ormer loan, to balance the increased price to which things had risen;
and as that new loan increased the quantity of paper in proportion
to the new quantity of interest, it carried the price of things still
higher than before. The next loan was again higher, to balance that
further increased price; and all this in the same manner, though not
in the same degree, that every new emission of continental money in
America, or of assignats in France, was greater than the preceding
emission, to make head against the advance of prices, till the combat
could be maintained no longer. Herein is founded the necessity of which
I have just spoken. That necessity proceeds with accelerating velocity,
and the ratio I have laid down is the measure of that acceleration; or,
to speak the technical language of the subject, it is the measure of the
increasing depreciation of funded paper money, which it is impossible to
prevent while the quantity of that money and of bank notes continues to
multiply. What else but this can account for the difference between one
war costing 21 millions, and another war costing 160 millions?

The difference cannot be accounted for on the score of extraordinary
efforts or extraordinary achievements. The war that cost twenty-one
millions was the war of the con-federates, historically called the grand
alliance, consisting of England, Austria, and Holland in the time of
William III. against Louis XIV. and in which the confederates were
victorious. The present is a war of a much greater confederacy--a
confederacy of England, Austria, Prussia, the German Empire, Spain,
Holland, Naples, and Sardinia, eight powers, against the French Republic
singly, and the Republic has beaten the whole confederacy.--But to
return to my subject.

It is said in England, that the value of paper keeps equal with the
value of gold and silver. But the case is not rightly stated; for the
fact is, that the paper has _pulled down_ the value of gold and silver
to a level with itself. Gold and silver will not purchase so much of any
purchasable article at this day as if no paper had appeared, nor so much
as it will in any country in Europe where there is no paper. How long
this hanging together of money and paper will continue, makes a new
case; because it daily exposes the system to sudden death, independent
of the natural death it would otherwise suffer.

I consider the funding system as being now advanced into the last twenty
years of its