had sought foreign loans and failed.  How was the new Congress likely to succeed any better?  Only by creating confidence; making it certain that the interest of the loan would be paid, and paid in specie.  In other words, they were to raise a revenue to pay this interest.  This simple thing the old Congress had not thought of, or had neglected, or found impracticable.  And how should the required revenue be raised?  Direct taxation was odious and unreliable.  Hamilton would raise it by duties on imports.  But how was an impoverished country to raise money to pay the duties when there was no money?  How was the dead corpse to be revived?  He would develop the various industries of the nation, all in their infancy, by protecting them, so that the merchants and the manufacturers could compete with foreigners; so that foreign goods could be brought to our seaports in our own ships, and our own raw materials exchanged for articles we could not produce ourselves, and be subject to duties,—­chiefly on articles of luxury, which some were rich enough to pay for.  And he would offer inducements for foreigners to settle in the country, by the sale of public lands at a nominal sum,—­men who had a little money, and not absolute paupers; men who could part with their superfluities for either goods manufactured or imported, and especially for some things they must have, on which light duties would be imposed, like tea and coffee; and heavy duties for things which the rich would have, like broadcloths, wines, brandies, silks, and carpets.  Thus a revenue could be raised more than sufficient to pay the interest on the debt.  He made this so clear by his luminous statements, going into all details, that confidence gradually was established both as to our ability and also our honesty; and money flowed in easily and plentifully from Europe, since foreigners felt certain that the interest on their loans would be paid.

Thus in all his demonstrations he appealed to common-sense, not theories.  He took into consideration the necessities of his own country, not the interests of other countries.  He would legislate for America, not universal humanity.  The one great national necessity was protection, and this he made as clear as the light of the sun.  “One of our errors,” said he, “is that of judging things by abstract calculations, which though geometrically true, are practically false.”  It was clear that the Government must have a revenue, and that revenue could only be raised by direct or indirect taxation; and he preferred, under the circumstances of the country, indirect taxes, which the people did not feel, and were not compelled to pay unless they liked; for the poor were not compelled to buy foreign imports, but if they bought them they must pay a tax to government.  And he based his calculations that people could afford to purchase foreign articles, of necessity and luxury, on the enormous resources of the country,—­then undeveloped, indeed, but which would be developed by increasing settlements, increasing industries, and increasing exports; and his predictions were soon fulfilled.  In a few years the debt disappeared altogether, or was felt to be no burden.  The country grew rich as its industries were developed; and its industries were developed by protection.