as its wants require, and the limits of the circulation will admit.  Those limits are understood to extend with us, at present, to two hundred millions of dollars, a greater sum than would be necessary for any war.  But this, the only resource which the government could command with certainty, the States have unfortunately fooled away, nay corruptly alienated to swindlers and shavers, under the cover of private banks.  Say, too, as an additional evil, that the disposable funds of individuals, to this great amount, have thus been withdrawn from improvement and useful enterprise, and employed in the useless, usurious, and demoralizing practices of bank directors and their accomplices.  In the war of 1755, our State availed itself of this fund by issuing a paper money, bottomed on a specific tax for its redemption, and, to insure its credit, bearing an interest of five per cent.  Within a very short time, not a bill of this emission was to be found in circulation.  It was locked up in the chests of executors, guardians, widows, farmers, &tc.  We then issued bills, bottomed on a redeeming tax, but bearing no interest.  These were readily received, and never depreciated a single farthing.  In the revolutionary war, the old Congress and the States issued bills without interest, and without tax.  They occupied the channels of circulation very freely, till those channels were overflowed by an excess beyond all the calls of circulation.  But although we have so improvidently suffered the field of circulating medium to be filched from us by private individuals, yet I think we may recover it in part, and even in the whole, if the States will co-operate with us.  If treasury bills are emitted on a tax appropriated for their redemption in fifteen years, and (to insure preference in the first moments of competition) bearing an interest of six per cent., there is no one who would not take them in preference to the bank-paper now afloat, on a principle of patriotism as well as interest:  and they would be withdrawn from circulation into private hoards to a considerable amount.  Their credit once established, others might be emitted, bottomed also on a tax, but not bearing interest:  and if ever their credit faltered, open public loans, on which these bills alone should be received as specie.  These, operating as a sinking fund, would reduce the quantity in circulation, so as to maintain that in an equilibrium with specie.  It is not easy to estimate the obstacles which, in the beginning, we should encounter in ousting the banks from their possession of the circulation:  but a steady and judicious alternation of emissions and loans, would reduce them in time.  But while this is going on, another measure should be pressed, to recover ultimately our right to the circulation.  The States should be applied to, to transfer the right of issuing circulating paper to Congress exclusively, in perpetuum, if possible, but during the war at least, with a saving of charter rights.  I believe that every State west and south of Connecticut river, except Delaware, would immediately do it; and the others would follow in time.