ers were deemed essential to the preservation of the union. In many
of these states, the party last mentioned, constituted a decided
majority of the people; and in all of them, it was very powerful. The
emission of paper money, the delay of legal proceedings, and the
suspension of the collection of taxes, were the fruits of their rule
wherever they were completely predominant. Even where they failed to
carry their measures, their strength was such as to encourage the hope
of succeeding in a future attempt; and annual elections held forth to
them the prospect of speedily repairing the loss of a favourite
question. Throughout the union, the contest between these parties was
periodically revived; and the public mind was perpetually agitated
with hopes and fears on subjects which essentially affected the
fortunes of a considerable proportion of the society.

These contests were the more animated, because, in the state
governments generally, no principle had been introduced which could
resist the wild projects of the moment, give the people an opportunity
to reflect, and allow the good sense of the nation time for exertion.
This uncertainty with respect to measures of great importance to every
member of the community, this instability in principles which ought,
if possible, to be rendered immutable, produced a long train of ills;
and is seriously believed to have been among the operating causes of
those pecuniary embarrassments, which, at that time, were so general
as to influence the legislation of almost every state in the union.
Its direct consequence was the loss of confidence in the government,
and in individuals. This, so far as respected the government, was
peculiarly discernible in the value of state debts.

The war having been conducted by nations in many respects independent
of each other, the debts contracted in its prosecution were due, in
part from the United States, and in part from the individual states
who became immediately responsible to the creditors, retaining their
claim against the government of the union for any balances which might
appear to be due on a general settlement of accounts.

That the debt of the United States should have greatly depreciated
will excite no surprise, when it is recollected that the government of
the union possessed no funds, and, without the assent of jealous and
independent sovereigns, could acquire none, to pay the accruing
interest: but the depreciation of the debt due f