n a hill, where stand the church and castle, and
partly on a plain near the lake, on the borders of which are handsome
public walks and further improvements are carrying on. The elegant
appearance of many of the private houses proves the wealth of their
owners.

Neufchatel is without fortifications, but is in general well built; it
is said to present a perspective, resembling, in miniature, the distant
view of Naples. The lake is not deep, but seldom freezes, although it is
thirty-one toises more elevated than that of Geneva.

The principalities of Neufchatel and Vallingen are about twelve leagues
long, by eight at the broadest part; the soil is far from fertile, but
the industry of the inhabitants renders it astonishingly productive.
Any person having a certificate of his general good conduct may settle
here, and enjoy every essential privilege of the native subjects. This
is perhaps the only country in Europe _exempt from taxes_; for the
payment of a few sous annually from every householder cannot be
considered as a tax. This circumstance lessens our astonishment at the
commercial activity which prevails in this little state, the population
of which exceeds 40,000. The villages of Chaux de Fond and Locle, with
their districts, contain about 600 inhabitants, and furnish annually
10,000 watches in gold and silver, besides clocks. There are also
numerous engravers and enamellers. The country is celebrated for its
wild beauty; and our excursion, which occupied a day, was pleasant.

The Protestant is the established religion of the state, with the
exception of the little town of Landeron, where the Roman Catholic
religion is maintained. It is recorded, that the inhabitants, having
assembled to deliberate, which of the two forms of worship should be
acknowledged, the numbers were equally divided. It being however
discovered, that a shepherd was absent, he was sent for, and having
given his vote, that the Roman Catholic religion should be continued, it
was decided accordingly.

The town of Neufchatel is much indebted to one of its citizens, David
Riri, who expended three or four millions of livres in works of public
utility. Another individual built the town-house, which is a handsome
edifice of the Corinthian order.

The little brook called the Serrieres, which does not run above the
length of two gun-shots before it falls into the lake, turns a great
number of mills of various kinds.

Having been much struck with th