtains the loan of ten thousand dollars, with which 
 he goes to New- York or New-Orleans and makes his 
 purchases, and after the sale of his goods is enabled to 
 return tiie bank what he borrowed, and retain a profit 
 to himself. 
 
 And if the merchant be a poor man, but be honesty 
 
 skilful, and industrious, he may probably borrow money 
 of the bank on the security of other individuals. Banks 
 afford the same facilities not only to merchants, but 
 to all business men who are able to give security for 
 the sums borrowed. For the use of this money, the 
 borrowers pay the banks a cer4:ain amount of interest. 
 And it is much cheaper to the borrower— ^to the mer- 
 chant, for instance — to obtain credit from the banks 
 than from the importer of whom he obtains his goods. 
 For the importer, fearful that he may lose, either by 
 the want of skill or fidelity in his debtor, charges him 
 considerably more for his goods than he would charge 
 if he sold them for cash. He has both a cash and a 
 credit price for his goods. 
 
 But if the merchant could pay cash for his goods, 
 he could not only obtain them cheaper, but the im- 
 porter could afford them cheaper ; for if the latter can 
 receive cash for his goods immediately on their sale. 
 
 Why is it the cheapest to a borrower to obtain credit from banks 1 
 
 20* 
 
234 OF EXCHANGE. 
 
 he also is enabled to purchase his goods cheaper, for 
 he thus obtains them in a foreign market at a cash in- 
 stead of a credit price. 
 
 And thus, by the extension of credit which the banks 
 afford, there is a benefit to the whole community. 
 But it may be said, if there were no banks, individuals 
 would loan money in the same manner as banks now do. 
 
 In the first place, they would have much less to loan, 
 for they could loan gold and silver only, as the paper 
 of private, unknown individuals, would not be received 
 at a distance from home. They could never loan 
 credit so extensively as banks. 
 
 And again, after the trouble of finding a capitalist, 
 he might be timid and suspicious ; unacquainted with 
 the business and character of the borrower, his risk of 
 loss would often be great; the rate of interest would 
 consequently be high ; and there would be, on the 
 whole, but little disposition on the part of the capital- 
 ist to part with the immediate control of his means. 
 
 But the many inconveniences that would result from 
 this system of loaning, are too obvious to need enume- 
 ration. 
 
 But it has been seen that banks may issue notes to 
 a greater amount than they have specie, and yet be 
 safe to the community. These notes answer the same 
 purposes as specie in exchanging commodities ; con- 
 
 How does this credit system benefit the whole community 1 
 
 What inconveniences would arise were private individuals the only money 
 
 lenders 1 
 While bank notes answer the same purpose of exchange as species, how 
 
 io baoks increase the producSve capital of a country 1 
 
OF EXCHANGE. 235 
 
 eequently the result is the employment of a cheaper 
 instrument for facilitating exchanges. 
 
 But as only a certain amount of value is required 
 to effect the exchanges of a community, if more mo- 
 ney be put in circulation its value will diminish, and 
 vice versa ; and the paper money that is issued being 
 redeemable in silver, its value is still equal to the silver 
 money. 
 
 But if there be an increased amount of this money, 
 its vahie will be lower here than abroad, and a dollar 
 will obtain more abroad than it will purchase at home. 
 But as the specie only is of any value abroad, specie 
 alone will be exported. 
 
 Suppose that half the specie could be exported with- 
 out impairing the currency at home, this export, then, 
 would be, to its full amount, so much gain to the pro- 
 ductive capital of the countiy, for it would procure in 
 exchange an equal amount of other capital. 
 
 The advantages, therefore, of having a portion of 
 the currency of the country in paper money, redeema- 
 ble in specie, are, first, its greater convenience in ex- 
 change ; and, secondly, it enables us to use a cheaper 
 instrument instead of a dearer, and to employ the 
 amount of the difference between the cost of paper 
 money and specie in the various operations of human 
 industry. 
 
 What, then, are the advantages in having a portion of the currency in pa 
 r-«r money, redeemable in specie 1 
 
236 OF EXCHANGE. 
 
 IV. Qf the disadvantages of Banks, 
 
 Banks are liable to forgery, fraud, and fluctuation, 
 
 1st. Bank paper is liable to forgery, and those who 
 have counterfeit notes imposed upon them must bear 
 the loss. The security from signatures is small. The 
 greatest security is in the excellence of the engraving, 
 for an ordinary artist can very accurately counterfeit 
 a bad engraving, but only the best artists can accu- 
 rately counterfeit a good one. Banks should employ 
 the best artists in the execution of their biiis, for they 
 are probably under the fewest temptations to engage 
 in counterfeiting. It is true that coin may be coun- 
 terfeited, but the process is much more difficult and ex- 
 pensive, and false coin is easily detected. 
 
 2d. The transactions of banks may be fraudulently 
 conducted by their officers, and thus expose the com- 
 munity to a loss, if they have no other security tlian 
 the integrity of bank directors. But the system of 
 banking may be so regulated by wise legislation, that 
 there will be little danger to the community from this 
 source. 
 
 3d. There is, however, one disadvantage to which 
 
 What are the disadvantages of banks ? 
 
 What is the danger from forgery, and in what manner best avoided 1 
 To what danger is community exposed from fraudulent transactions o- 
 hanks 1 
 What is the principai disadvantage to which paper money is exposed ? 
 
OF EXCHANGE. 237 
 
 paper money is greatly exposed : it is liable to sudden 
 and great fluctuations in value. 
 
 If a certain number of dollars be necessary to ac- 
 complish the exchanges of a community, and twice 
 this number be introduced, the price of money will fall 
 one half; that is, if five dollars were given for a bar- 
 rel of flour before, ten dollars will be given now. 
 
 The same value will be given in both cases, but not 
 the same nominal amount. And if half the quantity 
 were removed, the reverse vfould be the case. 
 
 Therefore, if banks suddenly increase their loans, 
 that is, issue a great amount of paper money, while 
 there are no more exchanges to be made than before, 
 the price of money v/ill fall ; that is, a dollar will not 
 obtain as great an amount of other commodities as it 
 could obtain previous to this excessive issue of notes. 
 
 Suppose that before this excessive issue of bills a 
 laborer could have obtained a bushel of wheat for a 
 day's work, and that he had labored twenty days for a 
 farmer, and received for his services twenty dollars, 
 expecting to obtain for his money within a few weeks 
 twenty bushels of wheat. But in the mean time money 
 becomes much more plenty, on account of the vast 
 amount of paper money put in circulation by the loans 
 of the banks — the price of money consequently falls, 
 and the laborer' can now- receive perhaps only ten or 
 
 How are fluctuations in the value of money occasioned 1 
 What is the effect of a sudden increase of bank paper whiie exchanges 
 ►wmain tlie same ? 
 How may the wages of labor be effected by this increase 1 
 
238 OF EXCHANGE. 
 
 fifteen bushels of wheat for his twenty dollars. The 
 difference is a total loss to the laborer.^ 
 
 Various causes may occasion this excessive increase 
 of money, and consequent fluctuation of value. A 
 season of unusual productiveness may occasion it. 
 
 » But, it may be remarked, — banks are not very liable to 
 make extensive loans, unless the wants of community require it. 
 If there be an increase of productiveness throughout the coun^ 
 try, and consequently more commodities to be exchanged, then 
 it is an advantage to have the amount of money increased pro- 
 portionally to the greater amount of exchanges required to be 
 made. But, if money be increased beyond this amount, and if 
 the amount at one time necessary still remain the same, while 
 the number of exchanges has diminished, it is then attended 
 with evil to the community. 
 
 But, while the number and amount of exchanges are increas- 
 ing, there will naturally be a demand for more money, and the 
 banks will keep the supply equal to the demand ; and, Avhen 
 exchanges diminish, the loans of the banks will naturally be 
 contracted. For they cannot issue bills unless there is a demand 
 for them. 
 
 But, at times the spirit of speculation rages throughout com- 
 munity, and the nominal value of property rises immeasureably 
 high. The same amount of money is i-equired to exchange 
 nominal as real value. There is then an unnatural demand for 
 money, and the banks issue as before, until, at length, the eyes 
 of men are opened — the bubble speculation bursts — property 
 falls to its natural level — and there is a vast amount of useless 
 money afloat in community. 
 
 The excessive issue of money, therefore^ beyond the real 
 wants, of community, is the evil to be avoided. This evil may 
 
 How may fluctuations in the value of paper money be occasioned by tlia 
 fijccurrence of a season of unusual productiveness 1 
 
OF EXCHANGE, 239 
 
 By an increase of productiveness products are ren- 
 dered cheaper. Speculators will then buy, in the hope 
 of making large profits by their sales — there is a call 
 upon the banks for money, and, as it is to their inter- 
 est so to do, they will loan to the utmost extent of their 
 power. 
 
 An unusual excitement is thus given to business — • 
 wild speculations are engaged in: — and the consequence 
 is, a great excess of money is issued, far beyond the 
 real wants of community. 
 
 But, as money is now cheaper at home than abroad, 
 there will soon arise a demand for specie to be export- 
 ed — bank bills are now bought ^p by speculators, and 
 specie demanded for them — confidence in the banks 
 begins to fail, and they are obliged, for their own se- 
 curity, hastily to call in their loans. 
 
 There now arises a scarcity of money, and a pres- 
 sure is felt in all commercial transactions. But, by 
 this scarcity of money, products again become com- 
 paratively cheap — there is again a disposition to buy, 
 and to engage in speculations — banks again increase 
 their loans— and the same extremes, unusual commer- 
 cial activity and violent depression, again succeed 
 each other. 
 
 in a great measure be remedied, by limiting' the loans of tlio 
 banks tq a certain amount above their capital actually paid in. 
 
 But the banks and bank directors are generally censured for 
 all these evils, while the speculators, the real originators of 
 them, turn from themselves the odium, by being the first and 
 loudest in their denunciations of the banking system. 
 
240 OF EXCIIAKGK. 
 
 But gold and silver money cannot be thus suddenly 
 and extensively increased in amount, for they have a na- 
 tural price, different from that of bank bills, depending 
 on the cost of production. Thus far a specie curren- 
 cy Avould be an advantage, for it would increase and 
 diminish in a more exact proportion to the real wants 
 of community. 
 
 Banks, also, by conspiring together, may at one 
 time loan very freely, and at another simultaneously 
 contract their issues, and enforce the payment of their 
 loans— thus rendering money scarce, and unable to be 
 obtained. 
 
 In this manner, thej may render great numbers of 
 the population bankrupt. For those who have pay. 
 ments to make, being unable to obtain money will often 
 be obliged to dispose of their property at a great sa- 
 crifice. 
 
 These, however, are evils which arise mostly from 
 an abuse of banking privileges. Wise legislation may 
 in a great measure remedy them, but even then there 
 are some dangers to which every banking system is ne- 
 cessarily liable. 
 
 The effect of banks upon individual and national 
 wealth, is described by Smith in a quaint and inge- 
 nious metaphor :- — 
 
 The capital of a nation he likens to an extensive 
 
 Why is not gold and silver money liable to these sudden fluctuations 1 
 What evils may banks inflict upon community, by conspiring together for 
 
 that purpose 1 
 Do these evils, however, arise from the very nature of banks, or from an 
 
 abuse of tlieir privileges 1 
 
OP EXCHANGE. 241 
 
 tract of country, in which the cultivated districts re- 
 present the productive capital, and the high roads the 
 agent of circulation ; that is to say, the money, that 
 serves as the medium to distribute the produce amon^ 
 the several branches of society. 
 
 He then supposes a machine to be invented for trans- 
 porting the produce of the land through the air ; that 
 machine would be the exact parallel of credit-paper. 
 Thenceforward the high roads might be devoted to 
 cultivation. 
 
 The commerce and industry of the country, how- 
 ever, he continues, though they may be somewhat aug- 
 mented, cannot be altogether so secure, when they are 
 thus, as it were, suspended upon the Daedalian wings 
 of paper money, as when they travel about upon the 
 solid ground of gold and silver. 
 
 In this country, public opinion appears to have de- 
 cided that the advantages afforded by banks are alto- 
 gether paramount to the evils which they inflict upon 
 community. But it is universally conceded that the 
 banking systems in the different States are generally 
 very defective. 
 
 Many theories have been advanced for the better 
 regulation of the currency, but it is difficult to induce 
 80 many separate sovereignties as the States to unite in 
 any one system. 
 
 How is the effect of banks upon individual and national wealth described 
 by Smith ? 
 What is said of the present banking systems in the different States 1 
 
 21 
 
24:^ OF EXCHANGE. 
 
 It is thought by many that the Safety Fund System 
 adopted in New- York, combines the most salutary pro- 
 visions for the security of banks, and for the evils here- 
 tofore so frequently inflicted by their failures, and by 
 the dishonesty of their directors. 
 
 An exposition of this system will be given in the ac- 
 companying note.^ 
 
 a By the late Revised Statutes of the State of New-York, it is 
 provided that each bank in the Stale hereafter created, or whose 
 charter shall be renewed, shall yearly pay to the treasurer of the 
 State a sum equal to one half of one per cent, on the capital 
 stock of the bank, until three per cent, on the capital stock shall 
 be paid in, which shall remain a perpetual fund, to be denomi- 
 nated a Bank Fund. 
 
 This bank fund is to be appropriated to the payment of such 
 debts (exclusive of the capital stock of such banks as shall be- 
 come insolvent) as shall remain unpaid after the property and 
 effects of the bank have been applied to that purpose. This fund 
 is invested by the comptroller in public stocks, or in loans, issued 
 upon the credit of the State, 
 
 The income arising from this fund, if not needed to pay the 
 debts of insolvent banks, is to b« paid to the banks, in proportion 
 to their contributions ; but when the fund is reduced, by the 
 payment of the debts of insolvent corporations, the banks are 
 again to commence paying into the fund as formerly, until the 
 fund be reimbursed. And if the fund, at any time, should not 
 be sufficient to pay the debts of insolvent corporations, then the 
 first moneys paid into the fund are applied to the liquidation of 
 the same. 
 
 Bank commissioners also are appointed, whose duty it is to 
 
 Of the New- York Safety Fund System'? {Explain it.) 
 
OF EXCHANGE. 243 
 
 visit and thoroughly inspect the affairs of each bank at least 
 once in four months, and to report to the legislature. 
 
 The amount of notes or bills put in circulation, as money, by 
 any bank, is limited by law to twice its capital stock then paid 
 in, and actually possessed; and the amount of its loans and dis- 
 counts at any one time, is limited to twice and a half its capital 
 stock then paid in, and possessed. 
 
 In cases of fraudulent insolvency by the directors of any in- 
 corporation, the directors thus guilty are made responsible in 
 their private capacities for the debts of the institution. 
 
 Also, every moneyed corporation hereafter to be created in the 
 State, is to have all its capital paid in before it can make any 
 loans or discounts, and the payment of the capital is to be proved 
 on oath, to the satisfaction of the bank commissioners. 
 
 The stock of a bank is usually paid by instalments ; that is, 
 only a certain portion of each share is paid when the bank com- 
 mences operations, and the remainder is paid in such amounts 
 and at such times as are designated by the act of incorporation. 
 But, in New- York, a bank cannot commence business until the 
 president and cashier have made and subscribed an affidavit, stat- 
 ing that the whole stock of the bank has actually been paid. 
 
 Thus, by the provisions which regulate the banks in New- 
 York, under the safety fund system, there is little opportunity 
 for fraud, and the holders of bank notes can suffer no permanent 
 loss by the failure of banks. It is thought that this system will 
 effectually remedy the most prominent evils to which banks have 
 heretofore been liable. 
 
 The subject of banking at the present time is one of the most 
 exciting interest. The shock that has lately been felt in the 
 commercial world, and in all monetary transactions, — the gene- 
 ral depression of credit, — the failures of thousands, — and the 
 suspension of specie payments by the banks, have directed public 
 opinion to inquiry into the causes of this wide-spread calamity, 
 and to the suggestion of countless remedies for the evil. 
 
 The intimate connection of this subject with Political Econo* 
 my, will excuse us in adverting for a moment to matters of po. 
 
244 OF EXCHANGE. 
 
 litial controversy ; and in treating of such a subject, it is hardly 
 possible to avoid them. 
 
 Passing by the causes which have led to these calamities, it is 
 not surprising, where all are interested in the establishment of a 
 safe, convenient, and permanent currency, that many projects 
 should be advanced for the accomplishment of such an object, 
 both by the lionest and by the interestedly selfish, and that a vio- 
 lent prejudice should arise against the currency system under 
 which these calamities happened. 
 
 But it is surprising to find so many who are so unacquainted 
 with some of the first principles in political economy, — viz., the 
 advantages derived by a division of labor in effecting exchanges, 
 as well as in increasing production, — ^that they seek the destruc- 
 lion of all banking institutions whatever. 
 
 I am willing to believe that those who advocate such a mea- 
 sure, are not actuated by pecuniary motives ; for I can conceive 
 of no possible good that the adoption of such a measure could 
 confer upon any class of society, and it is not difficult to predict 
 the evils that would fall upon all. 
 
 Banks must be established under such regulations as govern- 
 ment may impose upon them, or their business must be done by 
 individuals. But individuals being frequently unknown to the 
 public, have certainly greater opportunities for the commission 
 of fraud than public incorporated bodies. 
 
 Collusion, for the purpose of raising the rate of interest, is as 
 liable to occur between individual money-lenders as between 
 banks ; and doubtless more so, as it is more difficult of detection. 
 
 The wisdom of one man will probably not succeed any belter, 
 at least, in managing banking transactions, than the combined 
 wisdom of a dozen individuals. All the evils to which banks 
 are liable, would still exist to as great a degree, at least, as at 
 present, if individuals should undertake to do the business now 
 done by banks. 
 
 But it is also said that we can do without banking institutions 
 and banking transactions, — that we may have an exclusive gold 
 
OP EXCHANGE. 245 
 
 and silver currency, and that every man may make and receive 
 his payments in coin. 
 
 This would merely be carrying us back two or three centu- 
 ries in civilization — -to the first stage of improvements upon a 
 state of barter; and the argument is of the same kind with that 
 which would attempt to persuade us to abandon the conveniences 
 and luxuries of the civilized, for the scanty necessities and sim- 
 pler modes of savage life. 
 
 But the arguments in favor of an exclusive metallic currency 
 for the use of a great commercial people, embracing as they 
 do the destruction of the credit system, need no attempt at 
 refutation. The subject might have merited discussion three 
 centuries back, in the infancy of commerce, but is now too far 
 behind the intelligence of the age, to meet with any favor from 
 the more intelligent portion of community. 
 
 All that is requisite to show the folly of that visionary and uto. 
 pian scheme, is an acquaintance with the commercial state of 
 the civilized world, and a knowledge of established and immuta- 
 ble principles in political economy. 
 
 That banks have been, at times, productive of some evils, 
 cannot be denied ; but that they have also been, by the aid 
 which they have given to commercial credit, one very efficient 
 cause of rendering us the second commercial nation in the 
 world, appears fully as evident. 
 
 Before, then, we commence a warfare of extermination against 
 all banks it may be profitable to inquire whether the evils complain- 
 ed of may notj in a great measure, be avoided in future by bet- 
 ter banking regulations, and by a salutary reformation, without 
 the necessity of entire destruction. 
 
 It would doubtless be better were our banks established upon 
 a firmer metallic basis. This, may, in a measure, be effected by 
 the prohibition of the issue of small bills, which would introduce 
 an amount of specie equal to the amount of small bills with- 
 drawn from circulation. The small exchanges between indi- 
 viduals would then be made in specie, the great mass of the cir- 
 culating medium would be less liable to sudden and excessive 
 
 21* 
 
246 OF EXCHANGE. 
 
 fluctuations, and merchants and others engaged in lai'ge com- 
 mercial transactions, might still avail themselves of the advan 
 tages afforded by banks. 
 
 But, while banks may be established by the States upon diffe- 
 rent systems, and under different regulations, it is evident that 
 the community will entertain but little confidence in them. 
 And, whatever system may be adopted, it is all-important to its 
 success that the people should have confidence in its permanency, 
 —that it should not be liable to sudden changes and innovations ; 
 but, that the system, throughout the States, should be one and 
 uniform. And until this confidence be gained, credit cannot re. 
 vive ; for credit implies confidence — confidence in the perma- 
 nency and stability, as well as in the present utilityj of the 
 currency system which^ may be adopted. 
 
 In relation to the subject of credit, so little understood by most 
 people, I cannot forbear to quote the words of Mr. Say ;— 
 
 " The expressions, credit is declining, credit is reviving, are 
 common in the mouths of the generality, who are, for the most 
 part, ignorant of the precise meaning of credit. It does not im- 
 ply confidence in the government exclusively — -for the bulk of 
 the community have no concern with government, in respect to 
 their private affairs. Neither is it exclusively, applied to the 
 mutual confidence of individuals — for a person in good repute 
 and circumstances does not forfeit them all at once ; and ev«n 
 in times of general distress, the forfeiture of individual character 
 is by no means so universal as to justify the assertion, that cre- 
 dit is at an end. It would rather seem to imply confidence in fu- 
 ture events. 
 
 " The temporary dread of taxation, arbitrary exaction,^ or vio- 
 lence, will deter numbers from exposing their persons or their 
 property ; undertakings, however promising and well-planned, 
 become too hazardous ; new ones are altogether discouraged, 
 old ones feel a diminution of profit ; merchants contract their 
 operations ; and consumption in general falls off, in consequence 
 of the decline and the uncertainty of individual revenue. There 
 
OF EXCHANGE. 247 
 
 «an be no confidence in future events, either under an enterpris- 
 ing, ambitious, or unjust government, or under one that is want- 
 ing in strength, decision, or method. Credit, like crystallization, 
 can only take place in a state of Quiescence " 
 
PART FOURTH 
 
 CONSUMPTION OF WEALTH 
 
 I. Of the nature and different kinds of Consumption, 
 
 The ultimate end and design of the creation of 
 value, is the gratification of desire. But, in answer- 
 ing this end, the value is destroyed. Thus, flour is 
 converted into bread ; its value as flour is destroyed, 
 but it reappears in another form ; the bread is used 
 for food, and its value as bread is gone for ever. This 
 act, by which we annihilate a particular value, is call- 
 ed consumption. 
 
 Sometimes this consumption is followed by no fur- 
 ther utility than the present gratification of desire, as 
 in an exhibition of fireworks — the value of the article 
 is destroyed in the gratification of the desire of amuse- 
 ment, and no further utility can be derived from it. 
 
 Of what does part fourth treat ? 
 
 For what is value created— and how is it made to answer its end 1 
 
250 CONSUMPTION OF WEALTH. 
 
 But, in the consumption of bread for the gratification 
 of a desire necessary to support existence, its value 
 reappears in renovated health and vigor. The former 
 is called unproductive, the latter, productive consump- 
 tion. 
 
 By consumption, however, is not understood the 
 destruction of material products only, but the destruc- 
 tion of value, in whatever form that value exists ; for 
 it may exist either in the form of labor or of capital. 
 But all values that have been added by human indus- 
 try, if once destroyed, cannot be destroyed a second 
 time ; and whatever cannot lose its value, is not liable 
 to consumption. 
 
 But all products are consumed sooner or later ; 
 either by design or by accident ; rapidly or gradually : 
 for they are produced solely for the purpose of con- 
 sumption. 
 
 The farmer raises wheat for the purpose of destroy- 
 ing its value in the gratification of desire. And the 
 farmer may consume its value tvhen changed to the 
 form of bread, or he may obtain from the merchant in 
 exchange for it another value in the form of cloths 
 and sugar, which he wishes to consume. And the 
 merchant obtains the wheat for the purpose of con- 
 suming it himself, or for the purpose of selling it to 
 another who wishes to consume it. Thus, all values 
 are designed for consumption. 
 
 What is consumption, as here understood 1 
 What ia unproductive, and what productive consumption ? 
 By consumption do we understand the destruction of material producti 
 only I 
 
CONSUMPTION OF WEALTH. 251 
 
 But, we have said there are two kinds of consump. 
 tion — productive and unproductive. 
 
 In productive consumption, the value which is des- 
 troyed in one form, reappears with increased amount 
 in another form. Thus, the farmer consumes seed, 
 dtensils, and labor, expecting that the produce of his 
 farm will replace the values consumed and pay the 
 interest of his capital, and also leave him a suitable 
 recompense for his labor and skill. 
 
 In the departments of operative industry, values are 
 consumed for the purpose of changing their form, in 
 order that they may be better adapted for consumption. 
 Thus, the manufacturer consumes cotton, whose value 
 reappears in the form of cloth. Here the object is an 
 increase of value. But, if the value of the cloth be 
 less than all the values consumed in its production, it 
 has evidently been an unproductive consumption of 
 value, and a loss to the manufacturer. 
 
 But values are also consumed for the gratification 
 of desire where no increase of value in any material 
 product is expected. Thus, values are consumed for 
 the gratifications of the senses — for intellectual grati- 
 fication — and for social and moral pleasures. And 
 these kinds of consumption may be either productive 
 or unproductive ; for those gratifications which render 
 a man better, wiser, and happier, must be considered 
 as productive of value to him. 
 
 What becomes of the value destroyed in productive consumption 1 
 For what purposes are values consumed in the departments of operative 
 industry 7 
 When are values consumed without a design to increase their value 1 
 
M 
 
 252 CONSUMPTION OF WEALTH. 
 
 But, if their tendency be to render man corrupt, 
 debased, and wretched, the values which have been 
 consumed in the gratification have been unproduc- 
 tiveiy consumed. 
 
 But, that which is economy and productive con- 
 sumption to one man, may perhaps be profusion and 
 unproductive consumption to another, and must be 
 determined by the fortune, condition, and wants of the 
 individual. 
 
 An expense that would render a man of moderate 
 fortune wiser and happier, might be extravagance in 
 a poor man, and, by depriving him of more important 
 gratifications, render him wretched. 
 
 And, so varied are the means and the circumstances 
 of individuals, that the only practical rule which can 
 be given for individual consumption is, " Be econom 
 ical, wise, and prudent, in all things." 
 
 And even economy itself is a relative term — the 
 knowledge of our means, and the best mode of employ- 
 ing them. It is equally distant from avarice and 
 profusion* 
 
 II. Of Public Expenditure. 
 
 It now remains for us to advert for a moment to 
 public consumption, or public expenditure. Our re- 
 marks upon this subject will be short, for, after all, it 
 
 When may this kind of consumption be productive— and when is it unpro* 
 ductive 1 
 
 Is it easy to establish rules of economy which will apply to all circuni- 
 otances 1 
 
 Wliat is economy 1 
 
/; CONSUMPTION OF WEALTH. 253 
 
 will be found that there is a perfect analogy between 
 the finances of an individual and those of a nation, and 
 that the same principles of political economy should 
 regulate the management of the aiSairs of both. 
 
 Government must be supported, and in no other 
 way can it be maintained than by means derived from 
 the people. And, as government possesses nothing, 
 its revenues are derived from, and its expenditure pro- 
 vided for, by means of taxation. And its object being 
 to provide for and promote the general welfare of the 
 people, it should accomplish this object with the con- 
 sumption of as little value as possible. 
 
 The principles which regulate national consump- 
 tion are, therefore, the same as those which apply to 
 individuals. 
 
 If useless and extravagant expenditure will impover- 
 ish an individual, the same causes will impoverish a 
 nation — public and private expenditure affect wealth 
 in the same manner. 
 
 Yet, some writers have maintained, that public wealth 
 increases with the increase of public consumption, and 
 that where taxes are imposed by government to be 
 consumed in games and festivals, the nation loses 
 nothing — for what is taken from the people in the 
 form of taxes, is returned again by the expenditures 
 of government. 
 
 The argument is of the same kind, as if a robber 
 should enter a merchant's house and take away his 
 
 Is there any difference between the principles which should regulate pub- 
 lic and those which should regulate private expenditure 1 
 
 22 
 
254 CONSUMPTION OF WEALTH. 
 
 money, and tell him he did him no injury, for the 
 money would be employed in purchasing the commod- 
 ities he dealt in. But in such a case, although the 
 money be returned, the commodities are parted with 
 without any equivalent. 
 
 And the same with the taxes of a nation : if they 
 are consumed by government in useless expenditure, 
 there is so much value lost. For, although the nation 
 receive back its money, it parts with commodities for 
 which it receives no return. 
 
 The subject of public expenditure is so plain, after 
 a knowledge of the nature of wealth and the design of 
 consumption, that it is not thought requisite to give 
 it a further discussion. The application of principles 
 already established — and of those which will readily 
 suggest themselves — will in all cases, as far as reason 
 can teach us, direct the manner and the extent of 
 public consumption. 
 
 How have some writers regarded public profusion— and how is the subject 
 considered ? 
 Is the subject of public expenditure a difficult one 1 
 
AN APPENDIX, 
 
 CONTAINING 
 
 A BRIEF ACCOUNT 
 
 OF THE 
 POWERS, DUTIES, AND SALARIES 
 
 ,0F 
 
 NATIONAL, STATE, COUNTY, 
 
 AND 
 
 TOWN OFFICERS. 
 
ARTICLE IL 
 
 APPENDIX. 
 
 CHAPTER I. 
 
 OF NATIONAL OFFICERS. 
 
 The government of the United States is divided in- 
 to three great departments — the Executive, the Legis- 
 lative, and the Judicial, each having distinct duties to 
 perform. 
 
 SECTION I. 
 
 OF THE EXECUTIVE DEPARTMENT. 
 
 The executive officer of government is the President. 
 The general duties annexed to the office of President 
 have already been considered in a previous portion of 
 this work; but as they are obviously too numerous 
 and too various to be performed by one man, subordi- 
 nate departments have been created, and the duties of 
 their officers prescribed by Congress. 
 
 Into what great departments is the government of the United States di • 
 videdl 
 
 Who is the executive officer of government, and what is said of his du- 
 ties f 22* 
 
258 APPENDIX. 
 
 The departments created are those of State, Trea. 
 
 sury, War, Navy, Post-office, and Mint. 
 
 I. Of the Department of State. 
 
 The presiding officer of this department is called 
 Secretary of State. His general duties are to conduct 
 ail correspondence with foreign powers ; to keep the 
 seal of the United States, and affix it to all civil com- 
 missions signed by the President ; to preserve, publish, 
 and distribute the acts and resolutions of Congress ; 
 and to have the supervision of patents and copy- 
 rights, &c. 
 
 The Secretary is assisted in the duties of his office 
 by clerks, messengers, watchmen, &;c. 
 
 II. Of the Treasury Department. 
 
 The object of this department is to manage the mo- 
 neyed concerns of government. The general duties of 
 the Secretary of the Treasury are, to prepare and sub- 
 mit to the President or to Congress plans for the im- 
 provement and management of the public revenue, 
 and for the support of public credit; to superintend 
 the collection and disbursement of the revenue ; and 
 to report to the Senate or House of Representatives, 
 
 What subordinate executive departments have been created 1 
 W^ho if the presiding officer of the department of state, and what are his 
 general duties 1 
 What is the object of the treasury department 1 
 What are the duties of the Secretary of the Treasury 1 
 
APPENDIX. 259 
 
 when required by either, respecting all matters pertain- 
 ing to his office. 
 
 The Secretary is assisted in the business of his office 
 by two comptrollers, five auditors, a treasurer, a regis- 
 ter, and a commissioner of the land office. Each of 
 these officers is charged with specific duties, and has 
 under him a number of inferior officers. 
 
 III. Of the War Department 
 
 At the head of this department is the Secretary of 
 War, who is to perform such duties as shall be intrust- 
 ed to him by the President, agreeably to the Constitu- 
 tion, relative to military commissions, the land forces, 
 and warlike stores of the United States, or to such 
 other matters respecting military affairs as the Presi- 
 dent shall assign to such department ; or relative to 
 the granting of lands to persons entitled thereto for 
 military services rendered to the United States; or 
 relative to Indian affairs. 
 
 The WvTr department is divided into the following 
 subdivisions, all under the general control and superin- 
 tendence of the Secretary : — • 
 
 1. War office. 2. Requisition bureau. 8. Pension 
 bureau. 4. Indian bureau. 5. Bounty land office. 
 6, Office of the general staff. 7. Adjutant-General's 
 office. 8. Engineer's department. 9. Topographical 
 bureau. 10. Ordnance department. 11. Quarter- 
 Master's department. 12. Purchasing department. 
 
 By whom is the Secretary assisted in the business of his office 1 
 Who is at the head of the war department, and what are his duties 1 
 Into what divisions is the war department divided ? 
 
260 APPENDIX. 
 
 13. Pay department. 14. Subsistence department 
 15. Medical department. 
 
 IV. Of the Navy Department, 
 The Secretary of the Navy has a general superin- 
 tendence of the naval establishment, and executes such 
 orders as he shall receive from the President relative 
 to the procurement of naval stores and materials, and 
 the construction, armament, equipment, and employ- 
 ment of vessels of war, as well as all other matters 
 connected with the naval establishment of the United 
 States. 
 
 The Secretary is assisted by eight clerks and two 
 messengers. 
 
 There is also a Board of Navy Commissioners, ap- 
 pointed by the President, consisting of three officers 
 of the navy. The board, under the superintendence 
 of the Secretary, discharges all the ministerial duties 
 of the department, and is assisted by six clerks, a 
 draughtsman, messenger, and superintendent of build- 
 ing. In addition to the above officers, there are at- 
 tached to the department twelve navy agents, seven 
 naval storekeepers, and eight naval constructors. 
 
 V. Of the Post-office Department. 
 The general post-office, established at the seat of 
 government, is placed under the direction of a Post^ 
 
 What are the duties and powers of the Secretary of the Navy 1 
 
 By whom is he assisted 1 
 
 Who compose the Board of Navy Commissioners, and what are their 
 duties 1 
 
 Who is at the head of the post-office department, arid what are his du 
 £!es1 
 
APPENDIX. 261 
 
 master-General. He establishes post-offices and ap- 
 points postmasters on routes established by law. He 
 provides for the carriage of the mail, and pays all ex- 
 penses arising from the conveyance of the mail, the 
 collection of the revenue of the department, and other 
 expenditures. He prosecutes offences against the 
 department, and renders a quarterly account of the 
 receipts and expenditures of the Secretary of the Trea- 
 sury. 
 
 The expenditures of the post-office department are 
 paid from its receipts in postage. Its funds, unlike 
 those of the other departments, do not make a part of 
 the general revenue of the country, but its receipts 
 and expenditures are kept within itself. In this man- 
 ner, as its funds have extended, new mail routes have 
 been established, the mail greatly expedited on the old 
 ones, and their frequency increased. 
 
 The Postmaster-General is assisted by two assistants, 
 an examiner, a register, solicitor, three book-keepers, 
 and sixty-two clerks. 
 
 The business of the office is divided into three divi- 
 sions. 
 
 The first assistant Postmaster- General has the super- 
 intendence of the first division, in which are included 
 the book-keeper's office, solicitor's office, pay office, 
 examiner's office, and register's office. 
 
 The second division is under the direction of the 
 
 What use is made of the fands of the post office department ? 
 By whom is the Postmaster-General assisted 1 
 How is the business of his offiqp divided 1 
 
262 APPENDIX. 
 
 second Assistant Postmaster-General. In this divi 
 sion are the office of appointments and instructions, 
 the dead-letter office, and the office of mail depreda- 
 tions. 
 
 The chief clerk is charged with the duties of the 
 third division. In this division is the office of mail 
 contracts. n 
 
 VI. Of the Mint Department, 
 
 The officers of the mint are a Director,, Chief Coin- 
 er^ Assayer, Engraver, Melter and Hefner, and a 
 Treasurer, and as many clerks and workmen as are 
 necessary. The duty of the Director is to superintend 
 and manage the business, and all the officers and per- 
 sons employed in it. The Assayer assays or tests the 
 quality of all metals which require it, and delivers 
 them to the Chief Coiner. The Chief Coiner coins 
 them in such quantities as the Director requires. The 
 Engraver sinks and prepares the dies for the coin, 
 with the proper devices and inscriptions. The Melter 
 and Refiner takes charge of all copper and silver or 
 gold bullion delivered out by the Treasurer after assay- 
 ing, and reduces. the same into bars and ingots for the 
 rolhng mills, and then delivers them to the Coiner or 
 Treasurer, as the Director deems expedient. The 
 Treasurer receives and gives receipts for all metals 
 which may be lawfully brought to the mint to be 
 
 What are the officers of the mint department, and what are their several 
 duties 1 
 
APPENDIX. 263 
 
 coined; and, for ascertaining their quality, he delivers 
 from every parcel so received a number of grains to 
 the Assayer, who assays such of them as require it. 
 
 SECTION II. 
 
 OF THE LEGISLATIVE DEPARTMENT. 
 
 We have seen that all legislative power granted by 
 the Constitution of the United States is vested in a 
 Congress, which consists of a Senate and House of 
 Representatives. 
 
 The powers and duties of Senators and Representa- 
 tives have been considered in a former part of this 
 work. The organization of these bodies respects, 1st, 
 their officers ; 2d, their committees ; and 3d, their rules. 
 
 I. Their officers are the presiding officer, (in the 
 House the Speaker, and in the Senate the Vice-Presi- 
 dent,) the Secretary of the Senate and Clerk of the 
 House of Representatives, their principal clerks and 
 engrossing clerks, the Librarian, Sergeant-at-arms, the 
 Door-keepers and Assistant Door-keepers of both 
 houses, and the Chaplains. The general duties of the 
 officers may be known by their titles. 
 
 II. The chief Hbusiness of legislative bodies is done 
 by their committees, to whom all matters requiring in- 
 vestigation are first referred, and by whom a report is 
 
 In what is the legislative power of the general government vested ? 
 
 What does the organization of Congress Jiespect 1 
 
 What are the officers of the two houses ? 
 
 How la the chief business of legislative bodies done 
 
264 APPENDIX. 
 
 made upon the subject, which report is the topic of 
 consideration with the house. 
 
 The principal committees in either house are, the 
 committees on foreign relations, on commerce, on the 
 judiciary, on military affairs, &;c. These are called 
 standing committees, because committees on the same 
 subject are appointed at every session. Besides these, 
 there are select committees appointed for specific objects, 
 and only for the particular occasion. Also, the whole 
 house, at times, resolves itself into a committee called a 
 committee of the whole. The object of this is to obtain 
 greater freedom of debate. When in committee of the 
 whole, a chairman is appointed in place of the Speak- 
 er, and the regular rules of the house are set aside, and 
 simply order is preserved, as in common deliberative 
 assemblies. When the committee of the whole have 
 finished their discussions, the Speaker resumes the 
 chair, and the members may then vote upon the sub- 
 ject. 
 
 Committees in the House are appointed by the 
 Speaker ; in the Senate, by ballot. In the House they 
 consist of 5et)e?i members each ; in the Senate, of Jive. 
 
 in. The rules of business, both for the Senate and 
 the House, are substantially the same. 
 
 At the beginning of a session the order of business is 
 as follows : After Congress is organized, the President's 
 
 What are the principal committees in ekch house ? 
 What is the " committee of the whole," its object, &c. 1 
 How are committees appointed in each house, and of how many members 
 do they consist 1 
 
 What is the order of business at the beginning of a session 1 
 
APPENDIX. a35 
 
 message is received and read, with the accompanying 
 documents ; then such parts as relate to foreign af- 
 fairs, commerce, the judiciary, the military, &c., are 
 referred to their appropriate committees, who examine 
 the subjects committed to "them, and report such bills 
 as they think necessary and proper. On these bills 
 Congress decide, by accepting or rejecting them. 
 
 The order of daily business is as follows : 1st. The 
 journal of the preceding day is read ; 2d. Petitions are 
 presented and disposed of; 3d. Reports from standing 
 and select committees are called for and disposed of. 
 To these subjects, and that of resolutions, only one 
 hour in a day is allowed. Next, the order of the day 
 is called for — which consists of unfinished business in 
 regular order, and subjects particularly set apart for 
 that day. 
 
 The principal motions, and the order of their prece- 
 dence, are as follows : — 1st. The motion to adjourn ; 
 2d. To lay the subject on the table ; 3d. For the pre- 
 vious question ; 4th. To postpone to a day certain ; 
 5th. To commit or amend ; and, 6th. To postpone 
 indefinitely. 
 
 SECTION III. 
 
 OF THE JUDICIAL DEPARTMENT. 
 
 The judicial power of the United States has been 
 previously examined. We shall here briefly enumerate 
 the different Courts, and their officers. 
 
 What is the order of daily business ? 
 
 What are the principal motions, and what is their order of precedence t 
 
 23 
 
■» 
 
 266 APPENDIX. 
 
 The Supreme Court of the United States consists of 
 one Chief Justice and eight Associate Justices. It hold© 
 annually, at the city of Washington, one session which 
 commences on the second Monday in January, 
 
 The Circuit Courts are composed of a Justice of the 
 Supreme Court- and the District Judge of the district 
 in which the Circuit Court is held. There are nine 
 Circuit Districts, and in each two courts are annually 
 holden. 
 
 The United States are also divided into Judicial Dis- 
 tricts, in each of which there is a District Court, con- 
 sisting of one judge, called a District Judge. There 
 are now upwards of thirty District Courts. 
 
 Of the OJicers of the Courts, 
 
 The officers of the United States Courts are Attor- 
 neys and Counsellors, Clerks, Marshals, and Reporters. 
 
 The Attorneys and Counsellors are persons learned 
 in the law, who are employed by the litigant parties to 
 conduct suits in the above courts. 
 
 It is the duty of the Cleric of each court to enter and 
 record, in a book kept for the purpose, all the orders, 
 decrees, judgments, and proceedings of the court. 
 
 The Marshal is the ministerial officer of the court, 
 
 Of what is the Supreme Court composed 1 The Circuit Courts 1 
 
 How many Circuit Districts are there ? 
 
 Of what are the District Courts composed 1 
 
 What are the officers of the United States Courts ? 
 
 What are Attorneys and Counsellors 1 
 
 What are the duties of the Clerk of each Court 1 
 
 What is the Marshal 1 
 
a:ppbndix. 267 
 
 and executes all lawful precepts directed to him. He 
 has power to command all necessary assistance in the 
 execution of his duty. Instead of a Marshal, the min- 
 isterial officer of the State Courts is the Sheriff of the 
 county. 
 
 Reporters are persons appointed by the courts to re- 
 port and publish their judicial decisions and opinions. 
 
 CHAPTER II. 
 OF STATE, COUNTY, AND TOWN OFFICERS. 
 
 The Constitutions of the States are similar to each 
 other, and, in form, nearly the same with the Constitu- 
 tion of the United States. We shall therefore consider 
 the form and manner of government, and the powers 
 and duties of the officers in one State only. For this 
 purpose we have selected the State o^ New-Yorh. 
 
 State governments, like the national, are divided into 
 three great departments, — Legislative, Executive, and 
 Judicial. 
 
 Who supply the places of Marshals in the State Courts ? 
 W^hat are Reporters ? 
 
 Do the Constitutions of the States differ materially from each other 
 How are the State governments divided 1 
 
268 APPENDlSa 
 
 SECTION I. 
 
 OF STATE OFFICERS. 
 
 I. Of Legislative Officers. 
 
 The legislative officers are tbirty-two Senators aiid 
 one hundred and twenty-eight Members of Assembly. 
 
 Senators are chosen by the people, and by districts ; 
 one Senator being chosen annually in each Senate 
 District. Their term of office is four years. 
 
 Members of Assembly are chosen annually, by the 
 people. 
 
 The powers and duties of Senators and Members of 
 Assembly vary but little from those of Senators and 
 Representatives in Congress ; with the exception that 
 the latter have for their objects national concerns, the 
 former municipal. In the mode of legislation there ia 
 very little difference. 
 
 II. Of Executive Officers. 
 
 The executive officers are a Governor and Lieuten- 
 ant-Governor, Secretaryof State, Comptroller, Treasur- 
 er, Attorney-Genera], Surveyor-General, State Printer, 
 Private Secretary for the Governor, and a Door-keeper 
 of the executive chamber. 
 
 What are the legislative officers of the State of New- fork ? 
 How are the Senators chosen, and whaj, their term of office 1 
 Members of Assembly 1 
 
 Kow do the powers and duties of the members of the State Legislature dif- 
 fer from those of the National Legislature 1 
 Wbat are the executive officers of the State ? 
 
APPENDIX. 269 
 
 Of the Governor, 
 
 The executive power of the State is vested in a Gov^ 
 ernor, who is chosen by the people, and holds his office 
 for two years. 
 
 To qualify a person for the office of Governor, he 
 must be a native citizen of the United States, a free- 
 holder, and have attained the age of thirty years, and 
 have been five years a resident within the State. 
 
 He is commander-in-chief of the militia and navy 
 of the State ; he may convene the legislature (or Senate 
 only) on important occasions; he shall communicate by 
 message to the legislature, at every session, the condi- 
 tion of the State, and recommend to them such matters 
 as he shall deem expedient ; transact all necessary 
 business with the officers of government ; expedite all 
 such measures as shall be resolved upon by the legisla- 
 ture, and take care that the laws be faithfully executed. 
 
 The Governor has power to grant reprieves and 
 pardons after conviction for all offences, except in 
 cases of treason and impeachment. 
 
 Of the Lieutenant-Governor. 
 
 The Lieutenant-Governor is elected by the people, at 
 the same time, and for the same term of service, as the 
 Governor. He is President of the Senate ; and, in 
 case of vacancy in the office of Governor, the powers 
 
 In whom is the executive power of the State vested ? 
 
 What are the qualifications for Governor 1 His term of office 1 What are 
 his powers and duties ? 
 
 How is the Lieutenant-Governor elected — his term of olfice — powers and 
 duties? 23* 
 
270 APPENDIX. 
 
 and duties of the Governor devolve upon the Lieutes 
 ant-Governor. In case of the removal of the lattei 
 the President of the Senate acts as Governor. 
 
 Of the Secretary of State. 
 
 The Secretary of State is appointed by the legis- 
 lature, and holds his office three years, unless sooner 
 removed by a concurrent resolution of the Senate and 
 Assembly. 
 
 It is the duty of the Secretary to keep the public 
 deeds, papers, records, &c., of the State, except mort- 
 gages belonging to the people of the State ; to attend 
 at every session of the legislature, for the purpose of 
 receiving bills which shall have become laws, and to 
 distributethe printed laws and journals of each session 
 to certain persons entitled by law to receive them ; to 
 record such statements of county elections as he shall 
 receive from the county clerks, and notify a meeting 
 of the State canvassers, for the purpose of examining 
 the returns of elections ; to record the certificates 
 of the board of canvassers, and deliver copies of such 
 to each person thereby declared to be elected, and a 
 like copy to the Governor, and cause the same to be 
 published in the public papers. 
 
 He is, by right of office, one of the commissioners 
 of the land office, one of the State canvassers, one of 
 the commissioners of the canal fund, a member of the 
 
 How is the Secretary of State appointed, and what is his term of office 1 
 Waal s,z( ais powers and dutiyb? 
 
APPENDIX. 271 
 
 canal board, one of the trustees of the State library, 
 superintendent of common schools, and State sealer of 
 weights and measures. 
 
 Of the Comptroller, 
 
 The Comptroller is appointed in the same manner 
 as the Secretary of State, and holds his office for a 
 like term, and is removable in the same manner. 
 
 It is the duty of the Comptroller to superintend and 
 manage the revenues of the State; to exhibit to the 
 legislature, at its annual meeting, a statement of the 
 funds, revenues, and expenditures of the State ; to 
 suggest plans for the improvement and management 
 of the public revenues ; to keep and state all accounts 
 in which the State is interested, and superintend the 
 collection of all moneys due to the state ; to examine 
 the accounts of the debts and credits in the bank books 
 kept by the Treasurer ; to draw warrants on the 
 Treasurer for the payment of all moneys directed by 
 law to be paid out of the treasury. 
 
 He has power, also, to vote in behalf of the State at 
 all elections of directors of banks, corporations, or 
 joint-stock companies, at which the State is entitled 
 to vote ; and all papers relating to the canals are kept 
 in his office. 
 
 He is, by right of office, one of the commissioners 
 of the land office, one of the commissioners of the 
 
 How is the comptroller appointed ? His term of ofSce 1 
 What are his powers and duties 1 ^ 
 
272 APPENDIX. 
 
 canal fund, a member of the canal board, a trustee of 
 the State library, and one of the State canvassers. 
 
 Of the Treasurer, 
 
 The Treasurer is appointed annually by the legis- 
 lature. Within ten days after his election, he gives 
 a bond to the State, in the sum of fifty thousand dol- 
 lars, that he will faithfully execute the duties of his 
 office. 
 
 He receives all moneys paid into the trea^ry, and 
 pays all warrants drawn by the Comptroller on the 
 treasury ; and no moneys are paid out of the treasury 
 except on a warrant of the Comptroller. He makes 
 an annual report to the legislature of the business of 
 his office, and his accounts are annually examined by 
 a committee appointed by the legislature for that 
 purpose. 
 
 Of the Attarney-General. 
 
 The Attorney-General is appointed by the legislature, 
 and holds his office for three years. 
 
 It is his duty to prosecute and defend all suits in 
 which the State is interested, and, at the request of 
 the Governor, Secretary of State, Comptroller, Treas- 
 
 How is the Treasurer appointed 1 
 
 What is his term of office 1 
 
 What are his duties 1 
 
 How is the Attorney-General appointed 1 
 
 What is his term of office "? 
 
 What are his powers and duties ? 
 
APPENDIX. 273 
 
 tirer, or Siirveyor-GeDera], to prosecute such persons 
 as are charged by either of those officers with the 
 commission of an indictable offence, in violation of 
 the laws which such officer is required to execute, or 
 in relation to matters connected with his department. 
 
 All moneys received by the Attorney-General for 
 debts due or penalties forfeited to the State, are paid 
 by him into the treasury. 
 
 He cannot act as attorney in any private suit. He 
 keeps a register of the business of his office, and delivers 
 the same into the hands of his successor. 
 
 He is, by right of office, one of the commissioners 
 of the land office, of the canal fund, and canal board, 
 and one of the trustees of the State library. 
 
 Of the Surveyor 'General. 
 
 The Surveyor -Generally appointed by the legislature, 
 and holds his office for three years. 
 
 It is his duty to superintend surveys and sales of 
 lands belonging to the State ; to retain in his office a 
 map of the State, and to delineate thereon the bounds 
 of all towns or counties erected or altered by the legis- 
 lature ; and whenever such bounds shall be so described 
 that they cannot be delineated by the Surveyor-General 
 on the map of the State, he shall direct the Supervisor 
 
 How is the Surveyor-General appointed I 
 
 Wii at is his term of office ? 
 
 What are his duties 1 
 
 To whom does he account for moneys received 1 
 
274 APPENDIX. 
 
 of such town to cause such survey to be made, and to 
 transmit the same to the Surveyor-General's office. 
 
 Whenever a dispute shall arise between the officers 
 of two or more towns respecting the bounds of the 
 same, the Surveyor-General, if necessary, shall direct a 
 survey to be made, and shall determine such dispute. 
 
 He accounts to the Comptroller for all moneys re- 
 ceived by him in behalf of the State, or from the 
 treasury. 
 
 He is, by right of office, one of the commissioners 
 of the land office, of the canal fund, the canal board, 
 and is one of the State canvassers. 
 
 Of the State Printer. 
 
 The State Printer is appointed by the legislature, 
 and holds his office during their pleasure. 
 
 It is his duty to print, during each session of the 
 legislature, a specified number of copies of the journals 
 of each House ; a portion of which is to be delivered 
 to the clerks of the Senate and Assembly, for the use 
 of their respective Houses, and the remainder to the 
 Secretary of State, as soon as may be after the close 
 of each session. 
 
 He also prints such number of copies of all docu- 
 ments as either House may order. 
 
 He prints a State paper, as often, at least, as semi- 
 
 How is the State Printer appointed ' 
 How long does he hold his office 1 
 What are his duties 1 
 
APPENDIX. f75 
 
 weekly, and publishes in such paper copies of laws, 
 when directed by the Secretary of State, and also such 
 notices as are required by law. 
 
 He also prints, and delivers bound to the Secretary, 
 as many volumes of the laws, documents, &;c., of each 
 session, as the Secretary may direct. 
 
 Of the (xovernor^s Private Secretary, and the Door- 
 keeper of the Executive Chamber, 
 
 They are appointed by the Governor, and hold their 
 respective offices during his pleasure. Their duties 
 are fev/, and are well enough expressed by their titles. 
 
 Besides the executive officers before mentioned, there 
 is another numerous class, calledi administrative officers. 
 We will mention a few only of the principal ones. 
 
 There are four Canal Commissioners, appointed by 
 the legislature, who constitute a canal board, and have 
 the care and superintendence of the State canals. 
 
 There are two Canal Appraisers, appointed by the 
 Governor and Senate, who appraise the damages sus- 
 tained by individuals whose lands and property have 
 been appropriated to the use of canals. 
 
 Superintendents of Canal Repairs are appointed by- 
 
 How are the GoA^smor's Private Secretary and Door-keeper of the 
 Jive chamber appoiuted 1 
 
 What other class of officers is there 1 
 Mention the principal ones, and their dutiea 
 
276» APPENDIX. 
 
 the canal board, who superintend the repairs on the 
 sections over which they are appointed. 
 ' Collectors of Canal Tolls are also appointed by the 
 canal board. 
 
 There is a Mayor in each city of the State, appoint- 
 ed annually by the common councils of the respective 
 cities, (except in the city of New-York, where the 
 Mayor is now chosen by the electors^) 
 
 There are three Banh Commissioners appointed to 
 examine the affairs of such banks as are made subject 
 to their power, and to ascertain their actual condition, 
 and their ability to fulfil their engagements. 
 
 III. Of Judicial Officers. 
 
 We shall simply enumerate the different courts of 
 the State, and a few of the powers and duties of their 
 officers. 
 
 1st. The President of the Senate, the Senators, the 
 Chancellor, and the Justices of the Supreme Court of 
 the State, constitute a Court for the Trial of Impeach- 
 ments and the Correction of Errors. The mode of 
 impeachment and trial by this court is similar to that 
 in the national legislature. This court is also the ul- 
 timate tribunal for the correction of errors that happen 
 in other courts of the State. 
 
 2d. There is a Court of Chancery, held by the Chan- 
 
 Who compose the Court for the Tiial of Impeachments and the Correction 
 of Errors 1 
 What is said of the mode of impeachment ? 
 By whom is the Court of Chancery- heldt 
 
APPENDIX. 277 
 
 cellor, the jurisdiction of which is very extensive, and 
 difficult to be defined. It takes cognizance of various 
 cases o? fraud, trust, and accident; the specific per- 
 formance of agreements ; the settlement of wills, de- 
 vises, legacies, &c. ; and of many other cases in which 
 courts of law afford no remedy. Chancery powers, 
 in certain cases, are given to every Circuit Judge with- 
 in the limits of his circuit. 
 
 There is a Supreme Court, the powers of which are 
 vested in the Chief Justice and two Associate Justices, 
 any two of whom may hold the court. The jurisdic- 
 tion of this court is very expensive. It has power to 
 command magistrates and all civil officers to do their 
 duty ; it reviews and corrects the decisions of the in- 
 ferior courts, and it also has jurisdiction of civil and 
 criminal cases. The court holds four terms in each 
 year : one in the city of New- York, two in Albany, 
 and one in Utica. 
 
 4th. There are eight Circuit Courts in the State ; 
 there being one Circuit Court in each senatorial dis- 
 trict. In each district there is a Circuit Judge, who 
 appoints the times and places of holding circuit courts 
 within his district. These courts try issues of fact 
 joined in cases brought in the Supreme Court, o\ 
 other issues properly sent to the circuit to be tried by 
 
 Of what cases doss it take cognizance ? 
 
 Of wliom is the Supreme Court composed 1 
 
 What are some of its powers 1 
 
 How many terms does it hold annually— and where 1 
 
 How many Circuit Courts are there in the State 1 
 
 What cases are tried by tliis court — and how tried 1 
 
 24 
 
278 APPENDIX. 
 
 jury. The trials of causes in these courts are had 
 by jury. 
 
 5th. There are two Courts of Oyer and Terminer 
 held in each year in every county in the State. In 
 most of the counties they are held by a Circuit Judge 
 or a Justice of the Supreme Court, together with at 
 least two Judges of the county courts of the county. 
 This court has power to enquire of, by the grand jury, 
 and try all crimes and misdemeanors committed or 
 triable in the county where it is held, and to deliver 
 the jail of the countj^, according to law, of ail prison- 
 ers therein. » 
 
 6 th. Courts of Common Pleas are held in each 
 county, except in New-York, by the Judges of the 
 county courts, at such times as are specified by sta- 
 tute. The general powers of these courts are, to try 
 all cases and matters at common law of every kind, 
 with some few exceptions and limitations specified by 
 statute. 
 
 7th. Courts of General Sessions ms-j he hoi den by 
 any three Judges of the county courts in every county 
 of the State, except in New- York. These courts have 
 power to try and determine all crimes and misdemean- 
 ors, except those which are punishable with death or 
 imprisonment in the state prison for life. 
 
 8th. Courts of Special Sessions are held in the seve- 
 
 Where and by whom are Courts of Common Pleas held ? 
 
 What are the general powers of these courts 1 
 
 ^Tiere and by whom are Courts of General Sessions held "? 
 
 What are their powers ? 
 
 Where and by whom aro Courts of Special Sessions held 1 
 
APPE-S'DIX. 279 
 
 ral counties in the State, except New-York, by any 
 three Justices of the county, or by two Justices and a 
 Judge of the county courts. These courts are held at 
 such times as offences properly triable by them are 
 complained of before them. They have jurisdiction 
 of certain offences enumerated by law, the chief of 
 which are petit larcency, (or theft,) assault and battery, 
 charges for cruelly treating animals, for wilful tres- 
 passes, dec, and a few other minor offences. The 
 accused may demand and have a trial by jury, in all 
 cases, when tried by the Court of Special Sessions ; or, 
 if he choose, he may be biound over to be tried by the 
 higher courts of the county. 
 
 9th. Every Justice of the Peace may, in the town 
 for which he is elected, hold a court for the trial of 
 certain civil actions specified by law. But a Justice 
 can in no contested suit render judgment for a sum ex- 
 ceeding fifty dollars and costs of suit ; but, upon con- 
 fession of a party, he may render judgment to the 
 amount of two hundred and fifty dollars. 
 
 SECTION II. 
 
 OF COUNTY OFFICERS. 
 
 The principal civil officers in the counties of this 
 State, are the following : Sheriff, Coroner, District At- 
 torney, Judges of the County Courts, County Clerk, 
 
 Over what offences have they jurisdiction 1 
 
 What is said of courts held by Justices of the Peace ■? 
 
 What is the extent of their jurisdiction ? 
 
 What are the principal civil officers in each county of the State 1 
 
280 APPENDIX. 
 
 Surrogate; Superintendents of the Poor, County Trea- ' 
 surer, Board of Supervisors, Commissioners of Loans, 
 County Sealer, and Inspector of Commodities. 
 
 Of the Sheriff. 
 
 There is one Sheriff in each county in the State, 
 who is chosen hy the electors of his county once in 
 every three years. Before he enters upon the duties 
 of his office, he is required to execute a bond to the 
 people of the State for the faithful performance of his 
 duties. 
 
 He is the principal consei^ator of the public peace 
 — the ministerial officer of the courts of his county ; 
 he executes all writs and legal executions directed to 
 him from the courts of record of the State; he gives 
 notice of elections held in his county ; he has the cus- 
 tody of the jails and prisons in the county, and the 
 prisoners in the same, and appoints keepers of such 
 jails and prisons. He may appoint an under-sheriff, 
 and so many deputies as he thinks proper. 
 
 In case of a vacancy in the offices of Sheriff and 
 under-sheriff, the first Judge of the county designates 
 one of the Coroners to fill the office of Sheriff. 
 
 Of Coroners. 
 
 There are four Coroners for each county in the 
 State, who are chosen by the people, and who hold their 
 
 How is the Sheriff chosen — and what is his term of office 1 
 What are his powers and duties 7 
 
 How many Coroners are there in each county — how chosen — and what 
 tlieir term of office "? 
 
APPENDIX. 281 
 
 office for three years. But in the city of New-York 
 there is only one Coroner. 
 
 The principal duty of Coroners is to investigate, by 
 jury, cases of sudden death or severe injury. The jury, 
 after an examination of the facts and circumstances 
 of the case, deliver to the Coroner their inquisition in 
 writing, in which they certify how, where, and when, 
 the person dead or wounded became so ; who such per- 
 son was, and who was guilty of the act ; together with 
 the circumstances attending the transaction. 
 
 If either murder, manslaughter, or assault and bat- 
 tery has been committed, process is issued for the ap- 
 prehension of the person charged with the'offence, and 
 the inquisition found by the jury is returned to the 
 next criminal court of the county. 
 
 Of the District Attorney, 
 
 There is a District Attorney for each county in the 
 State, who is appointed by the Judges of the county^ 
 and holds his office for three years. His principal 
 duties are, to conduct all prosecutions at the Courts of 
 Oyer and Terminer and General Sessions. He files 
 in the office of the County Treasurer an account of all 
 moneys received by him by virtue of his office, and 
 pays the same to the Treasurer. 
 
 What are their powers and duties 1 
 How is the District Attorney appointed/? 
 What are his duties 1 
 
 24* 
 
282 ' APPENDIX. 
 
 Of the Judges of the County Courts, 
 
 There are a Fi7'st Judge and four side Judges of the 
 county courts in each county in the State, (except 
 New-York.) who are appointed by the Governor, with 
 the consent of the Senate, and hold their offices during 
 five years. They hold Courts of Common Pleas and 
 General Sessions, and assist in holding Courts of Oyer 
 and Terminer in their several counties. Their various 
 duties are too numerous to be detailed here. 
 
 Of the County Clerk, 
 
 There is one Cleric for each county, who is chosen 
 by the electors, and holds his office for three years. It 
 is the duty of the County Clerk to keep and arrange 
 all books, records, deeds, parchments, maps, &c., that 
 are now or may be deposited in his office, and to pro- 
 vide books for the recording of deeds, mortgages, or 
 other conveyances acknowledged or proved according 
 to law; to inform the Governor of all persons appoint- 
 ed to offices in the county, and also of all vacancies 
 in civil offices, and to report to the Comptroller the 
 names of all the religious societies in the county. 
 
 How many judges of the county courts are there in each county ? 
 
 How appointed—and what their term of office 1 
 
 What courts do they hold t 
 
 How is the County Clerk chosen— and what is his term of ofiicel 
 
 W5iat are his duties 1 
 
APPENDIX. 283 
 
 Of the Surrogate, 
 
 There is one Surrogate for each county, appointed 
 by the Governor and Senate, who holds his office for 
 "four years. He gives a bond to the people of the 
 State for the faithful performance of the duties of his 
 office, approved by the Clerk of the county. 
 
 The Surrogate has power to take the proof of wills 
 of real and personal property ; to grant letters testa- 
 mentary, and of administration ; to direct and control 
 the conduct, and to settle the accounts of executors 
 and administrators ; to enforce the payment of debts 
 and legacies, and the distribution of the estate of in- 
 testates ; to order the sale and disposition of the real 
 estate of deceased persons ; to appoint guardians for 
 minors ; to remove them, and to direct and Control 
 their conduct, and settle their accounts ; and to cause 
 the admeasurement of dower to widows. 
 
 Of the Superintendence of the Poor 
 
 They are appointed by the Board of Supervisors of 
 their respective counties, (in number not less than 
 three, nor more than five,) and hold their office for 
 one year. They have the general superintendence 
 and care of the county poor ; but the regulations made 
 
 By whom is the Surrogate appointed— and what is his term of office 1 
 What are his powers and duties ? 
 
 How many Superintendents of the Poor are there in each county? How 
 appointed — and what their term of office 1 
 What are their powers and duties 1 
 
284 APPENDIX. 
 
 by them for the relief and support of the poor, require 
 the sanction of a majority of the judges of the county 
 courts. 
 
 They draw on the County Treasurer for all neces- 
 sary expenses incurred in the discharge of their duties, 
 and account for the same to the Board of Supervisors. 
 They make an annual report to the Secretary of State. 
 
 Of the County Treasurer. 
 
 The County Treasurer is appointed by the Board 
 of Supervisors, and holds his otiice during their plea- 
 sure. He gives to them such bond as they shall 
 direct, for the faithful execution of the duties of his 
 office. He receives all moneys belonging to the 
 county, and applies the same according to law; keeps 
 an account of his receipts and expenditures ; trans- 
 mits to the Comptroller a statement of all moneys 
 received by him for penalties, and pays the amount to 
 the Treasurer of the State, deducting his compensa- 
 tion therefrom ; and exhibits to the Board of Super- 
 visors his books and accounts, to be audited arid allow- 
 ed by them. 
 
 Of the Board of Supervsiors. 
 
 One Supervisor is chosen annually in each town, by 
 the electors thereof. 
 
 Bywhom is the County Treasurer appointed — and what his term of office 1 
 What are his duties ? 
 Who compose the Board of Supervisors 1 
 
APPENDIX. 285 
 
 The Supervisors of the several towns meet annually 
 in their respective counties, and at their annual or 
 adjourned meetings have power to make such orders 
 concerning the corporate property of the county, as 
 they may deem expedient ; to settle all accounts charge- 
 able against the county, and direct the raising of such 
 sums as may be necessary to defray the same ; to 
 cause the court house and jail of the county to be re- 
 paired at the expense of the county ; and to perform 
 all other duties that may be enjoined on them by any 
 law of the State. 
 
 The Board, except in some special cases where 
 counties are excepted, also audits accounts of town 
 officers and other persons. 
 
 Of Commissioners of Loans. 
 
 Commissioners of Loans are appointed under " An 
 act authorizing the loaning of moneys belonging to 
 the State," by the Governor, with the consent of the 
 State, and hold their office for two years. They give 
 bonds, with sufficient security, to the people of the 
 State, for the faithful performance of the duties of 
 their office. 
 
 They receive and keep account of all moneys pay- 
 able upon mortgages under their charge ; exhibit to 
 the Board of Supervisors of their respective counties 
 
 What are the powers and duties of the Board 7 
 
 By whom are the Commissioners of Loans appointed 1 What are their 
 duties 1 
 
286 
 
 APPENDIX. 
 
 all mortgages taken by them or their predecessors in 
 office, for moneys loaned pursuant to law, together 
 with their books, minutes, &c. ; and keep their books 
 of mortgages in the Clerk's office of the respective 
 counties for which they were appointed. 
 
 Of the County Sealer. 
 
 There -is a County Sealer for each county in the 
 State, who is appointed by the Board of Supervisors, 
 and holds his office during their pleasure. He re- 
 ceives from the State Sealer, and keeps in his office, 
 copies of the original standards of weights and meas- 
 ures established by law. He also furnishes the several 
 Town Sealers in the county copies of these original 
 standards. 
 
 All things sold or agreed for, are, in law, construed 
 to be made in reference to these standards. 
 
 Of Inspectors of Commodities. 
 
 Inspectors of Commodities are- appointed by the 
 Governor and Senate, wherever they are thought 
 necessary, and hold their offices during two years. 
 Their duty is, to inspect all articles that are by law 
 subject to their inspection, and to decide if they are 
 of the standard quality. 
 
 By whom is the County Sealer appointed ? What are his duties 1 
 
 By whom aro Inspectors of Commodities appointed— and what are theif 
 
 duties 1 
 
APPE>^DIX. 287 
 
 Thus, the purchaser is insured through the Inspector 
 that the article he buys is sound and merchantable. 
 
 SECTION II. 
 
 OF TOWN OFFICERS. 
 
 All town officers (except Justices of the Peace) are 
 chosen annually. They consist of a supervisor, a 
 town clerk, assessors, justices of the peace, a collector, 
 overseers of the poor, commissioners of highways, com- 
 missioners of common schools, inspectors of common 
 schools, constables, a town sealer, overseers of high- 
 ways, pound-masters, fence-viewers, commissioners of 
 excise, board of auditors of town accounts, and com- 
 missioners of deeds. 
 
 Of the Supervisor. 
 
 It is the duty of the Supervisor of each town to 
 receive and pay over all moneys raised therein for 
 defraying town charges, except those raised for the 
 support of highways and bridges, of common schools, 
 and of the poor ; to prosecute for all penalties of fifty 
 dollars, or under, given by law to such town for its 
 use, and for which no other officer is specially directed 
 to prosecute ; to keep an account of the receipt and 
 expenditure of all moneys which shall come into his 
 hands by virtue of his office ; to account with the 
 
 What are the Tov/n Officers of each town ? How are they chosen 
 
288 APPENDIX. 
 
 Justices of the Peace and Town Clerk for the disburse- 
 ment of all moneys received by him ; to attend all 
 annual and adjourned meetings of the Board of Super- 
 visors of the county ; to lay before them all accounts 
 that may be presented to him against the town ; and 
 to cause a survey of the town to be made when required 
 by the Surveyor-General of the State. 
 
 He is one of the inspectors of elections in the town, 
 and is chairman of the board. 
 
 Of the Town Clerk, 
 
 It is the duty of the Town Clerk to keep the records, 
 books, and papers of the town ; to record the minutes 
 of the proceedings of town meetings ; to deliver to the 
 Supervisor copies of all entries of votes for raising 
 money ; and to return to the County Clerk the names 
 of Constables elected in the town. 
 
 Of Assessors, 
 
 The number of Assesso7's in each town is not less 
 than three, nor more than five. It is their duty to 
 estimate the value of all real and personal property 
 owned in the town, in order to a just apportionment, 
 among the citizens, of the tax to which the town may 
 be subjected. 
 
 What are the duties of the Supervisor 1 
 
 What are the duties of the Town Clerk ? 
 
 What is the number of Assessors in each town— and what are their 
 
 duties? 
 
APPENDIX. 289 
 
 Of Justices of the Peace, 
 
 One Justice of the Peace is chosen annually in each 
 town, and holds his office during four years. They hold 
 courts for the trial of certain civil actions ; they pre- 
 side at and preserve order at town meetings ; they are 
 authorized to cause every person charged with the 
 commission of a crime, to be brought before them for 
 examination ; they have power to administer any 
 oath required by law to be taken or administered ; 
 and they also impose fines for certain offences describ- 
 ed by statute. * 
 
 Of the Collector, 
 
 There is one Collector for each town. His princi- 
 pal duty is to collect the taxes according to such tax 
 list and warrant as the Board of Supervisors shall de- 
 liver to him and to deliver to the County Treasurer a 
 list of uncollected taxes. 
 
 Of Overseers of the Poor, 
 
 There are two for each town. They have the su- 
 perintendence of the poor of the town, and their duties 
 are defined by statute. In some counties, the poor are 
 supported by a county tax ; in others, each town sup- 
 ports its own poor. 
 
 What are the duties of Justices of the Peace 1 
 What are the duties of the Collector t 
 Of Overseers of the Poor ? Their number 1 
 25 
 
290 APPENDIX. 
 
 Of Commissioners of Highways. 
 
 There are three for each town. It is their duty to 
 have the care of the highways and bridges in their re- 
 spective towns ; to regulate the roads, and alter such 
 as they may deem inconvenient ; to divide the town 
 into road districts ; to lay out such new roads, and 
 discontinue such old roads, as shall appear to them, on 
 the oath of twelve freeholders, to be expedient ; to de- 
 liver to the Supervisor a statement of the improvements 
 necessary on roads and bridges, together with the 
 probable estimate thereof; and to cause milestones to 
 be erected on the post-roads, and such other public 
 roads as they may think proper. 
 
 Of Commissioners of Common Schools, 
 
 There are three for each town. They are inspectors 
 of common schools— they divide the town into school 
 districts— they receive and apportion all moneys for 
 the use of schools in the town— and report annually to 
 the county clerk./ 
 
 Of Inspectors of Common Schools, 
 
 There are three for each town. It is their duty to 
 examine persons offering themselves as candidates for 
 common-school-teachers of their town, and, if they are 
 
 Of Commissioners of Highways "? Their number 1 
 What is the number and what are the duties of Commissioners of Common 
 Schools'? 
 Of Inspectors of Common Schools, and their number 1 
 
APPENDIX. 291 
 
 duly qualified, to give them a certificate to that efiect. 
 The Inspectors are also required to visit and examine, 
 at least once a year, all the common schools of their 
 town. 
 
 Of Constables, 
 
 They cannot exceed five for each town, except in 
 certain cases provided by statute. They are conser- 
 vators of the peace — the ministerial officers of Jus- 
 tices Courts, &c., and their duties, although numerous, 
 are similar to those of the Sheriff of the county. 
 
 Of the Town Sealer. 
 
 There is one for each town. He receives from the 
 County Sealer copies of the original standards of 
 weights and measures, and these are compared, once in 
 tl.ree years, with the copies deposited in the office of 
 tiic County Sealer. 
 
 The Town Sealer compares all weights and measures 
 brought to him for that purpose, with the copies of the 
 standards in his possession ; and when these are made 
 to conform to the standard, he seals and marks them, 
 for which he is entitled to certain fees, allowed by law. 
 
 Of Overseers of Highways. 
 
 Their number is equal to the number of road districts 
 in each town. It is their duty to repair and keep in 
 
 Of Constables, and their number 1 
 
 What are the duties of the Town Sealer 1 
 
 Of Overseers of Highways— and their number 1 
 
292 APPENDIX. 
 
 order the highways within their respective districts— 
 to warn all persons assessed to work on the highways, 
 to come and work thereon— and to execute all lawful 
 orders of the Commissioners of Highways. 
 
 Of Pound-Masters e 
 
 So many of these are chosen as the electors may de- 
 terminej and in many towns they are wholly discon- 
 tinued. Where they are chosen — -beasts doing dam- 
 age, or running at liberty contrary to law, may be de- 
 livered to them, and, unless sooner discharged, kept six 
 days, and then sold to pay the damages, &;c. ; and the 
 surplus (if any) is paid to the owner of the beasts. But 
 if no owner appear within one year, the surplus is paid 
 to the Overseers of the Poor, 
 
 Of Fence-Viewers* 
 
 The Assessors and Commissioners of Highways of 
 each town are, by right of their o^cq, fence-viewers. 
 
 When disputes arise between two or more owners of 
 adjoining lands, concerning the just proportion of divi- 
 sion fences to be made and maintained by them, any 
 two or more Fence-Viewers may be chosen by the par- 
 ties to decide the dispute ; and their decision is final. 
 Besides, any two Fence-Viewers have power to ap- 
 praise damages done by beasts, when applied to for that 
 purpose. 
 
 What are the duties of Pound-Masters— and their number 1 
 Of Fence-Viewers I 
 
APPENDIX. 293 
 
 Of Commissioners of Excise. 
 
 The Supervisor and Justices of the Peace, are Com- 
 missioners of Excise for their town, any three of whom 
 form the board. They have power to grant to keepers 
 of inns and taverns in their towns, licences to sell 
 strong and spirituous liquors and wines to be drank in 
 their respective houses ; and to license resident grocers 
 to sell such liquors and wines, in quantities less than 
 five gallons, but not to be drank on their premises. 
 The Commissioners determine the sums to be paid for 
 such licenses — but they cannot be less than five nor 
 more than thirty dollars ; and they expire in one year. 
 Persons not so licensed, are subject to penalties in case 
 they sell. 
 
 Of the Board of Auditors of Town Accounts., 
 
 The hoard is composed of the Supervisor and Town 
 Clerk, together with the Justices of the town, or any 
 two of the Justices. 
 
 The board examines the accounts of the Overseers 
 of the Poor, of the Commissioners of Common Schools, 
 and the Commissioners of Highways, &;c., of their re- 
 spective towns, for moneys received and disbursed by 
 them in virtue of their offices. 
 
 The accounts thus audited are delivered to the Town 
 Clerk, to be kept by him for inspection by any of the 
 
 Who are Commissioners of Excise 1 
 What are their powers and duties ? 
 Who compose the Board of Auditors of town accounts 1 
 
294 APPENDIX. • 
 
 inhabitants of the town. The accounts of the Super- 
 visor are examined and audited by the Justices ana 
 Town Clerk. 
 
 Of Commissioners of Deeds. 
 
 Their number, in each town, is determined by the 
 Judges of the county courts, and they are appointed by 
 the Judges and Board of Supervisors of each county. 
 
 They have power to take the proof and acknowledg- 
 ment of conveyances of real estate, and the discharge 
 of mortgages; to take acknowledgment of bail in ac- 
 tions in the Supreme Court, and in actions in the Court 
 of Common Pleas of the county for which they are ap- 
 pointed^ and to take acknowledgment of satisfaction 
 of judgments in the Supreme Court, and in the Court 
 of Common Pleas of the county for which they are ap- 
 pointed. After taking the acknowledgment of any 
 conveyance, the Commissioner endorses a certificate 
 thereof, signed by him on the conveyance. 
 
 By whom are the accounts of the Supervisor examined and audited 1 
 By whom are Commissioners of Deeds appointed ? 
 What are their powers and duties 1 
 
 -.Jfs,, 
 
THE SALARIES 
 
 OF NATIONAL, STATE, COUNTY, AND TOWN 
 OFFICERS. 
 
 I. NATIONAL OFFICERS. 
 
 President of the United States 
 Vice-President of the United States 
 
 5.000 
 
 Department of State. 
 
 Secretary of State 6,000 
 
 Chief Clerk . . . . . . , . 2,000 
 
 Commissioner of Patent Office .... 3,000 
 
 Treasury Department, ^^.^^ 
 
 Secretary of the Treasury 6,000 
 
 Chief Clerk 2,000 
 
 First Comptroller ....... 3,500 
 
 Chief Clerk ....... 1,700 
 
 Second Comptroller ...... 3,000 
 
 Chief Clerk 1,700 
 
 Third Comptroller . . . . . , 3,000 
 
 Chief Clerk . . . . . . . 1,700 
 
 Fourth Comptroller 3,000 
 
 Chief Clerk 1,700 
 
 Fifth Comptroller 3,000 
 
 Chief Clerk 1,700 
 
 Solicitor of the Treasury 3,500 
 
 Chief Clerk . 1,150 
 
 Treasurer 3,000 
 
 Chief Clerk 1,700 
 
296 
 
 APPENMX, 
 
 Register 
 Chief Clerk 
 
 $3,000 
 1,700 
 
 General Land-Office. 
 
 Commissioner 
 
 Solicitor .... 
 
 Principal Clerk of Public Lands 
 Principal Clerk of Private Claims 
 Principal Clerk of Surveys 
 Recorder .... 
 
 Secretary . . . ^ . 
 
 3,000 
 2,000 
 1,800 
 1,800 
 1,800 
 1,500 
 1,500 
 
 War Department. 
 
 Secretary of War , . . « . 
 
 Chief Clerk in the Secretary's Office 
 Clerk of the Requisition Bureau 
 Principal Clerk of the Bounty Land Office 
 Commissioner of Indian Affiiirs 
 
 Chief Clerk .,.-.. 
 
 Commissioner of the Pension Office 
 
 Chief Clerk ...... 
 
 Chief Clerk of the Engineer Department 
 Chief Clerk of the Topographical Bureau 
 Chief Clerk of the Ordnance Department 
 Chief Clerk of the Quartermaster's Department 
 Commissary-General of the Purchasing Department 
 
 Chief Clerk 
 
 Clerk of the Clothing Bureau . 
 Paymaster-General of the Pay Department 
 
 Chief Clerk ..... 
 
 Chief Clerk of the Subsistence Department 
 Surgeon-General of the Medical Department 
 
 Chief Clerk . . . . 
 
 6,000 
 2,000 
 1,600 
 1,400 
 3,000 
 1,600 
 2,500 
 1,600 
 1,150 
 
 800 
 1,150 
 1,150 
 3,000 
 1,700 
 
 700 
 2,500 
 1,700 
 1,350 
 2,500 
 1.150 
 
APPENDIX. 
 
 297 
 
 Navy Department, 
 
 Secretary of th* Navy 
 
 Chief Clerk 
 Three Naval Commissioners, each 
 
 A Secretary 
 
 A Chief Clerk . 
 
 ^ $6,000 
 2,000 
 3,500 
 2,000 
 1,600 
 
 General Post-Office Department. 
 
 Postmaster-General 
 
 6,000 
 
 Auditor 
 
 3,000 
 
 Three Assistant Postmaster-Generals, each 
 
 . 2,500 
 
 Mint Department. 
 
 
 Director . . . . , . . 
 
 2,000 
 
 Treasurer ...... 
 
 1,200 
 
 Chief Coiner . . . . 
 
 . 1,500 
 
 Assayer ....... 
 
 1,500 
 
 Melter and Refiner 
 
 . 1,500 
 
 Assistant Assayer ...... 
 
 1,000 
 
 Engraver 
 
 . 1,200 
 
 Legislative Department. 
 
 Senators, Representatives, and Delegates to the national le- 
 gislature, receive eight dollars for every day's attendance, and 
 eight dollars for every twenty miles travel, by the most usual 
 road, from their place of residence to the seat of Congress, both 
 in going to and returning from the session. And if detained on 
 the journey by sickness, or if unable to attend after their arrival, 
 they are entitled to the same daily allowance. 
 
 The President of the Senate pro tempore, during the absence 
 of the Vice-President, and the Speaker of the House of Repre- 
 sentatives, receive, in addition to their compensation as mem. 
 
298 APPENDIX. 
 
 bers, eight dollars for every day's attendance on their respective 
 houses. 
 
 The fallowing are the salaries of the officers of the two 
 houses : — 
 
 •Secretary of the Senate . . • . . $3,000 
 
 Clerk of the House of Representatives * . 3,000 
 
 Principal Clerks ...*.. 1,800 *.. 
 
 Engrossing Clerks ...... 1,500 
 
 Librarian of the Library of Congress . . . - 1,500 - 
 
 Sergeant-at-Arms, and the Doorkeepers of the Senate and 
 
 House of Representatives, each . . . 1,500 
 
 Assistant Door-keepers 1,450 
 
 Chaplains, each 500 
 
 Judicial Department. 
 
 Chief-Justice 5,000 
 
 Eight Associate Justices, each .... 4,500 
 
 Attorney-General ...... 4,000 
 
 Reporter 1,000 
 
 Cl'erk and Marshal . . ' . fees of office. 
 
 IL SALARIES OF STATE OFFICERS, &-c., OF NEW- 
 YORK. 
 
 The pay of a Member of either house of the Legislature, is 
 three dollars per day. 
 
 Governor . - 4,000 
 
 Lieutenant-Governor, (pay double that of a Senator, and 
 six dollars per day during the session.) 
 
 Comptroller 2,500 
 
 First Deputy Comptroller , . '. . . . 1,500 
 
 Second Deputy^ Comptroller ..... 1 ,500 
 
 .^' 
 
APPENDIX. 
 
 299 
 
 rreasurer 
 Deputy Treasurer 
 Secretary of State 
 Deputy Secretary 
 Surveyor-General 
 Attorney-General 
 Governor's Private Secretary 
 Canal Commissioners, each 
 
 Judicial Department 
 
 Chief-Justice of the Supreme Court . . . 2,500 
 
 Two Associate Justices, each .... 2,500 
 
 Reporter , 500 
 
 Eight Judges of the Circuit Courts, each . . 1,600 
 
 Chancellor of the Court or Chancery . . . 2,500 
 
 Register and Assistant Register . ,' . , fees. 
 
 Reporter 500 
 
 The salaries of County and Town Officers, are their fees of 
 office. 
 
 ^1,500 
 1,300 
 1,750 
 1,500 
 
 800 
 1,000 
 
 600 
 2,000 
 
 m