ion, to wit, at thirty-five millions. One fifth of this, at
the least, Smith thinks should be retained in specie, which would leave
twenty-eight millions of specie to be exported in exchange for other
commodities; and if fifteen millions of that should be returned in
productive goods, and not in articles of prodigality, that would be the
amount of capital which this operation would add to the existing mass.
But to what mass? Not that of the three hundred millions, which is only
its gross annual produce; but to that capital of which the three hundred
millions are but the annual produce. But this being gross, we may infer
from it the value of the capital by considering that the rent of lands
is generally fixed at one third of the gross produce, and is deemed its
nett profit, and twenty times that its fee simple value. The profits on
landed capital may, with accuracy enough for our purpose, be supposed
on a par with those of other capital. This would give us then for
the United States, a capital of two thousand millions, all in active
employment, and exclusive of unimproved lands lying in a great degree
dormant. Of this, fifteen millions would be the hundred and thirty-third
part. And it is for this petty addition to the capital of the nation,
this minimum of one dollar, added to one hundred and thirty-three and a
third, or three fourths per cent., that we are to give up our gold and
silver medium, its intrinsic solidity, its universal value, and its
saving powers in time of war, and to substitute for it paper, with all
its train of evils, moral, political, and physical, which I will not
pretend to enumerate.

There is another authority to which we may appeal for the proper
quantity of circulating medium for the United States. The old Congress,
when we were estimated at about two millions of people, on a long and
able discussion, June the 22nd, 1775, decided the sufficient quantity to
be two millions of dollars, which sum they then emitted.* According to
this, it should be eight millions, now that we are eight millions of
people. This differs little from Smith's minimum of ten millions, and
strengthens our respect for that estimate.

* Within five months after this they were compelled, by the
necessities of the war, to abandon the idea of emitting only
an adequate circulation, and to make those necessities the
sole measure of their emissions.

There is, indeed, a convenience in paper; its easy transmi